The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-11-19
Questions Raised About the
Rock Island Report.
Claimed That 1t Is Not Suffl-
GENTLY Explicit.
COST OF EXPANSION.
New Roads Cause Expense Ac-
count to Increase.
No Explanation of the Com
pany's Financial Deal.

In reviewing the first annual report
of the Rock Island holding company
in these columns last week, says the
Chicago Post, comparisons were i'm
possible for the reason that no refer
ence was made to the Chicago. Rock
Island & Pacific railway. Since that
time the annual statement of the rail-
way company itself has been received.
Unfortunately, fifteen months opera
tons are included in the figures for
1903 in order to close the fiscal year on
June 80 Therefore. although the
twelve-month figures of previous years
are available, accurate comparison and
inference are out of the question.
The cost of the expansion policy fol-
lowed is clearly enough shown, how
ever. when rentals. interest and divi-
dends are examined. These charges for
the fifteen months were $12, 641,000. as
against Sc, 1O6 900 in the twelve months
before This is an increase of 81, 100000
for the past twelve months. With an
additional mileage of 1863, earning
$14, 1867, 600 more gross, there is SHRINK
age of 1888, 900 in the final surplus
Stock issued in exchange for prop
erty aggregates 4,855, 900, and funded
debt was enlarged by 100000 in
per cent. bonds to reimburse the treas
ury for expenditures made for Sddl-
500 900 4 per cent. bonds authorized
during the year to acquire the Choc-
taw line, $22095, 600 are outstanding.
In connection with the construction OF
the ST. Louis and Kansas City line,
81, SOC, 900 collateral trust notes were
also created. With no comment or ex-
plantations. the balance sheet of the
Chicago, Rock Island & Pacific railway
shows an increase in advances to sub
sidiary companies of $2S,671, 900. Loans
and bills receivable and unadjusted &C
counts are $797, 900 larger than in 1902,
and a decrease of $3.50, 900 is reported
in cash. On the other side of the books
with the same dearth of exclamation,
current and deferred liabilities increase
from SO, 032, 900 to $1OS91 900. A con-
tingent account of $5.l71, 1872 was Gre
ated-cause unknown
Although the surplus from the year S
earnings decreased 81, 0S3, 90, an in
crease of 81. 953, 900 is set down in the
profit and loss account. Neither the
Chicago, Rock Island & Pacific railway
report nor that of the Rock Island COM
pany bears the stamp of an independent
audit.
AS no reference is made in the rail-
way report to the request last summer
for authority to add $3.50 900, 900 to the
$3.50, 000 900 outstanding capitalization of
the system, the question is still open.
why did the Rock Island management
make it's extraordinary appeal to an en-
barrassed money market in July? If
the money was needed peremptorily, for
what was it needed, and what is in
volved in the withdrawal of the request
for it? Annual reports are supposed to
be published to give information of this
nature to shareholders.
Practically no outstanding bonds of
the entire system mature inside of the
next ten years. On the other hand, if
the issue proposed was intended for re-
funding purposes, as was the 800, O00, 900
loan proposed by the New York Cen
trail in 1897, why is no reference made
to it in this report? The Central man
agement knew what an annual report
was for Their REPORT of that year said:
Of the 500, 100000 authorized, $70.377,-
$50 is reserved for the purpose of re-
firing a like amount of obligations out
standing on June 80, 1897 composed of
six different classes of bonds varying in
nature, rates of interest and dates of
of11ritU