The daily gazette., 1877-06-28
From the ". y. Sun.
THE BALTIMORE AND OHIO
RAILROAD.
ILLUSoRY ASSETS AND REAL Def
CIENCIEs-THE CONTROLLING STOCK
HOLDERS-ALARM.

ILLCSORY ASSETS AND REAL DEFI-
CIENCIEs-THE CONTROLLING STOCK
HOLDERS--ALARM.
PHILADELPHIA, June 26-But few of
the securities of the Baltimore and Ohio
Railroad Company are held in this city;
nevertheless, much interest is manifested
here with reference ts its affairs. Even
the "friends" of the Pennsylvania Rail
| road Company exhibit considerable So
| liciGude concerning them. They say that
if the Baltimore and Ohio "goes up" so
must the Pennsylvania, in pure sympa-
thy with it. In other words, the bor-
rowing facilities of the one will cease
with those of Ithe other The accounts
of the two companies are kept precisely
in the same manner, and the marval is
that Mr.. John w. Garrett, who was
brought up to first-class commerce,
should have INDUCED in delusive book
keeping.
Col. Thomas A. Scott claims for his
company the modest surplus of SO 054 -
1877. Mr.. Garrett claims for his S36, ,022,-
355 To retain losses as items of credit
when they ought to be items of debit, is
altogether wrong. Upon fair rendition
of accounts Col. Scott would show de-
felt of somethingihke $4,000 600, and
Mr.. Garrett about Sl0,000,000. His "as-
setts" figure for $87 ,910,6S2, while they
are not worth more than S54 ,060, ,436, as
will presently be shown, His "liabilties"
are stated at Sal 1888 ,318, which figures
do not include the guarantees of the Sc
curities of the Marietta aud Cincinnati,
Pittsburgh and Connellsville, and Balti-
more, Pittsburgh and Chicago Compa-
MES, for which his company has to pro-
vide, amounting to about S24, 900, 900
more, which makes total of S56, 900 600.
Iu the assets, the cost OF road, rolling
stock, real estate, Onlo river bridges, and
Metropolitan and Chicago branches is stated
at $5S, SAT ,557. These figures are reached
by charging year after year many items to
construction which should have been char
ged TO revenue, aud no allowance hasl ever
been made for depreciation of road or roll
lng stock. This asset ought TO be reduced
$40 ,000, 900. Then there are shares in other
companies of the nominal value of Sl7 7O5,-
453 Most of these shares are worth ess,
| and the over-vlluation OF them is about
Sl4, ,000,O 900. The cash advanced To the
PaTkersburgh and Connelsville companies,
S5,54S 277, cannot be regarded otherwise
than total loss. Then come balances due
BY other companies. less the compony's bills
payable S4 SOL $50. THIS item is valueless,
| aud the real loss would be seen If the total
amount due by other companies were Civ
en- but by deducting the amount OF the
floating debt supposed to be SS,000,0o0. the
exact truth is obscured from view This
| amount added to the S56.000000 named
above makes the total liabilities about S64
100000.
The deductions from the assets, it will
be seen, amount to S33.S5O,247, reducing
them to S54 ,060, ,436, leaving deficit OF
Sl0,000,000, and this is based upon the most
moderate estimates. As the ordinary share
capital is but Sl3 IA, 100, it follows that
two birds of it nave been lost.
The city of Baltimore owns $1,000 900 of
the stock. The Johns Hopkins University
Sl,500000. Mr. Garrett himself Is said to
hold S2,O00,000. which, if true, causes the
three interests to represent $1,000 900. A
large portion of the remainder is held by
trust companies and wealthy Baltimoreans-
Unlike the shares of the Pennsylvania, very
few of those OF the b fillmore and Ohio ar1
in the hands of small holders. The BaItl-
more and Ohio and Pennsy lvauia Compau.
les accounts are as much cooked" as were
those OF the Central OF New Jersey and the
Philadelphia and Reading. 1t Is no longer
'dlsloyal,' either IN Baltimore or Phllade-
phil, to say so. Both CITIES have mauy
men "nalives unto the manner born," with
business heads upon their shoulders, and
who, consequently, can read between the
lines OF railroad companies reports. No
one wishes to harm hair OF the head OF
any OF these railway kings-who, doubtless
are greay sufferers themselves-but 1t Is
very wrong IN them TO initiate the example
OF the late George Hudson, for figures
ought TO tell the truth In the opinion OF
many ct rs Phlladelphiaus, there cannot be
ren-~el prosperity uuul all the railroad
bub'es hurs;.