New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-09-22
THE DEFALCATIoN AT THE METHODIST BOOK



For so many years the Methodist Book Con-
eern has enjoyed high reputation that all yester
day startled TO hear that defalcaons had been com
mtted by Of the managers OF that vast establish
ent Founded as missionary enterprise, and conducted
by cergymen for long series of years for the prOpasa
ton Of Methodist beliefs IL had been long removed from
the careful scrutiny which aymen give to business under
their charge and the existing mafeasance directly the
result carelessness The Book Concern was
founded in 1883, small borrowed capital increasing
from year TO year amount Of business but not IN suc
cessu pecuniary results until 1924 The credit and com
mission business then abolished the sales extended
blndery added and It's routine has been nterered with
only by the division OF the Methodist Church in 1884,
the secession Of 1860 The business amounted
in the year 1863 the date of the last report 20 the
Church at large s694OO0 and the profits to 100000
All this has been carried upon the personal
faith Of the Conference in or two men not bred to
business accustomed the handling of large sums
These great varying from $780, 900 TO $o0O have
received and accounted for by the agents pract
saly without any supervisOn the only oversight pro
Vided consisted of committee OF fifteen, who were
charged by the General Conference with the superntend
OF the Book Concern and who exercised it By hold
ing meeting year Of twelve days DURATION and,
rs they were none business men, 1t can readily be
imagined how careful must be the scrutiny which they
could give.
For several months past the existence of defacatoDs
has been suspected and soon after the appointment OF
Dr. Lanahan as Agent in May last the suspicious were
reduced TO certainty. II appears that the managers
the printing and binding departments instead Of buy
ing the paper ink muslin leather and used in the
manufacture Of books directly from dealers
IN those articles have been in the habit OF
making their purchases through two intermedi-
AIRY parties and paying by this indirectly heavy
and unnecessary brokerage the purchasers obtained
from the dealers handsome commission everything
sold TO the This system adopted by drec
OF Agent the Rev James Porter and the brokers
who prOfted by ito the extent OF at least
EO,GOO a yeaT-were his two The Superin-
tendent OF the printing department, Mr.. Good
enough. was a man VINO stood high 10 tho
confidence of the church and Of the people, had held
many religious offices Of trust and epoumept, and was
at the time Treasurer of the Sunday Union Mr.
Hoffman was in charge Of the bockbndey. In binding
many articles used from that
easy to make handsome percentage the articles
bought. GOOdenough permitted 10 resign about
months ago. and Hoffman dropped about a month
ago
larger share blame must attach the Methodist
Church at large IL gross caTeessnCss 20 cOnde 10
wel-intentlOned clergyman the management Of large
secular business WITHOUT interest and without security
against loss. The Bible House is not thus conducted
any well managed publishing house. The
OF the agents examined only by single
tee who call In no pert precuded by lack OF time
from examining the books accounts ana vouchers and
have not sufficient acquaintance with bookkeeping and
the publishing trade render their opinion OF any value
The announcement OF the defalcation, whatever il
may be called has created great excitement among the
MethOdsts not only in the city but all the country
As there be disposition the Part OF
managers TO shield any OF the accused suspected
the Book Concern has been swlnded viii undoubtedly be
made at all early day.