The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-10-14
But ONE WAY OUT
Railroads Must Raise Rates Say
s. H. Clark.
A Missouri Pacific Off cial Dis.
cusses the Situation.
TRYING TO FIN UP.
Bad Track Being Repaired as
Fast as Possible.
Predicts a Gloomy Future for
Railroads in America.

The only way out of this situation
is to raise the rates. We must raise
| the rates. and it is only a question of
time till it will be done.''
This statement was made by S. H.
Clark, first vice president of the Mis-
souri, Pacific railway. who came all the
way from st. Louis with his assistant,
C. H. Middleton. for the purpose of
talking to the Kansas board of railroad
commissioners about the condition of
the Missouri Pacific track in Kansas.
They were accompanied to Topeka by
| Is. P. Waggener of Atchison.
Mr.. Clark proved himself good talk
er. He outtalked Commissioners Ryan
and Ryker, who were present to hear
| him. He discussed almost everything
| from the power of God in making corn
grow to the question of whether Frank
Ryan could pull spikes out of the ties
/ on the Central Branch with his bare
| hands. And on every subject he was
| entertaining and even dramatic.
The summary of Mr.. Clark's argu-
ment to the board was this:
1. The condition of the Missouri Pa
! cific tracks is bad. but not bad enough
| to be dangerous.
2 The Missouri Pacific is repairing
the bad places just as fast as it can.
| 3.
| spend all its Kansas income In excess
| of operating expenses and interest on
stock and bonds, in the Improvement of
| the Kansas road
| A. The railroad commissioners should
! not injure the credit of the road and
| possibly force it into the hands of a
| receiver, because the road is now try
| ing to negotiate the sale of more bonds
| from the proceeds of which it expects
| to put in $4,000 mile in improving the
T. 1.ol-e
/ There was a good deal of Mr.. Clark's
talk that sounded almost too good to
| be true.
i The general outcome of the confer
| ence was more delay and more time
for the Missouri Pacific. An arrange
/ ment was entered into by which such
of the members of the commission as
are able to do SO will go with MI
i Clark, or Mr.. Middleton. in about ten
days to make another inspection OF
the Central Branch. Commissioners
Ryan inspected the Central Branch
about week ago, but the Missouri Pa
cific officials figure that inspections
don't hurt much Mr.. Clark was care
full to specify that he didn't want the
inspection to be made with any great
amount of noise and advertising, which
means that he wants allT reference
to the condition of the track to be kept
out of the newspapers as far as possl-
BILE. The commission has adopted TINS
gumshoe policy in former inspections
/ Commissioner Frank Ryan said he
didn't think any more inspection Is nee
essary, but that if Commissioner Ryker
wanted to go. he would try to go along:
Rabbit shooting is said to be good
out there said Mr.. Ryan.
II think we ought to so in fairness
to the company" said Mr.. Ryker.,
BY the time this inspection is com
pleted it will be too late in the fall fo-
any more track work, and the company
will have gained at least six months
more delay
Mr.. Clark admitted to the commits
sion that his company hadn't been abb
to spend much on improvements, and
could not see any prospect in the i'm
mediate future for increasing those ex-
penditures When it was limited that
if the Missouri Pacific did not have to
pay interest on a bonded and capital
debt of s150,O00 a mile it might have
more money for track improvements,
he said:
"Oh, my dear sir, you certainly dom.
advise us to fail to keep our business
obligations You don't advise repudia-
| ton There is not one dollar of moiS-
ture or water, in Missouri Pacific
stock. This bonded debt of S150,000 per
mile which YOU show, is simply the
bonded debt divided along the 1,100
miles of the old original main line. We
are responsible for the debt of lot of
companies which we have absorbed,
whose mileage does not show in our
reports. AS matter OF TACT, IL you
look in the reports of the banking and
financial companies which deal in our
stock you will see that our capital debt
is $4,000 per mile, and our bonded debt
about 1000, which is one of the lowest
capital and bonded debts of any rail-
road in the United States,
This will be news to lot of people
of Kansas who have been abusing
George Gould for watering the stock of
his railroad and making the people Of
Kansas pay the interest
Mr.. Clark contended that the Central
branch line was not in such very bad
condition because there had not been il
single passenger train wreck or derall-
ment on the line this year. He said
that the road couldn't be operated at
all if it was in as bad shape as some
people contend.
They were talking about what tre-
mendously rich farming country the
Central branch reaches in northern
Kansas. going through the center of
the Kansas corn counties, when Mr.
| Clark made a remarkable statement.
'sThe very fact he said, that the
land is so rich makes it hard to keep
| a railroad track in good condition. be-
cause the dirt washes out easily
:: Mr.. Clark painted a very gloomy pic
ture of the future of railroading in the
United States. He said: Unless Eu-
rope will let loose of some of it's money
:, mighty soon, and give the railroads of
this country some capital to work with.
half the railroads in the United States
| will go into the hands of receivers