New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-01

and other assets on hand. was how much? A
Q.~Now, its total liabilities were an equal
amount, We're they not, on me other side OF the
Q.-And included in that was bonds redeemed
and cancelled. S2g7S.sS wasn't there? -A-Nes,
Q-And profit and loss account cf ss,Oo0OOO and a
Q.-Now. on June So 1905. lie last report made
~ me management OF the properly under MI hiar-
shown from their repeort? A.-Sl33.S72 3eS.
Of the company BY 100000 Please explain that
that we VIII have that clear. A.-Well the item
Of FUNDED debt shown that balance sheet
S9069 lle-thdt includes all OF the bonds that have
been issued and outstanding or were outstand-
them-the equitable title SsOooO still belongs
them had been deposited as collateral TO a series of
s5.OOOOOO are also included in the s7sOe0o06 The
other SlGow0 WAS in the treasury of the company
iiabtv as 81 os1 600 ~ oIi5S Ont - ~ It
the real surplus of the thing is 100000
.-Q:-NoW. then, that Si,00o0oo is pledged for
Q.-so thai if the bonds would be sold for the
amount OF The collateral trust notes its actual liza
buiues outstanding would not be seven less but
nVe less, wouldn't il? A.-That is right Of course
there had baen spent upon The property So .S27.-
zle o. and was that all spent of the bonds and
on the stand I conferred win An Felton, abo,li IL
last night The statement You asked me TO make
was the statement showing how much money had
on the railroad company arising from the proceeds
% ms increase in capitalization, and / gave you
S0smooNSoooyg. you stated in your statement about
would like to make one little addition i heard
Inn testify, and We talked il last night Mr.
statement Of all money which had been spent in
~ tIucuon ana improvements. commencing with
bonds were sold. and none of this increased capt.
cspitaEatio4 until October 40 isssss sSogid
say LhereIoTe The amount OF money which was
October 10 cannot possibly have been due TO the
deduct that, in addition 10 The amounts Mr.. FELTON,
ment here about SIS 100000 spent out Of this in
Yes. Sir.
Sso,oo0o9O OF FIRST MORTGAGE BONDS.
.,9-Aow; Mr. billiard; shortly after the acquisi-
Sa, OF ms STOCK ~ this sndieais after this syn
2, 1892 II appears in evidence that The board
holders ana propose 20 to issue Of s t @SF
gage bonds. Do the records show what became of
them? A,-on June q 1899. The directors author
bonds pro rata 10 all the sockholders at the rate
q 500 per $1,000 bond on October 10 1922 p per
that call So 100 OF the bonds delivered.
ing scrip? A.-Scrip, which were afterwaTd con-
Eerled INC Iui bonds. on May Z, 1900 S2lsyl ioi
cent Of the subscription. making all told so per
rescnded These small fractions left about Sl2 46 Of
TIE So eeg9 which had not been delivered and paid
Kuhn, Loeb & CO at So. That completes the entire
Q-NoW, what became Of the proceeds? A.-The
iroeeeds OF the S'2oeoOo bonds amounted to 500,
with the United States Trust Company to refund
dividend OF 80 per cent paid.
Mr.. Kellogg.Well now. who got that dividend
principally The syndicate. the four men, Mr.
Hartman, Mr. Schifi. Mr.. Gould and Mr.. stillman.
81 the Alton ToadY Is thar correct? A3Tbe rec
Ords Of the company show that no direct payment
directing that the dividend on their shares be paid
e
therefore one check appears 10 have been made 10
cover the dividend on all the stock under the syn
dictate and also on that owned by the directors
The statement shows Just what i was dheGe
them. There must have been two or three thou
AR Keilogg--What was the holding Of record on
Wnice SnSt a., giVlqsnq 4 wa" ana ti T 81
preferred stock dividend was paid $3.50 shares
on ssa shares each to James stiliman and E. IL
Hartmann; the common stock dividend was paid
Mortimer schn, George J. Gould and f. H. Har-
THE BOOKS "DoCToRED"
o-NoN. shortly after this syndicate acquired this
stock state What done about that So 444 IL 90
msn Ta Sf have examined the records and
find that the original Of that entry was only re
Tnunicaton flom the president Of the railroad com
careful examination had been made by him of the
system OF the bookkeeping and so forth and stat
priated from income and operating expenses and
amount sB9a 70 ana Teeommendhg sf fha AMOUNT ' be
capitalized ana added to the cost of the road Fol-
lowing that report was resolution by the board
that the report of the president TO the actual
Of the property Of the company be approved
and ordered TO be filed among the records of the
company, and that the auditor of the company be
= instructed 70 make such proper entries may be
II necessary to conform the books of account of this
81 company 10 the statements contained in such re-
port, and that the balance sheet Of the company
shan truly show the cost and condition Of the COM
pany-
o.Where did the slOS9s SIS Is which is credited
having been taken from the report of the presi-
dent, Mr.. Blackstone, in December 1885, ten years
befOre-Where does that come from? A-That is
evidently taken from a statement made by Mr..
Blackstone in his report the stockholders for the
year ending December 81 1855
Q.-Now, then, is that estimate of the ex-
cess value Of the property its capitalization
by Mr.. Blackstone do the hooks Of the Alton
road actually show that amount of money paid
out? Al have not examined INTO that question 1t
all They did not seem TO have examined into
that They started with thts rs "a basis
Q.-Now. that states that. taking into account
the loss sustained by the original corporation which
constructed that part Of your lines between Joliet
and Alton and operated il until il passed from its