Free press. [volume] (Hays, Kan.) 1888-1908, 1906-08-25
PRIEST. RIPLErS ANSWER.
ANOTHER OPEN LETTER TO THE
PEOPLE OF KANSAS.
Railroad Taxation, Passes, State Pol
tics and Capital Stock Values
Are Discussed.
TO THE PEOPLE OF KANSAS:


ing for information.
Finding 1t out of the question to an
swer each letter. 1 have decided to
answer all at once SO far as is prac-
ticable.
Those who take issue with the first
letter mainly dwell on these points:
1. Alleged over.capitalization.
2. The taxation of railway property.
3. The issue of free passes.
4. The alleged interference of the
railroad in politics.
AS to the first: l stated that the
Santa Fe was worth all it is capital
lied for. l am asked If the stock
holders who bought the stock ten
years ago at. say, $500 a share. have
not made money. OF course they
have, but has that anything to do with
the case? They had courage enough
to buy an interest in a discredited
concern, just emerging from bank
ruptcy-only a few had the courage
to do it. The great bulk of our COM
mon stock was held by those who
owned it when the bankruptcy oc-
Cured; who held it throughout the
receivership and who paid an assess
ment of $1,000 per share in cash in
order to keep it. How about those
people, most of whom paid par or
more for the stock in the SOS, and
who not only got no returns between
1889 and 1899, but paid an assessment
besides?
Among the letters received is one
from which l quose as follows:
"On March IL, 1889, bought San
ia Fe stock, paying S55 for each
share. On July IL, 1895, l paid on
each share of stock a cash assess
ment of SO. Fffty-five dollars, with
interest at six per cent. compounded
annually for seventeen years,
amounts to $147.95, and ten dollars
compounded at the same rate for
eleven years amounts to $3.50. And
there has been no time in the last
seventeen years that could not
compound at that rate semi-annualIy
instead of annually. My stock should
to-day represent to me S166.S5 per
share. / have received on each share
dividends to the amount of $21.50.
Deducting this from the above
amount would leave each share
standing me at $145.35. The stock is
selling at 80, and 1 am a loser of
$52.35 on each share. And yet, &C
cording to the [Topeka] Capital, be
cause stock sold at Is eight years ago,
am not loser at all, but am gamer
by 800 per cent. No doubt but that
most of the stockholders stand about
in the same position l do"
The LSove letter is from a citizen
of Kansas whom 1 do not know and
never heard of before, but he was for
tunate in only having paid $55 per
share-meny of the present stockhold-
ers paid $12O.
1 repeat that, whether we consider
what the property has cost INCLUDING
in the cost the interest on invest
ment), or whether we consider its re-
production value it is not over-capital-
lied.
Second. taxation: The Santa Fe
desires to pay its fair share of the
taxes levied for the support of the
state; it will not be beard to murmur
so long as its property is assessed at
the same proportion Of Its real value
as is the property of other citizens;
there is no reason why it should be
favored in this respect on the one
hand or oppressed on the other. q
may say that, in my opinion, strict
and honest application of this prin-
ciple would considerably reduce the
taxes we now pay.)
Third, as to passes: It is almost
universal custom in every part of the
country to transport free of charge
national, state and county officers; it
was originally meant as a courtesy,
and l have never felt that it gave the
railroad any claim on the conscience
of the official receiving it, nor have
l known OF any case where a legiS-
lator has voted or been expected to
vote against his convictions because
of holding a pass. If the people of
Kansas desire that this courtesy shall
cease to be extended to their officers,
there will be no objection raised by
this company. But the prohibition of
passes to other than railway employees
will not materially increase the pas
senger receipts.
Fourth, the railroad in politics:
We have the same interest in good
government as has any other citizen
and the same right to display that in
terest. AS the largest corporation in
the state and the largest tax payer
we have vital interest in sane and
conservative legislation-and when
| (as has too often been the case) there
| 10 OdA6CA Nietl lLS Sl1lS VIII U0 swept
off its feet by appeal to passion and
prejudice made by designing dema-
| gogues for their own personal ends, it
becomes a duty to oppose those men,
by fair and legal means-in such
cases, and in such cases only, will the
Santa Fe be found in politics. Indi-
| vfdual employees are unrestricted;
they may hold and express such views
as they think proper, but their action
Is not TO be taken as that of the com,
pany, nor is the latter responsible for
their political opinions or utterances.
| 1 realize fully that such prosperity
as the Santa Fe has enjoyed is due
largely to the energy and thrift of the
Kansas people. but they should also
recognize that We have done our
share. Each is necessary to the vel
fare of the other; and if, in the last
decade there has been any good work
done in the state. or for the state, in
which the Santa Fe has failed to do
Its rart. and more than it's part, am
much mistaken.
(Signed) E. P RIPLEY.
President a. T. & S. F. Ry. So.
Chicago, Aug. 81. 1906.
Philosophy from Kansas.