The New York Clipper (January 1918)

January 23, 1918 THE NEW YORK CLIPPER 35 RATS CLUBHOUSE COST $177,796 (Continued from page 3) pear in the minutes of the meetings -of the members of the union. A.—They were prepared by the general bookkeeper. Q.—And were they submitted to you? A.—Yes. Q.—And you signed tbem, usually, did you T A.—Yes. Q.—And were they read at the meet- ings? A.—Yea. Q.—Did you at any of the meetings or otherwise state to the members that $15,- 000 had been expended for this leasehold T A.—I don't remember. Q.—And if nothing appears in the minutes of the members to show that $15,000 was expended for the leasehold, can you explain why that was omitted? A—No, I cannot. Waters then explained that the lease was obtained from Edward F. Rush, of the former firm of Weber and Rush. Q.—Did you know whether any broker- age commission was paid in the acquisi- tion of this leasehold t A.—No, I do not. Q.—Did you make any commission on the sale of this leasehold T A.—No. Q.—Did any other officer or director maker a commission? A.—Not that I know of. By the Referee: Q.—Did the attorney make any com- misison. A.—Not that I know of. I am sure if he had that he would have given it to us. Q.—Please do not argue. Do you know whether he did or not? A.—No. Q.—What was the consideration paid for the lease to Mr. Rush? A.—I don't know. Q.—To whom was the lease made by Mr. Rush? A.—I do not know. Q.—Was the lease eventually transferred to the White Rats Realty Co. A.—I believe so. —By what process. A.—I don't know. .—For what consideration? A.—As far as 1 know, none. Q.—Jnst what do you mean by that? A.—I don't know of any consideration being given for the transfer. I don't believe there was any. _ Q.—What did the White Rats Realty Co. Say for the lease on which the clubhouse was nllt? A.—I don't remember. I think It was $l.i.000. Q.—Where did It feet the money from. A.— 1 believe the records show It was from the White Rats Actors' Dnlon. Q.—How did It come about that the union ■pent $15,000 for a lease that went to the realty company. A.—1 would have to refer you to the resolution in the minutes. Q.—Where Is there a record to the minutes of the union authorizing the expenditure of $15,000 of its money for a lease to go to the realty company. A.—I don't, know, ex- cept that resolution. Q.—This lease went through your name didn't It. A.—Yes sir. Q.—What did you get for it? A.—Noth- ing. I was simply under a salary. Q.—Why was It transferred to you. A.—I don't know. That is a process about which I know nothing. Q.—Was it given to you Just pending the formation of the realty corporation. A.—I don't know the reason for it. It was done according to the Instructions of our at- torney and went through that way. Q.—Was there any statement made to the members at a meeting in which It was ex- plained to them that you held this lease for them and that the union was to spend $15,000 for It, A—I don't remember. ...... Q.—Were you told not to? A.—I don't re- member. Q.—Why didn't you make such a state- ment? A.—The business of the organization was conducted by the board of directors. These meetings were simply the meetings of a lodge. . . Q.—Wby, then, were you concerned in in- forming the members or the union that the money of the union was not to be spent in the securing of a clubhouse. A—I did It simply to get the members Interested In sell- ing bonds. . — Q.—Was that lease paid for with the anion's money? A.—I would have to refer you to the records. Q.—Do you know? A.—I cannot say pos- itively. _ . . Q.—Where would the check voucher be for this $15,000? A.—Wherever the check vouch- ers are filed. They were all filed together In my time. Q.—Who signed that voucher? A.—I don t remember. . „ Q.—Did you? A.—I don't know whether 1 was signing checks at that time. I believe I was, but I would not want to swear to It. Q.—You mean you do not recall whether yon signed this $15,000 check? A—Not at that particular time. Q.—Did you sign it at any time? A.—No. I do not want to make any misstatements. I have already done that, and I don't want to do It again. Q.—Show me any record In this ledger of tbe chaining of the payment of this $15,000? A—I would suggest that you take It up with the bookkeeper. Q.—What Is his name? A.—Faulhaber. Q.—You bad charge of the keeping of the books, though. A.—Yes. Q.—Did you ever look them over to see if they were correct? A.—They were audited by a firm of auditors. Q.—Did you ever look them over yourself to see if they were correct? A.—1 may have glanced at them, but I relied on the auditor's statements. Q.—Can't you point to any item sbowlng us where this $15,000 Item was charged? A.—I would not care to, without examining the books. Q.—Did you not always tell Mr. Faul- haber how to make entries? A.—It wasn't necessary. He understood his business. Q.—At the present time you •.•ann.it tell us where this $15,000 was charged up? A.— No. Q.—Can yon tell us then, what person di- rected you to take that. $15,000? A.—No, I cannot, if it does not appear la the book. I see afterward, it was O. K.'d by the board of directors, was It not? I don't know why It was done. It was done through the advice of counsel, though. I am sure. Q. —That resolution that has been referred to refers to a special meeting of the Board of Directors held July 27, 1911. Was a record of that meeting kept? A.—It should have been. I don't know wby It wasn't. Mr. Sapinsky then produced a set of minutes In the minute book of the union under date of August 1, 1911, In which ref- erence is made to a special meeting of the Board which it Is there stated was held on July 27. The witness was asked If he had any personal recollections of that special meeting. He said he did not, and had no idea why the resolution referred to It. Q.—Then there wasn't any such meeting ns far as you know? A.—I don't know that there was, or that there wasn't. I could make a guess at It, but that Is not what you want. By the referee: Q.—What did the union receive from the realty company for the $15,000 which It ex- pended for the lease? A.—I will have to refer you to the records. Q.—What did the realty company give for that $15,000? A.—I don't know. Q.—Who should know? A.—The records should show you that. You have them. Q. —Who else should know? A.—I don't know anybody else that should know. I know we kept a very good record of every- thing we did. 1}—Were financial statements of the s«c- retury read at the annual meeting; of the union? A.—Yes, Q.—Were any records made in those finan- cial statements of this $15,000? A.—I don't know. Q.—Should It have been? A.—I should Imagine so, but not necessarily In detail. We did not go Into detail about our investments because. If we did, that would have been joy for some of the boys with note books, look- ing for Just such Information to carry out. Q.—Yon mean the financial statements were not correctly kept, then. A.—We did not state the Investments In full. By Mr. Sapinsky: Q.—Show me in what entry the $15,000 would be Included. A.—I cannot tell you now. Q.—Take this book, and take your time and show me In what Item Is the $15,000 that was expended? A.—I cannot do that. Q.—Why not? A.—Because I would have to go through the details and find out where. Q.—I asked you to do that. Take all the time you want. A.—I couldn't do that here. If you will let me come down here at my leisure and look at the books, all right. It was then agreed that Waters should do so. The witness was then shown the entry of where $10,000 was paid out, and was aaked If he knew what It was for. He said he did not, without going through the details of the books. Q.—Who handled the funds of the Asso- ciated Actresses of America while you were secretary-treasurer? A.—The Board of Di- rectors of the union. Q.—Who signed the checks on that fund? A.—I don't remember. At different times I think there were different people. At one time, I think I signed them. Q.—These funds were disbursed under the supervision of the union, were they not? A—Yes. Q.—Did the ladles' branch have separate meetings at that period? A.—No. Q.—Did they have any say In the disposi- tion of those funds? A.—No. Q.—Did you keep any separate record of the collections of the Associated Actresses during that period? A.—I think you will find that they were kept separately. Q.—Were they kept In the books of the nnlon or in separate books? A.—Separate books. Q,—How were those funds disbursed—by the check of the nnlon? A,—By check on the Associated Actresses. Q.—Was any accounting given by the union to the Associated Actresses for those funds? A.—They were part of the organization. Q.—If they were part of the organization, why were their funds kept separate. A— That I don't know. Q.—When did your time as secretary- treasurer expire? A.—I resigned Septem- ber, 1918. «_!«. _ «. 6.—Were you secretary-treasurer of the Associated Actresses? A.—I don't remember. Q.—While yon were secretary-treasurer, (Continued on pott 36.) Toddy— -send for 3 - our professional copy of "For the World and the U. S. A.," by G. E. Bu k. "The best war song yet" "A rousing march song of victory that stirs every audience profoundly." "It's sure to be the biggest seller of the day.'' Here's your chance to sing a great song while it is nere. Has a quartette arrangement that is an inspiration. Permission to use, and copies of the regular edition, together with orchestration for ten pieces, will be seatjree of charge to professional people of standing. 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