Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1889-05-09
SANTA FE ANNUAL.
Directors Report for the Year Ended
December 81, 1888.

December 81, 1888.
BOSTON, May S.-The annual report OF
the directors of the Atchison, Topeka &
Santa Fe railroad for the year ended De-
cember 81, 1888, was given out this evening,
comparison being made with the year OF
1887 Average number of miles operated
1920, increase 891. Gross earnings $751; l2,-
9l3, decrease g. S48, 453 Operating ex-
penses, including taxes, OH, l6l, increase
$6lS,707. Net earnings, deductlng taxes,
s., 5S5, 951, decrease 50, 467, 100.
1t will be thus seen the earnings for
year 1888 are 81, S48, 453 less than during
the preceding year, a decrease of ID $40
per cent OF this decrease SS0l ,00S is the
loss on passenger business and S2,0o4, 30J
loss on freight traffic.
The number of passengers carried one
mile was 1928, 799 against 2,l39, 623 during
the year 1887, and the average receipts per
passenger per mile was 2.27 cents against
237 cents per mile in 1881 Had the same
rate been received in 1883 as In 1897 the
passenger earnings would have increased
'S134, 40, which would still have left de-
crease of 1896, 68S representing an absolute
loss of business.
The number of tons of freight carried
one mile during 1855 was $40, 593. sos against
800, l67, S42 in 1887, showing a decrease of
1854 ,037 tons. The average rate per ton
per mile was 1.25S cents in 1888 against
1.347 cents in 1887, showing a decrease in
rate of .0S9 cents. If the same rate per ton
per mile had been received in 1888 as in
1887 the freight earnings would have been
increased S12l, 42S. leaving still decrease
of 81, 1882, S72 from freight earnings of 1887
on account of actual business.
Deficiency for the twelve months to
December 81, 81, 517, $50; surplus December
81, s., SSS, 500; net surplus, ST, 435, 55l. 1t
will be seen that even with the additional
traffic derived by the Atchison system
from recent extensions, actual number of
passengers and tons of freight transported
was considerably less than during the pre-
ceding year and it is obvious that except
for business coming to it from its new
lines its earnings must have shown a
greater decrease still.
The reduction of bushes is due to vari-
Dus causes:
First-The unusually light crops for
two years and consequent depression of
all kinds of business throughout the ter
ritory. A community chiefly agricultural
such as that served by our system of roads
does not accumulate wealth rapidly and
the loss of single years crop is seriously
felt while loss of crops for two success
i've seasons becomes almost disastrous af-
fecting every business, enforcing every
economy and delaying every improve
gions feel the misfortune of poor crops as
speedily and completely as the people
themselves. since they lose transportation
not only of products OF the soil but of
merchandise, building materials and
other articles, the consumption of which
is lessened at once with the diminishing
prosperity.
The earnings have been further reduced
through construction of other lines in
Kansas by other lines which covered our
territory with net work of roads reach
ing almost every place of consequence
on our lines and dividing the bus
ness which has hitherto sought our
road. Following the opening Of
these new lines came active and vigorous
competition for diminished business and a
reduction of rates which had TO be met,
but which under the provisions of the in
terstate bill could be met only at cost of
proportionate reductions to and from al
most every point on our lines, whether
they were reached 10y our competitors or
not. Before the enactment of that law
this competition would have feen met by
an arranged distribution of business, but
any such arrangement is now prohibited
In common with all roads and particularly
with those of the west we have suffered
largely from unremunerative rates Many
causes have contributed 10 the existing
trouble in this respect First should be
has long been growing and
which ewes its existence to a
variety of reasons. Temporary reductions
became permanent while il was with great
difficulty that an advance of rates either
temporary or permanent can be main
tanned. Fixing of rates Is a subject Of
great compleXity and difficulty at best.
\ vast number of elements enter into it.
Conditions variable have to be taken into
consideration that the question what are
Just rates, that Is what rates viii produce
Il fair return upon invested capital. is only
capable of approximate answer The diff
ficulty is increased by the fact in dealing
with it railroad is beset with obstacles
not connected with the subject, but IS
created by those whose interests are ayerse
TO the others, The public voice,
whether speaking through legislative
bodies, administrative offices or bust
ness communities, invariably favors
lower rates. Competition between indi-
viduals localities and commercial centerS,
not less than that between railroads, slim
ulates the downward tendency. With all
these influences working in practical COM
bination 10 reduce the earning power of
railroads their right to make any combi-
nation for self protection has been denied
by the state and Observation-Disclosures. The
theory of the law is wrong because they
overlook the fact that the public requires
stability in rates not less than that they
should be fair and reasonable. The recent
amendment TO the interstate act by which
a reduction Of rates without notice Is for
hidden is a recognition of this
principle, to be followed, il is
hoped, by other needed changes
The long and short haul clause is another
feature of the interstate commerce act
which was no doubt intended TO secure
Justice and prevent discrimination as be-
tween localities, but the actual effort has
been to build up certain towns and cities
at the expense of Others, to disarrange the
commerce of the country, 10 force busi-
ness into unnatural channels and TO en-
large the traffic of few lines, while Grip
ping and destroying that OF many Others.