Omaha daily bee., 1919-03-15
MEMBERS
PURCHASED COAL
FOR THE STATE
Investigation by Joint Com
mittee of Legislature Digs
Into Fuel Question and Meth
DDS of Doing Business.
From a Staff Correspondent.

/
Lincoln, March 1.-Two transac-
tons, involving E. o. Mayheld,
member of the Board of Control and
| Leo Matthews, secretary of that
body, and the National Supply COM
pany and the City Fuel company.
and indicating hazy bookkeeping
methods. occupied the attention Of
the joint committee of the house
and senate investigating the Board
of Control, in the inquiry proceed
ings today.
The amounts involved is an item
of S72 twice charged and credited
to Z. 0. Mayheld, and $l8 missing
somewhere in the account of Leo
Matthews, all growing out of the
purchases of coal from the City Fuel
company as the retailing agent for
t. e National Supply company.
The evidence would indicate that
Mayheld is credited with twice pay
ing $40 on account, and Matthews
paying $l8 on a $50 account and re-
ceiying full credit for the same.
Sells to Board Members.
o. d. Corey of the City Fuel
company of Lincoln, was the first
witness put on the stand during the
morning session. lie testified that
he had sold coal to Chairman
Gerdes of the Board of Control, to
Mayheld, another member, and to
Leo Matthews, secretary of the
board. All of the Gerdes transac-
ftions. he testified to, were paid by
Mr. Gerdes and properly credited.
Corey testified that all of the
transactions were in accord with
customary business practices and
that he had supplied other custom
ers, including the employees of the
National Supply company, with coal
belonging to the latter and from
pile stored in the Rock Island yards,
and carried all of the transactions
OIL the books of his firm.
Testifying in regard to the Leo
Matthews account he stated that
the latter had ordered 1000 pounds
of coax at SO per ton, January Is,
1918 and had received check for
this, February II, 1918, Febru-
airy Is, 1918, Matthews re-
ceived another two tons of coal at
the same price, and March II still
another two tons at the same price,
$50 in all, which Matthews was in
debted for the coal. On June e.
1918 the condition of the account
was called to the attention of Mat
thews and he stated that he had
paid $l8 Of it to the National Sup
ply company. Inquiry over the
telephone verified this, said Mr..
Corey. and on this showing theSac-
count was transferred to the Ma
tional Supply company.
Coal to Mayfied.
Mayfield's account, according to
the books of the City Fuel company,
indicated that he had purchased
1000 pounds of Arkansas semi
anthracite coal December IS, 1917.
at SO per ton, with all additional
wheeling charge of 50 cents per ton.
December 20 he received an addi-
tional 5000 pounds of the same coal.
$33,25, making a total charge OF
$52.25. The books showed that on
January 5, 1918, he was credited
with a payment of $52.25 which he
made at the office, in the form of
check.
February 10, 1918. Mayfield was
again charged with $1,000 for 1000
pounds of coal, March 2, the same
year with SO for $1,000 pounds. and
on March 7 was given credit for
$l.90 as an overcharge, and on April
l9, 1918, a credit of 500 for coal re-
moved from his cellar; on the same
date he was given credit of 5000
on the books by loying his account
charged to the National Supply
company.
Too Much Fine Coal. :.
Explaining the $40 credit Mr.
Corey said that Mayfield had COM
planned that there was too much
fine coal in the loads taken to him
and the company had removed the
slack and had dumped it on the pile
belonging to the National Supply
company in the Rock Island yards.
Mr. Corey testified that it was
customary for his company to look
to the National Supply company to
square the individual accounts of its
customers if those individuals did
not pay the City Fuel company.
II. B. Johnson, secretady-treasur-
CIR of the National Supply company,
shown the Mayheld account on the
books of his company, said that it
appeared to carry duplicate credit
and debit charges of $72. He adj
mitted that there were two account
sheets introduced in evidence and
that one was an original, while the
other was an account which had
been credited during the time that
the investigating committee was at
the office of his company. He said
after the account had been called
to his attention he had traced it
back and had found it to be incor-
rect and had prepared the new sheet
TO show a correction. He testified
that he could not make an eXplana-
ton of the error.
Present to Mayheld.
On cross-examination by Repre-
sentative Jeary he testified 'that the
books showed that on July 3 10000
pounds Of coal at So per ton had
been delivered to Mayheld, and that
February 5 a credit Of $72 had been
given Mayheld, and a notation
showing that the credit had been
charged to the salary account off.
f. Searle, president of the company.
The duplicate bank deposit slips, he
testified, would not show the credit
had been made by check.
In reply TO a question by Jeary,
Johnson said: AT the time the in
vestigating committee came to our
Office to investigate this matter, il
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