The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-04
Asks w. r. s. Pointed Questions
on Percentage Holdings.
PHYSICAL VALUATION
Mr.. Ripley Says He Does Not
Object to This Move.
Prejudice Employees Against
Their Railroad Company.


the raise of railroad rates given by
Governor Stubbs in Topeka not long
ago, President Ripley of the Atchi-
son, Topeka & Santa Fe. gives an
open letter in the columns of the
State Journal this evening.
The letter in full follows;
On the Line in Colorado,
October 1, 1910.
Hon. w. R. Stubbs, Governor of Kan
sas, Topeka, Kan:
My Dear Governor: regret very
much that I have not had the op-
portunity before this of carefully read
ing the speech which you delivered
at your conference held in Topeka
Thursday of last week.
AS 1 am the president of a railway
company having three thousand miles
of rails within the state of Kansas,
/ am pleased to know that you would
like to have the east and eastern news
papers understand that you do not
want to tear up the tracks of the rail-
road companies" Assurances of TINS
kind from the governor of the state
naturally will make those who have
investments in the railways feels more
secure.
As a railway official who has more
than a passing interest in one of the
great railways of the country, L am
gratifed to learn from your speech
that you want to build the rails up.
AS you participated financially in the
building up of quite few miles OF
western railways, 1 knew before your
speech was delivered that you could
not take a position at variance with
that which you maintained before you
We're drawn into the seething vortex
of political maelstrom.
I further note that in addition to
placing yourself straight before 1.-The
east and eastern newspapers" as to
your unwilIingness to participate in
the tearing up of tracks, land your
unwilIingness to join in building up
the railroads of the west that you are
willing, in fact, want to give the rail-
roads chance to make reasonable
and just returns upon their invest
ment." I am glad to learn that this
is your position, as it certainly must
make the investors in railway proper
ties feel especially comfortable to
know that you as governor of Kansas
place your stamp of approval on the
new doctrine that an investor is en-
titled to a reasonable and just re-
turn upon his investment.
You, of course, do not say what you
would consider a just and reasonable
return to an investor. would take
it that you would be willing to ac-
cord a friend who had his money in
vested in Santa Fe holdings the same
rate of interest that you have received
on your holdings of Lawrence National
bank stock, at least, it would seem in
fairness to your friend that such
WOULD De your pOSlLlOn- r OF d peIlONl
covering fifteen years your friend, the
investor in Santa Fe holdings. has re-
ceiVed an average return per annum
on his investment of less than per
cent. Possibly your friend with the
Santa Fe holdings would like to know
if you have not received a much
greater return per annum on your
holdings of Lawrence bank stock. Do
you as governor of Kansas and as a
friend of the friend who owns the
T. oil inc vol tn ha-
received more than a just apd reason
able return on his investment?
Earnings Have Not Been Large.
During my tenure of office as presi-
dent of the Santa Fet efforts have
been made in the direction of rebuild
ing. in a sense re-creating the Santa
Fe and I am reasonably sure that you
as a friend and as Governor of Kan
Sas will proclaim to the people that
the Santa Fe is if anything, some
what above the average; but with all
of the improvements requiring ex-
penditures of millions upon millions
of dollars, have always kept in mind
the return which the investors in our
properties were entitled: can it be
said that the investor has received
that return which you as an investor
would expect
The earnings of the Santa Fe for
the period of fifteen years during
which I have had jurisdiction over
If have been on its capitalization
about AIS per cent; during the last
fen years the earnings on capitaliza-
4iou have been less than per cent.
You will perhaps concede and possibly
proclaim as Governor of Kansas that
fbe Santa Fe has been conducted not
only on business principles but also
with due regard to the convenience
and comfort of the public, and fur
+ber1nore. I have confidence enough in
vour fairness to believe that you will
proclaim that the Santa Fe's capitaliza-
lion does not represent the value of
its property. You will, I am reason
ab1v confident. say as a contractor and
builder of railroads, though possibly
Won would not proclaim it as Governor
~ Kansas. that the Santa Fe's cap
REALIZATION would not be sufficient to
reproduce its over 10000 miles of rail-
Ivav. We are. therefore, down to that
7,ortion of your speech where you pro-
c1airn so vehemently that the public
demands nothing short Of bona fide
I-aIuation of all railroads. You seek,
IN common with others. to make this
fhe rock upon which the people must
eDIit with the railroads; it is to this
,1arffct1lar feature of your speech that
have to say that as the President
- the Santa Fe I have no objection
- on advertisement of its property by
anv fair-minded body of experts that
9be Government may select, because
irnow that such body would find the
--aIue of Santa Fe property to be in
excess Of its capitalization. Also 1 am
,e1-y sure. that. CdesDite few con-
Dicuous instances of over capitaliza-
4io1S If would be found that the rail-
~oads of the country as whole are
DJeT rather than over capitalized
P,t what I want to know is what
,ood is to be accomplished by such
sf1ation? Nobody who knows any
tbing of the country's business and