New-York tribune., 1874-11-06

cost II the iron which he replaces being proper charge
o construction.
You do not give the expenditures for machine
shops car and engine houses, freight and passenger
stations wharves, ferries machinery, &c which must
amount to q very large sum. We have however, tho
total cost OF the new construction in item. which
you give but do not make of, in your comments IL
s the item showing increase In the cost OF road and
e1uipmcnt say sg7 and in cost OF real estate
$500 OO0 actual expenditures cnargeaDe 10 cdpld
floating iabics sisOoCOOo. This leaves unaccounted
TOR s2 $4,000, which should be representa- by AN n
The securities sold If has not already been charged
of and included the s970OoOO Item III t Is 80 repre-
scntedproylded the cDaTses 10 tnt m n
account are legitimate and you adduce no evidence
that they no-then the increase IN Liabilities Is inly
accounted for. IL IL Is not so accounted i0 then tha
would seem TO be the point requiring explanation
TIE TRIBUNE assumes, but does not undertake TO
prove that portion of the operating expenses were
fruduently charged to construction, and saws that
the roads and equipment had been IN ad ~ op eTor
Of surplus" Where is the warrant for such an asser
expenses s9s 100000 out earnings, nearly onealt Of
winch repairs OF track ana eqnlphent. ctl
good order or tna sum was insufficient for me pnr
pose You say valid reason can be gwen Ter keeping
opn railroads construction account aier IL Is once
bnt and propcrv equipped" When is railroad prop
erly equppedi That depends upon the amoInt OF ts
becomes necessary Ii road requires LOO additional
freight 100 new engines should tncy Dc pa lSr
ont of current receipts When dOube track or ad-
diional branches or silnRs are required Is te money
TO be got out the earnings Tlis would De enlreIy
Impossible and unjust even il possible It would render
exorbItan tariffs necessary and great curtailment OF
trausp rtation facilities d. not the llf miles OF new
tracks reported the State Auditor of Pennsylviha
in 1919 nearly all Of 1t built by OLD companies anu "c-
ing al S45COI (yOur estlmate) PER nle over SoOOOhn
constitute very conclusive reason why their cohsttnc-
tOn accounts not closed Ana they Wefr closed
raiload officials desire to cheat would proDinIy
like men IN lines OF business nd methods enough
TO accomplish their ends. .
The GENERALLY accepted rules for the division OF ex
pcndtures the construction aud transportation
accounts were clearly announced by President watson
of tie Erie Railway or Two ago ana are brlen,
TO charge construction the cost OF all new tracks ana
structures and in the OF renewals, substitution OF
steel rails &c. the difference between the ffst
cost of the dspaceu structure material and the now.
Mr.. Watson violated these rules wnen he ordered Mr
Dunan round from the repair accounts
10 construction, and denuncatoDs exactly III tnai
similar transactions Which may come To your
notice but is decidedly unjust to TAKE state report
covering the transactions OF l45 companies ana charge
tnelp all by mpcatio with similar practices. From
its manner stating the fact 1t would seem that IHE
TRIBUNE objects the railroads carrying fcOOUO more
passengers for S4OOJOyO money than the previous
wear They can't help 1t though All the annual reports
FOR ten years past the thing More WORK Tor
less money every succeeding year. The laws or trade
mot Granger laws) are too much Tor theln
York, Oct. -, 1874.