The daily morning journal and courier., 1894-08-10
REPORT OF EXPERT LITTLE.
HE FINDS THE ATCRISON SYSTEM
 IN BAD CONDITION.


 Although He Has Been Able to Obtain Only
 the Balance sb ,et, Ho Has LearLed
 Enough to Justify Him in Making a spe-
 cial Report nt Once.
 New York, Aug. 9.-The report of Ex- pert Little, who was employed by the Atchison general reorganization com mittee to investigate the books and ac- counts of the Atchison, Topeka and Santa Fe road. was made public this evening. It is addressed to R. s. Hayes. chairman of the committee. The report says:
 The two subjects with which you specially charged me were the ascer- tainment of the current or unfunded Gcbt, gross and net. of every descrip- ton on April 30. 1894, and the companys earnings capacity for the then current fiscal year ending June 30, 1894, together with an analysis of the income since the date of the last reorganization up 10 and as far beyond April 90, 1894, as could state 1t. At the present writ ing I am unable to report formally eith- CT on the earning capacity of the fiscal year ending June 30, 1894, the indebted ness-eastern and western comoined- existing April 30, 1894, or the general fianancial condition at the latter date for the reason that have only now been able to obtain the balance sheet of the eastern books of April 30, 1894. Enough, however, has come under my observa- tlun to justify me in making this spe- cial report on the income of the property for the four years ending June 30. 1894, in advance of my final report. The re- port says the overstatements may be classified as follows:
 First-Rebates. For the four years ended June 30, 1894, the debits for re- bates to shippers on the Atchison sys- tenn aggregated $3,7OO, ,776.92. And on the St. Louis and San Francisco system S205 5,S79.49. Or total of $399,655.41. This sum was charged not to the earnings, whence 1t came and as it should have been, but to an account entitled audit or's suspended account"
 Second-Additions to earnings and de- auctions from expenses. Next comes an aggregate of $2,793,o00 which on in- structions from the east was credited from time to time to the earnings and expenses respectively, but which cred its had no foundation in fact. Of this aggregate s2,010,0 ,000 was added to earn ings and $7S1, ,O00 deducted from opnrat- ing expenses, the sum of the two being debited to auditors suspended ac- count"
 Third-Improveme The sum of s4ss,O00 was transferred improperly as MT. Little contends, from operating expenses to improvements or capital account, these improvements being fin ally closed into the account of fran chises and property"
 Fourth-Traffic balances. A traffic agreement for division of business was formed in November, 1890, running to July, 1891, between the Atchison company and certain other companies, whereby such other companies were charged with balance of $305, ,84359, which the Atchison company was una ble to collect and which is absolutely uncollectible and should have been here tofore written off, thoug h it still stands as an asset.
 MT. Little summarizes the accounts which should be written off as follows:
 Atchison system-Franchises and property, $1,612, 2,11O.55. Improvements Otherwise franchises and property) $43s,OO0. Auditors suspended account, special, $2,OSS,e6637. Auditors sus- pended account. $2,791 OO0. Southern Pacific, pool balance, s223, ,627.95. Union Pacific, pool balance, s77,215.76. Total Atchison, $7,2S5. .620.51.
 St. Louis and San Franciso system Auditors suspended account, special, $205,87949. Grand total both systems, $7,491. 800.
 MT. Little says there is an account or transfer in March, 1892, of $152, ,O51. .45 of earnings and expenses to franchises and property with the propriety of which he does not agree. Unless this can be supported by facts and figures 1t must be added to the $7, 300, which would augment the overstatement of income for the four years.