The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-07-27
ThF RItland Daily 6lohe
FRIDAY, JULY 81, 1877.
RUTLAND RAILROAD COMPANY.

Talleyrand, we believe it was, said that
language was invented to conceal ideas, and
80, in examining the "balance sheet" Of the
Rutland railroad company, we may say
that even if figures never lie, they are
especially valuable in concealing facts. We
know not but what the figures are lucid
enough, snd convey all the information the
stockholders desire, but to ordinary persons
they convey no idea of the present financial
condition of the company. Apparently the
company is better off than it was year
ago-but is it in reality This question we
must leave to financiers to answer.
OF course, every one knows that the Rut-
land railroad was built years ago, and that,
at least, five years ago il passed out of the
control of the Rutland railroad company,
and that during these years the "construc-
ton account of the road, so far as this
company is concerned, could neither he
lessened or Increased. Yet We find the
Hrst item on the debit eide of the "balance
sheet this year is for CONSTRUCTION &C.
count" $0.O73, l2o.s7, against fer the
same item last year, $1,000 .343s2. In
other words, the whole cost of the road, o
year ago, was twenty-one thousand dollars
more than it was one year later. This may
be all legitimate and proper, and fnanclers
may readily understand il; but if
the fignres express the facts it is
an anomoy in the history of rail-
roads, for the construction account" if
it is not made to remain stationary, gen.
orally goes up in an ascending scale--and,
indeed, we naturally expect that the items
properly chargeable to this account will in
crease, rather than diminish, the real or ap-
parent cost of construction. Where road
maintains and keeps in repair its own road
bed, equipment, etc., we look for gradual
increase in its CONSTRUCTION account"
Where this work is done by others, we
lock for no change-and, indeed, how can
there be any change? After all, the re-
port may state the facts. 1t may have cost
twenty-one thousand dollars less TO build
the road and keep it IN repair and maintain
its equipment from its inception down to
June 80, 1877, than it did for one year less,
but if so it is perfect marvel of reilroad
and financial management
Aside from this increase in the ''con-
struclion account" the company,SeemS to
have improved its financial condition. Thus,
it has decreased its floating debt, unpaid
coupons and outstanding unpaid dividend
scrip, some one hundred and twenty thou
sand dollars-$120, 026 Sand its "pre-
d" forred stock" some twenty-five thousand
dollars-$25, 200-but at the same time it
has increased its first mortgage bonds forty
five thousand two hundred dollare. Its
real estate is returned at one thousand dol
lars less than it was year ago-a depreci-
alton that the general depression of bust
ness woulI necessarily create-while the
amount of the stock of the Addison rail-
road company has increased by forty thou
sand dollars.
This all looks very favorable, but when
we look at the other items of the report
aud find that forty.five thousand dollars Of
the "hoating debt" has been paid during
the past year we are lost in amazement.
For we find that the 'floating debt" was
reported last year at 1886, 97s. 80, and this
year at $3.50, 1853 05-a difference of only
sixty-two hundred dollars, and we wonder
if the disappearance Of this thirty-eight
thousand or thirty nine thousand dollars is
another of those marvels of railroad and
financial management about which we
have heard so much and of which We,
formerly, were wont occasionally to talk
But enough of this-if the president, di.
rectors and stockholders are satisfied with
the financial showing we certainly are.
Not to speak of the fact that the directors
congratulated themselves on the fact that
the Central Vermont railroad company pay
eight thousand dollars for the aotob ex.
penses of running" the Rutland railroad
company and that in fact, the company
paid for these "expenses for legal
services, salaries of president, treasurer and
clerk, advertising, postage, stationery, tel.
egraphing aud "ofilcial expenses "-ncarly
fourteen thousand dollars-$l3, 1926. OF
the annual meeting of the Rutland railroad
company may be considered a grand sue
cess, for didn't the stockholders indulge
themselves in their usual and characteristic
denunciations of Vermont institutions ant
Vermont courts
How to Do It.