The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1910-08-31
THIS IS TESTIMONY or PREsI.
DENT e. p, RIPLEY or
THE SANTA re.
EARNINGS MAY SHRINK
President Declares He May Sec Dc
crease in Gross Receipts il Present
Conditions 4revail--Takcs Rap a. tho
Public Side Of The INSTRUMENTATION
Gives Figures to Committee.

Gives Figures to Committee
Chicago. Aug 30 President l. T.
RIPLEY of the Santa ITc system. IN tho
witness stand today lsefora specia,
Examiner g. NJ. Brown 81 the int sr
state commerce commission. In sunr.,rt
of the contention of the railroads tbnt
higher rates are Just and right. d.
carcd that wages paid by the ralironds
nave increased largely, making operat.
ing expenses greater burden He
also declared that the uu..ook for next
year ls not good and that general con-
ditions are SO considered In the juag-
ment of merchants and those familiar
with the trend of events
Ripley said lie thought II not i'm
probable that next year the enrnIng.,
of the road may shrink SO that tiiey
would no more than pay the dividends.
The pessimistic views Of the prns.~
dent of the road came In the direct
examination by Attorney Frank Lyon.
counsel for the Interstate commerce
commission and followed questions
concerning what PROPORTION ~ cacn
dollar earned by the road was returned
To the public In the shape of wages for
labor and In operating expenses,
Decrease in Earnings.
I'VE are likely 10 see a decrease In
our gross earnings In the next II
months said Mr.. Ripley.
What do you attribute that tor
asked Mr.. Lyon.
II attribute IL to- general conditions
Of business" was the reply
"Are the general conditions Of busi.
ness bad"
a would not say they are bad Trey
arc not as good as they we're 4 Year
ago" said Mr.. Ripley
what liz the troeble2 Have ~,i
any idea2.'
Well am not a professor of no
liticai economy and do not eare 10
venture an opinion" was the response.
Il do nn< care to venture an opinion
as to what the trouble Il. but think
the CONSENSUS among tile merchants
aud others In this room IL that TN,
conditions are not as good as they
were year ago and | do not expect
IL sec az large earnings as He saw
last year
hearing under cross examination by
Attorney clifford Thorne representing
livestock shippers IN Iowa, Mr.. Ripley
admitted that for 10 years the Santa
te had paid dividends,
Paid Next Year.
II have nothing 10 prove that they
will not be paid next year or that we
shall default pn our interest, SAID
the president OF the road This last
year. which WAS the largest in gros,
earnings we ever had. we kept up Tn.
property and earned SIS per cent en our
capital stock, but ! can see expenses
ahead of me FOR this foniug year
enough 10 warrant ine III the heller
that we Will not any more than eart,
our dividends; we might possibly earn
our per cent dividends. In other
words, think 1t Is not improbable
that or earnings may shrink 10
point where We Will not earn any NOR.
than our dividends"
Ripley explained THAI by increased
expenses no referred 10 improvements.
"ln order to keep up with the times
and do what the public expects Of MS"
he said Amy railroad that fails 10
do that Is bound for the slide "
Mr. Thorne asked: You think that
ought To be paid out Of the operating
expenses?
Most certainly 10" replied Mr..
Ripley.
Tabula.ion Of interest
In the course Of the hearing the rail-
road introduced tabnlatlun Of the
interest on the stock after the payment
Of bond interest for the years 1896
to 1910. ON cross-c examination Attor-
ney John Fl Atwood Of Kansas city,
representing group Of shippers, took
up the discussion Of some Of the ex
hlbits offered by the railroads. and
called attention tf an Item 1T s4n3,oh0
appropriated for faol reserve Ia 1908.
MIR. Atwood compared the amount with
much smaller figures for similar
charge IN other years. Mr. Atwood
asked,
Let me ask you If this disposition
of funds, more than three times that
of the good year 1909 10 thls fuel rr.
serve. Was done because there waH III
the mind of the mapagemen, the idea
that II would help this lean showing
to he employed AZ an argument before
the commission now"
Mr. RipIey's Testimony.
Mr. Ripley: 4 Do not think il had
any Influence, 4 certainly did NOT
with me"
Mr. Ripley Was questioned concern
ing the capitalization of thu subsidiary
hnes Of the Santa Ee system Mlil@n
lie said. WAS included III the estimate
III S57s.ono oo0 that wou:d he reanirat
To reproduce the SYSTEMS properties
From the figures at his command
(coutinued on Page Six)