Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-12-30
WALL STREET PITS
Engulf a Very Old and Hon
ored Firm on New YOrk's
Stock Exchange.
RASCALITY OF A PARTNER
Who speculated the Money Of the
House Away Causes the Crash.
WAS BITTEN ON EVERY VENTURE.
The Senior Member Acts Honorably When
lie Saw Ruin Inevitable.
CREDITORS PREPARED FOR THE BLOW

NEW YORK. Dec 29-The failure Of
Wayland Trask & Go. was announced to-
day on the Stock Exchange. The firm was
composed OF Wayland Trask, Theodore
Baldwin and A. N. Rankin, and had offices
on Wall street. The failure had been ex-
pected since yesterday, when the firm
notified its customers that they must take
up their own contracts Mr.. Trask has
been member of the Exchange since 1869.
The cause of the failure at first was
thought to be too much confidence in North
ern Pacific securities A later explanation,
given below, puts an entirely different light
on the matter What gave rise to the
Northern Pacific theory was that the house
was carrying large loads of these securities,
which have for the past year been declining
steadily in value. During the past few
days they have been particularly weak.
This heavy selling was due to liquidation
of loans by Wayland Trask & Co., the de-
clining price of the stock having made it
impossible for them to keep margins good.
Got Rid Of All Their Contracts.
The failure caused no excitement in the
street, as the trouble has been known for
several days, although it was generally be-
lieved failure would be averted. The
firm gave sufficient notice to those with
whom they had contracts Hence, when
the failure was announced this afternoon,
it was also, announced that the firm had no
outstanding contracts
Mr.. Trask this afternoon declined to say
anything about the failure, and referred
everyone to his lawyer, B. H. Stern. Mr..
Stern gave out the following statement con-
cerning the firm:
1.-THE suspension of the firm of Wayland
Trask & Co. is due to the fact that one OF
the partners, Theodore Baldwin, has been
speculating on his account and with the
firms money. He has lost in this way
about S150,000. Nothing was known of his
operations until Monday or Tuesday, when
some of the banks sent in to Trask & Co for
additional margin on their loans. This led
to an investigation, and it was discovered
that the books were all wrong and that
many fictitious entries had been made upon
them. Mr.. TraSk saw that he could not
honorably continue In business and resolved
to suspend. Baldwin has confessed every
thing, and is now at work helping the ex-
pert with his work in Strengthening out the
books.
The Methods OF the Culprit
Baldwin's method of operating was to
enter a number of fictitious names upon the
firms books and conduct his speculations
under those names. The money to margin
these accounts he took from the firm and
covered up his tracks by making false
entries in the books. He also conducted
operations with other firms in Wall street,
also using his firms money, and this, of
course, must be made good. MI. Stern
would not say who the houses were, nor could |
he give even an approximate estimate of the |
amount of assets and liabilities of the sus-
pended firm until the expert examination |
was concluded.
He said that the $3.50, 900 lost by Baldwin
is also an estimated amount. It might turn |
out to be much more. Baldwin's specula- |
tions have been going on for about three
years and were, of course, entirely unknown |
TO his firm. He has been speculating in |
almost every stock on the lists, it is said, |
and while it was supposed he had been
hard hit on Northern Pacific,
Chicago Gas and Omaha, Lawyer Stern said
it looked as if he had lost in everything he
touched.
The Records of the Partners.
Baldwin become member of the present
firm in 1881, coming to them from E G.
Benedict & Co. He was a resident of
Brooklyn, aud has always had an excellent
reputation. 1t could not be learned whether
or not any proceedings of any kind would
be taken against him. He is said to be
broken down by his misdoings,
and has expressed his willingness to do
anything asked of him.
Wayland Trask has been member of the
Stock Exchange for "a years, and is very
popular. Over $500, 900 was offered to him
Today by various firms to help him out,
but he declined all assistance until he could
discover the real amount of his partners
lefalcation. The firm sent around this
morning and paid off all their loan at the
1auks