New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-04-26
West 125th Street, 9TH and Sth AYES.
EXPLAINS FERRY DEAL
MET. MEN GOT S755 900.
Philadelphia Broker Tells His Part
IN Hall s COrtlandt Sale.

rso-re A HUM. Of the brokerage firm Of HUM
90 If Philadelphia one of the last witnesses
..o-a ths grand Jury that investigated the Metro
.,,,s, street Railway Company told of the part he
,.vss in the Wall & Cortlandt Streets Ferries
-. 5sel bringing out the fact that he had sold
.soo shares Of Electric Storage Battery stock for
.s55 200 and that that amount went 10 make up
,-s sass coo paid for the line
.-Nv recollection he told Mr.. Jerome. is that
yo,,,a-v 90 1900 We received from New York
,sne shares OF the Electric Storage Battery Com
-x stock and also checks of 100000 each from
,,sss-s RYAN Dolan. Whitney. Elllins and Widener,
,.b instructions 10 get checks from Mr.. Elkins,
y, vi5ener and Mr. Doan in exchange for these
s,d remit 10 New York
ave sold the storage battery stock for s255.ooo.
- mat with the checks made s555. 600. and. 10
-. hest Of ny recollection, I brought that sum
,rs- 70 New York and paid II 10 Mr.. Whitney. i
,-,r tnou that from the simple reason that my
sisss mas with him ! would not have delivered
=. syr, 70 anybody else without a voucher"
mid ,ou deliver the checks or did you get a
s-st- on Philadelphia" asked Mr.. Jerome
81 GOT & draft Philadelphia
.,Esow much was your draft Philadelphia for"
three hundred and ffty-five thousand dollars.
think
And the draft on New York;?
-Four hundred thousand dollars"
do vou know what became Of that draft"
IT delivered il Nj Whitney
.e7yba- conversation did you have with him.
y brought the checks over myself. and mad
,hsn drawn 10 my own order. and II Is my recon
,sction that Mr. Whitney had indorse them over
% gr TreelanG From my recollection thlnk
insarssd everything, the entire $1,000. 10 Ny NTee-
land
In his reply 10 the Amory charges Mr. Jerome
said he knew that certain petty cash vouchers
known as short vouchers. which counsel Tor me
copnsrv put IL to the cashier for disbursements
~ Investigators had been destroyed at the end OF
each wear. but he had no knowledge Of the de-
x;ruction Of the books Of that company until II
was brought out during the investigation OF the
marlborough Metropolitan company by the funhc
Service Commission. The minutes OF the gTand
iurr show thai the District Attorney was not cross
examined or examined in any way IN connection
with his reply the Amory charges
Charles ( I.udlam. an expert accountant EN-
ployed bv Haskns & Sells when lie appeared as
witness said his examination Of the Metropolitan
cornpary's books showed its bookkeeping methods
were out OF date and antiquated- On the other
hand te testified with equal positiveness that he
found nothing in tire books that aroused his snspi-
cions or that would seem TO indicate that they
were SO kept as 20 cover up transactions Of sus-
picious or Illegal character. That the company
hsG charged millions OF dollars to its construction
which il had not expended for construction
NJ Ludlam denounced as pure rot
Neither Dir. Jerome nor any % the grand jurors
asked Mr. Iudam 70 explain how the $4,000 in
eluded in the purchase price Of $4,000. approXi-
nately. which the company paid for the Wall &
Cortandt Street Ferries line was carried on the
books Earlier testimony had shown that this
amount Was repaid by III. Whitney 10 the men who
advanced Ir-Rran. whitney. Ekins, Widener and
Dolsn-fr0m this purchase price. II was originally
advanced TO him. presumably. for contributions to
political campaign funds
1.-f
railroad corporation 10 keep presidents office
petty cash fund he said that This fund varied
according 10 the size OF the corporation from sew
eTai hundred dollars month 10 several thousand
month y have IN mind one corporation said
Re. That PAYS its president $4,000 month specif-
esly under the direction OF the board of directors
For which he renders no account whatever?
asked Mr. Jerome
Ee be spent BY him the interest OF the COM
n@ny according 10 his best judgment" replied Mr.
iutlam
Sc" saic Jerome. in a corporation large as
The Metropolitan Securities Company the annual
expenditures Of petty cash running from 5000 20
Sa"e would not be unusual2'
II would suggest anything 10 my mind said
NJ Ludlam, provided that they were properly
approved"
The president was rot called on for any ac-
counting except that he made petty cash dis
bursements through his office?' asked Jerome
No. sid Mr. Ludlarn
You would say" asked Jerome that millions
Of collars had not been expended in construction
accounts and Yet put on the books Of the company
az 50 exDended?"
would say that pure rot j know POSI-
nFeiy that il was all properly accounted for
After denying that the Metropolitan company had
MADE false or misleading statements in regars TO
'ls condition in reports 10 the railroad commas
soners, Mr.. Ludlam explained that its rather anti
oaa'ed method Of bookkeeping was due 10 the
nshy amalgamations IT had had with other lines.
Inc system would have been all right for smah
companies" he said but for one as large as
tnls has become"
Mr. LudIam said that when he controller 1T
'ss his practice 10 caeck all the companys cash
sho securities and 10 balance them against the
seaefal books Of the company every two or three