Alma record. (Alma, Mich.) 1878-1928, 1889-10-11
THE REOROANIzED ATCHISON.

Gossip Concerning tho Future
Financial Policy of the Company.
Commenting on the reorganization
OF the Atchison, Topeka IL Santa Fe
railroad company and the resignation
OF President Strong the Railway Re-
view says:
1T has of course occasioned great
deal OF gossip as to the Santa Fe's
finances and its future policy. The
Santa Fe Is unquestionably in
very bad shape financially; it is
practically bankrupt and were it
not for advances made by the banking
interests which lately took hold OF the
property it would now be in the hands
OF u receiver. There is practical
certainty that the road will yet go in :
to the courts unless the bankers again
advance moneys TO pay its fixed charg-
es. They will in all probability do
this, for they have interests at stake
which would be seriously imperillei if
the Santa FeNwere To default. The
Earrings. who with others are behind
Banker Magoun. now the chairman Of
the Santa Fe directory, have placed
vast sums in Americ Ln railway bonds
Ii has been stated (and we learn
through excellent authority that the
statement is true) that the Barlngs
have, during the last five years, placed
over $500, 900. 600 of foreign money in
American railway bonds and that it
is their proud boast that default
mas not been made upon 81 of this vast
investment. In the nature of things
they cannot afford to allow Santa Fe to
default, and thus break their rilliant
record; and there is good reason to be-
lieve that they will not. Say that 81
500, 900 was put up this year TO carry
Santa Fe. and that as much more will
be required at the expiration of the
current half year, this q. 200, 600 would
be but bagatelle to the Earrings and
their fellow operators, as compared to
the enormous values which would be
jeopardized by a default by the Santa
Fe. If these banking interests carry
this property along in this manner it
is possible that upon the expiration of
second six months. affairs-tratfic
and general-will beain such conditi on
that il will be feasible To refund the
Santa Fe's indebtedness at lower rates,
and readiust its finances under gener-
nj mortgage, as the Reading. the st.
Paul, and the Northern Pacific have
found it advisable and practicable to
do. The policy of those now directing
the Santa Fe's affairs is as far as it
can now be interpreted apparently
leading 20 some such end.
"Mr. Strong's position is one in
which he seems to have been unfairly
thrust All who are acquainted with
the Santa Fe system and with Mr.
Strong's abilities and methods know it
is eminently unjust TO charge up the
present deplorable condition of the
property to him. Mr. Strong was dis
tinctively the right man in the right
place for the S nta Fe until he was
taken east against his desire To
assume duties for which he was not
fitted. and which he performed under
the direction of those who are respon-
sible for the present condition OF the
property With the necessity for
radical change of policy, however. it
became desirable, in the eyes OF the
directory, TO change the executive,
and accordingly Mr.. Strong leaves the
road which he has so ably served for
years. 1t looks very much as though
IA scapegoat Was needed and quickly
found