Show GROESBECK COMPANY THIS OTIlEIt SIDE OF THE COX TROVERSY PRESENTED A Minority Report from the Anrtit jiif Committee The AttnlfH of the Comiiuuy Briefly Reviewed I Of course there are two sides to I everything One side of the Groesbeck company controversy was given in The Herald a few mornings ago in the majority ma-jority report of the auUUng committee commit-tee and the other aide Is given below in the minority report To the Stockholders Of tho Gro beck Company The undersigned the minority member mem-ber of your committee of thiee appointed ap-pointed to examine the books of the Groesbeck company for th year JEll hereby begs leave l to confirm tha majority ma-jority report so far as it is consistent with the facts and to dissent from its inaccuracies and implications of wrong The examination or auditing was thoroughly I made every facility being offered us by the secretary of the company com-pany the entries on the Looks and vouchers of expenditures being exhibited I exhib-ited to us and every question of our inquiry answered From April 1SSD to January 1893 accounts were kept on the companys I ledger with each of the eight heirs of the estate of N Groesbeck to c S who up n tc iigl I that time constituted the entire holders hold-ers of the Grcesbeck companys cap ital stock it was what is termed a close corporation In fact the incep tion and incorporation of the Groes beck company was started with these accounts as being part of the assets together with real estate etc turned over to the incorporation In January Itt some errors were discovered in the bookkeeping items posted wrong the books did not balance bal-ance and a necessity existed to have the accounts properly balanced etc etc The aid of an accountant was obtained ob-tained to correct these matters and in so doing entries were made giving these individual accounts credit for dividends of 192 and prior thereto which were shown to have been made by the board of directors as per the minutes of their meetings These individual accounts ac-counts show that the < payments of these past dividends had been charged up to the individuals but no credit had been given them for the same Hence the accountant found a large balance to credit of loss and gain account offset off-set by the debits against the individual accounts This was corrected by the necessary proper transfer credits being made in January 1S93 Since this last date January 1S33 no moneys have been paid to the said Individuals except ex-cept in two Instances of small amounts t advanced to one individual and unavoidable un-avoidable obligations of other small sums that the company had assumed on the other individual accounts With these exceptions to quote the language of the majority report no money was paid out but simply credit was given to said accounts for transactions of the past years Several individual accounts were over drawn in January 1S93 after proper credits were made These accounts were closed by notes and in two instances in-stances the capital stock of this company com-pany which had some years previous been left in the hands of the treasurer of this company as collateral securely for said two overdrawn accounts was mentioned on said notes taken in January Janu-ary 1S93 in settlement It is a matter of record that in August 1S93 a stock dividend was declared and made by or del of the board of directors and In which dividend all the stockholders of the Groesbeck company participated participat-ed and received their pro rata of said collateral capital stock which accrued and was foiifeited to the company by the notes for which it was held as security not beIng met as provided Tli3 stock dividend was made and done in the regular manner but was another instance in which no money was paid out thereon I The Groesbeck < company did borrow 2000 on the 7th of February 193 for six months at 9 per cent per annum an-num interest In the financial strIngency strIn-gency of August 1S93 it was renewed for another three or six months at a higher rate of interest which is now to be reduced The books of the company do not show that since February 1803 the following sums 169336 have been paid out on account of the following named people This is a misstatement misstate-ment of the facts One of the board of directors had death visit his family robbing him of a beloved daughter Out of respect carriages were provided for the other directors to attend said funeral the expense was paid by the company Nicholas Groesbeck died ten bars I ago The grass plot around his grave in the cemetery lot is attended to by the city sexton and the expense was > paid for by the company i I most respectfully dissent from the introduction of trivial matters of a personal nature and of small moment mo-ment financially into a report 1 by which it would convey a slur and odium if not direct falsification of impled wrong actions on the part of the 1S93 board of dIrectorsan implication impli-cation of that which is totally untrue The books of the company arc easily I accessible to any of the stockholders of the company and my statements and assertions in this minority report can easily be verified It is untrue that the stockholders of the company prior to February 1893 or at any time were in the habit of collecting and appropriating receipts re-ceipts of the company to their individual individ-ual usesthe books of the company nor the facts do not show that such were afterwards charged to their individual accounts HYRUM GROESBECIC February 11894 |