The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-11-06

fused to do so. Since receiving the
above Information we have heard moth
ing further in relation to the matter
until you called my attention to it this
evening. No papers Of any kind have
been served on the company. / do not
apprehend that the company will be
put to any serious inconvenience or
expense by this litigation or that Mr..
Keller viii be able 10 collect his claim
any sooner because OF It,
The following statement has been is
sued by Judge Keeler, who assisted
County Attorney Phinney in bringing
the action:
is worse than the condition of the old
company at the time it was closed out
on June 80 1898. the outstanding CAPT
tai stock and mortgage ponds OF the
old company amounted to $3t4, 6tl, lZ5.4o
On June 80, 1896, the outstanding capt
tai stock and mortgage bonds OF the
new company amounted to 1893 Is, 800
The property and assets OF the old and
new companies are practically the
same The income Of the old COM
pany for the year ending June 30, 1895,
was 81 43S, 379-77 less than p years IN
terest on its bonded Indebtedness Inc
result of the first years operation OF
the new company will not be known
to the public until it files its annual
report in 1897 but there is no good rea-
son to believe that its net earnings VIII
be sufficient to pay any dividend on
capital stock nor even the full amount
of annual interest on its bonded in
debtedness. The entire property was
sold in December, 1888, for $4,000 OOO
CIV the foreclosure proceedings
AGAINST the old company and by what
is called the reorganization the lnanlp-
71lators of the affairs Of the old COM
pany froze out all parties not IN the
new deal took the property at S6O,OOO.
600 and proceeded to stock and bond II
for S99S. us. 500 In other words it took
the property which had already been
watered into bankruptcy and proceeded
to water it S54 040,SlO more
There are but two supposable pur-
poses for such a proposition, to-wit;
~ To impose upon investors in stocks
and bonds.
O. To afford an excuse for excessive
charges for freights and fares
THE fact that these manpulatOrs
are chiefly aliens who have no interest
in American institutions other than the
selfish one of squeezing all the money
they can out of the United states IS an
additional reason why pubic onlcefs
should intervene to enforce the laws
enacted to prevent imposition upon the
7.rThe company failed to file with the
railroad commissioner OF the state OF
Kansas on September -. 1895, an an
nual statement as required by law
Within the past week it has published
q misleading statement as to its cOndl-
ton and its first six months income
This statement is ingeniOusly made to
show an apparent increase Of over q
million dollars in its net income rms
increase is not actual, but is made to
appear by treating certain expenses as
prior liabilities. This makes decep-
tive showing because in each SIX
months, expenses incurred or caused
in the preceding six months come in for
adjustment and payment.
This statement purports to give the
amount of fixed charges, but ignores
and does not include any interest on
S51 72S 600 of it's outstanding adjustment
bonds Furthermore the company has
executed and filed mortgages which
provide for the issuance of $5o. 600
more Of bonds to be issued at the rate
of SIS. 600 per year for ten years
This published statement is we'll call
culated and seems to have been intend
ed to keep up appearances in order to
afford holders of stocks and bonds an
opportunity to unload them upon the
market
NOT THE OLD STOCKHOLDERS
Solicitor A A Hurd of the Santa Fe
stated this afternoon that he did not
know just what legal action would be
would not be determined until the ar
rival of General Solicitor Kenna at
noon tomorrow. MI Hurd said that as
far as the operation Of the road was
concerned the company would not rec
Ognize ether receiver or court
THE statute under which this action
was brought, said Mr.. Hurd was never
intended to apply or cannot apply to
s0lutely impossible to operate a rail-
road in this state.
The action of Judge Myers in ap-
pointing a receiver viii do more to in
jure Kansas than almost anything else
1t viii tend to drive capital out of the
state. and t will be impossible to bring
it back"
1Ir. Hurd laughs at the story to the
effect that the old stockholders of the
Santa Fe are at the back Of the action.
NO one that was ever connected with
the Santa Fe road" said he. has any
thing to do with the action. 1t is simply
the work of Mr.. Keeler. I don't know
Just what object he has in bring
ing this action. He has had a case
against the road for several years, and
it may be that ne thinks he would have
a chance to collect his claim. 1t may be
spite work on his part for all that
know"
Mr.. Hurd also stated that the case
would be pushed to the quickest posi-
bic termination
In reference to the story that the old
stockholders of the Santa Fe were at
the back of the action brought in ap-
pointing a receiver for the road in
Kansas. Governor Thomas A. Osborn,
a director of the road said this after
noon. Il don't think there is anything
in the story. It is true that there was
some dissatisfaction among the stock
holders at the time of the reOrganiza-
ton. Mr. Erb wanted to run things
and he wasn't allowed to do it, and in
consequence he was of course dissatis-
fed. But I see no gain TO Mr.. Erb by
such an action. and Mr.. Erb is a man
who doesn't do things for mere spite
but only when he sees some profit to
himself"
TO SAIL THE OCEAN ALONE.
Cantain Freitsoh VIII Circle the Globe