The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-01-10
To JOHN " GARRETT, Esq,

10 JOHN w. GARRETT, Esq,
President of the
Baltimore and Ohio
Railroad Company:
SIR-The last annual report of the Board of Directors
which you preside presents the affairs of Com
pany in attering condition. that it must excite sur
prise that immediate advance of the stock to par
above it. has not followed. The public incredulity, was
led to believe would give way before the fascination of
your predictions of the future supported by figures
of the past; and am not disappointed that decided
effect has rewarded exposition which left no cloud re-
naming part of the great work of your hands
The floating debt paid o-the expenses reduced by the
1929 e5S-a mortgage for 81 900 900
leasedthe sinking fund increased sos 272s22 1853 OF
cash in banda net gain of 81 43 3S9 during the
thirteen and quarter per cent earned on the capital
stockeveryhing bought for cash-a these indeed
indications of superior management and advancing pros
pery, which might well fill the hearts of stockholders
with delight
As contemplating with lively satisfaction these
proofs of the improved financial condition of your Com
pany eye happened to light upon the open page of
report made in March, 1856 to the stockholders of another
gigantic corporation-the New York and Erie Railroad
and it impossible for to avoid remarking the
striking similarity between the representations then
made by the Directors of that Company, to its condi-
ton, and those which present the Baltimore and Ohio
Railroad Company the Both of September, 1859, as
having attained the pinnacle of prosperity.
To-day says the Erie Company's report 1.-THE sacri
ces made blythe Company to meet promptly maturity
"all its engagements, have been wholly repaid. The
a the endorsed acceptances have been paid and the
"chattel mortgages satisfied and discharged of record
The sinking fund, by its rapid absorption of the debt
must gradually enhance the market value of the shares
las well favorably affect the future renewal Of the
oans they mature-besdes which, to the permanent
Shareholder it acts simply as loan to himself to be
''ret,vned at an early period stock dipidends.'
Now the New York and Erie Railroad Company, with
good management in conformity with the wise policy
cable report to the Directors last which, far
possble been adopted beyond any such crisis
future, a those through which it has passed
" 1t pciH soon become dicdend paying, as it as
"diridend earning institution"
This same Erie report, whilst deporing, you have
done the gross income proceeds to show
how by economy the net income was by means dmin
shed and in Short Mr. Homer Ramsdelps assurances to
his stockholders to have furnished you the model
upon which you have framed the glowing promises OF the
report now before When came to consider that,
Notwithstanding these bright ancipations the Erie Rail
road ia in the hands of receivers its stock worthless its
credit utterly gone its sinking fund deuson and
snare you will, sure allow that prudent man may
be pardoned before yields unhesiatng belief to every
thing he finds in report exhibiting such striking points
of similarity
The scrutiny which the sceptcism thus engendered has
led to make into your statements figures and anel-
pations, has not served to strengthen my conf
dence, to induce me to regard the Erie report
as an exception in the class of literature to
which it belongs. On the contrary, the more
have examined the have become persuaded that,
if the real condition Of your Company is not as false and
hollow as that of the Erie Company yet that your report
materially msrepresents it as to afford no safe guide
to those who now holders of its shares or may be
1t would be imposing too task upon myself,
and perhaps only to confuse the casual readerf
report with view to exhibit how either by arful sup
preston ingenious suggestion, the state Of your
oraton is made to appear SO much more favorable than
it really is Nor is this needful. In determining the
pecunary condition of corporation or OF an individual
the same rule must be followed fair statement OF LA
bies the side-a fair estimate and valuation Of
assets on the other Some people seem to thnk because
Railroad Company is mighty afair-in which millions
are owned and millions owing-ts valueas money
making and safe investment is to be determined by
theory different from that by which would test the
business and sovency Of the grocer or the dry
man. This is fallacy What do you over and what
have you got to pay it with2 What your annual
outlaysf and what your annual receptsf These all