The Bridgeport evening farmer., 1913-05-02

Il turned over $4,000 shares at less
than the market price to the Consoli-l
dated Railway, the New England Nav
igation company and the Insurance
fund.
"I was still considerable, ont. Of poc-
het for sums I had expended for the
company, in the manner I have here
indicated and in connection with pieri
leases In New York which It was nee
essary to have.
took and paid the company S49, ,S44. 3s
and thus recouped myself for the ex-
penditure made for the company'o
benefit.
"The transaction was fully explain, u
ed to my directors and approved b I
them.
with reference to the other mis-
ce1laneous notes:
These have all been Iiquidsted in
full with interest in securities and
turned over to the company. except S.
600 which was expended 70 pay the
Of the Swanton & A1burgh Ftaiftosd
and which VIII later be returned BY
the Boston & Maine railroad.
The New Haven company has no
contingent fund and the sums repre-
sented by the notes as temporary I
vouchers were drawn by me to pur-
chase securities or property for the
company and we're frequently return
ed by me because not used though Il
was charged for and paid interest DUR
ing the time the moneys were In nay
possession
''rhe aggregate of the notes very
much exceeds the moneys drawn by /
me because this aggregate includes re-
newa1s of notes and the same money {
appears in this aggregate again in the
case of each renewal"
Mr.. Choate then asked Mr.. Mellen
To 1114iT7
J. L. Billiard, of Meriden, Conn, ap-
peared to have made a profit of 81. 7OO.- 2
000
Mr. Mellen said:
1.-THE accountant has assumed that
Mr.. Billiard received from the New
his transactions with the company in
Boston & Maine stock
This is an entireIy erroneous as
AN accountant who is :
wholly a bookkeeper may be excused ,
for not paying attention to anything
except nominal values as stated on
books. Every experienced man OF
business knows, however, that book
values are not always the same actual
values.
-"Mr. Brown found that Mr.. Billiard
received for the Boston & Maine stock
notes Of the New England Investment
and Security Company, which on the
books of the New England Navigation,
were valued at par to tho!
of 6,25O,0OO.
''These notes bore interest for the
first five years at the rate of three:
per cent. for the second period of hyei
years at four per cent. and for the
third period of five years at five per-
cent. The actual market value of
.hese notes was much less than thisi
book value OF sic, 6,25O,OO0. From Mr..
BILLIARDS. point of view it was worth
a.
market if sold.
"Mr. Brown has made no effort to,
ind out what this market value was
His estimate of a profit to Mr. BfIlardl
8 based on a book value far IN ez-
sess of the market value as is evil
1enced from the point of view of men
who deal in actualities-
: "As a matter of fact, the notes OF
he New England Investment & Sc,
,urities Company have been turned
'ver by Mr. Billiard to the Billiard
Company and bonds of the Billiard
Company of a considerably smaller
mount are held by the New England
Navigation Company.
so long as this state of things lasts
he whole transaction is as yet an un-
ettled one and very unsettled one
1t that. 1t is impossible for me or
Lnyone else to say more than that
bout it because it is difficult to esti-
nate the actual value of either the
notes of the New England Investment
Z Security Company or of the Billiard
company.
s'Tf the Billiard Company should
lave occasion to realize upon its as
cts it would have to make a large
iscount from the face value of these
ecurities- which it owns. whereas tho
Jew England Navigation Company.
ot being obliged to realize and being
Bile to wait, win undoubtedly realize
ar. The difference between the two
ituations of the Billiard Company and
he New England Navigation Com
any is such that think 1t VIII ap-
ear to any man who hs@ dad exPeFAu
Continued on Gage - s5