Hutchinson gazette., 1901-05-09
That Railroad Stock.

That Railroad Stock,
The matter OF the disposition Of the
railroad stock held by the various town
ships and the counties which voted bonds
for the construction OF the c. K, & West
ern, better known as the Kinsley branch
OF the Santa Fe, Is still about where it
was couple OF weeks ago It may be
perhaps that the position Of the railroad
company Is a triAe better understood
than it was then, and better under
standing Of its position is not reassuring.
AS well as we understand It, It Is about
as follows; The rolling stock, the road
beds and right Of way and all the prop
erty Of the c, X, & w. railway has been
sold to the Santa Fe, The old c, X, &
w. corporation now owns nothing but
its name and corporate seal. Now it
offers to pay Its stock holders, that is the
county and township stock holders Of
the it offers to pay them FIVE
cents on the dollar, with the intimation
that as the company no longer has any
property represented by the stock, they
had better take that than nothing,
But the railroad OF course makes other
claims, The road was soon after its
construction mortgaged to the Santa Fe
for an amount very largely in excess Of
its value. The latter road did not wish
to operate the read as one seperate from
the Santa Fe on account Of the great ex-
pense, Therefore they bought it, The
ordinary course for the Santa Fe TO pur-
sue in getting hold Of the road would
have been to have forclosed, But that
would have been expensive, Then too
they explain that as the road would
have sold for much less than the amount
of the mortgage the stock holders would
have received nothing at all. So they
preferred to buy the road and pay the
stockholders the FIVE percent for their
stock
But there is still another chapter, 1t
was consummated in the late unlamented
Legislature, Prior to the passage of a
certain law at that time the townships
and counties and other divisions hold
ing stock in these railroads could not
sell or dispose Of the same without an
affirmative vote Of two thirds Of the vot-
ers Of such township, county or other
division Of territory. But the last legis-
lature in order to accommodate the rail
roads changed all this procedure and
made it possible for the township boards
to dispose Of the stock and close up the
whole matter as they should see fit.
That legislature let pass no opportu'
nifty to get whack at the power Of the
people to do business for themselves.
So now the railroads have got the set
tlement of the thing into the hands of
the township boards whom they think
they can handle easier than they could
the whole people of the township, they
are at work for settlement,
County Attorney Taylor, in company
with T. w, Mosely and A. c. Dyer
county attorneys Of Stafford and Ed
wards counties respectively, spent con-
siderable time in. Topeka investigating
the matter The sum Of Mr.. Taylor's
report is that as long as the counties and
townships hold the stock they are in po-
stion to force the railroads to live up to
certain contract agreements with regard
to the operation of the roads, the main
tenance Of stations, etc. But If they
sell their stock they forfeit all these
rights, and the railroads can operate as
hey please, The stock is reported 10
be worthless,
In this county it is not probable that
the railroad would change its operation
much If the stock were sold, for il is a
good paying road here, and doing good
business. What the roads are evidently
after mainly is to deal with the town
ships and counties along some of the
little jerkwater lines that do not pay for
their keep. If they could get hold Of
this stock, if the judgment of the county
attorney is correct, they could tear up
the tracks and stop operations If they
wished.
However it will be good plan for the
county and the townships to yet go ex-
ceeding slow in the matter Of dealing
with the railroad. No one known what
a deal with a big corporation means.
1t may be very plausible on its face and
be full of fair stpulations, not one Of
which will ever be fulfilled.
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