The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1884-02-21

100 N1N = OA " A0O now 9QFGnu-
cerauve Kansas business atone hiss been
To them ia the past ten y, ars Even the
Kansas Pacific with the Colorado traffic
10 assist it vent into the hands of a re-
ceiyer. Even in the case of the Alchi
son road, though the road was be gun in
1862 It was not until 1879, when the
road had reached INTO other states and
territories for its business that the durs-
bilitT of the prop sriy was secured; and
the payment of dividends at low rate
was begun. -,
In the meantime what return was
made for the money invested in the Aich-
lson roadf The records chow that the
bonds of the road sold at prices ap-
preaching par, and bore inteI ct at only
six and and seven per cent per annum
What Va re the rates of interest ruling in
Kansas, Colorado and New Mexico in
these years. Twelve, fifteen, eighteen
and twentY-iour per cent per snnum was
regularly obtained either IN iuvestm snts
in or on loans made on much less pre-
cafious property than railroads
Many of the original subscribers 10
the construction OF railroads in Kansas
ON paying down one thousand dollars IN
cash received bond bearing interest at
six or seven per cent and q thousand
dollars In stock. II was expected that
in few years the roads would SO devel-
op as to make the stock valuable, and
thus make fair compensation for the loss
IN interest between seven per cent and
the current rates then ruling. More
than halt of these Investors in Kansas
railroads not only did not receive this
Just compensation for the loss of interest,
but lost half and sometimes more than
half of their original investment The
Atchison stockholders were, as a rule,
more successful than stockholders in
other roads, but instead of waiting q few
years, they had TO wait ten years and
more before receiving q dollar return
from their stock Even some of the
Atchison holders. (and some were Kan
sas men, who still live in the sta'e and
can testify to the fact were comp lied to
sell their securities III the panic of 1873
and IA, and were ruined or cTippl d by
the investment In the road. But while a
great many men fell by the way, others
carried forward the work and kept put
ting in new money and extending The
70 d to Colorado. New Mexico, ETC., I'M
til in 1879, success was reached, the
compsny's credit established. and IN that
year the first dividend of three per cent
was paid on the stuck Were not these
Atchison stockholders entitled at the
end of these ten years, to fair return
for the difference IN the interest account
between six and seven per cent per an
mum, and the regular and legal rates
paid in Kansas, Colorado and New
Mexico, on ali other classes of invest
ment? If at the end OF twelve years,
namely, in the year 1881, a scrip divi-
dend of fifty per cent. was paid by the
Atchiso1 company to its stockholders,
had 1t not been fairly earned in law and
equity? Take pencil and for ten min
utes figure on the interest account for
these ten or twelve years, and you will
| lind that there are few Investments in
| the state of Kansas that have not paid
| twice the interest obtained by the AtchI-
son railroad investments. And of all
the roads in Ksnsas. the ktchison is the
| only one that at the end of ten years was
able 10 partially accomplish the expec-
tatiOns of It's investors by earning good
/ rate OF interest somewhat equal 10 otheI
rates in the state, and this was only &C
complished by extending the road on
wards to the Pacific and Old Mexico.
These facts given above relate only Il
the question of the interest account tC
| which this railroad investment was en-
titled, so as to give it somewhat near the
same T, tie obtained on other Investments
But it will be remembered that othe
classes of property in the state which
have received twice the rates ofinteres
obtained by the railroad investors
have found their principal also increases
two, three and four times In value at the
end of ten years. Every class of proper
| ty along the entire line from Kars4s CITY
and Atchison to Deming in New Mex
leo, has greatly Increased in value. L
the railroad property, which has chiefly
brought about these results, TO have ~
share IN the general prosperity and sd
vance OF values?
No. 4. You say, 1--WE challenge YoI
to produce the proof that your book
ought to show it, to contradict US wheI
| we assert that it is our firm opinion
that not five millions of dollars OF MONEY
of the Atchison, Topeka s. Santa F.
stockholders have gone into this vas
| property"
In answer to this statement we advise
you that the AtchisOn, Topeka and San
Ia Fee railroad company sold to its stock
holders shares fits capital sock at a pal
value of 800 per share tor cash at th'
times given below, realizing the amour
of money hereafter named: 1879, 2O,79.
shar, for 81 O97, 900; 1880. %, 424 shares
tor So, 242 400; 1881, 62,674 shares fol
So. 267, 400, 1882, 47,127 shares for 81. 7l2,
700.
Thus in four years alone, the largI
sum of fifteen milf ms, three hundred
and two thousand, four hundred dollar
in cash money to the AtchIson stOrk
holders was paid into the treasury il
exchange for the company's stock, an(
the accounts show that more than three
fourtts of the money was spent on i'm
provements on the old road IN the stat'
of Kansas, though the sock covers thu
entire system of road in the seven state
through which its runs.
There is not one dollar of stock o
bosds of this company's issue that doe
not represent value received ia eQuit,
and law. Whenever bond has beeI
issued, its full market price has been re
ceiyed in cash and spent IN building o
improving the railroad. Whenever
share of stock has been issued, a fai
consideration has been received eithe
IN cash or in other lawful and just con
| siderations, as IN the case when the com
pAny's stock was paid to several of th'
counties for their bonds in aid of tn
construction of the railaoad, or IN case
when the compaDV's stock was OK
changed for the stock of other railroal
companies in this and other states, i
order to add them to the Atchison sys
tenn, or as in cases of the original sui
. scription to build the road, when tn
stock was issued with an equal amour
of seven per cent. bonds to secure cas-
with which to build the road, or as i
the case In 1881. when stock was Issue
to make good the difference in interei
account, as shown in another part {
this letter.
Having shown that the millions c
money which the road has cost bay
been fairly paid by its owners this STATE
ment would not be complete withoC
showing a0sdt the OsonerS hare done soit
: the money Which that portion Of the rOd
in Kansas has earned IN the last te
gedTs. once stated to the board that
believed that every dollar OF money tn
had been earned in the state of Kanss
by the Atchison road and its auxiliaI
! Inns for the transportation of freight /
the state to and from the state, and aero
: the state during the past ten years hs
! actually been spent in the states In e'
: psnses for operating the road IN kansa
I in Kansas taxes, and in Improvements
u Kansas.
It is difficult and expensive 10 get
! the actual figures for earnings and e.
penses. as the road is operated as
: whole, but after much labor, the geneT
auditor has presented these figures
giving a close approximation to Il
+ truth. for nine years ending Dscemb
: 31st, 1889.
TABLE A.
Il Showing the amount of earnings fro
: freight transportation by the A.
. g. F. r. r and auxiliary lines, {
+ freight carried within the S ate, 10 81
: from the state and across The state.
g vear Freight earntn,
0 1874 .........-S 9.64o
- I0I5 ...... IIOS, 6f7
!. 1915 -. ....... I,57T Ss1
y 1871 ....... l. T06 98l
ISIS .. s-......---.. 2,67e I04
" 1874 ..-.-.. 4 0zS rs
:, Isqs0 ...-........- 6I7.2o5
Q | ISsI ..-.. S.s42 967
l. 1882 ...... 8 3l9, 7Sg
= Total for nine years. SIS 1851
!. TABLE