New-York tribune., 1910-08-31
MR.. RIPLEY PESS|N|ST|C
Saws Santa Fe Earnings viii
Just Pay Dividends Next Year.
AND COVER IMPROVEMENTS
Declares Higher Wages and
Operating Expenses Justify
Increase in Rates.

chicago. aus s0.-President E. P. Ripley
~ the santa Fe Railroad system on the
-irness stand before Special Examiner q
- Brown. Of the Interstate Commerce
Commission IN support Of the contention
IF the railroads that higher rates are just
and right declared that wages paid by the
roads have increased largely. making
flrera-fnE expenses q greater burden he
+. $50 declared that the outlook Tor next year
vas not good and that general conditions
are SO considered IN the Judgment of mer-
chants ana those familiar with the trend
q events Further IN his testimony Mr
Rf7Iev said taat le thought II not mproo-
asis thai next year the earnings OF the road
--ight shrink so that they would not more
han pay the dividends. n his testimony
The witness said IT would cost S57s,oco"'o 10
reproduce the Santa Fe system.
President Ripley occupied the stand until
90 O'Clock r the afternoon. and was fol
lowed by " r. Bailey. general auditor Of
- system. and James Peabody. Santa Fe
S-atts-icia-. who We're questioned closely re
ezrdinz items OF expenses and earnings
contained IN diNererJ exhibits presented BY
TIE railroad
The rl-slr77iS-i~ view of the president 0f
re road came IL the direct examination by
Ar-o-aev Frank LYON. counsel Tor the In
-a-srar- Commerce Commission. and fol
srue6 questions concerning what proportion
O. Each dollar earned by rhs road was r.
----a5 - the public II ire shape of wages
~o- Eabo- and II operating expenses
We ara likely 10 see decrease n our
v-oss earnings II the next twelve months,
sais NJ. RiPIey-
What CO You attribute that to- asked
II. Lyon.
.s- s-~-5er,-a = n general conditions Of
business. was the reply
Are the general conditions Of business
tadT''
i would not say they are had: they are
net as good a they we're q year ago" said
oIr. Ripley.
what is the trouble. have you any
i6zzs"
Not Clear as 10 Cause % Trouble.
Vel. an nor z professor ~ political
economy and Go nor care TO venture an
opinion" was the response from Nj Rip
1ev. Il co not care 10 venture an opinion
a 50 what Ihe trouble Is but think the
CONSENSUS among the merchants and others
81 this room Is that the conditions ara not
q Cood as -neE were q year ago and DO
-o- expect 10 see a large earnings as We
saw last year
R-verriHE te the subject later II rhe hear
ing cn 0ross-exan nlIaati0n by Clifford
Thorn=. representing livestock shippers In
iowa 8I-. Ripley admitted that Tor ter
years the santa Fe had paid irs dividends
7 have nothing TO prove that they viii
ror De- raid next year or that We shall Ge-
faul- On cur interest" said the president
Of the road, but this year. which VAS the
largest in gross earnings We ever had, we
kept up IRE property and earned IS per
cent en our capital stock. but I car see
expenses ahead # ne for This coming wear
enough 10 warrant ne IN the belief that We
So ref any more than earn our dividends.
v r1iEhr possibly earn our 6 per cent
dividends. IN other words, i Is nor i'm
probable that OUT earnings NAV shrink 70
point where We vii not earn anv more
Jrsn our dividend Nr. Ripley explained
INST by increased expenditures Re referred
- improvements. and NIr. Thorne com
r-e---G-
50 r-sgcse 70 is ultimate ANALYSIS YOU
thirE YOU are entitled 70 Increased rates in
o-5a- 70 build these facilities Is that cor
r=r-7
In order TO keep - with the times and
CO what rze public expects Of Us" replied
zIr Ripley.
and make improvements above what
saE had last ear" asked the cross-ex-
em.ner-
Certainly. ANY railroad thai fails TO do
tals Is bound for the slide. was the re
Pl
You think thai oughr &c be paid out OF
The operating expenses" asked Mr.
Thorne.