Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-05-07
TO PATTI VENTURE.
Dr.. Woodend of New York Ascribes
His Failure.

Friday before Commissioner Hitcbooc,,
as special examiner, under an order.
granted by Judge Holt of The J-ni+a3
states district court. Neither DR.. nor
Mrs. Woodend was present. After 4
lengthy examination Mortimer H. Wig
ger, vice president OF the Consolidated
Stock exchange, was requested to an
pear before the examiner next ;Mopa, =,
with sheets of the exchange sbovin..
all stock transactions for the mast ca
days. Louis j. Bruck, who was manac-
ing clerk for Woodend up to April !
said the firms troubles began spbee-
quent to February last with pre..
decreas" IN the volume of business. The
declining market, he said, had much t ,
10 with the decrease
Or. Woodeld. after SurrenGiny him
self said: Il can truthfully say that I
aln without one dollar to my name il
the wcrld. Mrs. Woodend's small estate
is, unfortunately, affected also. h,:t
thank God. l am still young and have
my health"
Whcn asked the pointed question
whether or not his firm had conducted
a bucket shop" the Observation-Disclosures.
er's voice for the first time was raised
above its normal pitch as he forcibly
replied:
Il have never been called before q
commute Of the Consolidated exchange
on any charge and have been doing
business there for more than three.
years, and have been investigated bv
them time ana time again. They have
what we call smelling committees,' ont
I,sIc Al
found To have been honest and lagiti-
mate.
There had been 4 falling mark {
prior to Il rising one. and business had
decreased in volume. Mr. Corey and
Mr.. randolph will testify that my
firms transactions have always been
hon. st with them as brokers. Our books
have been examined, and without cx-
ceptiOn there. hes II, yer been amy irreg-
ularity found i'll our business. We have
never been called before a COMMITTEES
officially. The Consolidated exchange
would not let a house go on 'bucleting.'
and l have always been looked upon is
running q clean house L am glad TO
have IN opportunity Of anSW ering this
question"
III. w Sttlu tHdt' ilts ltll lHiS
city, last Thursday, at noon. driving
away in one OF his own carriages and
going to the West 42d street ferry
where he boarded an Ontario & West
ern train for Napanoch. n. ", a small
place in the neighborhood of Ellenville.
He had been there on the place of his
brOtherin-law James Watson Howard,
who has a shooting preserve at Ma
panOch.
MY business affairs had become
Complicated,' DIR. Woodend said. land
felt / needed rest. | went away by
the advice Of my physician, my family
and some of my friends. l had been
through n tremendous financial strain
for three or four months.
4 acted in good faith up to the very
last moment and for the interests of
my creditor" DR.. WOodend continued.
What was the chief cause of the col
lapse? The beginning of the trouble
Was the Patti tour. | went into that
through sentiment and lost $4,000. [
deposited a check for SAC, Co0 900 OF my
own money with August Belmont 4,
CO.. last September or October. which
was cabed to the Rothchilds. | had the
money then and Robert Grau was a
customer of my house and seemed to
have an opportunity to pull Off Il good
money-making scheme.
Il considered Robert Grau rs the le-
ultimate successor of his brother, and
felt that | could do him a good turn.
The tour. as you know. was IA failure.
My competitors placed my loss ut 5000.
| 600 to $250.G00. and that injured my
| credit very materially. Later my cr-u-
itors began to crowd me.
There are certain details here that
| do not care to so into now. l knew,
| last "Wednesday, that it was Impossible
| to continue my business. as my people
did not make good with the money on
! the reorganization scheme they pro-
posed.
II could not get n written guarantee
| from them or any assurance that they
would get the money that WAS ncces-
sary. | was not able or willing to give
| my plant away. No. George Lynch
was not III the reorganization scheme
a all. ! won't say as to Edward l..
| Bradbury Of the Hadden-Eodee Co.
Charles w. Cannon. now with LonGey,
Hale q CO., came to my house with Il
proposition, but not at my request |
don't care to say whether there was
| any business connection with w. f..
Woodend q Co., and the Hadden-Rodee
| Co. ,-A
Il believe that my liabilities will not
amount to more than $200,000 and at
| one time l had capital of perhaps
| $500. O00"
Did you have an intimate knowl-
| edge of your business and the volume
| of business you were do1ng?"
"Oh, yes" DIR. Woodend replied. "of
| course l did. There We're naturally
some details of the business, bookkeep-
| ing. etc, that had to leave to my en-
| ployes. Yes, my ledgers We're Of the
| loose leaf kind, 50 that pages of ali
| transactions could be removed
1T is Mrs. Woodend who owns s2O.-
900 or one-ffth of the capital stock of
the Hadden-Rodee Co. If Bradbury
bought the stock and paid us a check
for it, as you say he claims is the case.
then he certainly has a good case
against me. My house had no bucket
shop connections. All my connections
were passed upon by the Consolidated
Exchange. including the connection