New-York tribune., 1907-10-10

AWAITING distribution" The money paid.
Mr.. sayre believed, for two loans made on ac-
count of the company-one of $4,000 and one
of sls70O-and the accrued interest They were
not what YOU might consider regular loans so
he had not carried them IN the bills receivable
account
And there was no entry of the loans made IN
any Of your books, but the loans were sub9e-
ouentIy repaid by this check and that was car
ried in your suspense account" asked Mr.. WINS
THAT is right"
And it has been so carried since 1904. Now,
20 whom were those loans made?
II could not say"
rs there anv record in the Office which viii
show"
Not in my Office"
MIR. CRAvATH WAKES WARM.
An item Of S20sO33 80 to Kuhn. Loeb < Co.
on September 80 1902. caused considerable diff
ncuty before Mr WINS got it Strengthened out.
= was entered in the bills receivable account.
and he took il for a loan 10 the banking firm.
Eventually Paul d. Cravath explained that it
was check drawn 10 Kuhn, Loeb 6, Co. 10 take
over a note drawn BY p. H. Flynn for 100000.
carrying 1888 80 interest. He grew warm at
the criticism of the companys books by Mr..
company's minutes showed precisely what the
transaction was and for what it made
1T remains to be shown TO the commission
what this was all about. and in what connection
this payment made and that is involved i'm
the contract concerning the purchase of the
franchises in The Bronx which were purchased
incident TO the arrangement with Kuhn, Loeb
& Co, and so far as this commission is inter
ested the story of which will be told in the in
vestigation concerning what was done with the
SD. .4000O0. This was a payment on account OF
a contract with Flynn for the acquisition of the
franchises which have never been exercised. and
concerning which I shall call Jacob H. Schif at
the proper time" retorted Mr.. WINS.
Vouchers Cor s3S.S36 2S paid TO H. D. Mac
Dona since 1904 were identified by Mr.. Sayre
All the items were charged TO property and
franchise" account. The payments were for
services amounting 10 $500 year and for eX-
penses for out -of-town trips, typewriting and
stenographic expenditures, telegraph and tele-
phone messages and similar payments
n { Moorehead was next summoned His
task this time Was TO identify and 10 explain
where nossibIe the vouchers submitted by H. II.
VreeIand for the SI13.3l6 Of nearly 100000
which he received and for which he deigned not
10 submit any memoranda. Two of the vouchers
were dated October D. 1901. One. for $4,000, was
for exDenses in entertaining delegates to the
convention of the American Street Railway As
sociation: the other, $4,000. was a payment 70
H A Robinson. treasurer of the association.
Most of this Mr.. Moorehead said was repaid by
other roads whose representatives attended the
convention.
VOUCHER OF no ACCOUNT.
The next voucher, for $1,000, dld not tel Ior
what the money paid
sS pouiVaept VOucner,
except so far as you yourself are concerned as
q bookkeeper?" commented Mr.. WINS
That is true" admitted Moorehead.
On Nav 21 1902 appeared another formal
voucher" for $4,000. special disbursements on
account Of construction" charged TO the con-
struction account by Mr.. Vreeland's orders
This was within the period for which the books
and most of the checks were lost or destroyed.
The witness said he could not tell whether this
particular check had been lost.
Taking I'D an item of $50 749 96. which ap
pesred in the accounts receivable under date Of
June n. 1905. 10 the State Trust Company. Mr..
Woorehead said il had been repaid As TO two
other items one of $4,000. July 4. 1898, and
one Of $4,000 March %. 1900 he could not eX
plain. At the end of the hearing Paul D. era
yath had the following statement spread on the
records concerning Mr.. Vreeland's unvoUched
expenditures:
The payments 10 Mr.. Vreeland for which no
vouchers were furnished all autedated July l,
1900 The Vouchered items aggregatins S123,-
316 may be classified as follows: Construction
salary at the rate of $4,000 a year for 1903.
I9O; 1865, 1906 and 1907. $4,000; special dis
bursements in small! amounts, S34566; conven-
ton accounts, S13500; electrical convention.
ST. Louis exposition, 1904, $3.50. and a special
disbursement Of May 21. 1902 $4,000; making
the total S123,316. The foregoing statement is
subject to this qualification, that there is an
unveuchered item as of October %, 1902, for
$1,000"
Mr. Twins put in evidence extracts from the
minute book Of tie Metropolitan Securities Com
psny showing the complicated system of hnan-
cial transactions between the various companies
in 1902 In borrowing 100000 from Kuhn Loeb
& Co. to enable the Interurban to make that
payment TO the Metropolitan Street Railway
Company.
Mr.. sayrs then identified the minute books of
the executive committee and Of the directors of
the Metropolitan Securities Company, which Mr..
WINS introduced, he said, that the commission,
having authority TO recommend legislation,
might see how such affairs were conducted. The
entries in the minute book of the executive COM