President of The Associated Press.

DEAR SIR, The undersigned, the Auditing Com- Report of mittee of The Associated Press, begs leave to report Auditing that Committee. it has caused the books, vouchers and accounts of The Associated Press for the fiscal year ended June 30, 1905, to be thoroughly examined by a professional accountant.

A synopsis of his report is herewith presented. Your Committee is gratified to have found that the accounts and vouchers were in excellent shape, that receipted bills and approved vouchers were on file for the various expenditures, that the amounts of cash in bank, or in the hands of agents, were correct, and such funds were actually in hand at June 30, 1905. The amounts said to be on deposit with banks and trust companies were also ascertained to be correct, as stated, and the first mortgage bonds outstanding, as well as those retained in the treasury were correct, both as to number and amount. The gross revenue from assessments and other sources was likewise found to be correct.

The Committee is satisfied that the methods of accounting in the office of The Associated Press are simple and effective.

Report of Auditing Committee.

The Committee submits here with the general income account, the income account for the current fiscal year ended June 30, 1905, and condensed balance sheet in the order named, together with a certificate of the accountant, Mr. Albert E. Little, appointed by the Auditing Committee.

GENTLEMEN.-Complying with your request, I beg to report that I have examined and verified the following accounts of The Associated Press, as per accompanying Exhibits:

I.

The General Income Account at June 30, 1904, and June 30, 1905, respectively, with all adjustments made therein during the fiscal year.

II.

The gross income and expenses for the fiscal year ended June 30, 1905.

III.

Its General Balance Sheet at June 30, 1905.

I therefore certify that the elements constituting such Accounts and Balance Sheet reflect correctly and truthfully the transactions of The Associated Press for the period under review and its financial condition at June 30, 1905.

There is yet in the hands of the Receiver of the National Bank of Illinois, in Chicago, the sum of $4,077.96. Inasmuch as there is no reason to doubt that the amount will be collected in full with interest, it is still carried as an asset.

Our investigation discloses that there is an item of $450.15 under the heading "Accounts Receivable," the greater portion of which is in our estimation uncollectible. It is made up of several small items of unpaid assessments by individual papers, several of which have gone out of existence and are bankrupt, the amount in each case being from one to two weeks' assessments that could not be collected because the papers were located so far from the general office that they could not be reached before the sums accumulated. Considering the vast in

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Report of
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come, amounting to more than two millions of dollars, your Committee regards this very small sum of valueless accounts as showing the greatest degree of efficiency in making collections.

In conclusion, your Committee wishes to express gratification at the very thorough manner in which the accounts and records of the corporation are kept throughout.

All of which is respectfully submitted.

HENRY L. STODDARD, Chairman.
E. W. BARRETT,

S. A. PERKINS.