Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-04-27
A FORCED BALANCE
The Term Discussed at the Telephone
Inquiry.
Mr. PlfNEY'S SEARCHING QUESTIONS
Explanations Of Mr.. Bryan and His
Accountant.
MILLIONS OR NOTHIN

well, this is the first time I have eve
| been held up as a suspected dynamiter.
| remarked Mr.. Jere Wilson when he ap
peared before the telephone investigator.
| committee of the House today.
Same here" echoed Mr.. Haskins. tn,
expert accountant, who accompanied him
Both had reached the committee room un
der police escort
When Mr.. Wilson and Mr.. Haskins reach
ed the Capitol today they carried a bi,
package. done up in brown paper and Sc
| curely tied with cord
Hold on, there" said the vigiiant Capt.
toll policeman at the door. you can
| take that bundle into the Capitol
| Within the past two days stringent rule
| have been adopted at the Capitol agains
| bringing anything into the building whicl
might conceal a dynamite bomb
Mr.. Wilson blandly explained that tn
bundle contained books of the telephon
company, which had been called for by
committee of Congress.
Escorted by n Policeman.
The officer was obdurate, however, an,
regarded the package with increasing sus
| picion. This was an embarrassing position
| for Mr.. Wilson. He was due at the com
mittee room with those books at 10 O'Clock
and here it was $50 already. Visions O
contempt of court arose before him on on
side. while the guard room of the Capito
| yawned upon the other.
He was between the deep sea and tn
| Droverbial alternative
! Finally, the difficulty was resolved by tn
| Dlue-coated officer eScorting the party t
| the committee room, keeping watchfu
eye upon the bundle all the time. unit
l n~x,,,
| within the portals of the committee room
| Spread Upon the Record.
| When the committee assembled, Mr.. Pit
ney made an examination of the books GOV
ering the transactions for repairs and con
| struction.
"A discussion arose between Mr.. Bryal
| and the committee over a proposition t
! spread upon the record certain extract
| nom the books Mr.. Bryan said there wa
| no disposition upon his part to conceal any
thing from the committee. but he preferre'
| that the innermost transactions of tn
&C mpany should not be laid before the pub
| lie at large.
| At the suggestion of his counsel, how
| ever. and for fear. as he said, that his po
Sft1on might be miScOnSt rued he withdrew
| his opposition and would agree to the com
| mittee including liz the record extract.
| from the books which the committee de
sired to publish.
Mr. Pitney questioned Mr. Haskips upor
the stock transactions of the company ir
| its early days and it's predecessor in ex.
piana ion of the statements heretofore sub
mitted and published.
The second page of the journal of the
| Chesapeake and Potomac Telephone Com.
pany was incorporated in the record.
AT this point the proceedings took an in.
tereStfng turn.
A Forced Balance Discussed.
Take the item of plant" said Mr. Pit
| ney. included among the assets. s2,6is..
1914. That is put in at an agreed amour,
which will simply balance the balance be-
| tween the othersitems and the agreed cap
italization. is it not?"
1T is The balance between the actual as.
sets they have or hand and capital stock
issued" replied Mr.. Haskins.
And forced balance, of course sait
Mr. Pitney.
q do not like that term of forced bal
ance," interposed Mr.. Bryan. "I think any
thing done by agre, ment is hardly forced
balance, If these is any foundation for tina
agreement and IT'S results. think the tern
forced balance Is apt to be misleading ant
imply blame
when. in order to make a balance will
the capital stock" said Mr.. Pftney, ''yo,
are obliged to put down franchises, licenses
rights of way, etc, which are valued on tn.
! old company's books at s425 l6O.21. at tn.
ance, Is 1t not?'
at is a balance" answered Mr.. Haskins
Have you not given an arbitrary value,
suggested Mr.. Dockery. Ito the franchises
in order to make the balance?'
Yes. sir, that is true" replied Mr. Has
kins.
And therefore does it not logically ant
as a matter Of fact follow that it L. a forcet
balance?" said Mr.. Dockery.
LAS an accountant" replied Mr. Haskins
Il naturally object to the term forced bal
ance. as it implies something improper"
Millions in Cash, or Nothing.
Mr.. Bryan" asked Mr.. Pitney, 'is there
any question in the world that this plant
| of $2.64S, "a was put in at that amount
In order to force balance?"
There was no forced balance I have
ever discovered in the transaction" Mr..
Bryan replied.
Have you looked for it7'' asked Mr.,
Pitney.
II have"
Where have you lookedr'
If 1t is a matter Of agreement" contin-
ued Mr.. Bryan, whether you put that in
as fixed sum for the purpose of making
up, as you state the capital stock oI
whether you fix it at that sum and it is
paid for in cash does not make a bit of
difference
ut makes a difference" said Mr.. PIT
rey, that you would have about 81 5OO. CN
actual money in the treasury in the one
case and nothing but wind in the other
case"
IF I understand the use of the phra 90
forced balance" said Mr.. Dockery, "in
this connection, 1t implies that in the adj
Justment Of detits and credits, assets and
Liabilities it was necessary to give a GER
tain arbitrary valuation to franchises and
privileges in order to effect balance.
which valuation may CT may not be a cor
rect valua ton
That is a correct statement" replied
Mr.. Haskins.
After some further desultory talk upon
this item Of the books the committee took
recess until o'clock.
Some Further Questions.
After the recess Mr.. Pitney continued
his interrogation of Mr.. Haskfns with ref
erence to the book accounts.
Mr.. Pitney called attention to an entry
debiting licenses and right of way &C
count" In the sum Of 1892 900 and credit
ing plant account" in that sum-
THAT means" said Mr.. Pitney, "that
they desired to divide the plant account
into an amount representing the actual
plant and an amount representing licenses
and right Of way?'
That is correct" said Mr.. Haskins
Il observe memorandum in the book {"
continued Mr.. Pitney, "that the above
transfer made by authority Of A. O. Nor