The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-12
w. b. Jansen Talks of Proposed
Railroad Legislation.
How Restriction of Capitalize
tion Would Operate.
STOP IMPROVEMENTS.
Would Have No Money to Carry
Out Plans.
Place Santa Fe at Disadvantage
With Competitors.

eff a bill now pending in the Kan
sas legislature seeking to regulate ana
restrict railway capitalization, should
be passed in its present form" said w.
B. Jansen, fourth vice president of the
Atchison, Topeka & Santa F'e Railway
company, today to a reporter for the
State Journal ''you would have Kansas
in the position of saying to the Santa
Fe on one hand, you must provide bet
ter and more mileage and more ade-
Quate transportation facilities that are
demanded by the growth and develop
ment of business and on the otner
hand saying to US, you cannot issue
any additional stocks or bonds to meet
this expense because maybe it might
constitute over-capitalization.
Mr.. Jansen appeared before the Judic-
larry committee of the house OF repre-
sentatives last night to tell that body
why it is not advisable to pass the bill
that has been introduced in the house
seeking to place the matter of increases
in railway capital in the hands of the
board of railway commissioners:
Gardner Lathrop, general solicitor, OF
Chicago was also present and address
ed the committee
Il am told this morning" continued
Mr.. Jansen, that as result OF our
conference last night the committee
has by a large majority, disapproved OF
this class of legislation as being I'M
necessary. unwise and to the decided
disadvantage of the Kansas railroads
1T is possible that minority report
signed by two or three persons VIII be
made to the house recommending the
bill. 1 hope this will not be true, be-
cause 1 presume that 1 would not be
allowed to argue the matter before the
house in the committee of the whole,
and there would be no adequate man
ner in which the matter could be pre-
scented to the members of the house"
II want it thoroughly understood by
the people of Kansas" said Mr.. jan
sen, that the responsibility will lie
with the legislature. il restrictive leg
islation is passed and it becomes nee
essary for the Santa Fe to call a halt
in the development of extensions plan
ned. double track work. improvement
of maintenance of way and purchases
of new equipment
THE Santa Fe is the only large
railway existing under a Kansas char
ter and will place US at a decided dis
advantage with our competitors.
which are organized under the laws of
other states and which are not sub
ject to such regulation and restriction
thus enabling our competitors to go on
improving their properties and plac-
ing themselves in better condition to
handle the traffic Such legislation
would be of decided help to the rivals
of the Atchison road and, if anything.
would make it easier for outside COM
panies to obtain control of it,
Not a Joking Matter.
1T is no joking matter, the situation
that we face. If the net earnings are
as great for the fiscal year ending
next June they were last year, the
surplus that will be available for CAPT.
tai improvement will not be sufficient
to complete work that is already I'M
der way, to say nothing of paying for
the new equipment ordered.
while the road is far from being
near bankruptcy, it is our hope to
complete about three hundred miles of
extensions, from 200 to 800 miles of
double track and to add largely to the
rolling stock To carry out these
plans this year it is necessary that we
be able to market 25 millions of the
stocks or bonds authorized at our re-
cent meeting. With many other roads
after additional capital, the money
market is not in a favorable condition
and we hope to be ready to take ad-
vantage of the first favorable market,
which will be thwarted, if the propos-
ed legislation, should become law.
Investors will not take trouble to
investigate even, any security that
may have a legal blot, and this bill
will constitute just such a condition,
which will have the effect of turning
investors away from the proposed is
sue of Santa Fe securities.
Mr.. Whites bill requires a railroad
company desiring to increase its cap
ital stock or bonds to first make applf-
cation to the board of railroad COM
missioners, setting forth the object
and necessity of the additional capital
list of the property and franchises of
the corporation and the reasonable
value thereof, and to give such other
Information as may be required by the
board. Upon the filing of such an ap-
plicatton the raflrad commission is re-
Quired in such manner and according
to such rules as it may adopt to deter
mine the truthfulness of the applica-
ton and to find and determine the
reasonable value of the property and
franchises listed. A hearing is to be
y r~4x~-
when such investigation and deter
mination is had. Upon it's findings
the commission may grant, modify or
reject such application.
IF such a hearing is to be bona
fde hearing and not a mere farce it
will require many months of time. and
this bill, If enacted into law by intro
ducing an element of uncertainty in
should render them unmarketable.
because the findings of the board
would only be prima facie evidence of
the value of the properties and fran
chises listed and the validity of the
issues would depend upon the correct
ness of the findings of the board. In
the case of the Atchison 1t would be
an enormous undertaking on the part
of the board to value the entire prop
erty and assets of the railway COM
pany, involving, in addition to the val
uation of the Kansas property the
valuation of several thousands miles
of railroad outside of Kansas of ter
ninals III various remote parts of the
country, and of properties of numer-
Gus subsidiary corporations If the
work were done with care and reason
able accuracy it would take the time
of the commission constantly for a
great many months to the exclusion of
all other duties, yet when the valua-
ton was finished it would have no
substantial bearing upon the propriety
Of raising additional money by the is
sue of capital stock or bonds. The
great or little worth of the property
as 1t now stands throws no light upon
The question of how much money