The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-10-29

ments. ETC., IN fact. the governor was
loaded for bear. He had worked for
a week in preparing himself to testify
in this case, and had used all the ma
chinery of the state to help get the
facts. His table of the estimated cost
of building railroads in Kansas was
submitted to the commission and is
remarkable document
In his testimony Governor Stubs
made the following sensational state
ment regarding the actual cash in
vestment of the railroad companies
in their lines in Kansas:
More than eight million acres of
Kansas land was given to the railroads
running through that state. This is
one-sixth of all the land in Kansas. In
addition to this enormous grants of
cash, together with twenty-five million
dollars in bonds, and also right of way
and terminal grounds were furnished
free to the roads by the public in many
cases.
Train Capacity Doubled.
1.-THE railroads are clamoring for in
creased freight rates when it is a fact
that the number of cars hauled i'll each
freight trains have been more than
doubled within the past fifteen years
and the number of tons hauled in
each car have been doubled on an
| average. This means the same train
crew and engine today would haul al
most 800 per cent more tons with very
| little additional expense than was
| hauled by the same crew fifteen years
ago, and yet our freight rates are
practically the same as thev were if
teen years ago and the roads want to
! increase them
| Governor Stubs believed in concen-
| trating the efforts of the public in this
cause on one road at time instead OF
scattering his shot over the landscape
In the course of the hearing he told
of Santa Fe earnings and capital stock
and advanced the proposition that the
prosperity of the road was the best ar
gument against the justice of the in
crease in freight rates asked for in
the following statement:
| 1.-THE Santa Fe railroad furnishes q
good illustration of the prepoSterous
| demands of the railroads of the coun-
try for increased freight rates. Pres1-
dent Ripley of that road recently said
over his own signature that the value
of the Santa Fe property exceeds the
entire par value of all its outstanding
stock and bonds. President Ripley
also said at the same time that the
market value of railroad stocks and
| bonds in most cases closely approx
mates the real value of the property.
! Fifteen years ago the market value OF
| Santa Fe common stock was less than 10
cents on the dollar, and its preferred
stock and bonds were selling at far be-
| low par. The increase in the value of
| approximates $50 million dollars, or nearly
| 10 million dollars annually.
$50 Millions in Betterment.
'If this enormous amount of money
represented by the increase in value of
| Santa Fe stocks and bonds actually has
| been invested in Santa Fe property, as
| Mr. Ripley asserts, and that property is
! really worth more than the par value of
| these stocks and bonds today. then this
| $50 millions must have been taken from
| Santa Fe earnings and used for better
M nts and improvements from year to
| year.
Taking into consideration this ire
mendous increase in value of Santa Fe
lion dollars of other assets and 20 million
surplus on hand June 80, 1910, and add 70
| these the regular interest payment on
| bonds and dividends on stocks that have
been paid, and these all go to prove that
this road is in such prosperous condition
that any demand it may make for in
| creased freight rates not only cannot be
justified by the facts, but is ridiculous
| and preposterous on its face"