The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-11-15
EXPERT LITTLE'S REPORT
ON THE FINANCES OF THE
SANTA FE ROAD.
It Reviews the Financial Workings OF
That Road and All Its Branches
For the Year Ending
June, 1894

New York. Nov. 12-The report of Expert
Little, who has been investigating the ac-
counts of the Atchison, Topeka and Santa
Fe company, has just been made public,
being issued at the saIAe time in New York,
London and Amsterdam: 1t is addressed to
Il. S. Hayes, chairman of the Atchison gen
eral reorganization committee. Is salient
points are as follows;
First-The net revenue for the year end
ing June so, 1894, exclusive of the Atlantic
and Pacific, Colorado Midland and ST. Louis
and San Francisco, was S5,906,614. This in
cludes an installment of $35O,OOO of the
Sonora Railroad company subsidy which will
be deducted in considering earnings as a
basis for Il plan of reorganization. If this
subsidy is deducted, the net earnings would
be reduced to $5,6O6,614. Interest charges
which are prior liens to the interest on the
per cent general gold bonds, leave the sum
of S4,S16264 applicable to the interest on
$12S, 36j, 800 of these bonds outstanding in
the hands of the public, which is equal to
only 3.75 per cent. The AtchisOn company
lost 500, S24 by operating the st. Louis, Kan
sas City and Colorado railroad and the net
earnings would have been increased $341 ,4O1,
being the amount contributed by the Atchi-
son company under the triparte agreements
with the AtlanN and Pacific and St. Louis
and San Francisco railway companies These
| two sums, added to the net earnings, would
| ing these figures as a basis for reorganiza-
| ton, it must lE taken for granted that the
present floating debt of the company will
| be provided for and will not be charge
against future revenue.
| But, while it may be said that interest on
| the general As has been Substantially earned,
| the earnings depend to some extent on the
maintenance of the integrity of reOrganiZa-
| ton. The auxiliary systems are a severe
drain on the general system. Under the
| present system of fixing the charge, the loss
| on the Atlantic and Pacific is 81 $3.50 one
half being chargeable to the AtchisOn, the
| loss on the Colorado Mirland being 6$47, 574
and on the st. Louis and San Francisco $780,
| 662, all chargeable to the Atchison. The re-
suits of the adjustment may be reached
with these companies, If retained in the sys.
! TEN, and there on depends the real surplus
available for payment Of interest on the
| Atchison general A. taking the earnings
for the year ending June 3d. 1894, as a basis.
The net floating debt of the entire system,
exclusive of the Indebtedness of one com
pany to another now overdue and accrued
I in the unfunded debt, is S9,140,5SS On
the Atlantic and Pacific it is $5S0,509; on
the Colorado Midland $1S335S and on the
St Louis and San FranciHO S6ST152 The
gross unfunded debt is So, 106,3S1; the
gross assets. S4,696179; making the total
net unfunded debt Sl0,401,202 The in
debtedness on April 30, lS9i, of the Atlantic
and Pacific was $500, $50 to the AtchisOn
company and $6,Sl9,200 to the st. Louis and
San Francisco. The Indebtedness of the
St Louis and San Francisco to the AtchisOn
was 81, 661 ,269 and of the Colorado Midland
to the AtchisOn S1,595,916, which claims,
aggregating S16,040,920, are apparently
worthless and should be written to the
debit of profit and loss. The interest on the
funded and unfunded debts and the deficien-
cy in each year from 1891 to 1894 is as fol-
lows: 1891, interest STAG, 1854, deficiency
ST. 1854, 2S5 1892, interest 81, 914, III, defcien.
cy $50, 93S; 1893, interest S. 722, 40, deicien-
cy 81, 664, SIS; 1894, interest $S,954.S94, def
cheney S3,00S, 242; making total deficiency
for the year Of So, 16S, 292.