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1. Rebates: nearly $4,000,000 in rebates to shippers had Been charged not against earnings, but to an account entitled "Auditor's Suspended AccountSpecial," and so carried among the assets although they had absolutely no value. 2. On instructions from the financial office in the East, Over $2,000,000 were credited to earnings and $781,000 deducted from operating expenses without any reason or excuse. These amounts were debited to "Auditor's Suspended Account." 3. $488,000, according to the report, was improperly Capitalized as improvements. 4. The company carried as an asset $305,843 traffic Balances which were in dispute and were in fact absolutely uncollectible. Misleading Statements While the technical intricacies of juggling corporate accounts so as to present false or misleading statements to the general body of shareholders and to the public cannot be here discussed, it is no doubt clear to every reader of this volume that many accounting entries are matters of judgment and good faith; and whenever one of these essentials is lacking, the company's accounting statements may be technically accurate and yet may conceal the truth. There are numberless variations in method. 'Daggett's "Railroad Reorganization," pp. 208, 209. The objects sought in the deliberate juggling of accounts are also varied. One of the most common purposes is to make as good a showing as possible for the administration that is in power. Either it is hoped that later prosperity will permit the subsequent correction of any inflation of values that may be written on the books, or misrepresentation is resorted to as a desperate measure simply to stave off a revolt among the shareholders. Sometimes, also, it is essential or the directors so believe that the company should present a showing which will enable it to pay dividends so that it may redeem the promises that have been made to its security holders during the period of promotion. The American Malting case is an example....