New-York tribune., 1907-10-05
JEROME SEES WILCOX.
CONFER ABOUT TRACTION.
Commission Proposes 1uditing Of
Al Corporation accounts.

Possibility of criminal action in connection
with the disclosures Of the business methods OF
the Metropolitan Street Railway Company was
indicated when District Attorney jerome held
a long conference yesterday with Chairman
Wilcox OF the Public Service Commission. They
discussed in considerable detail the evidence of
Mr. Qulgg's expenditures for "acceleratng
public opinion and his expenditures for the ad-
vancement or defeat of legislation affecting the
company's interests.
District Attorney Jerome has followed closely
the evidence brought out by William NJ. Ivlns.
Each day he has obtained transcript Of the
testimony. reading every line of 1t with care.
1t may be declared authoritatively that while
he has discovered the degree OF moral
obliquity" which he encountered In the dsclos-
ures resulting from the insurance investigation,
no evidence has been obtained yet which would
warrant criminal action against any OF the OFF,
GERS or agents of the transit company.
Neither Mr. Jerome nor Commissioner Wilcox
would say much about the District Attorneys
visit TO the commissions Office. Chairman Will
cox said that District Attorney Jerome had
called to see him on public business, and that
they had had talk on these affairs for about
three-quarters of an hour.
What we talked about may be left to your
own judgment" he added.
Mr. Jerome was not more communicative. He
vouchsafed that he called to see Mr. Wilcox
about public business. which would not b.
helped by general public discussion at this
time.
The District Attorney. II is known. will de-
vote quite as much attention TO the testimony
in this investigation during the next week or
two as he has been doing for several days back
Commissioner Wilcox appointed yester-
day a committee to consider the question of a
public audit OF the accounts OF all public ser
vice corporations under the jurisdiction OF the
commission. The commission under the public
service commissions law has power to prescribe
the form Of accounts TO be kept by these cor
poratons.
If the public audit scheme he adopted 1t Will
mean nothing less than that an employe Of the
commission or an accountant appointed by the
commission will wise every bill and voucher pre-
scnted to the commission, inspect the books
and papers at frequent intervals, and hold up
or sanction all issues of stock or bonds before
the money for which the stock issues were made
actually has been spent Under such a system
no yellow dog funds" could exist and there
would be little chance of spending money for
improper purposes. Money raised on bond is
sues for improving the service could not be di-
verted TO payment of back interest charges.
Lobbying would not flourish when the vouchers
lobbyists expenses were paid.
Commissioner Maltbie offered the resolution for
such committee at the public meeting of the
commission yesterday
I'm this investigation, as we'll as in legisla-
tive Investigations prior to the establishment Of
this commission" said Commissioner MaltbIe
repeatedly 1t has been demonstrated that i'm
proper methods of bookkeeping and of charging
expenditures have prevailed with certain cor
porations. Proper accounts have not been kept
in many instances and it has been impossible
for this commission and for others to determine
exactly what has been done with capital and
revenue receipts.
"These conditions. every one must admit
ought not to continue. and my purpose in offer
ing this resolution is that a committee may be
appointed to report method which NAV pre-
vent them. Every expenditure should be exam
ined and approved by a professional accountant
who is In the employ of this commission and
not of the corporation, and the account TO which
such expenditure is to be charged should be de-
termined by such accountant.
Companies which have kept proper accounts
heretofore. and which have charged all times
such system 1t would in way interfere
with their operation, and would In fact be an
additional guarantee OF their soundness and
proped management"
After the meeting Mr. Maltbie said: "Of
course such a system of public auditing would
entirely prevent the payment of dividends out of
capital 1t would also prevent expenditures of
the yellow dog variety being charged TO any
Continued on third page
,FC