The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1906-08-31
RlPLEY'S LETTER
President RipIey's Open Letter
to the People
"To the People of Kansas.

"Since the publication OF my first
letterI have received very large
number of communications, of
which about one-half are in ap-
proval, one. quarter in criticism and
the rest asking for information.
'sFinding it out of the question to
answer each letter, l have decided
to answer all at once, so far as is
practicable.
"Those who take issue with the
first letter mainly dwell on these
points.
"FGfst. Alleged over capitaliza-
ton.
"Second. The taxation of rail-
way property.
"Third. The issue of free passes.
"Fourth. The alleged interfer-
ence of the railroad in politics.
GAS to the first: I stated that
the Santa Fe was worth all it is
capitalized for. I am asked If the
stockholders who bought the stock
ten years ago, at $I3 a share, have
not made money. Of course they
have, but has that anything to do
with the casef They had courage
enough to buy an interest in dis
credited concern, just emerging
from bankruptcy-only few had
the courage to do it.
"The great bulk of our common
stock was held by those who owned
it when the bankruptcy occurred;
who held It throughout the receiver
ship and who paid an assessment of
$40 per share in cash in order 10
keep it. How about those people,
most of whom paid par or more for
the stocks in the 8os. and who not
only got no returns between 1889
and 1899, but paid an assessment
besldes2 Among the letters re-
ceived is one from which quote as
follows:
s"'On March II, 1889, l bought
SaSAa Fe stock, paying SIS for e>ch
snare. On July II, 1895, | paid on
each.fhare of stock cash assess
ment of $40. Fifty-fve dollars,
with interest at 6 per cent, COM
pound annually, for seventeen years
amounts to $I47.o5, and $40 com
pounded at the same rate for eleven
years amounts to $500 and there
has been no time in the last seven
teen years thatI could not COM
pound at that rate semi. annually in
stead of annually. My stock should
oday represent to me SI66.85
per share. l have received on each
share dividends to the amount OF
S2I.5o. Deducting this from the
above amount would leave each
share standing me at sI45.35. The
stock is selling at sos, and l am
loser of $sa.3s on each share. And
yet, according to the Topeka]
Capital, because stock sold at SI3
I eightyears ago, l am not a loser at
all, but am gamer by 800 per cent.
No doubt but that most of the stock
holders stand about in the same
position l do.
is NOT OVER CAPITALIZED
"The above letter is from a citi
zen of Kansas whom do not know.
But he was fortunate in only having
paid SIS per share; many of the
present stockholders paid fIao.
al repeat that, whether.we con-
slider what the property has cost in,
cluding in the cost the interest on
investments or whether we consider
its reproduction value, it is not over
capitalized.
"Second, Taxation: The Santa Fe
d-sdies to pay Its fair share of the
taxes levied for the support Of the
state; it will not be heard to MUIR
muir so long as its property is asses
sed at the same proportion of its
real vIelue as is the property of other
citizens. There is no reason why
il should be favored in this respect
on the one hand or oppressed on the
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