The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1901-07-16

that we did not execute orders. There vsrs
times when We sold snort and credited
dividends to our own account"
AT lis O'clock q recess was taken until
o'clock. when Mr.. Gaylord vas again put ;
on the stand.
The examination of Mr. Gaylord was con-
tinued all the afternoon. Asked by Mr..
Reynolds when he got the 2,026 reported I'm
the schedule he fled in bankruptcy. Gay
lard replied that he had 1t in q safe deposit
vault.
ibid you have it in safe deposit vault
In your name?"
ut was in the name of Guy p Billion.
when did you give that money to Guy
Il gave IL to him at different timss in
How much did you give himy'
"Ali told. gave him something Ike y 80
How did he pay it to you?"
; sWheneyer asked for 1t and IN ,ne sums
"Do you know exactly how much you
gave him and how much he returned TO
you?"
"The balance Of s2026 was all had there"
How do you know THAR
Because know tina. Mr.. Billion IS an
honest and reliable man."
Mr.. Reynolds next asked the witness to
show by his books how many shares or
stocks, according to the books, we're pur-
as% 4u ana sGa Gay ss ssd t an rs
percentage OF the transactions appearing m
the firms st. Louis books had not been
UaQSm1tIe0 70 view 4Ofk-
Collaterals Placed in Bank.
Next came the examination Of collaterals.
Here Mr. Gaylord admitted that the nrm
had at times detached collaterals from
customers notes and used them in bank
here for Its own account. He also stated
that the bulk of transactions In STOCK ac-
count No. were mere book deals
His attention was called to the Becker
account. which showed that under date OF
the account Of Becker Of 5000 in Wabash
debenture B. 1t was shown that Becker
had heen charged commission on his order
and he had also been charged interest until
March II. 1891. Mr.. GAYLORD was asked to
bends Sas ordered bought for Beckel.s account.
He closed the book saying: 'fhe Donds
were not purchased"
Asked how much commission they charged
customers. he replied: "One-eighth for puf-
chases and one-eighth for saies-thef II
one-eighth Of per cent.
How the Firm Made Money.
''Who got that commission inquired Mr..
Reynolds; xo.x ,..... +. ..,a AR cav.
lord.
'Where Gid you come in; how did you go
anything cut Of the ousiness?'
"a member Of a New York firm allowe0
Us on every very, 100 shares, sna a,sS
customer 8 per cent We settled with the
New York Arm for 4 Per CEN cent ,,..,oa-
.'You know the New York stock Exchange
rules do not allow . division Of comnfs-
sions. and our method was adopted to aSese
that restriction" -
Gaylord said:
stock purchased and put up his mare1n-
Gaylord. Blessing & Co would, ectn9
bears, instead of buying 100 shares IN New
York, sell that number there.
"You would not buy for your cuse@nsrs
arcO1fnt n hiS ordeYT
"GsneralIy we would not
'-Then II the market declined. accgI010
to your Judgment. you made prone On
your own sales In New York In addition 70
the customers margin!
Eyes, sir"
"And II the market advanced you lot On
your own sales In New York In adMoon
| 10 your customers order you had not 81
ecuted?"
"And your inability to pay your -.
! toner made him loser either Nay, voAo
you employed his purchase margin to mar.
gin your saleT
That's about IT."
| Here the examination ended for the ~
! At the close Of Mr. Gaylord's examinattcns
Mr.. Guy p. Billion will ba put on the stAna