Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-03-14
OTHERS IN THE GLUE
Two Local Firms Swamped by
the Baeder Failure.
THEY RELIED ON HAUGHEY
Mr.. Kern Secures a Stay of Execution
~ From Judge Stowe. '
LEGAL COMPLICATIONS INCREASE

62 Water street, and Schimpf & Richards
dealers in curled hair, tow, feathers ant
husks, in Allegheny.
The failure OF these two concerns, both OF
which are composed of young men who have
been in the business for only a short time,
tends to throw light on L. C. Haughey's
transactions, and suggests the manner in
which he disposed of some of the money
which he SO easily raised on notes. L: was
stated Yesterday that both Little and Rich
ards were furnished money to operate their
business by Haughey.
When the glue works at Springdale were
owned by the Pittsburg Glue Company,
Haughey was manager, and John Schimpf
and Milton Richards were employed there
as clerks or Lookkeepers. The glue and
curled hair business were both operated by
the Pittsburg Glue Company, which was
really owned by the Standard Oil Company.
The glue company was composed of Messrs.
Brooks, McKelvey, and other Standard
men. The Standard OIL Company was the
chief consumer of the glue product ofthe ac-
tory, the other principal consumer being the
William A. Baeder Glue Company, of New
York.
HOW HAUGHEY CAME IN.
Under the Standards management the
factory was not very successful, and in Au-
gust, 1888, the property was leased for five
years to the William A. Baeder Glue CON-
pany. Then Mr.. Haughey was taken in as
partner, by William A. Baeder and How
ard L. Kern, Haughey agreeing to put
S37, 900 into the concern. The only thing
Mr.. Haughey did put in was a series of
notes for that sum, which notes are still un-
paid.
Shortly after this partnership was formed
Mr.. Haughey suggested to Milton Richards
and John Schimpf that they should form a
partnership and take hold of the curled hair
business. The Baeder Company, it was in
tended, would conine its operations to the
manufacture of the glue. Schimpf and
Richards accordingly formed partnership
in January, 1889. Schimpf put in $500,
which he borrowed on note from his father
in-law, Alexander Holstein. Richards put
in the same sum, which he borrowed from
L. c. Haughey. The new firm used a part
of the refuse of the William A. Baeder Glue
Company.
Yesterday the junior member of the firm,
r. Milton Richards. filed a bill in equity
against his partner, John A. Schimpf, set
ting forth that the failure of the Baeder Glue
Company rendered it impossible for them to
meet their obligations and continue in bust
ness.
FURTHER COMPLICATIONS.
II was further stated that Mr.. Schimpf
had, without the consent or knowledge of
his partner. confessed judgment against the
firm for S3,7 $50 in favor of Alexander Hol-
stein, the debt being properly not firm OBJ
legation, but an individual liability of Mr..
Schimpf. Mr.. Richards alleged in his bill,
that the assets of the firm, including about
81 900 worth of stock, were valuable. and he
asked that Mr. Schimpf be restrained from
disposing OF any of the property, and that
receiver be appointed.
Mr.. Schimpf appeared in court and con-
sented to the appointment of a receiver.
The court appointed the SAFE Deposit Com
pany, of Pittsburg. as receiver for the firm.
Shortly after this took place William
Flaccus s. Son, the tanners, filed a confess
sion of judgment in their favor, made by
John A. Schimpf for Schimpf & Richards,
to the amount of SS05 &C. An execution
was issued to the Sheriff
Messrs. Chalfant and Carpenter, the at
torneys for Mr.. Richards, will apply to
court to-day to have the Flaccus judgment
set aside, as having been made after the
receiver was appointed.
At the same time William Flaccus & Son
filed judgment for S13, ,293 against Pen
mock & Little, the lard oil aad grease man.
ufacturers. An execution was issued on
this judgment and the Sheriff took posses
sion of the firms office on Water street.
HOW THEY WERE CAUGHT
The relations between Pennock & Little
and L. C. Haughey were very intimate.
Haughey is said to have advanced money
10 the firm, and in return Pennock & Little
Endorsed, at various times, Haughey's
paper. The firm is composed of Joseph w,
Pennock and Richard B. Little.
The Diamond National Bank, of Pitts
burg, yesterday entered suit against the
William A. Baeder Glue Company and
Schimpf & Richards, TO recover 81, 163 79.
The money, it is stated, became due on a
bill of exchange made by Schimpf & Rich
ards and accepted BY the Baeder Glue Com
pany. The latter failed to pay the bill at
maturity.
Howard r. Kern, the Philadelphia MEM
Der of the W. A. Baeder Glue COMPANY.
who has been in this city since Monday, last
evening departed for home He expects to
return here next Tuesday. Yesterday morn
ing he again went to SprIngdale, where the
works are located, and went through some
of the papers in Mr.. L. c. Haughey's desk.
He secured large package of Cancelled
checks and notes, and made, beside, rather
surprising discovery, which, he said, added
to the strength of his conviction that Mr..
Haughey's business methods were exceed
iDgly careless. He found in Mr. Haughev's
desk pile Of blank checks signed by L. C.
Haughey.
CONVENIENT, IF CARELESS.
Any person could have filled out these
checks and had them cashed for almost any
amount desired. The lock on the desk has
been broken for some time, and any employe
could have obtained access to these checks
signed in blank. 1t is not known that such
a thing has not been done.
The checks and notes found by Mr.. Kern
were nearly all OF two kinds. One kind
consisted of the notes of j. II. Yocum, pay
able TO L. c. Haughey or order. These
were discounted by Mr.. Haughey The
other kind consisted of the notes of L. C.
Baughey, payable to j. Il. Yocum. These
were discounted by Mr.. Yocum. The latter
is the Superintendent of the w. A. Baeder
Glue Company. Nearly all of these notes
were discounted BY the Real Estate Loan
and Trust Company. of Allegheny. Their
amounts ranged from $500 to S., 600. Some
were discounted by the Indianapolis Ma
tional Bank, of which L. C. Haughey's
father is president. The DISPATCH reporter
was shown a sample note. 1t was Tor $500,
signed by j. II. Yocum, payable to L. c.
Haughey or order 80 dayS after date, and
payable at postofice box No. $50, Pittsburg.
hob % VIC pOsboulCS DOA Vi Tue W. a. Dde-
der Glue Company.
CLAIMED AS HIS OWN.
Mr.. Kern took possession of all the can
celed notes and the notes signed in blank.
Mr.. Haughey will demand the return of |
these papers, claiming that most of them are
his own property.
Mr.. Kern went to Mr.. Haughey's house |
at Springdale, and found that gentleman in /
consultation with his brother, who had [
come on from Indianapolis. Mr.. Kern de- |
msnded that Mr.. Haughey should accom- |