The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-05-02

took. and paid the company Sls.siGs.
and thus recouped myself for the en-.
penditures made for the company's
benefit The transaction was fully ex.
planned to my directors. and approved
by them.
with reference to the other miscel.
lsneous notes: These have all been
| iiquidated In full with interest in cas,
or securities turned over 10 the com.
pany. except $1,000 which was ex-
| pended to pay the first installment on
| the capital stock Of the Swanton a
Apburgh Railroad. and which Will later
| be returned by the Boston 4 Maine
Railroad.
SAYS AGGREGATE OF NOTES tx.
cGGoo MONEY DRAWN.
the. New Haven Company has n,
contingent fund. and the sums repre-.
scented BY che notes a. temporary
vouchers we're drawn by me TO purchase
securities or property for the company.
and were frequently returned BY me be-
cause not used. though I was charged
for and paid interest during the time
the moneys were In my possession.
exceeds the moneys drawn by me. be-
cause this aggregate includes renewals
OF notes. and tho same money appears
Ia this aggregate again In the case OF
each renewal
The accountant has assumed that Mr..
billiard received from the New Haven
Railroad q proft of S2,70OOOO on his
transactions with the company In Bos-
ton and Maine stock. This IL an enron.
eous assumption.
An accountant who Is wholly q book.
Keeper may be excused for not paying
attention to anything except nominal
values a. stated on books. Every 81.
perienced man OF business knows, hos-
ever. that hook values are not always
the same a. actual values.
Mr.. Brown found that Mr.. Billiard
received for the Boston and Maine
stock notes Of the New England Invest.
ment and Security Company, which on
the books OF the New England Naviga.
t'on Company we're valued at par to the
amount OF 9is..5o.0oo.
There notes bore interest for the nrpt
hve years At the rate OF Q per cent, for
the second period OF nve years at 4 per
cent. and for the third period Of Ave
years at per cent.
The actual market value OF those
notes was much less than this book
value OF $16250.000. From Mr.. BIZ
lard's point OF view what he was re-
ceiving was worth what Il would act
ually fetch In the market. IL sold.
cR'TIcISEs the Government
EXPERT.
M. Bro, b. has made no short TO
md out what this market value was.
His estimate OF a profit to Mr. BILLIARD
"a based on a book value far in excess
OF the market value. ~ "a evident from
tho point Of view " men who deal In
actnaiities.
AS matter OF fact, the notes OF the
New England Investment and Security
Company have been turned over by Mr..
Billiard to the Billiard Company, and
bonds OF the Billiard Company. Of q con-
s:derabiy smaller amount. are held by
The New England Navigation Company.
so long as this state Of things lasts
the whole transaction 10 a. yet an un.
settled one. and q very unsettled one At
that
TT II impossible for me, or anyone
else. to cay moro than that about II, |
because II II dinscult to estimate the
actual value Of either the notes Of the
New England Investment and Security
Company or Of the Billiard Company.
When this transaction IL completed
II will be found that while Mr.. Billiard
has received the protection which 10 his
due after having taken the great risk
that he did In the initial transaction. |
he will not have received as net proH'
any more than his worst enemy would
say he was amply entitled TO-"
ASKED 70 EXPLAIN THE VAN.
isHiNo OF $i2.ooo.ooo.
After Mr.. Msiien had conplsted his
formal statement Lawyer Choate asked
for an explanation. Of what had b. |
come Of the sls.o0o.ooo difference be-
tween the book value and the tangibie |
property Of the New York. wsstchester
and Boston Railroad.
Il wish ! could givs an expia nation." |
Dighsd Mr. Msllen, but I don't know |
v