Evening star., 1953-01-01

Finance Corp, and was making
reports to this agency as well as
the Interstate Commerce Com
mission.
Attorney General James P. Nc
Granery announced that six of the
counts related to statements filed
with the ICC and five with the
RFC. All of the challenged ac-
counts deal either with the
B. & O.s cash balance, the balance
of the company's sinking fund or
both.
Original Loan in 1888.
The company obtained an orig
inal loan from the RFC in 1888.
In 1914 the loan was extended and
the total became $50 million.
Three years later. Senator Tobey,
Republican, of New Hampshire,
filed a one-man minority report
with a Senate banking subcom-
rnittee accusing the RFC and the
carrier of fraud and collusion." :"
Senator Tobey's report was not
released until 1851. Shortly later,
w. Stuart Symington. then RFC
administrator, appointed a special
investigator. Attorney Joseph j.
Smith, jr.. to review the railroads
dealings with the Government.
Mr. Smith, special counsel of
the Federal Reserve Board. and
member of the law firm of Hogan
and Harrison, found after an eight
month inquiry that the charges
OF collusion were utterly ground
less and grossly unfair"
The case against the B. & o. was
submitted to the grand jury early
this month by Joseph A. Lowther,
special assistant to the Attorney
General.
No individuals Named.
Conviction on any one of the
II counts can be punished by a
maximum fine of $4,000. The
statute also provides that an in
dividual found guilty can be sem
fenced up to five years in prison
No individuals were named in
The indictment.
The II counts charged in the
indictment are:
l. On March 20, 1943, filed
report with the ICC stating it's
cash balance as of December 81.
1912, to be $10,373,109 whereas in
fact the balance carried on the
books of account was $50, $50 ,987. 81.
? On March "a. l943. in state
ment flied with the ICC, stated
that the cash balance as of Janu-
ary 81, 1943. was So, ,985, ,587, where
as the balance as carried in the
books was $32,272, ,465.86.
3. On April II, 1943, filed a
statement with the commission
showing the cash balance as OF
February %. 1943. to be $12,526,-
729. whereas in fact the books
showed the cash balance to be
$40.813.60 .60740.
/! AC3O DdAdHCCs
4. On May Is, 1943. filed with
the commission report for March.
1943, showing the cash balance
at the end of that month to be
I$17,380,155. whereas in fact the
books showed a cash balance of
$45 ,667 .033.46.
S. On June Is, 1943, filed with
the ICC a report for April, 1943,
showing the cash balance at the
end of the month to be $10,596,477,
whereas in fact the books showed
a cash balance of $38,883, ,355.52.
6. On April "a. 1943, filed with
the commission an annual report
for the year 1912, which reported
the general sinking fund balance
at the end of the year to be $685.
286,880 as of December 81, 1912,
whereas in fact the balance was
33 cents and so carried on the
books; and reported the cash bal
ance at the years end to be $10,-
373, ,109, whereas the cash balance
carried on the books was $38,659,-
o87.57.
T. On March 20, 1943, filed with
the RFC a general balance sheet
for December. 1912, in which it
stated the cash balance as of De-
cember 81. 1912, to be $10,373,-
108.91, and the general sinking
fund balance to be $28,313, 1892 81
whereas the books showed a cash
balance of $38,659,987.57, and a
general sinking fund balance OF
83 cents.
January, 1943, Status.
s, On March "a. 1943, filed with
the RFC a report for January
1913, in which it stated the cash
balance as of January 81. 1943, To
be $685., ,58720. and the general
sinking fund balance to be $28.-
310.509.97, whereas the books
showed cash balance of $32,272,-
465.86 and general sinking-fund
balance of SO cents.
8 On April II. 1943. filed with
the RFC a monthly balance sheet
for February. l943, which stated
that the cash balance as of Feb
ruary %. 1943. was $12,526, 1874
and the general sinking bal
ance to be $28,287.213.98. whereas
the books showed a cash balance
of $40.813,60740 and the general
sinking-fund balance to be SO
cents.
For March, 1943.
10. On May IT. 1943. filed with
the RFC a monthly balance sheet
for March. I943, in which it stated
the cash balance as of March 81
1943 to be $17,380,154.80 and the
general sinking fund balance tc
be $28,287,213.98, whereas the
books showed a cash balance Of
$45. .667 .033.46 and a general sink
ing fund balance OF SO cents.
IL. On June Is. 1943, filed with
the RFC monthly balance sheet
for April 1943 in which it stated
the cash balance as of April 80
194S was $10,596, ,476.86 and the