Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1899-07-28

Pacific. All the money necessary for
the construction of the line to a onnec
ton with the Atchison was raised in
San Francisco. The Atchison company
paid for the stock Of the Valley COM
pany the exact amount paid in by the
subscribers. The Valley company's line
has been completed from Stockton to
Bakersfield, and is now in process of
construction from Stockton to Point
Richmond, opposite San Francisco.
REDUCTION IN FIXED CHARGES.
When the receivers of the Atchison
were appointed the fixed charges on in
terest- bearing securities which it was
required to pay were over SO, 500, 900, and
it's floating debt exceeded So, 900, 900. On
the other hand, the new Atchison COM
pany started under a financial plan,
the annual interest requirements of
which were less than $1,000, 900 per an
mum. This, more than anything else, is
largely responsible for the great sue
cess of the Atchison during the subse-
luent years.
Instead of a large floating debt, the
new company started off with several
million dollars in the treasury, which
it has been the policy of the manage
ment to increase. Moreover, the old
company, not unlike other companies
that are prosperous, had no available
funds with which to make improve
nents or acquire new branches and ex-
tensions. The consequence was that the
company, like others in the same fix,
was required to pay enormous rates of
interest or sell it's bonds at large dis
counts for the purpose of raising neces-
sary money.
MILLIONS OF CASH ON HAND.
To guard against this contingency the
~reorganizers of the Atchison set aside
$50, 900, 900 of first mortgage 4 per cent
bonds, that are now worth in the mar
set 102, to be used at the rate of not ex-
2eeding So, 1000, 900 per year for the pur-
pose of improving the road and acquir-
ing necessary branches and extensions.
liol ~ company lldC uocu lHlS pIlNl-
lege sparingly is shown by the fact that
while it might have issued up to this
time $12, 900, 900, it has issued less than
$4,000, 900, thus giving it at the present
than Sc, 000, 900 of available cash with |
which to meet any emergency which
may arise, or for the development of
new territory, or fer the improvement |
Of it's own line to meet new conditions.
The securities of the Atchison started
off low. People were d~istrustful of a
property that had been so unsuccessful.
There were many times when the stock
holders who had paid their assessment
Of $40 could not have sold in the market
the securities they received for more
than IS. The first mortgage bonds of the
company lowered between rs and so, |
waiting until some leading financial
spirit would give the Endorsement nee
essary to their enhanced value. Never
there were people who had faith
IN these securities.
LOW PRlCES In 1895. |
Atchison first mortgage bonds, that
IRE eagerly sought now at a premium, |
were easy to be had during all of 1896
at 70. The income bonds, now firmly
held at IS, went begging under 40. The
preferred stock, now in the COS, could
have been purchased for IA cents on the
lollar in 1897. The first mortgage bonds,
now selling at 1902, could have been
bought at 6sA. Adjustment bonds, now
considered by the financial world as alb
good, could have been bought
at the same time for 2S cents on the
lollar.
ENTIRELY REBUILT.
The railroad. has now been rebuilt.
Every tie and rail upon it has been ia
zen up and replaced with new ties and
'ails. There will not be at the end Of
he present year a single rail lying up
IN the track between Chicago and San
Diego that was there when the Atchison
allied. Wooden bridges have been re-
placed by steel or masonry structures.
All Of the ties now being put into the
property are treated chemically, SO as
o extend their life many years. This
emporarily results in an unusual in
,rease Of operating expenses, but will in
he years to come largely decrease the
,harge made necessary by tie renewals,
All bridge timber is likewise treated
HIGH OPERATING EXPENSES.
All Of these improvements have re-
luired large expenditures and caused
he operating expenses of the system to
,e unusually high.
The new company has acquired a line
attending to the timber forests Of east
Texas, is now engaged in developing
Oklahoma and Indian Territory, has
in the completion of a line
southeastern New Mexico,
which connects with the Panhandle ex-
ension Of the Atchison: has acquired
he Atlantic & Pacific railroad, as above !
and leased for a term of 900