New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-03
THE BATEMAN FAILURE.
CHARGES MADE BY THE ASSIGNEE.

COMPLICATED STATE or AFFAIRS.
John A. Carver the assignee Of Bateman & Co.,
the SUSPENDED brokers at No. 81 Broadway, re-
turned from Washington on Thursday. and at the
Office of Shearman Il Sterling. the law firm with
which he is connected, the following statement
was given out:
Although Bateman & Co. were much nam
percd by the inability of their debtors to meet
enaagements promptly, yet as they had good as
surances that payment would soon he MADE, ana rs
their creditors were literally disposed their as
signment would not have been necessary al once,
if at all, but for the extraordinary cohducU VI
the firm Of A. j. Wright d Co.. their bniiao cor
RESPONDENTS This firm was debited on the DOCKS
Of Bateman & Co. on December 80 with over
ST. CO. 600 against which large number or STOCKS
were carried as security. On the morning oil De-
cembcr 80 Mr.. Gladwin. of the f1rm OF n. -
Wright & Co., asked the cashier OF Ba'emah "
Co. TO clear for that firm 500 shares Of Lake Shore
stock which Wright & Co. had sold short hate-
man e. Co. having been constantly in the hapi'
NJ doing this for Wright & Co. the CASHIER as
scnted and. at the request Of Mr.. Gladwin, re-
csivod from F. w. Savin g. Co. 500 shares OF Lake
Shore stock. paving TO them S54 in two cheeks
on the Fourth National Bank. which the palN
certified on the assurance that the account "o"iu
be made good within a few minutes MI "i'"
win represented TO Bateman N Co. that ne n""
sold this stock TO +. L. Oppcnhelm " 60. ne
waited in the Office of Bateman ~ TO. uh'll "oo
shares Of the stock arrived at that Once "ieh
no osted the cashier 10 allow him TO deliver the
stock TO Oppcnheim, saying that he wouiu pIlns
back check On this assurance the cashier al
lowed Mr. Gladwin to take the certificates ana hc
left the office.
Soon afterward the other 200 shares came Ill,
and the cashier sent clerk to the once %
Onnenbeim G. Co to deliver the stock and get
cbeck The clerk handed the certificates oi
stock in at the stock window of Oppenhcim "
Co. when he saw Mr. Gladwin waiting Just ou'Sloo
tho window. Mr. Gladwin instantly seized 'he
certificates and nut them in his pocket and then
explaincd 10 the astonished clerk that 1t was all
r;rbt and that he wanted the clerk To go Win
him As the clerk knew Mr.. Gladwin well ana
knew that he had constant dealings with BATE
man Il Co., he supposed that it was all rlGh'' ~
though he was surprised at the TRANSACTION NV
accordingly followed Mr. Gladwin To scvcrai
offices. including that OF +. W. SaVlh " 70, "
whom Mr. GJadwn turned over the STOCK mus
returning TO them the identical stock which t'cN
had sold and delivered less than an hour Prev
,,s,. Mr. Sovin asked the clerk whether he
understood the transaction, and the clerk "
nlvnr that Mr. Savin knew more about II lhhh
he did. Mr.. Savn said ii was very curious
affair Mr. Gladwin then returned 10 the oihc'
Of Batcman d Co. alone. and upon being ashe'
nv the cashier for the check, refused To give any
explanation except TO Mr. Coon, one oil ''
Mariners personally. When he saw MT. loon
who inquired what he meant by the TRANSACTION
IF rho dsy, no said that he had taken the best
legal counsel had acted in all things under inc
advice Of his lawyer. that he was going 10 pro
nd hof
already arranged his bail, one Of whom hc sad was
Henry Allen and that he quite prepared I"
take care Of himself Mr. Coon told him that II
was 4 case OF clear robbery Mr.. Gadwln asked
Mr.. Coon 70 accompany him 10 his lawyers Office
to talk over the matter. Mr.. Coon was very re-
luctant 10 do this, but finally consentei, Wh'h
they went together 10 the Office OF Augustus y
Brown in the Equitibe Building, but Mr
Brown being absent Mr.. Coon got tired OF wall
ing and refused ~ STAY any longer, telling Nj
Gladwin that il was case Of unnitea'cd robbery
To the extent Of at least - 900 inasmuch as MI
Gladwin did not prc,cndfhat Bateman & Co. were
indebted to Wright d Co. for more than $4,000,
while he had taken $4,000
mfr. Coon returned Immediately 70 his office.
and in few minutes received a letter from a. j.
Wright & Co.. inclosing a check for 5000. Ihls
check Hatcman d Co. Immediately paid over -
the Fourth National Bank toward maItih- good
their account But as their account YVES con
siderably ovcrdrawn, il became necessary thai
the firm should make an assignment for the pro-
lection of the bank as well as of lis creditors
generally. and accordingly. the assignment wa
executed that evening. Mr.. Carver, the assignee
went TO Washington the night Of December 20
to take charge Of the Office and property there
and did not return 10 his Office until yesterday
Immediately upon his return, upon being Informed
| of these facts he demanded the return or the
| 500 shares Of stock from +. W Savin & Co., and
| was Informed by them that they had parted WIN
| the stock and that they had only paid $1,000 on
account Of il on the day Of is delivery, paying
| the balance only short time before Mr. Carver
called at their office. They Of course refused -
| deliver the stock, and Mr.. Carver Immediately
| began an action in the Supreme Court 10 recover
| its value from F. W. Savin d Co.
| 1T appears that upon receiving the two cert-
| fed checks from Batemnn & Co.. amounting to
| over S54. 600, +. W. Savin a co. sent them ~
| once to the Fourth National Bank, with demand
for the currency. This excited The suspicious Of
| the bank which refused to pay the checks, except
| through the Clearing House, Immediately refused
| to certify any further for l1aieman d Co, AMI
peremptorly called in It's loans to the firm amount
| ing 10 about $4,000 This action made the
| assignment Of the firm inevitable for the pro
| lection Of It's general creditors.
Both Mr.. Hocman and Mr. Coon az well as
their cashier state that A. j Wright IL CO. never
demanded n statement Of their account, until after
Mr. Gladwin had secured the 500 shares Of stock.
! Wriaht d Co.. however, claim that they made
such o demand the day before, and that they
only rcsortcd IN tins 10 protect Themselves,
| when they were unable 10 obtain "A settlement
| of their account. II the statemcrts Of Bateman
| K Co. are true, then Wright N Co. were un.
| questionably debtors fer 100000 when Mr..
] Gladwin took the stock. II the statements OF
Wright & Co. are true they bad claim upon
Eateman & Co. for the delivery OF securities worth
more than the 100000, upon payment Of the
$50, 900 which, however, they certainly had not
paid Wright q Co. claim that if their securities
| Id oil hecn delivered 10 them rs they saY 1lev