The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-08-02
RIPLEY TO WHITE.
Santa Fe President Anent the
Emp0ria Editor.
He Replies to Comment About
Railroad Questions.
FACTS AND FICTION.
AND FICTION.
Says No One Is Shyer on Former
Than the Kansan.
Yields to None His Admiration
Concerning Latter.

President E P. Ripley. of the Atchi-
son, Topeka & Santa Fe. has taken his
pen in hand to make a few observa-
tlons anent William Allen White.
Mr.. Ripley says:
'I observe that my friend White, of
the Emporia Gazette, has been paying
me some attention, of a character
that seems to call for return. He is
pleased to CT edit me with some know
ledge of railroad matters and begins by
throwing a few bouquets at the Santa
Fe and incidentally at me personally,
but he proceeds to remark that as a
writer 1 am not a successful fact he
seems to have no use whatever for
the products of my pen.'
Now. as a matter of fact, I haven't
been writing anything. Sundry repor-
tiers have interviewed me more or less
lengthily and I have not hesitated to
say what / thought about the attitude
OF legislatures and courts and a part
of the public towards the railroads, but
have not gone into print over my
own signature, and the interviewers
have not generally reproduced my re-
marks with exactness. But let that
pass
II might say since Mr.. White has set
me an example in the way of passing
flowers, that I yield to no one in my
admiration for Mr.. White as a writer
of fiction-nr1 ~'4rther know of no
one who is 'shyer' than that same Mr..
White on facts.
HE tells me that the good old days
are gomez that within ten years every
road will be earning dividends on stock
issued under government supervision.
Also that "the rates will be made by
government experts and the 'charac-
ter of the service will be fixed by gov
ernmenL authority and that the stocks
and bonds so issued will have a value
far more staple (sic) than those now
On the market.
He says, moreover. that this is
neither socialism nor government own
ership-I agree with him that it is not
government ownership. but it certain
ly comes very near socialism, If I'M
oerstand what the word means
THE government is to prescribe:
81. The rates.
"2 The amount and character of the
service.
80. The amount and character of the
capitalization.
Does the government accept any re-
sponsibility? $50
Does it guarantee that such capital
iZation as it authorizes shall earn any
thing? Oh, moi The man who owns
stocks or bonds is to have no voice as
to what may be earned, or what may
savings in an enterprise over which
we nave 10 control whatever, on the
assumption that somehow and some
way the Lord will provide s7.t-
Brother White claims that the
American people have the genius of
organization that the government is
row digging a great canal as cheaply
as it could be done by a private cor
pcration.' Where is his authority for
that? already it is known that. the
canal will exceed it's estimated cost by
100 per cent, and the end is not yet.
AS individuals or as organized in cor
LoratiOns the people have genius
enough, but as a government I fancy
no one would care to say that we do
anything well Or economically-witnes
that colossal inconpctency, the national
postofice department, which piles up
millions of deficit every year and whose
only efficiency is derived from the use
Of the railroads that it underpays and
| browbeats, witness also the annual
river and harbor' fraud on the tax
payers.
Does Not Object to Valuation.
Personally do not object to the So
called valuation of railroads. There
are few that are Overcaptalized, and
the Santa Fe is not one Of them. But
when the valuation has been made of
what use is it?
1.-THE Santa Fe railroad runs through
| Kansas from east to west-it is, as Mr..
White will doubtless admit, in fine
| physical condition, and it is capitalized
at about $4,000 per mile. Suppose
| there is another road running along
| 81 le of 1t for three or four hundred
miles, of inferior construction, cap
| tailed at $4,000 per mile. Each road
must necessarily charge the same rates
Amy other basis would be ineQuitable
| to the towns along the line of each.
Shall the rates De fixed so as to allow
| the Santa Fe interest on the value of
| its property, or shall they be reduced
/ to an amount only sufficient to allow
the inferior line to earn it's interest +?
If the higher rate is to govern the in
ferior line would presumably earn
more money than necessary to meet its
obligations which condition would be
abhorrent to Mr.. White, and his
| friends. If the rates were fixed at a
point only sufficient to meet the neces-
stiles of the inferior line then the Santa
Fe Guild not meet its obligations and
| its ROAD would gradually deteriorate to
| the level Of the inferior line. Would
| that be in the interest of the public?
Are the roads in Kansas any too good
Is it not for the interest of the whole
public that the roads be able to earn
| enough to put large sums out of their
earnings into the properties every year
to keep up with the demands upon
them? In the last ten years the Santa
Fe has put at least fifty millions of it's
represented at all in it's capital account
lit is money which might have been
paid in dividends to stockholders, but
which they have chosen to dedicate to
public uses.
"The railroads must be improved and
their facilities enlarged; this costs
money-will Mr.. White tell US where
and how it shall be provided? If we
borrow 1t must perforce add it to our
capital; and the result will be as In
England that the capitalization will in
| ten or twenty years rise to such
enormous proportions that Gas in Eng
land) it will be difficult, If not impos-
sible, to earn enough to pay the in
| terest.
Use of a Sinking Fund.
when the city of Emporia desires
| to make permanent improvements to its
municipal plants it issues bonds to
raise the money, thereby mortgaging
the earnings of future generations, but
1t does not transfer to its heirs all Of