The Wichita daily eagle., 1892-11-29

is now almost worthless, is at least on
its face evidence of bad management, or
verse than that.
B-The people of Kansas should pay a
decent revenue to the railroad TO enable
it to maintain itself, pay its operating
expenses aud a fair rate of Interest on
the cost of the road and the yearly bet
terments, but not one cent should they
pay for money expended in building or
| maintaining lines in other states. For
example, if the cost of the road is
SEQ. 900 per mile in Kansas, $4,000 per
| mile in Missouri, $4,000 per mile in
| Illinois and S25, 600 per mile in Colorado.
| the Kansas people should not be made to
paw freight to maintain the road IN any
other state. and if we do it is wrong and
| should be renedied:
Again, if the bonds built the road, the
pos:tion of stock holders in the road Is
that of the owner of land mortgaged by
an owner for full value, viz: ownership
! an '.eauity of redemption" in the land.
! If the road cost $40, 900 per mile, equip
ped, then Kansas shoald pay per cent.
or per cent. or $1,000 or 81 400 per
| lllitc dOONo tAUtESro "a oJCidtiiS tA'S
railway as a profit to the company,
which profit should be applied first.
10 the interest on the bonded debt:
second, the creation of a sinking fund;
| third, toward dividend on the stock.
And in Justice to stockholders. the sX-
pense account should be kept as low as
the same Can be. consistent with able
and thorough management.
Are Kansas shippers paying interest
on the bonds issued to build the Santa
Fe Missouri. Illinois. Colorado. In-
! dian Territory and Texas?
Are they paying any greater pro rata
Of the Interest on one hundred and nfty
millions debt than justice demands!
! Does Kansas pay, or has it paid divl-
dends on stock after paving interest on
more than tie railway cost?
/ C-If the cost of road is S20, 900 per
mile (which we doubt, and bonds are
issued for $50. 900 per mile and stock for
$50, 900 per mile and there has ever, at
any time, been an attempt to wiring
from Kansas shippers more than or Z
per cent. on the cash above maintenance,
expenses, equipments and betterments,
then wrong has been committed and
should be remedied.
We believe that instead of paving 10
per cent. net on the cost of the road, that
Kansas has for years paid at least % per
cent. on the cost, and that the difference
between what we should have paid and
have paid has gone toward the construc-
ton and maintenance of the lines pay
ing and non -paying) beyond the limits of
Kansas.
We believe that any railroad company
that has bonded debt equal to, or
greater than the cost of the railroad,
should be, by law, prohibited from de-
claring dividend on its stock until it
has paid its expense interest and better
ment account and set aside a sinking
| fund to meet its bonded debt as it be-
comes due.
Is there any injustice in such law?
Can any one formulate reasonable
theory why the owner of an estate,
mortgaged for its full value, should have
a profit out of it? Has he any invest
ment in it after borrowing its full value?
Does he possess anything except a mere
naked, salable equity which is not a loss
when destroyed!
| Is it not common report that the Santa
Fe railroads stock has no real value eX-
cept for the mere purpose OF controlling
the railroad and fixing salaries for
officers?
The bondholders own this road in
reality-and perhaps should he in posses
sion of their property. The stockholders
have received, in law, all their invest
ment, and as a matter of law are not en-
titled to sympathy or consideration. If,
however. inquiry develops that the bond
| Ill Jor cfnclrhnl6orc q in.
nocent and worthy holders of stocks and
bonds, we confidently rely on the gener-
osity and liberality of our legislature TO
act under the golden rule of do We
unto others as We would they should do
to YOU" under similar circumstances.
For fear we may be accused of rancor
toward the Santa Fe railroad we will
state that it's financial condition from
1889 to late date has been constant news
paper comment-and in this month a
statement was made by New York
brokers that its stock was of but little
value-and its debts over one hundred
anc fifty millions of dollars.
The Missouri Pacific railroad has some
road bed bonded for more than it cost,
stocked for more than its worth and it is
said paid four per cent. dividend on its
stock II il earned any more net cash
than it took TO pay expenses and inter-
est on its cost it simply charged Kansas
that much more than it is justly entitled
! to earn. This is another example of an
estate mortgaged tor full value and the
owner of the equity of redemption in
possession, waiting for purchaser-and
in event of failure the get all ne can
from the land and jump it and let the
mortgagee have it at the end of the law s
delay.
The Rock Island is suspicioned of an
| indulgence in bonding for cost-stocking
| for cost, and trying TO earn double
/ dividend-one for bondholderS, one for
stockholders.
The Midland (now a part of the Frisco
railroad) and Wichita and Colorado
(now part of the Missouri Pacific rail-
| road) had sponsors and wet nurses in
| Wichita, and though none of these god
parents are suspicioned of getting any
/ great Sum Of money, yet it is fact that
1 the municipal bonds and railroad bonds
overpaid the cost Of the roads, some
s., 900 per mile, and both were stocked
at more than cost. Is Kansas being
taxed on shipments on these roads ,aore
than simple even handed justice. de-
mands2 Ii so there is wrong-ergo:
there must be remedy. There is an
old law maxim
! There is no wrong without a remedy;
! where right exists, remedy follows"
E-Nearlv all railways in Kansas have
] issued stock to municipalities for aid to
4 build the railroad. Subsequently the
| railway conniving AZ Its own seduction
4 Il i -
| all the stock and started at tshe Old stand
I -, t,,rtocS i.l-a bar.tr,s,r who bau