New-York tribune., 1903-05-29
PHILBIN AFTER NJ. S. R.
DEMAND TO SEE BOOKS.
Regarded as Step Preliminary to
4DDcaL to Courts for order.

II formation was obtained by The Tribune
from trustworthy source Yesterday that
new demand for examination of the books
of the Metropolitan Street Railway Company
had been made by Eugene A. Philbin, as coun-
sci for Henry ]. Braker or John T. DOYLE, or
both Of them officials of the company received
Mr. Phi!bin's communication yesterday and were
said to be dfsag greeaoly surprised, because they
believed further attempt 10 investigate the
ccmpany's affairs would be made. This belief,
it was said was based the conclusions
reached in the long hearing before Magistrate
Barlow of the libel charge brought against H. H
Nraeland. president of the company. b. William
\. Amory. and the findings of Arthur w
Teele the accountant employed by District At
tcrney Jerome in examination Of the com
pany's books
At the time of the examination Of the Amory
charges before Magistrate Barlow. Mr.. Phibin
sent a letter to President Vreeland asking for
an explanation of alleged discrepancies amount
ing 10 manv millions of dollars. to which Mr..
Amory called attention in his testimony. Mr
Phibn at that time asked for the information
as counsel for Mr.. Braker and Mr.. Doyle stock
holders in the company. 1t was developed a'
the examination that Mr. Braker had been So
licited by Mr.. Amory to begin stockholders s
suit against the Metropolitan, with a view TO
having the company placed in the hands OF a
retained
make an investigation of the company's affairs
preliminary to the preparation Of papers in such
q suit The decision Of Magistrate Barlow In
MI Vreeland's favor and the report Of MI
TeeIe which Mr. Jerome regarded sufficiently
favora BILE to the company to cause discon-
tinuanca of the investigation he had ordered
seemed tc convince Delaney Ncoll and other
counsel for the company that no further In
quires into the company's affairs would fol-
low
Mr. Philbin's demand for another examination
Of the company's books was regarded yesterday
as A step preliminary to an application to the
courts for an order to compel such an examina-
ton When Mr.. Philbin asked for nfor-
nation on the subject by a Tribune reporter,
he replied:
Il have no information 70 give"
rs the letter you sent to Mr.. Nreeland to-day
demanding the privilege of examining the books
OF the Metropolitan Street Railway Company to
be followed by an application to the courts II
the company refuses TO permit such an exam
ination?'
Il am not prepared to admit that I sent such
a letter"
DO Won denv that such letter was sent?"
L have nothing to say on that subject at
present"
long and temperate document. repeating many
Of the statements which he made in his previous
request to the company for information. declar-
ing that the report of Mr.. Teele to the District
Attorney has not explained the alleged ciscrep-
ancies to which Mr.. AmOry called attention. and
demanding behalf of a stockhOlder, or stock
holders the right to examine the books of the
company in investigation to determine the
truth about the cOmpanys affairs. The alleged
discrepancies TO which Mr.. Philbin calls atten-
ton are found in the reports made by the COM
pany to the State Railroad Commissioners and
to stockholders.
One of Mr. Philbin's statements regarding the
alleged discrepancies in the reports is that by
CARRYING forward a false balance Of S3,00OOOo
the compa ny has entirely avoided accounting in
detail for exactly So 600 600 of the cash eXpend-
lures claimed 10 have been made leased
lines"
Another statement is that the company in
Eahrnarv 1902 asked for S23 900 900 to pay the
unfunded debt incurred in the purchase of the
stock Of the Third Avenue Railroad Company
and to extend the electrical system to eighty
miles of road when in fact. the Third Avenue
company's stock had been already paid for and
the cost Of the electrical extensions contem-
Mated was only S14 7S1 694 5S This it is al
legged. makes up another discrepancy Of SS,21S,-
3O5 A.