The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-12

Of the property--a deeply interested
third party-to furnish this vital in
| formation to the court which would
be a determining factor in the case
at issue? Why do not the railroads
permit the public to furnish all in
formation concerning valuation, cap
italization and earnings of railroads TO
the court and the railroad company do
what the public now does-remain
an innocent bystander?
That sos, 100000 State Issue.
You state in your letter that tthe
Santa Fe has never issued a security
except for cash which was invested
honestly in the property, without a
single dollar of graft or perquisite or
rakeoff for anybody" That statement
may be technically true, but if it is
substantially true, the men who con-
structed the many original lines which
now compose the Santa F'e system in
Kansas have grossly misrepresented
conditions when your lines were built
in this state. I shall be very much
pleased to have you advise me for
publication when the $103,000,000 of
Santa Fe common stock was sold for
cash by the railroad company; what
price was paid for this stock, when it
was sold and what was done with the
money? It is my understanding that
the original common stock issued by
the constructing lines which now form
the Santa F'e system in Kansas was not
sold for cash, but was used largely for
promotion purposes, and does not rep
resent any actual investment in the
property of your railroad. 1 shall be
pleased to have you state the actual
facts about this matter, so that the
public may know whether the Santa
F'e common stock represents money in
vested in rails, ties, engines, grading,
ETC., or not, and do you not know as
a business man that the public is en-
titled to have this information direct
from the government itself?
In referring to the overcapitalization
of railroads. you state in your letter as
| follows:
'Thus we see the stocks and bonds
| of these overcapitalized roads selling
at a great discount, and if you take
their value in the market, it will be
found that in most cases it closely APP
proximates the real value"
Pay Higher Wages.
Taking your own statement as a
basis, the market value of Santa Fe
| securities has increased almost $780,
| 100000 during the past fifteen years,
| in addition to the regular dividend
| and interest which you say have been
paid. Your common stock was selling
on the market at less than ten cents
| on the dollar, your preferred stock,
adjustment bonds, and regular Santa
| Fe bonds sold far below par fifteen
years ago. You say all this value has
! been made up, and that the property
| is worth more than the entire amount
represented by the securities of the
| railroad. If the Santa Fe securities
have increased in value $150,0OO,OO0
| in fifteen years, or $10,OOO,00O year.
| over and above regular dividends and
! interest money, and the railroad has
been able to set aside $50 .O0O, 0OO IN
| other assets together with $20,000,00
surplus on hand, as shown by first
class railroad authority, do you not
| think you could afford to increase the
wages of your employees so they could
at least live in comfortable way? l
| know personally one man who told me
during the last ninety days that he had
| worked for the Santa Fe twenty-five
years, that he has family and five
| children, and has never received to
| exceed S1.35 a day, and his wages have
never been raised in quarter OF
century.
The above are some of the reasons
why I called the rate conference at
Topeka. I believe you have many EN-
ployees who are entitled to higher
wages. 1 belieye it is your duty to pay
| them higher wages, and taking your
own published statement as basis
! you have abundant income TO increase
| these wages G1d do it now.
why He Built Railroads.
| In referring to my speech at the
rate conference, you made the 1olIoW-
| ing statement in your letter:
az am gratified to learn from your
speech that you want to build the rail-
| wavs up. AS you participated imam
eially in the building up OF quite Few
miles of western railways, knew pc
| fore YOUR speech was delivered that
| YOU could not take position at Varl-
ance with that which you maintained
| before you were drawn into the seem
ing vortex of a political maelstrom
am unable to see just what relation
this statement bears to the subject OF
increased freight rates. L worked Tor
the railroad companies for tWenty-n|1
years, secured my work by plddlls
against the sharpest and ablest rall-
road contractors in the United states;
One of the last contracts which L had
NV bid was $50 900 less than the next
| lowest bidder, on job that amounted
to more than $3,00O000. This work was
! finished to the satisfaction of the rail
road company I can not understand
where I am indebted to that railroad
| company or where they are indebted
| to me, except in good will. There was
no condition in the contract providing
that 1 should sacrifice my right to be
| a free American citizen, and to ENJOY
all the privileges that belong to a citi-
zen during the time of the work and
| after its completion. If you know of
| ANYTHING inconsistent with this theory
| please advise me for publication what
| your theory is. I am willing to accord
| t. you and railroad presidents and
managers generally courteous treat
ment and fair consideration. and it is
my opinion that the interests of tn ;
railroads, as we'll as of the public, will
! be conserved by fair, plain public dis
cussion of the questions at issue. Sar-
casm, personal insinuations and innuen-
does have no worthy place in discuss
| ing a question which so vitality affects
| the welfare of a great republic.
Revenue From Bank Stock.
You ask about my personal income
| from earnings the Lawrence Ma
| tional bank stock. While this has no
particular place as I understand in this
| discussion, have no reason for with
| holding from you this information