Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-09-17
SALARIES PASSED AROUND.
Associated Packing Company Off
cials Drew Money at Will.


bookkeeper also testified that the
packing company had been forced
to stand much of the discount upon
liberty bonds and certificates of de.
posit. accepted upon stock sub
scriptions by the finance company at
face value. and turned over to the
packing company in weekly settle
ments. Discount losses. the books
showed. amounted at one time to
nearly $4,000, and Chesire testified
that this was wiped out by payments
totalling only $500, from the fl
nance company to the packing COM
pany.
The first three shares Of stock is
sued by the company. to Directors
Bump. Stephens and Russell, never
have been paid for, the testimony
showed.
Chesire explained that Mr.. Bump
had told him the checks covering the
stock were Somewhere in his files"
and would be turned over to the
company, and Cheshire therefore
listed the stock as paid In order to
make the books balance.
When the receiver took Charge OF
the property there was a slip pinned
to the cash book explaining this $500
discrepancy. and Cheshire testified
today that 1t was up to Mr.. Bump to
explain where the money for that
stock now is.
A few days before the stockholders
meeting Of last Feb. IS. Cheshire
said, he issued certificates sor eleven
shares Of stock in the cor. 1any, upon
Frisby's order, who explained that
they were issued in order to give the
men named In them the right to vote
at the stockholders meeting Frisby
declared, Cheshire told the court that
they would be settled for thru the
finance company later. but they net-
er have been paid for, SO far as he
knows. The men to whom this stock
was issued were M. M. Head. F. A.
Davis. o. M. Huber w. ]. Mcdonald.
r. E. Meiners, Peter Lamp and
George Sotka. At least five of these
are directors today.
In October, 1910, Cheshire said,
President Frisby instructed him
thereafter to make the persidents
weekly pay check $3.50, instead Of
500, as it had been Heretofore.
Cheshire did as he was told for
two weeks, and then Frisby came
to him with a personal check for
$500. instructed him to credit that
amount back to salaries, and re-
turn again to the former 800 a week
basis.
Early in January, 1920, however,
Frisby made up the deficit. He in
structed Cheshire to figure up his
pay at the rate Of $3.50 a week, back
to Oct. 8, pay him the difference be-
tween that amount and the amount
he had received, to make the check
$3.50 week thereafter This was
done. The back pay chack was for
$4,000.
It was sometimes difficult to find
out what money was paid out for,
Cheshire said. Two checks to Mr..
Bump which had been cashed-one
for $1,000 and one for s2,,700-came!
thru. and Mr.. Cheshire was unable
to figure what they were for. as
Bump had drawn his 800 week
quite regularly up to that time. So
the bookkeeper went to Frisby to find
out.
I'm busy-go and ask Bumpr was
Frisby's advice.
Bump was busy too, so Cheshire
took up his problem with President
Stephens.
1.-THE 500 a week that has been
coming to Mr.. Bump was Fairweath-
er's. salary Cheshire testified
Stephens told him.
Later. after a conference with
Bump. Stephens corrected himself
He said that he had been mistaken;
that the 500 checks were not for
Fairweather and the larger checks
must be advances" upon Bumps
pay. They were so credited.
Cheshire also said that Frisby and
enterprise at st. Louis, and that they
made frequent trips to that city. The
former bookkeeper was unable to say
whether these trips were paid for out
Of packing company funds, because
railroad travelling for the company
was done upon mileage books, which
the officers used without making, any
accounting, and expense accounts
covering the disposition of expense
money drawn by officers, were prac-
tically unknown in the offices.
Stock Purchaser Deceived.
Special to Times Republican.
Des Moines, Sept. It'll. B.
Schultz of Allerton, SIS years of age,
bought stock in the Associated Pack
ing Company on the promise Of stock
statesmen that they would help him
get back money invested in Inde-
pendent Harvester stock years ago.
He testified in the Associated Packing
Company hearing today that at one
time he bought $4,000 and on two
subsequent occasions he bought more
stock, $4,000 In ALL so he believed.
However, he later learned that in his
first purchase he had signed UP for
$500 more than he thought he had.
After many weeks had passed he
came to Des Moines and visited the
attorney generals office, where he