Evening journal., 1890-03-03
BROWNS LARGE DEFICIT
Muddled Accounts of the River
side and Oswego Mills.
THE TREASURER o., 7O@s4O SHORT

Interesting Report OF abe Expert Ac-
countAnt who Has Been Examining
the Books Of the Financier who Fled
10 Canada and Then Came Back.
BOSTON. March 3--The report OF the ex-
pert accountant who has been at work for
several months past on the books of George
p. Brown, head Of the wool firm Of Brown,
Steese & Clark. and treasurer of the River
side and Oswego mills, has just been made
public It shows a shortage Of over 81, TOo,-
600 Newspaper readers will remember the
tremendous sensation created last summer
by the failure Of the Oswego mills, and tbs
subsequent flight Of Brown
NJ. roo, $40 Unaccounted For.
The expert. Henry A. Fifer, has just made
his statement TO the assignees He prefacef
It with the declaration that the books were
In q fcarfully demoralized condition when
he took hold, aud even after months Of hard
work he is not sure OF the exact condition OF
affairs However,, he is sure that sl,7OO,
$40 cannot be accounted for, and Brown Il
the only person who can toll what became
of that enormous sum. Among other things
the report states:
Discrepancies from Away Back.
"a trial balance OF the ledger On Aug
1882, shows an apparent surplus Of S2lb, 1858.
but on analysis there are found among thu
assets accounts 70 large amount that ar,
worthless and have been for years. In look.
ing over the books / found discrepancies
spread over each year from 1875 TO 1855. A.
~ uh Anfo 1881
there is a memorandum for S39, 90 that has
been carried in the cash for several years
MIR. Webb's lthe bookkeeperl explanation
r that he had, az the request of Mr.. Brown
drawn check for this amount, which h
tWebh understood was to be used 70 pay
certain demand loan and interest and tina
Mr. Brown had instructed him not TO max
any entry Of at that time
brown Always Said No.
"That he repeatedly asked Mr. Brown 4
elbow him TO make the proper entry, bu
never had been authorized to do So Their
stands upon the book an Indebtedness o
SIS, 4CS contracted in 1884, which is sup
posed 10 that extent 10 represent the amour
o. this check but whether It does or no
has not been determined Taking tn
books Of the arm st face value, and maxim
necessary corrections, a statement Of thei
condition would show assets Of 81, $40 81
and liabilities Of si,4li,3is or the bill
receivable S565, III are OF extremely doubt
full character Some OF them are account
that have been carried along as assets 10
several years; others represent losses
wool purchases. some Of which are ten {
twelve years old
Many Transactions sim Unexplained.
1T was found that indebtedness 10 IA
amount Of q, 7OO, $40 existed on Aug. Q. tsss
that had no record upon the firms book
thus swelling the direct debt 70 Is. IL. "a
No detailed record % this additional IA
debiedness was, 70 far as / know. iu sIas
ence. except such as could be gafheres ira
memoranda on slips Of paper. Tie Grm
business bank account was with ths Nzia1ua
Bank Of Redemption Mr.. Bruwz tt
smother In the firm name with the Nsir0
poitan National bank, where be slozs -
authorized 10 sign checks, aud be had q
individual account with Brighton Marks
hank. As treasurer he had five other ban
accouutan
The accountant makes no attempt 70 o.
plain the business methods employed
Brown. BY the aid Of copy books aud letter
U.auv * ths transactions have been success
f1lly traced. but there are any number thu
w1l always remain a mystery unless Mi
Brcur rrrse1is 10 come forward with a
arulE-az1cu