The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1901-07-20
Telegrapher Payne, Who Worked
for Gaylord, Blessing & Co.,
Surprised at Failure.
RECEIVED MONEY ON LAST DAY.
Orders Sent Only After Approval
by Members of the Firm
Testimony in Bankrupt
cy Case Is Closed.

the feature of yesterdays proceedings In
the taking of dispositions in the Gaylord,
blessing & Co. bankruptcy case before
Referee Coles was the testimony of Samuel
g. Payne. former telegraph operator and
business solicitor for the bankrupt firm.
MIR. Payne told a realistic story Of his
connection with Gaylord. Blessing & Co. and
especially of the happenings on March II.
1901. the day the firm assigned. He said:
Il usually finished my days work at the
Office about o'clock. On March II. 1901
went from my work to a billiard-room on
Broadway. where 1 was in the habit OF
playing. About o'clock the Office boy
came UP there and told me was wanted at.
the office. I went at once. Guy P. Billion
was there. He took me into the private Of
nee and handed me more than 81 400. l
think 1t was fourteen hundred and some
thirty odd dollars. l said to him: What
Is this for. Guy?' and he replied:
his is dividends on some old mining
deals
Il was not satisfied with the statement.
His manner of making 1t caused me to
make e; further inquiry, when he said:
haven't you. SAM
Yes. 1 have more than 81 600 due me in
salary. commissions and profits, l replied.
Well. here's over M,4oO Of 1t. The fact
IS, Sam he explained, the firm has con-
Guided to make an assignment at o'clock
to-day. The old gentleman (meaning Mr.
Gaylord thinks you ought to have your
savings"
Had you any idea or had you previously
received information indicating that the
firm was In an insolvent condition. asked
Mr.. Reynolds.
No Suspicion of FIRMS Condition.
Never. 1 had not the slightest suspicion
OF the true condition of the firms affairs:
! was of the opinion, that l was employed
by one of the strongest firms, financially.
in St. Louis, and was never more surprised
in my life than when Guy Billion told me
Of the proposed assignment. was simply
thunderstruck and could not realize the full
The Republic came down to see some MEM
Der of the firm and told me the papers had
been fled Neither Cir. Gaylord nor Mr..
Blessing was there that evening"
Payncs evidence was quite surprise for
the auditors. who had listened to Gaylord.
blessing, MacCabe and Billion regarding the
the Arm had. with the exception of rare
intervals. been insolvent for years, and yet
this Information was never allowed to
reach Payne, who transmitted all Of the
firms Geographic orders and received all
Of its wire instructions. Payne added:
why, used the firm treasury as would
bank. II 1 had for moment thought
allowed my savings to lie on deposit there"
Explaining his duties, Payne said:
Il received orders from members Of the
them thus, until a few months before the
failure. when was told TO send no orders
until they We're approved in the office. Up
to that time l had been working the Ray
mond, Pynchon & Co. wire. Then the Fin
ley. Banel & Co. wire was added. and
was !! Instructed which wire to send orders
And you had no doubt of the firms SOL
Not the slightest
Had you ever examined the hooks?"
never saw the books i had no
thority to look into them
did you ever see the monthly statements
OF Of, Raymond B1ns Pyne mel on & Co. sent to Gay
Il never did. They came by mall and l
had nothing to do with them
What commissions were you paid?
when ] would get customer for the
firm I received credit for a small commits
sion on the amount of business the cus-
toner transacted with the firm"
And you had transactions on your own
account"
Firm Sold Corn without Orders.
Yes. sir Before the firm failed It sold
out 10000 bushels of corn without authority
from me. That was during the Phillips
1t would have made me $780,"
GAYLORD. Blessing & Co. other than a., what
Il did not. They still owe me about $500
that never expect to get
Bookkeeper H. l.. MacCabe and Guy P.
knew nothing about the Raymond, Pyn-
chon Co. monthly statements. and SO did
MacCabe The latter said that all Of the
records in the vault had been turned over
at the time of the failure.
Didn't you make the statement" asked
Mr.. Reynolds. that those statements were
Destroyer"
Yes. cir: 1 did"
"Who destroyed them7'
when they were checked up they were
usually carried out by the porter and de-
| stvoyed.''
MacCabe said he had never told anybody
that Sam Payne was making $500 a month.
The only information he had Of what
Payne's income amounted to was shown
by the books. These were referred to and
it was shown that Payne's salary was
commissions and profits on trades.
Here Mr.. Reynolds announced that he had
finished. and the hearing was ended. Asked
what would be the outcome of 1t all. Mr..
Reynolds said:
II haven't got to that yet. What I'm try
ing to do now is to recover some OF my
clients money and property. cannot tell
you what the end will be-