Note 199 — Chapter XIV · The Source of the Bribe Money.

Of this manipulation of the books, President J. E. Green, of the Parkside Company, testified before the Grand Jury as follows:

“Q. How was the transaction to appear in the books? How was the property account to be charged with it? It would have to show some property. A. It was charged for a block that was purchased from Watson and Umbsen, a block of land.

“Q. Did you tell Watson to do that? A. I believe I did.

“Q. How did they get paid for the land? A. They deeded this block which they had to the company and the company in turn executed a deed to them, returning the land to them, simply a matter of bookkeeping.

“Q. Was the company’s deed put on record? From them to the company? A. I rather think so.

“Q. What was the purpose of that? A. To get a charge to the property account for the expenditure of that amount of money.

“Q. What was the reason for charging it to property account? A. Every expenditure that was made was charged to property account with the idea the property had to pay it back.

“Q. Did you always go through the form with every expense that wasn’t actually a piece of property, did you go through a form of deeding a piece of property and then deeding it back? A. No, sir.

“Q. What was the reason of doing it in this instance? A. Because—other things—there was a case—grading, sewering or fencing the blocks when they spoke for itself.

“Q. I don’t see how it helped you; it went to the property account and the property went right out; don’t see how it helped you any. A. It had to be charged to something, Mr. Heney.

“Q. Why couldn’t it be charged to what it was, attorneys’ fees? A. Because attorneys’ fees were charged against property account.

“Q. Were Morrison & Cope’s fees charged up as a piece of property and did they go through a rigmarole of deeding a piece of property too? A. No; their fees or any other expense against the property interests.

“Q. Didn’t they go into the books as a fee for Morrison & Cope and charged as expenses against property? A. Charged direct to property.

“Q. As expense? A. Don’t know as expense; it was charged to property, showing that we had that much money in property; when we got through selling anything over, that was profit in our favor.

“Q. It appeared on the books as having been paid to Morrison & Cope for attorneys’ fees? A. Can’t say without seeing the books.

“Q. Ordinary way of keeping books? A. Yes.

“Q. You didn’t cover up anything you paid to Morrison & Cope by putting through the hands of the secretary? A. No, sir.

“Q. Why did you cover up this in connection with Ruef? A. I don’t know; suppose the property account is probably the proper one to charge it to.

“Q. Only explanation of it? A. Yes, sir.”