The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-27

IN
reported a. TIE cost Ct constructing Ger,
: ca; .1 ss's ests zen ss.a g q.
ITEM, slated in IesEct Of ;o he vent YEA.
S't e .nS t eaes 'a !. ...aed thai
DIS sia,s Of tx account, implies double
.sss hef s NC rS 81 soh 10 safn
not necessarily. nor often. completed when
the road s put into oT-ef alton. on the con-
snd snT eSsfse y for ID hat road IN tie report
Of given year means only ias s"st OF s1sa
hnoiher n.isisken assumption Of q similar
kind appears under the ABOVE oaptions
tsTetn STATED 20 o. expended during the
year reported upon. and ot~er wig Az" h~
nSsaa g, ,h .s ro eSaf iser sp - a.. entire
mileage so reported But u - not 80, Inc
charge made rep:e-~rt- the Get Of such
for at the time the report y made sub-e-
auent charges refer e s9t.ealsnt YORK *.
and a, soes n,,s adSeS Q, ,ss road
An illustration Of the manner in which the
author OF this msfns randufn has oontinna liy
Of your nni al reports. APPEARS in the criticism
that The enormous sums CARED by your
Se%P. ~ .sar nST on n ss' erns
and leased to he distributed reaching total
Of more than ~ ~ ~ 10 ls'll wor 70 PERM
Of account. and fer missppro priation OF nds
On the contrary. an qndistriblted acGou az
BE- hs Wy a, pn aC Salse a sr
or iaappro prlated funds Every such item
must react ~ fnal destination and be inlLy
able that the metropolitan company. during
the r.~riod OF ne sudden and wonderful ek-
ransom. should have had VEN large OPEN
existed for s1Ca Oh ascJ- at; dislLa n ,ss
any one who make. II from d.cu ssing tne
accounts Of the Metropolitan road. your
company was building for the account OF
many subsidiary COMPANIES. and we - .it
way 70 keep IT, oon-tra Tion accom- ~. Nv MN in
winch IL vas kept. namely. by holdlhe "
Seether until the work was completed
different properties TO which IL sppertained.
40. VII.
-g,e,.,,t, ebaro. Tor .rg,s6srirg and super-
f-Erdenos on he ''r'rJi PARK. Norm dnd
East Rirsr. Ro,irodd com PAM IL.
en- entry IN the oonpany's report OF 1909 Of
Ss77. 34045 expended for engineering and
supernttndenc" and. adding tnere ,S,, o In
charge for this service upon a mile and a hair
OF dou bic track road was ssiL7sl 80. II ap.
pear that the oompanys report IN respect
10 thi. charge did contain clerical errorj
and that $50 .Dpo Of the ,'2? Ao4s should
have been CHARGED 20 track and roadNsy ana
does not AFFECT the aggre gate charge 70 con-
struction and equipment. as both OF these
The item OF 81 COS % s,ltsd by the com pany
70 be incurred 10 come ton sith the organi
ration or cons,t t C, ,s. ot nr %ogT e.s
81 Che date Of The roads organ ization, and.
being an item Of legal erp@nse, u Is In az.
Eaiiway Accoiirt1nts Association Of America.
relating 10 classification. and this memo
randum In declaring 4 t. be an entT,y
ifnprop~r charge speaks IN VIOLATION OF the
authority II cites. go,
-gye.ssire oiain,- for the rdIus Of inrssf-
r,snls er.dii.d ir N, eompdHg's general balance
il Is here contended that the valuation
placed by the com pany upon us pledged and
actual valuation. and the CONCLUSION Is
reached that A. yon have issued certain
cent dividends, THE company is paying
out annually si.soo.co to receive In return
from these investments. -. It's own annual
report. prove u but sqo.co year. lhl-
+ wholly mistaken TIE 1nn TSsv rs I,nys
hat the Metropolitan company derive. that
much income 10 the shape Of interest and
i~ssee or owner Of these properties it derives
from them also all their net returns over and
above their regular dividend.. TO say hStnine
politan' system as whole: The ale assunp p
ton shown above renders this criticism
ing. these Investment should be held on your
books at cost irrespective OF thfir par or
ter would undertake 20 write up or down
the value Of lite investments to agree with
the fluctuations Of the market.
No. tx.
Lease BY n. Befropo6,on street Ra,lrny
Cow pasv 10 the Inter1bon street Re'i''dV
There seems to be no foundation for the
statement that the sum Of $4,000. 600 to he
paid 10 the Metropolitan company By the
1nterurban company. under the agreement
Of leaset was ! be nsrd LOT any 2,heu pnd-
polltan company circular OF FEB -. 1902.
The auditor Of The company oertifc, that
on Fen. !, 1892. the rOaiiug DEBT 81 the Metro
poiitnn company was $40, GIo.972 81. Of whlc /!
So ls2. 500 &c r.presente J tho cost Of the Third
Avenue stock. and that .nbstan,islly all Of
sion 81 the electrical system 20 Metropolitan
lines II seems to be conceded that opproxi-
The electrical system to the Metropolitan
lines which were operated by horse cars at
the time the Interurban lease TOOK effect,
was 10 10 expended In paying the debt in
CURED in or occssioned by the purchase Of
The cxpcnsn Of extending the electrical system
The sug 2estion that the lnterurban trans
action provided for the general PURPOSES Of
the Metropolitan company. IS, soi, o"p Of the
new efunding bonds simply because that
happens to he the difference between $50
0o6. 600 the amount Of these bond. reserved
amount OF the underlying bonds, is entirely
met by the provision OF tie mort gage (which
seems to have been overlooked in the en-
orandumJ TO the effect that these 81. SOC, 900
81 bonds cannot. prior 10 Jan. ., 1920 be used
for any other than refunding purpoFes II
IL simply the usual cOndit ion Of "a rounding
mortgage to provide for III. premiums upon
underlying bond bearing high rates OF in
terest
The creation ~ n separate mortgage Of
a.. oOo, 90 by the Central Crosstown Com
pany l. fully explained by your statement
that as the Metropolitan company owns only
about three-fourths Of the capital stock Of
the Central Crosstown Company and does
not control that company's line nv lease. IL
was clearly to the interest Of the Met ropolftan
company that the Central Crosstown Com
bonds the necessary funds TO provide for the
con version Of its system to electricity, thus
placing upon the minority stockholders their
proportionate share Of the cost OF such con-
vers IN.
Your treasurer informs us that the Inter-
urban com pany has paid 70 the Metropolitan
company under the agreement Of lease the
sum Of tis.sss.OO0. From this sum the noat-
ing debt existing at the time OF the lease has
penditnres subsequently incurred have been
more than provided for.
NO. X.
Alleged payment OF large sums ~ money BY
lessor eowpdntss
Under this bending 1t IL pointed out that
following the ster otyped forms adopted by
the Railroad Commission you have repre-
sented that certain amounts Of money were
paid 70 the Metropolitan company by certain
leasor com pan lee during certain years. and
no account OF such payments etng found In