Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1906-09-01
RIPLErS ANSWER.
ANOTHER OPEN LETTER TO THE
PEOPLE OF KANSAS.
Railroad Taxation, Passes, State Pol
itics and Capital Stock Values
Are Discussed.

letter / have received very large
number of communications, of which
about one-haf are in approval, one
quarter in criticism and the rest ask
ing for information
Finding it out of the question to an
swer each letter, I 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:
l. Alleged over-capitalization-
2. The taxation of railway property.
8. The issue of free passes
4. The alleged interference of the
railroad in politics
As to the first: 1 stated that the
Santa Fe was worth all it is capital
lied for. 1 am asked if the stock
holders who bought the stock ten
years ago at, say, $1,000 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-on1y 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 1 quote as follows:
''On March IL, 1889, 1 bought San
ia Fe stock, paying S55 for each
share. On July IL, 1895, 1 paid on
each share of stock a cash assess
ment of SO. F1fty-five dollars, with
interest at six per cent compounded
annually for seventeen years.
amounts to s147.95, 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 l could not
compound at that rate semi-annually
instead of annually My stock should
to-day represent to me S166.S5 per
share. 1 have received on each share
dividends to the amount of S21.50.
Deducting this from the above
amount would leave each share
standing me at s145-35. The stock is
selling at SO, and L am a loser OF
$52-35 on each share And yet, ac-
cording to the [Topeka1 Capital, be
cause stock sold at IS eight years ago,
am not a loser at all, but am gamer
by 300 per cent No doubt but that
most of the stockholders stand about
in the same position do"
The above letter is from a citizen
of Kansas whom I do not know and
never heard of before, but he was for
tunate in only having paid $55 per
share-many of the present stockhold-
ers paid s120-
I 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-capitaI-
lied.
Second, taxation: The Santa Fe
desires to pay it's fair share of the
taxes levied for the support of the
state; it will not be heard 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, a strict
and honest application of this prin-
cip1e would considerably reduce the
taxes we now pay-)
Third, as to passes:- 1t 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 1 have never felt that it gave the
railroad any claim on the conscience
of the official receiving it, nor have
/ known of any case where 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 a vital interest in sane and
conservative legislation-and when
Gas has too often been the easel there
is danger that the state will be swept
of its feet by appeal to passion and
prejudice made by designing dema-
gogues for their own personal ends, it
becomes 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-
v1dual 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