Evening star., 1898-08-10
FIR0R'S ACCOUNTS
Interesting Developments Come ST.
multaneously With His Return.
SCHNEIDER BAKING CO
Report of Special Committee of
Investigation.
TALK WITH PRES. SCHNEIDER

| 1N
The return to Washington of Frank Firor
son-in-law of Mr.. Charles Schneider, the
president of the Charles Schneider Baking
Company. and until his disappearance May
q last noninaily the secretary and treas
| urer and really the manager of the COM
| pany, Is almost simultaneous with the con-
cluSton of the Investigation into his con-
| duct of the affairs of the company by
committee of Its board of directors It will
be remembered that Firor left the city
| suddenly, and in a letter written to mis-
wife declared that he would never be heard
OF again. An investigation of -he reasons
Tor his departure developed that he had
managed the affairs of the company in
| very questionable manner and had, by
means of a power of attorney given him
by Mr.. Charles Schneider, secured money
belonging to the latter amounting to be-
tween $4,000 and $4,000. Before Firors
| 'llght the directors of the company had be-
| come suspicious of him. and last year the
pecu'lar methods he followed in managing
! schneider, who had absolute condolences in
MIN, put entirely under his control, caused
Mr. Schneiders attention TO be called to
The latter would not listen to any sug-
gestions affecting his son-in-law's integ-
| rity, so it is said.
The company directors, therefore, early
| IN the present year appointed a committee
| consisting, 1t is understood, of three of its
members to examine the books and business
OF the company, and this committee made
| Its report last night at meeting of the
| directors called for the purpose.
Contents of the Report.
1t is understood on most excellent au-
tEority that the report recited that the
eXnerf Georpa -ho
to assist the committee in it's work. was
constantly trammelled in his investiga-
tions by Firor, being unable to get access
to the books until after office hours and
| otherwise interfered with Two additional
experts were employed. and they discover
! ed that the books showed that Firor was
| short in his accounts with the COMPANY
abcut 81, 700, although the books were kept
| in such complicated condition that it was
| impossible to give a complete statement re-
| garding them.
| 1t is understood that the committee re-
port also stated that President Schneider
! had shown childlike confidence in Firor
/ and had not only allowed him to discharge
every function which devolved upon him
'tSchneider) as president and general man
| ager, and clothed Firor with all his off,
| cial prerogauves, but had also invested
firor with general power of attorney in
| bis private business. The committee it is
| raid, also stated that Mr.. Schneider's claim
| of being ignorant of Firor's peculiarfties
was not we'll founded because IT was said
| that many of Ffror's transactions. regard
ed by other business men as shady" had
| been called to his attention The commit
| tees criticism of the president ceased here
| ana the report stated that since Firor's dis
| appearance Mr.. Schneider's conduct of the
| business had met with unqualified ap-
| proval.
| New System Recommended.
In conclusion, it is understood the COM
| mittee recommended many changes in the
| system of conducting the company's bus
| itess, including the employment of expert
| accountants to regularly examine the COM
| pany books; the creation of an executive
committee having supervisory and auditing
powers, TO meet once week or oftener
and to have power to suspend temporarily
any officer guilty of dishonesty or improper
ceEdrct; a division of responsibility among
the heads of the various branches of the
c5mpanys business; the keeping of COM
piete records of each days business and
the adoption of modern methods generally
| IN conducting the comrany's affairs.
A Talk With Mr.. Schneider
President Schneider was visited today by
a reporter for The Star and was asked if
Flror's return to Washington had any
bearing upon the affairs of the company
that might be of public interest. Mr..
Schneider was at first disinclined to speak
| about the man who had SO ruthlessly i'm
posed Upon his confidence, but finally talk
ed freely with the reporter. "Ffror has
Eeen In Washington two weeks said Mr..
schneider but he has not been near me
and have not seen him. His misdo.nys
have not affected the Schneider Baking
company TO any extent. The company is
affairs are being managed with proper
care. The committee of the directors made
a report last night, but it has not been
acted upon. My confidence in Firor was
rnbounded. / estimate that he used of my
personal funds between $4,000 and $50 000
The Power of Attorney.
Before I went to Europe gave him
power of attorney to transact my personal
business. When returned began to draw
my own checks. Firor did not exercise his
power of attorney to draw money from the
bank for some months after my return,
and then he began and kept it up. 1 can
not reach him because the power of at
torney in his possession when he drew my
money would protect him. The company
loses nothing of his discovered deficiency
as his bond covers that. But the accounts
OF the company since his departure indi-
cate that he must have helped himself to
Its profits very largely"
Company Stock In Demand.
In pursuing his Investigations into the
matter today, The Star reporter learned |
from several sources that there was an |
active demand for a large block of the |
stock OF the company, one inquirer stating |
that ne wanted to secure $4,000 worth at |
par. President Schneider and several other
gentlemen interested in the company cor |
roborated this Information, and President |
schneider showed the reporter a certificate |
OF three shares which he had just pur- !
chased himself at a premium. The stock |
last year paid dividend of nine per cent |
with Firor in charge of its management |
and finances. One hundred and twenty-five |
was asked for its stock today, the par value
being 100.
Frank Ffror could not be found today |
when he was sought to be asked whether |
he had anything to say.
sUTRo's BODY TO BE CREMATED.