14169. First National Bank (Newark, NJ)

View Charter #52 on SPMC

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
4078b016

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

Articles (mostly June 1880) report the First National Bank of Newark suspending June 11, 1880 after Third National refused to honor drafts; investigation revealed large impairment and alleged embezzlement/irregularities. A receiver was appointed June 15, 1880 and the bank remained in receivership with subsequent indictments/trials in 1881. (Two later brief 1931 items mention a run closing a bank of the same name decades later; primary episode here is the 1880 suspension and receivership.)

Events (5)
1. August 7, 1863 Chartered
Source
historical_nic
2. June 11, 1880 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Third National Bank returned drafts (honor refused) which triggered investigation revealing capital impaired ~ $200k+ and rumors/ evidence of irregularities and alleged embezzlement by cashier James A. Hedden.
Newspaper Excerpt
The First National Bank suspended to-day, with liabilities over $200,000...The bank did not open to-day and there was much excitement in town over the suspension.
Source
newspapers
3. June 14, 1880 Receivership
Source
historical_nic
4. June 15, 1880 Receivership
Newspaper Excerpt
Receiver Appointed. NEWARK, N. J., June 15. Senator Hobart... has been appointed receiver of the First National Bank of this city.
Source
newspapers
5. February 9, 1881 Other
Newspaper Excerpt
TRIAL OF A BANK TELLER. ...The trial of William A. Thomas, teller of the suspended First National Bank of Newark, charged with falsifying the books, began in the United States Court here to-day.
Source
newspapers

Newspaper Articles (24)
1. June 11, 1880 The Cincinnati Daily Star Cincinnati, OH
Article from The Cincinnati Daily Star, June 11, 1880

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A BROKEN BANK. Wine, Women and Fast Horses Captured the Cashier. First National, of Newark, With Liabilities of $200,000. National Associated Press to the Star. NEWARK, N. J., June 11.-The First National Bank suspended to-day, with liabilities over $200,000. Its drafts were returned yesterday by the Third National Bank of New York, to the amount of $40,000. This led to an investigation and the result. The capital of three hundred thousand dollars is impaired over two hundred and twenty thousand dollars. The cashier, James A. Hedden, left for Europe on Saturday on a leave of absence. He is said to have lived high, indulging in wine, women, fast horses, etc. The Directors say he and the acting cashier, M.S. Thomas, knew all about the condition of the bank. The April statement represented the bank in good condition. The Directors are all rich and the creditors are not likely to lose anything. The bank did not open to-day and there was much excitement in town over the suspension. Jabez Cook is President and Jas. A. Hedder Cashier. Directors-Jabez Cook, C. N. Lockwood, W. H. Murphy, J. M. Brenen, J. J. Dickerson, John McGregor, Walter Geacen, Geo. B. Jenkins n. The Bank organized in 1862 under act of Congress. It has the finest bank building in Newark, worth fully $100,000. NEWARK, N. J., June 11.-The failure of the First National Bank creates much excitement and consternation. It is reported that not over $50,000 will be saved out of a capital stock of $300,000, and that the directors were offered assistance from other banks last night, but they declined, being unable to put up colletral securities.

2. June 11, 1880 The Rock Island Argus Rock Island, IL
Article from The Rock Island Argus, June 11, 1880

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NEW JERSEY. NEWARK, June 11.-The First National Bank closed to day for a receiver. The cashier sailed for Europe last week on leave of absence, but will be recalled; rumors of irregularities prevail.

3. June 12, 1880 Daily Globe Saint Paul, MN
Article from Daily Globe, June 12, 1880

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Bank Burst. NEWARK, N. J., June 11.-The First National bank closed to-day and applied for a receiver. The cashier sailed for Europe last week on leave of absence, but will be recalled. Rumors of irregularities are afloat, but the managers await the government examiner's report.

4. June 12, 1880 New-York Tribune New York, NY
Article from New-York Tribune, June 12, 1880

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SOME CAUSES OF THE TROUBLE. ACTION OF THE THIRD NATIONAL BANK OF THIS CITY -THE NEWARK BANK'S LAST SWORN STATEMENT -ILLNESS AND ABSENCE OF THE CASHIER-WHAT THE OFFICERS SAY. The City of Newark was startled yesterday morning by the reported failure of the First National Bank, at Broad and Market-sts.; and about 9 o'clock the following notice was posted on one of the doors: " This bank will not be open for business to-day. Jabez Cook, President." The bank was organized June 26, 1863, and for several years did a time business, made money, and paid large dividends to the stockholders. It occupied humble quarters at the northeast corner of Broad and Market-sts. until 1870, when its present handsome building was erected, at a cost of $152,000. The reported surplus at that time was $100,000. In April, 1879, the capital stock was reduced 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 one-half was to be applied to the payment of debts, and the balance to reducing the real estate account, which was based upon the high valuations of pre. vious times. This was not done, and suspicion arose in tho,minds of financial men as to the management. Wednesday was settling day with the other banks, and drafts were given them on the Third National Bank of New-York. On Thursday the drafts amounting to about $10,000, were returned dis honored. Immediately a meeting of the First National Bank's directors was called, which was attended by Jabez Cook. president, James J. Dickerson, John McGregor, and Charles N. Lockwood. The other directors are Wm. H. Murphy, James M. Bruen, Walter Greacen, and George B. Jenkinson. These men were out of town. The directors informed William A. Thomas. who during the past month has been acting cashier in consequence of the IIIness of Cashier James A. Hedden, that they wanted the plain facts about the assets and liabilities of the bank. S The exhibit astounded them Their capital of $300,000, which they believed to be intact, was found to be impaired to the amount of about $225,000. Later in the evening representatives of the Mechanics' National Bank, Newark Banking Company, State, and Essex County banks, held a consultation with the officers of the First National. Help was offered to the First National if it could give satisfactory security, but Mr. Cook frankly stated that all the available assets had been pledged. the directors had nothing to ofter, and the bank was too far gone to be saved. It was then resolved to close the doors, and to telegraph at once to the Controller of the Currency at Washington. On June ith, the directors gave James A. Hedden, their cashier, leave of absence on account of his health, and the next :day he is said to have sailed for Europe. Six weeks ago he was taken (ill at his home in Bloomfield, and one morning he was found in bed unconscious, and black and bluejin the face. He (lay in that condition for somo hours. After that he attended to his bank duties, but had two or three more attacks of pain in the head, accompanied by unconsciousness. and once he gasped as ii he were dying. A month ago he retired, and since then the paying teiler. William A. Thomas, has attended to his duties. Mr. Hedden's absence at this time is greatly regretted by his friends, who believe that he could (explain away painful rumors that have been associated with his name since the failure. These friends deny that he lived (extravagrantly, and resent any imputations against his character for honesty and integrity. LAST STATEMENT OF THE BANK'S CONDITION. The following is the last report of the condition of the bank at the close of business April 23, 1880: RESOURCES.

5. June 12, 1880 New-York Tribune New York, NY
Article from New-York Tribune, June 12, 1880

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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.

6. June 12, 1880 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, June 12, 1880

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Suspenion of a National Bank. NEWARK, N. J., June 11.-The First National bank of this city has suspended. The last statement claimed $62,000 surplus, which it is though was falsely stated. Financial circle are excited and reports 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 leave of absence.

7. June 12, 1880 Lancaster Daily Intelligencer Lancaster, PA
Article from Lancaster Daily Intelligencer, June 12, 1880

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BY WIRE. News of the Afternoon in Brief. Henry Quarle, a negro barber, was hanged in jail yard at Houston, Texas, yesterday, for the murder of his wife. The tornado which wrecked Wheeler's Grove, Iowa, killed Jesse Ansler, wife and two children; William Pace, and two children and fatally injured another. Alex Ansler, wife and child were carried in the air nearly a hundred and fifty feet and seriously injured, the child fatally. A hired man, name unknown, employed by Ansler, was killed. Some six or eight other persons were carried away, and have not yet been found. In all, about twenty persons are reported dead or missing. Not a house on the track of the tornado was left standing. The Utica Observer says Seymour has not changed his mind on the presidency ; he will positively take no nomination even if tendered him. He deems it immoral for anyone to enter upon any public office when his health is unequal to the performance of its labors. He alone can judge of this and cannot yield his decision to the opinions of o thers. A party of tramps near Peru, Ind., who attempted to violate a young girl were pursued by the police. One of the gang was shot, and after a running fire four of the villains were captured. The establish No. South Eighth street, Philadelphia, occupied by E. C. Penfield & Co., truss manufacturers, and John E. Albert, musical instrument manfacturer, was burned this morning. Loss $13,000. Josie Beichler, of Altoona, aged 4, climbed a fence to pick cherries. fell, broke his neck; and died instantly. During a storm in Wisconsin on Thurs day, a roundhouse at Sparta was demolished, and two men were killed in other places. The bank examiner took possession of the First national bank of Newark, N.J., to-day, and assisted by the paying teller began an investigation of its affairs. No new developments. A terrific thunder storm passed over. Baltimore and the southern portion of Maryland early yesterday morning. More than two inches of rain fell, but the dam_ age in the city was slight. Near Cheltenham, Prince George's county, two farm

8. June 12, 1880 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, June 12, 1880

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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.

9. June 12, 1880 Evening Star Washington, DC
Article from Evening Star, June 12, 1880

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RYAN CHALLENGED.-Patrick Ryan, the winner of the Goss-Ryan prize fight, has been challenged by Peter F. McOwen, of Readfield, N. Y., to fight a rough-and-tumble contest for $250 or $500. McOwen is the captain of a canal boat, with a cargo for Buffalo. He is a large, well built man, thirty-five years old, and weighs over two hundred pounds. He has no record, but is anxious to make one. Along the line of the canal he is known as a "hard hitter." BANK CLOSED.-The First National Bank at Newark, N. J., closed yesterday, and the directors informed the bank department at Washington and appealed for the appointment of a receiver. The capital of $300,000 is believed to be wiped out, but the deposits and circulation are safe. The cashier, James A. Hedden, sailed for Europe last week on a leave of absence, and will be recalled by telegraph. Financial circles are excited, and rumors of irregularities are afloat.

10. June 13, 1880 New-York Tribune New York, NY
Article from New-York Tribune, June 13, 1880

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NEWARK'S BROKEN BANK. INVESTIGATION BY THE EXAMINER-THE ABSENT CASHIER-UNCERTAINTY AS TO THE CAUSE OF THE FAILURK The suspension of the First National Bank of Newark. on Friday, continue to be an exciting topic in that city. As very little light has been thrown upon the affair there is a great dea! of conjecture as to the probable cause of the failure. Yesterday morntag J. W. McGruder. who has been appointed by the Coutroller of the Cur, rency to make an examination of the condition and management of the bank, arrived from Washington and began his investigation. He was assisted during the day by W. A. Thomas, the paying teller and acting cashier, and by several of the clerks formerly employed in the bank. The president. Jabez Cook, was also present during a part of the day. Directors James J. Dickerson. John McGregor and William H. Murphy conferred with President Cook yesterday as to what course should be pursued. Mr. Murphy was in favor of taking some immediate action with reference to the absent cashier. The others. however, were inclined to think that it would be best to await further developments. As the direcors could take action only on their own responsibility. on the advice of counsel they resolved to take no immediate steps. Hedden is expected to arrive at Liverpool to-day at 10 a. m. Various statements are made regarding Hedden's character. One of the directors asserted that he did not believe that Hedden had lived extravagantly. A serious charge had been made against him several years ago. but an investigating committee had reported that there was no canse of action on the part of the bank. The cashier's friends assert that he was not addicted to gambling, as reported, and had engaged very little in stock speculations. They adnut, however, that he dealt extensively in real estate, and it is also stated that he bought notes on his own account. The people who saw that Heddeu was extravagant declare that he was great fancier of fine dogs and horses. Mr. Hedden gave bonds in the sum of $20,000 for the faithful performance of his duties; the bond 19 a joint one and has five names upon it. There is a lack of agreement between the opinions that have for some time been entertained of the condition of the bank by the directors and outside persons. A cashier of one of the leading banks of Newark said yesterday that the First National Bank had always been conducted irreg V. The cashiers and tellers had been permitted to carry on outside enterprises on their own account, which was not usual in bank affairs. For several months the impression had been abroad that the bank was weak. Frequently the different banks were called upon to furnish money in exchange for a draft on the Third National Bauk of this city. Several times when the clerks were asked what they were going to do with the money they replied that it was to be sent to Now-York-evidently a measure to preserve the credit of the bank. It is supposed also that a former receiving teller in the bank was an embezzler. He carried on an ink factory at the same time, keeping accounts in other banks. His connection with the bank terminated suddenly. When suit was brought against him afterward by one of the banks with which he had kept an account his property was found to be in the hands of the directors of the First National Bank. The paying teller and acting cashier, William A. Thomas, has studiously kept out of the way since the doors of the bank were clesed. All efforts to see him on Friday were unsucessful. Yesterday be was at the bank, but would not see any one. A TRIBUNE reporter interhome his on him way cepted last evening, but. in answer to estions concerning the condition of the bank. he replied that he would make no statement. He had purposely avoided questions on the subject because he wished to say nothing. The bank was now out of their hands. One of the directors said yesterday that he could not see how the teller could have been ignorant of the situation for some time previous to the suspension. Mr. Thomas is one of the partners in the firm of Bigelow & Thomas. manufacturers of chemicals. Last evening Mr. Magruder said the examination had not proceeded far enough to make any discoveries, the examination would probably last several days.

11. June 15, 1880 Evening Star Washington, DC
Article from Evening Star, June 15, 1880

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Receiver Appointed. NEWARK, N. J.. June 15. Senator Hobart. or Paterson. has been appointed receiver of the First National Bank of this city.

12. June 18, 1880 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, June 18, 1880

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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.

13. July 5, 1880 Wheeling Register Wheeling, WV
Article from Wheeling Register, July 5, 1880

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Trying to show he is Honest New YORK, July 3-James s. Hed. des, Cashier of the First National Bank, in Newark, New Jersey. now in the hands of a receiver, was arreated to day on board the steamship Germania, as the vessel was entering this harbor from Liverpool. Hedden says he knew when he left Newark the bank was a little weak, but everything seemed to be going on nicely, and he only went to Earope at the urgent request of his physician. When he received n telegram in Liverpool that the bank had closed he was thunderstruck and decided to return on the 17th, ten days after his arrival, but was taken sick just before leaving Liverpool. He saw in the American papers that he was charged with embezaling $225,000, and the accusation nearly drove him crazy, but he would show he was honest. By the National Bank Law he said no bank could hold securities unleas for debt previously contracted. and from the fact that we hadour building, which cost us over $152,000, we did not want any more securities, no that by the ad. vise of a few Directors real estate which really belonged to the bank was put iss his name, so that the Receiver upon looking over the books would naturally say: "This was Hedden has property of the bank in his possession. Hodden further said he had several thousand dollars' worth of real estate and personal property in his promision, which he would return to the Receiver, and try to show him be was honest.

14. July 19, 1880 Evening Star Washington, DC
Article from Evening Star, July 19, 1880

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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.

15. July 20, 1880 The Spirit of Democracy Woodsfield, OH
Article from The Spirit of Democracy, July 20, 1880

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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.

16. July 20, 1880 New-York Tribune New York, NY
Article from New-York Tribune, July 20, 1880

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tion. It has been accepted by the trustees and will be submitted to the congregation this evening. Mr. Summerbell has received a call to a Curistian Church in Fall River. Mass., which be is inclined to accept, as affording a wider field of influence. JERSEY CITY. The house of John Garrigan, No. 203 Newark-ave, was entered by burglars Sunday evening. while the family was at ehurch, and was robbed of jewelry valued at $125. NEWARK. Receiver Hobart. of the First National Bank of Newark, yesterday mailed notices to all the stockholders, assessing them 100 per cent on an amount equal to their stock, to make good the deficiency also notices to stockholders to prove their claims. It 18 understood that a dividend will shortly be paid. It is understood that the appraisers appointed to set a value upon the bank building have fixed it at $100,000. Patrolman Mallette, who was found lying unconscious beside the Central Railroad track, at the East Ferry Street Station, last Thursday night, and who is believed to have been struck by a freighttrain, has been restored to partial consciousness. His injuries are considered such as to preclude all hope of recovery. Yesterday he stated to one of his attendants that he had been attacked by four men and beaten with clubs and a slung shot. He gave the names of his alleged assailants, most of whom are known to the police. He talked incoherently. and the belief is that Mallette's statement is the result of a distempered imagination. NEW-JERSEY. GUTTENBURG McMahan, jr., died at his home in Guttenburg Sunday. Three years ago he was clubbed severely by Constable Dobbs, who was engaged in quelling a disturbance. McMahon was sentenced to two years' imprisonment in the State Prison, but while there became insane and was sent to the State Lunatic Asylum. He grew gradually worse. LONG ISLAND. New SUFFOLK.-From New Suffolk village there were shipped to New-York in four days of last week 9,500 bushels of clams. BELLPORT.-Sharks are unusually numerous in the Great South Bay. On Saturday Isaac Rogers, of Bellport, inclosed a school in his net, but he lost the greater part of it. LONG ISLAND CITY.-The Borden Avenue drawbridge, at Hunter's Point, cost Long Island City $22,300, the contractors accepting pay in improvement certificates to that amount, which are worth in the market $10,000, but which the city must redeem at 7 per cent interest. FLUSHING.-John Evans, proprietor of a liverystable in Philadelphia, recovered in Flushing yesterday a horse and wagon valued at $800, which were stolen from him nearly a year ago In the Ist District of the town of Flushing the census shows one person of the age of 101, one 94; seven 85, and fifteen over 80. In the IXth District there are three over 90, four over 85, and one over 106. RIVERHEAD.-The addition to be made to the Suffolk County jail, at Riverhead, is to be built of granite. There will be provision for confining young offenders and women apart from old and hardened criminals According to the census there was only one death during the year prior to June 1 east of Mt. Sinai Church, Suffolk County, to Wading River. a territory over twenty miles square, and that was of a non-resident child. In the three election districts, comprising the whole north side of the town of Brookhaven, containing a population of over 4,000, there were in the same time only thirty-four deaths. HUDSON RIVER TOWNS. IONA ISLAND.-A young man, about twenty-three years of age, whose name was not known, said to be a resident of Hudson-st., in this city, who visited lona Island on Sunday by the steamer Long Branch, was drowned while bathing yesterday morning. His body had not been recovered.

17. February 9, 1881 New-York Tribune New York, NY
Article from New-York Tribune, February 9, 1881

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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.

18. February 24, 1881 New-York Tribune New York, NY
Article from New-York Tribune, February 24, 1881

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BANK OFFICERS IN COURT. TRENTON, N. J., Feb. 23.-The cases of James A. Hedden and Wm. A. Thomas, cashier and teller of the suspended First National Bank of Newark. indicted for defalcation, conspiracy and falsification of the books of the institution, were called in the United States District Court to-day. Owing to the pre-sing engagements of Congressman Robeson, counsel for Hedden, and the illness of a child of Ex-Judge Hoffman, counsel for Thomas, the cases were postponed until March 15. District-Attorney Keasbey stated that the trials would probably not occupy more than a week.

19. April 13, 1881 The Daily Gazette Wilmington, DE
Article from The Daily Gazette, April 13, 1881

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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.

20. November 3, 1881 Savannah Morning News Savannah, GA
Article from Savannah Morning News, November 3, 1881

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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.

21. November 3, 1881 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 3, 1881

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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.

22. November 3, 1881 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, November 3, 1881

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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.

23. October 8, 1931 Evening Star Washington, DC
Article from Evening Star, October 8, 1931

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Run Closes Bank at Newark. NEWARK, N. J., October 8 (P).-The First National Bank of this city closed yesterday after a run of 2½ hours and was turned over to national bank examiners. Officials said the bank was closed to protect depositors after heavy withdrawals.

24. October 8, 1931 Evening star Washington, DC
Article from Evening star, October 8, 1931

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Run Closes Bank at Newark. NEWARK. N. J., October 8 First National Bank of this city closed after run of hours and turned over to national bank examiners. Officials said the bank was closed to protect depositors after heavy withdrawals