Perth Amboy evening news., 1923-05-28

Amboy.
Attorney General Thomas Ne
Gran opened today's session oy tell
ing that on last Friday he and
State Commissioner of Accounts
Darby had visited the Donnell COM
pany offices at Perth Amboy and had
been given permission TO examine
the safety deposit vault of t4:c com
pany at the First National bank.
Expected Investigation
In the vault they found an agree
ment which was produced by Evans
today and read by McCran. 1t pro-
vided that whereas William j. Don
nell was Withdrawing from the com
pany, the common stock owned by
him should be bought by President
McDowall and Evans. with stlpu-
lation that if a judgment was rem
dered against the company in favor
of the state of New Jersey as a re-
suit OF the bridge purchase, then
Donnell was 10 pay so per. cent Of
that judgment, providing McDowall
and Evans at that time held ninety
per cent of the stock. This infor-
nation S-ould tend 10 show that the
/ company expected an investigation
! it was pointed out at the hearing,
| There was no date TO this agree
nent which was signed by Evans.
/ MeDowall and Donnen. Evans said
that the agreement was made on
I October 1s or 20. and when asked
why same was made. he said that
there was agitation for an inves.i-
cation, the papers declared an in
Vestigation was possible and politi-
clans in their addresses spoke Of
same. The witness said that the
Republican candidate for governor,
VIII a y Pgfr1vrar7 Eaf1 g n 4
abou- the purchase price being
$3.50, GOO and the value $4,000
The secretary said that he proposed
the agreement in a talk with the
company's attorney, stephen So
mogyi and the latter and NJ
Dowall thought same was a good
thins, and Donueu agreed TO il.
After the discussion regarding the
agreement had ended. the attorney
general had the stenographer take
a copy of the agreement. McCraH
then brought out that in a statement
of the Donnell company on Decem-
Der 81, 1921 it was shown that the
company owned $500 worth Of
government certificates and the at
tornev general asked a number Of
questions as TO why there was no
entry made on the books 10 show
that such bonds were owned by the
company. The witness was unable
10 show any entry in the books for
same saying that same was being
carried along as cash.
The attorney general asked the
witness why the bonds We're not
listed under investments and tho
witness declared that there IS 10
particular reason why this should
not have been done. McCran then
Il H.. oh Ta.as-
SIX months and what proof there
was regarding the purchase OF the
bonds Evans replied TO the latter
question by saying none.
In reply to a question put by the
attorney general regarding the time
when the certificates were sold. the
witness declared mot until about
January Is" The secretary was
then asked to produce the journal
of the DonneIl company and an en-
try on August -. 1922. was turned
TO- This was the first entry having
to do with the sale Of the bridge
approach property to the state and
the witness was asked about the
$1,000 bonds turned over to Cannon
and when they were turned over.
Evans replied to this question by
saying prior to August 20 and
he then said do not know off rand
which bonds these were The wit
ness wNs unable TO give a satisfac-
tory reply to the attorney general
as to why he did not make definite
entries into the books concerning
the bond transactions. At this point
/ the attorney general brought out,
YOU had a big idea to cover up
when you made most of these eU-
tries" The witness denied that he
intended TO cover up anything.
During the course of the examina
ton it was shown that an tenn for
IS322.77 which was credited TO the
Evans account as interest due him on
bonds. should have been sS2.277-
The attorney general was mixing Up
his questions throughout the exam
ination of Evans. going over a
number of the questions he asked
the company's secretary at the iast
hearing
Silzer's Letter
The attorney general asked the
secretary why they had not destroy
ed the Perth Amboy Trust Company
check stubs and vouchers and had
destroyed the First National Bank
check stubs. Evans explained that
they had received a letter from Gov
ernor Silzer last December asking
the company officers if they were
willing to open their accounts to
make possible an investigation. He
said that the company tried TO hold
everything open after that.
The witness later testified that
vouchers had been destroyed in jan
uary, month after the Silzer letter