New-York tribune., 1908-03-05
DISAGREE ON ASSETS.
NAY SUBPOENA JEROME.
JEROME.
Limburg Gains Nesc Points an Street
RaiIsray Suit.

A, Tho resun7ntion YESTERDAY of the suit
brought by Attorney General jackson to ois-
solve the New York City Railway Company there
was disposition on the part of the witnesses
called by II. r Limburg, the Attorney Generai
representative. 10 know little about the COM
pany's actual financial affairs, and one witness
H w Brown the auditor, was not certain
whether balance sheets showing the company
condition were taken year. more
often or less frequently There were aoIiiis
sions made right along by Paul D. CraFath' 'i'e
counsel for the street railway company lhHt
large amounts shown in the last balance sheet
were merely bookkeeping assets and shouio MOI
~ REGARDED as real assets in computing the coih-
,anvrs solyency. This was looked upon as an
admission tending to establish the Attorney
Generals case but Mr. Cravath did not thihk So
The largest item considered merely as booh-
leeninr asset was one of s5.I09541 This ap-
r,eared in the balance sheet but simply TO heip
out the books 1t charged TO consrucuoh
and equipment. According TO Mr.. Cra'a'h' 'iii'
was all in the regular course of keeping ac-
counts and did not have any flavor OF decepuoh
about
u-banever ANYTHING that was in doubt came
ND Nr. C-avath was ready with an offer 10 con-
fer with Mr. Lirllburg TO adjust figures and 1acIs
s. ..5 ,ba court Nr Iinburg again and again
said that his whole aim was TO determine lhe
reality Of the reported assets on given oa'e'
an6 50 far the bookkeeping assets have oe-
stroyed a good part Of the sum to'al on "Ii'' "
generally called the right side Of the column
G Noorhead was the first witness yester-
DAY He had been auditor OF the Ne" ioih
Cif1, Railway. had been at the heart Of the
finances Of the railroad, and was at preseilt Gil
assistant of H w Brown, the general auol'or.
a. an +he information from MI Moorhead would
have gone back Of 1906 Mr. Cravath succeeoeo
.n sfsetracting the testimony. and then MI LIN
burg called AIr Brown. who was supposeo ~
know all about the railways financial lna''ei'
UP to the present time
The frs- question Mir. Brown had TO answer
was about the So 1oo 541. but he did not nave Q
chance 10 say much about 1t, as MI u an
made the admission at once as TO It's user
es bookkeeping asset. Then Mr. Brown ad-
rnitted that the only franchise held py lie Ne
York City Railway was the so-calied faiSes
.-s,cbiee In this connection Mr. CraVath
made another admission Of an item as d DOCK
leening asset. 1t was for S491.6oo. and repre-
sented the shares of stock paid. out Tor the fdi-
sey franchise.
The matter Of depreciation was then brought
I'D and this led a discussion ABOUT InaiAe'
values of materials charged up in the assets
but everything went u al the voucher hsu e.
sfr Liraburg wanted experts 10 pass upon
these hut Mr.. Cravath tried TO dodge this issue
Liulburg, it is expected VIII nave 'iie ao'10'
values OF supplies cleared up
Joseph J. Bohe, an accountant. was 'he next
7-.-ness He made an examination Of the New
York City Railway Company TO assess It's tax
valuation for the franchise tax assessment his
statement was offered in evidence. giving the
stock valuations, although MI Cravath oo-
lected streruously-
wr Brown was then recalled for examination
REGARDING the computation Of Liabilities Tor ac-
ci6en-s He did not at first seem TO know any
thing about II and admitted that there were no
figures regarding this liability in the annual re-
ut There was an item Of 81 ,261 900 in the
balance sheet wi,ich Mr.. Brown admitted was
largely made up of damage expenses Mr.
Cravath objected remark by Mr. LiTnburg
that claims were liabilities. He said they shouid
not be counted such until they had been
esta blished and hence had place in a report
Of resources and liabilities
z " Sayre. the secretary and treasurer of
the Metropolitan Securities Company. was
called TO prove the value OF properties but Mr..
IIrnburg was met with immediate check
when h. attempted TO so outside of the COM
pany under suit. Mr. Sayre was asked whether
he was familiar with the value of the properties
in July OF last year. MI. Cravath objected,
saving that the witness was confused by such
q general question. Mr.. Sayre had 10 answer,
however. and he promptly said that he did not
know anything about il. Then the checks in
payment for the purchase of the New York City
Railway Company were called for and were
produced. He was asked for The balance sheet,
but did not have it. and admitted that one was
not necessarily prepared every year.
Then Mr.. LinbUrg, pursuing a new tack.
asked whether the witness knew where the
books were that contained the records of the
franchises OF the New York City Railway
COMPANY. The witness said that he did not
know but Mr.. Cravath came to his assistance
again and said that he would produce the in
formation that Mr.. Lnburg sought
4 ask you. secretary and treasurer of the
METROPOLITAN Securities Company said Mr..
Limburg. where are the voucher books show
ing these payments the loan of S23,
oe0o00?"
Those are in the possession of the District
Attorneys office.' said Mr Cravath, hurr;edly.
Mr. Limburg will subpoena Mr.. Jerome or
one Of his assistants to-day. The case then