The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-11-02
PASSENGER OvERDRAFTS
ARE ACCOUNTED FOR IN
ANNUAL STATEMENTS
Accountant Testifies Over
drafts Cannot Be Charged
to Company or Stockhold-
ers as Shortage.
III. C. Haselneier Retains
$4,000 Balance in Business
Until 1913, Accountant
Tells the Jury.

That the overdrafts Of H. G. Hase-
meier, John Hasemeier and Ed Hase-
meier. as testified to in the cross
examination Of Accountant Schlautter-
bach, are accounted for in the annual
statements Of the company, was the
main point brought out by the plain.
tiff In the redirect examination of
the plaintiffs witness Monday after
noon at the Observation-Disclosures trial.
On account of this fact, the over
drafts can not be charged as Short
age" against the company or against
any Of the stockholders, said Mrs.
Schiautterbach. The shortage for
which Miss Bentlage is accountable,
he said, IL over and above these over
drafts. He said that all of the over
drafts are recorded in the books In the
handwriting of Miss Bentlage. and are
carried forward az assets of the COM
pany.
The accountant testified that when
ever any Of the Hasemeier boys over
drew their salary or dividend accounts
for the year, 1t was placed as an asset
of the company, meaning that the COM
pany was creditor to that amount. In
many years, he testified, the salaries
and dividends were not paid to the
Hasemeiers, and in those years, the
was left in the business and counted
~ liability. or money to which the
corporation was debtor.
None OF the Hasemeiers do any pri-
vate banking. he testified, and. conse-
quently, whenever any Of them had a
balance on their accounts. they left 1t
In the business and it was included In
the surplus Of the business.
During the first few years, he testi-
fed. HI. G. Hasemeier overdrew his
account. This was true until 1911,
when H. c. Hasemeier had a balance
on his salary and dividend accounts of
over $4,000. He retained this balance
until 1918, the accountant testified.
In almost all the years. however, the
dividend accounts of the Hasemeiers
were overdrawn, but during the past
few years the salaries paid have more
than overbalanced the dividend with
drawals, leaving q balance to their
credit, according to the testimony of
Mr.. Schlautterbach.
The testimony revealed the fact that
during the first two years of the bust
ness no dividends were declared. and
the profits termed as surplus and
turned into stock. The capitalization
of the store has been 100000 since It's
organization in 1904. although the mer-
chandise inventories ranged from $4O,-
900 to $4,000 since that time. This
enabled the company to have sur
plus. according to the accountant.
The surplus, as shown by the an
nual reports, in the handwriting of
Miss Bentlage. amounted to about $685.
900. The testimony showed further.
that the company. according to the
figures presented, which the account
ant said were in Miss Bentlage's hand
writing, did not declare dividends on
any money except what was clear
profit during the respective year in
which the dividends were declared.
This point in the plaintiffs case will
be attacked by the defense, it Is I'M
derstood, who attempted to prove by
the accountant that the dividends de-
clared during any respective year was
greater than the profits actually made,
and that the continual overdrawing Of
salary and dividend accounts was &C
countable for the shortage, as it took
money out of the company's business.
This was denied by Mr.. Schlautterbach
in his redirect examination.
The witness was questioned further
Dy W1lITeu JeSSup IcSdIuAn6 oSc1
drafts.
I'm you calculations, do these over
drafts you have testified to in cross
examination, affect, alter, or change
in any respect the totals of shortage
that you have testified to-" Mrs. Jes-
sup asked.
They do not. The overdrafts or
balances have been included in the
annual statements as assets or liabil-
tiles against the company, as the case
may be, and 1 have found them cor
rect in every instance" replied Mr..
Schlautterbach.
Where were the shortages you tes-
titled tor" he asked.
"All Of them were in the cash book,
which is the only book containing a
complete record of cash received" he
replied.