The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1901-07-19
Bookkeeper for Gaylord, Blessing
4 Co. Testifies in the Bank
ruptcy Proceedings.
KNEW FIRM WAS lNsoLvEnT.
Guy P. Billion Examined as to
Money Given Him by Gaylord
just Before the Crash
Came.

The deposition Of II. L. MacCabe was
taken Yesterday in the bankruptcy proceed.
ings OF the firm Of Gaylord. Blessing & Co
oetore Walter D. Coles. Attorney George
ID. Reynolds examined Mr.. MacCabe. who
was bookkeeper for the bankrupt firm. as to
the methods Of keeping books employed by
Gaylord. Blessing & Co. Exhibiting the
books used. Mr.. Maccabe explained that
he made no entries on oral orders. but that
every transaction entered by him in the
books came to him as a memorandum from
either of the members Of the firm. Guy P.
Billion. the firms street man. or Samuel G.
Payne. the telegraph operator. He said Mi.
Gaylord frequently examined the books,
sometimes daily. and that all securities
were kept locked in strong box. to which
the bookkeeper did not have access.
MacCabe explained that numerous &C
counts were kept under fictitious names.
and others were merely book or paper
deals. The accounts Of wv" Brown and
wv. A." Brown, he said. were Mrs. Bless
ing's accounts. There was deposited to the
credit of wv" Brown. as collateral, a
$1,0oO Gray's Point bond. which was re-
turned to Mrs. Blessing when the deal was
closed out.
0soSh oSSooAI GNO d ne sdAuf Was lu0
account kept by city or local stock trans
actions. Guy p. Billion looked after the
business. and when statements were made
the firm took credit for any profits made. +"
Stock account No. was Blessings ac-
count. and the regular stock account was
not show by his books what became Of
some securities. Others he could account
for. and. in answer to a question, he stated
that often bonds or stocks were taken out
shown on the books. He showed by his
books that the firm was heavily short on
Wabash debenture B bonds. when Its Gus.
had been delivered to. or held for delivery
for, several customers. He explained that
II was only occasionally that securities
in New York.
In the afternoon MacCabe stated that. &C
cordins to the books. the firm had only
made 10000. instead OF $4,000 as stated IN
This money" he said. helped the firm
back to solvent condition for time, He
had known. however. for the last three
years that the firm was insolvent, and he
knew of numerous instances in which Gus
toners ordered stocks or bond orders exc
cuted that never were executed.
firm. was the next witness. He had charge
Of local securities. He testified that he
never diverted any money accruing from
the sale OF stocks from the nrs a aei ipsnl.
vent, but, Judging from what he saw ana
heard, he thoue hit 1t must be SO. some time
before the assignment. He knew that or
ders for the purchase of stocks and bonds
in New York were never executed. These
transactions, he said. were made by MIR.
blessing, and Mr. Gaylord was much OPP
posed to that method OF conducting the
business. ~,
II suppose he did, said Billion.
How much of Mr.. Gaylo-d's money did
you haveg' asked Mr.. Reynolds;
II ess than $780," answered Billion.
when did you get 1t
before the failure
why did he say he was giving 1t to
you?" :. e., ,,,,
safe deposit box. He knew had one
I'm all the years you had oeen win Ine
money for him?"
Didn't you think 1t an extraordinary re-
quest at that time?"
mo, I did not"
"Didn't you know at the time he gave
YOU that money that the firm was insol-
II had reason to believe that it was, -
How much money did you pay PACK 10
Mr. GaylordT' ., mn ,,,h,.h
vss nlaced to his credit in bankruptcy. 1
denosited 300 at one time and $1,300 at an
This closed the examination OF Billion.
To-day at $50 p. m. Samuel Y. PAYNE; teis
graph operator, will be examined. anu saas
WIN end the taking OF testimony oeiore
Referee Coles.