New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-07
SYSTEM OF AUDITING.

MANAGEMENT OF IfiE N'N-
p.Sy.s FISANCEs-THE ENGLISH
SYSTEM OF AUDITING.
....,s,, REORGANIZATION Committee will meet
inc nd IN viex of the recent talk about the
nas'' ,,,n,eeuent of the road something OF IN
hnA ,,,erest may occur. This something may De
u'u'. OF the expert accountant. Stephen Little
ne ~ heon making examination of the DOORS
VIZ o,n,pany and. 1t is hoped. Will give 'horoush
a~s.,,on Of the Atchsons affairs. The way III
v'ap~ .hn manages Of the company are said 10
va ,,6uc,ei the business OF the roao, 50 'hat u
"s.,hle for Dur years TO missta;e the earn
IS P,,v Of tie company without the public
ms 49, Il has taused feeling of Indignation
XIV" .ns s.cur.;S-holders and others; and Il the
s"V =, irregularities proves TO be true. II is gen
Isf honed that they viii be shown up In way 50
era" ,a.va no doubt to where the gu!lt be'onSs
recently stated that Mr. Little nad diScoV-
=, examining the Western BOOKS OF the COM
sTsA .n., the earring capacity Of the road, in the
pi", prlor 10 hat in which the road Went mo
'0u' 's,s hands. hal been overstated 10 the extent
ono and ;h. 100000 Of that sum was al
Of " ~ rebates TO shippers III violation OF the
".a.s Commerce law. Since then MI L''''e
i"''i ..an a, work Upon The books OF me coihpah!
hA' ,r, no int.mason has been given OF the result
H' .xa,nination The unofficial statement 'ha'
" V. mere discrepancies In the BOOKS mas DSei g"
', '..s for the asst monh and the Management; OF
~oon,ny has neither denied nor atnrmed II.
RrMORs IN THE STREET.
has been more r less talk in Wa" Street
sing the affairs OF ne Atchison company ana
resNU."e ons yyDi make iirect statements accusing
w. managers Of the rad OF couh'eha"c'iS me
We "ss nv which /, VS. possible TO deceive the
nv about the compan's earning capacity stu.
pun" strong sentiment Of disapproval In all
"'.. =. .ba way the huiress Of the Atchison has
e"V". src..5 and Their Is a desire on the part
LAZY ore that 4 rigid Examination or everything
" so,,sctjon with The business of the road be made
400 Mr. Iltte's repot may show some aston
''.'n, methods watch the officers Of the company
- annlovej In the hnRCia. management o; the
,,.d and the meeting Is 9i 10 develop some inter-
..,ns noints about modernrai.way affairs
W. arrival in this coutr of Thomas Barring
~. firm Of Barring MagUn & Co. OF London. has
w., considerable talk financial centres, as
90. house represents a lrge amount of English
,'.oi invested in AtchisO. Thomas Barring Will
..na the meeting He aid yesterday in answer
70 inquiries regarding me AtchiSon DOCKS anu tne
ssnss have only heard)f them and have come
nn r 20 find out for myself There is a great deal
WserrnSlish capital invesiecin the company ana
o. 40 satisfy Inysef TO the real condition
~ things SO far as i On see everything Is AT
PIess.. IL comnlste and hasbeen submitted. 1t will
b Nv in order TO take dehnie stand"
.c =; " Of The Atchson arrived in NeW-York yes
tsrday He will attend tn meeting to-day lie
sofrseed Yesterday 10 discus the charges OF mis-
auaoar,ent but one OF hi friends said that the
ar,icie published in a Sunds paper was patch
work OF Measurements. andthat II the expert &c,
countant made any charges against MT Reinhart
tn latter wouli be ready with an explanation
The Stockholders PrGtecde Committee OF me
Aichison Company will, II said. make an enort
70 have Mr. Reinhart remoed as one of the re-
ceivers OF the road The colmit,ee issued long long
Socnment there is little dout that the committee
intends to do everything in power to have the
s,ockhoiders represented in the protective COM
mttee
AUDITORS FOR Operations.
There are constantly in tn country rumors Of
suspicious bookkeeping and financial statements
OF stock companies similar those now being
circulated about the Atchisor Company; and the
great frequency with which such rumors creep
out. taken into consideration With the. fact that
the stories are often true itanced In the case
Of the Reading Railroad. sugge,s that some steps
e taken by stockholders TO pro'ct their interests.
lars stockholders and bondhders have been
EO;ected from any misstatenefs OF the affairs
Z more generally adopted in It's country The
system consists in the supervisiolof the accounts
the security -holders In some cas- these auditors
are created by law. as for banking nd railway com.
the officers and directors of u company and
makes his report 10 the shareholhs by whom he
employed 10 prevent ms rang unoeI thc III
auence Of and becoming subservn mt TO the man
agement his term is not longer IAN year The
duties OF such an auditor are to scertain that the
funds OF the company have p)perly been &C
counted for and the money has cen expended in
The way stated in the accounts, and that the ac-
counts put forward by the directors for the
Shareholders approval acCuate In every re-
spect The English law reqrirtsnO dividend snail
BE- declared by company untlthe auditor certi-
fss that the half yearly accotrs proposed to be
lssued contain fun and tru statement OF the
financial condition Of the comIny
The only company in this ,,untry, so far as
known. that has adopted this iethod is the New
York Ontario and Western Rlroad. There is a
srge amount Of English capill in that corpora
ton
II some such method shod be adopted here
there might be income.o security-holders
and less recklessness among details.