New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-10
WE'RE ACCOUNTS JUGGLED?
,rrHISON EXPERT REPORT.
SEVERE ARRAdNMENr OF THE CON-
PANY'S BOOKKEEPING.

~,pHEN LITTLE GIVES DETAILS OF ALLEGED
o,sRsrATEMENTs OF INCoME-REBATEs FOR
Ann 600 IMPROPERLY CHARGED-A TOTAL
DISCREPANCY OF $500 Ooooo-rREslDENT
RElNIIARTs RErI.Y-sTATEMENT OF
COLONEL. M'COoK-ACTIoN OF THE
DETERMINATION COMMITTEE
Tho story Of the downfall of the mighty Atchi-
am Topeka and Santa Fe Railroad system is
.,ov,v being completed. The revelations as to
Az. true condition Of the property. which went
toto IN. hands of receivers on December %. 1S93
a-s, meet the public eye in the report herewith
n,,,,ed of stephen Little the expert accountant
rho recently examined the books Of the com
..nv Perhaps it was the discovery OF these
.c,e now brought u light, that first crushed
,,a snrit of George C. Magoun. the banker who
D. wears was the financial mainstay of the COM
,.rv and whose death, on December 20 last, was
.f,,v followed by the bankruptcy of the sys-
49, no han long upheld. In the figures now laid
,.tore the public by Mr.. Little can be read some
-. ,,a causes which wrecked the AtChison last
~.r,sr sprealing dismay and infiicting terrible
,sas unon thousands of investors in this
ou,trv and in Europe To the representatives
=, tho home and foreign bondhoders who have
,nosved the result of Mr. Lttle's Investigations
and heard the reply Of Joseph w. Reinhart. the
rrssident of the company and for years us au-
a,,or in complete charge Of the companys ac-
counts. there is an uncOverns of policies against
wh,cb II, corporation, however solvent, could
contend forever.
MR.. IITTLE'S FINDINGS.
According 70 Mr.. Little's arraignment there
~. baan nearly 81 000 OO0 rebates to shippers
h,ch haze improperly swollen the companys
.oo,,e account in the last four fiscal years. ana
.hor. g. 100000 additional items have peeh
counted in the annual reports when they pos
..ssed no character whatever as assets By ths
showing Of the expert accountant. the income
credi, standing on the books OF the compa'!
.hould he replaced by an actual deficit In these
revelations II not offset by fuller explaha'o"
than President Reinhart has VouChsaieu 'ne
General REORGANIZATION Committee can read 'he
..crat NJ Atchison's unfortunate collapse last
December c,-a,
There was a full attendance when the "eHerai
paorsanization Committee convened yesterday
afternoon. Only General Louis Fitzgerald rreu-
.r,c p. Olcott and Adrian Iselin were absent
There were present r. Soiners Hayes "iiha'ii
Mertens. representing l.. Won norman q Co''
Edward y Gibbs, George G. Haven "'''a''i
Rotch and b. Rodman Weld. c. G. Beamah anu
John r. Dos Passos. counsel for the comHi'tee'
were also present The English bondho!oers were
represented by Robert Fleming and the Aihs'er-
sar, Committee by John Luden. Wheeler n.
Peckham. counsel for the Union Trus' Company,
trustee under the Atchison consolidated general
mortgage was there. Thomas Barring, OF Eng
? land was present for the first time at a meeting
~ the committed Colonel John J. McCook. one
the receivers and the general counsel OF the
nmpany appeared by invitation
COLONEL MCOOKs STATEMENT.
Colonel McCook was asked for his views on the
points covered by Mr.. Little's report anu repheo
as follows:
have from day to day DELAYED speaMking Ak upon
report to the General Reorganization Cohlin tee ;
am general counsel of the Atch'son cV,npax;
the legal affairs OF the system, with us
mileage and complex legal organization ma nav i.'y IVY
occupied my time and attention, a,srs % and have
NOT given special attention TO the detalls 9i to ~
denas;ments further than 70 satisfy myself as a., an
oscer and director of the company that those de-
partments are conducted by experienced ana cap
wish To- state in the most explicit way that, II
rebates have been paid by the company II mas "
'cre wnCv' o ayr6vsd my by the directors OF the Atch
,on company In dealing with competitive trafnc
fair Proportion Of business apply TO the traftc
associations protect its buslness aha h com m
pany would give the notice required by the assoc,a $50
Sion rules Of their proposed retirenent ron ~" onen
rate 70 meet such competitors. Such proceTuu e :
eOnformed the best railway pTacGee a act
and II was believed to be effective ana suinc'eH' ~
protect the companys Interests tho form Of rebates
Or otherwise has been offered or given Dy u,e M
company to shippers It has been done without my
The cenduc, q the accounts of railroad com,
psny is no more under ~ 'he the company han the
trafhc depart ment. The books OF the Atcinasg iaers
sns.1 ne hare @fson Sssn d se BY
with other officers and directors OF me Atct1o. mn -.
that ihe accounts OF the system have always been
stated clearly, fully and accurately anu N,
hat the accuracy Of the accounts OF the company
had been called In question IL - pa pya svs
tenn Of rsiiwsv ~ especiaiy one who is closely occu-
ped with the conduct OF another rnowiedge
Of the accounts or Of the Items entered therein nn
le" he is experienced bookkeepe1 an hns, Ina,
ofcers and directors can do is to secure the s. r
vice, Of capable and experienced men 10 w ''''
The of,cers Of the Atchson company: having en-
s sOnadence in The Xacty Fl n to Mr. @
2 make most thorough and complete @ examine NINA,
u Of the He has had Ynrs unrss'ctea weeks an
Ria satisfaction to personally as am ,ba H,'
Little ls'f,Teas fepors Of that ane he ds thai
Of the receivers have. in all respects Deeh az
Mr. Little reports that from July. 1889, to Deem n
sss lsss the period preceding the shas in hi
Sp.nlon been largely overstated -, .ho CO..,
whatever conclusion may be reached py ,bey tns sus
"a Reorganization Committee, whether my su !,
vn the position Of Mr. Little or MI heanuai. haH, ~ ~
an matter ! wish say in the most ueiI,e u,.a ~,
Spieit way that II the result OF the ekd"hin una % :,
you'd show that the companys accounts nav nav a. -
s respect been kept In an Irregular aarcomntn,
~ ~. strict. compliance with best ~ ~accou'th,v ~ ~
nelaod or that the earnings of the company i,n an
~ any respect overstated II mas pen bn m,
s.saoE my knowledge and. 0. course withou' III
mr. Barring then made brief statement II
esard to the subject. asserting his ignorance y
'he existence OF rebates or improper methods
keeping the accounts and saying that, owing L
as absence abroad he had been compelled 70 rel!
'arsey upon the manag cement Of the American
directors and officers.
PRESIDENT REMNANTS ANSWER