The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-08-12
Santa Fe Gross Earnings
Double in Six Years.
Some Interesting Financial
Points About the Company.
NET EARNINGS FELL.
Due to Maintenance and Inter-
est on Debentures.
Common Stock Earned rs Per
Cent Last Year.
NET EARNINGS FELL.

In the last six years the Santa Fe
road has doubled its gross earnings and
has more than tripled its net earnings.
In the same time it has increased its
mileage by one-fourth and its interest
charges by one-half.
Gross earnings of the system for 1897
were $50, 621, 23O. while for the year end
ed June 30 last they had risen to s62,-
S50,39 In the same time net earnings
increased from $5.S06. sos to $21. 793, 1862.
Expenses increased in the same time
from $24s14,425 to S4O,446. 4S4 and the
mileage operated from 6,443 to S,003
miles.
The gain in gross earnings. compared
with the gain in mileage indicates how
business along the Atchison lines has
grown in the last six years. OF every
dollar gained in gross business the
MANAGEMENT has diverted one-half to
net earnings.
The enormous gain in net earnings
has been accomplished by economies in
conducting transportation. made posi-
BILE by the gain in traffic density and
by the expenditure of millions of dollars
upon the property. The following table
showing some statistics from the reports
of 1902 and 1897 will illustrate how the
gain in net earnings mas DeGH DldQt.
Year 19o2-Total maintenance per mile,
stsg2: earnings per train mile. S2.53; tons
per train mile. ZN. per cent cond. trans. to
gross earnings. 81.
Year 1S97-'Total maintenance per mile,
81 500. earnings per train mile. Sl-JJ, tons
per train mile. 40; per cent cond. trans. TO
Increase total maintenance per mile. 1913:
increase earnings per train mile, $L@; in
crease tons per train mile. 1Ol: decrease
per cent cond trans to gross earnings, rs.
The effect Of this tremendous growth in
the business Of the system upon the shares
is SHOWN in the following table;
1903 (estD . so 949. 962 s.. 10000 $13.743 1852
1881 ...........s 6.O61 .S04 614s.23S 's6 934
Increase ...a6Ss2. s5S ss14s.2sS a3.ss .S96
Increase .~.... 2IS.59o 1860 .-.....-.-.
The statement for the last fiscal year
shows about rs per cent earned on the
common stocks without allowing for the
sinking fund on the serial debentures-
This compares with SO per cent earnings
on the common in the previous year.
The decrease in share earnings ac-
companies an increase Of $3,215, 900 in
gross earnings and was the result Of
heavier operating expenses and fixed
charges.
The increase in expenses was $685.
600 or more than the increase in gross.
OF this amount a director states that
abou. 81 500. 600 was owing to increased
maintenance OUTLAWS. The real earnings
of tie common, therefore, as compared
with last year, were much larger than
the companys statement indicates. As
surting that $500 600 OF the increase in
maintenance was occasioned by a heaV-
Ter movement of traffic. it is clear that
$4,000, 600 of profits on last years basis
has been diverted to betterments. The
real earnings on the common then were
81 per cent, or about the same as in
1b01-02
The increase in fixed charges is due
principally to the fact that in the fiscal
year just closed the interest on the ser
ial debentures had run a full twelve
months. while in the previous year il
had run only five months.
In the foregoing estimate of share
earnings no deduction has been made
for $500, 900 to be credited to the sink
ing fund on the serial debentures be-
cause it does not appear that thai
charge must necessarily come from
earnings. The company has $4,000, 00t
general mortgage bonds issuable every
year which may be used to redeem the
debentures as they mature.