New-York tribune., 1907-11-22

greater than the capitalization. The present
outstanding capitalization OF the Brooklyn
Union Elevated system consisted. said Colonel
Williams, of S5OO0Oto preferred stock. S13
C00OOO common and S1GO00000 bonds.
the outstanding old securities at the time Of
the reorganization were S262J0oo0 stocks and
bends Of thc Brooklyn EIevated, ard stocks and
bonds Of the Seaside. S2.3Gj.000. Against these
a:.I the new properties were issued new bonds
amounting to Sl1.ss9,3 500 preferred stock to So
go. iG0 aad common 10 S1292GIG0
This left subject to issuance about S5,OO0.OoO
o bonds and stock Of both classes of the
amounts authorized by the reorganization COM
mittee. Some $S.O00O0O bonds Of the Kings
County Elevated We're taken over on this and
paid for by S31lOGOO bonds. $73.30o common
stock and s. .169 so preferred
II was here tha; Mr.. Wins got trace of the
S1.I00OO0 securities which went 10 the reorgan-
ization committee He found a difference ap-
p-oXimating S2OdO0o0 in the various figures
given by Colonel Williams and wanted an ex-
piaTation Colonel Williams said that 81. 100000
bonds had been voted to the committee to make
changes necessary in the elevated structure TO
permit through operation over Brooklyn Bridge.
With the bonds went 100000 preferred stock as
a premium or commission. Stock and bonds
were issued to the committee for about $4,000
in cash.
The profit realized by tho committee went on
Colonel Williams under AIr. Ivins's examination,
was not the $7O00O0 predicated on the face
value of the securities. because the cost of the
committees work must he deducted and. any
way. when the Brooklyn Rapid Transit took
over this preferred stock with a lot of others
it acquired S1446S, 700 OF preferred and common
for SS.97o0o0 Of its own stock. This 81. 100000
OF securities was Jumped with all the rest of
10
cost Of road and equipment"
Taking up the expenses of maintenance in re-
ply 10 questions Colonel Williams said that the
full equipment used to its maximum ca
pacity in summer. Mr.. WINS brought oct an
item for four months which indicated the pay
ment Of S9S0.199 a year which was deducted
from the net income OF the Union Railway sys-
tenn. No bonds Of the company. the witness
said. could be issued for operating expenses.
Asked if it were not possible to capitalize
penditures. he answered that in bookkeeping it
was quite possible to do anything if people had
wicked intent and the proper opportunity. His
company and its officials had no improper in
tent. and he was certain that no expenditures
would be capitalized.
Mr.. WINS labored hard to bring out the earn
ing power Of each. of the seven companies Of the
Brooklyn Rapid Transit system relative 10 it's
ca pitalization His accountant, Mr.. Sparrow.
had prepared a kind of tentative balance sheet
whose items the counsel checked over with
Colonel Williams. II showed gross earnings
from operation for the months Of March, April,
May and June Of this year amounting to 81
$40 2S2 S4 This the railroad official said he was
advised was accurate.
Mr.. WINS went on from this list of figures to
show total operating expenses exclusive Of
structure. maintenance and equipment. $91s,543;
net earnings. 81. .741. with income from other
sources Of S62. 800 Sc, making an income from
all sources for the four months Of Sl492031 "a.
or an estimated income for the year OF S4.4F6-
H. Colonel williams said these figures differed
somewhat from the ones he had checked over
with the accountant so he could not answer as
n their accuracy Mr.. Wins will continue the
investigation to-day. taking up the six other
operating companies.