The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-22
HEAR FROM RIPLEY
Doesn't See Why Santa Fe
Should Be Hampered.
Want to Use Money From Bonds
for BettermentS.
HURLEY BEFORE BOARD
Carr Taylor Asks Some Rather
Pointed Questions.
General Manager Says Money Is
for Double Tracks.
HURLEY BEFORE BOARD

/
office of the state board of railroad
commissioners until late Monday
| afternoon. the railroad commissioners
were unable to make any report to the
| legislature concerning the Santa F'e
stock and bond issue of one million
dollars which the legislature ordered
Investigated, on January 21, which
was the time set for the report.
The commissioners notified the leg
islature that the report would be made
this morning, and the report was
made this morning in accordance with
that agreement.
The principal feature of that report
is a copy of a telegram received Sun
day from President E. P. Ripley of the
Santa Fe. This telegram was sent
from French Lick, Ind, the celebrated
Carlo" of America.
President Ripley stated that the
stock was all to be used in betterments
of the property, and he said he
couldn't see why the company should
not be allowed to put new money into
its property if 1t so desired.
The report of the railroad commits
sioners consists simply of the copy of
two letters presented to the board, and
summary of some of the statements
made by Mr.. Hurley and Mr.. Smith.
Mr.. Hurley also presented an itemized
statement showing that $11,16S,2S4
worth of equipment had been pur-
chased last year, and is now in pro-
cess of delivery, and that $9.052,250
worth of equipment has been ordered
for 1907.
The statement is in part as follows:
''In compliance with the instruc-
tions contained in said resolution, the
board caused an investigation to be
made in accordance with the terms
thereof and begs leave TO submit the
following report:
"On the 21st inst, Mr.. W. r.
Smith, general solicitor for Kansas of
the Atchison, Topeka and Santa Fe
Railway company, and Mr.. J. Z. Hur-
ley. General Manager of said company
appeared before said board. There
upon Mr.. Smith presented to the
board a telegram from Mr.. E. P. Rip
ley, president of the Atchison Topeka
and Santa Fe railway company a copy
of which is as follows:
" 'French-Lick. Ind. Jan. 90.
w r. Smith, Topeka. Kan.
you can assure the commission
that every dollar of capital Increased
since the formation of present COM
pany represents a dollar invested in
property for the company's use also
that forty-three millions of earnings
have been put into it which are not |
represented in the capitalization. also
that it is not intended at any time to
add to capital account except as may |
be necessary to enable us to carry on |
our business and fulfill our duties to |
the public if the owners of our prop |
erty are willing to put up more sure |
ly the state should be the last party te
object. E. P. RIPLEY |
''N1r. Smith then presented to the |
board, a letter from w. B. Jensen |
fourth vice president of the Atchison |
Topeka and Santa Fe Railway com |
pany. copy of which is as follows:
Referring to the resolution passed |
by the Kansas house of representatives |
requesting through the state board of |
railroad commissioners information a. |
to the proposed increase in the capital |
stock and bonded Indebtedness of this
company:
~ enclose herewith copy of the |
call for the stockholders meeting to be |
held in Topeka on Wednesday, the 30th /
day of this month, and a copy of the
circular issued by President Ripley |
stockholders. which explains quite fully |
the necessities for and proposed use of |
the additional capital.
L have not seen an exact copy of the
resolution in question, but I gather the
impression from the newspaper COM
ments thereon. that it may be the belief |
of the members of the legislature that |
this company proposes to issue $9S, ,00O,-
900 additional capital stock and also
$9S 900 600 of new additional bonds. That |
this is not so will be reflected by the
circular hereto attached, from which |,
you will see that it Is either the inten-
ton to offer the stockholders the right |
to subscribe for the additional common
stock of the company or, should the
board so determine, to issue bonds to
stockholders convertible into common
stock, so that $9S. 100000 represents the
total intended increase in the capital
of the company. If stock is put out
there will be additional bonds, but
as yet the board of directors has not
determined just what will be done in
this respect
"I believe that within the last few
months it must have become more ap-
parent than ever to all thinking men
that the Atchison, Topeka and Santa
Fe Railway company, and most of the
other railway companies of this coun-
try, must make very large expenditures
for additional equipment and other ia
cilities for the proper handling of the
enormous business which is being done
of defraying the cost of new construc-
development of the country is not to be
retarded.
eff our stockholders vote to in.
crease the capital stock of the COM
pany, as has been recommended bv
the board of directors, 1t is not the in
tention of the board to immediateIv
put out the entire authorized increased
capital. but only sufficient at this time
$25,0U0. .000-to meet i'm
mediate demands; but we are paving
the way for additional capital for use
in the future as our necessities NAV
require. Much of the funds so to he
adding to the property of the company |
in the state Of Kansas ond