Below is the OCR text representation for this newspapers page.

, { Ttlffi ATLiAiVrA UJKU It CHAIN AJVU KKWTS. LEO M, FRANK'S COMPLETE STORY AS JOLD TO THE JURY Accused Makes Statement Remarkable for Clarity and Wealth of Detail E TO TALK IS HAVE TOLD YOU LIE DIRECT IS GIVEN TO CONLEY’S STORY • . .. ...... I,........- Gentlemen, I know nothing whatever of the death of little Mary Phagan, I had no part in ranging her death, nor do I know ho wshe eame to her death after she took her money and left my office. I never even saw Conley in the factory or anywhere else on that date, April 26, 1913. The statement of the negro Conley is a tissue of lies from first to last. I know nothing what ever of the cause of the death of Mary Phagan, and Conley's statement as to his coming up and helping me dispose of the body, or that I had anything to do with her or to do with him is a monstrous lie.—From Frank's Statement. Leo M. Prank, in his remarkable statement to the jury, had little to say of the charges made against him until the latter part of his address, which on this account, became the most interesting and most impressive portion of his talk. After going into close detail in respect to his work at the factory office the afternoon of Mary Phagan's murder, he took up the principal evidence and the principal charges against him. He explained why he did not talk to Conley. He asserted that it was he who gave the information that Conley could write, in spite of the assertions that he had withheld this information. He made complete denial of seeing Conley on the day of the crime or of having any personal knowledge of how Mary Phagan eame to her death. Here is Frank’s story as it was told with its various interrup tions : Mr. Arnold: "Now Mr. Frank, such papers as you want to use you can come down here at any time or from time to time and get them on this table right here. The Court: "Before you com mence your statement I want to road the law. In criminal proce dure, the prisoner will have the right to make to the Court and jury such statement in the case as he may deem proper in his defense. It shall not be under oath and shall have such force as the jury shall think right to give it. They may believe it in preference to the sworn testimony in the case. The prisoner shall not be compelled to answer any questions on cross-examination. He should feel free to decline to answer them. Now you can make suoh statement as you see fit.” The defendant said: "Gentle men of the jury, in 1884, the 17th day of April, I was born in Ter rell, Tex. At the age of three months my parents took me to Brooklyn, N. V., whioh became my home until I came South, to Atlanta, to make my home hero. I attended the public schools of Brooklyn and prepared for col- k. lege in Pratt Institute, Brooklyn, ' N. Y. “In the fall of 1902 I entered Cornell University, where I took the course of mechanical engi neering, graduating after four years, in June, 1906. I then ac cepted a position as draughtsman with the B. F. Sturdevant Com pany, of Hyde Park, Mass. After remaining with this firm for about six'months I returned once 'Aibmore to my home in Brooklyn, where I accepted a position as testing engineer and draughtsman with the National Meter Com pany of Brooklyn, N. Y. “I remained with these parties until about the middle of October, 1907, when at the invitation of some citizens of Atlanta, I came South to oonfer with them with reference to the starting and op eration of a pencil factory to be located in Atlanta. After re maining here for about two weeks I returned once more to New York, where I engaged passage and went to Europe. I remained in Europe nine months. During l my sojourn abroad I studied the I penoil business and looked after ■ the erection and testing of ma- W chinery which had been previous- if ly traded for. Looked After the Pur hase of Mateials. “In the first part of August, 1908, I returned once more to America, and immediately came South, to Atlanta, which has re mained my home ever since. I married in Atlanta an Atlanta girl, Miss Lucille Selig. The major portion of my married life has been spent in the home of my parents-in-law, Mr. and Mrs. E. Selig, at No. 68 East Georgia avenue. My married life has been exceptionally happy, indeed—it has been the happiest days of my life. “My duties as superintendent of the National Pencil Company were in general as follows: I took charge of the technical and me chanical end of the factory, look- ing after the processes and see ing that the product was turned out in quality equal to the stand ard which was set by our compet itors. I looked after the instal lation of new machinery, and the purchasing of any machinery, and in addition I had charge of the office work at the Forsyth street plant, and the lead plant on Bell street. “I looked after the purchasing of the raw material.' 1 saw after the manufacture of pencils and kept up with the market of these materials and when the prices fluctuated so that the purchases could be made to the best pos sible advantage. “On Friday, April 25, I arrived at the pencil factory on Forsyth street at about 7 o’clock, my usu al time. I immediately started in on my regular routine work, look ing over the papers I had laid out the evening before, and attending to any work that needed my spe cial attention that morning. "At about 9:30 I went over to the office of the general manager and treasurer, Mr. 8igmund Mon tag, whose office is at Montag Brothers on Nolion Btreet. I stayed over there a short time, and got what papers had arrived in the mail—all the mail of the pencil factory comes over to their office. I got that mail and brought it back to the Forsyth street office. I then separated the mail and continued in my usual routine duties in the office on For syth street. “At about 11 o'clock Mr. Schiff handed me the payrool book, cov ering the plants at Forsyth street and Bell street, for me to check over and see if the amounts and extensions were correct. Of course, this work has to be very carefully done, so that the proper amount of money is drawn from the bank. This checking took me until about 12:20 p. m. Went to Bank To Get Pay Money. “I then went over to Montag Brothers, took the checks drawn and had them signed by Mr. Sig- Montag, after which I returned to Forsyth street and got the leath er bag in which I usually carried the money and the coin from the bank, and got the payroll slip, cn which the various demoniations which I desired to have on the payroll were made out, and went, aooompanied by Mr. Herbert Schiff, my assistant, to the At lanta National Bank, where I had the checks cashed. “Returning to the factory In company with Mr. Schiff, I placed this bag containing the money for the payroll, in the safe and locked it. At this time my wife called for me and in her company and that of Mr. Schiff I went over to the car, and went with my wife home to lunch. After lunch I re turned to the factory and took a tour for about an hour through the factory, after which I then as sisted Mr. Schiff in checking over the amounts on the pay envelopes, checking the money against the duplicate slips that we had got from the bank to see that the correct amount had been given us, and helped Mr. Schiff in chocking over the money and in filling the envelopes. “This took us approximately until a quarter to six to fill the envelopes and seal them, and place them in a box we have there with two hundred pigeon holes in it, that we call our payoff box. Paid One Man Check in Cash . “While I was so occupied with Mr. Schiff in filling the enve lopes, a young man named Wright who had helped us out in the office as clerk during the past week came in and I paid him in cash, as Mr. Schiff had neglected to put his name on the payroll. I just made out a ticket and put it in the payroll box, not the cash box, and continued in the office with Mr. Schiff, taking all the envelopes that were due the help that had worked from April 18 to April 24, inclusive, to pay them through the window in one side of the office. There is a lit tle window built in the hall. I had stayed in my office, checking over the amount of money which had been left there. “This amount should have been equal to the amount loaned out in advance to the help. I took a ticket out when we were filling the envelopes in checking this amount there. As near as I recol lect it, it was about $15. “I noticed a shortage of about $1.20, or something over a dollar, at any rate, and I kept checking to see if I could find the shortage shortage in the various deductions which had been made. I could not locate it that evening, after the help had been paid off, dur ing which time I stayed in my office. No one came into my of fice and asked me for the en velope or for an envelope of any other party. “After the paying off of the help had taken place, Mr. Schiff returned and handed me the en velopes which were left over, bound with an elastic band, and I put them in the cash compart ment, which is different from the the cash box, the key to which is kept in my cash box, and placed them in the safe, and Mr. Schiff placed the amounts in the box, and placed the box in the safe and left them. Tells of Puting Slips in Time Clock. “I placed the time clock slips which were to be used the next day. I took the two time slips dated April 25, which had been used by the help on Friday, April 25—these are the two that I put in the slot” exhibiting the same to the jury.) Mr. Dorr thereupon vigor ously protested that Mr. Frank should be allowed to exhibit these slips to the Jury, because they had not been offered in evidence, on the grounds that they were im material and irrelevant, and on the second ground that he could not put them In evidence on his own statement. Consel for the defendant insist ed, however, that they should be allowed to offer these slips in evidence, as they had been testi fied to by Mr. Dariey and others. The testimony, however, was not produced, and Judge Roan ruled that Mr. Frank might make any statement concerning the same, but that he would withhold his ruling until fui or investigation. Mr. Frank thereupon proceeded to explain to the jury. “Gentlemen, as I was saying, these two slips that have April 26, 1913, written at the bottom are the two slips I put in the clock on the evening of Friday, April 25, to be used on the day following, which, of course, was April 26. Dariey’s Duty to Employ All Help. ‘I neglected to mention also, in going over my duties at ths fac tory, that Mr. Dariey was super intendent of labor and manufac ture, and it fell to his duty to engage the help and distribute the help throughout the plant, and to discharge the help in case it was necessary. It was also due to him whether the wages were raised or not. In other words, he was the man that came directly in contact with the help. More- over, he saw that the goods prog ressed through the plant without stopping, speedily and economic ally for their manufacture. ‘On Friday evening I got home at about 6:30, had my supper, washed up, and with my wife played a game of auction bridge at a friend’s home in the evening. My wife and I returned home and retired about 11 o'clock. “On Saturday, April 26, I rose between 7 and 7:30 and leisurely washed and dressed and ate my breakfast, and caught a Wash ington Street or Georgia Avenue car. I don’t really remember which, at the corner of Washing ton and Georgia avenue, and ar rived at the factory, Forsyth street plant, at about 8:20. “Upon my arrival at the fac tory I found Mr. Holloway, the day watchman, at nit usual place, and I greeted him in my usual way, and found Alonzo Mann, the office boy, in the office. “I took off my coat and hat and opened my desk and opened the safe, and removed the various books and files and wire trays containing the v. ious imporant papers which were placed there the evening before and distribut ing them in their proper places about the office. I then went out to the shipping room and con versed a few minutes with Mr. Irby, who was «t that time ship ping clerk, about the work he was going to do that morning. “According to my recollection, we did no shipping that day, ow ing to the fact that the freight offices were not receiving any shipments, due to the fact that it was a holiday. “I returned to my office and looked through the papers and sorted out those which I was go ing to take over on my usual trip to the general managsr's office that morning. “I then turned to the invoice covering shipments which were made by the pencil factory on Thursday, April 24, and which wsre typewritten on Friday, April 25, by Miss Eubanks, who was the stenographer who stayed at my office. She had hurried through with the office work on the day previous, so that she could go home and spend the hol iday in the country where she lived. But I didn’t get to check over the invoices on the shipments on Friday, due to the fact that Mr. Schiff and myself were com pletely occupied the entire day. So we left the factory with the payroll. So that naturally, these invoices covering shipments whioh were made on April 24, ought to have been sent to the customers, and I got right to work checking them. Shows Invoices to Jury First Time. “Now I have these invoices here (taking up the papers and ex hibiting them to the jury). These papers have not been exhibited to you before, but I will explain them. You have seen some simi lar to these. “Of all the mathematical work in the office of a pencil factory, this very operation, this very piece of work that I have now be fore me is the most important. It is the invoices covsring shipments and is sent to ths customer, and it is very important that the prices are correct, that the amount of goods shipped agrees with the amount which is on the invoices, that the terms are cor rect, and that the price is correct. Also, in some cases, ther were freight deductions, all of which has to be very carefully checked over and looked into, because I know of nothing else that exas perates a customer more than to receive invoices which are in correct. “Now, with reference to the work I did on these orders—that is not such an easy job as you might be led to believe. Here are initials. They represent the sales man who took the order. Some times I have to go through a world of papers to find out to whom to credit these orders. “I notioe that one of the or ders to R. B. Kindele calls for a specialty. That has to be care fully noted and recorded. One column represents the shipping point, another the date, etc. “The next step is to fill in the orders on this sheet. On this sheet I must separate the orders into price groups. Evidently no work has been done on this sheet since he went away. The reason this is done —In the pencil busi ness as in all manufacturing businesses—it is advantageous to sell as much of the high-proiced goods as possible. “This sheet is the only means of telling how much of the va rious goods we are selling. It is the barometer of our business and requires most careful work. Declares He Wrote Financial Sheet. “After I have finished that work I have had to do this, and not withstanding any insinuations that have been made, I wrote these requisitions.” Frank read the name on each requisition, which were the same as the names on the orders. “Now that is all my handwrit ing, except what as written at a subsequent date to April 26.” “Well, moreover, this operation this morning took me longer than it usually takes the ordinary per son to check invoices because usually one calls out and the other checks, but I had this work all myself that morning. As I did this work this morning I saw thfe’- Miss Eubanks had evidently cucrificed accuracy to spoed, and everyone of them was wrong, I went over the invoices to make the corrections, figure them out, correct them, and make deduc tions, if any were to be made, and then get the total shipments, be cause since these shipments were made on April 24, which was Thursday and the last day of our fiscal week, and it was on this week which the financial report which I make out every Saturday afternoon, which has been my custom, so that the total ship ments could be figured out, and therefore I could not let it go out at that, so I had to figure every invoice in its entirety, so I could get a figure I would be able to use. “The first order here is to Hil ton. Hart & Kern Co., Detroit, Mich. Here is the original or der, which exists in our files in our office. Here is the original transaction which was made March 18, but it was not to be shipped until April 24. This is a small order, 100 gross of Number 2; and here is an order of the Packard Motor Car Company for 125 gross of No. 3, and 150 gross of No. 4. Those figure* repre sent the grade of hardness of the lead in the pencil.” Explains How Orders are Filled. Frank thereupon explained how such orders were usually filled, whether in part or In whole, and how the shipments were made, and continuing, said: “In investigating shipments made by the pencil company our method is as follows: We make them in triplicate. Our first original is a white sheet that goes to the customer; the second is a pink sheet that goes over to the general manager’s office and is filed serially, that is chronologic ally, that is, one date after the other, nad from that the charges are made on the ledger, and the last sheet, the third sheet, or yel low sheet, which is here (exhibit ing it) and those are placed in the files in my office, and are filed alphabetically. These yellow sheets that I have here are not the yellow sheets I had that day, because they have since been cor rected, and I am just taking the corrected sheets I made the cor rections and Miss Eubanks cor rected them on Monday by the corrections I had on the white sheet from the corrections I made and I presume at that time made that correct.” Mr. Frank exhibited to the jury various orders similarly written, to H. W. Williams and Company, of Fort Worth, Tex.; The Fort Smith Paper Comoany, of Fort Smith, Ark.; S. O. Bar- num Cl Sons, of Buffalo, N. Y.; F. L. Schmidt and Company, of Chicago, and H. S. Kress and Company, of New York. “Now, there is an order that takes a great deal of study (re ferring t othe Kress order) be cause in common with these five and ten cent syndicates, there is a great deal of red tape. These are invoices that were typed on April 25, Friday, and were shipped on April 24. It was the date on which the shipment was made irrespective of the date there, (referring to the date on the letter) and these were typewrit ten. In other words, shipments took place April 24, and that date was at the top, typewritten and stamped by the office at the bot tom, April 24. Among other things that the S. H. Kress Com pany demand on their orders, we must state whether or not it ii complete, must give the case number, and must tell by which railroad the shipment goes. Checking Made Hard By Much Red Tape. "Hero Is one for F. W. Wool- worth and Company, Fort Wayne, Ind., which shows 35 pounds, less 86 cents per 100 pounds credit. In other words, we had to find out what was the weight of that was on a basis of 86 cents for every 100 pounds shipped. Then here is another one of our large dis tributors in New York. They have a freight allowance of 86 cents a 100 pounds also, and their shipments amounted to 618 pounds on Thursday, April 24. “I started on this work. As I said, I have gone into it in some detail, to show you the careful ness with which the work must be carried out, and I was at work on this until about 9 o'clock, as near as I remember. “Mr. Dariey and Wade Camp bell, the inspector of the factory, came into the outer office and i stopped what work I was doing, which was this work, and went to the outer office and chatted with Mr. Campbell for ten or fifteen minutes, conversed with them, joked with them and while I was talking with them, I think about 9:15, or a auarter after 9, Miss Mattie Smith came in and asked me for her pay envelope, and the envelope of her sister-in-law. I went to the safe and got out the package of envelopes that Mr. Schiff nad given me the eve ning before, and placed the two remaining envelopes in my cash bax, as I considered they might come in and I wanted to have them near at hand so that I could pay them off when they came in. I keep my cash box on the lower side of my desk. After Miss Smith had gone away with the enve lopes, in a few minutes Mr. Dariey came back with one of the enve lopes, and pointed out an error in one of them, the one of the siater- -in-law of Miss Mattie Smith, who had gotten too much money. “When T took the amount which was too much, that amount bal anced the error in the payroll that I had noticed the night be fore, and left about five or ten cents. Those things generally right themselves, anyhow. I con tinued to work on these invoices when I was interrupted by Mr. Lyon, the superintendent of Montag Brothers, and he brought me a pencil display box. He seemed to be in a hurry, and I told him if he would wait a min ute I would go over with him, but he passed out of the office, and then I found a stopping place in the work I was working on, and I put on my coat and when I got to the outer office I found that Mr. Lyon had already left. “Mr. Dariey and I left about 9:35 or 9:40, and we got out of the factory and stopped at the corner of Hunter and Forsyth streets, where we each had a drink at Cruickshank’s soda foun tain, and I bought a package of my favorite cigarettes. “After that conversation there I left him and went alone to Montag Brothers, where I ar rived about 10 o’clock or maybe a little after. I entered Montag Brothers and spoke to Mr. Sig Montag, general manager, on bus iness, and he brought the pa pers which I collect and laid them on his desk, and I then took the papers out, thru6t them in the folder and took the other papers which I had in my folder, and then distributed them at the f roper places in the Montag plant. don't know just which ones they were. Conversation With Miss Hall Recalled. “In chatting with Mr. Montag I spoke to Mr. Montaa and Mr. Korse, after that I spoke to Miss Hattie Hall, the pencil company’s stenographer, who stays at Mon tag Brothers, and asked her to come over and help me that morning, as I have already told you, that these invoices were wrong, and I wanted her to help me on that work, and could not take it up to-morrow. In fact, I told her I had enough work to keep her busy that whole after noon if she would stay. She said she didn't want to do that; she wanted to have at least a half holiday. “I then spoke to members of the Montag Brothers force, on business matters, and then other matters. Alsuo I then spoke to Mr. Guttenheim, who was sales manager of the Montag Brothers and of the pencil factory, and then spoke to him about several of his orders that were in the factory. There were two of his orders that he paid special stress on that were desired to be shipped right away. I said, ‘I don’t know how una far along in the process of manufacture the orders have pro ceeded, but if you can come back I can look it up and tell you when they can b e shipped.’ He said he could not come £hen, but he would come a little later. I told him I would be glad if he would come up a little later on in the afternoon; that I would be there until about 1 o’clock in the morning, and then about half past three. T then took the folder and returned. Arrived at Factory At About 11 o’Clock. “Upon arrival at the pencil fac tory I went up to the second or office floor, and then I noticed that the clocl^ was perhaps five minutes after 11 o’clock, and I saw Mr. Holloway there, and I told him he could go as soon as he got ready. He told me he had some work to do for Harry Denham and Arthur White, who wanted to do some repairing on the top floor, and that h e would do the work first. “I then went to the office, and found Miss Hattie Hall, who had preceded me from Montag Broth ers, and another young lady, who introduced herself to me as Mrs. Arthur White. Mrs. White want ed to see her husband. I went into the inner office, and took off my hat and coat and removed the papers which I had brought back from Montag Brothers and put the folder away. Week’s Sheet Left In Incomplete Form. “It was about this time that I first heard the elevator motor start up, and the circular saw in the carpenter shop which was near to it, and I heard it sawing through some boards and thought it was evidently tho work that Mr. Holloway had referred to. “I seperated the orders from the letters which required an swers, and took from them the letters that did not need imme diate attention and laid them in the various places, and it was about this time I had an idea I would like to soe how far along the report sheets were which I used in getting up the financial report every Saturday afternoon. To my surprise I found that the sheet contains the records of the C enclls packed for the week had een entered for Thursday. Tho last day of the fiscal week was omitted, and Mr. Schiff, evident ly in the stress of figuring out and filling the envelopes for the ayroll for Friday instead of Sat urday, had evidently not had enough time. I told Alonzo Mann, the office boy. to call up Mr. Schiff and find out when he was cominq down, and Alonzo said that the answer came back over the telephone that Mr. Schiff would be right down, so I didn’t pay any more attention to that part of the work, because I ex pected Mr. Schiff to come down any minute. Mrs. Freeman and Corinthia Hall Came In. “It was about this time that Mrs. Emma Clark Freeman and Miss Corinthia Hall, two of the girls that worked on the fourth floor, came upstairs and asked to go upstairs and get Mrs. Free man's coat, which permission I gave them. I told them at the same time to tell Arthur White that his wife was downstairs. A few minutes after they left my office two gentlemen o»me in, one of them Mr. Graham, and another gentleman, fathers of two boys who had gotten into some trouble during the noon recess and were taken down to police headquar ters, and, of course, could not get their pay envelopes the night be fore. I gave the required en velopes to the two fathers, and chatted with them at some length in reference to the trouble that their boys had gotten into on the day previous. “Just before they left the of fice Mrs. Emma Clark Freeman and Mrs. Corinthia Hall came into my office and asked my per mission to use the telephone, and started using the telephone dur ing the time these two gentle men left my offio®. Previous to the time these two gentlemen came in I had called Miss Mattie Hall in and dictated what mail I Had to give her, and she went out and was typewriting the mail. Frank went back to the stand. He was handed a glass of water as he resumed his seat, but de clined it. “Miss Hall left my office” he continued, “on her way home at this time. There were then in the building Arthur White, Harry Denham and Mrs. White. It must have been from ten to fifteen minutes after that this little girl whom I afterwards found to be Mary Phagan came in. She asked asked for ner pay. I got my cash box, referred to the number and gave her the envelope. “As she went out, she stopped near my outer office door and said: “‘Has the metal come?’ Sound of Voice Made Little Impression. “The safe door was open and I could not see her, but I answered ‘No.’ The last I heard was the sound of her footsteps going down the hall. But a few moments after she asked me, I had the impres sion of a voice saying something, but it made no impression on me. “The little girl nad hardly left the office when Lemmie Quinn came in. He said something to me about working on a holiday and went out. A few minutes before 1 o’clock, I called up my wife and told her I was coming to lunch at 1:15. I then went up stairs to where Denham and White were working and found they had a bit of the floor taken up and were sawing. “I explained to them that I was going to lunch and would lock the door when 1 left. Mrs. White left at this time. Some lady said that at 12:35 o’clock she found me in front of the safe. It is bare ly possible that she did. I don’t recall her being there. Her mem ory probably is fresher than mine on this point. ‘When I went up stairs I asked Mr. White if his wife was going to stay there with him. She said no, that she would go and then I got m^ h She left Rat and coat and left, locking tRe outer door. “Now, gentlemen, to the best of my recollection from the time the whistle blew until I went up stairs to see Mr. White, I did not stir out of my office. I went on home. “I called up my brother-in-law, Mr. Ursenbach, to tell him I was unable to keep the engagement to go to the ball game. The cook answered the phone. “My wife and mother-in-law were going to the opera. My fa ther-in-law and I ata lunch. He went into the bacKyard while I lit a cigarette and lay down for a moment. “I left and while passing the home of Mrs. Wolfsheimer, saw Mrs. Michael on the porch. I went in to see her and saw Mrs. Wolfsheimer, Mr. Loeb and oth ers. Watched Parade When Street Cars Stopped. “To catch the next car I ran down to Glenn street. On the car I met my wife’s cousin, Mr. Loeb. The car was blocked at the cor ner of Washington and Hunter streets. I walked up to White hall street and stood there possi bly for fifteen minutes watching the Memorial Day parade. “As I walked down Whitehall street I met Miss Rebecca Car- son. This was probably 3:10 or 2:15 o’clock. I greeted her and walked on. I stopped at Jacobs’ Pharmacy and walked on. I went from there to the factory. “When I reached there I went upstairs and let the boys know I had returned. A minute later, I returned to my office and started to work on the financial sheet. “In a few minutes the clock bell rang and Arthur White came into the office to borrow two dollars. It was while I was at work on the sheet at probably 4 o’clock that I went to the toilet. “As I returned toward the of fice, Inoticed Newt Lee coming toward me from the head of the stairs. I told him he could go on off but to be sure and be back at 6 o’clock. I told him I was very sorry I could not let him know about the half holiday but that he was at liberty to enjoy himself as he saw fit, but that he must not fail to return at 6 o’clock. “The first night that Newt Leo came to work at the factory, I took him over the building, and stressed the fact that he must go into the basement, especially the dust bin, every half hour. ‘il told him it would be part of mis duties to watch the back door. He was to make a complete tour every half hour and punch the clock. “Now, I will return to the work of the financial sheet. This sheet contains the cost of all the pencils made that week. There are no names but this sample case will show you.” Evidence Excluded But Jury Sees It. Frank unfolded a sample ease. Dorsey: “We object to this being used as evidence.” Judge Roan: “I sustain you.” Frank placed the sample case to one side. “Well,” he said, “you got a suf ficient glance at those pencils to see there were a great many.” “In making up tnis sheet it was necessary to go through the list of all that were packed. Specials, of course, have to be figured sep arately. “For instance, there is a special 60-60-x pencil known ae ‘Crack- erjack.’ Now I notice that the two expert accountants reported two errors. While they were un important, I wish to explain that those errors were not mine. They were made by Mr. Schiff. I never checked his figures. I checked over mine, but not his. “Now the next is ‘jobs.* The accountant found the only error in my financial sheet there in the item ‘job*. It was not an error, as I will show you. He did not know my method of figuring. “Two items Here are totals. The total gross amount is 791 gross, the total value amount $396.75. In figuring the average I obtained $50.01. In that average he discovered an error. It was not an error. I simply did not go as far into the decimals as he did. One-tenth of a cent was close enough for my purpose. “Now some of the items in here are taken from the reports of the foremen of the different depart ments.” Frank then exhibited a report from the foreman or forewoman of each department and explain ed it. “Then there is the report of Mr. Schiff, showing the gross of pen cils shipped each day of that week —that week was an exceptional/ heavy one. “Now there is a little report here that constitutes one of the most difficult calculations. It i» from the packing room. We have a trick of the trade to put the pencils that do not soil very fast into fancy paokages to make them go. “Now, very often these pencils are taken from the shelf, where they have laid for more than a year, and repacked in the fancy cases. I made all the calculations on this that afternoon, despite everything that has been said here to the contrary. “Now here is a little sheet that deals with the grades of the pen cils. It shows the totals for each class of pencils shipped that week. This data sheet—we have had very few clerks at the For syth street office capable of keep ing it, because it requires rather advanced mathematics to reach the totals.” “Now I will have to get a|| my thoughts on this sheet. I isn’t a hard job but it is a very tedious one and requires much care and accuracy. Here is rubber—cheap rubber and good rubber. Now it has been intimated that Some of these items—this one in particu lar, if I am not mistaken—that I could take two that were already figured and subtract them from the total and get the cost of the third. “That is not so. Some of the pencils haven’t any rubber in them at all. I have to go through the same tedious operation on each item. There are various sorts of packing boxes used. Then there are the skeletons in the boxes. Some pencils don’t have skeletons at all. “AH these items must be gone through accurately to get correct results of this sheet. Then there is no section on this data sheet showing the cost of tips. You can5t use rubbers without tips, so, after figuring them, I just added them to the rubbers. “Some pencils take wrappers and some don't. The very cheep pencils are tied with a cord, so we have the same tedious figuring again. “The slat item is not worked out because I could not find the data. I just put it off until Mon day. “Here are the jobs—the payroll at Forsyth street and the payroll at Bell street. “No*r the shipments were fig ured for the week. I did part of that work in the morning and I explained to you about the in voices being wrong. Well, here are the items on this financial sheet. Then, as to the orders re ceived. Entering the orders re ceived that day involved no more work than transferring. Has Own Method of Figuring Cost Data. “Here they are in comparison to the amount shipped. “One of the most intricate things in making out this financial sheet is Figuring the cost data. This sheet I may say is a child of my own brain. The first one gotten out was gotten out by my self. “This item here gives us the net value and the net amount of mon ey the pencil factory received for its pencils. The burden that a business has to carry is its fixed charges—rent, insurance, certain salaries, etc.—the charges that are the same whether great or few pencils are made. “The machine shop is variable. We did make many machines at first, but later the machine shop was used solely for upkeep. The slats are figured at 22 a gross. That cost was simple multiplica tion. “The figuring of that price is not done in making out the finan cial sheet Saturday afternoon. Mr. Montag and myself figure that in advance, making allowance for profit, breakage, etc. “I have here on the report of April 26 ‘Slats, not complete;’ that was because Schiff had not mad® out the slat report, and I planned to complete it Monday morning before taking it to Montag, “Now, beside the making this large sheet here and the financial sheet, there aer three other sheets that I made out. Now, I want to call your attention to this. I did not typewrite it. I merely filled^ in the blanks. I have several of them typewritten and keep them in my desk. “In addition to that I make out two condensed financial sheets, showing the principal figures. They are sufficient for a director or stockholder to see what th# factory is doing. Mailed Statements To Stockholders. “One of these statements I mailed to my uncle, Mr. M. Frank, who is president of the company, and the other to Oscar Papen- heimer, who was a director. “I put one in an envelope and addressed i tto Mr. Oscar Papen- heimer; the other I sent to my uncle along with a price list, and I wrote him this letter. “This price list is too long for an ordinary envelope, hence the large envelope. “After finishing the financial sheet, I folded the large sheet and addressed it to Mr. Selig Montag. I then took up the checking up of the cash and bal ancing of the cash book. I did that work as near as I remember, between 5:30 and 5 minutes to 6 o’clock. It did not take me an hour and a half. I did it in about 25 minutes. There was $30.54. There couldn’t have been any more. It was mostly in small change. There was one loan to Mr. White, making the total amount of cash $28.50. “Beginning that week, we had $39.25 as a balance. We drew two checks of $15 each—I mean by that that we went to Mr. Montag's office and had him draw the checks. The total a*-,p-jry£ q4 money we had to accou t /' Continue