New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-21
AFFAIRS OF THE B. AND o.
ANNUAL STATEMENT OF THE CONDITION OF
THE COMPANY.

v.Nors .suRpLUs FUNDr-GossIP ABOUT
THE CHANGES IN THE DIRECTORY
WILL SPENCER BE CONTINUED
AS PRESIDENT
rsY TELEGRAPH TO THE TxIBuxEJ
baltimore. Nd, Nov. oo.-Gossip the changes
IN the directory Of the Baltimore and Ohio Railroah
Company was continued on Change today aud Tie
general conclusion reached that the committee ap
pointcd some time ago make thorough investiga-
tom Of the financial condition and the general nsn-
,crueut of affairs had received desthblow. 1t Is
noted that three Of the committee of FIVE on the IN
yestgaton of tie oompany's condition have oeeh 70
tired These are Messrs. Keyser, who was FORMER
president of the company Judge Doooin, anu
James l. McIAne. Senator German and Mr. Linhan
are the only remaining members OF that commi''ec'
which not yet completed its work III ioohs Us
though the new directory were ,unfriendly 10 MI.
spenccr The opinion was also expressed 'na'
Charles r. Mayer president Of the Consohoateo Ooai
Company and for many years prominently iden'ihoa
with Baltimore and Ohio interests, would succeed
President Spencer; that there would be no ehanee
made at the coming election. President Spencer would
be reelected, and in few months he would retiN'
II is understood that Charles F. Mayer, William L.
Fr,ck the fathern-law OF Robert Garrett and james
Sloan jr prepared the ticket OF directors elected yes
terday and that Mr. Spencer was hardly cohsuieu III
the matter These three gentlemen WILL no doubt con-
troll the future policy Of the road
voted shows that Mr.. Frck voted 64,1a6 shares, he
holding the proxies of the CARROTS Grsggs, Burns and
all other large interests The total vote was 66,lOo
The fact that 10000 shares of Johns Hopkins oh'-
yersity was ignored also caused great surprise
prominent hnsncier says he does not oeheve
presden. Spencer knew anything about the cnanee
until the work was done. 1t was comoine'icn
ticket he said and a strong one, and the Big IweVe
ran be relied upon TO stand by the leaders all 'ho
time In his opinion the outlook does not look rose
hued for Mr. spencer notwithstanding the asseveraons
that he is to continue as president
WHAT THE ANNUAL REPORT SHOWS.
TIE annual report of President Spencer viii De
published tomorrow. The report Is 'ne ions'e'
financial document ever issued by the company 1t
will show the earnings to have been 500, 491 "a
expenses $4,000 561 90 net earnings SO, lo293o 80
income from other sources 81 ,206.96o So After De
Quoting the net earnings of the Washington orancn
and paying interest the entire bonded Indebtedness
and rentals and taxes, amounting 10 S6,soo's'2 o.
there was a remainder Of S50S,9 "a. Payments IN
reduction OF bonded Indebtedness make the balance
s124431 So The decrease in gross earnings for the
year WAS 1905 544 &C. This, with the increase OF
ssO43OOe in expenses, makes the net decrease
1894 IS.
The report explains that the differences In account
ine more than make up this decrease. These diner
ences In 1883 aggregated S847,11s 49, "hiie tne
financial showing is not so encouraging the report OF
the trafic is better The various lines carried an
aggregate of l1l95, $40 tons, increase OF o2oo4'
tons The number Of passengers was 7,l2o,4S2, an
increase Of 465,s 1927. The tonnage into and OUT OF
New-York waa 1891 TONS an increase OF o2 IL por
cent The tonnage into and out Of Phiiadeph'a was
900, 1877 ar increase of s. per cent The Heating
debt during the year reduced under the opera
tons of the consolidated mortgage IS 291 1OS 3d. leav
ing on September s3475 ,o1O S. against which the
company holds 80, s42, 246 61 including i've millions
in western Union stock and million in United States
Express stock Payments aggregating S9,24e'oI "a
were made during the year
For the first time In the history Of the road that
much talked Of and exaggerated surplus fund Is
officially explained 1t is not fund, but simply a
credit of profit and loss, representing the differences
between the OF the company they appear on
the books and the liabilities. The reduction of this
s,rplus to a valuation on strictly cash basis has
alneady wiped out So4, 766, 7o5 o. The lucid
Ynlanat,on of this hitherto remarkable surplus is
really the FEATURE Of the report
HOW THE SURPLUS FUND WAS REDUCED
The most conspicuous feature Of the report is the
.ras,ire of more than a half of the famous surplus
fund.- Oh which many stockholders had hung their
hopes for many years until the actual necessities OF
the company exposed its false character The cour-
are that meets the result of fair account Of stock
&c rare among railroad officers and fer this reason the
report Of President Spencer is likely to attact wide
attention The details of the statement are valuable
in an way to holders Of railroad securities
because they show how surplus funds are swollen
easily without improving the prospects OF the owners
From advance sheets of the annual report the follow
ing interesting facts about the surplus fund were
taken yesterday:
The reductions in the surplus fund, which amount
V s24 76s 75o OF have been made chiefly IN evslus,
ton OF the stocks and bonds ana other propeIes VI
tie company and of claims held against subordinate
companies, and have been made suDstahuany upoh
I. Wherever interest has been charged against
leased subordinate companies for series ot ean
sufficient 10 Justify the expectation OF conec uon
within reasonable time the claim for ts sGSn
on the books of the company reduced accordingly
stocks Of snbordnate companies which for time
past have proved 10 be nonoivldend or non 800
reduced on the books of the company, in many
nominal amount. s.,... ,o
certain of its subordinate or leased lines for purposes
OF permanent improvement and there IS no immedlate
sum has been written off the books of the company;
" There has been an approximate ie,yainstOn Gi
the companys cars and engines and a reduction maze
pSn sh9 Of S This reduction makes
the equipment stand at about 20 per cent OF us Cost
which are 60 now uncoleciible, have likewise been
The Examination which has resulted in these re-
has @ ss HerSSe e
bonds and stocks are follows: =. 600 aos
ssS";% Ssisss
%S SsShaS'o PittsSurs and BatImers Railroad
Pittsburg and Connellsville Railroad 3aad4S
Newark; ooinsr Se' anu '''" 2G1. 769
South DIsnSh, o,,s ..rd s,ocks 81 29S
ro., 90. 1877 O4s
The e0 par value of these securities sa2sas
the cost 10 the company 256 40 ana the pres
emit value on the books 81 354 ,237 81.
The advances 10 subordinate companies al preseh.
uncoIlectble which have been written on, are as
follows: - ,oa ,oo
Ia tmore and Ohio and Chicago 50 Ss2 dG
Itttsburg and Connesvtlle 1--WE
Sandusky Mansfield and Newark Se0 aoa
Newark and Straitsville A5,SOz
81 Parkersburg Branch z.aaa1
a and Cambria 1ao'00Sot
II Winchester and Stasburg OO'-7'