New-York tribune., 1903-04-16
THEFT OF MILLIONS"
OSBORNE litter u. S. r.
Report That s500.0OO Vas Spent for
RELAXING Nile of Track.


street Railway Company brought out last
evening in the continuation Of the hearing be-
so7e Magistrate Barlow. the charge of crimi-
nal libel which Mr. Amory has made against
4 H Vreeland. president Of the Metropolitan
company. Two sessions were held in the Court
NJ Special Sessions from to p m. and from
s 10 10 p. m
Nr Amory was the witness stand in
direct examination by James w. Osborne, who
has lately been added 10 Mr.. Amory's counsel,
,rd Fugene a. PhiIbin sat beside Mr. Osborne
srd conferred with him frequently. Mr.. PhiIbin
vns retained recently by Henry J. Braker, 10
make an investigation Of the affairs OF the
metropolitan Il company. with a view to bringing
q srockholdkr's suit to have the company placed
:, the hands Of receivers Mr.. Philbin said last
evening that he had become convinced by his
snvestigation that some of the discrepancies in
she reports made by the company TO the State
railroad Commissioners. which Mr.. Arnory al
lerad were indications that the management
had been robbing the stockholders. needed ex-
planaton.
.I found that there were serious discrepancies
., the reports Mr.. Phlbn said, 'and I have
v--irten TO the officers of the railroad company
esking for explanation It IS possible that
.hese discrepancies can be explained. 1 am not
erre that Mr.. Amory is right in his opinions
,s n the amounts he says have been stolen from
she stockholders. I have not found proof that
-be company is insolvent, and there is in
+ention at present TO bring suit for a
cevership. 1 see no reason however. why the
company should not reply fully and fairly to my
-eouest for an explanation"
Mr.. Osborne led Mr.. Anlory along a witness
.o tell about the discrepancies which he had dis
covered in the reports. and which expert ac-
co7,+ants employed at his request had reported
IN his questioning Mr.. Osborne went over much
of the ground covered in the early part Of the
hearing and Delaney NicoIl, OF Mr.. Vree-
lands counsel protested vigorously. Magistrate
Barlow said he intended TO permit the fullest
latitude in the redirect examination OF the
witness Mr. Nicon said It had been all threshed
out before. and M Osborne said he would
fhresh * out q new way
How long do you think you viii take?"
asked Magistrate Barlow.
I'll he very frank with you Mr.. Osborne
said sI expect to take the entire session 1
going TO have Mr. Amory reiterate his previous
testimony by having him read the facts and
figures from the reports Of the Metropolitan
company to the State Railroad Commission and
then we viii have an absolute record Of the dis
crepancies in the accounts Of the company. Then
propose TO put these reports in evidence His
testimony on other occasions has been from
memory and memorandum, and has been &C
curate generally. but now are going TO get
it from the sworn reports Of the company"
Mr. Arnorv read reports showing that IN
yesr the Metropolitan reported TO the State
Railroad Commissioners that II cost about
100000 for certain construction and equip
uent and that year later exactly the same
work cost about 100000 The figures Of one
report according the Interpretation of Mr..
Arory. showed that the company had charged
for the construction of 275 cars when only 253
cars were actually constructed.
Other figures were read by Mr.. Amory which
he said made it appear that the Metropolitan
company had paid for the construction Of one
piece Of road three times
"Just listen 10 that truck" said Mr.. Nicou
Truck. eh?" said Mr.. Osborne. well. if you
had honest board OF directors such reports
would never have been made. There would
have been no occasion TO make them"
Now what a ridiculous proposition this isl"
said Mr.. Nicoll. Figures are being read from
sworn reports TO show that the officers Of our
company are actually thieves. Do you suppose.
if they had stolen millions from the stockhold-
ers as these conspirators are trying to show,
that they would have sworn to reports exposing
their thefts? Now, when our side gets a chance
viii have TO produce expert accountants and
consume months and months of this courts time
TO explain methods of bookkeeping which we
lawyers DO not understand Think OF the time
20 be wasted in explaining away such foolish
trash"
ingly.
Yes foolish trash said Mr. Nicoh 1T all
can be explained by experts.
I'll bet Il can't be explained" said Mr.. Os-
borne
Yes il can." replied Mr.. Ncoll.
We'll then I'll bet it won't retorted Mr Os-
borne. No expert can explain away the theft
OF millions which e palpable from these
figures
Among the figures read by Mr.. Amory were
some which purported TO show that the com
pany had reported il had expended $500,000 for
relaving a mile Of track Other figures read by
Mr Arnory from the reports showed that the
company had paid 5000 for engineering ex-
penses for one mile Of street railroad Mr.
Anory started TO testify as TO what the cost of
this ought to be- but Mr. NicoI objected say
ing:
This man is not expert"
Il know he is not" said Mr.. Osborne, but
! want 10 show that the actual cost Of engineer
Ing mile of street railroad is only about $500"
Mr. Nicoll said that was immaterial to the
question Of libel. and Magistrate Barlow agreed
with him. Then MI Osborne said he wanted 10
show that Mr.. Amory had reason TO make the
charges against the company which caused MI
kEeeland describe Mr. Amory IN aIIegtd
hoelous terms He declared that the reports
had paid more than 81, 100000 for engineering
Expenses its street lines, and MI amor?
fhoulc be allowed TO tell why he thought sucn
payments We're wildly extraVagant- MI NlcoiI
declared that the stockholders Of the company
never had complained about the nanageIneii,
and expenses and objection had been ~ IaIStd
tefore Nj Amonv. a dischargea eiib.os baoar :,
moved by spite and other considerations peeaH
70 make charges. Magistrate Barlow CUT iHe
argument short by ruling against Mr. osporilte.
NJ Osborne asked Mr. amor 70 eAplatI eApai. i ~