The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-11-02

make political capital among their en-
ployeeS by going to all the railroad CEN
tiers in Kansas and attempting to make
the men believe that unless they have
increased freight rates the wages of
the laborers are uncertain. No man in
Kansas would more cheerfully grant
any necessary increase in wages to the
railroad employees in this state than
1 would, but it is unfair and untrue for
the Santa Fe to try to make their en-
ployees believe that they cannot afford
to make any necessary increase in their
wage scales without increased freight
rates.
After expanding millions upon mill
lions of earnings each year in the main
tenance of equipment, way and struc-
lures, that have been part of the value
and capital of the Santa F'e railroad,
they had in 1908 a million dollar sur
plus, which was appropriated for pur-
poses which will increase Just that
much the value of the capital stock of
the Santa Fe railway. If any employee
was underpaid when that appropriation
was made then the Santa F'e cannot de-
fend such policy.
AS to the Valuation.
Mr.. Kouns says the value L place on
railroads in Kansas is only one-half of
the assessed valuation of their property
in this state. Replying to that state
ment 1 will quote from my letter to
the state tax commission, dated May
10, 1909, with reference to the taxation
of railroad property in this state. In
that letter l say:
g I am well aware the physical value
of these properties is not anything like
as much as the commercial value at
the present time. The commercial
value is based on the earning capacity
of the properties and the earning ca
pacity is determined by the rates
which the railroads are permitted to
charge for transportation of persons
and property. AS long as rates are
maintained high enough to earn inter-
est and pay dividends on such valua-
tions, am decidedly in favor of using
an equally high valuation of these
properties for taxable purposes.
IT shall be pleased, indeed, to have
Mr.. Kouns furnish me for publication
itemized statements of the cost, not OF
one piece of high price railroad, but
of all their lines in this state. Also
would like to have him file with me a
statement of the cost of each engine,
each car and all equipment, together
with the time such equipment was pur-
chased. The state of Kansas is en-
titled to this information. I endeav-
ored to have a law passed at the last
legislature requiring every railroad in
Kansas to file such statement with
the board of railroad commissioners,
bitterly.
His Position in General.
''It is wholly unnecessary for me to
say to Mr.. Kouns, or anyone else, that
I have constantly advocated publicly
and in private conversation a policy of
paying the railroads literally for their
service and permitting them to earn
sufficient revenue to pay liberal wages
to their employees, maintain their
property in good condition, so that
they could render first class service
and lay by good surplus in case OF
emergency and bad times.
ION the witness stand in Chicago 1
testified that the Santa Fe ought to
have and maintain a surplus of 25 mil
lion dollars for emergencies and pre-
lection of it's property against bad
times, but this surplus ought not to
be appropriated and used from year
to year in building permanent works,
which would be capitalized immediate
ly, and on which the people of Kansas
would have to pay dividends and in
terest.
81 hope Mr.. Kouns will continue to
discuss publicly the cost of construc-
ton of railroads, their terminals, and