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Show Enormous Deficit in the United Railroads i San Francisco, July 20. Testifying before the California state railroad commission at the Investigation today to-day into the withdrawal hy Patrick Calhoun, former president of the Un. ted Railroads of 1,096,000 ostensibly for Investment In the Solano Irrigated Irrigat-ed Farms project, L. R. Reynolds, auditor au-ditor of the commission, asserted that, taking everything Into consideration, consider-ation, thero actually existed a deficit of 4,SS0,4T1 at tho time of tho last annual report t of the corporation. Of this amount, said Reynolds, f3,-900,909 f3,-900,909 cannot bo accounted for In reports re-ports and books of tho corporation which the commission bns been able to examine. Reynolds' testimony followed that of executive ofllccrs, directors and employes of tho United Railroads, whoso testimony developed that: Tho entire ?109C,000 was withdrawn with-drawn in cash from tho treasury of tho United Railroads upon directions from Calhoun by orders authorized by Tliornwalj Mullally, assistant to tho president. A. M. Dahler, treasurer of tho company, testified that on March 1, 1913, pursuant to Calhoun's orders, $85,000 In gold was carted from tho company's offices to tho bank of California. This was tho largest of similar withdrawals, be said. Charles W. Black, general man nger of tho company testified that ho did not know tho monoy was gono until June, 1913, when Calhoun retired retir-ed its president and was succeeded by Jesse LUInthhl. , The monthly financial statements of tho company, said Black, did not show those withdrawals and ho had heard Unit tho treasuror had been ordered to report tho suras tnken as cash on hand. Ho added that tho monthly financial reports of tho company com-pany as Into as February, 1913, Indicated Indi-cated that tho money taken by Calhoun Cal-houn was still cash on hand. Mullally,, B'ack and TIrey L. Ford, former director nnd counsel for tho company nsserted that they did not know what Calhoun withdrew tin money for nnd that they had not asked ask-ed him. Ford said that as Calhoun represented the stockholders, tho directors di-rectors wero guided by his advice In all matters. Authorization to withdraw sums from tho treasury of tho United Railroads Rail-roads was granted Calhoun In n blanket blan-ket resolution ndopted hy i'h.s directors. direc-tors. It met wltli no objection. Tho status of tho corporat'on's financial affairs beenmo public last May when tho California railway commission granted an application of tho United Railroads to issue bonds to acquire new equipment. Tho commission examined' tho corporation's cor-poration's books and found that President Pres-ident Lllenthal had written off as having hav-ing a aluo of ?1 n personal note of Patrick Calhoun for $1, 090,000. Officers Of-ficers of the company explained that tho money had been used by Mr. Calhoun Cal-houn to further the Irrigation .farm project. Tho hearing adjourned to July 28. |