The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-10-14
RAILROAD NEWS.
President Ripley Points Out
Features in Santa Fe Report.
Calls Attention to Large Reduc-
ton in Operating Expense.
YEAR WAS BANNER ONE
Income From Operation Was
Largest in Worlds History.
Other Items OF Interest in
Railway Circles.
YEAR WAS BANNER ONE

From the annual report of the santa
Fe system which has just been issued
1T appears that the last fiscal year OF
the company in some respects at least
was the banner one in its history. Its
operating income was larger than ever
before. In commenting on this fact E.
p. Ripley says in the report:
During the year covered by this re-
port, we have largely recovered in the
depression which overlook all forms OF
industry III the fall of 1907 and con-
tinued for nearly a year. Our gross
operating revenues were $3,641,92O in ex-
cess of the previous year, and only
$77 $50 less than those of the banner
year ended June 80, 1907, as revised.
while operating income was the largest
AZ our history.
owing to improved working condf-
tions due to liberal expenditures made
on the property, it has been possible to
make large reductions in operating cost
without allowing the road or equipment
of road to deteriorate in the least; ana
the condition of the system, as ma
chine capable of turning out large
Quantities of transportation has Steadl-
" improved"
Net earning of the system were equal
approximately. 1923 per cent on the
amount of common stock outstanding,
on which dividends during the year
were paid. This percentage of earnings
was after deducting four millions ex-
ended for additions and betterments,
and appropriations of $15S,23 for fuel
reserve fund.
But the company issued $1S,693,000
common stock in the course of a year,
bringing the total on June &c. 1909, up
to $121 559.55O. On this amount of stock
let earnings after deductions men
toned were equal to 9.4S per cent.
The company appropriated out of
earnings five millions for future ex-
penditures, so that after dividends and
lott
profit and loss. a surplus of 1895, $50 out
of the balance Of net earnings, amount
Tor the year to $40 All 800.
Concerning the changes in the meth
DDS of bookkeeping made necessary by
the requirements of the interstate
commerce commission. President Rip
ley says:
For many years it has been the COM
rany's policy to make out of income
large expenditures for additions and
betterments. At times such eXpendi-
lures have been made without thu
books showing any addition to that ac-
penditures being written Off Rules
promulgated by the Interstate COM
nerce commission require that for the
ensuing fiscal year. such expenditures
OLC of income will not be written off,
hut shall be added to the cost of pro-
perty, and that appropriate entries
shall be made on the liability side of
the balance sheet to show such ex-
anu " SllOW olSO elly
expended appropriations from income
set aside for such expenditures in the
future.
Your board has concluded that it
is wise for the fiscal year just closed
to adopt a similar method. Therefore
the sum of 100000 of the income for
the year has been appropriated for adj
ditions and betterments. $4.000.O00 being
expended during the year and the re-
manning So, 100000 being reserved to be
expended in the future"
The income account shows an increase
OF $3, 647, 800. or 4.02 per cent in operating
revenues, and As per cent in income,
from all sources, compared with the
previous year. There was a reduction |
of So, 573, SOB. or SIS per cent in expenses, |
resulting in an increase of Sc, 739, 104 in |
ret operation. Fixed charges increas-
ed $96S, $50.