The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-04
BABBITT AND HIS CLERKS.
BECK WITH & co.'s ,BIG STEALING
AND nov 1T was DONE.
What will Astonish Business Men-Binnk
Checks TO sign at Pleasure-Figure res
RAISED and the Accounts Boldly FsIs,Hed.

What will Astonish Business Men-Blank
Checks TO sign at Pieasure-Fi0ure
Raised and the Accounts Boldly FsIsi1ed.
Charles r. Bcckwith. who managed to
cheat II. #. Babbitt out OF not less than $25O0O0,
and possibly s700 900, was arraigned In the Tombs
Police Court yesterday. Ex-Judge Fullerton
app ared for the prisoner, who demanded speedy
examination. Justice Bxby set down the OK
animation for tomorrow, meanwhile commit
ting Beckwlth without bail. The temptation Of
unlimited opportunity afforded Mr. Babbitts
employees Is scarcely less remarkable than the
means and details Of the vast embezzlement.
The history Of the growth OF MIR. Dabbitts bust
ness has been marked by several betrayals Of
confidence. The head Of the house apparently
Il not the thorough going man Of business that
his wonderful success In accumulatnR money
would Indicate. lie commenced soap-bolllnR
many years ago. and "a ne says, with no other
business theories than cash sales OF good goods
at small profits. His trade organized Itself and
weathered panlcs, trade depressions, and the
dishonesty OF confidential clerks.
After MIR. Babbit had rcaped large fortune
from his soaps, he was seized with the fever OF
Invention, and for years past has spent moro
time In perfecting his model canal boat than in
commerce. To this end lie built extensive ma
chine shops near Utica a few years ago, and. be-
sides their costing him n third OF n million dol
lars. lie Is indebted to them for his Introduction
20 Heckwith. who - aIatiye OF ticl. II was
In Que II the Intervals in which Mr.. Blbhitt was
| trying tn repair the damage done hi soap bust
ness by the default Of his last cont dental clerk
that Beckwith's fitness Tor the place was
pressed upon his attention. and. although he
| had determined never rgain to trust clerk, be
| employed Beckwith. This was carly IN 1873. The
new clerk proved to he AL that he was said to be
| IN his bookkeeping and faculty Of mauaginr ex-
tensivc business operations. Wuhn few
weeks Of his engagement. Mr. Bahhitt had so
| far recovered his trust ~ human nature that
! Beckwlth vgs entrusted wl'h ~ Qst ppchecbcd
| The proprietor had eNaciing notions NJ the
amount Of work to be done hv his employees,
but Beckwith soon persuaded MN that book,
Keeper and cashier W 3 needed to rank ~ third
In command. Mr.. Blbbit's old friend TOmlin-
son of Memphis introduced the needed man In
the person uf Thomas Lewis n yuurg Enrlishman
| Of very engaging address, who hai earned an
| exalted reputation for brsiness cat lacity during
! bis soiousn IN Memphis. with two such vnlu-
| able assistants. MIR. BAbbitt was gGorded plenty
| OF time for his inventions, aud his absences
from 6g Washington street were both frequent
| and proloneou. lIeckwith, who controlled the
| cash account, was always well furnished WITH
checks signed in blank. ana when Mr.. Babbitt
was In the ofice. scarcely less than In his ab.
| sence, Brckwith exercised almost unlimited
| control of the business. Lewis functions were
| supervising purchases and keeping the books.
Tho trade I'm soap suffered no falling OF from
! lStS until l5Il In the fall OF the latter year
| things began TO 60 badly The volume Of bust
ness was undimnished. hut for some reason an
unusual number OF agents were short IN their
settlements, profits decreased, and the books
| footed up loss for the ye1r. The business OF
/ lSls resulted even more dissstrouslv. Between
20 and 70 Mr.. Babhitt put t-S0,0Oo additional
capital into the business ms cad OF adding
that amount to his bank account This alarm
| ing condition Of ar airs, however. did not excite
| his suspiciun. II he examined the BOOKS At al
they were 50 f,irly made up that he was forced
TO the inclusion that bad times alone caused
| tire Otscrepaucics.
II Mr. Babbitt had taken the trouble to in
quirc Into tho habits OF his clerks perhaps his
sense of security would have had an earlier
the social propficty OF Beckwith, but Lewis was
leading vety fast life lie wns known TO an
extensive circle OF fsst men az Beau Lewis. He
initiated Col. James Fisk In hts ostentatious dis
play OF wealth. and no rcsembled his exemplar In
his fondnesS for the fair sex. lie was NINE
OF fatness to restaurauteurs and oarkeepers,
giving ext cnsive dinners frequently ana making
champagne cOtks fly with reckless lavishness.
the settlement Of his bar bills was process Of
Triumphant satisfaction to HIN. No delight
seemed an poienant to him as that of producing
a plethoric roll Of greenbacks, smoothing them
out carefully 80 as to display the notes OF large
denomination oi which lie was usually supDlied
with enough to aggregate thousands Of dollars.
In April, 1873 Mr.. ltaObitt had to 90 to Chice-
go to attend 20 suit against one OF ut, ngonts
VINO had failed, owing him fs5'OO While there
he shown corresnondence Of Deckwith
with the debtor, IN which the former referred
70 his employer IN uncomplimentAry phrase.
Mr. Babbitt then lie crmined to discharge Beck
with and on his return he consulted with Lewis
to that end The latter was somewhat discOn-
certed at first, but, recovering his self posses
sion, he advised Mr.. Btbbitt not 20 act hastily,
as "A dis missal would injure Bsckwith's chances
of obtaining employment elsewhere. lie prom
i'm the month and Mr Babbitt LEFT the matter
In hi. hands. Beckwith resigned. and Lewis
ruled IN his stead. The last month Of his stay
with Mr, Babbitt proved a. ruinous one Tor
Lewis. He had been boarding In expensive
style In the 81. Nicholas Hotel. An old
friend from the South, who had been ins,ru-
mental In bringing about Lewis's prosperity,
was also sojournng in the hotel with his wife.
One evening pisto shots were exchanged by
Lewis and hts friend In the corridors. Nobody
Was hurt, aud the event was hu,hed up; nut
Lewis was Invited by Mr.. Rabbit to resign. and
when the old friend went South again his wife
Both leckwith and Lewis must have doctored
the books of the soap boiling business thor
oughly before they gave them Tine man
who succeeded them in charge found nothing
to criticise. MIR. Rabbit was groaning over
steady lOss, hut had rcconcilod himself To u E.,
hoping for better times Within the lrst six
months alter his change Of managing clerks he
was Hgreeably surpri>ed Although the busl-
ncss had not increased IN volume, nor had prices
materially altered, he found balance Of sl5O,-
make up IA Isunl This led to n minuter exami-
nation of the books than had yet been given.
but no fraud was discovered.
Mr. Babbtt says that he mad begun TO enter
tain the opinion that Beckwith ana Lewis had
cheated him. but how exactly he could not ind
out. lie determined to let matters rock along
~ usual for year and half and thereby strk-
ing a h dance between his profits for that time
and the losses OF the previous eighteen months
he hoped TO erTive approximately at the amount
they had absorbed. In that time, too, no thought
their suspicion- would have become 20 entirely
quoted that he would be better enabled to re-
cover the money This belief grew To a certainty
about three months ago when an entry was
found in the cash book purporting to describe
payment FOR all invoice of tdllOw for which no
voucher could be iOunu. n heCOn0 lnNehllEd-
ton OF the books was begun, and the key to tho
frauds having been discovered their peoulations
were laid bare. They consisted OF raising tho
amounts Of bills for goods purchased, bills
wholly fraudulent, imitation Of weekly pay rolls,
charRinG excessive premiums on the rdrchase
OF gold, and excessive brokers' fees. They va.
red greatly 10 weekly amounts, the stealing Of
one week, however, amounting 10 $4,000
There can be no doubt that both the men were
oognizant of the thefts The opportunity was
afforded by MIR. Dabiitts ovcr-cOnndonce in
signing his name to unlimited blank checks.
B-Ckwith filed them out to suit himself, aud
between them they made up such vouchers and
fraudulent Invoices US were necessary to allaY
suspicion.
Lewis did not remain long in New York after
his discharge by MIR. Blbbitt, ana his where
abouts are unknown. That Beckwith remained
hero argues his perfect confidence In their sue
cess In deudlng Mr. BaDbitt liis reputation
for integrity wus so high that not few OF his
friends even now refuse to believe that he has
been guilty OF anything wrong.