Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1883-07-13
THE RUTLAND RAILROAD
Report ofthe Expert Examiner = Queer
WaysOi Doing Business.


Pacific r,ilioad company-who has been for
u month past examining the books kept by
j. NJ. Haven treasurer of the Rutland rail.
road company. Mr.. Wilbur made some iu-
teresting and not very creditable discoveries
| The maiu point are as follows, as stated by
| Mr.. Wilbur:
found the treasurer kept no cash book,
but kept memorandum through the month
and sometimes longer oil his cash transac-
tons and then entered them upon his Journal
and posted them from there into his ledger
he appeared to have entered correctly all his
cash receipts and had vouchers for his cash
payments. The cash account showed bal
ence in the hands of the treasurer from
month to month during the four years that l
examined it, Of from 100000 to 100000,
being an average balance OF about $50, 900
for the whole time on account of the way
that the books were kept, particularly the
check books of the Rutland bank, and in the
absence of any pass book 1t was impossible
for me to learn where this balance had been
or in whose hands it had been; could not
find that the company had received any III
terest on it when began the examination
| desired the treasurer to allow me to count
tho money In his drawer or in the office and
show nc his bank account. Governor
Page objected to his doing SO and proposed
that | should 90 on and make the eXumina-
tion and see what balance was due from the
Treasurer first and then the money would
be forthcoming. declined working in this
way and insisted upon examining his cash
| before made any Other examination. Al
| ter arguing this matter with Governor Page
for several hours and making HIM understand
that should return without making any ex-
| animation unless | could make II after my
| own fashion, he went to the National Bank
of Rutland and returned with u certificate of
the money in sait bank. SIT, 3O1 40.
The treasurer had repeatedly stated 10
me that they never had any pass book from
| the Rutland or any other bank, and went
| with the treasurer to the National bank OF
Rutland TO inquire if the money stated by
the cashier in the certificate rs COOL to the
treasurer was a balance arising from
deposits or from loan msdc the day of the
date of the certificate. he said the former
was the fact. told him had to ask the
question, as thee was no pass book.
Gov Page WAS there and SAID
there was pass book, aud
always had been one. | left the bank then
with Mr.. Haven, and in about an hour after,
Gov Page brought Inc II pass book, which
he said was found in the bank, this pass
book had about one years work on it, and
was balanced, not monthly as is customary,
but up to March 12, 1888, showing II balance
|
which have given copy. My impression
regarding the pass book is that it was made
during the half-hour or hour after | lett the
bank, but Of course can not say as To that
positively. If it had not been made up all a,
the same time it would have been balanced
monthly, as is almost the universal custom
besides this, it all looked like fresh ink, and
was the same color, and no book could be
found or produced that preceded it.
examined the ledger OF the preferred
stock. and took off from it u balance of each
account, added these together, aud found
they represented 40,070 shares. As this was
more than it should be, by 10 shares, | re-
examined the ledger and found that the ac-
count with Mr.. j. M. Haven was ruled off,
as though it was balanced, but in adding the
debit and credit columns, l found they did
not agree, and that the account showed to
| the credit of Mr.. Haven over 900 shares. !
also found in the account with MIR. >. NJ.
Haven, treasurer, where there was II balance
to his credit Of | think, $40 shares which |
had not entered on my list because the &C
count was ruled off, and the balance not
brought down. then examined tue post
ings from the transfer books, and very soon
discovered an error of 1000 shares IN post
ing to Mr.. y. w. Clements account. These
corrections made the balances from the
stock ledger amount to 1880 shares,
being an ovcrissuc of 1880 shares, as
the rightful amount could only be 10000
shares. | have not yet had time 10 examine
the certificates of the preferred stock, nor the
whole of the postings, but my assistants are
at work at it now. examined the ledger OF
the common stock and also the certificate
books of the common stock and they showed
an overissue of about 500 shares Besides
this there were several certificates gone from
the certificate hooks which were not in any
way accounted for and in some cases the
margins or stubs of the certificates were gone
as well as the certificates.
On discovering the error in Mr.. Clements
account called on them to have them show
me the certificates they held. They showed
me certificates for 1000 shares more than the
ledger showed or represented. They told
me that Mr.. Haven had been trying To yet
these certificates iuto his possession for
nearly a week for the purpose of giving
one certificate for the whole Of them, but
they could not see any use in that being done
and would not let him have them | called
Mr.. Haven's attention to this and he informed
me that he wanted to get up those certificates
because when he went to Texas some time
ago he had to let his son sign as attorney,
which was not exactly legal. As these ccrti-
fca,es held by MIR. Clement were signed by
Mr.. Haven himself aud not by any attorney.
l could not see any reason in his explana
ton.
CGoy. Page1 said the treasurer
should Immediately correct his errors and
desired me 10 report to the committee of the
stockholders that the cash account was all
right and that the treasurer wanted little
time to get his stock books ready to be ex-
amincd. and that would continue the ex-
animation as soon as he informed me they
were all posed up.
When | acquainted the treasurer of the |
oyerssue of comr,ou stock he appeared
quite indifferent: said he did not care any,
thing about it, as the stock was of no value
when showed him the oycr.issue in the |
nreferred stock he was frightened and his