The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-07-10
RAILROAD NEWS.
Financial Needs of Santa Fe
System Made Public.
No Plans for Financing Road
This Summer.
WORKING CAPITAL
In Last Year $31, 100000 for
improvements.
Other Items of General Interest
IN Vlro ffSo VV0r.IG
WORKING CAPITAL
Other Items of General Interest
in Traffic World.

New York, July 10.=WaH street
has grown so accustomed to expecting
the Santa Fe to enter the market for
the company to do its annual financ-
ing this year has aroused comment as
to the possibilities of financing in the
near future. Officially the company
has no plans for financing this sum
mer, but what may be done in the
fall depends to a certain extent upon
how the road finds general business
conditions. If the directors think that
expenditures on a large scale would
be warranted, then there is little
doubt but that Santa Fe will go into
the market for money and continue
to improve and extend its facilities on
as liberal scale as heretofore.
In the year ended June 30, 1910,
Santa Fe spent about $50, 600, 900 for
improvements on existing lines and
for the acquisition of new lines. For
the year just ended about 100000
was so expended. This outlay was
provided for by the proceeds of the
convertible bond issue of last spring,
when $43,686,000 As were offered to
stockholders. The last installment on
this issue, which brought in about
$14, 100000 in cash was paid about
the first part of June On the basis
of the expenditures and the receipts
from bond sales, Santa Fe has bal
ance of about $12,O00,0O0 to carry
over the fiscal year just beginning to
apply to improvement work during
year 1910, the company had about
900, 600 working capital.
AT present, construction work IN
der way is not being rushed. The
cutoff from Texico, N. M, to Cole
man. Texas, which connects the Gulf
Colorado & Santa F'e with the East
ern railway of New Mexico, is about
completed and the branch from Lo-
meta to Eden will soon be finished.
The former covers about 800 miles
and the latter, SO miles.
This mileage is unmortgaged- The
.Texico- Coleman line is subject to the
conditions of the Transcontinental
Short Line bonds, of which SIT, 0O0,-
600 were sold in 1908. The terms pro-
vide that the extent to which the new
line shall be mortgaged shall not be
more than $500 per mile. There
are $13,000.000 of these bonds auth
orized but not issued. The Lometa-
Eden branch comes under the opera
tons of the Gulf, Colorado & Santa
Fe which, although a part of the Santa
Fe system, is a separate company Or
ganized under the laws of Texas.
Bonds on that mileage would neces-
sarily be issued by that company.
The Santa Fee closed the fiscal year
with 1858 43O,5OO common stock out
standing, an increase over a year ago
of $2,912,000. The difference in the
amount outstanding represents the
amount of bonds converted during the
year. OF the total conversion, a great
majority took place within the last
six weeks. OF the convertible issues
of 1905, 1906, 1909 and the issue of
per cent bonds in 1907, there are
S37,550,0OO out. With the $43,6S6,-
600 convertible As issued in 1910
which are not convertible until 1913,
Santa Fe has $81,236,000 outstanding
at present.
The Santa Fe could finance in three
ways. Another issue of convertibles
could be made; the $13, 100000 Trans
continental Short Line bonds could be
sold, or stock might be offered 1t
has been declared in unofficial quar-
tiers that this last method is the am
bition of the Santa F'e management.
Interests in the company say, how
ever, that the question has not been
formally discussed.
Whether the company prefers 10
its list of creditors with a
bond issue or whether it wishes to
acquire more partners by increasing
its capital stock may be largely deter
mined by market conditions A hun
cry bond market, or a booming mar
ket for stocks might determine the
final plan. The $13, 100000 Trans !
continental Short Line bonds alone
are scarcely enough to continue i'm
provements on the scale that has pre- |
vailed for number of years.
When last in New York, President |
Ripley said that Santa Fe had no
plans for immediate financing and de- |
clared that predictions as to railroad !
financing were difficult. Railroads |
he remarked always need money. It |
is hard to believe that the Santa Fe |
in view of its record of liberal I'M
and extension work of |
the past few years will rest satisfied |
with the present facilities of the |
system.