Article Text
Suspension of a National Bank. Newark, N. J., June 11.-The first naMonal bank closed to-day and applied for d receiver. The cashier has sailed for Europe.
12635. First National Bank (Newark, NJ)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
- 52
- Charter Number
- 52
- Start Date
- June 11, 1880
- Location
- Newark, New Jersey (40.736, -74.172)
Metadata
- Model
- gpt-5-mini
- Short Digest
814ea619e7c1c8c1
Response Measures
None
Receivership Details
- Depositor recovery rate
- 100.0%
- Date receivership started
- 1880-06-14
- Date receivership terminated
- 1885-02-18
- OCC cause of failure
- Excessive lending
- Share of assets assessed as good
- 77.7%
- Share of assets assessed as doubtful
- 11.9%
- Share of assets assessed as worthless
- 10.4%
Description
The First National Bank of Newark suspended on June 11, 1880 and a receiver was appointed; it did not reopen. Contemporary reports cite the immediate cause of suspension as the Third National Bank's refusal to honor its paper (correspondent issue), and subsequent investigation revealed large deficits and suspected dishonesty by the cashier (Hedden), producing permanent closure and receivership.
Events (6)
1.
August 7, 1863
Chartered
- Source
- historical_nic
2.
June 11, 1880
Suspension
- Cause
- Correspondent
- Cause Details
- Immediate trigger reported as Third National Bank (NY) refusing to honor the Newark bank's paper; contemporaneous rumors of irregularities and false statements by cashier Hedden also reported.
- Newspaper Excerpt
- The First National bank of Newark has suspended. ... The First National Bank of Newark was forced to close its doors yesterday. The immediate cause of suspension was the refusal of the Third National Bank of this city to honor its paper on Thursday.
- Source
- newspapers
3.
June 12, 1880
Other
- Newspaper Excerpt
- Rumors of irregularities are afloat. The managers are unable to give definite information till the government examiners report. The cashier sailed for Europe last week on a leave of absence.
- Source
- newspapers
4.
June 14, 1880
Receivership
- Source
- historical_nic
5.
June 16, 1880
Receivership
- Newspaper Excerpt
- The Comptroller of the Currency has appointed Senator Garret A. Hobart, of Passaic county, as receiver. ... the directors have applied for the appointment of a receiver.
- Source
- newspapers
6.
July 14, 1880
Other
- Newspaper Excerpt
- The report of Receiver G. A. Hobart ... assets a little less than $400,000 and the liabilities about $600,000. ... the books are confused ... the stock books had been carelessly kept. They appear to have been under the sole charge of Cashier Hedden.
- Source
- newspapers
Newspaper Articles (22)
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Review at West Point. WEST POINT, June 11. The annual review of the cadets was attended this morning by the Secretary of War, Gen. Sherman, and others. Diplomas will be awarded this afternoon. Cadets Wilcox, Tate and Burnett were vociferously cheered by the corps as they advanced to take their diplomas. Upon these cadets Whittaker had cast suspicion. NEW JERSEY. Suspension. NEW YORK, June 11. The First National bank of Newark has suspended. The last statement claimed $62,000 surplus, which it is thought was falsely stated. Financial circles are excited. Rumors of irregularities are afloat. The managers are unable to give definite information till the government examiners report. The cashier sailed for Europe last week on a leave of absence. Fatal Carelessness. PATERSON. June 11. Daniel Rynesmith's dwellings, comprising post office, store and dwelling, were blown up yesterday by powder, through the carelessness of Rynesmith's son, who was fatally injured. Horrible Death. JERSEY CITY, June 11. Moses Spratt, a colored dog fancier, while intoxicated, was fatally mangled by his own blood hounds.
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SERIOUS LOSSES IN NEWARK. THE FIRST NATIONAL BANK FAILS. LIABILITIES OVER TWO HUNDRED THOUSAND DOLLARS-THE DIRECTORS ASTONISHED AT THEIR CONDITION-CAUSES OF THE FAILURE DECLARED TO BE UNKNOWN. The First National Bank of Newark was forced to close its doors yesterday. The immediate cause of suspension was the refusal of the Third National Bank of this city to honor its paper on Thursday. The impairment of the capital is thought to be over $200,000; the cash capital was $300,000. There are painful rumors of dishonesty on the part of at least one person connected with the bank.
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Crime. Brantford, 11. - Fish Carrier was hanged at noon to-day, for wife murder. He asserted his innocence. Newark, N. J., 11. - The First National Bank has closed, and a receiver been applid for. There are rumors of irregularities. The cashier sailed to Europe last week.
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Collapse of a National Bank. NEWARK. N.J., June 11.-The First National Bank closed to-day, and the directors have applied for the appointment of a receiver. The capital stock of $800,000 is believed to be wiped out.
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New-Dork Daily Cribune. FOUNDED BY HORACE GREELEY. SATURDAY, JUNE 12, 1880. THE NEWS THIS MORNING. FOREIGN. -Gladstone's new taxes cause discontent. General Campos has attacked the Spanish The Supplementary Conference Ministry. will decide in favor of the Greek claims. DOMESTIC.-The National Greenback Convention has nominated General Weaver, of Iowa, for President, and General Chambers, of Texas, for ViceA citizens association has been President formed at Leadville, Col., to protect miners destruction Great against the strikers. has been caused by 8 fire at the oil works at Severe storms are reported Titusville, Penn. The captain in Maryland and the Northwest. of the schooner Ella A. Merritt reports at Philadelphia that she was fired on by a Spanish war vessel. The examinations closed at West Point yesterday. CONGRESS.-In the Senate the Kellogg-Spofford In the House the resolutions were considered. Marshals bill was debated and passed. CITY AND Suburban.-The First National Bank of Newark suspended yesterday, with liabilities of General Arthur returned from over $200,000. John Kelly declared that Tammany Chicago. The Newwould not support Tilden. York Yacht Club had an interesting reThe army worm 18 committing gatta. serious depredations on Long Island and elsewhere. Edward Cowley was refused The order of arrest in a new trial yesterday. the Boncicault case was affirmed. Many passengers will sail for Europe to-day. Gold value of the legal-tender silver dollar (41212 grains). 88.85 cents. Stocks less active, but after being higber, were lower, and closed weak and unsettled. THE WEATHER.-TRIBUNE local observations indicate warmer and clear or partly cloudy weather, Thermometer yesterday: Highest, 80°; lowest,60°; average, 69°.
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NEW YORK, June 16.-The examination thus far made of the condition of the suspended bank in Newark has disclosed the fact that it is insolvent, and the Comptroller of the Currency has appointed Senator Garret A. Hobart, of Passaic county, as receiver. Senator Hobart is a shrewd business-man and lawyer, and under his management as receiver the New Jersey Midland railroad has been restored from a bankrupt position to a sound business footing. Mr. Lynus M. Price, formerly cashier of the Merchants National Bank of Newark, but more recently a Government bank-examiner, Das been assigned to assist Examiner Magroder. When the announcement was made on Monday in Newark of Cashier Hedden's arrival in Liverpool, one of the directors of the bank said that Hedden by that time bad known of the bank's failure, for a dispatch has been sent to inform bim. No steps had been taken for his arrest, nor can there be any until an indictment Is found; but United States District Attorney Keasbey returned from Washington on Monday night, and was in Trenton in attendance upon the United States grand jury yesterday when they were sworn. It is_said unofficially that the bank's deficiency will be not less than $400,000. A business-man had a number of small bills seattered through the streets of Newark yesterday, which contained the following : Blind men wanted to fill the position of directors for a new national bank, to be started in a central location on or near the corner of Broad and Market streets. Also, as cashier, a man who has a dread of seasickness sufficient to keep him on this side of the pond when an emergency requires his presence at home. It will be requisite that the blind men be able to sign their names to the cashier's statement of the bank's condition. If this were not requisite, the stockholders of the proposed bank would prefer a board of directors carved out of wood, to which could be attached cards bearing the names of our most prominent citizens." It is rumored in Newark that the Western Union Telegraph Company are in negotianon for the purchase of the First National Bank's elegant $150,000 building of white marble, at Broad and Market streets, which proved to be the bank's white elephant. THE BRATTLEBORO' (VT.) FORGERIES. BRATTLEBORO', VT., June 16.-Enough is now known concerning the insolvency of the First National Bank of Brattleboro' to warrant the statement that the loss will reach upward of $250,000 through the forgeries of the president, S. M. Waite, who has undoubtedly left the country, and, as the directors believe, taken a large sum of money with bim; how much can only be determined by a long, searching investigation, which will be begun on the arrival of Bank-Examiner Hendee, who will act as receiver for the present. The forgeries include paper of the Connecticut River railroad for about $50,000; Frederick Billings, $20,000; Trenor W. Park, $20,000; Lyon & Healy, of Cbicago, $20,000; the Taunton Locomotive-Works, about $12,000; C. J. Amidon, Hinsdale, $15,000; Vermilye & Co., New York, some $75,000, and others. How much of this paper has been used by Waite as collateral upon which be may have raised large amounts for individual use the directors are unable to say, but rumors that Springfield and Boston banks have been victimized in this way are current. It is believed Waite's irregularities date back for more than ten years. Certificates of stock have been issued for which as yet there has been no record found, and a double issue will undoubtedly be unearthed. The books of the institution are badly garbled. Several stockholders are known to have lost their all by this collapse, and the feeling against the directors is very strong. It is believed that some of the directors are also financially ruined, and that another county bank suffers by the loss. Suits have been brought against some of the directors for dereliction of dutv.
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Newark's Suspended Bank. The suspension of the First National Bank of Newark, (which we announced last, week), proves to be a serious matter and involves a greater loss than at first supposed. One week ago to day a card was posted on the closed doors simply announcing "This Bank will not be open to-day." The notice was signed by Jabez Cook, President. Crowds gathered about the corner and discussed the matter, and much speculation was indulged in as to the cause of the suspension, with uupleasant comments as to the management. The bank was started during the war, and did a fine business, made money and paid handsome dividends to its stockholders. For a long time it occupied humble quarters on the northeast corner of Broad and Market streets, but the Dis rectors concluded to build a finer edifice, and when the institution had $100,000 surplus, erected the present handsome building at a cost of over $150,000. This outlay crippled them, and after a few years it was decided to reduce the capi tal from $500,000 to $300,000. Of the reduction $100,000 was returned to the stockholders, and it was understood that of the other $100,000, the sum of $50,000 was to be applied to the payment of bad debts and the balance to reducing the real estate account, which was based upon the high valuations of the flush times. This was not done, and suspicion arose in the minds of some financial men as to the management. A change had been made in the Presidency by the retirement of Mr. Dickerson, and several of the Directors had withdrawn ; but as the Board still included a number of leading capitalists the suspicion was allayed. Cashier Hedden started for Europe two weeks ago, and no one had been appointed in his place. Chief Clerk, W. A. Thoma was, however, acting, but being called upon for an explanation, would give none. From all accounts it appears the institution has been gradually drifting from its former financial moorings to its inevs itable wreck: For some time past it has been "short," and has obtained money from the other institutions to meet its New York claims. A check would be drawn on a sister bank, the funds obs tained in bills and sent to New York, and then when the check became due it would be met by a similar loan or the deposits. Everything available was used up, and it is understood that a city deposit of $50,000 went the same way. It is not probable that the bank will ever open again for business, but will be at once closed by the Receiver and the Government. The directors seem to have been to, tally unfamiliar with the rotton condition of the concern, and left everything to the management of the Cashier, who made out and swore to false statements, thus deluding theGovernment Examiner as well as the Board. This seems to have been kept up for two or three years past. Rumors are rife concerning Cashs ier Hedden's style of living, and the opinion seems to prevail that he has filched the bank out of considerable money in order to keep up his expens sive establishments. LATER, It is unofficially stated that the deficit will amount to $300,000, the original capital. Garrett A. Hobart, of Passaic county,
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THE SUSPENDED NEWARK BANK. The report of Receiver G. A. Hobart to the Controller of the Currency relative to the condition of the First National Bank of Newark, was finished yesterday. The report shows that the assets amount to a little less than $400,000 and the liabilities to about $600,000. The shareholders will be required to pay the full amount required by law, and the deficiency will be considerable besides, as some of the stockholders will not be able to pay their share, and at least 125 shares are held by the bank itself. The receiver's report is of great length. It was sent to Washington yesterday afternoon. The report divides the assets into three classes-good. doubtful and worthless. The receiver states that the report is not full or accurate because the books are confused, and the property of the bank, especially real estate, was neither in the name nor custody of the bank, but has been held by individual directors and others, and has not yet been transferred to the receiver. The schedule of the assets considered good is given in detail. The liability to the Third National Bank of New-York is $173,829 33, for which the Third National holds for collateral the direct liability of the bank and certain notes worth $73,009 53. The assets considered good amount to $373,281 34. 1 be doubtful assets are estimated at $56,328 79, and the worthless assets at $3,577 40. The total liabilities are $618,395 51. The receiver reports that the stock books had been carelessly kept. They appear to have been under the sole charge of Cashier Hedden. The complete list of sto "kbolders will be given to-morrow. Two certificates of stock of Dr. Benjamin C. Dutcher were discovered. Dr. Dutcher told the receiver that he owned only one of them. Among the stockholders mentioned is John McGuger. The largest stockholder is Aaron A. Coe, who owns 300 shares.
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NEWARK NOTES. Assessment on Bank Stockholders. NEWARK, N.J., July 19.-The controller of the currency has ordered an assessment of one hunared per cent on the stockholders of the suspended First National Bank to make good the deficiency, one-half payable in thirty days, the other half in sixty days, If not paid suit to be brought. An early dividend is expected. A New Trial. Judge Depue to-day decided to give Lammens, convicted of the murder of Meierhoffer, a new trial.
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Stockholders Assessed for the Dificiency. NEWARK, N. J., July 19.-The - comptroller of the currency has ordered an assessment of one hundred per cent. on the stockholders of the suspended First National bank, to make good the deficiency, one-half payable in thirty days, the other half in sixty days. If not paid, suit will be brought
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Briaging Them to Time, NEWARK, N. J., July 19.-The Comptroller of Currency has ordered an assessment of one hundred per cent on the stockholders of the suspended First National Bank to make good the deficiency, one-half payable In thirty days the other in sixtv days. If not paid suit will be I brought,
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The report of the receiver of the First National Bank of Newark, N. J., shows that the assets amount to a little less than $400,000, and the liabilities to $600,000.
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life-Hatchet. Cadet Whittaker's case is still before the war department. Amula is the popular toilet-wash for tan and freckles. Tar soap is the French specific for incipient wrinkles. Ashy blonde is the new shade of fashionably-dyed hair. Spotted and small-figured fabrics grow in popular favor. his on Prince Leopold, England, homeward voyage Nearly all skirts are "ras de terre," except for evening wear. If batayeuses are worn they must be irreproachably fresh. Zones pointed back and front are again worn with dressy toilets. Roman and Greek dresses are worn at costume-parties in England. Little bridesmaids at church-weddings wear the chapeau Cupidon. White cheese-cloth makes a beautiful inexpensive Greek costume. The government blue-book contains the names of 97,500 public officials. Sarah Bernhardt will bring to this country new dresses costing $65,000. Chastine Cox the negro murderer of Mrs. Dr. Hull, was hanged July 16th. Cascades of lace down the front of the corsage appear on many dressy suits. Senator Conkling will soon visit Representative Levi P. Morton at Newport, R.I. Lace covers to fine carriage-sunshades remain in vogue season after season. Black wood furniture and brass ornaments are all the rage on the other side. The official census returns of Detroit show the population to be 116.027. The wrecked steamer Narragansett has been successfully raised and towed to Noank, Conn. -Ole Bull with Miss Thursby, will be Mr. Strakosh's principal artists next season. General Grant will visit Boston some time in September as the guest of the Middlesex Club. George Alfred Townsend, familiarly known as "Gath," will sail for Europe next week. The cattle bells in the Harz Mountains are made so as to harmonize with one another. The receiver of the First National Bank of Newark, N. J., reports a deficiency of $200,000. The Missouri greenbackers have nominated a full state ticket, with Lyman A. Rrown, for governor. Everything that the public owns is just the thing that it is kept as far as possible from enjoying. General Popesays there is no invasion of the Indian Territory, reports to the contrary notwithstanding. Prince Leopold has canceled all his Newport engagements owing to an injury received while salmon fishing. Secretary Sherman recently visited New Bedford, Newport, and other ports on the New England coast. "No, I don't care for shad to-day said an art patron, musingly. "Suppose you give me a bass-relief. Lord Granville, the leader of the House of Peers, is 65 years old and has second son only a fortnight old. Professor John F. Newirk, of the State University, Indiana, is enjoying summer vacation in the Catskills. It is rumored that Lorne will resign the Governor Generalship of Canada. Mrs. Lorne is too fond of England. The Duke of Beaufort, who has been fishing in Canada, has suddenly been recalled to England on family matters. General Joseph R. Hawley has been elected captain of the American rifleteam which is to shoot at Wimbledon. The only persons who look really fit to live nowadays are the girls who wear white muslin and white or pale ribbons Lace fraises and jabots are extremely popular for dressing the neck, and are almost to the exclusion of collars. Mud baths are said to cure rheumatism. Most of the political candidates will be cured before the year is over. John Bright says that for every heathen converted in Africa there is opportunity to convert five in England. Bergh is now going for the eats of New York. He wants permission to pick them up tenderly, and kill them quickly. Mr. Bierstadt is. going to build and occupy a house on Canonient Island, near that famous old fort, the "Dumplings." Herschel V. Johnson, of Georgia, who was a candidate for vice president in 1860 on the Douglas ticket, is very ill at his home in Georgia. William J. Carlin, an unassuming young man, of Philadelphia, has fallen heir to a fortune of $4,000,000 left by an uncle in Australia. It is thought that Chili and Peru will accept the offer of the United States Government as mediator, with a view to a settlement of controversy. Nearly all the members of the Cabinet will take part in the coming political campaign. Secretary Schurz will address meetings in Indiana. Mr. Corcoran, of Washington, and Peter Cooper, of New York, both of whom have been very ill of late, are believed to have fully recovered. Charles Barlow, of R. G. Dun & Co.'s commercial agency, New York, died suddenly at his residence in Long Branch on the 24th inst. Dr. Charles Elam says that one pair of herrings would in a few years stock the Atlantic Ocean so that there would not be room to move. Mr. Froude, Mr. Freeman and Frederic Harrison all wrote letters against the erection of the Prince Imperial memorial in Westminster Abbey. "Now tell me candidly, are you guilty " asked a lawyer of his client. "Why, do you suppose I'd be fool enough to hire you if was innocent
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FOUR hundred thousand dollars is the reperted loss of the suspended First National Bank of Newark, and still the directors profess not to know where the money is.
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REPORT OF A BANK RECEIVER. STATEMENT OF THE ASSETS AND LIABILITIES OF THE BROKEN NEWARK BANK-GOOD PROSPECT FOR DEPOSITORS. Receiver Hobart, of the First National Bank of Newark, has forwarded a second report to the Controller of the Currency at Washington, showing the amount of the bank's liabitities and recommending the declaration of a dividend to the creditors. The dividend will soon be declared, and will in all probability amount to 50 per cent. The amount due depositors is $415,222 62, and the sum due to other banks and all other creditors is $136,954 25. The totalindebtedness is $552,17687. The amount of liabilities as reported on the first accounting of the receiver was $618,000. The difference is caused by allowing the creditors to set off the amounts due them against the amounts due the bank from them, and also by rejecting certain claims. The statement of the liabilities of the bank shows that 593 claims have been allowed. amounting to $552,176 87; that claims amounting to $34,959 27 have been rejected, and that there now remain upon the books of the bank claims amounting to $10.000, which will probably never be heard from. The assets yet to be turned into money are the sum of more than $100,000 now due from stockholders, the bank building, which will be sold on October 27, and which is valued at $100,000, and certain other claims, one of which is for $80,000 against the Third National Bank of New-York. There are also claims against Cashier Hedden and other officials, and something will doubtless be realized from these claims. The probability is that depositors will be paid in full, and that the stockholders may not lose all of the assessment paid by them. As soon as the dividend is paid the receiver will prepare evidence for the claims against the estates of the former officers.
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Receiver Hobart, of the wrecked First National Bank of Newark, is busy with his clerks paying the 70 per cent. dividenu to stockholders. On Friday, 240 creditors were paid, and a large number on Saturday.
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# TRIAL OF A BANK TELLER. TRENTON, N. J., Feb. 8.-The trial of William A. Thomas, teller of the suspended First National Bank of Newark, charged wita falsifying the books, began in the United States Court here to-day. District-Attorney Keasbey in opening the case said that Thomas was charged with falsifying the books so that the assets were aparently increased $50,000 by notes due from two directors-J. J. Dickerson and John McGregor. W. H. Donaldson, discount clerk of the bank, test fled that Thomas altered the figures in the ledger so as to deceive the examiner. W. A. Lewis, expert accountant, testified that he discovered the falsifications, and that Thomas told him that Dickerson and McGregor knew of the use of their names. Jabez Cook, president of the bank, testified that he knew nothing of the bank or of its financial business, trusting everything to Cashier Hedden and Teller Thomas. The trial will probably last several days.
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HEAVY SUIT AGAINST A RECEIVER. Mrs. Mary A. Dovell, mother of Lewis Dovell, receiving teller of the broken First National Bank of Newark, N. J., has brought suit in chancery against the receiver of the bank, and in her affidavit alleges that the apparent deficiency of $90,000 was not due to her son, but to the cashier, Hedden, and the paying teller, who direc ed her son to hold as cash certain memoranda delivered by them to him. An affidavit by the son declares that these memoranda representen money taken by the cashier and teller. When the defloiency was discovered Mrs. Dovell assigned all her property 10 make it good.
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THE BROKEN BANK. The Examiner's Report Not to be Made Public-What the Directors Think - Excitement Subsiding Comptroller Knox on the Duty of Examiners. NEWARK, November 2.-Government Examiner Shelley is still at work in the Mechanics' Bank, and does not expect to finish his report to the Comptroller of the Currency until Thursday night or Friday. The report will not be made public, and will be sent to Washington as soon as finished. The directors believe that Baldwin's accusation, that Nugent has received the money which 18 missing. Several directors expressed their belief that the depositors would lose 25 per cent., and perhaps more. There has been no manifestations of trouble in the business community resulting from the failure, and the excitement here has abated. WASHINGTON, November -The Comptroller of the Currency has appointed Frederick Frelingbuyeen receiver of the Mechanics' National Bank of Newark, N. .J., and Lineus M. Price assistant receiver. The Comptroller says that the report of Bank Examiner Shelly, of August 16, 1880, contained the following paragraph: "I verified the account with the Mechanics' Bank of Newark, by obtaining its own balance and reconciling." Comptroller Knox says further that if the examiner had not been deceived by a forged letter of Baldwin's, which was handed to the examiner in place of the genuine letter of the cashier of a bank in New York, the enormous losses of the bank would have been exposed fourteen months ago at the date of the examination. He also says that the bank examiners have always been instructed to verify the accounts of correspondents, and that immediately after the failure of the First National Bank, of Newark, N. J., in June, 1880, the following special letter of instructions was sent to every examiner: TREASURY DEPARTMENT, OFFICE COMPTROLLER OF CURRENCY, WASHINGTON, July 31, 1880. SIR-I desire to call your attention to the importance of proving the correctness of the accounts of the banks you examine with their corresponding banks, and to this end you are instructed to call for and examine critically and, as far as possible, reconcile accounts current in all cases, or if it be found impossible to reconcile the accounts, as it, probably, often will be, you will satisfy yourself that the balances claimed, both debit and credit, are substantially correct, the means of doing which must be left to your own judgment. When the balances claimed are exceptionally large, or if you see any reason to .doubt that they are correct, you will rectify them by corresponding with the debtor or creditor of the banks as the case may require. Very respectfully, JOHN J. Knox, Comptroller.
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THE NEWARK DEFALCATION. The Government Examiner Still at Work. NEW YORK, Nov. 2. Government Examiner Shellery is still at work on the Mechanics' Bank, and does not expect to furnish his report to the Comptroller of the Currency, until Thursday night or Friday. No report. will be made for the public, but. will be sent to Washington as soon as finished. Upon the receipt of this statement the Comptroller will appoint a receiver. The directors believe that Baldwin's accusation that Nugent received the monev is missing. Several directors express their belief that the depositors would lose twenty-five per cent. and perhaps more. There has been no development as to the trouble in the business community from the failure, and the excitement has abated. No further arrests will be made at present. The Comptroller of the Currency appoints Frederick Frelinghuysen receiver of the Mechanics' National Bank of Newark, and Linus M. Price assistant receiver. The Comptroller says the report of Bank Examiner Shellev of Aug. 16th, '80, contains the following paragraph : "I verified accounts with the Mechanics' National Bank of New York, by obtaining its own balance and reconciling." Comptroller Knox says further that if the Examiner had not been deceived bv a forged letter of Baldwin, which was handed to the Examiner in place of the genuine letter of the cash ier of the bank who was in New York, the enormous losses of the bank would have been exposed fourteen months ago. Also says the Bank Examiner has always been instructed to verify the accounts of correspondents, and that immediately after the failure of the First National Bank of Newark, in June, '80, a special letter of instructions was sent to every examiner, calling attention to the importance of proving the correctness of the accounts of the bank examined.
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THE NEWARK ROBBER Y. A Receiver Appointed for the Broken Bank. NEWARK, Nov. 2.-Government Examiner Shelley is still at work on the Mechanics Bank and does not expect to finish the report to the Comptroller of the Currency until Thursday night. It is not to be made public, but will be sent to Washington as soon as finished. Upou this statement the Comptroller will appoint a receiver. The directors believe Baldwin's accusation that Nugent received the money missing. Several detectives express the belief that depositors would lose twenty-five per cent and perhaps more. There have been no developments as to the trouble in the business cummunity from the failure, and the excitement has abated. No further arrests will be made for the present. Dennis Osborn, wholesale grocer and liquor dealer, is embarrassed by the Mechanics Bank failure. WASHINGTON, Nov. -The Comptroller of the Currency has appointed Frederick Frelinghuysen receiver of the Mechanics Bank of Newark and Linus M. Price assistant receiver. The Comptroller says the report of Bank Examiner Shelley of Aug. 16,1880, contains the following paragraph:-"I verified the account with the Mechanics National Bank of New York by obtaining its own balance and reconciling." Comptroller Knox says further that if the examiner had not been deceived by the forged letter of Baldwin, which was handed to the examiner in place of the genuine letter of the cashier of the bank in New York, the enormous losses of the bank would have been exposed fourteen months ago. He also says always been instructand that immediately after the failure of the First National Bank of Newark in June, 1880, a special letter of instructions was sent to every examiner calling attention to the importance of proving the correctness of accounts of the banks examined.