New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-07
RAILROAD OFFICERS
BLAME CONTROLLER
Revenue Decrease Falsely
Laid to Low Rates and
Cost of Labor.
ALLEGE STOCK JOBBING
All Common Carriers To Be Held
TO Strict Accountability for Ac-
curacy of Statements.

Washington, March G-Charges that
the book accounts of the Chicago, Mil
vsukee & st. Paul Railway Company
and Of its subsidiary. the Chicago,
Milwaukee & Puget Sound Railway
Company. have been so manipulated as
70 mislead the public and tend to Gre
s,e a more favorable market for the
securities Of the roads were contained
IN report made public to-day by the
Interstate Commerce Commission after
an exhaustive investigation of the
financial affairs of the roads.
By means of entries the income of
the ST. Paul company for the year
1910 was oVerstated by more than
s5,oooooo. the report declares, and as
result Of this overestmation the re-
pert Of the succeeding year showed an
apparent falling of Of revenue Of more
than 100000.
Various instances Of unlawful over
statement of income were cited,
While criticising and condemning the
accounting methods followed by the
companies however, Commissioner
Harlan. who prepared the report, said;
I'VE do not mean TO be understood
10y anything here said as intimating
that the st. Paul company is not a
valuable property and is not achieving
the results reasonably anticipated
from the extension of its line to the
Pacific coast"
The disclosures by the investigation
Of what Commissioner Harlan de-
.cribes in the report as SERIOUS irregu
larities" in the accounting system of
the roads were regarded by the com
mission as indefensible, although the
officers of the st. Paul company ex-
planned that they resulted from negli-
gence, inattention and lack Of famili~
arity on the part OF the company's
controller and those under him with
The requirements Of the commission"
There IS no sufficient basis of rec
ord SAYS the Commissioners report,
TO enable us TO condemn or acquit the
controller, either Of full responsibility
or Of his share of responsibility for the
rendition of the accounts of these com
panes. but there are grounds for
very materially qualified and mini
mixed by the instructions and direc-
tons given him by the executive and
other officials. Whatever may be the
fact IN that regard, the commission
nov feels that a more careful observ-
snce of our rules and regulations Is
promised for the future. This we con-
fdently anticipate Will be realized
To Demand Accurate Reports.
general adnonition contained in
the report made il clear that the COM
mission hereafter will hold to strict
accountability all common carriers for
4hs accuracy and truthfulness Of the
statements contained in their reports Of
financial operations.
Ia some instances to-day's report eX-
planned g financially strong road max
ing large net earnings would not hesi-
tate 10 conceal the facts by adding to
is operating expense accounts sums
disbursed in improving its property. on
the other hand. a financially weak
road, seeking 70 enhance its credit by
a good showing Of operating results,
would include in its property accounts
sums expended in operation.
"rh. result was that carriers an
nusl and monthly statements Of net
Continued on fourth page. third column.