The courier. (Lincoln, Neb.) 1894-1903, 1897-02-20

etc cke; while the railway bondholder is
pictured ne q money X NC. dwelling in
New England or some other foreign
land, reaping large end sure returns
from his Investments 10 western rail.
wave, which could be built for mere
fraction OF the cost that their securities
represent. Brooding over these mistaken
notions, il is perhaps not strange that
the farmers come TO believe that
the railway business is too profitable.
and that they will be ent rely justified
In reducing the rates by which these
non resident capitalists have become 80
prosperous. Not enough effort has been
made to show the fallaciousnees Of this
idea about railway investme nts, but the
neceesi.y for presenting the facts in this
matter Was never more urgent than now.
One OF the clearest statements on the
subject is that just submitted TO tn,
Kansas legislature by Mr.. E. ID. Kenna,
general solicitor OF the Atchison. Tone ka
& Santa Fe. entitled The railroad ques
ton in Kansas from the investors stand
point" Replying to the common aseer-
ton that the railway companies OF the
west are paying dividends and interest
on borrowed capital. il is answered that
no class of property las yielded SO little
return for the actual cash invested in it
a the railways OF the southwest.
and no class OF investors has suffered as
gre atty se the men who furnished the
money to construct the railways OF the
western and southwestern states. As to
the returns on capital stock, the fact is
cited that with a eingle exception no
Kansas railrosd corporation has paid q
dividend OF any kind for many years.
The one exception is the Rock Island,
which has paid per cent, no por ion at
which was earned from its lines in
Kansas.
Answering the false assumption that
the Kansas roads at least pay interest
equal to fair return on the cash actu-
ally invested in them. or on what it
would now cost to replace them, the
following statement is made in regard
to the chief system in the state:
During the past gear the Atchison
company paid no dividends whatever,
and paid, in interest on its bonded debt.
q sum that is only equivalent to $aOi.7O
per mile Of it's railroad. which is 3 per
cent on ell,745 per mile; Sd that the to-
tai Payments, made ty the largest rail
road system in the state, to its 81 curity
holders OF every clase. equalled less than
6 per cent on $4,000 per mile OF rail
road; nd, it should be borne in mind,
the company owning this system has
bridged nearly every large stream on the
contir emf, and has spent millions in
tunp. ling mountains, reducing grades,
acquiring terminals in large citiee, and
so improving its railroad as 10 make its
ops ration economical and safe.
As to the assertion that at least the
original investors in Kansas railways
have made money. 1t is shown that on
the contrary these investors have been
heavy losers. Taking the four chief
railway systems in Kansas. startling
are given. showing the
total value at the current prices. OF the
stocks OF these companies in 1887 and
1897 respectively:
Jan. 3, 1857 Jar. .. 1897.
L MON Pacific 81, 2i0O00 5,195IoD
Rock Island .----.-.... 5o.l563e SUCCESSES
Missouri Pacific 5s.46s.s50 II ,06s.I50
Atchisons. .......-...... S,1s5u0 Az 500