Omaha daily bee., 1919-03-15

for coal; on December q Of the
same year with SCI, showing that
he was now indebted TO the COM
pany III the sum of $50.
An error was shown OF record in
the books of the National Supply
company, in entering the Matthews
account as an employees account,
but this had been corrected by Mr..
Ruark of the company. by nota-
ton on the ledger: Invoice to
Matthews only" This notation was
made December 10, 1918.
Z. ]. Robinson, public accountant,
examined the books of the National
Supply company, and of the City
Fuel company, found that $l8 of the
Matthews account had gone astray
and that no explanation of what had
become of it could be made.
Talked With Holcomb.
B. S. Swift of the National Supply
company testified that before the
contract between the Board of Con-
troll and Z. Z. Howell, as purchas-
ing agent, had been entered into, the
witness had been to Judge Holcomb
and had talked the matter over.
Gerdes and Mayheid were not pres
ent, to the knowledge of the wit
ness.
Afterward the proposition was
made that Howell be the purchas-
ing agent and the members of the
board were assured that the Nation
al Supply company would place all
of its purchasing facilities and
mine connections at the disposal of
the board to protect the state insti-
tutions in the matter of coal pur-
chases.
Figures on Profit.
The witness stated that his COM
pany under arrangement would be
getting a jobber's profit, which he
estimated was Is cents per~ton at
the time the federal fuel administra-
ton took charge of the fuel bust
ness and would probably average
Is cents per ton since that time
He admitted this his company was
furnishing the bulk of the coal to
such institutions as were covered in
the Howell contract, and that the
relations Of his company with How
ell were of such a nature that his
company officials had power to
write to the heads of state institu-
tons on matters relating to coal
supply and sign Howell's name.
Three letters of this nature were
submitted in evidence. They were
signed by E. Z. Howell, and die
tated by H. S. SIX"
Witness testified that had not the
Howells arrangement been made
that under the stress of conditions
that obtained during 1917 and 1918
the state institutions would have
been without coal at critical times.
Most of the testimony of H. T.
Folsom of the Union Coal COM
pany was in regard to the compare
tive merits of the different classes
of coal. He eontended that he
could have furnished the Board of
Control with southern Kansas
steam coal at a saving of $1.50 per
ton, as compared with the Arkansas
senni-anthracite coal furnished by
the National Supply company. That
there was no demand for the semi
anthracite in Nebraska as steam
coal.
Found Missing Money.
Surratt Of the National Supply
company stated that he acted as
purchasing agent and he had gone
into the account of Leo Matthews
and had found the missing $l8. He
had found that there were four
items, three calling for $l8 and one
for $2l, making total of SIS. On
investigation he had found that
Matthews had paid to the City Fuel
company, February 2, SIC, and to MS
own company OIL March II, $l8,
leaving balance of $50. The mis-
take was made by the National
Supply company, including an item
of $l8 transferred from the City
Fuel company without proper credit.
He had satisfied Public Accountant
Robinson of this and had cleared up
the account and Robinson would so
testify.
Attorney Wilson also stated that
the account had been cleared up to
the satisfaction of the committee.
Mayheld Pays Twice.
The only element of comedy in
ieeted into the hearing was i'll the
n..-,,. .,,.,,.As1.. e L Can.fae pract
dent Of the National Supply COM
pany. His testimony was in regard
to the $72 involved in the Mayfield
account He testified that Book
keeper Johnson of his concern,
some time in January or February
had called his attention to the fact
that Mayheld had paid this item of
$72 twice by check and asked what
to do about it.
Give him credit for it and charge
my salary account with that
amount"
"You mean you placed this over
payment to your credit" asked At
torney Wilson.
yes" was the reply. what are |
you going to do with it,"
SearIes Don't Know.
"I don't know" answered Searles. !
"Are you not going to pay it
back?"
my Godp exclaimed the witness,
Nobody ever sent me back any |
money!
Searles testified that this was the
first time in his experience that he
had ever received an overpayment !
and the only safe place for it was
in his salary account. Asked what |
his salary as president of the COM
pany was, he replied $1,000 perl
month, plus $72 overpayment, but !