The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-05-19

and the minority of Special Committee appointed to in
vestigate the financial condition of your Company.
The first of these reports THAT of the majority contents
itself with statement the financial condition
the Company, by which it is made apparent that since
the first of October 1885, the whole of the nett receipts
the Company had been absorbed and the floating
reported at next to nothing, had swollen to nearly mil
lion of dollars of which, together with half a million
for interest and ground nts must be paid Tor reneoed
before July, and all oft by September.
The majority of the Committee having thus discharged
their duty exhibiting the actual liabilities the
pany proceed show that rely upon the
passengers and freight discharge them and with
think the result will Show rather sangune estimate
of the results of that dependence leave part of the
subject to the Board.
The report of the minority does differ very material
ly to the amount of the floating debt It admits the
bills payable to he, the LIST of February 1855 81 O73
926 from which deducts 1924 97 of cash in bank and
bonds of the city hand, leaving nett amount offoat
ing debt the LIST of February of $S 9S The report
the minority studiouy omit any the accrued
and accruing interest and ground rents amounting to
S477 30 which, if added to the amount by them admitted
to be due show aggregate Indebtedness to be met
before the LIST of September one million three hundred
and twentysiX thousand two hundred and forty five dol
lars.
This then is the actual financial condition of the Comma
ny as exhibited in the two reports Take either of them
and it is bad enough.
Not being proessed accountant and besides not being
beind the Scenes shall attempt to demonstrate
which of the two divisions of the Committee in error to
the amount of about 100000 to the indebted
ness of the Company They not made up same
day they ought to have BEEN and although the report
of the minority omits all to such small matters
the open accounts, debts due the States of MARYLAND
and Virginia s47 000), and the balance of loan No duc
since Jan. !, 1854 1854 G6Sst am willing to believe
is wa nj intop
gentlemen it is not to the statements of what yo,
owe, and what you have got to pay it with as sbouyn
by either committee that take exception take it NOT
much harm can be done to any body by those statements
Arithmeticians easily look into them and
their value.
But Is to the ornamental part of this minority report
its boasts of what it has done-s predictions of what If
will do, that beg leave to state my objections
1t commences by bold and daring statement that o,,
ofe nett earnings Of the gear ending October l. 1856 YOU
paid for Dividends Mortgage debts Rolling power and
Floating debt, the sum of 81 ,3994O5
Now in turning to the Goth Annual Report I'D TO Sen
eher o 1919, ma that among the assets of the Com
pany turned over to the year 1856 there were
Bonds of the city of Baltimore sI76672 of cash on
hand, all of which, amounting to the of 1914 92 were
actually absorbed together with the nett revenue bv the
payments of the year 1856
Is it, therefore, accurate to say the least claim that the
nett revenue of the Company for 1885, innshed means
to lquidae the 81 400 000 when nearly half of the amount
was on hand at the beginning of the year. the avais of the
previous years business, and the proceeds the cys
subscription?
IL Is not my intention, gentlemen at present to enter
upon discussion of the line of policy, with reference to
the North Western Virginia Road which this report fore
shadows, or rather, attempts to vndicae reserve that
for more deliberate examination 1t is sufficient hero 70
note the strange and dsngenuous error committed Inv m
authors OF the minority report in stating that the amounts
expended by the Baltimore and Ohio Railroad Companv
III competing the North Western Virginia Road exceeded
tne estimates oil the Engineer of the latter by sos 9SG-
Now, gentlemen, when you take into account that tbe
pcaton of that Company for aid bears date Mrrcb 70
1896 that the aid of the Company was not rendered n
January, 1897 and that large amount of the claim IF
the Baltimore and Ohio Railroad Company instead Or
beng made up of money paid complete The road consists
oil interest paid by the Baltimore and Ohio Railroad 10
under ITS lease of the North Western Virginia Road and
inc working expenses of the latter, you will, l hope
pause before you adopt report which thus suppresses
material facts to sustain preconccived theory
Nor Is 1t my intention to notice. here the strange notion
of the report page 25 that oiqing the North West
ern Virginia and Marietta Roads, by which passenger
can reach Cincinnati and St Louis by route IS miles
shorter than by the Central Ohio Road charge the same
as the latter road, you pursuing 'IeraT 7oc to
inc ~ '" Nrglnia and Marietta roadsand 'thns giving
the latter the entire advantage the reduced distance
between Cincinnati and Baltimore For the life of me
cannot see how they have any advantage of reduced
distance If they not allowed to invite custom nv
charging less than longer routes But this may be post
poncd.
come now, gentlemen, to a statement on mage 81 of the
minority report In order to escape possibility of mis-
conception, here extract it:
1T is source OF congratulations that the gradual res
toton OF commercial activity producing so favorable
an effect ON the Revenues of the Rood as r., or,i ~ ~
Iy to diminish its liabilities striking illustration Of
S desirable contamination, the suboined facts are pre-
The bills payable February l. 1855 were 81 O72 ooG 6
<iPrl IL, lo3S.......... 7G9,l92 35
Thus after payment of the large amoupt Of MIDWEST m
IVY Loan and Bonded Debt, maturing on April LIST eIG2
~, ana providing for the entire Pay Roll SlG4 Al 50
ol'iiiS uGp OF the Company has been reduced by its
earnings for that brief period S04 1874 H. Such result If
proper prop an! rigid economy be enforced in managing the
ou' lalcates with the continued Improvement in zen
@ business now reasonably anticipated speedy relief
from existing debt, and early period for The re-
sumption 81 HepdymeHt Of diridcRdSi
suppose it is impossible to doubt that tbe Committee
mean officially to give the public understand that the
revenue of the Baltimore and Ohio Railroad Conpo,v
Tor the months of March and February and the first twelve
"s OF April was sufficient to pay current expenses
anu oeS'des, to discharge $lG272 of interest and 1901 M
" us o'hs deotn other words, to pay, in addition to
lis working expenses the large 467 2O6 1t means
tins or 1t is grossly deceptive shall assume that This i
is TRUE meaning fortunately happens that, in making
thlS boast1u declaration, the minority of the committee
have subjected the accuracy of their representations to
test which will leave nothing TO doubt or conjecture
lhe gross receipts of the main stem as officially repor
T Tor y March, and II days in April WERE ssh 200
pe'uct working expenses at GO per cent 1856 20
Ana we have nett receipts OBSERVATION-DISCLOSURES. e3o1 $50
In this statement have allowed greatest possible
amount Of revenue, and conceded the ratio of EXPENSES
"y The last annual report-and yet this shows that
u rs impossible the statement the minority can be true
unless by some miracle known only to Railroad Comma
mes, S461 900 can be paid with 1924 600
But gentlemen, in conccdng that the eynenses or E
uay and March were only co per of the gross earn
ngs, have conceded far more than your accounts If
mistake not will justify. When you come to pass upon
hS part OF the Report in question, call your Treasurer
sour Auitor-your Chairman of the Finance Committee
" '"e slahu. lhterrogate thcm-make them show the
gureshow much the nett receipts in February p
how much in March?
Gentlemen this statement is the tombstone of the
whole report Here the minority lay themselves open to
r and strict test If this statement be true and cr
erion for other months your road is MAKING aver and
above its current working expenses more than two mil
Mons Tour hundred thousand dollars per annum This
e exact effect and purport and promise such declara
oh ANA when you couple this declaration with the in
'hg lure which closes the paragraph that it Indicates
=" EARLY PERIOD JoT the resumption Of the payment Of dir
'e"uS' you VIII consider, gentlemen hope, before YOU
ldopt it and lend to ii your official sanction as Board If
Directors, that you stand God fathers to it to the whole
world lit turn out to be unrueif prove in the issue
o have been the fancy work of one having stock to
e who has imposed upon your creduty let me tell YOU
'ou may run the risk of involving yourselves and vopr
ompany in responsibility which worthy of your CON
deration.
'eh'iemen' IN the country from which derive our
and our notions of equity mean old England boards
Of
brethren in the United States prone commit the Of
Imposing they may indulge at will in the same kind Of
ctons and distinguish the renorts
fmost of these corporations. who had bought stock
pon the faith of such representations took it into his
cad after he had been ruined that somebody ought to
hare his loss, and he sued the Company
he morality which distinguishes corporations pleaded
hat il the of he Connonv lint Of ~ NJ,