The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-12-08
ROAD TO PAY CASH
Santa Fe will Buy Advertising
Space For Money.
wilt Discontinue Practice of
Exchanging Transportation.
w. j. BLACK EXPLAINS.
Says Annual Expenditure in
Newspapers Will BE 100000.
Initiative Taken in West =
Other Roads to Follow.
w. j. BLACK EXPLAINS.


road, that beginning January /. 1907,
the Santa Fe railroad will pay for all
advertising in newspapers. magazines,
and on bill boards and elsewhere. in
cash rather than in transporta ton
In accordance with this decision of
the officials of the Santa Fe railroad,
]. NJ. Cornell. general passenger agent
of the Santa Fe at Topeka, is today
sending out the following circular let
ter to all publishers with whom the
company has contracts for the ex-
change Of transportation for advertis-
isg OF various kinds:
ITO the Publisher:
Beginning January 1, 1907. we will
discontinue issuing transportation in
exchange for advertising and will
thereafter pay cash for all advertising
/ space required by US.
This action is taken by the Santa
/ F'e management in order to fully com
ply with the amended interstate COM.
nerce~ act.
While said act does not prohibit is
suing free transportation locally with
in a state. such state transportation
might Of issued0 be used for inter-
state journeys contrary to law. Hence
the necessity for placing all con-
ira cts on a strictly cash basis.
Please, therefore. do not publish
any advertisements for this comPNlny
after December 81 1906, unless Au-
thorized to do so by the terms of a
new contract providing for cash set
tleJnent.
kindly favor us with your lowest
cash commercial rates. for both dis
play and local readers. covering the
period up to June 30, 1907-dlling in
attached slip, detaching and mailing
same TO the Undersigned. The reason
ahlenesS Of your rates VIII have con-
sidera Bile bearing on whether or not
we can afford to use your paper and
to what extent
local time tables is essentially a matter
of news, same will not be paid for as
advertising. Should you continue TO
publish such time tables as news, our
agent will gladly furnish corrections
When changes occur.
Under the terms of present con-
tract, we are receiving free copies of
your paper for checking advertise
tract being made, you continue fur
nishing such copies. 1t is understood
they are sent complimentary"
The announcement made today places
having taken the initiative in the mat
ter of the PRONUNCIATION of this policy
which Mr.. Black declared he believed
would be followed by the other large
railway systems.
Il believe that the practice of buy
ing all the advertising that the rail-
roads desire and paying for the same in
cash Will come to be universal IN every
locality in the United States" said Mr..
Black, who is in Topeka today on bus
mess, having stopped Off here on his
return from a trip to Colorado.
las a matter of fact he continued.
'it is no rev idea. The railroads. or
rather a few of the larger railroads,
have considered such a move as this
doubtless it would have come sooner or
later, regardless of the fact that the
new interstate railroad law makes 1T
necessary
There has been a growing demand
on the part of newspaper publishers to
bring the business relations between
business like basis. And l fully be-
lieve that within a short time, when
the details of the plan as mapped out
are all worked out, the editors and
west will declare that the plan is a
good one and that they will like 1t bet
ter than the old plan
The Santa Fe railroad now spends
$3.50, 600 annually in cash in its adver-
Using account. In addition to the issu
ance of transportation in exchange for
some forms Of advertising. This cash
expenditure is for literature, PAM
phlets and folders describing the vari-
Gus localities along the lines of the road.
and in bill board, magazine and news
paper advertising in the larger cities
where the railroad desires more adver-
Using space than the papers care to
give in exchange for transportation.
The policy of paying cash for adj
vertising in every newspaper and per-
iodical we estimate will largely in
crease the cash advertising apprOpria-
ton The increase will be not less than
an additional annual expenditure Of
$3.50. 900. and possibly more. so that the
total annual expenditure for advertis-
ing, to be paid in cash. will be a least
$500, 600. and this may possibly run up
as high as half million dollars
I'VE were largely guided in making !
this decision on account of the peculiar
position that the Santa Fe railroad oc-
cupies- The interstate act applies only
on interstate affairs. except in the ter
IitOrieS of Oklahoma, Indian TERRITORY !
Arizona and New Mexico, where the /
federal law applies in the same man
ner as though it was a state law. SO
If we had decided to continue contracts !
with newspapers for advertising in ex-
change for transportation to be used |
wholly within the state for which it |
was issued, we would be in the position |
of carrying out relations with publish |
ers in some states that we could not /
carry out in other states
THE interstate commerce commits |
the law holding that the law forbfds the |
issuance of interstate transportation |
for anything but money, thereby for !
bidding the roads from entering into |
contracts to exchange commodities |
with the newspapers even on a strict |
dollars and cents basis along book ac-
count lines.
The interstate commerce commits
sion also holds that interstate trans /
portation, If used in payment of a por- /
ton OF an interstate trip constitutes a l
violation of the law.
consequently we came to the con- |
clusion that the only sensible and |
businesslike method Of handling the |