New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-08-18
mR RAILROAD REFORM.
.rocxHoLDERs AROUSED TO THE NEcEs-
sITY FOR IT.


,v or THE TRIBUNE CHARACTERIZATION
,op NEW SAFEGUARDS TO BE KEPT Up
rssentaton in yesterdays Tribune OF the
Luz - number OF prominent financial and rail-
sN ren on the need of reform in the methods of
" management received warm commenda-
IA - Wall Street. 1t is a subject which has i'm
wv" ad It's Importance upon financial interests
P. snecial force since the publication Of the re-
VIZ ~ stephen Little. the expert accountant VINO
pn,ned the books Of the Atchison. Topeka and
"a Fe. These revelations were in sense
S shocking TO confidence than the process Of
vrecking OF the Northern Pacific and the
r~usdephia and Reading roads. Henry Willard.
=, controlled the finances of the Northern Pacific.
20, received the confidence that always
~, In financial and investing circles to the man
t.-,nt Of the Atchison Company. There was a
liant fire OF criticism upon Mr.. Willard while
!, and his associates were pursuing the policy
,rh landed the property in the hands of re-
.r,rs and this well the course of the
..rnany's securities during long period of grad
-, decline. a sufficient warning TO stock
,,,,ers or bondholders who did close their eyes
s,uly TO the signs of inevitable collapse
=, the case of the Reading also President Nc
,sd was TO large extent supported by some Of
n. directors in his manipulation Of the company's
acts and here. too. there were critics of the
n.nasement who held out danger signals that in
.s,ors could heed IL they wished
But the exposures of the methods Of Atchison
4, hiding unlawful rebates to shippers and swelling
,,s income account with fictitious and improper
items came like a thunderclap out OF clear sky.
The managers who now confess to ignorance Of
,,s doings of President Reinhart held high posi-
,,ons In the community and were trusted implicitly.
whatever It's faults of capitalization the Atchison
gas never regarded the victim of irregular
inside methods. Men might differ as to the value
nj he Of no
hut II was suppC sed that honest and straightfor-
ward nagement prevailed. Up TO the day Of the
announcement thousands OF investors here and in
Europe refused to believe the rumors that the
Company was on the verge of failure.
For these reasons the revelations Of crooked book
81 Atcnison have made a deep impression in Wall
Street They regarded as the severest blow
Z realized that measures must at once be adopted
70 prevent managerial duplicity. coupled with man.
sgeral innocence. in the future. Bankers say that
The subject is likely to be dropped soon. There
is no danger Of 1t passing out of mems minds
nne.days' wonder An impetus has been given by
The Tribune 10 he agitation. which will not be
checked until needed reforms are put into vogue.
It is deemed certain that at the next annual meet,
strong effort will be made TO establish some system
Of independent audit and examination II the own;
relax their vigilance these efforts can be crowned
with success. 49, TIL,
o, the subject yesterday said that the English stock
holders were often TO blame for the breakdown Of
he said lis continually clamoring for the payment
Of dividends. and he is willing TO have them de-
soldings in any American railroad are large II is
dffcult matter for the management TO resist this
Sssn toI pad sanst n ndgment Of the
home officers or directors When the company cor, coi,
cutlery abroad but In many cases the men who cry
the oudest really responsible for the insolvency
rav methods and they must come from rearoused
vigilance on the part Of securlty-hoiders