The Montgomery advertiser., 1903-04-17
 FINDINGS OF
 MIR. PHILBIN Millions Ot Dollars Spent
 by Metropolitan. FALSE RETURNS ARE MADE Interurban Lease Raised More Money Than Required. Balance sheets of cenpany and Statements Made to the New York Railroad Commission Are Not in Accord.
FALSE RETURNS ARE MADE


New York. April le-The Evening Post today prints the following:
 The complete findings of Eugene A. Philbin. former district attorney of New York County as counsel for certain stock holders of the Metropolitan Street Rail- way were made public today. This para graph occurs;
 Tt Is clear, therefore, when the com pany's own statements are analysed that the Interurban lease was calculated to provide and has actually provided many millions of dollars in excess of the honest requirements of the Metropolitan Com pany."
 The report also fnds that in 1898. 1899. 1900 and 1901 the Metropolitan company stated in its annual report to the State Railroad Commission that 1t had expend- ed for construction and equipment a sum in cash exceeding by millions of dol lars the actual sum an cash which Is proved by the company's general balance sheets to have been expended
 Asked for 13,0OO, 900.
 MT Philbir avs the company asked for s23000, 900 to pay the unfunded iebt in- cured in the purchase of stock of the Third Avenue Company and to defray the expense of extending elsctrical system to upwards of eighty miles still operated with horse cars. and upon an analysis the report said only s1A, 781 .e94 was required for these two purposes. The report further says the company proposed to create q RA for01 Nf nsrAk Akx>s-. ixed issue of $b ,000,0 600 of { per cent 100- years refunding bonds. of which about $6a. 0,000 was to be reserved to retire and refund the twenty-seven issues of exist. ing bends secured by liens upon the va. rious parts of the Metropolitan system except the Third Avenue lines. The to. tai issue of guch issues, Mir. Philbin says sWAs exactly $4S. IsS.O .O00 and not about s5a.. o0o.0Oo.
 The difference, the report says. between tts, ,iss.o0o and s65.OOe.0oo is S16.S04.0o0.
 The report continues that the increase in bonded debt, instead of being about s1l. 000, 900 as appears to have been pre-. tended, turns out to be exactly $1s,S 900
 In 1900 the company. says MT. Philbin made application for an increase of cap ital stock from $45. 900 to s52, 900. 900. The sum of 20 was received from tho sale of this additional stock. In 1901. g., 70O.000 was expended on new construction and loans amounting to T.144,906 were raid. The report of the company for 1900 the year the purchase of the Third Ave nue Railroad Company was consummat ed. shows that temporary loans to the amount of $7.s50.O00 were contracted and cash was disbursed for stocks and bonds of other companies in the sum of $7,402.. 2s4.
 Tt Is apparent. therefore" says tht report when all these facts are copsid. cred that the S7.00o,0O0 of new stock pro vided a sufficient sum of cash to pay for new construction and to pay in full the debt incurred in 1900 for the purchase mol only of Third Avenue stock, but of other street railway stocks"
 This follows the statement that the company in 1902 asked for s23,O0o. 900, part of which was to be used in paying the unfunded debt incurred in the purchase of the Third Avenue line.
 "As . matter of fact" MT. Phiibin says. fit can be conclusively shown by the company's sworn statement that the owed a single dollar of unfunded debt in- cured in the purchase of Third Avenue stock"
 Dealing with the Interurban's lease. tho report says:
 The Interurban Lease.
 While the Metropolitan Company hai been continuously since the date of the lease and is at present a creditor or tho Interurban Company, yet. in July last the Metropolitan Company issued $11 ,0O0.. 900 of its own bonds and turned the pro ceeds thereof over to the Interurbar Company.
 These s11.oo0.O0o were provided for thu purpose of enabling the Interurban Com pany to carry out its contract to pay per cent guara nteed dividends on thu &2, 900 of Metropolitan stock. for thu Interurban Company has no earning ca pacity of its own and It's only earnings are represented by the earnings of the Metropolitan Company itself. which nev- CT has been and is not equal at present to per cent on its capital stock
 On the subject of excessive valuation of investments Mir. Philbin's report says
 '"The total value of investments set oui in the general balance sheet of June 20 1901. was $21 .6Sa, 428.26. and a yea latei s22. .565, 471.76. These values are repr ssent- cd by more than $12O00. 900 of Metropoli- tan stock Issued in 1897 for the acquire ment of a part of the stock and bonds held at present as investments, and by  the cash proceeds of other shares of stock devoted to the purchase of such invest ments.
 ''The tot,l If such stock issued is about 5000 900 face value or which the com. pany is paying per cent dividends. ol at the rate of s1. 100000 year. But tho company's income from these invest. ments. as it's own annual reports prove is hut about $300000 a year. In other words. the company Is paying out an. nually $l.4Oo,0OO to receive in return $500. 900, and if this is the case some one i! necessarily profiting to an equal extent
 HSr. Phllbin contends that entries 1T the company's report of s5oO.O00 in 1900 ant $23O5, 900 in 1901. paid by lesser compa nies" are pretended. In conclusion h. says calculations and estimates ''clearl, indicate that the Metropolltan Compan, claimed for 1902 an expenditure of casl for change of motive power, exceeding by more than $e.OOo,oOo the true cost there of"