The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1901-10-08

demonstrated by the present condition
in Kansas and the adjacent territories
An enormous wheat crop must De
moved and the command of the terri
tory afforded by its numerous branches
secures to the road an abundant reVe-
nue., again fully establishing the WIS
dom of the concentration. theory 1t Is
evident, therefore, that the answer 10
the problem is the judicious application
of both ideass than which no road IN
the country affords q better example
than the Santa Fe.
Another suggestion is brought out by
a reference in the report to the ratio OF
operating expenses to earnings The
prominence given by those having to do
with railway operation to what is known
as the operating ratio, has been in
many cases productive of unfortunate
results Roads that have been able TO
show an operating ratio of less than so
per cent have been held up before the
world as models, whereas, nothing is easier
to understand than that such a showing
may be the result of the poorest kind of
management 1t is not the ratio of OPP
Grating expenses that is important; 1t is
the amount of net revenue left over for
dividends, taken in connection with the
amount spent for maintenance that tells
the story. Nor is it always possible to
show in actual figures just how much
has been sacrificed in the way of traffic
through the desire to improve the ''Op-
Grating ratio" Revenue on tonnage lost
is an indeterminate quantity, and while
those familiar with the circumstances
may be fully aware of the magnitude
of such loss, actual figures cannot be
given. The unfortunate part of this pro-
position is that in times of prosperity the
growth of traffic covers up all evidences
of losses from this source, and what is
actually an fll-advised policy is made
to appear as good management
From the fact that no mention of the
Transpacific trade is made in the re-
port, and from the additional fact that
public notice has been given of a new
arrangement to go into effect next Feb
ruary, it may be surmised that the con-
nection OF the Santa Fee with the steam
ship line operating from San Diego has
not been wholly satisfactory. However,
this may be, the new arrangement which
is stated in the press dispatches to be
in connection with the Pacific Mail,
promises a very much better return
than IS possible with an independent
line, at least in the near future If the
present facilities operating from Pacific
coast ports are adequate to the demand
of trade, it is q wise move to discourage
the introduction of other lines. There is
no doubt that in the not very distant
future, new steamship lines will have to
be added in order to accommodate the
growing Orient traffic, but until such
time comes the trade will be better
served and more profit will accrue to the
owners of the transportation lines by
maintaining the present status. That
the Santa Fe will eventually be an i'm
portant factor in this traffic, is self-evi-
dent, but that its mana cement does not
propose to be led into premature expen-
ditures in that line is also apparent
1t may not be out of place to congrat-
ulate the company upon having man
at the head of it's affairs who is a close
student of economics as applied to rail-
way operation. Railroading at the pres
ent date has progressed far beyond the
mere transportation of commodities
While not as yet formulated. a system
of scientific treatment is being develop
ed that win eventually express itself
ell n
are being superseded by a more en-
lightened policy, and 1t is no disparage-
ment to others to say that no road is be-
ing more greatly benefited by the
change than is the Santa Fe.