The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-07-22
LAW is PERSECUTION
President e. p. Ripley Says Govern
ment Ownership Is Better.

According to a letter written by Pres
ident E. p. Ripley of the santa re,
and made public at Chicago. state ana
national regulation OF rallroaus h"S
been persecution"
Give us a square deal-a chance 10
nve-or else let the government take
us, because present conditions are mn
possible" says Mr.. Ripley, he .con-
tinues that the present conditions, un-
der which the railroads revenues are
limited their expenses increased. ana
their administrations "meddled witn'
cannot long continue.
at am not opposing proper govern
mont suneryision," declared Mr.. Rip
ley, in the letter, but we have more
than that"
The letter is one in reply to a plea
of II. c. Barlow, executive director OF
the Chicago Association OF Commerce
against an increase in freight rates.
Mr.. Ripley's letter follows:
1.-THE Atchison company has been in
existence something over IL years, our
ing which time its owners (stocK anu
bondholders) have received an average
of about per cent on its capitalization
of approximately 500 millions, and
there is a book surplus of about 20
millions, which is equal to ABOUT
per cent more. Mr.. Barlow thinks TINS
is a wonderful showing and asks what
has been done with the gigantic sur
plus
eff one of his constituents having
capital of $50 900 had in IL years been
able to take $4,000 out of the business
for dividends and have surplus OF
81 900, would he consider such surplus
'gigantic?' The proportions are the
same in both cases.
"But in answer to Mr.. Barlow's ques-
, ton may say that this gigantic sur
plus has every cent of it, and over
hundred million of borrowed money
besides. been put into improvements
and batterments In the effort to re-
duce costs and afford the public better
facilities.
"A year ago our critics were asking
why we did not spend money faster
why we did not double our investment;
why we could not furnish enough
track, enough power, enough cars. Now
they ask why we did not keep our
money and say that We ought to have
foreseen the lean period!
The facts are that even on tne
enormous business of last year the
margin Of profit made by the railroads
in general was not large enough Tor
safety, and even with continuance
of heavy traffic an increase in rates
would be necessary II the roads are to
retain their credit and ability to ere
ate the facilities which the public de-
mands.
THE Atchison is surpassed as to its
physical condition by few roads in the
y,
the amount of the gigantic surplus to
excellent advantage In creating facili-
ties for the use of the public and as
much more in supplying transportation
to regions that badly need 1t. But with
governmental regulation both state
and national, which is wholly directed
towards limiting railroad revenues and
Increasing railroad expenses, 1t Is small
wonder that 1t is hard to borrow
money.
"The simple fact is that capital has
been content with smaller returns in
the railroad business than In any other
venture because of its supposed Sc !
curity That security has been and Is |
being threatened and railroads have
been and are being singled out for |
treatment which is called regulation,
but which is really persecution. And
the public, which Is after all the gov
eminent, Will soon have to decide |
whether it will permit the railroads to
that earned In other enterprises or
whether 1t will operate them by pub
lie agencies.
THE present condition under which
state and national commissions limit
our revenues. order increases In our
expenses, NEEDLE with our administra-
ton even to the most petty matters
in short, usurp all the functions OF the
directors except the raising of money |
and the meeting of bills-cannot long |
continue.
IT am not opposing proper govern |
ment supervision, but We have much |
more than that, and II it be true, as
I devoutly believe, that the railroad
should not be In politics. is it not |
equally true that politics should not
be in the railroad? Yet the way to
political perferment Is to devise some
new scheme to harass the railroad and
In many places we are subject to the
.whims and fancies of officials select
ed not for business ability or common
sense, but for purely political reasons.
"Give us a square dear-a chance to
live-or else let the government take