The New York herald., 1871-01-14
METHODISHCAL MSMAHACEMEIr.
Trial Of Rev. DR.. Lanahan by tho Book Com
mittse-second Days Proceedings Press
Admitted : The Charges Net and Do
nied-0pening Of the Prosecution.

Admitted Tho Charges Net and Do
nied-0pening Of the Prosecution.
The Methodist Book Committee, afrer some dis
cusson yesterday resolved, by the following vote,
to admit duly accredited reporters from any daily
paper that should apply in writing:-
bingham O. AaitSy. n. Bsnnatsr Cyrus Brooks Leroy
HAysc k.nns Van clsvs James Erwin, F. Kennedy. B.
Dr. Woodruff moved to admit the public and TO
assign them all that portion or the room back of the
pillars. The Doctor repeatedly pressed mis- motion,
which was 0yerruled each time.
The rules Of procedure adopted on Thursday
were read and the prosecution and defence were
requested to name their counsel which they did re-
spectivey.
Under the rule usual IN court cases the prosecu-
iion through General Runyon, read the charges and
specifications one by one, and Judge Reynolds, for
the Defence read DR.: Lanahan's answers thereto
The first charge Of official msconduct and malfea-
sance contains eight specifications each Of which
the doctor puts in denial of certain parts and
general denial OF the first two; but admits
that after the article appeared In the times,
September a. 1862 he refused to unite in denial OF
said charges because he believed them to be true
ana could not deny it. The firm Of Brown Brothers
& Co. were entered on the books OF the concern as
defauters to the extent OF SIC, GOT 07, and know.
ing them TO be responsible men ne asked
one OF the firm how they came to
stand in that relation He also reafirmed
his statement tnat the AFFAIRS of the concern were
chaos" because he believed and still believes the
same to be strictly true, and they were not ain good
order' at the time he made this charge. And he
holds himself responsible and ready to prove that
THE SYSTEM OF BOOKKEEPING ADOPTED
by said Book Concern is an inferior system, incom-
pete and unsatisfactory and that the books as kept
contain erasures substtutions and changes highly
improper, and such as would not be allowed by any
respectable commercial house; that the prohtso
the Concern have been computed upon a fictitious
basis; that the inventories OF the property have
been increased and diminished arbitrarily TO suit the
necessities OF particular emergencies; that great
discrepancies have existed between the printed ex-
hbts furnished 10 the Church and the books or said
Concern, such printed exhibits In some Instances
showing profit when the books show'there was no
profit but an actual loss; that errors have been I'M
properly corrected and that some still remain In the
accounts uncorected; that the capital stock OF the
Concern Is not what II Is represented TO be upon the
books Of said Concern: that
IMPROPER ENTRIES
have been made in said books, whereby great and
important transactions have been rendered unintel-
liglble; that many Important safeguards are sys-
tenatically negected-as result OF which wide
margin Tor frauds and errors exists, important
information is difficult or impossible 20 be accu.
rate.y eobtaued; that SAID books OF accounts do
q
said Concern, nor can correct statement Of its
assets be made upon the basis OF the Information
fnrnsned by the said books and inventories. The
Doctor also substantiates his OF frauds by
the following ltemS:-
In the SINGLE item of leather more than So. 600
worth was purchased during a period or twenty
months, over and above what has been used which
has never been accounted for.
chases was allowed ana practlsed, whereby a man
having no legitimate connection with the Book
Concern controlled the purchases to his own profit
In the item OF wages proof or more than two
hundred instances exists where less amount was
paid to operatives than was or should have been
paid TO them, or than was or should have been
drawn for such payments, and less than was re-
turned to the bookKeeper as having been paid to
He denies that he evinced spirit of hostility to-
WARD DR.. Carleton or raised
PETTY AND DIsGRAcEFUL OBJECTIONS
to the conduct OF the business OF the Concern: but
he did seek reform In the management, and did
object to the manner IN which an item OF $50 900
charged to profit and loss was entered upon the
books: but not from the motives alleged in said spe-
clfcation !, but for the following reasons:-
1. Because the entry shows that Grown Brothers
co. are indebted to the Book Concern for the said
amount, which Is not trne
2. Becau.e the books did not disclose who the
true debtor was.
g. Because notes had been given for said indebt
edneSS by the real debtor but such notes were not
entered upon the books nor did 1t appear thererom
that any notes had been given on account OF such
4. Because 81, 300 had been paid on one OF said
notes, but no entry OF such payment was made on
counted for on the books of the concern
For that reason he considered said entry and oms-
siOnS "mofe than improper
IL IS also true that the said principal agent has not
co.0perated with him in the examination OF certain
transactions and matters OF the said concern after
circumstances had shown to his satisfaction that
they were
IRREGULAR AND SUSPICIOUS,
and probably fraudulent. DR.. T.. did engage an
expert 10 assist him in examining the WAGES ac
conts but II was done IN the interest OF the concern
and not secretly His Baltimore speech, he says,
IyaQ not
The second charge OF neglect OF official duty Is
also denied, and the Doctor adds that IN regard to
the issuance OF bonds, they were negotiated faster
than was necessary, and large sum of money was
thus accumulated, upon which the concern were
paying interest, but which they could not legti-
Tne third charge of untruthfulness irascibility,
slandefous disposition, &C., Is denied, and the facts
above mentioned are reasserted, and the language
used by the Doctor at various times in regard TO
these charges Is admitted and repeated
The fourth charge OF INSTRUMENTATION is also
Denied and the accused asserts that while he aimed
treat the Book Committee with respect his course
dictated by due regard to The interests or the
Church, the Book Concern and the truth.
The fifth charge refers TO want OF qualifications
and capacity Tor me proper discharge or his official
duties as assistant book agent, and Sets forth hala-
dozen specifications, wnicn denied save as to
that of incompetence which he does not answer
An additional charge or incompetency in regard
to selling
Lot OF GOOD STOCK AS WASTE MATTER
is answered by throwing the responsibility over on
the principal agent, DR.. Carleton and saying that
lie Value OF tlS ueau STOCK is grossly exaggerated.
request was then made by defendants counsel
for leave to examine the stenographIc reports at
length and also the report or the subcommittee
which granted.
The Bishops then presented the following paper
TO show their relation TO the as it now stood
To TIE BOOK COMMITTEE OF THE METHoDrsr EPISCOPAL
CHURCH.
DEAR BEoTnERs-1n our relations to the Book Commit
tee we desire to act on all questions with the frank
ana courtesy Heretofore consulted
by body as to the questions inyestea
ton or this we do not complain, but point
has now been reached when courtesy the committee as
well as due regard to our own responsibilities IN the pre-
l. In meeting with the ntee at their reauest 10 act
concureny with them In this invesiga ion,
understood as sharing In any the
sponshy d Of sSeyng or entertaining charges against
been Yet these charges been received or enter
tanned by the committee, consider 10 he duty TO pro-
coed with them in the investigation. ~ -
We cannot act as authority In nvesti
gation except as to the Official conduct Of editor
agent
The agents and the editors, n travelling preachers
amenabc for their m conduct O the