The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-21
TRICKED IN BALDWIN
DEAL, SAYS SCHlFF
Tells Of Indignation When To-
connective Co. Sold Plant to
Drexcl Syndicate.
EXPECTED TO BE BUYER
Other Financiers Witnesses In
Robinson Suit for Foe
Of 100000.

Jacob Schiff Of Kuhn, Loeb 4 Co. de-
scribed his firm yesterday as the injured
party In the sale in 1911 OF the Baldwin
Locomotive Works to syndicate headed
by Drexel 4 Co. of Philadelphia and
White, Weld & Co OF New York Mr..
Sch,fY was testifying in the suit for be-
tween $500. 900 and 5000. 900 brought by
George H. Robinson, a broker. against
Alba d. johnson, president OF the Bald
win Locomotive Works
Mr.. Robinson alleges that he is en-
titled to a commission for the sale Of the
Baldwin Locomotive Works because he
got Mr.. Schiff to make an offer for the
purchase OF the plant on highly favorable
terms before the company sold the plant
- the syndicate.
Mr.. Schiff said lie was surprised and
indignant when he learned of the sale.
"In all our banking career" said Mr..
Schf. I'VE have never had another eX-
perience of that kind"
schiH Tells of Negotiations.
Mr.. Schiff described how In the spring
Of 1910 the negotiations with him were
opened by Mr.. Robinson. He said there
was "A distinct understanding when the
negotiations were opened that they were
not to be terminated without the mutual
consent Of both parties. Mr.. Schif said
his last offer was s25.00O.000 cash and
$1,000, 900 common stock in the reorgan-
ICED company.
He said that after Drexel 4 Co. and
White. Weld Il Co. had bought the loco
motive works his company participated in
tho deal to the extent OF one-eighth. or
$2.50O,O0O.
Were you willing TO take all of this
stock asked John q. Milburn for the
defence.
"All, or any of It. upon the same terms
agreed to by the other members OF III.
syndicate" said MIR. Schlf.
When the negotiations were first begun
ne said. Mr. johnson was unable to prov,
to his satisfaction that the company had
earned an average OF 10 per cent fol-
the past ten years and the negotiations
were then terminated. Mr.. Schiff's first
offer was withdrawn, with the under.
standing. he said. that II the company
again tried TO fnd a purchaser on differ.
ent terms Mr.. Schif was to be notified.
He said that he secured a loan O
100000 on bond issue OF the Bald
win company and that this money tides
the company over until April. l9l Then
Mr. Schin said. he heard rumors that tn
company WAS again planning to sell out
Says johnson sent Assurance.
Mr. Robinson called upon him at tina
time. he said. and informed him that Mr.
johnson had sent him to assure Mr.
Schiff that he still had the first opportu
nifty to buy the company. Then the fnan
cier described conference at which MI
johnson produced blue slip OF pape
which guaranteed Mr. Robinson In cas-
the negotiations were successful.
Thomas w. Lamont Of ]. +. Morgan
Co invited his firm TO participate In tn
syndicate, Mr.. SchifY said. and he adde
that the friendliest relations existed be
tween his firm and j. u. Morgan 4 &C
and that they frequently gave each othe
advice on business matters.
Mr.. Schiff said that Mr.. Johnson wa
20 anxious that Kuhn. Loeb Co. shoul
be satisfied that he contributed S3s0,oo
worth Of his own stock to make the shar
OF Mr.. Schiff's Arm equal to the share
of the otner participating firms,
Roland l.. Taylor. who was at the tim
OF the sale president of the Philadelph!
Trust Company. which was executor fc
the Converse estate. a large stockholde
said he remembered little of the deal @,
cept that he represented the Converse e'
tate and received sAQ0o.00o cash an
$4,000, 900 common stock in the reorgai
lied company for the estates shares,
William l.. Austin, chairman OF Il
board OF directors of the Baldwin con
pany. said he received 100000 in cas-
for his holdings and 1890 shares OF Il
reorganized compasy. He was in EuroI
during most OF the time that the negoti,
tons were being carried on. and col
seauently was not familiar with the d
tails. He gave his power OF attorney
Mr.. Johnson before he went, and the r
suit was satisfactory. He said he d
not know whether any special Undue
ments had been made to Kuhn. Loeb
Co. to participate in the syndicate.
Arthur Il. Ncwbo,d of Drexel c
and Thomas W. Lamont also testified