The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-07

WASHINGTON, March e.--The Interstate
Commerce Commission handed down a re-
port to-day containing serious charges
against the management OF the Chicago
Milwaukee anc s.. Paul Railroad.
II is alleged that reports by this great
railroad to the commission regarding the
roads income and other revenue features
were falsiied.
The report refers to the irregularities
as Serious" as meriting the strongest
condemnation and as unlawful prac-
tees"
In the document the commission an
nounces that II has reached new mile
stone in the matter OF Government regu-
lation. II serves notice that the so-called
formative period in which the commission
has been permitting the railroads OF the
country To adjust themselves 10 the
methods OF accounting imposed by the
commission Is nov over.
Hereafter the commission will expee,
the exact observance Of these accounting
regulations. and the accountants and Off
GERS Of railroads who disregard them or
m!sstate the!y reports under oath TO IL.
commission will be prosecuted.
Financial "Wr-~kins."
Recent years." says the commission.
have witnessed tho exposure OF glaring
instances Of tho financial wrecking OF
transportation agencies ~ those IN rosi-
lions OF authority. In many Of these In
stances the application OF correct account
ing rules and principles. with proper
knowledge on the part OF the public and OF
all tho stockholders OF the conditions thus
effected. would have gone far to avoid
such consequences
Moreover the general pubic in,arest
demands that the financial reports OF car
riers shall be true records OF rhe fac:A
that they purpor. 10 show Public con
ndcnce both at home and abroad IN the
financial statements rendered by our ear
riers is very necessary COR the further
dove opnlsnt OF our transportation facili-
ties. and TO the degree that the accounts
OF any carrier are tainted with tho sus-
plcion Of untrurtworth!ncss 10 that extent
they will tend TO impair this confdence
among investors IN the securities OF ous
transportation companies and thus wurs
10 the detriment OF all such enterprises
Tho commission mukea no charges
against the St. rHurs report OF the las,
year ard II goes out OF the way TO make
Il clear that no cloud should be east upor
the earning ability OF that company.
No Reelection ON the Property.
awe do not mean to he Understood BY
any thing here suid as intimating that the
st. Paul company IL not u valuable prop
erty and Is not achieving the results res
sonabIy TO be anticipated from the extern
sion Of Its line 10 the Pacific coast
THE last report OF the Puget Sound
Company TO this commission as a sep
arate property covered the period from
July 10 December inclusive OF the year
1917 The earnings for that period AZ
compared with the earnings OF the cor
responding periods OF previous years SHOW
"a very substantial growth
After making all due allowances f..
undetermined misstatements In tho re-
ports the showing OF results Of tho OPP
GRAFTON OF the new line must be REGARDED
al very favorable. what we wish to
make clear 10 that the accounts OF those
companies have not correctly shown the
facts a condition of affairs not credit
able 10 the st. Pau, lines or 20 their or.
ncals"
The commissions decision. which was
handed down by Commissioner Harlan.
discloses the fact also that there are other
instances besides the Il Paul OF serious