The advocate., 1891-05-13


Deficit on June 80, 1890 ............ N,S7l, ,9OA0S
This company, by receiving an income Of 80
per cent Of the gross earnings arising through tno
Sary terminal facilities for the operating COM
pany, are obliged to pay the rent OF the same.
Note the fact that while the net deficit
for the year was $25s,92494, the differ
ence of per cent. upon $s5, $4,000 in
bonds, amounts to ss51, 400; 90 that this
one steal alone lacks only $6,734 OF caus-
ing the apparent deficit. ,
Now notice another fact. In order to
swell the apparent deficit Of It's own ex-
extension, the Rock Island route charges
up to the Chicago, Kansas & Nebraska
the sum of $181, ,7S8.93 for rentals Of track
and other privileges, which are an Inn
portant component part OF the Rock
Island system as whole; which Ia un-
just.
Now for the most important fact. The
Chicago, Kansas & Nebraska testifes that
by the terms of its lease, the Chicago,
Rock Island & Pacific was to pay 1t 80
per cent of it's gross earnings as rental
for the use Of its road, and hidden be-
meath this subterfuge is the potent lever
age used by the Rock Island route to
steal q goodly portion Of the Chicago,
Kansas 6 Nebraska earnings, defrsud
the stockholders and wreck portion Of
It's own system. First let US observe that
the Chicago, Rock Island & Pacific, In
it's report, shows net surplus for the
year:of $1SS,649. 1t also makes the fol-
lowing statements:
Percentage Of expenses to earningg-
Operating expenses, state Of Kansas. ,sSi.S6
ADDITIONAL QUESTIONS.
! !. .. Operating expenses per mile Of road. g.
3. Operating expenses per train mile. 7S cents.
Estimated on same basis as that used In COM
putingS for Kansas
Total gross earnings from operation,
In KANSAS ACKNOWLEDGEMENTS. $3,llZ,S63.S6
%The company accounts show the earnings
made on the lines west Of the Missouri river, and
an appOrtionment of these on basis Of mileage
would make the earnings in Kansas
Now, let US figure little. If 30 per
cent of its gross earnings received by
the Chicago, Kansas & Nebraska as
rental was 81, 3,679.57, then its gross
earnings were $4,S78,931.9O. Again: II
the operating expenses in Kansas, upon
1,05558 miles, were $2,131, ,881.36, then
the operating expenses of the whole
Chicago, Kansas 6 Nebraska system Of
1,486.3O miles were $3,O01, ,77606, or 81.52
per cent. Of It's gross earnings. Now, the
difference between 30 percent, the
amount paid by the Rock Island route
to the Chicago, Kansas & Nebraska as
rental, and 3848 per cent, the GctaGI,
percentage of the Chicago, Kansas &
Nebraska net earnings is $413, ,733, ,425. .12,
which amount the Rock Island route
openly, flagrantly and sudaciously stole
from Its own extension In order TO wreck
1t and rob the holders of the minority of
the stock, of their money invested.
Now let US sum up:
Amount stolen in excess Of interest on
Amount mount stolen tcii iic out Of &. X. &N. net
earnings ................'.......' AlS,I3S
Total. e666,223
the year. ........................ ae,224
Actual surplus, available for dict
dclds, Of the G. x. b N ....... &406,990
Again:
C,K. & n. surplus In fact.............. e406,o9o
Deduct c. r. / & p. assumed surplus. 13e,649
-sT-----a
Amount the G. r. l. B p. would
have lacked Of paying per cent.
dividend II it had treated It's
own extension, the @. X. q N,