The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1909-08-22

The Florida railroad commissions
examination into the affairs or the L.
& N. railroad, as brought out in the
evidence Of the experts before the
special examiner last week, resulted
IN some startling revelations.
Six years ago the L. & n. attorneys
went into court and secured an order
enjoining the railroad commission
from enforcing the 3-cent passenger
rate over the L. e Ms lines IN Flor
ida which the commission sought to
put into effect. The L. & Ms plea
was that the Scent rate would ne
cessitate operation at a loss to the
road and the injunction was obtained
upon that ground.
Remarkable Figure Juggling.
But now come the commissions ex-
perts with testimony which charges
some remarkable figure juggling on
the part OF the railroad company in
its attempt TO make the books show
that the Pensacola and Atlantic di-
vision of the road is operated at a
loss.
The railroad witnesses testified that
for the year ending June Both, 1902,
the net earnings upon the Pensacola
and the Pensacola and Atlantic divIs-
ions amounted to S44 1861.
The railroad commissions experts
testified that with tho proper dis
tribution Of the earnings and cost OF
transacting the business, the net earn
ings accruing for the same period
upon these lines aggregated the sum
OF $216,825.30.
For the year ending June goth, 1903,
the railroad company showed a profit
Of 500, 352.s6 and the commissions
experts claim profit Of 1881 ,715.22.
For the year ending June Both, 1904.
the railroad showing was $268. 36S-SU
and the experts showing was $685.
08S.20.
How the l. & NJ. Did IL.
But the most interesting feature or
the whole case is the testimony or the
experts in showing how the L. & N.
did it." This testimony was to the
effect that the Pensacola and the z.
& A. divisions had been regularly
charged with interest on bonds that
had never been issued (bonds held In
the treasury of the company. In ad-
dition to this, these divisions were
also charged with their pro rata or
interest upon general L. & N. bonds
which were also held in the treasury
of the company and which did not
draw interest. This aggregate excess
amounted in itself for the fiscal years
ShAAS SHhC SVS " LILO AOAAO"AnS
sums:
1902 ,sIO9 .54S.7O
1903. ......... 11O.S45.26
1904 ...,,,, ,,., I22. OBS. az
Naturally when two short divisions
were charged with interest in these
amounts on bonds which they had
never had the use Of and which were
not drawing interest, it was not so
difficult TO make a showing that the
roads were mot paying"
Why It Loses"
AS II this figure juggling were not
bad enough, the commissions experts
then go on to show that the entire
cost of repairs to the big docks and
wharves at Pensacola, where all OF
the L. & Ms export and import traf-
fic is handled, was charged to the
Pensacola division pensacola to Flo
maton). Although these docks and
wharves are operated for the benefL
Of the entire L. & n. system, the cost
Of maintenance was, the experts tes-
titled, charged to this little 44-miIe
division. No wonder therefore the
Florida lines are a losing portion
Of the road.
The commissions experts disai-
lowed these charges as against the
operating expenses Of the division,
setting them up as an outside opera
ton for the benefit Of the entire sys-
tenn, showing a reduction In such cost
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