The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-06-30
RAILROAD news.
Frisco Road Is the Talk of Mon
ey Centers.
Future OF This Road Is a Matter
OF Speculation.
MAY BE RECEIVER.
BE RECEIVER.
Road Is Considered a Burden on
Rock Island.
Other Items of Interest in
Railway Circles.

Financial circles all over the county
are discussing the Frisco railway.
strange as it may seem the Frisco is
regarded as burden rather than a
help to the Rock Island. There is be-
lieved to be possibility of a separa-
ton Of the two lines. This would real
ly. be of an advantage to Frisco terri
tory The Frisco has about 81, zoe. 900
interest to meet on July 1. It is under
stood that this will be met Neverthe-
less the road is in close quarters and
the talk of resumption of work on
the new shops can have no foundation.
=. In quarters usually well informed it
is said that the Frisco, which is the
weak link in the chain, will last until
december. when the 100000 notes fall
que, and after that it is not known
what VIII happen. The Rock Island
would like to get rid of the Frisco, but
that is not an easy task because Of
the involved makeup of the Rock Is
land system
All of the stock of the old Chicago,
ROCK Island and Pacific railway is
owned by the Chicago, Rock Island and
Pacific railroad of Iowa. and the last
named company is owned by the Rock
Island corporation of New Jersey,
which corporation holds all but $780,
600 of the $4,000. 900 common stock of
the Frisco AS the Frisco stock was ac-
quired by an exchange of $50 in COM
mon stock of the Rock Island company
and $50 in the per cent bonds of the
Chicago, Rock Island and Pacific Rail-
road company, the New Jersey and
Iowa corporations are both involved in
the ownership of the Frisco. The per
cent bonds of the Chicago. Rock Island
and Pacific railroad are secured by de-
post of the Frisco stock, but the col
lateral could not be released without
declaring the Iowa company insolvent,
and the Iowa company holds the most
valuable asset of all the stock of the
old Rock Island Railway company.
One way out of the trouble would be to
have the Frisco ask for a receiver on
its own account
B. L. Winchell. president of the Chi
cago, Rock Island and Pacific railway.
was at the New York offices of the
company this week. He is an optimist
both as to the future of the country
and the railroads.
lions are still most encouraging and
that farmers are confidently expecting
a large yield -
The west had little too much rain
for its good" he said, but the wet
weather has been followed by a week
of warm sunshine, and estimates of
crop damage were generally exaggerat-
ed. Wheat is making an excellent
showing. Oklahoma will ship between
Z 200 and 5000 cars of grain more than
she did last year, and you can see
what this means to the carriers. 1t is
too early to form a true idea of the
progress of cotton, but 1 think the crop
will be a good one.
The west only needs a year Of good
harvests to recover entirely from the
business depression. Things are get
ting more cheerful out there now. Idle
is being taken from the
yards, and the total number of unusued
freight cars Is fast being diminished,
it is hard to predict when the
roads will have all their rolling stock
in use again. Our company, for exam
pie. had orders yesterday for 1000 more
cars than 1t did a week ago"
Mr.. Winchell believes that the future
Will prove kinder to the railroads than
recent years. THE sentiment of the
various legislatures is changing, or has
he says. 1.-THE legislators see
now that the people are not back of
them in any unfair law making. Peo-
pie generally look upon the railroads
as wealthy corporations able to COM
mand millions at any time. They are
inclined to forget that we are only dis
tributOrs of wealth-that we collect the
dimes and quarters from thousands of
people and pay the sums thus received
directly back for supplies. for labor,
etc. The railroads are doing business
on a very small margin of profit. To a
legislator an enforced cut in rates from
10 cents to II cents means a saving
of two cents; to the railroad it means
a loss of 10 per cent in cross earnings,
and that is a big thing in the aggre-
gate.
"A large part of the Rock Islands
present business consists of hauling
materials for other railroads. We are
handling a great amount of rails, ties,
equipment and lumber. We count on
the business which the crops will bring
us keeping our cars in use until there
Is a more noticeable resumption in
buying. This after all fur
nishes the largest share of freight
traffic When car shops, foundries and
steel mills are busy with orders, the
railroads are kept busy hauling ore.
coal, lumber and other raw materials
to the factories. The most striking
was that it was largely brought about
by the orders put in by roads for more
cars.
1.-The railroads have not engineered
this depression nor done anything will
Ingly to aggravate it. No company
closes down it's shops or let's expert
enced and valuable employees go will
ingly. but only when measures of
economy require il. The Rock Island
has had to put its shops on part time,
but this should not continue long"
DOUBLE TRACK LINE.