New-York tribune., 1907-10-08
PRESIDENT RIPLEY ON CREDIT,
Public Attitude Will Change, He Says
Now Roads Must Cnr+aiI

N ms annual report TO the shareholders of tre
AlchlSoh' Iopeka d Santa Fe Railway Compan nv
|Iesoent Ripley refers as follows to the rate re
onction legislation in various states addfno .,,.
under existing conditions the Atchison roar,ao-
ment mas decided to postpone certain extension
projects: A'0ii-oii
"a otoer 10 enable the railway companies of the
United States TO furnish the sdditonaI traps1or+a
ZION facilities required by the rand pro,y,h - -
country in population and business activity II min
De necessary TO expend many hundred millions of
NOi@is OF aoaluonal capital The power of The
IaWay companies TO obtain this additional canitaI
mas Deen greatly impaired by loss of conAdarca
OF investors in the stability and security of rsu
Toao investments. and this loss Of confidence r.
5 cAuseo IN great measure by the unfrfen5J,,
StaIUoe OF large part of the public toward The
.ii%ay companies and by the arbitrary action ~
iegIsiatures and railway commissions IN re5,,a,
rates and imposing burdengome restr;c+io < 1<.-'s
"iphout investigation or consideration Of the ~
sequences The public, apparently has faua5 =.
appreciate that capital invested in RAILWAYS I'LL
very Hiooerate returns having regard TO the Dro
N3liihg rates OF interest and to the profits ,,non
capital employed in other kinds of bIs,rass - =
the public also has failed To reroo,,-o 80 anu
"hoie country is interested in nnaintairir 81
panies. ANYWAY COM
re" companies in the United States have hoo,,
more prosperous than your comnanv W I'll
during the year ended June 30 1907 1,,biob - ', .,
AhosI prosperous year in its history net aarp;o
averaged out 65 per cent on the entire canit.rt
tioh Which is believed TO be rot in excees 90 -
COST OF reproducing your company's pronarties -
tie pieseht time Interest and dividend nay,,ata
Aor me year averaged less than 46 per cer+ -
your coinpanys bonds and stocks For +b -
zen years the average net earnings were b,,t Z oo
per cent on the entire capitalization and the ave.
age interest and dividend payments were hut . =
PR cent on the bonds and stocks Even tbo.o -
sui1s could be obtained only through tho a,,,z,
tu4e ol enormous sums for the construction 20 -
lsois ana Tor improvements and additiono,
equipment During the last ten years the s,,,s -
e21lehued py your company for improvements .1
aooiuonal equipment and for new conetrno.ta
"ihout counting further large sums exnendad a.
purchasing previously constructed branches -
extensions amounted to more than st1o ooo 90
~HHe me aggregate sums paid 10 the holdors s
than SIS 100000 10 less
~ IS hoped and believed that the public ,v,,, Co.
ieaiize mat Its recent attitude toward ro;Is
companies IN general has not been iust % 49,
seO0Ahooers ard bondholdeTs. and also that ,,rIa
me He cohhdence CT investors in the security ava 81
S-l''y oi railway investments is restored q ,,,
-ipoSsiole 10 obtain the additional rou,
"a ISeli.ues which are necessary to the deve,o,,
% the country Under existing conditions -
SVuI directors have deemed IL rr,,dar+ - -
peHu various extension projects which were conto,,
f.aoeu' ana 10 limit the company's capitaI e,o,,5i
.1ieS 10 the completion OF improvements 70 -,
'4S company IS already committed NH