New-York tribune., 1908-02-18
RISK 0; PROFIT s126,OOO.
BIG "STR.4W" BID WINS.
Boston Brothers Make Good Check.
for City Bonds-Metz,s Protest.
IBy Telegraph TO The Tribune. ]

TBy Telegraph The Tribune
Boston. Feb. 17.-Charles A Baldwin and "
= Baldwin. brothers. of this city have made
Just sI2sooo. according TO all indications. bv
their bid on over s4.0oo.0oo worth of the recent
issue OF New York City bonds at 1o4 when they
cid not have dollar 10 buy them
With The bid they sent a check for s1ss ooo
guaranteed by the Massachusetts, Loan and
Guarantee Company, when. as one of the broth
eTs said tonight; We didn't know how we
could raise $40 If we had TO" But before the
check reached here New York bond house
offered them 1o7 for their allotment With this
o-er there was trouble in arranging with a
hank TO take care OF their check to-day. To-
night " A Baldwin said they would accept the
cffer Of the New York firm BY this they make
:ust S1csooo.
The Baldwin's bid was presented by Stephen
= Tingley and A E. Reid signing themselves As
trustees.
The Massachusetts Loan and Guarantee Com
pany was incorporated two years ago. with a.
capital OF $4,000, and deals in bonds and stocks.
Charles A Baldwin is the treasurer and gem
eral manager Of the Massachusetts, Loan and
Guarantee Company, and he and his brother are
Is far as known here, the only men interested
II The concern. Charles a Baldwin has a long
ana interesting record as a bucket shop and dis
cretionary pool operator in various cities.
About fifteen years ago he interested in a
large wire and mail order bucket shop in State
street. Boston, which failed some time between
1885 and 1897 Following this mishap Baldwin
went 10 Texas. but by 1899 was in this city,
where he opened bucket shop in Wall street
under the style Of Charles A Baldwin & Co.
This enterprise seems 10 have been shortlived.
and soon after its disappearance Baldwin fig
ured in F a Rogers & Co. a discretionary pool
house, which operated q wire service TO many
Long Island towns. This concern failed one
morning TO open its doors.
The next heard Of Baldwin was in Boston,
where he figured in the firm OF Lewis. Herr &
Co. IN the same line OF business This concern
also vanished between night and morning Then
came the Ajax Realty Company. which opened
an office at No. - Broadway. New York, for
operating in real estate the discretionary
POOL Plan. Baldwin was arrested because of his
connection with this scheme.
He also had a part in the concern which
started in 1901 as Verrnilye & Co, duplicating
the name Of one Of the Oldest banking houses OF
this city. but which speedily forced to change
is title 10 W r. VerTnilye & Co, ". R. Yer
r-ilye being the son OF the late Colonel vermilye.
founder OF the old house The ". R. Terriye
concern q few months later was raded as an
alleged bucketshop-
II January, 1905 Baldwin was arrested in
xvii action and lodged in the Ludlow street jail
While he was out the jail limits he was
uEain arrested. this time in March of the
year. the complainant against him being James
:. McFadden, OF Buffalo. In 1902 Baldwin had
-un cotton brokerage concern in Buffalo, and
McFadden had been one Of the losers by his
operations.
Controller Metz said yesterday that 10 protect
The city against '-shoestring' and straw" bids
fo- bonds he would try 10 have the charter
amended so that any one bidding for bonds
would have 20 send q certified check. drawn
either on q New York bank or on one which
clears through the New York Clearing House.
II bidder under the present law" said the
Controller at the tine when ask him TO
take over the bonds comes up with the cash we
must give him the bonds. but even at that there
IS room for straw bidder TO put in bid with
z check certified by a trust company with an IN
significant capital, and If the market price Tor
The bonds the day after the award is two or
three points higher than the straw bid the
bidder can make quick turn and make a lot
of money with comparatively little capital TO
work or
Before NJ Nets announcement was made
r1etirjor looking for an amendment to that part
q the city charter governing proposals for
bonds Was circulated in Wall Street, 10 be pre-
sented 10 MI Metz.
The object OF the proposed change is to elm
frsre from future awards Of city bonds plds
which the bankers who arc circulating the petl-
-ion say are not made il good faith or backed
b. substantial guarantee
The s,eciAc incident of this kind mentioned
vas the bid Of q certain promoter on the bond
issue Of last September, offering the necessary
certified check Of . per cent Of the bid on a
surety company which he controlled The law
q present requires q deposit Of certified check
On any solvent banking corporation.
The change suggested by the several invest
rnsn1 concerns that have signed the pedtIoH IL
Controller Metz is 70 require cheek upon a
--rs- con7narv or state bank incorporated IN
this state or upon a national bank
Controller Metz had informed the Massachu-
sets concern last week that he would Ike TO
have its check made good by not later than yes
terday A dispatch from Boston yesterday sald
trat the check was honored by the National
ShawE1ut Bank