The Washington herald., 1907-10-05
JEROME AFTER QOIGG
Looks Up His Public Service
Testimony.
CONFERENCE WITH WILCOX
New YOrlk's District Attorney Busy
Concerning Disclosures of Inter-
Iy by Commission as 10 IN Annual
Public Audit of Corporation Books.

New York, Oct 4-District Attorney
Jerome is looking into the testimony
taken before the public service commits
sion.
He was in conference to-day with
Chairman Wilcox for about an hour.
and that is not the first time he has met
members Of the commission concerning
the disclosures that have been made
Alr. Jerome refused to-day to talk about
the conference, beyond saying that It had
to do with matters of public concern.
Mr.. Wilcox said It would be improper
for him TO talk. 1t is known that a copy
Of the Quigg testimony, as well as the
testimony Of other witnesses. has been
sent TO Mr.. Jerome
II is understood that Mr.. Jerome has
failed to find anything in the testimony
thus far that would enable him to begin
criminal prosecutions. The commission
appointed Chairman Wilcox to-day as a
committee 10 consider the feasibility Of
requiring an annual public audit Of the
accounts Of transportation companies in
this city.
Radical step Taken.
This is regarded as one OF the most
important, and probably the most radical
step, that the commission has taken
since its organization. The commission
believes that with such an audit, pay
ments to Quigg for "accelerating' public
opinion and the like would be impossible.
Whether the commission under the
D.. h9s ba 20
send an accountant into the companies
Offices in this way IS a question that
hasn't been settled yet
But if the commission decides on that
course. a special bill, if necessary. will
be introduced at Albany.
Commissioner Maltbie, speaking in IA
vor oT a public audit. said: "Iu the in
vestigauon before this commission, as
well as in investigation by legislative
committees # has been repeatedly de-
termined that improper methods OF book
keeping have prevailed.
1T has been impossible for tie COM
mission and for others 10 determine ex-
actly what has been done with capital
and revenue receipts. These conditions
ought not 70 continue, and my purpose
in Offering d resolution is that d COM
m:tyee may be appointed 70 report a
method which will do away with them
in the future.
Every expenditure should be examined
and approved by a professional aC-
coUntant I'm the employ OF the commits
sion. and the account 20 which each cx-
penditUre is 10 be charged should be de
termined by such accountant
Companies which have kept proper ac-
counts heretofore viii, I have no doubt.
welcome such "a system. as il would iu
no way interfere with their operation and
would in fact, be an additional guarantee
Of their s0undness and proper manage
ment"
safety for stockholders.
After the meeting Of the commission,
Mr. Naltbie elaborated. He figured that
such O system would prevent the pay
meut Of dividends out Of capital. and
would indicate 20 stockholders the safety
or risk Of their investments.
II a public audit system is decided upon
it will apply 20 all companies under the
commissions jurisdiction. including tho
T7 ann o.. if-tt- A''4 lNd ttt4Hilcr
question whether the State or the cor
porations themselves would bear the ex-
pense of the annual audit has not been
considered yet.
We haven't gotten into the details vet.
We are merely trying 10 determine the
souuduess Of the principles involved"
said Chairman Wilcox The chairman
added that he was believer In the max
imum amount OF publicity I'm the running
Of public service corporations The ac-
tion Of the Commission was attributed
chiefly 20 the admissions made by "Ac-
CgleratOT' Quigg.