The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-06
RAILROAD NEWS.
Financial Needs of Santa Fe Sys-
tenn Are Made Public.
Improvement Programme of the
Company Is Discussed.
TO CARRY OUT PLANS.
Thought That Thirty-ThreeMil-
lion Will Be Needed 1912.
Other Items of General Inter
est in Traffic World.

Presentment of the Atchison's finan-
cial requirements for improvements
and betterments suggests the question
OF how the company is fixed 10 carry
out its program, says the Wall street
Journal In his recent magazine ar
ticle, Walker D. Hines. chairman OF
the executive committee, stated that
from $25,OOO,OO0 to 3O,O0OO0j should be
spent every year for intensive deVel-
opment Of the property. The r3ad
budget for 1910 as approved by the dl-
rectors called for the outlay of $31.coO.-
900. OF this $19,OO0,o00 was to be spent
for new work such as double tracking
new bridges and the like.
At the rate hearings III ChlcaSo'
President Ripley presented Atchison, 5
budget for the two fiscal years 1911
and 1912. The sum to be expended,
all on new work, was stated to be
$66, SEQ, 900. OF this over S15,000,000 was
to go for double tracking and about
100000 for new rails. In the dls-
bursernent of this huge sum nothing
was u be devoted TO new lines but TO
improve those already in existence.
During the fiscal year ended June 50
last, Atchison had received something
over SAL 100000 on account of the $2S,-
100000 4 per cent convertible bond is
sue Of 1909 and the similar issue OF
$43,6S6,000 of last March.
Further installments CT principal
which will mature during the current
fiscal year amount to $SO-2Io,OOO. IL
the pay ments were made this year as
Per program, about $44,000,000 would
be due. The difference is accounted
fer by bonds fully paid in Advance. or
the Sal, 100000 received. S39,900,0O0 rep
resentS bonds fully paid and delivered:
From the two convertible issues OF
1910 and 1909, Atchison viii have re-
ceived about $7200O,000. Requirements
as shown in the budgets Tor the TWO
fiscal years 1910 and 1911 approximate
$4,000, 900. This may be more clearly
shown in the following standardization:
Proceeds from bond issues
of 1910 and 1909. ST. ,OOO
Requirements, June 80, 1909
to June 80, 1911. $4,000, GOO
Balance -....-.-....- -.....--.. o'UoOuoV
From the statement of President Rip
ley, the company will need about $685.
100000 during the fiscal year ending
June go 1912. This leaves about $25.-
100000 which will have to be secured
in order to carry out the declared pol
icy of Improvement These figures do
not consider the amount taken out of
earnings every year for additions and
betterments. Last year Atchison de-
Quoted $4,000,000 for this purpose and
it is reasonable to suppose all average
of at least that sum will be needed in
succeeding years. Money thus spent is
generally put in improvements that do
not add to the company's earning
power.
At the end of the last fiscal year.
Atchison had a working capital of
about $1S,OO00 600 But it is not to be
supposed that this could be cut into in
order to spend the money for improve
ments. Consequently if the march
toward physical perfection is to be
continued. Atchison will find it neces-
sary during the current fiscal year to
raise the funds to meet the require
ments of the year beginning next July.