New-York tribune., 1907-12-05
CLEAN SLATE FOR B. R. 7.
EUcn Nr. IUins Has Something
Good to SAY about ITS Books.

The final dag OF the investigation into the gen
ersI financial condition OF the Brooklyn RAPID
Transit Company by the Public Service Con1Iais-
sion permitted that company 20 come OF win
flying colors. Colonel Timothy 8 Williams. vice
president presented tabulated statements show
ing that between So 90 and 100000 OF wafer
had been squeezed out of the capitalization OF the
constituent companies they were acquired BY
the BROOKLYN Rapid Transit Company John F.
Sparrow the accountant hired By Mr. WINS. and
Mr. WINS himself Joined in testifying that the
books kept correctly. with no desire or IN
tent TO hide obscure the true nature OF uaLS-
actions and not one voucher had been missed
Prior to reorganization the constituent con2a-
MES had capitalization Of sleS55s.9'' approNi-
nately. Colonel Williams testified The net CAPT
talization Of those companies outstanding To-Day
amounts 10 Ss 4l2O0N a reduction Of about S1lt-
ooo Interest charges show reducuon IroH'
s. $4,000 10 s1Sos 80. This did not allow sald 100
mel Williams. for about S4If0er" casn spent l'i'
FrooxIvu RAND Transit earnings Tor betterIIieh's'
NJ Twins and Colonel Williams had long aTS0-
uent about the proper disposition in the statement
OF the SSoOaGC1 capital Of the cid Lons lS-1l-'
Traction Company. which Mr. Wins said was .
draau,r'-vvortTIess. Colonel Williams had not pI~
,h4s q, +ba statement He declared that II tbs
were left out and the present outstanding Capi'al
iza+ion o. the Brooklyn Rapid Transit Company
left out there would be shown 2 net reduction n
capitalization OF s1oOooooo or S13od'eoe FinaE MI
WINS summed up the statement IN this way
.Ty the issue OF S3s S51Jo OF Its own snaIsS '-7
ProokIvn Rand Transit Company acquired shaEsS
% tho face value OF S7S20 200 So that II you were
N assume the stocks required we're meFged II OF
4isappeared through this acquisition there "ouid
tbe7 be left outstanding and in the hands ot us
public $50 S347oo face value Of shares less 'd' '
was before the reorganization
Colonel Williams Opned that tness 'allS' -
shone out in a particularly favorable ilsh-
when compared with certain other transssrtlohS anu
then proceeded compare them with the i1Ieo-
tior Of fresh water into the capital CT the tEac'
systems on this side OF the river with every step
In The process o. consolidation He declared thA'
the saving in Brooklyn had amounted 20 = -
crease in fixed charges representing capital ot
about sff u00CGo. In addition, the Brooklyn ttaPid
Transit had contributed from earnings S1,'e1tF"
on which no interest was charged. so that tHs
public got the benefit OF approximately S-}'''e9
capital with no interest charges
Including the Brooklyn Rapid Transit issues of
securities the capitalization Of the system now 3
more than sl23G000t1. Colonel Williams contended,
though, that there was actual water IN this
one OF his tables showed that cash 70 the extent
OF S4SOo0od0 was behind Brooklyn Rapid Transit
stock He took Up IN detail with Mr.. WINS 4 care
fully worked ont table TO show the cash put into
the Brooklyn Rapid Transit and its various con-
stituent companies In his table. he said. net
included any good viii in the franchises, and the
appreciation in market value stocks was ignored
He declared that Brooklyn Union elevated stock
carried on the cOmpany's books for SS0Go 01O was
worth in the market under ordinary conditions
about Sz0.GG0O3O-
In all probability no further investigation VI
be conducted into the history Of the various corn
panies which make up the Brooklyn Rapid Transit.
Mr.. Ivins said yesterday that this would depend
entirely on the Judgment OF the commission To-
morrow he will take up the physical aspect OF the
service of the Metropolitan Street Railway Com
pany and the Brooklyn Rapid Transit.