The San Francisco call., 1896-05-28

the horses that have to be sold for next to
nothing or given awayl"
Mr.. Clunie suggested that horses on
street railways become worn out or died
OF oid:age, but the witness did not deign to
notice the suggestion. He was positive
that he did not know anything that was
not down on his books. He did not know
positively who the directors were. If the
names of the directors were on his books
he would know who they were, but if they
were not he would know absolutely
nothing.
Several times during the testimony of
the smiling accountant Secretary Willcutt
stepped up to the stand and held whis-
pered conferences with Mr.. Folsom, evi-
IDENTIFY coaching him. On such occasions
every one in the courtroom smiled and
Judge Wallace looked surprised.
Mr.. Willcutt found that his visits had be-
come so frequent that he decided to re-
main on the platform reserved for wit
nesses and he comfortably seated himself
in the armchair while Mr.. Folsom con-
tinued his testimony standing.
After Mr.. Willcutt had stepped up to
! Mr.. Folsom several times aud whispered
| in his ear Mr.. Clunie objected to exam
| ining a double-headed witness, and in
obedience to his suggestions Mr.. Willcutt
resumed his seat outside the railing among
the common people.
| Mr. Folsom explained that he had added
| to the cost of the permanent way and fran
chise enough to make it fit the $1S $50, 900
| of capital stock, because" he added
apologetically, ''our books must balance,
you know. 1t wouldn't do to have them
not balance, you know" and the account
! ant smiled in a most engaging manner at
Mr.. Clunie and Judge Wallace.
"My only explanation of this increase
of capital stock" he continued, sis
| that it was deemed necessary in order
! that the enormous future expenses of the
road might be provided for and in order
that it might agree with the amount of
the bonds. We simply added 10000, 900
to the capital stock in order to properly
open our books"
Judge Wallace asked: ''You simply
added this $4,000 900 to the capital stock
so as to support the issue of the bonds?"
The witness admitted that such was the
fact. In the course of his testimony he
said something about the cost of fran
chses.
a IduCulSe uOcS QOL COSG any
suggested Judge Wallace.
mot necessarily" replied Mr.. Folsom.
"Why not necessarily2' asked Mr.
Clunie. Have you any account in your
books showing the cost of your franchises
| Do franchises cost anything in San Fran
cisco?"
II understand" replied Mr.. Folsom,
"that when franchise is asked for bid
is handed in to the Board OF Supervisors -
HAS that been your experience ever
since you have been connected with the
road" inquired Mr.. Clunie; az don't
mean private bids, l mean public bids.
Bids have been required only for the past
year or two"
The witness hastened to state that he
had nothing on his books showing the cost
of franchises.
Mr.. Freidenrich, who appeared to be
somewhat uneasy at the fuency of the
accountant, nterposed an objection. He
thought that all the facts in relation to in :
creasing OF the capital stock by $40, 900
were already before the court.
Judge Wallace remarked that he under
stood the testimony to be that on the 18th
of certain month the railroad companies
had q certain quantity of property. On
the next day, the 14th, the ompanies,
! having neither more nor less property
! than they had on the day before, added
| $40 ,000, 900 to their capital stock, and paid
| themselves dividends on that amount.
| Edmund Davis Thomas, auditor for the
Market-street Railroad Company, was
asked whether legal expenses were in
cluded under the term, Operating ex-
penses," and he replied that they were.
The auditor did not have with him the
book containing a detailed statement of
| legal expenses.