Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-11
PROBING FOR FACTS.
[. E, Haughey, of the W. E.
Baeder Glue Company, Ar
rested on Serious Charges.
HE IS HELD FOR COURT.
Accused of Tampering With the Books
and MisapprOpriating Cash.
OVER $4,000 SAID TO BE MISSING.
Mr.. Kern of the Firm Says His Losses are
Much More Than This.
HE IS HELD FOR COURT.
OVER $4,000 SAID TO BE MISSING.
THE FAILURE CAUSED ONE MANS DEATH

The William E Baeder Glue Company
failure, with all its train of dismal features.
was revived yesterday before Alderman Nc
Masters.
L. c. Haughey, one of the partners of the
firm, was brought before HIS Honor on two
informations. One of them charged MIR.
Haughey with omitting to make full and
true entries in the books of the firm, of falsi-
Tying the books, papers, writings, ETC.,
whereby over S50.00O of the firms money
had not been accounted for, all of which had
been done with the intent to defraud the
company.
The other charge was that the defendant
had used and pledged the name
of the firm wilfuliy and fraudu-
lently to convert to his own use
securities and valuable papers to an amount
greatly exceeding $50, 900. Both informa-
tions were made by George w. White, the
New York bookkeeper OF the firm. Clarence
BurJeigh appeared for the Commonwealth,
and City Attorney ElphinstOue, of ALLIE
gheny, for Mr.. Haughey.
The Note Was Absolutely Worthless.
Thomas P. Day, cashier of the Peoples
National Bank, this city, was the first wit
ness called. He testified to Mr.. Haughey's
having opened an account at that institution
some time in January, 1890, and of his
having had paper discounted there. Mr..
Haughey was introduced by prominent
business men, who stated the firm was all
right, one of the gentlemen being Mr.. Nc
helvey, an oil man. The account was
closed in about four weeks. Just before this
date it was overdrawn S94O but a day or so
later a note for S96S was left Tor collection.
Mr.. Day smiled sadly when he said the
books showed a slight balance in favor Of
the firm, but the note was afterward found
to be worthless. He stated that when the
account was opened he was shown state
ments TO the effect that the assets of the firm
were S166, 600 in excess OF the liabilities.
The next witness called was Mr. White,
the bookkeeper. He said the firm was COM
posed of William Z. Baeder, Mr.. Kern and
L. {. Haughey. each having a third in
terest. Mr.. Haughey was the only member
located in Allegheny county. He had
charge OF the works at Springdale and BoG-
quet.
Discounts Not Reported to Headquarters.
Mr.. White was shown a bank book, ami
pointed out securities amounting to $40, ,975
that had been discounted at the Peoples
National Bank which had never been re-
ported to the New York Office. Mr.. Haughey
was in the habit of making statements to
that office about once every month. They
were always made in his handwriting. He
could not say whether the money Mr..
Haughey received went into the firms bus
mess or not. They had no account of it in
New York. The partnership was formed in
September, 1888. The year previous to the
failure, which occurred in March, 1890, the
sales of the company amounted to $500, 900.
No account of the proceeds of the discounts
was to be found in the books at headquar-
ters.
On cross-examination Mr.. White stated
that some time before the failure as near as
be could recollect, a suit was brought
against the company tor $50, 900. The firm
was not financially embarrassed, however,
as all bills were being promptly met.
Two Views of the Subject
The arguments OF counsel were brief. Mr..
Elphinstone said there was not particle of
evidence 10 warrant the court in holding
the defendant on either charge. Mr..
Haughey's books, which were obtainable
with little trouble, and which cleared up
these points, had not been offered in evil
dence at all. He asked for his clients dis
charge.
Mr.. Burleigh stated that one fact stood
out most prominently. This was that Mr..
Haughey, in the short ace of about one
month, had discounted paper of the firm to
the amount Of $40, ,975, Of which sum not q
single penny had been accounted for. There
were transactions with one bank, and they
were sufficient for the purposes of the case.
A great amount OF additional testimony
Gould have been produced BY the Common
wealth, but he considered it unnecessary to
drag bankers and business men into court to
testify in a preliminary hearing.
Alderman McMasters. without comment
held the defendant for court in both charges.
fixing the bail for each at 81 900. Mr.. Robert
{. Petty signed both bonds.
Baeder Died of Broken Heart.
After the hearing Mr. Kern, the New
York member of the firm, said: "This af-
fair has cost me SIC, 600 in cash. and besides
that l will have to pay a big lot of outstand-
ing judgments against the company. The
truth is J. have been completely scooped. 1
suppose you know that Mr.. Baeder is no
more. He died about a month aro His
heart was broken over the disastrous out
come OF this business. 1t cost us big lot
of money to ascertain how things were go
ing, but am getting considerable light
now. AS for Mr., Baeder, he is beyond the
need oft
-Four or five weeks ago 1 ascertained
that Mr.. Haughey was in Chicago. / had
him brought here on extradition papers and
be gave bail for his appearance at the hear
ing to-day, and that is about all / can tell
you. There may be some interesting de-
velopmeuts later along"
Mr.. White said that the firm had been
completely wiped out, and that Mr.. Kern
had lost about all the money he had. He
also made some very strong statements con-
corning the outcome of the firms business.