The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1901-07-16
Gaylord, Blessing & Co.'s Methods
Explained to Referee in
Bankruptcy.
SENIOR PARTNER ON STAND.
Charges Made for Interest and
Commissions on Orders That
Were Never F.lled-Re-
bates Received.

At the examination OF the affairs of the
bankrupt firm Of Gaylord, Blessing q Co.
yesterday before Referee Coles. Samuel
Gaylord. thu senior member Of the erm.
who was on the stand. made statements
which showed that 1t was the practice of
the defunct firm, not only to "bucket-shop'
Its trades occasionally, but also to hypoth-
ecate collaterals which had been deposited
by customers as security for the payment
OF notes given to cover margins. +
When asked by Attorney George D. Rey-
nolds when he first knew that the firm
was unable to continue In business. Mr..
Gaylord said: Two or three years ago"
When asked how the firm had managed &c
DO business since that time he said: After
our capital had been absorbed we did bust.
ness on the money deposited by our Gus
toners for margins"
The cause Of the failure, he said. was
the calling Of the New York brokers for
more margins. and the drawing on the firm
Tor profits by customers. He said that the
firm was unable TO get customers to re-
spond to calls for additional margins. but
when asked to name some Of these custom
ers. said that he could not give the name
OF q single customer who was behind in his
margins
In Doubt About Amount Lost.
Mr.. Gaylord said that all Of the deals In
new York and Chicago were In the name O,
tne nrm. but under cross-auestiouing ad-
mieted that the call for margins from New
Ioik eroxers was principally on account OF
mort Sal"s which were made by the firm
ne couio not tell what money and secure
ues placed IN New York By the firm were
wiped out by customers losses and how
much by the 6Ym'a losaas
Attorney Reynolds then endeavored Ia
snow what had become Of the missina
stockS and bonds. and conducted his In.
curry on this line, but Mr.. Gaylord's men,
DRY proved very detective. The witness
said that he did not know how many Sc.
cufltes or the firms customers had been
absorbed by the losses In New York. anf
mad never tried to find out.
DO you not know" said Mr.. REYNOLDS
hat bonds OF the face value Of SIS, 75O AND
the Arm to New York brokers. received h.
them. and sent back to you. are mot &C.
cegI.ed for by your booksT'
Gaylord.
The witness said that he did not know
tnat the statements Of these transaction.
had disappeared. and that he did not know
what had been turned over to the receiver
except the securities in the safe deposl
boxes and money in bank. When aske,
II n regard n to sales Of securities to tn
II
Companies In the month Of March. Jus
prior to the failure. Mr.. Gaylord said tina
| Mr.. Blessing, his partner. and Mr.. Billion
l the firms street man. attended to thos
| sales.
Fails to Remember T4ansactions.
The witness was asked in regard to tn
payment OF $7,0UO to NeWsHork broke
March .. but remembered nothing in regar,
l to the transaction. When asked in re2ar,
l to the payment of $4,000 to the Continenta
National Bank on the morning Of the a.
l alignment, and the turning over OF 800 share
| OF Laciede Gas stock to the bank, Mr.. Gay
| lords memory was also bad
| When asked II a customer, . Mr.. Woods
had not deposited thirty ahares Of Banl
I Of Commerce stock as security for his not
for N.1Oo. Mr.. Gaylord said yes" an
when asked II these securities had no
afterward been deposited with the Ameri
can Exchange Bank as collateral for a LOAF
Of $500, Mr.. Gaylord said that such Nigh
be the case. as 1t was the practice OF In
| hrm to detach securities from the oriSina
notes, and rehypothecate them, but II III
Woods, who deposited the stock, had Gale
for it before the failure he would hav
l received IL.
| Fictitious Names on Books.
In reply to question rs to how man
names Of fictitious PERSON. were carrie
| on the books. Mr.. Gaylord said. :Only tw
that I know Of" When asked II the fri
executed all orders for atock that wei
given Mr.. Gaylord said, mo. there WEI
times when we were oressed for margi-