The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-09-05
Treasurer E. L. Copeland Makes
Some Admissions.
A SECRET LEAKS OUT
May Be Case of "Freeze Out
Against Rock Island.
Case Goes Over to Await Mr..
COnrad's Arrival.

AT the request of the attorney Tor the
Leavenworth & Topeka railway, the
taking of further testimony in that case
was postponed Friday until Wednes-
day. September 9, because of the alb
sence of A. L. Conrad, auditor of the
Santa Fe, who is wanted as a witness.
The state gained a material victory
Friday. and may be able to force the
dismissal of the injunction suit start
ed by the Leavenworth & Topeka, on
the ground that the L. & I. is really
not an independent line, but is actually
owned and operated by the Santa F'e
railway.
Treasurer E L. Copeland, of the
Santa Fe, was on the stand Friday
and from him the state brought forth
the information that the last annual
report of the Santa Fe directors TO tne
stockholders referred to the Leaven-
worth & Topeka as owned and oper-
ated'' by the Santa Fe proper.
u. T Hazen, the special master, IN
passing upon the injunction stated that
it was quite clear to him that IL II was
shown that the l.. & r railway was IN
fact a mart of the Santa Fe system and
was not an independent line, that that
fact would be sufficient to compel
dismissal of the complainants Dill anu
to deny the injunction prayed Tor. ne
further stated that he did not unl1n
that it would be necessary TO go into
an investigation of the receipts ana eX-
penditures of the Santa Re Railway
company in this case for the reason
that the complainants' bill must neces-
sariIy fail if it was shown that tne
L. & T. railway was not an independ-
ent road and entitled to bring the ac-
ton on it's own behalf. he 1urtner
stated that he would sustain the op1ec-
ton to the production OF the recoius
of the Santa Fe so far as permitting
said records to be used to snow the
business of the Santa Fe, but ne WouIo
allow the record. to be introduced IoE
the purpose of showing the reIatlon eA-
listing between the L. & I. RaiIway
company and the A. T. & S. F. Rail-
way company.
Mr.. Copeland then produced the an
nual report of the Santa F'e, Whlch was
introduced in evidence. Thls report
shows that the Santa F'e Railway com
nanv included the L. & T. railway in
its general balance sheet under the
heading of assets of the Santa Re Rall-
way company for the year I5of. II
also shows that said railroad company
was included in the mileage owned py
the santa Fe Railroad company and 1t
is also shown by this report that $oV'-
600 of the first mortgage bonds OF the
L. & T. company and S2o,Ooo of'the cdPl
tai stock of said company was pledgeo
Nv the Santa Fe company as security
for IFS funded debt Mr.. Copeland in
sisted that the L. & T. railway was op-
Grated as a separate road, notWlth-
standing that its business TRANSACTIONS
were conducted by officers of the santa
Fe and in the Santa Fe offices. He
stated that the L. & T. had its own
form of stationery and introduced
printed form of pay check ana train ~
report said to be used by the L. q L.
Railway company
worth & Topeka is really an in
denendent line, the state will in all
probability lose its case, for the rail-
Way company will be able to prove
that the company has been losing
and Union Pacific railway, who are
ioint owners, have been making up
the deficits. Hence the adoption OF
a, lower schedule of freight rates
would be unlawful, because IL Woulo
still further reduce the earnings of
the company.
Freeze Out the Rock Island.
IT has been a source of some as
tonishment that the Santa Fe and
Union Pacific should be willing to
"chip inland buy bankrupt railroad,
and continue to own and operate that
road at loss each year. me peao
son for this seemingly unexpncaple
condition was explained yesterday by
a man who is close to the railway
view of the case. He said:
ssThe object of the Santa Fe and
Union Pacific in holding this line and
the Rock Island from getting Kan
sas City-Topeka line of its own The
Leavenworth & Topeka occupies
territory which would be very val
liable to the Rock Island. and If the
Rock Island had a chance it would
doubtless be glad to get the line and
add it to its present system.
But the Santa Fe and Union Paclnc
now have the control of the Kansas
City-Topeka traffic. Everything be-
tween those towns passes over the
lines of one of these companies. The
Rock Island trains use the Union Pa
cific tracks. The Santa Fe and Union
Pacific can well afford to buy up the
Leayenworth & Topeka and hold it
indefinitely, pJcketing the losses each
wear, lust to keep it from falling into
the hands of the Rock Island
''Under the Santa Fe and Union Pa
cific ownership there is no particular
intention or desire of making the L. &
T. self sustaining. 1t is better for the
owners to ship their Kansas City-To-
peka freight over the short lines along
the river. 1t will never pay expenses
unless the traffic along the line can
he developed The way 1t Is run now
it depends entirely upon local traffic. "