The evening world., 1894-08-09
REINHART'S REPLY.
He Denies All Of Expert Little's
Charges
Accounts for a Larger Sum than
the Alleged Deficit.
Myers Committee Withdraws Its
Letter to King.

The regular Atchison Reorganization
Committee met at 2 O'Clock this after
noon. Mr.. Remnants reply was sent to
the Committee at that hour. Col. Nc
Cook was present by request at the
meeting. as receiver, to explain to the
Committee about matter having no
reference to the Little report.
The following Is the fun text Of Mr.
Remnants reply to Mr.. Titles report:
"R. Somers Hayes, Esq, Chairman
General Reorganization Committee,
Atchison, Topeka and Santa Fe Com
pany, City.
Dear Sir: More than ten weeks ago
your committee, with my hearty APP
prevail, selected Mr.. Stephen Little to
examine and make certain reports con-
corning the accounts Of the 'AtcSison
system. These accounts pertain to many
independent corporations, each having It's
separate set of books. During all the
time the entire accounting force of the
system has been at the SER
vice of Mr.. Little At o'clock yester-
day afternoon your secretary handed me
a copy of Mr.. Little's report, and from
a letter shortly afterwards received, l
understand that you expect me to fur
nish by o'clock to-day a statement
covering the matter which Mr.. Little
has taken weeks to investigate.
LAS you are aware, most Of the books
Of the system are not kept in New York,
and ] need hardly say that such books
are not kept by myself, but by book
keepers employed for that purpose. The
principal charge is that the income has
during the last four years, been over
stated to the extent of about 1000 900.
The earnings of the system for the
period named amount to about $3.50, 900, OOo
There Is no charge that the disburse-
ments have been overstated or that any
dividends or other payments have been
made the basis OF the alleged over
statement of earnings, as they are less
than IL per cent. of the total earnings
for the period named, you must assume
that there is an entire lack of motive
for wrongful statement. To havethe
earnings at less than the actual figures
the security holders, and particularly to
the income boudholders.
I'm the short hours allowed me l have
found no difficulty In pointing out some
of the errors into which Mr.. Little has
fallen. | find that 81, 100000 of earnings
Of the Atchison system deducted from
it's income account under the agreement
with the st. Louis and San Francisco
Railway Company of 1887. as shown in
the annual reports and properly to be
cisco Railway Company, are totally is.
nored, and yet all the stock OF
that that company is owned Sn by the M ,.oad
Company and certainly the stockhold-
ers of the latter Company. who paid a
large sum for tie stock of the former
such earnings In other words, Mr.. Lit
tie ignores 81, 100, COZ of actual net earn
ings of the ,Atchison Railroad. and gives
them tn eI,', no place in the statement Of the
u also find that Mr.. Little refuses to
stateg currency. subsidy from the Mex
way Zone OF the Atchison auxiliary conf
panies), which is an undisputed claim
recognized by the Mexican Government
covering earnings on freight in transit
on through billing for the last week in
each month. has been ignored by Mr.
Little, notwithstanding the fact that
Stsd ey os change 9r.Sht from for
received basis, and Is strictly in accord
ance with well-established and recog-
nized methods Of revenue accounting by
other railroads Of EXTENSIVE ext, mileage -
either overlooked or refused to recognize
S2@32 900 OF interest earned from Jan. l..
1880, to Dec. %, 1898 date OF appointment
OF receivers). on advances made by the
Atchison and San Francisco Companies
to the Atlantic and Pacific Railroad
Company, which intrest so earned is an
In adjustment of the accounts OF the
three companies named must be treated
as an asset Of the Atchison and San
Francisco Companies. belonging to their
income account.
"s,i.l further do ! find that Mr. Little
has not included about $500 900 of profit
'SThe items Of .t,si3: iiC.SS and .ls2, Sol q.
making an aggregate Of sl,765, o6l. So,
p wSn M to the ssS SsSrs nd
, erty accounts, for the reason that they
, represent expenditures made out Of the
| revenues of the reorganized Company
Which applied TO the operations opel
OF the property prior to the date of
; reorganiEa don, and should have
been cared for under the forty-two mort
cages represented under the old Com
pany instead OF the two mortgages OF
the ,os; CSmpany. This asse.
the other side OF the income account,
and as Mr.. Little himself has stated In
rails report, in the the end the effect on
same"
The items have mentioned more
: than cover the alleged over-statement
of income for the period of Mr.. Little
not time in the limited period me to go
into further details. To be strictly or
technically accurate, !, too. would have
TO do what MIR Little has done--take
he books and the accounting forms of
the system and spend considerable time
In examination.
MIR. Little thinks that hundreds OF
thousands Of dollars earned as a subsidy
are not earnings ! think they are He
| thinks that sl,l00,000 deducted from At
, Gibson earnings and given under con-
tract to another line In the system are
not system earnings: ] think they are.
He thinks $4,000 Of profits on invest
ments Is not income; ] think II Is.
repeat that the above items are
sufficient TO account for the alleged
over-statcment. and $500 900 more, their
total being over 5000, COZ, and fully JUS
tines every statement the Company has
, ever made.
MIR. Little staes that on the 3Oth day
, OF June, 1899, the Company did not have
on hand the amount OF cash shown by
the books. While ] fail to see what
bearing this statement has upon the
matters which Mr.. Little was called
upon to examine in relation to the pro-
posed reorganization OF the Company, I
yet desire to state most emphaticaily
that on the date referred to the Com
. pany actually had on hand in cash and
cash items the amount stated In its re-