On June 23, 1903, the special auditing committee made a report to the Commission, and at various times thereafter submitted other reports of the financial standing of the Exposition Company, based upon the findings of the above-named firm of expert accountants, all of which are in the files of the Commission.

The last report of the expert accountants employed by the Commission, containing a statement of receipts and disbursements of the Exposition Company from date of its incorporation to date of April 30, 1905, together with a condensed statement compiled by said expert accountants, showing their estimate of the financial result of the exposition, which they state has been prepared from the accounts of the company to May 3, 1905, and from an estimate of future receipts and expenditures, furnished by the president of the Exposition Company, is herewith submitted as a part of this report as "Appendix No. 1."

The Commission was compelled from time to time to call the attention of the Exposition Company to the apparently excessive number of free admissions in comparison with the total attendance at the exposition.

On May 10, 1904, the Commission wrote to the Exposition Company, pointing out that for the first seven days of the exposition, with the exception of the opening day, the number of free admissions compared with paid admissions was in the ratio of 7 to 6. On several subsequent occasions the Commission insisted that prompt action should be taken to check the indiscriminate use of passes.

On May 24, 1904, the Commission adopted the following resolution:

Resolved, That Mr. Thurston, as a member of the judiciary committee present, call upon Judge Ferris, general counsel for the Exposition Company, and indicate to him the condition of correspondence with reference to free admissions to the fair grounds, and to suggest to him that in the absence of any disposition on the part of the Exposition Company to take notice of the protests of the Commission, he has been authorized to prepare the case for submission to the Attorney-General of the United States, with request that action be taken in the courts to prevent further violation of the law and rules as agreed upon by the joint action of the company and the Commission.

On the same day Mr. Thurston, in a conference with Judge Ferris, general counsel of the Exposition Company, brought the said action of the Commission to his attention and insisted that the Exposition Company should at once take immediate steps to put an end to the excessive and improper issuance of free passes. Mr. Thurston was assured by Judge Ferris that he would immediately consult with the exposition officials and endeavor to secure such action on their part as would meet the views and wishes of the Commission.

As there was no apparent cessation in the distribution of passes, the president of the Commission, on May 31, addressed the following communication to the president of the Exposition Company:

MAY 31, 1904.

SIR: Under date of May 26 Secretary Stevens transmitted to the National Commission what he denominated "The rules and regulations governing and restricting the issuance and use of passes," as adopted by the company and now in operation. This communication, with the rules referred to attached, was obviously intended as an answer to the communication of the Commission to the company on that subject under dates of May 10 and May 19.