New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-12-30
A PARTNERS DEFALCATION.
WAYLAND TRASK & CO.. BROKERS. SUS
PEND.
THEODORE BALDWIN HAD MIsAPPRopEIATED

Exchange irm OF NaXland lrask W Oo', dt w
Is Wall-=t.. yesterday led TO subsequent state
mcnts, which unfoh story OF partners bad
faith that involves loss in unjustablc specu-
latons which amounts at least TO $4,000, and
may run into higher figures 1t is the old story
of misplaced confidence end betrayal of trust OF
a young man rnning his future by improper cor-
duct but fortunately it does not yet appear that
the financial consequences will be serious. The
senior partner in the unfortunate firm commands
the respect Of the financial community, and 1t is
hopcd tha. his affairs may be soon satisfactorily
ad jusied.
The recent weakness in the securities of the
Northern Pacific Railroad has given rise to various
dsquieting rumors in Wall Street. The heavy
selling this week created the idea that forced
liquidation was going on and whispers anout
Wayland Trask & Co. were connected with the
decline. On Wednesday the firm sent word to
other stock exchanges TO close ont all tranSac-
tions qniet'v. II was then hoped by those per
sons wh, knew this fac. that the house would
he able IN avoid suspension. About 80 p. M
vcstcrdav however. the formal notice oil suspension
wa. sent to tie Exchange authorities N
the oric~ OF Trask & CO. inqulrers were referred
10 Simon II. Stem. attorney, at No. 40 Nall-S'',
and Mr. Stern disclosed TO them the causes oi
the failure According to Mr. Stern's state
ncnts. Theodore Baldwin. a partner IN IN" co'l-
corn has for the last four years been spccn-
latinr without the knowledge OF his partners an"
usinr the funds and credit OF the firm until his
losses were too great 10 pcrni further cohceancn'
of thc wronqdorg. The exposure brought
confession from Mr. Baldwin, who Is now en-
doavoring 70 assist in strengthening ont tine books
and accounts of the hous", 80 a. 10 cha"'F "
to ascertain i;S eNact standing
Tho firm NJ Waylnnd Trask & CO. was organized
ON Nav / 1888. Mr. Tra-k has been mem
bor of thr Stock Exchange since October :, l7oV'
and WAS a, one time member Of A. VI. hld'i's
4 CO Mr. Trask has always been cjnscrNa'N'
.,6 his FELLOW members held him In hlgh esteem
Whom in 1888. he went into partnership "l'l
Theodore Baldwin. his partner was suppose" 10
he . voury man whose antcccdcntS ana connect
tlons assured 20 him successful future bald"ln
is The son of Joseph r. Baldwin, the old cashier
NJ the Manhattan Company Bank, who sncc"'''"
Dewitt G. Hay- ~ president some months aSo'
The yonnq man bad for several years been clerk
in the banking firm Of l.. l.. Benedict co.. ana
Mr. benedict said Yesterday that he had ehIoyel
his co,Gdopca and rrvtrd The firm Of Wayland
1,,sl, { 60 vyas successful At the start, and did
q bu4ircss of fairly large proportions ABOUT
eighteen months aao tho partnership was "h-
larpcd by tho addition Of Alfred y kaHN'n
ship chandler N No. ~ N'N'h-~''' HN'"- "' "
ont We.t Fif,y-seventh-st Mr. Rankin gave NJ
clos. attention TO thr details OF the o"'lh'''
w Tr,.l, who WAS the Board member OF TN"
firm. was in the Stock Exchange all day eNccailn{
or1ors Young Baldwin had charge o. the
bool. of the house. aad was trusted i'm
ar .tlg Is NJ. 1ra-k. IIo madc a'l the
loans. and by the control Of the booK'
Was able 70 hide his speculative operations from
,bc senior pnrtner NJ. 1ras, on last saturday
r,,rJ bv accident of the fact that one OF III"
banks or brokers from whom IN" firm was po'r'"
inc money i'm the ordinary course oi nuSir>- VIZ
demanding ndIitiona! collateral. AS MT ifaSN
alvays prid.d himself upon keeping his resources
in good shape. he wu4 surprised at TINS news nn'
o.,,l ga exclamation frcm Nr lald"l". l''
l,ttrr pos.cd tie matter over as the result VI !"
,is..l. Mr. Task worried over th' II, ~
dc,f. and ON sunday or Nonday-thc date 'ou''
,,o, ,o clearly nNcd by Mr.. Stern yesterday II"
v-.ut to his office and began - examine 'I' "''N'
r,,r,. .,,corod which ne coull rot c\plMh' ana
an Tuesday he took lc1al pivirc. IN lh"i ""
lo,wcnu Mr.. Tra.k. Mr. BALDWIN ana ME- sue"
,..,Itcd i'm Baldwin corfcs-ng tla' H' "'' -
s,coul,tinc without th" knowi'dV" u ''
o,r.ncr-. and had been malipuIal"e t'' 40, =,
- couccol the facts Mr.. lpsK al once "''",
:, eusnend until hc could ma o'l "o" i"
stood. and the result was the notices 9'"'
"Wednesday 10 closr ali pending accounts WIN
other brokerage houses, ard the mn"i ','''r" T'
"'"e. . rn.,c,d,, Of the failur, oi Wayland lra'K
~ Co. .r. !; ;,,nos.ibia
MI. ta, tho as cts and liabilities of the firm
Fxrcrt accountants are now at wcrN Oh ,l''
a,1 Mr. baldwin. who is oyerw hclm"d win
- :; d,ina all he can to explain matt"rs'
~, .,oo,l,tions appear to have run aioh3 'oi
t ,our years. and the losses amount 10 at
o,-r ooO Thcy may b. larger Mr' hI"-
,,rd the accounts Of customers WHO "''c
,.i,b tho house. AM he also conducted
,,,, of his opcrations throush hctltlo"9 e"'iio''
,Ia .oror,tions were not confined 10 any p"'
s.ocl,. they covered the general STOCK ilS' al"
ilr 9'', i,,olout Mr. Stern said that
,I legitimate accounts OF the firm were WIN '"''-
narotiyelv few customers All OF the c"S'o.n''
,, .aor ox,ccncly consideratc, and Mr. stern
NV -, .l,o, in \ few DAYS Mr. Irask would De
] W ,,ct , settlement and resume business
.. liho,ol offers Of money are SAID 10 nav
., ,,,,5, - enable Mr. Trask TO tide over MS
,..,,Ics and avoid suspension. lie reluS'u .nen'
IN h.cou.n of the imperative necessity ne It" "0
a., borcst man TO find out exactly now Ms "n'''.
.,ood Il wa, said at the windsor iio''i A'
o,.oring that Badwin's loses hld oeen "N'r'"' ~
ho,vv in Distillne and Clttle fe''lhs' wiz" WV
,ricc broke 20 badly about ton days ago
Wayland Trask is ov". fifty years old anu Is o''
g tbc mos. popular men in Wall street lie l.
AN cleon-shavcn ard has red hair. He has loh3
been identified with Wall street having re :" l"l '%
.,or,. vcars connected with the firm oi y. NJ
Widdor & Co.. and acting as their board member
ia formed the present firm on May !, lSS'. Nr
rrasl lives at No. pa Adelphi-st., HrooklNh
md i, a prominent ciubman and Is hi4h ID
,,asonic circles He is also well Known ior "l'
interest IN charitable work. lie belongs u
pa,.a, Arch I.odge, New-York, and to tic
eact,isb Pi,e and other Masonic organizations II
Erooklyn. lie is president of the Aurora ',r"''
Climb of Brooklyn, the leading Soc'il Gu" y
Na.ocs ,brrc. He also belongs to the oNlor'
N, rr;. customers are said TO have been to
oroat cxtent Brooklyn people who knew hiu
oiar, E'o Grca, sympathy with his misfortune
was cxprcseel by all his acquantance' III nr0gh Oh,
,'." as ,vcll rs much surprise and regret at 'm'
- -, Theodore Baldwin, who Is also well
4 aud uODtllaf.