The Portland daily press., 1871-01-14
NEW YORK.
THE METHODIST BOOK CONCERN 1NvEsrfGA A.
TON

NEW YORK.
THE METHODIST BOOK CONCERN 1NvEsrfGA-
NEW YORK, Jan. 13.-The Methodist Book
COMMITTEE to-day resumed the investigation IF
the charges against Rev. DR.. LaDahan, Rev.
U. ii. Moore of the Illinois Conference being
the only absent member OF the Committee, and
after further discussion decided to admit re-
porters, requiring them however, to present Gre
dentlals from the papers they represent. Rev.
". Lanahan's answer to the charges and spe-
Questions against him were then read. To
charge hrst, of official misconduct and malfea-
sance, specifications 1, 2 and Z, DR.. Lanahan
enters single and positive denial. His ans
Wers to tie other specifications in this charge
are IN full as follows :-Specifcato 81 deny
the allegations contained in the specification as
tney are therein set forth. 1t is true however,
t9at after the appearance of the article in the
n. \. Times, refused to write the denial of
any fraud and corruption i'm the Book Con-
cern, out such had been the fraud and corrup-
tion IN the management of the business that
could not truthfully deny it. Specification A.
l deny that at any time represented to one of
the nrm OF Brown Bros & Co., that said firm
were published as defaulters on the books of
the Methodist Book Concern. 1t does, howev-
er, appear from the ledger of said Book Con-
Germ that Brown Bros. & Co., were indebted
to the Concern in the sum of $20,6O7 for mon
les deposited, and the indebtedness had been
charged as an uncolleetable demand, to profit
and loss. Knowing the house of Brown Bros
q Co. to be of the highest responsibility and
standing, was unable to understand why such
an entry should have been made, and took oc-
caSiOn to ask one of the firm in regard to the
transaction. Specification 5:-In specification
slam charged with having stated that the af.
ialrs OF the Book Concern to be in chaos. I
nave made such statement and believe the same
to be strictly true, and deny so much of spe-
cifcation five as charges that such affairs were
In good condition at the time and no more; and
as evidence Of The chaotic condition of said af-
fairs, aver, and hold myself responsible, and
am ready to prove that the system OF book keep
ing adopted by the Book Concern is an inferior
system, incomplete and unsatisfactory, and the
BOOKS as Kept, contain erasures substitutions
and changes, highly improper and such as
Mou.u n1t oe allowed by any respectable COM
nerciai mouse; that the profits of the Concern
have been computed on fictitious basis; that
inventories OF property have been increased and
diminished arbitrarily to suit the necessities of
particular emergencies; that great Giscrepau-
cies nave existed between the printed exhibits
furnished to the church and the books of SAID
concern; such printed exhibits in some in
stances showing profit when the books of the
concern show there was no profit but
an actual loss; that errors have been improper
ly corrected aud still remain in accounts I'M
corrected; that the capital stock of the con-
Germ IS not what it is represented to be upon
the books OF the concern; that improper en-
tries have been made in said books, whereby
great and important transactions have heen
rendered unintelligible; that many important
Safeguards were Systematically neglected, as
the result of which a wide margin for frauds
and errors exist, and important information
difhcult or impossible to be accurately obtain
ed; that sad books OF account do not show the
real condition OF the affairs OF the Concern nor
can correct statement of its assets or copdi-
ton be made upon the basis of information fur
nished by said books and inventories.
Specification 6. deny that the allegations
conta' ned in specification as the same as are
therein set forth. 1t is true however that
frauds, corruption and msmanagement had
existed in said Book Concern, resulting in
large losses, and did not deny nor attempt to
conceal the fact that in the single item of
leather more than $25, 900 worth was purchas.
ed during the period OF twenty months over
and above what bad been used, which had !
never been accounted for. In the item OF pa
per, system of making purchases was allowed
and practced, whereby man having no legit-
innate connection with the Book Concern con-
trolled purchases to his own profit and to the
loss and disc edit of the Concern Ir the item
OF wages, proof in more than two hundred in
stances 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
returned to the bOOk-keeper as having been
paid to such operatives.
Specification 81 deny that have evinced
a spirit OF hostility towards the principal book
agent or disposition not to cooperate with
him "a the orderly and proper management of
the Book Concern as charged upon me in
specification 9, and as to the particular matter
set forth in SAID specification in that behalf
deny them as set FORTH 1t is true, however,
with the business and book keeping of said
Concern but not "petiy" nor discreditabla OBJ.
iections. I think the system of keeping the
books should be changed; and various matters
connected with the business of the Concern
have not commended themselves to nv iudg.
ment and I have stated my objections to the
principal agent for the purpose OF inducing
reform. did object to the manner in which
the item OF $4,000 charged to profit and loss
was entered upon the books, but not from mo-
following reasons: First, because the entry
shows that Brown Bros, & Co., were indebted
to the Book Concern for said amount, which is
not true. Sncond, because the books did not
disclose who the true debtor was. Third, be-
cause notes hOd been given for said indebted
ness by the real debtor but such notes " ere not
entered on the books nor did it appear there
from that any notes had been given on account
of said indebtedness. Forth, because $13 90
had been paid on one of said notes, but no en-
try OF said payment was made on the books
nor was the money so collected accounted for
on the books of the Concern. For these rea-
sons considered said entry and omissions
more than improper. 1t is slso true that the
principal agent has not cooperated with me in
the examination of certain tiaosactions and
matters of said Concern after circumstances
had shown to my satisfaction that they Were
irregular and suspicious and probably fradu-
lent. l did engage person to assist me in ex
aiming the wages accounts, who was more
expert in such matters than l was, but it was
done in the interest of the Concern and Sc
cretly. My Baltimore speech was not un-
truthful. General statementsn this specifca.
ton not orderly answered deny.
Or. Lanahan denies all three allegations of
charge second, of neglect of official duty, ads
ding that bonds were negotiated faster than
necessary and large sum of money thus ac-
cumuiated on which the Concern was paving
interest, but which they could not use.
10 chal ge third, of untruthfulness, irascibili-
ty, slanderous disposition and other objection
able characteristics which unfit him for the no.
siton OF assistant agent, DIR. Lanahan replied
that he did make the alleged charge of conspi-
racy, and then believed and still believes it
true, and he has made other assertions alleged
but denies that they are slanderous or untruth-
full. He also says he believes his charges
against MIR. Goodenough true and capable of
proof
DR.. Lanahan also denies entirely charges
4th and 9th, Of INSTRUMENTATION to his superiurs,
and the violation Of his pledges to them, and
of want of proper qualifications and capacity
for the position though declining to make an
swer to two of the questions of the latter charge
untl! proof OF alleged incOmpetency has been
tai charge of incompetency was also entered,
together with br ief statement of facts in re-
gard to the disposal of large amount of dead
stock and of its value, which the Concern had
accumulated.
After reading the answer of DR.. Lanahan a
communication from Bishop Ames Scott,
Jones and Simpson was presented, in which
they stated that in meeting with the commit
tee they must not be understood IS sharing in
any degree or to any extent the responsibility
OF entertainUg or receiving charges against an
editor or agent; that they cannot act as con-
current authority in any investigation except
to official conduct of the editors and agents, |
who are answerable to the same authority of
the presiding elders as other ministers of The
church; that third parties cannot be allowed to
prefer charges of SANDER, and thew do not
deem it proper for them to consider the gener-
al fitness or unftness for Office of any man an
pointed by the General Conference as an edi-
tor or agent unless such alleged unftness has
occurred since his election. A discussion then
ensued between members of the com mittee as
to the scope which the investigation should be
allowed to take.
At the afternoon session Rev. Mr.. Buckley,
counsel for defendant read letter from Geo,
Taylor, Flushing, L. l., one of the signers of
the accusations, stating that he signed the
charges without correct knowledge of what
they contained, ane because he was asked
Mr. Buckley added that if the body of accusers
were called together and examined it would be
fOuad that a majority signed them, like Mr..
Taylor, without knowing their purport. The
manner in which the signatures had been OBJ
tanned would not bear inspection. The coun-
sci c'osed by requesting the accusers to be sum-
moned before the committee. Mr.. Buckley's
request was entered on the minutes. The in
vestlgation then commenced and E. L. Faucher
opened for the prosecution, stating that the
charge that frauds had been committed in the