The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-02-15
AFFECTS SANTA FE.
A Bill to Help the Road to Reor-
ganize in Kansas.
pOpULlST SENATORS FIND FAULT
Reason Why the Bill should Rot
Pass-Osher Legislative Matters.

But Do Not Advance a Genuine Good
Reason Why the Bill should Rot
Pass-Osher Legislative Matters.
The Santa Fe railway as public ben
efactor, and the Santa Fe as grinding,
soulless corporation, was fully discussed
in the senate committee of the whole,
the larger part of yesterday afternoon.
During the debate some of the senators
demonstrated beyond all reasonable
doubt that they were not the ''tools' of
the corporation, and others showed that
they thought the Santa Fe wasn't SO
black as it was painted.
The trouble all grew out of harmless
looking bill five lines long by Senator
Thatcher. 1t is as follows: "1t shall be
lawful for any corporation now organ
lied or that may be hereafter organized
under and by virtue of the laws of the
territory of Kansas or the state of Kan
sas to issue preferred stock: Provided,
All the stockholders of any corporation
SO issuing preferred stock shall give
their assent to such ISSUE"
The bill isn't SO trifing as it looks. 1t
is prepared for and by the Santa
Fe railway to enable it to
reorganiZe under the laws of Kansas
Unless this bill is passed the Santa Fe
says it will reorganize under the laws of
Illinois, where it can get a charter under
the conditions it desires without any
special legislation, and which may mean
that its headquarters will be transferred
to Chicago. The reorganization of the
road and the subsequent issue of pre-
ferred stock is step towards coming
out of receivers control and warding off
foreclosure proceedings. By issuing pre-
ferred stock the Santa Fe would expect
to raise enough money to get on its feet
again. 1t will be seen that the bill is
one of great deal of consequence to the
future of the biggest railway on earth.
Senator Leedy Pop of Coffee county,
who says he could have a Santa Fee pass
if he wanted it but does "pretty we'll at 3
cents a mile," led the fight on the
measure. He said, ':This is Legislation
against the widows and poor people who
may have holdings of Santa Fe stock
and in favor of the plug hat aristocrats
who live in Amsterdam and Boston and
elsewhere. To pass this bill is to practi-
cally make their stock now worth only 4
cents on the dollar, worth nothing at al,
or else compel them to pay $12 a share.
Here Senator Leedy read from a dis
patch in the STATE JOURNAL relating to
the plan of Santa Fe reorganization. }
'This meaps," he resumed, "that new
stock will be issued This will be held
until the road is again worth some
thing and then sold. 1t means that
there will be new crop of widows and
orphans to rob at that time. The first
bondholders are aliens and foreigners.
The second bondholders are the same.
They have agents who wear broadcloth
and high hats, who are paid princely sal
aries. They are paid, not for work-oh,
no,-but as a rake-otf on the earnings of
robbery.
They say they will leave the state if
this legislation is not granted to them.
That is what the lottery fellows said.
These bondholders will keep the prefer
mon stock to your widow and mine, who
don't know the difference. This is COM
mon thievery, and nothing else"
Senator Dumbauld (Pop.) took courage
at this turn in the debate and said: "We
sit here in the capitol and think we are
in the seat of government Possibly we
are. but for years the seat of govern
ment has been located just across the
street."
"Yes," replied Senator Leedy. "While
l don't care to bring the accusation, it is
brought from other sources that this
same bill which Mr. Lobdell has intro
election to the speakership from this
same corporation"
Senator Parker, (Rep) said, "If there
is anything in this bill by which the pre-
ferred stockholders can gain any advan-
tage which they could not otherwise gain
by organizing elsewhere, am opposed
to it. But l do not understand that such
is the case"
Senator O'Bryan (Dem.) urged the
necessity of having the Santa Fe re- or
ganize under the laws of Kansas
suits for damages or otherwise
brought against it, involving $4,000 OF
over. would have to be brought IN the
federal court
'EIf the Santa Fe is driven out of Kan
| sas," he said, sit will go to some state
that has good sense enough to treat il
properly
Senator billiard (Dem) emphasized
| Senator O'Bryan's statement, and Sena-
tors King and Sem (Pops.) saw nc
danger in passing the bill
Senator Dumbauld made the assertion
that no Legislation was ever advanced
antagonistic to the railroads.
There was one q number of years
| ago. said Senator Thacher.
"Who introduced it?" asked Dunn
bauld.
Harrison Kelly introduced it. and il
was called the Kelly bill" Laughter
"Well, that was before he reformed"
Here Chairman Milton Brown called
the senate to order.
81 would suggest, in the language O.
the west, that we get back on the range
! he said.
There was considerably more debate
during which the decision of the chail
was appealed from several times and the
lndomltable Brown was sustained
Finally the committee of the whole de
| cided to report the bill favorably, al
voting in favor of it except Senator
Cooke. banner, Dumbauld, Helm, Ian
dis and Leedy.
THE MORGAN CONCERT