New-York tribune., 1903-04-17
ASKS d. S. r. TO EXPLAIN.
Phlbin Says No One Can Doubt
Manipulation for Some One.

a report which is substantially included in the
letter which he sent Wednesday 10 H H
Vreeland president of the company. ,sking for
explanations of discrepancies in the various re-
ports made by the company 20 the stockholders
and TO the State Railroad Commissioners
The report calls attention TO alleged discrepan-
cies amounting TO many millions OF dollars. but
perhaps its most startling feature is the direct
charge that the Metropolitan Street Railway
Company has never earned and does not now
earn the . per cent on its capital stock which
has been guaranteed by the Interurban com
pany and that. in order to supply the money 70
pay the dividend guaranteed to itself. the Metro
poIitan has borrowed S11OGoOoO. and handed II
over to the Interurban company TO enable the
latter to keep it's guarantee
Mr. PhHbin yesterday declined to tell the
name of the second client TO whom he had
given a copy OF the report As the testimony
Of William " Amory in the hearing Of his libel
charges against Mr. Vreeland was continued
last evening along the lines Of the report ana
as Mr. PhiIbin was present at the hearing and
was consulted frequently by James s Osborne.
who was conducting the testimony, Mr.. Arnory
may be that second client
Mr. Philbin's report is contained in forty
seven typewriter pages. II is based, not on
an examination Of the conpany's books. but on
the company's own reports running through sew
eraI years An examination OF the comPanys
hooks bv an expert accountant in the employ OF
the District Attorney has been in progress sew
eraI weeks Mr.. PhiIbin says early in his re-
port that in the four years 1898, 1883. 100 and
1901 the company in it's annual reports 70 the
Railroad Commissioners stated that the COM
| pany's cash expended in the four years for
| construction and equipment amounted to
| total Of $50 413 421 -; that the sum of cash
really so expended as proved by general BAL
ance sheets was S25.355.5T2 I6: that the differ
I ence between these two sums is S1OooI,S49 V1
/ The report saws t1at ''in other respects 1t has
| been found that the company has incorrectly
reported its disbursements of cash. particularly
| " regard to loans and Investments In each
1 of these items il a-nesLrs that cash dlsbuFse-
/ roenfs as reported in the company's cash state
r,an+s differ to the extent of millions Of dollars
,,5+b such cash disbursements proved BY
/ the co1npany-s annual balance sheets
| \ discrepancy Of S3OO000o is described 81
| follows:
The report Of 1901 contains an item resdinT ss
80 1901 ss245ss S " This iteTg i gaTTleP F 81 l@ ef E
m IN me l- tg4s Balance due from lessor companies
june 90I 8 % 9s g s m M By % nus co5Psne C Is Fs[ n
tirey avoided counting II ae1aa r,5 5g -, b
5000 90 Of the cash eNpeho-llIss 0'a4'li9i - N'
I been made leased lines
/ Several discrepancies are mentioned in con-
nection with the company's reports OF eNpendl-
lures in the change of motive power. and they
are recapitulated as follows;
F,frzt-That in the summer Of 1s9s this company
nag m Fiftvnnth-st between Tenth-ave and
M wiJa Idtai eRSe' i5aRe being Os miles q sin
gIa track road including turnogts and switches.
exDenses in excess of 500 90 for change or motive
P0wer on % I1Trond P0Fll9T I trolley which change
paid for by another company any [r @1 aD n,r+i5n ~
its route still operated by horsecars where no
and where such other changes as have been mads
+ have been charged 70 another company, com PAM. ,.-,7t
-r9 in he
ture in excess Of s2loooO for change OF motive,
Which as above stated. was paid for by another
FaPgrt6-That in 1892 the company once mors
charges for change OF motive power over tt te y.
above. amounting to more than S5S5.1o; ~ -, ,,o-,y.
pdTe4 Ef9t 5@ ths IS s. 4o1& ~hSR SRSi rate 5i
per mile Of single trseN T ~ T9S3' 3 % % mile would equsi
$4,000. an apparent excess OF a.5ss0lSO d.
ALLEGED EXCESS OF s6.OOoOOo.
Mr.. Phnbfn says that the company's reporE
for 1902 states an expenditure OF $S.44S.2JT -
for new construction on leased lines Hs
saws the number Of miles on which there was
new construction was between twelve and thir-
teen. and gives figures to show that the cost
should have been only 81, 1S6 az. This leaves
an alleged excessive cost OF S6122OIO 40
Referring 70 a circular OF the company issued
on February If, 1902. Mr.. Philbn says:
/ In the pIainest possible language the company
Doses and for two only. viz: To pay the unfundsd
and 10 extend the electrical system 70 upward OK
eighty miles still operated with horsscaTs -
Is W 55v "dS te tna n4fnded i bt Incurred IN %
purchase Of Third Avenue stockr As a natter es
fact it be concqsiveiy sh9Tsn 5y ne eo6Pa mi t,s
date could not have owed a single dollar of IN
funded debt incurred in the purchase OK Lniro
nue. stock Proof Of this will be herelnsiter
is the cost OF changing eighty miles OF morse rA~
road to electric railway 1-,s
IN he ne PffTtt Of March "a 1s62 has answered. this
question. (see Page %. Paragraph "A. WoEussr
He za1s! The estimated cost Of completing the
electrical equipment OF about eighty niles or II1es
7y ears IS cisiT1e that such change o{ motive roer
road, and eighty miles at such rate Wonid amount
70 IL accordingly appears that the Metrepoi'sn
company pretended on February r. 1872 60 require
sI,,.,s $1,000 res5ed IoT fSG bGt 81 - ss4 =
But after all it seems TIE lletropCi@Jsn @ nn1 49,
cash as the opening paragraph pretendS. AM tas
enormous profits arising therefrom as demonsustsd
Coming to Section % the CIRCULAR we md IL
sIt i also proposed in connection with the fore
going plan that the Metropolitan street Railway
c1re On authorized issue of sso00Gno of Dor cent
10l wear refundiug bonds. Of which HcoUf S'is1"si
issues <rwenty ty-seVer IN dHl or eNlstiIS -
cured by liens upon the various parts ot lne rietIe
politan system. excluding ire Ihrd AVe"1s
n IS fact that there vere twenty-seven ISSUES
~ existing bonds secured by liens IN the whole
r,stropotan system. that iS 20 say. on every eN-
isting street railway. whether owned leased eon-
rolled or operated (excludinE the Third Avenue
@ unTS bicb A., C-to6a~ 81 issued a new mortgage
Nay " a7n snogDtins 10 & o65 aoe. bur the total
issue ot such issues was exactly SislSoe". ana net
THE TINE TO SEE WASHINGTON
is in Spring Time The next Pennsylvania Railro.,d