The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-12-27
Accountant Was Keeping With
in Necessary Scope He Says.
Tells Mr.. KOuns Inquiry Covers
Only Ripley Discussion.
COST OF THE LINES.
Says He Was Securing About
Rails, Ties and Grade.
This Was PrincipaIPOint in the
Controversy.
jOST OF THE LINES.

Governor Stubs has sent letter to
c. w. Kouns, general manager of the
Santa Fe railroad, in response to the
telegram sent him by Mr.. KOunS, stop
ping the work of the accountant set
to work by the governor on the rail-
roads books. The governor claims
that he hired the accountant in re-
Spouse to the invitation by President
Ripley to investigate the roads books
and thus ascertain for himself wheth-
er the president spoke the truth or
not in regard to the assertions that the
road was not overcapitalized.
The governor accepted the invita-
ton and started an accountant to
work some days ago. General Man
ager Kouns then wired the governor
that the accountant was securing fig
ures and information outside the
scope of inquiry discussed by the
roads president with the governor,
and ordered the work stopped. The
governors letter to Kouns on the sub
Ject is as follows:
Topeka, Kan, Dec. 26, 1910.
MIR. c. w. Kouns, Gen. Mgr. A. r, &
g. F. Ry., Chicago, III.
Dear Sir: Your telegram stepping
the examination of the Santa Fe's
books, which was started at President
Ripley's suggestion, was received late
Saturday afternoon. You say you feel
compelled to stop this work because
tAlG inquiry tdhlllS llliSo CALl ely
outside of those contained in Mr..
Ripley's correspondence. and that no
attempt is being made to verify his
figures The vital questions which
Mr.. Ripley has discussed in his letters
to me are: The physical valuation,
cost of reproduction, capitalization,
and earnings of railroads. He vigor-
ously opposed the physical valuation
of railroads by the government, and
stated as one of his principal reasons
that the value of the Santa FEES prop
erty is in excess of its capitalization,
and, again, stated that the Santa Fe's
capitalization would not be sufficient
to reproduce the property.
After discussing these questions at
length, together with the earnings of
the road and other less important mat
tiers. Mr.. Ripley proposed that l exam
inc the Santa FEES books and prove the
truth of his statements, the only limi-
tation placed upon such examination
being that l make public the Informal
ton secured.
My accountant was securing infor-
nation in regard to rails ties and grad
your auditor at his elbow checking ev-
cry figure with him, when your tele-
gram was received ordering me to stop
the work
II desire to secure the above infor-
nation to verify Mr.. Ripley'S claim that
the more than $4,000 a mile capitaliza-
ton of the Santa Fe lines will not be
sufficient to reproduce the property. The
weight and length of time the rails
have been in use, the character and
length of time the ties have been in
use. and the number of yards and clas-
sification of embankment and eXcava-
ton in your roadbed, are the most i'm
portant factors necessary to determine
the actual cost of reproducing the Santa
Fe railroad, and this information is
strictly within the lines contained in
Mr.. Ripley's correspondence.
Il presume you simply obeyed orders
from some one higher up to stop the
work, but 1 protest against the charge
you make that the examination of the
books was outside the lines covered in
Mr.. Ripley's letter.
Very truly yours,
wv. r. STUBBS,