New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-17
twenty years with railroad management, said
this OF the way in which railroads are run to


Atchison. Reading and Northern Pacific make
every one lose faith in railroad securities and the
&c, to prison for just what Reinhsrt. Mcleod and
Others have done. Mr.. Reinhart should never have
opposition to him by the English stockholders and
ness in the place have come true. He was too
young man for such place. believe that the
Denver and Rio Grande western of Of having va a
stockholders accountant examine the books an ex-
cellcnt ole. and hope to see 1t adopted by more
roads
WHAT II. w. CANNON THINKS ABOUT IT
Henry w. Cannon. president of the Chase
National Bank. who Is a member OF the Reorgani-
cation Committee Of the New-York and New
England road. and who has close relations with
several important railroads. said:
No remedy for the state of affairs disclosed IN
Reading, Northern Pacific and A;chson is 10 be
sought in Governmental Intervention. There is 700
much Fedora supervision already for the succession
would become dangerous If any attempt were
made to increase Government cCniroi. Enlightened
da.s; not a spasmodic disp ay of Indignation. which
coois in short time. but continuing sentiment.
among corporate managers directors. Pubic
opinion is now crys;al.izing in a demand Tor
degree of publicity by independent Accountants
Stockholders should require periodical examinations
of the books by accountants for the benefit OF the
owners The New,York., 0ntaro t ana u MS xtrEa
under the English system Of examination ana every
year chartered accountants verify the books OF the
2y ana reP Dd r To e that the directors should
manage the affairs OF corporations put aTec, tG
ought really TO direct. No board shou.d De toeidt'u
by stockholders except composed of men 80
high in the community That they couId not diOIu
conduct. Every y board should also contain two or
three who are we! verset In accounts anu ao,e
to anayze any statement There are TOO man raj
road directors who are ignorant Of the nrsi pTn.
cipes OF baanGe Sheet cnre reor
that they should show more activity than IN the pas.
Let the mnoTy nSn nSs ER d must
be alive the necessity of having hrst-c;aSs mn
year after year unthinking-y to the same men Inc
performance of their duties by st9ckn3.deIs wouai
and there would be no opportunity for scandals Ike
those have seen in the last year.
George Ru;ledge Gibson said:
There is scanda. in the Atchison bookkeeping
observers in Wall Street. although the sca.e Oh us
many instances have all known where the sur
p.us Of company accounts was as ''base.ess as the
credits are shown no; 10 exist. but never sees
the dregs in a cup until the bottom is reached There
is at present no guard against hagrant ana criminal
Geceving OF stockholders and bondho.ders IN our
corporations except the good faith OF the managers,
bank railway or industrial iT aey9 Is
that the larger number OF directors ddn, diIec ai
managers or officers directors wrecked the con-
Germ. There Is only safeguard and only one rem
edy for bookkeeping abuses and that Is Independent,
dls!nterestei expert examinations ana reports 20
\
holders of various companies let the stockholders de-
mand the privilege OF expert inspection 81 thg Oo'hs
OF the companies In their Interest and behaIi, ana
that they shall have the right to se.ec; such *.
per,s who may have ready access 70 the companies
0 oSRfs st sta r,ifs Of The companies
The manogeTs Of ,b soWe s Iead % dscosure Of
their business secrets 20 competitors; 1here IS 10
that 9te every man mus; keep his own books IN private
business. for fear ;ha; his bookkeeper VIII beuay
his affairs 10 rivals. An expert bookkeeper Is az
91ar.f al a N
and II he finds the official report correct ne does
nohns moT his man duty yef i disclose the facts; What;
ever the effect may be on The business The .9ie
example would never have arrived at such com
,Ie,e coi,apse had an independent bookkeeper annu-
a ysn or ol he had Conveyed secret noraon
company's rivals. the damage 20 stockho'uers wJ,i
carer Of bad financing and bookkeeping Inflicted on
the shareholders
AMERICAN CREDIT IMPAIRED ABROAD.
Colonel ]. c. Rer. manager and expert stalls
,ic,an Of WoerishoMer & Co.. firm doing large
foreign business. declared that there was no DOUBT
that the Atchson disclosures had seriously i'm
haired American railway credit abroad. lie added'
The cause OF these dishonest methods Is 'he
srocria tive tendency OF the arrangements, az dem,
orns,rated bv the so-caled "gentemens agreement
OF four years ago Charles Frames HpanlS pr
sponsible for making bu, every person
en at the meeting went away ana d'sieSa'T T ~
H a. tia Newman OF the Chicago and Northwest
ern and he enumerated me many nm. ~. ,he r,ai,
trouble was the fixing Of responsibility ASK
him: sDo you suppose that any man under you
directly Indirectly grant or sd9Se,' h hy ,bei
10 npp,t amthoTize or condone ~? No he re;
nlled Then said: would you do 80 y you diI
not think ths eNesHi as, ceriahy not he repei
There is the truth OF iilegtimate rate-cu''ns IN
Th@ A.chlson revelations showing utterly
d nS e 2nd that the Old
not possibly be permitted to resume c9ntfo,: en-, ~
dn.ipin such feature OF vicious traffic man.pu-
lation II Will likewise attract the attention OF ,ng
a closer supervision of railroad methods, ana wiz
assure further legislation a. TO GTia. ,r an
oath that hereafter they wll gve SOM at i, ~
TO their own duties IS Nm aS 40 careessiy per-
miited to perpetuate themselves in power mere
are Two suppose that all companies at their
nevf annual meetings Will provide lOr puD',c aui
tor under the system of the Denver ana R9
other efcacious remedy Inc HeW W io L. ,han ali
change has more T canTT et tn, EHchanse
tablish an accounting department. unaer pippe,,
Regulations and whenever securities are s.sd ie
il have The power examine the accounts ah hd
books of the company and give tne - every
r"aJ which refuses to submit TO this examination,
There is cooperation in ms co Tnt even me
New-York Central could withstand II.
PRESIDENT FOWLER'S ANNUAL REPORT
President Fowler will say in his annual report
10 the New-York Ontario and Western stocKhoiu-
ers. at their meeting on the last wednesday III
September:
In view OF the attention recently given 10 tne sup %,
iect of the Independent audit OF inc acEoo lou, ~, 90
railway corporations, you are Ienuou wa,
1855 the statements and accounts OF your cU rraw
Wade Guthrie & Co.. public Accountants. OF 70,
12o broadway. NewYork, and the e IN ~
Your company for the last hscal year ~ heie"''''
!,rosonted by the secretary and treasurer. 1870, no
Tn. adoption Of this plan has not only ProEe a a.
ceptabie TO your Board of directors a,u ~ ,he
Due ranwners as well the public press. ioui ~
Scers and directors. moreover desire 10 al lines Ina
.'n,1v mn derstood that they VIII, AT an uncs, uo
nlnased TO supplement the usual annual and rs