The New York herald., 1921-12-14

lun bases a claim OF the clubs solvency.
admitting at the same time, however.
that the audit. now almost completed.
allowed for an equity of approximatei,
100000 In the Lexington avenue prop
erty. Mr.. Boland, ON the other hand.
insists that the equity. If any exists, will
not exceed $4,000.
Mr. Borglum believes the club can be
kept alive by winding up the affairs of
its four subsidiaries, the Army. Navy
and Civilian Board of Boxing Control,
Inc. the National Sporting Club OF
America. the International Sporting Club
Corporation and the National Boxing
Association. and by the clup members
then. sharing pro rata whatever deficit
may exist. Such proceedings are de-
c,ared useless by Mr.. Borland. who says
the only logical method is to terminate
the business OF all five bodides and to
then start new organization out OF the
ruins ION a businesslike basis II the
members feel so inclined. 1t Is Mr.. Bor-
lands claim that the four subsidiaries
suck the life" out OF the international
Sporting Club. Inc, through interlocked
directorates.
Some expenditures which Mr.. BorIand
characterizes as little short of malicious
are termed foolish by Mr.. Borglunl and
due entirely TO the failure OF Mr. Gavin
TO realize confidence Is born of coop
Grafton" One to which the committee
chairman called particular attention was
the payment of $500 to Georges Car
pentier for getting into the ring with
Major A. J.. Drexel Biddle. formerly pres
ident of the club, for an exhibition bout.
The French fighter received this amount.
Mr.. Borland charges, for merely remov-
ing his cravat while Major Biddle took
off his coat.
Entertainments held in the Commo-
dore Hotel absorbed s48,377.15 of the
money raised to erect the clubhouse
and payments 20 Mr. Gavin, the clubs
general manager until October 81.
totalled $76.141.03. The three bouts put
on by the club. between Fulton and
Wills, Carpenter and Levinsky and
Herman and Lvnch. cost s294.764.17
to stage. The gate receipts totalled
s254.3S6.s4, leaving deficit OF $780,
377.23. The amourt Of money sunk
In the clubhouse property for purchase
of ground. excavation work. letting out
OF contracts, DC. is placed in the audit
at S51S.02S.62. of which amount only
S199,S25 was expended in acquiring title
to the property.
Lax Dusiness Methods.
'It would appear from our examina-
ton that the financial affairs OF the
organization have, to say the least been
conducted in a yery loose and unbusi-
ness like manner" the auditors say in
their preface to the report "The dis
bursting of expenses out OF cash receipts
instead Of through the bank accounts
the continual drawing of checks to the
order of cash. the lack of proper isup-
porting vouchers ant the needless merg-
ing OF the finances OF the two organiza-
tions bearing witness to this fact. Also
IL would seem that the management has
been extremely liberal in the matter Of
expenses, &C.
The audit made for the committee in
cluded all transactions from October.
1919. when the club was organized, up
to November 80. II revealed that no
books ever had been opened for the
club. all OF its transactions being carried
on the books OF the International Sport
ing Club Corporation. which was or
ganized in September 1919, and that no
bank account was opened In the clubs
name until July 22 last. The transactions
of the two bodies were merged 80 closely
that no demarcatlon could be found.
Checks for cub dues were deposited
to the credit OIL the corporation. No
receipts for the various boxing bouts
were entered IN the club books, nor had
they been deposit I'd In the bank ac-
counts. The auditors found that dues
totalling s127.730 were credited to the
corporation account and the account at
the same time was charged with ex-
penses for the san.e amount.
Sale Of bonds and receipts from
pledges totalled $720, ,S6.67. Dues and
Initiation fees'' brought In s1S6.s7o, and
life memberships at $1,000 each totalled
10000. The gate receipts of the Ful