The New York herald., 1871-06-27

rectly BY the Concern. but always BY the manufsc.
turers, and the prices paid by the concern lor
paper were a. low or lower than paid by other
houses In the city. In regard 70 the discIepancies
so, .e ledger anu ,Se that r. has DUNG
the enure period OF the existence OF tne BOON Coh-
Germ, both here and Al the West been me pracnce
tain sum from the debts due the Concern consist.
ing OF accounts and notes. .'for PROBABLE losses"
Ii is not the purpose here either TO defend or to con-
demn this praclIce-a practice which has the sane
tion OF the successive Book Committees and OF the
General Conference, and OF preceding book agents.
some OF whom have been elevated TO the episcopal
onice-bnt SIMPLY TO state iact which furnishes an
easy
In the very nature OF tae case the "exnibits"
having an important item discounted so heavily
not supposed TO be IN exact harmony'' herewith
for The reason stated. Bearing In mind this I'm.
porant TACT, the discrepancies which are SO laoor-
ousy brought TO view are readily and satisfactorily
The discrepancies OF two OF the years named,
however, may require further reference. First,
that OF 1885, The ledger shows loss the busl-
ness Of that year caused by charging out to profit
and loss account large amount OF doubtful debts
whics 1t became apparent might not be collected,
ana which, therefore, ought not any longer to
be counted among the assets OF the Concern. The
agents preferred to show a loss rather than to
reckon what was not certainly good and thereby
show gam. But, according 10 the printed exhibit
Of that year, s., s21 81 was added TO the capital
stock" The explanation Is, inadvertently an Item
OF $4627 As was included twice in the assets other
discovered too late for correction in the
exhibit bui note was made In the balance book az
the Time Ol discovery, where IL may now be seen.
The addition OF 'fteen per centum. or "S19.70s SO
in the aggregate" was made only TO certain class
OF merchandise. and this addition 6ld not bring II
above its actual value.
Second, as TO the inventory Of 1867 the item of
s54,a12 II, which 'was deducted from capital for
correction OF errors,'N " did not enter into the
account OF proats lnat year uSo7l, Tor the same
amount was deducted from the inventory. The
supposed error was brought 10 the noiice OF the
agents by the present bookkeeper. and alter discus
sion corrected as above In 1868 DR.. Lanaian
apprised OF all the facts IN tins case by the present
The entry s1el ea1 as the bindery inventory for
1864 was correct according TO the nrst rendering
Alter the boOas had been closed for the year the
agents decided TO reduce the valuation and the
accountant made the credit emery OF So a2 49, as in
his judgment being the proper manner OF executing
the order. The binder adapted his inventory
To the new order aud the effect OF this change
upon the previous entries was stated by Dr.. Lana
han, out does not follow that the first entry was
"iase one. The design Of the agents In this change
valuation wnlle the country was passing through
period OF financial fluctuations consequent upon the
war. The probabilities were that we would soon be
house would be ustined in calling itself worth what
its ledger stated If the assets were put In upon a
basis furnished by an inflated market The reduc-
tion OF fifteen per cent IN the inventory Of 1868 was
agreed upon by ana between the agents, and the
entry on the ledger could have been other than
it Is aud express the facts. II Dr. Lanahan had
taken note Of The inventories OF the periodical Office
and OF the EDITORS library mis- figures would have
harmonlzed perfectly with the ledger entry. The
ARBITRARY INCREASE OF THE INVENTORY
for 1869 s accounted for in TINS wise:-The mcrchan
disc at New ork mad been for some count led
q lower standard oi value than that aG Cincinnati.
The last General Conference brought both Concerns
under the supervision or one committee; and, as
consolidated eXhibiti must be made, 1t became
matter OF necessity to adopt the same standard OF
subject with Dr. Lanaaan printed statements were
prepared showing the results both upon the Old and
The new. standard OF valuation. These statements
were submitted to the BOOK committee, and, upon
the cOmmittee's recommendation, the new standard
OF valuation was adopted. As result the sum Of
$dl,365 54 was added. The item OF sl1,49o
added TO the printing office inventory requires
special notice Mr.. Hasty superintendent or
the printing office Tor that year (appointed by Dr.
Lanahan Without consultation with Dr. Cartoon.
made request TO DR.. Lanahan to have this sum OF
$l14oo added 10 the valuation Of the presses, aeg
lug that they were undervalued In the inventory
wElch he had recently rendered Tor November 80,
1eo9 obtainlng consent of Dr. Lananan he next APP
piled to Or. Carlton, VINO assented. He then pre-
sented TO the bookkeeper the identical memorandum
hereto affixed, saying that the agents mad agreed to
ton Tor verlfcatlon OF Mr.. Hasty's statement and,
obtaining IL, made the addition IL Is not true that
ar aaHea ae a s9 tas
taken by Mr. Longking, Mr. Hasty's successor, ana
made up according to his own Judgment.
The discrepancies between the cash balances OF
the Concern and OF the bank are explained as per-
1eclly legitimate and growing out OF the nature Of
the business. All cash received. for Whatever pur-
pose goes with the common fund, ana the surplus
above what Is needed for daily use Is deposited IN
the bank 10 the credit OF the house. Books are kept
with he tract, sunday School aud Missionary SO
cietes, In which entered daily such as be-
long 10 them respectively Al the end or the month
The aggregate OF such receipts IS duly entered and
passed to Its proper place In the ledger. In addition
TO TINS, in the case OF the Missionary Society," the
Treasurer either receives or gives check Ior the
adjustment Of the monthly balance. This CHECK may
DoI be deposltel for several days.
The result OF the preceding facts will be to show
a larger comparative cash balance In bank when
the Missionary society mas a surplus, and on tho
other nand, 10 SHOW a smaller balance In the bank
when the Missionary Society Is borrower. During
the first four years OF the period quoted by DIR.
Lanahan the Missionary Society showed large sur.
plus Tor most Of the time, but was borrower dur
ing part OF the next two years.
THE INTEREST QUESTION
is disposed OF In this way-Frst, respectable bal
ance In the uank must always be Kept as an equva-
lent Tor benefits received In the way of collections
second we had not recovered from the depletion Of
the Concern, caused by paying the large amount
awarded the Church South IN It's suit against US,
and were owing for some money borrowed on that
account. Third, during the war were compelled
TO borrow money from time to time to enable us 10
conduct the business.
The following statement shows the Indebtedness
OF the Concern on notes for the six years named by
Dr. Lanaan:-
1853 the Concern owed on notes S16,999 20
1908 the concern owed on notes. el,74S 81
Ie65 the Concern owed S94Ol 10
1866 the Concern owed notes. S2,.13
1877 the Concern owed on notes. 24,l) %
1865 the Concern owed l2,s43 90
Average for six b3 U35 ID
The management which kept the excess of In
Lapanan enormously auotes Is submitted TO the al