The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-12-29
Santa Fe's November Report
Makes Good Showing.
Operating Expenses Still on the
Increase.
NET EARNINGS LOWER.
100000 Decrease in Past Five
Months.
May FOreshadOw Changes in
Operating Department.

The November statement of the Atch-
ison. Topeka & Santa Fe railway sys-
tenn shows an increase in both gross and
net earnings despite a heavy increase
in operating expenses.
The statement for five months of the
official year to November 80 shows a
decrease, however. of more than $780,
600 in net earnings, although the gross
earnings increased more than $500, 900.
The decrease in net earnings as COM
pared with the same period in 1901 is
due to an increase of more than $1,000
600 in operating expenses, due in part to
increased mileage. The net earnings for
November, however. are more than 81
100000 while the net earnings for the
five months period are more than $1O,-
100000.
The heavy increase in Santa Fe oper-
ating expenses has been one of the
marked features of Santa F'e reports for
some time The earning of the road
have shown a satisfactory increase. ana
had the operating expenses been held
as low as in years past. the net would
have made a showing which would :'e
gratifying 10 the stockholders. The
stockholders want dividends, and Will
not be inclined to submit to the condl-
lions which decrease dividends unless
there is some very good reason for 1t.
The increase in the pay of many San
ia Fe employees will no doubt tend to in
crease operating expenses, but 1t would
hardly be possible that these increases
would take a material difference in the
November statement.
Stockholders will no doubt be inclined
to hold Third Vice President J. W. Ken
drick responsible for the increase in OPP
Grating expenses. as he is the head Of
the operating department. Whether or
not the attitude of the stockholders
would be justified can not be stated,
as there are no data made public which
explain in detail the cause of the in
creased operating expenses By some
the persistent monthly increase is taken
to foreshadOw a radical change in the
organization of the operating depart
ment. involving possibly the retirement
Of Mr.. Kendrick as its head.
This is not likely move. however, as
Mr. Kendrick is believed to have a
strong hold on the Santa Fe directors
and he certainly ranks high as an oper-
ating official There were rumOrs some
time ago that Mr.. Kendrick would re-
tire from the employ of the Santa Fe to
accept position as manager of the
British interests of the Westinghouse
Air Brake company. 1t twas reported
that the Westinghouse people offered
$4,000 a year for Mr.. Hendricks serv-
ices and for some time it was believed
that Mr.. Kendrick would accept He
finally decided to decline the offer and
stay with the Santa Fe, which would
indicate that he felt very secure in his
present position. The fact that he was
offered the position further indicates
that Mr. kendrick is very well thought
of by railway people.
The annual meeting of the Santa Fe
directors. a. which the officers of the
corporation will be elected, is to be held
In New York in January. If any change
IS 10 be made it will likely be made at
that time
The statements in detail are as fol-
lows: