Wichita eagle., 1889-06-20
SANTA FE CONDITION AND PROS
PECTS.
New York Commercial Advertiser.

/
Grafton of the Atchison situation. Stron
ground was taken that the railroad, whic
had just completed an enormous extern
sion, was not earning and was in no condi
ton to pay the August dividend, and tn
| lack of wisdom which would be shown il
| the payment and the injury to the best in
terests Of the road thereby as well as tn
abuse of the confidence of the pubic ant
the stockholders was presented.
Efforts were made in that and subse
quent issues of this paper to aid in tn
formation of such a state OF public feelln!
as would approve OF the passing OF tn
August dividend This was advocated b.
some of the leading financial men of thu
city. Nevertheless dividend of ~ Pc
cent, or 81 ,2OO, 900 was paid. The baC
injury to the road and the depreciation o
property which would ensue, were pointed
ont in these columns. This mattel
is referred to because in view
of what has since taken place
in the depreciation of the property
aid the loss thereby of millions o.
dollars to the stockholders, it seems al
most incomprehensible that the manage.
ment Of the road should have been SO fat
uously blind.
The stock of the road year ago sold al
81, representing valuation of SEQ, 750, OO(
on a total Of 750,0 900 shares. The closing
price yesterday was 46, representing 8
value of S34, 100000.
The condition of the road since last fall
has been matter of universal knowledge
as its rapid decline attracted universal at
tention. The condition and prospects
of the road at the present time
to the stockholders who have suffered sc
severely by the decline and to the purchas-
ing public generally. Owing to the change
in the management of the road at the an
nual election in Topeka, May 9, strong f.
nancial backing has been secured and the
benefit of this is seen in the fact that the
June and July obligations of the road have
already been provided for and anxiety as
Co whether the road would be able to meet
its interest charges during the summer has
baen dissipated.
The April earnings were presented, in
our financial column last week. They
showed net earnings of S55S,9S4 against
s235.S35 in April, 1888. an increase OF 1923, :
i49. The earnings for the first four
months of the year were s., 0S6, 159, and the
expenses 6,4O2,9 57, leaving net earnings
of 81, 6S3. 1872, The fixed charges Of the
road are about 500 eo2 per month and nd
only about ~ percent Of the fixed charges
The April earning was considerably
better one than that of any preceding
month this year, and showed very large
increase as compared with April on last
year which was very lean. Yet tho April
earnings this year are only about 81 per
cent Of the fixed monthly charges. AS to
the May earnings no statement of value
can yet be made. They will not. be occur
Gals of,the road are4confident, however,
thattthey will show a decided increase
over the earningssof May, 1888.
. The prospects and future net earnings of
The Atchison-are now mainly dependent on
three matters. The crops, economical
management and the freight rates. AS to
the crops, the prospects in Kansas are
most excellent for wheat, and what little
can be seen Of the other crops is promis-
ing There have been harvests for three
seasons in Kansas, and the wheat crop
for last year was not more than one
half Of the average. This year it will
probably exceed the average, and
will be more than double the crop of
last year. This will greatly benefit the
main line and many branches. Business
in Indian territory and Oklahoma will be
of fair proportions, but not up to the April
business. There will be no crops to carry,
as the settlement was made too late.
The Texas crops are in excellent condi-
may be expected from that district SO far
as the Atchison lines reach it, New Mex
leo or California business is not expected
to show much If any improvement. The
Chicago extension, which was built to
handle Atchison business, improves
with the rest of the line when
the crop freights are heavy Its
local business is not expected to show
much gain, however. To sum the matter
tho n.y. for silva IN
ment in the earnings of Atchison are very
good owing to the big crops in Kansas.
Considerable economies have been made in
Atchison during the last half year. Some
further economies can be made no doubt.
as much closer, sharper management can
be made than when road Is doing ex-
tensive constructions. While, therefore,
the gross earnings of Atchison seem GER
tain to show a large increase in
and perhaps further economies in manage
ment, the question as to the net earnings
depends on freight rates.
The Kansas railroad commissioners have
within two weeks ordered that the rates
to Wichita be made the same as to Kansas
City. The amount of reduction necessary
to make the Wichita rates level with Kan
sas City is not as yet figured, but great
will be done to the road if the low
7
No doubt the Kansas railroad commits
sioners feel that they are justified in reduc-
ing rates SO as to give Kansas point the
same benefits as Kansas City, which is in
1t is very unfortunate at the
present juncture when the road was build
ing itself up, and needs all possible aid.
II the action was necessary 1t might well
have been delayed until the roads earn
ings were equal to It's expenses and the
80 tool ie in, he,
fact that it may farther cripple the road.
1t is another illustration of the. fact that
western railroad commissioners are most
peculiar bodies.
Even with a reduction Of rates it is felt
that Atchison will show good earnings
this fall The fixed charges will not be
reached, in all probability, this year, and
the Atchison can not be regarded as a div
idcnd stock for some time to come.
TIE SIOUX EVIDENTLY WEAKENING.
PINE RIDGE AGENCY, Oak, June 10
The condition has somewhat improved
since yesterday, and the excitement has
and a better feeling seems to pre-
vail. The Indians are now asking for in
singly or in parties of two or
three, instead Of complaining about the
of the treaty, which has been the
burden of their talk until today.
With few exceptions none of the chiefs
have been willing to discuss the question
Of the sale of their surplus land.
Last evening and today General Cook
has had interviews with many of the prom
nent Indians and ''squaw men, and ex-
planned the provisions of the bill to them
with good effec. During the
Iarge council, the Indians have been bound
Town to the agreement Of their caucus and
have been unwilling to go beyond in the