The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-09-29

From exactly the source limited at by Mr.
Nickerson and clearly stated by Mr.
Strong, the cyclone finally game. The in
creased expense and the diminished re-
ceipts brought crisis. The stock of
the company had come to be considered
among the surest on the market and was
sons, who paid for it probably an aver
age price of one dollar-some having paid
long as the company was permitted to
have full possession of its immediate traf-
fic field. it could and did keep even with
There was no doubt of the honest and
Intelligent management of the road, and
when the traffic of the company was
everywhere slaughtered by competition.
Union PACIFIC and Northern Pacific and
other lines cut into the transcontinental
business of the company. Then the local
business was cut into by the heavy new
mileage of the Missouri Pacific, the Chi
Burlington * Quincy. the Denver, Texas
& Fort Worth. the Kansas City, Fort
1885. 1885 and 1887 the Missouri Pacffic
alone built OH miles of road in the Santa
Fe's immediate territory. In the same
years the Chicago, Rock Island & Pacific
road constructed about 1900 miles also
Fe N-- '7-'-'''-
The result of this paraIIeling and BIZ
secting process was; first, that the Atehi-
essary to protect itself by building new
trunk line from the Missouri river to Chi
cago. and many branch lines so located
that they would feather in towards the
main line rather than out towards rival
and operating expenses were greatly in
creased; and, second. that all local rates
points and on all classes of through BUSH
ness 1t was natural, therefore, that the
"a distress greatly fncreas ed by the prev
alence of poor crops and the adverse work
sioners and courts. It's annual fixed
charges had come to be over eleven mill
approachin Every effort was made and
the money was actually arranged for to
passed and ali might be well; but at the
last moment a personal quarrel in the
board led to a division of strength and
tually abandoned the field and the stock
went down to a market price of nearly
stockholders' assuming the average cost
of their stock to be one dollar, of between
fifty and seventy-ffve million dollars, For
the next annual meeting the stockhold-
ers sent their proxies to Messrs I<idder,
Peabody & Co. as requested: Messrs:
George c. Magoun, John j. McCook and
Thomas Barring, with other gentlemen of
Mr.. Magoun became chairman of the
board. Mr. Strong left the company and
Messrs. Magoun, McCook and Barring are
of the company. Mr., Marvel at once put
coupled with the most careful manage
ment generally. He paid Mr.. Strong the
all of his chief assistants.
The first work of the new board, after
property, was to reorganize the finances
of the company This they did by
Eenious, process largely elaborated by
Mr.. J. W. Reinhart, the first vice presf- |
dent of the company.
Under the reorganization plan the COM
pany authorized the issue of one hundred
year per cent bonds and eighty million |
dollars of per cent income bonds. The |
curities so as a TO radnce the annual f4xed
charges from 81, 157, 1880 to 1882, 800.
a second mortgage for the eighty million |
dollars of income bonds, the second mort |
gage bearing graduated rate of interest, |
The income bondholders preferred a defin- |
lite mortgage, and the company believed |
the interest on the incomes would ex- |
coed that to be paid on the seconds on |
the graduated plan. Both sides We're.
1t will certainly be a long time before SO |
bold a reorganization is again erected 50
ea f the ST. s9eIS 0u san
road was bought. This road had large
nefitor of the Santa Fe and it's fun pos
session enabled the Santa Fe to come
and at the same time procured for it the
half of the Atlantic & Pacific
stoek The purchase OF the ,; Eolo of
1cter.
The legal history of the system is also
4
tons which have at one time or another
played an important part in the history
abandonment and absorption. There are
low seventy-nine active companies: The
vast number of properties has been done
oy Mr.. George r, Peck of Kansas, who
TO him, chiefly, has fallen the task of
Welding together this vast number of cor
%hG nto maze fBe p pTe te ess te t o
set to revolving in close connection with
Pc, and the headquarters building OF the
stands within stones throw
If the capitol building of the state. Anti
oke oft repeated about the seat of gov
tead of in the state building. As a mat
er of fact. the Santa Fe management
las always .endeavored not to be a polit;
Ifr. Peck assisted in establishing a board
n ratF0n ighf haVe been deferred and
he company has in every way sought to
hey the law and encourage sound legls-
his policy would in the end earn the
most money similar r. p eDnIoI has been
'or strikes and troubles have been fnfre-
Iuent and of little consequence. Mr.: Fd7
he employees of the line with currency
arried in a satchel. Now there are
etween managers and employees has been
n every way encouraged. For years
maintained along the line, and a splendid
ospita1 service is now in effect.
Under an act of congress of 1868, supple |
nented by an act of the Kansas legisla-
ure in 1864, the Atchison, Topeka & Santa
e company received grant of land. ap-
so 900 acres The grant |
alternate sections in ten mile
trip on each side of the main line of the
Dad through Kansas Wherever one of |
hese alternate sections had been pre-
mpted by. settler the company was in
emnified by the right to take land in the
econd ten mile strip on each side of the
DAD. The taking of this land was cou-
led with a large number of conditions as
0 price, method of selling, etc. and the
ands were all taxable. Tn sale Of this