Waterbury evening Democrat., 1892-12-30
RUINED HIS PARTNERS
Theo. Baldwin Forces Trask
& Co. to the Wall.
HE WAS A DARING SPECTATOR,

And Used the Firms Money to Further
His Own Schemes-A Defalcation of at
Least $3.50, oOO-Ths Truth Discovered
by Accident Offers of Financial As
sistance Refused.
NEW York, Dec. 30.-Wayla nd Trask
g. Co., of No. 10 Wall street have been
forced to the wall. Their failure was an
nounced on the Stock Exchange yesterday.
1t was known on Wednesday at the close
of business that prominent firm was in
trouble, but nobody suspected that it was
this old and presumably solid firm.
1t was composed of Wayland Trask,
Theodore Baldwin and A. N. Rankin.
Mr.. Baldwin appears to be responsible for
the wreck. Ever since the formation of
the company in May, 1881, he has had
charge of the books and the general Office
business. He enjoyed the absolute con-
fidence of his associates and in matters
financial had full sway.
Last week Mr.. Trask was amazed to
receive a demand from banks which were
carrying their loans for additional mar
gins. He said there must be some mis-
take, adding that he would examine the
books and learn the cause Of the trouble.
Mr.. Trask made an investigation on his
own account. Startling discoveries were
the result.
Baldwin, it was determined, had been
specializing on his own account and had
loaded the books with fictitious accounts.
Customers money and securities had been
freely used by Baldwin to margin his own
transactions 1t was cruel revelation
to Mr.. TraSk.
Dazed by the blow, he sought his part
ner, and confronted him with the evil
dences of guilt.
Bowed with shame and confusion, Bald
win confessed that he did wrong, and Of
fered to make such restitution as he was
able. He also volunteered to aid expert
accountants in their scrutiny of the
books. His services in that unwelcome
task were engaged and he is now at work.
When Mr.. Trask became aware of the
condition of affairs he sent notices to firms
having contracts with him to close out
his accounts at the best price they could.
The firm was carrying large amounts of
Northern Pacific, among other stocks. 1t
was the liquidation of these accounts that
caused such heavy decline in that stock
when the rest of the market
was full of bull excitement.
After the suspension had been officially
announced yesterday it was also said that
there were no outstanding obligations on
the board. Such losses as have occurred
will fall on the customers of the firm,
| most of whom are Brooklyn people.
Simon H. Stearns, counsel for the firm,
| and from whom the facts of the defalca-
ton and failure are mostly learned, says
that so far as the hasty examination of
the books disclose the losses amount to
about $3.50, 900. These figures, however,
are likely to be increased.
Baldwin has been at his crooked work
| for about three years. Secretly he spec
| ulated in almost every stock on the list,
it is said, and while it was rumored that
he had been particularly hard hit on
| Northern Pacific, Chicago Gas and Omaha,
it seems if he had lost on everything
| he handled.
| Over $500, 900 was offered to Mr. Trask
| by various firms to help him out of his
| trouble, but he declined all. assistance
| until he learned the real amount of his
| partners defalcation.
Mr.. Irask has been a member of the
| Stock Exchange tince Oct '16, 1869, and
| WAS the floor member of the firm since its
| organization. He was formerly connected
with a. NJ. Kidder 81 Co. Baldwin is
| said to have been clerk for ten years or
more of L. c. Benedict.
What legal steps will be taken against
Baldwin had not been determined last
night, but it is probable that some of the
customers will prosecute him for embez-
element. At present he is under So veil
| lance.