, 1881-06-26

wv ny n.n f1n,a rr''t-nr ;rrnstep he under
tnn " " ranrnsent rncni1,fs fron he sale
GoIttact ~ rtt,sS f.r tja rnnas isferiect
uG'soll, Lle ~ f;rncEsr T'r,,Sfr,
VI w. 1;.at ,, feom tba rnmtinin,
leplesetS,u ~, tie ineu,.lE e 1!" rna,ca rnm,irrrr
u ar rls oo,nf o., la m aI d ~ "s1a nnine to do witt
| iele'i1 acco"n1' "i''' ''"o ''o''''4As'
| II, SC ,.ho-,,,e rho t,vf
m,ceser ,r,s wJS i;nir,htv X ~ hefo@ INQUIRY
;to .i,n '.,s o. ~ tha 3,aratinns Of thf
LILY sg 4o y, ,,,,inI, III Is nr"bnly thei1
tn,. 80; .;t M",a ,,t" ,,,I ti,a1, h,vn ,ee,, con
t,... ' p,,.p nccou',te n The hnoEs 10 tfatu
- ~ io @ ~ 1rs1 I've Snn1hnr,, I,ocifir
R9,tl ~ ;,a1 ,n'ar pnl n,,erntions Of the West
r t,n.t,.''art f:n.,nnr,- Lan, h,,ilt to t1e
Gvtnm ,,v whn nd hen taken into the close cor:
,nrnt;,, n;a.1 fnIin,"aJ SN,,t months later by
Wnrt. Itrrnt @ IT,, 'I,,o survivors concluded to
rncnnstr1ict n@oin, and accordingly formed
the P"citic fn,nrnvsmnnf t;omnauy as the
,oI,ters hainp Sta"fnr3 Huntington and
a;rnn1..r .,tni tha ,stnt.. NJ Mark tIoukius: OF
the lattnr "' threa-siyteenths was in Tie name
~ tha ,s,;,losv onn thirty.sucond in
tha name Of r. IIoukins, und a
ria nov, cnrnnrati|,, m tf,e Inndel If It's pre-
ia"osrn"e ~ ne f1'rn,.,,, Nnx 1ssS ami he
ea,, w"ri; miller contracts with tie Southern
i f'nnifsc % nf ariznna ntnnce nithongi, is books
were not opened until the following janu.
ary. All the property tools, lumber, etc., ol
t1,rnnd nvar to the Pncitic l1nurnve,netlt on
an iuvnntnrx, of va}mf. mali. hv Charles
Crocker's employees, by Charles CrocEers al-
rection, and ut his command the transfer was
h.. lie "4i I"m,nv noarI ~ iiroctnrs of fhe
Wosfnr,, nnvaIonnent viii, nnntv at their
ha.I ina 8 II II 4 r accottnt ran ~, nil
the time, the members Of that firm using their
close corporation MS 4 bank, paying IN their
loans, drawing on it oil individual account,
private use. and drawing first 10, then i. :,
and, since Jan i of this year, per cent per.
annl,m oil their deposits, i'll addition to the.
diyidend: -. 80. .,.. ... ..,. - .;,o
profits Of the close corporation. by means of
which the Directors of tlle Southern Pacific
built the road for the stockholders, and i'll
itself it is pretty good return on an invest
est. But there is nore behind it. Early in
1878. it being NECESSARY to settle up the estate
vi tie deceased member, few months be-
fore the transfer Of the Western Develop
ment to the Pacific Improvement an entry
velopnlent Company carrying $50, coz, COO to
the account Of profit and loss. Douty said
lie WAS not certain about the date, but lie
Thought that this was done shortly after the
death Of Mark Hopkins. Under the sug-
gestiye questioning Of the railroads attorney
he said that Il profit and loss account was
opcrpd for the purpose OF cltsing ont a lot
OF dead ACCOUNTS: it might lust as well
have been called a "Ieat[-hOrse' ac-
count or ANYTHING else, but profit and loss
was the usual technical term, lie was after
ward, however, compelled to acknowledge
that 4 profit and loss account, whatever name
,uirht h. uivpn r., II ,yoa ar orconnt in which,
hook are carried where the difference he
tween the debit and credit side shows the
earned, and in that light tile testi-
nnUly places that nillon-dollar entry.
Proceeding little further back, the ques-
t!ontig disclosed another item Ut profits tor
lno CLOSE oEpuIalioH ol 10uE, III auultlon 70
mn Il u.oc taet;t;,I ~. n,,,,t,. tt,at - 1v--
~: ~ "t.s tGSttneu ~ Lu!t9 lh1t ~ 1o'4 u
wv NcH't WAS succ!stlco illu tt!st[luuleu ;tiiiotl
the close cnrporators Of S3l, 600. It was |
Il distribution pro rlta of stocks and bonds, |
calculated 01t their face yolue which hnfi |
accumulated in PAYMENT of contracts for |
~; 1i;n.- t1,a ra,, ' ~ ,.as ~ Sfr i1~'-trtn
s;raI - 1;.t;ott- ,4gnr"t,na " nt1 ~ ~ ~ n;
=. - ' T ~, -. ~ ~ ~ aao
tuestIo!,e ~ appcateu o!tl JuuEe oaitletsoh'
eAe iatlloau eoHupah3 eilel at!orllt5,--a
|,1yinent on their loans or deposits III the
" cSlerll DefelOpnleflC Company. Dut was
charged to dividend account
SUlon Pattet, the expert employed at the