The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1894-08-13
BIGaEsr IN THE WoRLD.
The Great Santa Fe Railway System and
Its Enormous Debt.


Its Enormous Debt.
The Santa Fe system is the biggest in
the world having some 9,344 miles Of
railroad. 1t has a capitalization of BAG
millions dollars. No other railway has
half much The Santa Fe was com
paratively small system ia 1885, having
only 1896 miles.
In the year 1885 the Santa Fe absorbed
certain Kansas roads and began to build
branches in the state at an enormous
rate, the result several years later being
that Kansas had the greastest mileage of
any state in the union, and the Santa Fe's
most vulnerable point, when crops were
Lad, was right here. At the close of
1885 the capitalization of the Santa Fe
stock and funded debt was about 100
million dollars.
In 1886, before the Atlantic & Pacific
was completed to Mojave, Cal, the
Santa Fe began another ambitious un-
dertaking, the construction of line
from Kansas City into Chicago. The
company considered that it would never
be really great trunk line until it had
an independent entrance to Chicago. SO
it acquired the Chicago 81 St Louis rail
road and other small links. and before
the end of the following year its ambi-
tions were realized III the Chicago,
Santa Fe s. California railroad which Is
458 miles long. To build this extension
the Chicago, Santa Fe & California COM
pany issued about $15,500,00O in 5 per
cent bonds, which probably covered the
cost They were guaranteed by the
Santa Fe, the latter receiving the stock
free. Besides this outlay the Santa Fe.
through an independent company, paid
out $3.500,OOO for new terminals IN Chi
cago.
The construction account of the Santa
Fe for new roads for the year 1887 was
heavy, being $40,50O.00O, of which the
principal items are as follows:
4 Car,fa Eref x in, g +ef or
Chicago. Kansas < Western Ines. 6.S51 .6s7
Chicago. Santa Fe & Ca-if0rnia---.---. 15214,tss
Leavenwortn, Northwestern 4 south'n I.2s7's4s
St Louis. Kansas CRY & Colorado IT 1s6,774
Southern Kansas, Indian territory eN-
southern Kansas railway Of Texas. .. 1l54 900
In the year 1888 the construction ac-
count for new roads and real estate
amounted to twelve million dollars. After
that year the Santa Fe did not do any
very extensive building, but it absorbed
several important systems, among them
being the St. Louis & San Francisco and
Colorado Midland. The entire common
and preferred stock of the St. Louis s.
San Francisco, with small exception,
was purchased by the Santa Fe in May.
| 1890 the Atchison issuing for that pur-
pose twenty three million dollars in new
stock.
The reorganization of the Santa Fe
4 system in that year. which became en-
! barrassed and threatened a receIvership,
4 provided Tor the absorption OF the oan
! Francisco road, which was the only
course open to the Santa Fe.
Under the reorganization cOnsOlidat-
/ ed general mortgage for $50 million dol
lars, bearing per cent was provided
/ for; also so million dollars, 3 per cent in
come bonds. OF the general fours 131
million dollars were reserved to retire
/ prior issue.
The entire capital stock of the Colora-
do Midland, million dollars, was pur-
| chased in October, 1890.
The stock and bonds OF all the roads IN
the Santa Fe system except those of the
! Colorado Midland and ST. Louis and San
I Francisco roads are deposited in trust
under the Santa Fe's blanket mortgage.
and hence the system Is practically one
line, although there are a great many
/ different CORPORATIONS.