St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-08-10

years ending June so, 1894. had been
oyeresti,nated to the amount of over
$1,000, 900. In brief, Little's report
classifies the over-statements as follows:
Rebates not deducted from income. So, zoo, III
Arbitrary additions to earnings
without foundation. ............. 2,010, 900
Arbitrary deductions from eX-
penses.. 49,. ...... ......... 7s1.O0O
Improvement account which should
have been charged to expenses. 4sS,000
Traffic balances worthless but not
written out t....................... 395 s43
Total s7,2s5,6ao
Amount of same to June 30. 1893,
date last balance issued to stock
holders was. ................. Sc, 272, 4T9
And this was covered in the published
balance sheet of that date by following
entries:
Cash deposits overstated ..... S8,2025
Bills payable understated. ....... 1870 900
Accounts received overstated. I,64uSi4
Franchise and property overstated. 2,1O0. ITO
Total Observation-Disclosures. So, 273, 47e
The remainder of the S7,2S5. $40, being
s1.0l2. 141, was created by similar en-
tries during the period from June 80,
1898, Till appointment OF receivers.
Inc overStatementS by years are as
follows:
Year ending June 30, 1891. .....S1, 600, ,0S6
Yeat ending June 81. 1892. ......... !, ,44g, 635
Year ending June 30, 1893 .... 2, I94, ,75S
Year ending June 81, 1894. .......... 1,0I2 14i
Total. ai................... sZ2S5, $50
The st. Louis & San Francisco reve-
nue account has been also over-stated
S2Q5, 5,S79 for rebates not deducted.
ReInhart's Reply.
President Reinhart in his reply de-
clares that the earnings of the Atchison
system for the period named amount to
about SlSO.000.000, and then goes OH to
point out the errors into which he
claims Little has fallen. He says:
find that 100000 Of earnings of
the AtchisOn system, deducted from its
income account under the agreement
with the st. Louis q San Francisco
Railway company, 1887. as shown in
the annual reports of the property cred
tied to the st. Louis d San Francisco
Railway company is owned by the
-4Atchlson. Topeka & Santa Fe Railway
company. In other words Mr.. Little
ignores 81, 100000 of actual earnings of
the Atchlson railroad and gives them no
place i'll his statement of the earnings
of the system. l also find that Mr..
Little refuses to include a balance Of
S45L9 Omitted States currency sub
sidy due from the Mexican government
to the Sonora railway Zone Of the Atchi-
son auxiliary cOmpaneS), which is an
undlsputed claim recognized by the
Mexican government.
find also that an item of S450,0O0,
covering earnings on freight on through
billing for the last week in each month,
has been ignored by Mr.. Little, not
withStanding the fact that such item
was fully explained to him.
further find that Mr.. Little has
either overlooked or refused to recog-
nlze $685., 600 of interest earned from
Jan. l, 1890, to December %, 1898. on
advances made by the AtchisOn tS
San Francisco companies TO the Atlantic
d. Pacific companies, which, with the
interests so earned, is all asset of these
two mDanies, and which an adjust
ment OF the accounts of the three COM
panies named must be treated as an
Rssekof the Atchison q San Francisco
companies. belonging to their income
account. Still further do L find that
MIR. Little has not included about
81, 100000 of profit earned by the COM
pany upon its investment in terminal
properties.
The item of $1,612, ITO and Sl52951
making au aggregate of 81, 785, ,06l, which
Mr.. Little also refers to. were proper
debltSto the franchise and property az
counts, for the reason e.it they repre-
sent expenditures made out of the rev.
ehnescf the reOrganized company sub
ssqnent to Oct. l, 1889, bat which ap-
piled to the operations Of the property
prior to the date of reorganization, and
should have been cared for under the
f0rty-two mortgages represented under
the old company. This asset was used
to Offset charges which affected tlie
othekeside of the income account, and.
as MIR. i little himself has stated in his
report" "in tue end the effect on the in
come account will be precisely the
same.p
Tie items | have mentioned more
than cover the alleged over-statement of
income for thesperlod of Mr. Little's eX-
animation by about $500,000.
Mr. little states that ON the SQth daH