The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-10-12
ABOUT THE SANTA FE.
The Road Has Done Well in Past
Year in Face of Depression.


Year in Face of Depression.
The AtchisoH. Topeka & Santa Fe
has come through the past year in
much better shape than appears from
It's income account. The road has
suffered severely from its inability to
hold down operating expenses, and
on casual examination of the report
for the fiscal year ended June 80.
1908, the fact that the operating ratio
was 81 per cent last year as COM
pared with 81 per cent in 1907 is apt
to give an impression of inefficient
operation; which on closer examina-
ton will be found to be quite wrong.
For the past II years the Santa Fe
has been expanding its territory, i'm
proving its roadbed and equipment
and acquiring valuable new lines to
an extent equalled by few roads, and
during this time it has had both gross
and net earnings more than pro-
portionate to its increase in mileage,
while at the same time it's funded
debt and capital stock outstanding
have by no means. been increased in
proportion to the increase in earning
power.
The policy has been one of ex-
pansion, clearly warranted by a con-
| stantly increasing business so that
now, when in the opinion of the direc
| tors and officers business no longer
holds out prospects of increased re-
can stop short and turn its entire at
| tention to development of it's already
existing lines. Capital requirements
have been fully met; the improve
| ments that have been under way in
the last few years are now nearly
| completed, and during the next year
| the net earnings of the road should
| show the results of these improve
ments. On June 80, 1907, the COM
! pany had under construction 4SS
m Of 1nxx-r 1r0o
| 1908, in addition to an increase of 142
miles in lines operated; it had COM
pleted that portion of the Eastern
| Railway of New Mexico, Texico, n.
| M, to Rio Puerco, 27S miles, and the
| Arkansas valley extension 107 miles.
To pay for these additions and for
| betterments and for other purposes
the company issued 100000 general
mortgage per cent bonds and $3,-
| AIS, 900 Eastern Oklahoma division
per cent bonds (of which about So
| 100000 was subscribed for at par by
| stockh olders and the remainder sold
to ]. P. Morgan & Coz Subtracting
from the sum of the new bonds issued
| the obligations purchased or retired
we find that the company increased
its funded debt during the year by
| $31,2S2.S70 In addition, since the
| close of the fiscal year the company
| has sold $17,00O,OOO Transcontfnental
|
cured by a mortgage on the Belen cut
off and other newly acquired or built
| lines aggregating So miles. 1t must
be borne in mind that during the year
| under review the company has de-
| rived no advantage from the Belen
cutoff as a through passenger and
| freight route between Chicago and
| San Francisco, so that the large esti-
| mated savings in operating expenses
that are to come from its use for this
purpose in connection with the
Panhandle division are not in any way
reflected in the annual report. When
| one considers that the new line will
have maximum grade of 1.25 per
| cent and has only one grade west
bound of over 0.6 per cent, while the
La Junta division in use during 1908
had two grades of 3.5 per cent, it does
not seem too much to expect that
much time can be saved by passenger
trains between Chicago and San Fra
cisco, and substantial sums saved in
| cost of conducting transportation in
| the freight department.
Gross earnings. although large for
| the first six months of the fiscal year,
| fell off for the whole year $4,0OO,0O0,
being $9O,600,000 in 1908, while
00O,0 being S6O.SOO,0O0 last year.
| OF the decrease in gross earnings the
| loss in revenue from freight was over
| 100000, while passenger earnings
| increased from S21,200,000 in 1907 to
| $21,600,000 in 1908. The largest pro-
| portionate increase in operating ex-
| penseS was about 100000 for
maintenance of equipment this ac-
| count showing $14,000,0OO spent in
1908. Conducting transportation also
increased by $1.6O0,O0O, being about
| $685. 900 last year.
| The sums spent for maintenance of
| property by the Atchison during the
| last II years has been extremely lib
| eral, and the year 1908 was no ex-
/ ception. An average of $1,000 was
| spent for maintenance of way and
| structures per mile of road operated.
| as against S1,64S in 1907, and S1,479
| in 1905. In spite of the fact that
| there were added 81 locomotives and
| 1855 freight train cars maintenance
| of equipment, including renewals and
| depreciation, cost $3,714 per loco
| motive in 1908 as against $3.037 in
| the previous year; $1,040 per pas
| senger train car as against $963, and
| $106 per freight car as against $1O3
| in 1907. 1t is impossible to work
| these figures out on our usual basis
| of repairs and renewals because of
| the new methods of accounting pre-
| scribed by the Interstate Commerce
| commission. 1t might be added here
| that wherever comparisons are made
| between the figures for 1908 and 1907.
| the figures for the earlier year have
| been arranged to correspond to the
form prescribed by the Interstate
| Commerce commission. The main
| tenance of equipment figures are all
| the more liberal, because the Santa
/ Fe has an unusually efficient shop
/ system.-Railroad Age.