Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-22

Nashville by speculation, and opened ae-
counts in various brokers' offices. To
keep up the price he took the money paid
in for the bOnds, and passed it over to his
brokers to keep up margins. The money
from this source was exhausted, and
Mr.. Baldwin hypothetical the bonds
themselves to get more money. In the
place of the bonds he put lot OF inferior
securities, including some Chicago
and Illinois stock. This money, too, was
run through. There was nothing left TO
raise money on. as everything else was
covered by collateral trust bonds, and the
brokers began TO sell Mr.. Baldwin out.
/. Il s. WOrmser, / understand. closed
him out last Friday. To use the term,
Mr.. Baldwin left the company and him
self thoroughly strapped. He cleaned
himself out before he did the company.
An investigation was had. Mr.. Baldwin
claimed his course was for the good OF
the company. His purpose was TO keep
I'D the price of securities. AS it is against
the law for a company to use its funds to
sustain its own stock. Mr.. BaldWin's attl-
tude was untenable. II be had been sue
cessful in putting up the stock the profits
would have been his. AS he was not, the
loss is the c0mpany's. The estimates OF
how much was sunk range from $1OO,OOOS
to s.. SOC. 900. / have no doubt the latter
$209. 600 Of the amount used that was posi-
lively criminal, a bank officer tells me.
Mr.. Baldwin made that up. All the rest
is left unsettled. Outside of the S209, 900
there is one account of $3.50, 900. | suppose
that Mr.. Baldwin was able to borrow
about IS on the bonds. The pool in Louis
vile and Nashville is not yet Iquidated.
Another ugly part of the story is that Mr..
Baldwin in his capacity as President of
no road hn fn
Instead OF earning a small percentage on
the stock, it is now stated that the COM
pany has floating debt of j,000, 600"
A heavy holder of the bridge bonds said
the Henderson Bridge and Railway CON-
pany was organized to build a bridge over
the Ohio river at Henderson, KY, and a
railroad from point opposite Henderson
to Evansville, Ind. distance Of about
ten miles. Bonds to the amount of 81. 000.-
900 were issued at 50, with a bonus of 80
per cent. in stock. The Louisville and
Nashville took 100000 of the bonds. 1t
paid the full purchase price down. Some
individual purchasers did likewise. There
had been two installments called, one of
20 per cent. and another of 10. The re-
naming installments were to be paid 10
per cent. at time every six months. The
next installment was due the 18th. The
Standard Oil Company took 100000 of
trustee to represent it. EX-GOv. Dewey,
Of California, took 100000. The bridge
was built to accommodate several roads,
but was to be controlled by the Louisville
and Nashville.
Mr.. Baldwin was appointed an Aque-
duct Commissioner by Gov. Cleveland to
succeed the late George W. Lane, on
January : last. He is about 30 years
old, and was born in Waterbury, Anne
4 6o1 MI 10 brrr
III Baltimore at an early age and speedily
amassed fortune. When the war broke
out he entered the Confederate army, but
owing to ill-health he received a discharge
after short term Of service. He came to
this city and entered the dry goods COM
mission business as a member of the firm
of Woodward, Baldwin 81 CO., Nos. ~ and
A White street. He retired from the
partnership about three years ago. He is
said to have made considerable money
about 1879. The Alabama and Chatta-
nOOga Railroad is now an appendage to
the Louisville and Nashville, and it was
on the advance in Alabama
and Chattanooga stock at the time
of the absorption of that property that
Baldwin made his money. Ever since
then he has been quite a power, and until
about two years ago was considered very
successful. During the last two years,
winner; at least his friends have not been
successful, and it's to be supposed that
he has not been. He was elected Presi-
dent Of the Louisville and Nashville in
1881. He is one of the governors of the
Union Club and a leading spirit in its
management. He has many followers in
Wall street from that institution who
have not been particularly successful Of
late. Mr.. Baldwin is a widOWer and has !
three young children who recently went |
to Europe for the summer. Politically
Mr.. Baldwin is an anti-JOhn Kelly Demo- |
crat. He has never held political Office, |
however. He is a member of the Young |
Mems Democratic Club, and has been |
regarded as particular friend of Mayor |
Edison.
The Louisville and Nashville Railroad
Company, originally opened for traffic in
1859, has since the war been the leading
line running to the Gulf States. When
the war ceased the equipment and struc- |
ture were in a ruinOus condition, but.
under the energetic management Of its |
President, MIR. II. d. Newcomb, who was
ably seconded by General Manager Fink, !
now Pool Commissioner, it was quickly |
ton which its line and connections |
warranted. The road for several |
years was very profitable, extend |
ing its main line to Memphis, Tenn,
which brought it a very large and re- |
munerative traffic. In 1872 it acquired |
the South and North Alabama Road, |
whereby the road reaches Mobile and |
New Orleans, which has never paid. and
the present financial condition Of the CON- |
pany is largely due to the losses incurred |
in operating this division. The company
has also lost a great deal in the Pensacola |
Division, on which up to the present but |
little, if any, return has accrued to the |
parent company,