New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-12-31

q siate whether against OF these entries 'nerc
doos NOT appear an erasure and the suDsutuNon VI
uamet h. There is an erasure. only dont remenUei'
will not say positively, but my impression Is tna'
,ha hoIe of these entries were wrtton In GA b. STOCK
au and afterward by the direction Of the VcePrcs
dent-Nr stockwel objected TO have his name appear
IN thu AooLsthe difference was made II was rueo Oh
tnd changed.
Mr. Beck" Eldridge Irwin" Of course IL over the
erasure A. Yes, Sir could not state positivelY tne
cause Of these erasurCs. with this exception, 'nS'
think n was originally changed 70 Mr.. StocSwelL
O. you look ct It toward the light, you will zee the
mark OF the IS" In the erasurc-f A Yes. Sir
O Whose name is entered againt this item Of so0oo
A. That OF Harriet Noyes
O. Does not that appear TO have boon written OF
diferen, timet A. Yes, Dir, 1t was; am quito sure
upon that point.
@ Up what time did you remain In the SERVICES VI
the Oompauyi A. Nov. 80, ls72
@ Under whose direction checks issuedi A. Undef
the direction usually Of the President under the imme-
diate direction Of the Vice President.
O. The supreme directioni A. The supreme direction
Of course was with the President
O. Was it necessary under the bylaws and ruIes OF
the Company that the sanction OF the Board OF d.
the Executive Committee should be given 70
tho Issue Of checks for any amount, where was merely
for loan or exchanged In other words had the Presi
dent the right 10 issue checks without the sanction OF
the BOardf A. 1t was the custam.
O. 60 that II he lent to broker anybody the money
OF the Company, he used 1t without communicating
with the Boardf A 1t was the custom to lend the sur
plus money on proper collaterals.
O. On the other hand. II he made permanent ols-
bursement for the Company, could he do sol a. All
ordinary disbursements.
O. Whatever was the rule or regulation about
loans yCu are quite about this latter customt a.
Yea, Sir.
O. Were YOU present at the meeting Of the Executive
nfho rzad
70 make some d. 10 connection with the OBJ
tanning OF the subsidy A. Not ID my knowledge;
WAS secretary pro tom. OF the Company OF that time;
the Executive Committee had its own secretary, ana
their were aftcrward copied by hosecreary
of the Company.
O. Were you present at any meeting Of the Board OF
Directors February 1872. when the subsidy was con-
sdered A. have no recollection OF It,
Q. Mr.. johnson was the Secretary OF tho Company
A. Yes. Sir
O. He ~ de the entries, you say. on the ledgeri A.
NJ Sir; re was Treasurer pro tenn. OF the same Time
was Secretary pro tenn II would seem that the actua
Treasurer absent that these entries were MADE
by Mr.. johnson.
O. At tic de you transferred these six checks to the
cashbooE did you do 1t from this bOoki A. Yes Sir
those are my check marks.
O. So that at the time you made the transfer to the
cashbOoE the filing that now upon the BOOK Dao NOT
been doDe A. To the best Of my knowledge ana Dele1
O. II IL had been Gone you would have charged II &C.
cordingy A. should have charged it to E'driige
Irwin
O. Would !, not have been your duty do sol Is not
that the cxplanatiou1 A. There other explanation
Mr. Kaseol--It was filled UP after these entries were
madef A. Yes Sir that would be the only explanation
O. You will observe on the stubs OF these cheeks that
the numbers are printed Examine the corresponding
numbers ON the checks and II they are not In writ
ing TIE stub printed Was not the check which oor-
Vac Air
@. You ab'crve these are notH A. Yes, Sir.
Isit evident that these are not the checks which
came from these stuhs9 A. 1t Is very evident.
O. eau you tell why II Is sOf A. Inever saw these
checks before and have no knowledge OF them in any
way or fashion.
O. Was it not very unusual to take OF the checks with
the printed number and oherst A. Only In certain
cases There blank checks in the office to be used
In cases check night be filed up 20 wrong
order That would be destroyed aud new one signed
BY the Vice-President.
O. Cnocks Of the character Of those delivered to Mr.
Irwin were only delivered In the legitimate business OF
the Company when mistakes occurred in writing up the
one corresponding to the stubi A. Yes, sir.
@. For what reason this was done you don't knowi
A. No, Sir. These we're taken from the blank checks
kept for the purpose
@ Does it not therefore appear to you. In looking
over these checks the subbOok. cash-book, and the
the ledger that the entries relative TO this
100000 transaction In fact false entries A. WE'LL
they-false In fact So far as the actual fact Of book
keeping concerned, 1t was charged to an account
where it did not belong.
O. What security can stockholders have in the AFFAIRS
OF the Company when this sort Of thing done on the
6ooksf A. Well, thing Of that kind may be done
without all iuurng deranging their accuracy For
instance you may have opened certain account and
then given 1t another title. but OF course the only de-
tense for stockholders In any Is that their officers
Thnry charp wi $3.50
sure but light have been simply as convenience FOR
the time.
O. Would not any stakeholder in looking at the books
believe that Harriet e. NOyes owed the Company
bo5O,OOOi A. The whole set Of entries is wrong.
@. Assuming the fact to be true that the money was
given TO Mr. Irwin and 1t was made to appear on the
books that it lent to Harriet NOyesthe 100000
was that entry frand upon any stockholder who
was to look at the as to get at the
true condition Of the Company A YES BIT; no QueS
Is there no safety to the stockholder to the real
ever any safety stockholoer In unless he
is Sufficiently acquainted WITH inc AFFAIRS OF tne Com,
OF the stockholders knew the state OF the account
@ We are called upon by the representatives OF Q
great many very poor taxpayers to inquire into this II
we are to furnish this Company with million year.
II pretty large amount to some OF u.s. and we want
60 know whether there Is any security In the way or
your bOOkkee ping for the money we give you-whether
can 6ud out bout 1t Ivy looking at your books a.
Well, sr, you are certainly m'sed by these take It
that set Of books parakes very largely OF the Char
actor Of the man who manages the business
Mr. Beck-I will stand upon that.
Mr.. KassOn-I would hke to know If bookkeeper
knows that mis- superior s bidding him make false
ties whether he would regard 1t as the business Of the
bOOkkeeper to obey such orders If he knows that they
are falsei A. Well 1t questions II he does not obey,
sou know what the result would be; aud If he were to
go 10 COMPLAIN, 70 whom would he got I knew this
that Executive Committee had ordered certain
peudtures III Washington IL was matter OF notorleiy
In the Office; the amount OF these checks OF course,
struck me very large; i am very confident that
went to Mr. Bellows 70 ask about them 1t was after
consultation that 1t was finally thought best TO charge
them to Eldridge IRWIN, as the place where they
would attract the least attention. Dir Bellows, to the
best OF my recollection, told that 1t M Stock
wcs intention TO pay back that money am speaking,
GrOlnt nv mcthO0 oil doing DnSI.