The St Louis Sta and TImes 26 Jan 1942 p.p Everett J Emberson
Boehm Ordered Denial Of Expense Padding, Auditor Tells Jury s Frank J. Boehm. former executive vice-president vice-president vice-president of the Union Electric Co. of Missouri, told Everett .J. Emberson, the company's operating auditor, to "deny until hell freezes over" that Emlrcrson had been padding his expense accounts $200 a month, the auditor testified today in Federal Judge George II. Here's court. Appearing for redirect examina ton as a government witness in the trial of the company and Its former president. Louis H. Egan. on charges cf using a $600,000 slush lund for political rfurposes. Emberson testified testified that he was called four times before Securities and Exchange Commission examiners in their investigation of the company. -It -It was not until the fourth time that I told the entire truth." the witness stated. "I was instructed by Mr. IrlAh iShurly K. Irish, former company comptroller) over a period of fifteen months starting with the EEC investigation in November, 2938. not to say anything about the padding. "I also was instructed by Mr. Boehm not to say anything about the padding of my expense account. Boehm told me to continue to deny it until hell froze over, and that no one could prove I was padding my expenses " Money For Miller, Is Claim. Emberson testified last week that, on the instruction of Oscar Funk, former comptroller of the company, he padded his expenses a total of $5300. beginning in April. 1937, and that Funk had told him the money was for Jimmy Miller, former Democratic Democratic boss of the Fourth Ward. On further examination. Emberson Emberson testified that, upon instructions from Boehm. he removed the names o "certain politicians' from invoices covering the use of motor boats on the lake at Bagnell Dam. near which the company maintained a sumptuous sumptuous clubhouse. This happened after the EEC inquiry started, he said. Cross-examined Cross-examined Cross-examined by Thomas Bond, counsel for Egan. Emberson said Egan never directly instructed him to pad his expense accounts, and that he never turned over any of such expense money to Egan. Recalls Testimony. Harry C. Blanton, United States District Attorney, brought out on redirect examination of Emberson that last week Emberson testified he, Egan and Boehm conferred on the matter of padded expense accounts accounts in December, 1938. Mr. Egan asked how many employes employes I had in my department, and I told him 270," the witness said. He said to me, 'You have luncheon conferences and other expenses which should easily support an expense expense of $200 a month." Raymond R. Goodrich, SEC accountant, accountant, testified that an examination examination he made of a little brown book in which Hermann Spoehrer, former secretary of the company, kept a record of that portion of the slush fund which he handled, showed $3,836 was spent by Spoehrer Spoehrer for liquor. $2,226 for souvenirs and gifts. $707.50 for "contributions." "contributions." $126 for "donations" and $300 for "legislative service." Among the contributions. Good rich said, were listed the following During 1932 To "Senator Elling ton B.." $25; Republican Central Committee, $50; "Furlong," $25; "R, Welnbrenner," $50. During 1933 "$yan," $25; A. O Wilson. $100; Republican Committee, Committee, $100. During 1934 Charles Shaw, for mer mayor of Clayton, $200; Tom Hennings. former congressman, $25; Republican Committee, $7.50. Harry C. Williamson. Union Electric tax expert, testified that his expence accounts were padded by Albert C. Laun, former vice president of Union Electric and Williamson's immediate superior, from November, 1933, through April, 1939, for a total amount of $21,800. Williamson said that under Laun's instructions he gave the latter a memorandum of his actual expenses twice a month, and later signed an expense voucher prepared by Laun which was "considerably higher than his actual expense memoran dum. Other Instances. other instances of expense ac count padding were given by Vernon J. Flynn, employed in the Union Electric real estate and tax depart ment under Laun. Flynn told the jury that his ex pense accounts were raised a total of $5,170 from 1933 through May, 1939, and that he followed the same procedure Williamson did. His ex pense checks also went to Laun, Flynn getting .back only what toe had actually spent. After the start of the SEC lnves tigation, Flynn testified, Laun sent him around "to tighten people up He explained that these people were politicians who were obligated to Laun for favors, and it was his job to request them to keep quiet about these favors.