Newspaper Page Text
4
TTTE ATLANTA GEORGIAN AND NEWS.
LEO M. FRANK'S COMPLETE STORY AS TOLD TO THE JURY
Accused Makes Statement Remarkable for Clarity and Wealth of Detail
'TIME TO TALK IS
HAVE TOLO YOU
Leo M. Frank, 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. lie 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 Cojiley on the day of the crime
or of having any personal knowledge of how Mary Phagan came 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
read 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 fores
as the jury qh*H think right to
give rt. 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 such 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. Y.* Which became
my home unt-if- I same- South* to
Atlanta, to make my home here.
I attended the public schools of
Brooklyn and prepared for col
lege in Pratt Institute, Brooklyn,
N. Y.
“In the fall of 1902 1 entered
Cornell University* wheqe I took
the course of meohanical 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
more 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 confer with them with
reference to the starting and op
eration of a pencil factory to be
Ideated in Atlanta. After re
maining here for about two weeks
I returned once more to New
York, where 1 engaged passage
and went to Europe. I remained
in Europe nine months. During
my sojourn abroad I studied the
pencil business and looked after
the erection and testing of ma
chinery which had been previous
ly traded for.
Looked After the
Purchase 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 materia'.' I caw after
the manufacture of pencils and
^^^kept up with the market of these
ftj^Jkiateriais and when the prices
^^^rluctu a ted' so that the purchases
could be* mads to the best pos
sible advantage.
"On Frida/, April 25, 1 arrived
at the pencil factory on Forsyth
street at about 7 o'clock, my usu
al time. | 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. Sigmund Mon
tag, whose office is at Montag
Brothers on Nelson street. 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 cheok'
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 \ usually carried
the money and the coin from the
bank, and got the payroll slip, on
which the various demoniations
which I desired to have on the
payroll were made out, and went,
accompanied 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 th© 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
checking 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
we&k cam© 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 r&e, and I kept checking
to see if r could find the shortage
shortage m the various deductions
which had beon made. 1 could
LIE DIRECT IS GIVEN TO CONLEY’S STORY
Gentlemen, I know nothing whatever of the death of little Mary Phagan, I had no part in
causing her death, nor do 1 know ho wahe came to her death after she took her money and left my
office. I never even saw, Copley 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 thjlt I had anything to do with her or to do with him is a
monstrous lie.—From Frank’s Statement.
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 oompart-
ment, which is different from the
the cash box, the key to whioh 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 tha slot” exhibiting ths same
to ths jury.)
Mr. Dor' thereupen 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, nowever, that they should be
allowed to offer these slips in
evidence, as they had been testi
fied to by Mr. Darley 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 -r investigation.
Mr. Frank thereupon jjj’ocee&ed
to explain to the Jury.
“Gentleman, 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.
Darley s Duty to
Employ All Help.
‘I neglected to mention also, in
going over my duties at ths fac
tory, that Mr. Darley 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 cams directly
in contact with th© 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
it 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 avenife, and ar
rived at the factory, Forsyth
street plant, at about 8:20.
“Upon my arrival at th© fac
tory I found Mr. Holloway, the
day watchman, at nis 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
an6 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 placet
about the office. I then went out
to the shipping room and con
versed a few minutes with Mr.
Irby, who was at 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 manager's office
that morning.
“I then turned to the invoice
covering shipments which w*r®
made by the pencil factory on
JhuracUy, April 24, and whioh
were typewritten on Friday, April
25, by Miss Eubanks, who was
the stenographer who stayed at
my office. She had hurried
through with th© office work on
the day previous, so that she
could go home and spend the hol
iday in th© 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 which
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 covering shipments
and ie sent to the customer, and
it is very important that the
prices are correct, that the
amount of goods shipped agrees
with the amount whioh is on th©
invoices, that the terms are cor
rect, and that the price is correct.
Also, in some cases, th©r 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 notic© 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
aell 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 •••ling. It is
the barometer of our business and
requires most careful work.
Declares He Wrote
Financial Sheet.
“After I have finished that work
I hav© 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, exoept what as written at
a subsequent date to April 26.”
“Well, moreover, this operation
this morning took me longer than
it usually takes the ordinarv per.
son to check invoices because
usually one calls out and tho
other checks, but I had this work
all myself that morning. As I
did this work this morning I saw
that Miss Eubanks had evidently
sacrificed accuracy to speed, 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 th© total shipments, be
causa since these shipments were
made on April 24, which was
Thursday and tho 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 th© 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
gst a figure I would be able to
use.
“Tho first order her© is to Hil
ton, Hart Sl 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 wa£jnot to be
shipped until April 24. This is a
•mail 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 tho
general manager’s office and is
filed aerially, that is chronologic
ally, that it, one date after the
other, nad from that the charges
are made on th© 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 tho white
sheet from the corrections I made
and I presume at that time made
that correct.”
Mr. Frank exhibited to tho
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 ia
complete, must give the case
number, and must tell by which
railroad the shipment goes.
Checking Made Hard
By Much Red Tape.
“Here 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. Darley 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 quarter after 9, Miss
Mattie Smitn 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 had 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
r ay them off when they came in.
keep my cash box on th© lower
side of my desk. After Miss Smith
had gone away with the enve
lopes, in a few minutes Mr. Darley
came back with one of the enve
lopes, and pointed out an error in
one of them, the one of the sister-
-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 Brother#, and ho 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. Darley and I left about
9:35 or 9:40, ^nd we got out of
the factory and stopped at tho
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, thrust them in the
folder and took the other papers
which I had in my folder, and
then distributed them at the
proper places in the Montag plant.
I don't know just which ones
they were.
Conversation With
Mis’s Hall Recalled.
“In chatting with Mr. Montag
I spoke to Mr. Montag 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 be shipped.’ He
said he could not come then, 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. I 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 clock 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 toid 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 in nor, 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 sowing
through some boards and thought
it was evidently the work that
Mr. Holloway had referred to.
“I separated the orders from
the letters which required an
swers, and took from them tho
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 see 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 th© records of the
encils packed for the week had
een entered for Thursday. The
last day of the fiscaj week was
omitted, and Mr. Schiff, evident
ly in the stress of figuring out
and filling the envelopes for th©
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
coming 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 tho 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 toll Arthur White
that his wife was downstairs. A
few minutes after they left my
office two gentlemen came 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- f
mission to use the telephone, and ^
started usrng the telephone dur
ing the |imo those two gentle
K
men left my office. 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 ebe 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 tho
door' when I 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. She left
and then I got mv nat and coat
and left, locking tne 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 ats 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 th© next car I ran
down to Glenn street. On the. N 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
3:15 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, Inoticefl 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 Lee
came to work at the factory, I
took him over the building, and
stressed the fact that he must ao
into.;the basement, especially tr.e
dust bin, every half hour.
“I told him it would be part
of his 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 case.
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 as ‘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 wa© not an error,
as I will show you. He did not
know my method of figuring.
“Two items her© are totals.
The total gross amount is 791
gross,■ the total value amount
$396.75. In figuring the average
I obtained $50.0% In that average
he discovered ah error. It was not
an error. 1 simply did not go as
far iota tha decimals as ha did.
One-tenth of a cent wae cloaa
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 tho report of Mr.
Schiff, showing th© gross of pen
cils shipped each day of that week
—that week was an exceptionally
heavy one.
“Now there is a little report
here that constitutes on© of the
most difficult calculations. It ie
from the packing room. Wo have
a triok of the trade to put th©
pencils that do not sell very fast
into fancy packages to make
them go,
“Now, very often the*e pencil*
are taken from the shelf, where
they have laid for more than a
year, and repacked in the fancy
cases. I made all the calculation*
on this that afternoon, despite
everything that has been said
here to the contrary.
“Now here is a little she®t 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 require# rather
advanced mathematics to reach
the totals.”
“Now I will have to get all my
thoughts on this sheet. I Isn’t a
hard job but it is a very tedioue
one and requires much car© 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—rthat 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 us© rubbers without tips,
so, after figuring them, I just
added them to the rubbers.
“Some pencils take wrappers
and some don’t. The very cheap
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.
“Now 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
Fig-uring 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 th© report of
April 26 ‘Slats, not complete;’ that
was because Schiff had not mad®
out the slat report, and I planned
to complete i^ Monday morning
before taking it to Montacj.
“Now, beside the making thi*
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 the
factory is doing.
Mailed Statements
To Stockholders.
“One of these statements I
mailed to my uncle, Mr. M. Frank,
who is president of tho 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 efid
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 amount of
money we had to account for was
i t
i >
Continued on Pago 5, Column J» J