The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1896-12-05
POOR BOOK excepting
p,rtly the Cause OF the Baltimore
4 Ohio's Troubles.
THE REPORT or EXPERT LITTLE,


BALTIMORE. Dee. 1.-The report of
s,ephen Little. the expert accountant to
he Baltimore * Ohio REORGANIZATION
c,mmlttec. was made public to-day. The
s,.oun,ant finds. among other things, M
oyer statement OF the net Income
amounting to s?.T?l. O6T from June 90.
1901. to June 80. 1895. This amount Is d.
yldsd aS follows: For 1892, S9aj,ii3; for
lSq3. !ii3.S0l; Tor 1894, ioi.OtS: FOR 1928,
!Gi, $50. lie also finds that OF the G,-
5000 paid In DIVIDENDS during the perl
I'd mentioned, only Sl.ii6 was earned.
The items withheld from operating cN'
,.nses and the methods or swelling the
r,slpts each year nrc given III detail.
Nv writing up the values OF stocks owned
ard other such practices, the net income
was swelled by amounts that should
have gone u profit and loss. Two I'M
provlscd profit and loss accounts were
orsncd. one designated. general adjust
rleGt aINcount, and the othe. "secur!-
geS adjustment: account"
Mr.. Little says there Is n mischarSc OF
worn out equipment TO profit and loss
instead o. the income, amounting to ST.
$3.50.
Charges to Income OF ,G,c6i,7il were
improperly capitalized under the title os
construction, main stem" etc
improvements and hettGrmeRts OF
fused and dependent roads amounting
20 SJi5,i53 were Improperly charged 20
eIptal account,
The total OF these improper entries Is
!!i.oi.6jS for the seven years and Two
months ending November 20, 1885 Dur
Ing the period under scrutiny, there were
declared s?,95s.S@O In stock and $685., OSG
n cash dividends on the common stock
C5Hcu?ren: with the stock dividend Of >
ger cent In November, 1891. was the sale
20 a syndicate Of $5O96.OOO additional
r7mSnH stock. and In February. 1892.
S-l6l.StO more common stock was issued
Ia exchange for l?0.lC3 shares or Pitts
bug x Western common stock at SIS a
sa7Et.
III. Little says tha; the liabilities OF
tie company on November 70. 1895. were
lniRrs.2:ed by S5,iSl .s3i. and that the
rll.UE lsbt,waS sl6.?l@. 40. The net in
crsIss N liabilities FOR the period under
'e:isw has been $22.lSV072,
Nr. Liiil.'s Comments.
Mr. Ltit!e's report shows that FOR an
a.ccr;aInmert Of the causes that
trough, about the financial condition
q the company on November 30. 1895,
ne went back to September 30, 1855.
when after an expert examination. made
under the auspices oc its board OF IL
'ec;crs, the company was considered
.ovsnt.
Mr, Little says. In regard to the
aScharSo OF worn out equipment 10
Ps1i; aud loss instead Of income:
There Is no :ault 70 he found with
cut On the contrary every Commenda-
Ton for-the wisdom OF writing off the
Equipment. as !; disappeared from the
!sts Having, however, cleaned up, so
20 speak In the fiscal year 1883. by
ealFSinG 100000 OF this equipment 70
rroit and loss. there was no pr0pr!ety
"a continuing TO make the charge TO
mat account. IL should, In my Judg-
:HeH,, have beer charged to income and
toT the purpose OF ascertariIg the true
.ac9me or each succeeding year since
!sSs. have So deait with IT,
IL commenting on the amour: stated
to BE- wTongfully credited TO income
under the capitalization OF charges to
'7rJ!ne under the title OF construction
main stem. etc. etc" the expert says:
Cal! these Improvements by Wh3iev-
- name We may. extraordinary or 9TH
'TH Sc, their character Is such that !
ca" see no prOprlcty In capital!zing
item"
.coac=rnins The payment OF uuearncd
LIttieHds the report says:
A:icr pointing out for each year the
difference between the declared net IN
-onln u the road and the income as 1t
Laau!l have been according TO Mr..
LNt,e's figures. he concludes his treat
meet Ot This branch OF the subject by
Indicating. that, is no unearnci dIvi-
AeRds had been paid during the period
3'fr. consideration. the road would
nave remained solvent. Mr.. LIt:le's
""r!S are as follows:
RADICAL perhaps, al my treatment OF
"" income account may be considered.
~" sacts Will not be disputed. The con-
Tract between the fictitious and the real
he' earnings capacity OF this great pro-
t-Fty IL, By Ii. all the more strongly
drought out. Taking the year 1895 as an
muck 70 the situation, there was. after
r'IGlng for all charges and the fun
''!aenGs Of s3oO.00O on the first and
.t.nul preferred stocks. Il deficit OF
'@hpia ii. Strike these dividends out
'ii You have Il surplus Of g. 9jj 80. 80
,a.S II adequate capita! can be obtained
II.,H "H!ch % flini It's lioating debt and
' ~. "'sH facilities Tor the enlargement OF
'HSIHfsS and the economical hand
''.s % me same. there IL nothing dis
,"'"B III inc prospect OF inc hDiiity
more m III u, d,rcc, ohi,on.Tans r ",'"
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