The Birmingham age-herald., 1910-09-29
ANNUAL REPORT OF
 ILLINOIS CENTRAL
Harahan Explains the Car Re.
 pair Frauds
EARNINGS FOR THE YEAR
Showed Approximate Increase of e5,s 100000 in Spite of Serious Coal Strikes in the Railroads
 Territory

The annual report of President J. II Harahan of the Illinois Central railroad, which has been under compilation since the ending of the fiscal year. June 91 was made public yesterday in Birminss ham by E. F. stovall. general agent fot the executive department. with head4 quarters in this city.
 The report says that the gross bust. ness of the company for the year has been the best in its history. President Harahan takes occasion in the report to point out that the net earnings show an increase over 1909 of ap- proximately s5,oo1ooo and this in the face of coal strike in three states from which the company secures it's greatest coal haulage. Also the company was de- frauded of between 3, 100000 and s1, 1,5oo0ooo by car repair bills which were padded by trusted employees" as President Harahau desgnates them.
 A summary of the report reads as fol- lows:
 Gross Operating Income
 During the year the gross operating Income was $e2. 4so,0e1.5s. an increase of $5.2S4, ,54ss4. The expenses and taxes were s4s, s42 14o.3s, an increase of s5.sso. .s57. .ss, making the operating income s12, 7s7, s2l IA, decrease of $67s, ,30S. s2. and the net cor porate income s7.S3s,1ss.1s, a decrease of s900, 93s14 Of the net operate income s7, 66O.72o was used in the payment of dividends aggregating per cent on out- standing capital stock. and s1s2 47S.1S waa carried to the credit of profit and loss.
 ''The gross business shows a satisfao4
 tory increase in all departments, but ths
 operating expenses more than kept pace with the increase In revenue. "The report indicates that there was a considerably larger amount expended on maintenance of way and structures | than for several years previous and the maintenance of equipment expenses wera also higher than for any previous year. From the stockholders standpoint ond of the most interesting statements con. gross operating income increased s25 pes cent the transportation expenses in- creased 6 per cent only.
 Reference is made to the continuation of the work at New Orleans and to the expenditure for additions and betterments Fof s1,556, ,633 IS, which amount was charged to capital account"
 Takes Up Car Repair Frauds
 In speaking of the car repair fundss which have created intense interest all over the country the report says:
 Tn repairs to frieght cars the increase was s1.6o5. 471.16 or 27.7o per cent The increase in this item was due to the xe- cessive cost of repairs made to your company's cars at outside shops during the year. and in addition, including this years expense bills for repairs made during the current year, attracted atten> ton and a thorough investigation was in- sttuted In the early part of the current year.
 .The disclosures resulting from the in- vestigations have shown that through the collision of a number of your conn., pany's most trusted officials and oer- tain car repair companies. your com- pany has been defrauded of an amount estimated at from $100o.000 to $1.50o.000. Settlement of civil suits against two of the car repair companies involved have been made and the amount recovered credited to the account freight train car repairs, during the current year.
 "The board of directors are pursuing the matter to conclusion and will visor- ously prosecute criminally all persons engaged in the conspiracy"