The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-25
ROSE PROVES TO Be A
VERY SHREWD WITNESS
Expert Accountant Declines to Be
Trapped by Cross-Questions by
Shipbuilding Counsel.
PROFITS AND DIVIDENDS

NEW YORK, Dec 2I-Alfred Rose. the
accountant who made the investigation of
the financial status of the Bethlehem Steel
Company for Receiver Smith, resumed the
stand at the Shipbuilding hearing to-day,
continuing his testimony about the result
of his Investigations The construction and
repair accounts of Bethlehem were the first
subjects of the inquiry by Counsel Inter
myer, his object being 10 find if excessive
expenditures were made under these head
ings in order to withhold dividends on the
Bethlehem stock held by the Shipbuilding
Company. Mr.. Rose answered that the
construction account, sl63 l3i, for the year
ending May 1. 1902. was increased according
to the auditors statements during the fol-
lowing year to SSS35OO, and that $50 444 had
been charged TO this account during May,
June and July of this year, this expendl-
ture being at the rate of over 100000 per
year. The repairs and renewals account
from May l, 1892, to May /, 1903, was IN
excess of $4,000. Mr. Rose had been in
formed: but he could not tell whether any
part of this should have properly been
charged to construction.
In regard 10 the net earnings, Mr. Roses
figures showed that the earnings for the
six months ending Oct. 81. 1908, amounted
TO Sl,OlO,662, the monthly earnings in July
having suddenly jumped to Sass, 100 from an
average of less than $4,000 during the pre-
ceding two months. The value of material
on nan0, as SHOWN by inventory OF july 81,
15os was -. s97. 77s higher than any previous
inventory In the history OF the company,
and 81. 10000 higher than the July, 1902, in
ventory- BY Oct 81, 1903. the inventory
value had still further increased to $780,
$780,
Mr.. Guthrie asked a number of questions
designed to bring out Mr.. Roses experience
in examining shipbuilding and steel COM
panies and then cross-examined him as to
the method in which the investigation OF the
Bethlehem plant was made.
Mr.. Guthrie tried to get the witness to say
that IL 100000 or $4,000 on partly finished
or finished product was due from the United
States government and had been billed, he
would consider II proper to include the
profits on such accounts In the inventory or
the company.
ITO anticipate profits" the witness re-
piled, lis a dangerous thing to do, as We
have found by examination OF other con-
Germs than the shipbuilding company.
Mr.. Guthrie also tried to get the witness
TO say that he was aware that Mr.. Nell
vain. president of the Bethlehem Iron Conn
pany, devoted his whole time to the work
of manufacturing.
MY experience with Mr.. McIlvain was
that while was at Bethlehem he was sell
dom there" said the witness. My under
standing is that Mr.. McIlvain devotes his
time to selling and that Mr.. Johnston is the
practical man In charge of manufacturing.
The witness said he knew that subsequent
to April 80, 1902, the Bethlehem company
billed 100000 of goods. Mr.. Guthrie tried
TO get the witness to say something that
character of the high officials of the Beth
Iehem company, but Mr.. Rose declined to
he trapped. and the hearing was adjourned
to IAN 3.