New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-20
C. C. BALDWIN RESIGNS.
spEcULATING WITH RAILROAD FUNDS.

Louisville aud NaHlylile hhilrodu Ut " hhO''A'e W.
the directors yesterday. and J. s. Rogers who has
been member of the board for ahoW elghIeen
months. was elected his Successor. 1t was stated
that Mr. Baldwin's resignation was not wholly vol
untary The sudden and unexpected change IN
management gave rise Immediately TO multitude
of rumurs about his relations TO the company
and affecting it's present condition. 1t was re
ported. among other things, that Mt Bald
win had msused securities OF the COM
pany in attempting 70 support tho price OF the
stock in the market and that in consequence OF this
the company likely to suffer considerable
loss. For several days it has been rumored that
some of the prominent directors had been forced 10
sell large blocks OF tho stock at a heavy loss and
these were revived yeser day soon as the change
in the presidency was announced.
The directors of the company after the meeting
were reluctant TO speak about the matter, but adj
nitted that the president had done some things IN
the name of the company which they could not sane
ton II was stated. however, that MIR. BALDWIN
had at once given his check for about S2OJ'ooom
satisfaction of the loss in some of these transacOns
Ii wa understood that under any circumstances the
losses would not exceed 100000 and that they
probably would fall much below that sum.
thorough investigation OF the companys anars
will be made but the directors were satished from
the statements made ut the meeting that the ex-
explanation that none Of the securities as missing
but that the losses had been incurred by purchases
OF the stock By the president in his official capacity
This had been done by him, il said. without the
knowledge of any OF the other directors.
AN EVENING MEETING OF THE DIRECTORS
The directors of the company met last night at
Nh Baldwin's house, No. II East Ihlrty-nith-st.
John l. Cadwalader, counsel for Mr. Baldwin, and
Milton H. Smith, the vice-presdent and
general manager. present. Jay Gould
and Russell Sage were among the d.
reetors who attended the meeting which
was prolonged until after IL o'clock hen the d.
rect0rs began to out they declined to make
any statement. referring inquirers to the seere-
tary of the company, who was said to he engaged
in writing out all the official statement that would
be made on the subject. Mr.. Badwin's parors
were filled with the fragrance of cigars when
TRIBl-NE reporter was admitted 10 receive the
official report. Thomas F. Ryan, Of Lee. Ryan Il
Warren was seated in a sofa, chatting with w =
Williams who is credited with being prominent
figure in the Louisville and Nashville stock pool.
The following slip was furnished Republication by
Mr. Baldwin
The directors If the Louisville and Nashville Railroad
CeniIauv had meeting to-day the president. Nh j.
y Rogers IL toe chair Mr. NJ II. smith vicepre-tdeni,
or The fiscal wear showing gross earnings 81 600,
and net earnings S5,750,OOO After delic,ing h1 TX.
re tok eonivalent 70 pcr cent Mr. Baldw reported
the board that certain funds OF the COMPANY AiL Deh
invested 10 the purchase OF stock % the company, when
when sold pro aced a loss OF S206GC0 The Board hsy-
ne declined recognize the transaction, tie amount mas
peeu made good by III BALDWIN.
WHAT TIE DIR CrORs SAY
T. c. Carley, of Louisville. Ky. third yice-p1esi-
dent Of the company, said
Anything that stated outside o. that statement Is
false There been misuse OF securities by Mt
l 1 ceTsrsd &c thought il best e protect the
OF he
COURSE wouldn't do for The company TO ASSUME t9el1
Baldwin has mad" the losses good by MS own chec
cannot give any details Of the transaction IS enough
for tie pubnc that the company Is secured.
Jay Gould was seen by TRIBUNE reporter IN the
aft eInoOn when the first announcement OF Nj;
Raldwin's resignation had been made. Nj. Could
confirmed the statement and when asked Tor an
exclamation OF the street runors OF an aonHe 3l
rrust by the retiring president OF the company ut
SAID:
There was certain stock transaction which involved
loss 10 TIE compau oi about f%Oo'VVV aII' b'u"lD
hats MADE MS GOOD with BIS cheek. a..
/ 60. tisi tine extent q. The matter p
"Tutirely." replied lir. Could There has been no
dcftcaton or urher transaction beyond THIS lie
finances OF the company are now intact ana nave oeeh 50
reported hy the investigating committee
na was tle nature Of Mr BALDWIN, transaction
A loan of stocSP
/ Nr. could nodded assent.
ANA the siock mar been sold figures Which Melted
MI Gould lowered his head and finally said Yes
director who refused to allow his name TO be
used said last night:
..Ine reason for Mr. Baldwin, resignation is this and
This alone: He been sOlect 10 msrepre' ndfi'u,
malice attack and prejudice. mil he ms grown heartily
sick or all and has rendered his resignation III order 10
Then sprcustion defacation other financial rela-
lions factors IN bringing about tie ressna
30 net in the least There is no defalcation. you
rost assured Mr. Gould has admitted. you
say mt there is something Of the kind
| lie should have waited, them Tor thorcueh
examination Of the matter and he would have found mai
Has Mr BALDWIN been engaged in any financial ven
well he has done things which coud hardly be
justified yet for which he could not be esnsured-'
" nat the nature Of these transactions were the
director declined 10 say. lie added, however:
Mr. Baldwin is guilty Of nothing wrong make the
statement the showing made by the accountant VINO
inen as the result of his examination. Mr.. Bsdwtn's
accounts all right thorough examination VIII now
hind his accounts IN any way yol may resi- ass ured
that be is perfectly responsible, and VIII make every
N SHns he o'I has not been Following the practice
Of Some bank prcsi,lents and been Specializing with
money bonds and other securities belonging 10 the road
l tell YOU plainly that the cause OF Mr. baid" M
trou ole runs back three years, to The tune
when the Newc0mb- Clark interest was overthown MI
followed ~ Mr Baldwin The old interest has kept up
tic attacks and Mr Baldwin has grown tired OF THIS state
! OF affairs.
gentleman formerly connected with the road
I aud present holder of its bonds who has good
/ sources OF information, said to TRIBUNE re-
/ porter:
AT meeting of the drectorstoday, Mr. Baldwin was
/ got OF the room, and resolution deposlng hun
4 j. = Rogers was ilcn tl@cttu III liS PLACE
Mr. Badwn's attorney afterwards drew up for him a
resignation which sent IN 10 the board. The matter
haa brewing for several days but owing 10 the
dillon Of business great efforts made to keep
IL from becoming public. | first heard OF Il
/ On "wednesday last. Mr.. BALDWIN seemed utterly
1nai,p cOmDrehend what situation he had placed
hitself IN He insisted that his action had been taken
eiV for The benefit Of the road 10 keep It's credit good
and prevent s stock from dceCafing. lie Thought the
directors should permit tue loss 10 be paid Ivy the road
An inyestIg. tior slowed that accounts which ne
! ran VITA brokers were al personal
He made large prohis for time. Tn
management the road deserves considerable censure
N. annual reports by President Baldwin have made
in glowing coors. Ia ms last report he placed The iOat
ing debt at S2.OO3,O0O fhereabOuts. The develop
the past two or three days sho" IT to be nearer
S5OODOCO. understand the directors, 10 smooth the
matter over. wi state 10 the pu!c that TIE only trouble