Semi-weekly herald., 1912-02-26
IN excess over cash book Of ss17.25.

an excess over cash book OF $317.25.
This cash book was kept in lead
pencil and contained number of
erasures and interlineations also men,
oranda seemingly having no connec-
tion with the cash account. In part of
the book the debts and credits are on
the wrong side. Mr.. Van Banker used
the same ledger as Mr.. McNicholas
but neglected to close the old accounts
continuing them as open accounts
thereby causing considerable confus-
ion. We are unable to separate the
accounts as kept by the two different
persons because of neglect in dating.
Only way they can be separated or dis
tinguished is in the handwriting and
even then person cannot be sure. In
the mill ledger kept by Mr.. Van Dani-
ker the debts and credits are in many
cases upon the wrong side there are
not proper divisions in dating as to
years and number of accounts have
been closed in the handwriting of
another person who failed to indicate
the year in which payments were
made. He also failed to continue his
bank account with the First National
bank after November 1, 1909. A num-
Der of checks were issued during this
period and no account of same, but,
they were presumably given to cover
notes held by the Durango Trust
company.
From August 16, 1910, it seems the
directors, Wride, Cook, Frazer, Banks
and Sewers are responsible for the
deposits in the First National bank
until January 20, 1911, which sum
amounts to $2,737.77. Secretary
Wride checked against this account as
per check book to the amount of 49,
477.34. 1t will readily be seen that
checks signed by Wride amount to
considerably more than he is credit
ed with depositing by the bank book.
We find no original company record
during this period showing sources
and amounts of collections, deposits
and expenditures, and have been fore
ed to take these figures from the bank
book and checks returned.
January 2, 1911, Mr.. c. A. Brown
assumed his duties as manager of
your business. He opened new set
of books but failed toe lose the ac-
counts in the old ones and carry the
balances forward to the new, he also
failed when payments were made on
old accounts to credit such payments
to those accounts. So you may un-
derstand more clearly we will cite just
one of many instances. Your mill
ledger, on page 81, shows the account
of Grant Clifford, Feb. 10, 1910, he is
charged with $26.94-Decembe 10Th,
year not given, he is credited with
$1,000 for team, leaving balance Of
$16.94. AS your ledger stands Clifford
still owes the company that amount.
However on page 2 of Mr.. Browns
cash book an item appears on the
debit side as follows: Grant Clifford,
S16.95, indicating to US he has paid
the sum. In contradistinction to this
we cite another of many instances.
Page 267 of Browns ledger contains
an account with Mr.. P. G. Ellis. On
the credit side of this account the
item: November 1, year not given,
$150.00 This indicates to us your
company owes Mr.. Ellis the sum of
$4,000. Page 10, Of Browns cash
book contains this item, on credit side:
November 1, 1911, Expense, P. G.
Ellis for professional services $780,"
This indicates to us that amount
has been paid and the account bal
anced, and yet Mr.. Brown informs US
the amount referred to has not been
paid.
Taking Mr.. Browns cash book and
proceeding on the theory that it is a
cash book, from January 2, 1911, to
November l, 1911, shows receipts to
have been $5,s73.7O and expenditures
$5,951.S1, showing he paid out SSH
more than he took in. We are salts
fed that Mr.. Brown carried items in
his cash book that were not cash, but
we have no right to separate same
and treat them otherwise. Browns
bank deposits are not shown in his
cash book but the checks paid out
are. In the bank book of the La Plata
County bank he is credited with hav-
ing deposited s2,161.e6 and bal
ance is shown in favor of the COM
pany of s50.32. Owing to the fact
that the cash book showed more cash
passing through his hands than would
actually be the case we took the va
rious ledger accounts that would show
cash taken in and paid out in order
to check against his cash book. This
shows receipts s6,69O.so and expendi-
lures s5,56l,09. Mr.. Brown was called
in and asked to explain his method
and gave an explanation of same.
After using considerable time and
energy in endeavoring to unravel the
Inconsistencies of these books we are
forced to admit that as logical rec
ord of transactions they are absolute
ly unintelligible to us. We are unable
to definitely trace the cash actually
received but the cash paid out can be
L Il