The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-08-15
RAILROAD NEWS.
Santa Fe Director Discusses
COmpany's Finances.
Has $l2,OOO,OOO Cash in It's
Golfers.
ABOUT FLOOD DAMAGE.
Estimated That Total Was Half
Million.
How the Property Has Been
Developed.
ABOUT FLOOD DAMAGE.

Chicago, Ill, Aug. 15.-In commenting
on the various reports of the present
financial condition of the Santa Fe road
and of its ability TO continue dividend
payments on the present basis a direc-
tor of the company says:
THE cost to the Santa Fe system of
the Mississippi River breaking over its
boundaries was about half a million
dollars, but where its waters ran TWEEN
ty-seven feet deep in June, Kansas corn
is now several feet high.
THE Santa Fe is not only in fine
physical condition, but has about S12,-
100000 cash in the banks and sl5,00000O
of available securities in its treasury;
most of them general mortgage As.
THE Santa Fe railroad is still IN
many peoples minds prairie road,
subject to floods and corn crop failures.
The greatest flood it has ever seen was
in June, and this at only pin point
on the map, or the prosperity, of the
company The Santa Fe is no longer
corn road: il lost its corn crop two
years ago, and you cannot find any de-
preston to mark that loss in the month
" reports of the cOmpany's earnings
The road could lose another corn crop
and still pay dividends on its common
stock, for it can shrink $10OOO,OOO IN
gross earnings and $5,0OO,000 in net be-
fore endangering its dividends.
when the company was reOrganized
in 1889 that reorganization was based
on gross earnings of $27,5000 900, which
were the earnings for the year ending
June 80. 1889. The net earnings were
IS, 10000.
EARNINGS MUCH LARGER.
AT the present time the gross earnings
of the road are well above S6O,OOO,OOO,
and the net earnings are well above $zo'-
OO0. 900; in fact. the net earnings are now
nearly as large as were the gross earn
ings fourteen years ago.
"The common stock is the same stock
today. in amount, as fourteen years ago,
and it then represented $50 per share OF
cash that had gone into the property
Since that time the company has eX-
pended for extensions and improvements
500 DOC. 900. or about 800 per share
santa Fe stock is today selling at
about the book value of fourteen years
ago before the reorganization scaled us
charges and there are no new securities
ahead of the stock today except Tor cash
expenditure and the interest charges
very low rate.
.'Tallx of undigested securities does not
apniv to those of the Santa Re. It's
stock was digested fifteen years ago;
and all of it's $30.000.000 equipment ana
Improvement notes, issued year and d
half ago. were long ago looseu III AANeSN
ment boxes. S.o+
that the syndicate taking tnese sSoy19'v az
of notes was closed up in rev moiltl So -
a profit, the last of the bonds having Deen
placed as investments IN the suOhS pOAeS
of financial institutions.
Il happen TO know this. not as a Inel meme.
of the syndicate. because il Is an unw1ittEln
law with the directors of the santa re
road that none of them shall be interested
in financial syndicates or Industries OF CON-
struction allied TO the coinpd ny , Dg' is
si.~ Of securities was lodged more Ihsn a
year ago. The road has no neeu OF nilai'S-
Ing of any kind at the present NM,
ONLY TROUBLE ON RATE QUESIION-
at sold these s3OOOOO 900 of notes exactly
at a 5 per cent basis and the PennsylNaLnl ana
railroad people compl AIMED a. W. W. HeTe Sc
,-erelv criticised at the time for selling
these bonds at as high as a per cent
basis but we got the money ana II mas
been earning good rates for us IN equ5lpII
ment and improvements ever since, ana l
think that many other roads nave ehNieu
-. "a According to the last annual report we
issued Santa Fe common stock Garner -.
Q $40 per cent. This year we snall earn
81 200 600 more in gross. but the net earn
ings will be slightly less Tor the Ieas1 g
that shall spend Two ana d ndlL ~ ma
lions more on our maintenance account ana
charge it all against expenses. me III N
creased cost of conducting Transportation
in net earnings will be by reason OF the
$500 COO lost in the Kansas hoods ana tue
increased charges TO MAINTENANCE ada a
had investment in any respect either IN the
nurchase of construction OF new lines OF
The ACQUISITION of oil territory in Calltor-
MIA. where, on some Of its lines it IS using
oil for fuel which costs It nothing, as ~
ov,ns its own oil fields and sells at profit
sufficient oil to give its locomotives fuel
for nothing. , -
.'The only trouble we can ever have on
the system so far as / can sec, IS over the
question of rates. The railroad commission
OF Texas has for years kept our raliIodu
rstes below what we think they ought to
nave been. but President Ripley recently
declared that he did not know but that the
companv was as well off in the end on
low rates as upon higher rates inviting
connection and destructive railroad wars.