The Dolores star., 1902-02-21


Total. ............. .2.57o,7oo sss,a7l.s2
This is all average tax permilc of 1929
for a narrow gauge road that has never
paid a single cent to the stockholders.
This railroad was built through the
efforts Of Otto Mears, "the pathfinder
of the San Juan" He put his money
in it with that of his friends, and COM
pleted the road in 1892. He was a man
who had great faith in the San Juan
country and believed in its future. He
recognized that the road would not pay
Immediately, but he was confident that
with its construction new business,
new mines, and an increasing popula-
ton would in time make the road not
only pay profits on its investment, but
in addition, the opening up of that sec
tion of the country would help the
State and all concerned
The old-timers in that country can
hardly forget the pride that Otto Mears
took in this his greatest venture. How
he invited the Western Colorado Con-
gress to take ride on his road, as his
guests, he furnishing two locomotives
and five coaches for the party, and
Everything went,n as the western ex-
preston goes.
However, this road cost more than
he figured on and he was borrower of
money on its completion, and the panic
of 1898 caused this pioneer of Colorado to
lose not only the railroad, but every
cent he had, trying to save the road
from bankruptcy.
The result was a receiver and re-
organization, and when the road was
returned to the stockholders in 1895
poor Mears was left out. He had made
his money in the San Juan by hard
knocks and had dropped it all in this
gamble that looked so good to him that
he played the limit.
Since 1855 this property has been
managed by as conservative and careful
man as we have in this country. A
man with vastly more experience in
traffic matters than such road sue
ceeds in getting when run as separate
venture.
The tariffs have been kept down to
point that while the fixed charges have
been met, there have been no dividends
paid to stockholders. The stock has
not cent of value except to those who
are willing to speculate upon the future
of the San Juan country.
The operations of that road for the
| fiscal year ending June 80, 1901, were
| the most successful in its existence and
were as follows:
Earnings from Rssisssaser q, siS "a i i
mail, express, ETC.. 4,Oo2.05
Total. ..,..,................. ssse. .592. .4s
Deduct operating expenses ......-.. 2s8. .7s0. n
Leaves net earnings gs...............So .So52, ,T49.n II
Out of these net earnings this road
paid the following amounts:
Interest on bonds s.................$1sO $50, 400 90
Insurance. ..-..-......-.......-.;. !68 q
Total ,........................... .s2ls. .4s2 u
This leaves surplus of S39, 255. 80
which was left in the treasury for
emergencies.
A collision that would destroy two
locomotives would have wiped out
every cent they had made in that most
prosperous year.
Is it the intention of the people fthe
San Juan to ruin the second holders of
the Rio Grande Southern as its unfor-
tunate original owner was ruined? Do
they stand back of their senators and
representatives in the legislature who
are trying to force this unjust tax upon
that companyP
If the Rio Grande Southern pays the
tax, that they would be "shy' Just
SIS, ,492.53 in the payment of their in.
| terest on bonds and not have cent of
surplus left. If that would be the case
it would mean another foreclosure and
reorganization caused directly by this
proposed taxation. 1t would mean the
practical destruction Of property built
for the purpose of developing the San
Juan country.
We write on this subject with n very
strong aif," connected with any proba-
bility of the tax being paid, because 1t
is SO Improbable that It Is out of the
question.
We know that the people themselves
will see the ridiculous position in which
itepnts them, and the state, in case they