New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-11-15
THE BALDWINS STOCK DEALINGS.
HEAVY AMOUNTS CARRIED on MARGINS.


HEAVY AMOUNTS CARRIED ON MARGINS
THE EXAMINATION OF OSCAR L. BALDWIN CONlIN-
UEp-iEsTIMoNY OF A W ,LL-sT. BROKER As TO
THEODORE F. BALDwIN's sPECUGATIoNs.
The examination of Oscar l.. Baldwin, the default
ing cashier of the Mechanics National Bank OF
Newark was Ontinued Yesterday, at Newark, be-
fore United States Commissioner Whitehead. Bald
win was not present and was represented by his
counsel, ex-Judge Ellsworth. The Government was
represented by Assistant District-Attomey G. VI.
Keasbey. Christopher Nugcnt & Co. by cx-Judge
Teese and associate counsel. and Martin & Runyun,
stock brokers New-York. by J. Francis Fort.
AT b. Martin of Martin & RuIyon, after giving
testimony in regard to Nugents drafts essentially
the same as the testimony given AZ the previous ex-
animation was cross-examued by the counsel for
the Nugents in regard TO the accounts of Isabella
Baldwin wife of Oscar l.. Baldwin and Theodore +.
Baldwin paying teller OF the bank. Objection was
made ivy Martins counsel that the questions asked
were not relevant. Judge Tee,e insisted that the
object of his questions was to sh W that the money
distracted by Oscar L. Baldwin was hid len away
by him in stock transactions in the name OF his wife
and his half-brother Theodore +. Bald
win. judge Teese said that the whole oh
iect OF the examination was to strike
at c. Nugent & Co.. and enable the Government to
of the firm. After some argument the Commissioners
admitted the ques ion. judge Teese then asked tine
witness If Oscar +. Baldwn's wife had an account
with his firm The witness stated that she drew her
account about - 600 about ten days ago. on an
order to vii lam II. Lenassena, Newark stock
broker Mrs Baldwin had never appeared at the
Office Deposits for his wife made by Oscar l..
Baldwin. She never had more than 5000 al any
one time on deposit. She had purchased stocks
through the firm Oscar l.. Baldwin hal also pur-
chased stocks, but to a limited amount.
Mr.. Martin was questioned in regard to the stock
transactions of Theodore F. Baldwin, the paying
teller of the Mechanics Bank. He testified that hls
firm had received from Theodore +. Baldwin by
messenger as much 10000 for margins on
stocks, and that he had as much $40 900 for mar
gins at one time; Martin had borrowed for Thco-
dore F. Baldwin as much as 10 900 shares Of stock
representing II 100000. The account closed
in 1877 The transactions began by Theodore /.
Baldwin sending order to sell on margin 1000
shares of stock Mr.. Martin does the business in the
board for the firm. One day in 1877 he looked over
the books and found that Theodore i. Baldwin
carrying 10000 shares on a margin OF
seven per cent. Questioning the adviSability
Of carrying such "a heavy amount OF stock
for a person occupying the position OF Gus
todan Of trust spoke to his partner, MT. Run
yon. and at the same time wrote TO Theodore +.
Baldwin. Mr. RunVOn, who lives in Newark, saw
Oscar l.. Baldwin the same evening al his house and
told him about the stock Mr.. Baldwin expressed
some surprise and said he would look into the mat
ter On the subsequent evening he told Mr. RunyOn
that the matter was all right Mr. Martin was,
however, resolved 10 close the account. The stocks
speculated in were pTincl ally cod stocks Deia-
ware Lackawanna and Western, and Central In
reply to Hr. Martins note To Theodore +. Baldwin
the latter wrote asking VIVA stock brokers he lMr.
Martini could recommend 10 him. The latter wrote
III reply the following letter:
NEw-Yo May g. 1877
THEODORE T. BALDWIN, esq.
RSR:-YOurs OF this date, through courtesy Of
Mr. Crockett has been handed as and we willingly com
ply with your request to give you the names OF brokers
have hesitation in stating that if desired TO
late do not know OF any houses that we would sooner
eurust with business than the names given below.
We presume it Is your intention TO change your account
from Office 10 some house that will execute all orders
you This viii be satisfactory TO and viii also
endeavOr TO aid you in 80 placing it, IL Will be neces-
sary for you to come down and make the arrange
nent aud will take pleasure in introducing you to
any of the houses may select We would suggest to-
morrow morning a satisfactory time 10 MS In conou
sion will say that any change you may make will not be
taken by personal matter but will take II as
matter exclusively, we do not desire TO carry the line
that you evidently intend to cell Yours very
truly. 49,, , -.
Previous to the writing Of this letter an order was
received from Theodore +. Baldwin for the sale of
another Thousand shares, making 1000 IN all, on
winch the margin of loss might be close toplOOOOO.
II was not stated in evidence by Mr. Martin but his
counsel remarked, that Theodore i. BALDWIN made
$4,000 when the account was closed. In further
evidence Mr.. Martin stated that the six notes OF
Augents exhibited in the examination had not
been returned TO Nugent 81 ply because he had
not asked for them aud, far as his recollection
went, the notes did not represent adithe OF the |
notes paid by Nugents checks and payable at the |
Office of Martin & Runyou.
Mr.. Andersen, of the firm of Packard & Andersen |
stock brokers' this city. was present, bat not
examined. Judge Icese expressed his objection TO |
the Assistant DistTicJ-AttOrney having a private !
conference with Mr. Andersen. he eXaIninal ion |
was adjourned to saturday at 10 a. M.
There Is a determination expires ed among the de- !
pOstOrs 10 take united action against the directors
of the Mechanics Bank to determine their Liability |
under the civil law for the individual losses III
CURED through their neglect. There have been sew
eral con erences of GepOst0rs. Yesterday one OF |
these stated that aTTaug emeuts would be made to
bring common civil suit before the Essex County |
Courts United States Commissioner keasbey. who |
has withdrawn from the criminal proceedings |
against Baldwin and Nugent account Of the con-
nectiou OF the law firm OF which he Is n member |
with tho civil suits involved, told Tribune re- |
porter yesterday that he knew nothing yet OF any
contemplated action on the part of the depOsltOTs
Marchbank, the corresponding clerk Of The bank |
accused Of eInbezzng $40 600, Will be broaght be-
fore United States Commissioner Paterson this |
morning, and having waived examination hIs |
bail Will be renewed Tor HIM TO go before the United
States Grand Jury az Trenton.