Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-01-14
Our New York Dispatches.
The Committee on DIR. Lanaban's Case
Decide TO admit Reporters TO tie Exnmi-
nntiOn-Dr. 4 -nRhRn makes an Answer
20 the Charges and Observation-Disclosures
his Answer his Received, etc.

IL. moore, OF the ILLINOIS conference being the
only absent member of the committee, and after
further discussion, finally decided to admit re-
portcrs, requiring them, however, to present
formal credentials from the papers which they
represent. Rev. DR.. Lanahau's answer to the
charges and specifications against him was then
read. To charge first, of official misconduct and
malteasance, specifications one, two and seven,
Dr. Lanahun enters a simple and positive de-
NAL His answers to the other specifications in
this charge are in full as follows: "Specifica.
ton three-l deny the allegations contained in
the specification, as the rein set forth. 1t is true
however, that, after the appearance OF the arti-
Gle in the New York Times, | refused to unite in
the denial Of any trauas or corruption in the
book concern, but such refusal was not wilml
on my part. There had been frauds aud cor
ruption in the management of the business OF
said book concern, on the part of some of its
employees, and could not, truthfully, deny it.
Specification four-I deny that |, at any time,
represented to one of the firm of Brown
Brothers Co.. that said firm was published as
defaulters, on the books Of the Methodist book
concern.
1t does, however appear from the ledger of
said book concern that Brown Brothers & Co.
were indebted to the concern in the sum of $40,
COZ for moneys deposited, and the Indebtedness
had been charged rs an uncollected demand to
the profit and loss account. Knowing the house
of Brown Brothers & Co. to be of highest respon-
sibility and standing, am unable to understand
why such an entry should have been made, and
| took occasion to ask one of the firm in regard
to the transaction.
Specification ive-I am charged, in specifca-
ton five, with having stated that the affairs OF
said book concern were in chaos. have made
such statement, and believe the same to be
strictly true, and deny so much of said speciti-
cation five as charges that said affairs were in
good order at the time, and no more; and, as
evidence OF the chaotic condition of said affairs,
| bpl M IL,
prove that the system of bookkeeping adopted
by the book concern is an inferior SYSTEM in
complete, and unsatisfactory, and that the
books, as kept contain eraSures, Substitutions
and changes highly improper, and such as would
not be allowed by any respectable commercial
house; that the profits of the concern have been
computed upon fictitious basis; that invento-
ries OF property have been increased and dimin-
ished arbitrarily, to suit the necessities of par
ticuar emergencies; that great discrepancies
have existed between printed exhibits furnished
10 the church and the books of said concern,
such printed exhibits in some instances showing
profits when the books show that there were no
profits, but actual loss; that errors have been
improperly corrected, and still remain in the ac-
counts unCoTected; that the capital stock of the
concern is not what it is represented to be on
the books of the concern; that improper entries
have been made in said books, whereby great
and important transactions have been rem
dered uninteiligible; that many important safe
guards have been Systematically neglected,
as Il result of which wide margin for
frauds and errors exists, and important Informal
ton is difficult or impossible TO be accurately
obtained; said books of account do not show the
real condition of the affairs of the concern nor
can correct statement of its assets or condi-
ton be made upon the basis Of information fur
nished by said books and inventories.
Specification ski deny the allegations con-
tanned in specification six, as the same therein
set forth. 1t is true, however, that frauds, cor
ruption and mismanagement have existed in
said book concern, resulting in large losses and
did not deny, or attempt TO conceal, the fact.
In the single item of leather, more than $4,000
worth was purchased during the period of
twenty months, over and above what has been
used, which never has been accounted for. In
the item OF paper, system of making pur-
chases was allowed and practiced, whereby a
man having no legitimate connection with the
book colsaern controlled the purchases
to his own profit, and to the loss
and discredit Of the concern. In the item of
wages, there is proof that more than two hum
dred instances exist where a less amount is paid
paid to them, or than was or should have been
drawn for such payments, and less than was re-
turned to the book keeper rs having been paid
to such operatives.
Specification eight deny that have evinced
a spirit of hostility towards the principal book
agent, or disposition not TO cooperate with
him in an orderly and proper management of
the affairs of the book concern, as charged upon
me in specification eight; and as to the particu-
lar matter set forth in said specification, in that
behalf, | deny them as set forth. 1t is true
however, that have made objections to mat
tiers connected with the business and book keep
ing of said concern, but not petty nor dis
creditable" objections. | think the system
of keeping the books should be changed,
and various matters connected with the bust
ness have not commended themselves to
my judgment; and have stated my objections
to the principal agent for the purpose of in
ducng a reform. | did object to the manner i'm
which an item OF $4,000, charged to profit and
loss, was entered upon the books, but not from
the motives alleged in said specification eight
but for the following reasons First because the
entry shows that Brown Brothers & Co. are in
debted to the book concern for said amount
which is not true second, because the books did
not disclose who the true debtor was; third, be-
cause notes had been given for said Indebtedness
by the real debtor, but such notes were not en-
tered upon the books, nor did it appear there
from that any notes had been given on account
of said Indebtedness; fourth, because $1,000 had
been paid on one of said notes, but no entry of
such payment was made ON the books, nor was
the money so collected accounted for on the
hooks of the concern.
For these reasons ! considered said entry an d
omissions more than improper. 1t is also true
that the principal agent had not co-operated
with me in the examination of certain transac-
tons and matters of said concern, after circum-
stances had shown to my satisfaction that they
were irregular and suspicious and probably
fraudulent. l did engage person to assist me
in examining the wages accounts, who was
more an expert in such matters than was, but
ii was done in the interest of the concern and
not secretly. My Baltimore speech was not un-
truthful. The general statements of this speci-
fication, which are not already answered,
deny"
DR.. Lanahan denies all three allegations
of charge second, of "neglect of official
duty" adding that the bonds were nego-
tiated faster than necessary, and large sum of
money thus accumulated, on which the concern
is paying interest, but which they could not
use. To charge third, of "untruthfulness,
slanderOus disposition, and other
characteristics which unfit him
for the position of assistant agent" DIR. Lana
han replies that he did make the alleged charge
of conspiracy, and then believed, and still be-
lieves, it true, and that he has made the other
assertions alleged, but denies that they are
"slanderous or untruthful." He also SAYS be
believes his charges against Mr. A. Goodenough
true and capable ofiproOf.
DIR. Lanahan also denies entirely, charges
fourth and fifth, of "inSubOrdinatiOn to SUI
periors and violation of his pledges to them, and
Of want of proper qualifications and capacity
for the position" though declining to make an
swers to two of the specifications of the latter
charges, until proof Of the alleged incompetence
has been furnished. A similar denial to supple
mental charge of incompetency is also entered,
together with brief statement of facts in re-
gard to the disposal of large amount of dead
stock and its value, which the concern had ac-
,umulated.
After reading the answer of DIR. Lanahan,
from Bishops Ames, Scott,
Jones and Simp on, was presented, in
which they state that, in meeting
with the committee, they must not be
as sharing, in any degree, or
% any extent, the responsibility of entertaining
IL driving the char. against an editor or agent
hat they cannot act us concurrent authority in
my investigation except rs to the official con-
luct of editors or agents who are amenable to
he same authority-presiding elders-as other
ministers of the church; that third parties can
not be allowed to prefer charges of Islander, and
hat they do not deem it proper for them to con-
slider general fitness or unttness for office of any
nan appointed by the general conference as ed.
tor or agent, unless such alleged unftneSs has
occurred since his election.
Discussion then ensued between the members
If the committee, as to the scope which the in
should be allowed to take, Rev. DIR.
Slicer stating that the prosecution knew that
hey were wrong and DIR. Lanahan was innocent.
md, with others, taking the ground that the ex.
animation should be confined solely to the ques-