The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-08-10
Total.
.S7.2S5.62O

The st. Louis and San Francisco reve-
nue account has also been overatated
$205, ,S79 for rebates not deducted.
President Reinhart, in his reply. de-
clares the earnings of the Atchison sys-
tam for tho period named amount "a
about SIS, ,000, 900, and then goes on to
point out the errors into which he clafme
Little has fallen. He says:
II find 81. 100000 of earnings of the
Atchison system deducted from its in.
come account under the agreement with
the st. Louis and San Francisco in 1887.
rs shown in the annual reports, and
property credited to the Sc. Louis and
San Francisco company is owned BY the
Atchison, Topeka and Santa Fe Railway
company. In other words, Mr.. Little
ignores 81, l00,0 900 of actual earnings Of
the Atchison, and gives them no place
in his statement of the earnings OF the
system. | also find that Mr. Little re-
fuses to include balance of $457, 1888
United States currency, subsidy due
from the Mexican government TO the
Sonora railway, one of the Atchison
auxiliary companies, which is an undis-
puted claim recognized by the Mexican
government.
81 also find that an item OF $450, 1000,
covering earnings on freight on through
billing for the last week in each month,
has been ignored by Mr.. Little. not.
withdrawing the fact that such item
was fully explained to him. | further
find that Mr.. Little has either overlooked
or refused to recognize $2,332, 900 OF in
terest earned from January l, 1890, to
December %, 1898, on advances made
by the Atchison and San Francisco com.
psnies 60 the Atlantic and Pacific COM
pany, which interest 80 earned is an
asset of these two companies, and which,
in the adjustment OF the accounts OF the
three companies named, must be treated
as an asset of the Atchison and San
Francisco companies, belonging to their
income account.
"Still further do find that Mr.. Little
has not included about $1,500.000 OF
profit earned by the company on ite in
vsstment in terminal properties. The
items of 81, ,6l2, ITO and $l52, 951, making
an aggregate of $l.765,06l, which Mr..
Little also refers to, were proper debts
to the franchise and the property &C.
counts, for the reason that they repre-
sent expenditures made out of the reve-
nues of the rsorganized company subse-
quent to October l, 1889, but which
applied to the operation OF the property
prior to the date of reorganization. and
should have been cared for under the AZ
mortgages represented under the old
company. This asset was used to Offset
charges which affected the other side OF
the income account, and as Mr.. Little
himself has stated in his report, 'in the
end the effect on the income account will
be precisely the same
1.-The items l have mentioned more
than cover the alleged overatstement OF
income for the period of Mr.. Little's ex-
animation by about $500,0O0. MIR. Lit
tie states that on the 30th day OF June,
1898. the company did not have on hand
the amount of cash shown by the books.
| desire to state, most en- phatically, tn 1t
on the date referred to the company &C.
uuaily had on hand in cash and cash
Items the amount stated in its report on
that date"
The reorganization committee, after
the reading of President Reinhart's re-
port, adopted a resolution, referring the
Little and Reinhart statements 10
committee composed OF r. s. Hayes,
chairman OF the general reorganization
Mr.. Fleming OF the London
committee, and Mr.. Luden, represent
ng Hope & Co. of Amsterdam. with in-
'tructions to report to the committee
with the further sction subsequently
AIKEN in the premises.
Two members OF the reorganization
who desired to withhold
heir names from publication, stated to
! reporter of the Associated Press that
he general opinion was that President
Seinhart had not explained satisfacto.
lily the charges made by Little