The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-27
RAILROAD NEWS.
Public Wants Best Service Pos
sible Says e. L. Copeland.
"But Railroads Must Have ReVe-
nue." He Continues.
COST FOUR MILLION.
ST FOUR MILLION.
Santa Fe Treasurer Gives
Figures on Improvement.
Other Items of General Inter-
est i'm Traffic World.

E. L. Copeland, secretary and treas
urer of the Santa Fe, talked about the
financial department of the company
at Denver the other day. when you
consider the various interests that
must be dealt with in the management
of the railway system of today" he
said, you must necessarily conclude
that the president of railway COM
pany, with his official staff, must have
all of the qualifications which are re-
quired in other lines of trade. The in
terests which must be recognized are,
first the owners of the company, as
stockholders; second, the public, as ship
pers and passengers; third, the labor
organizations with petitions for in
creased wages and less hours; fourth,
regulation by the United States gov
ernmental commissions Every new
obligation caused by expansion must
have careful consideration as to how
these four interests will be affected and
the regulation which will be required.
and. in addition, the state legislatures
and state railroad commissioners must
be considered and if, to the multitude
nous duties of a railroad official IN the
economical management of his prop
erty, you add these additional duties
and possible restrictions, will it not
cause a hating of possible improve-
ments and expansion? If the govern
ment decides to restrict the capitaliza-
ton of railway companies without as
surfing the investor any returns on his
money, will it be possible to secure
funds for new projects? I believe that
2 corporation that now obeys the law
should be allowed to use all the capital
that is necessary, so that 1t can de-
veIoped to its fullest capacity.
''The public is not satisfied with poor
railroad facilities. but always wants
the best service possible, and the only
%
revenue that will enable them to fur
nish the best facilities possible.
at Is Just as important to preserve
the credit of a railway company as 1t
is to protect the credit of an individual,
or any corporation or the United States
government. The government and the
state permit banks to capitalize their
earnings, creating a surplus fund and
thereby increasing the credit of the
bank Should not the railway COM
panies be permitted to do the same
thing If they so desire? The Santa Fe
however. has not capitalized the earn
ings which have been put back into the
property, but has made it just that
much more valuable to the owners and
to the public.
Restricted capitalization might be
all right If a railway company were
located in a thoroughly settled and
prosperous part of the country, where
but it certainly would be a bad propo-
sition for this western country as be-
lieve, it would prevent the expansion
of railway development or the in
itiative to build into certain localities
needing railroads, although not being
sure whether they would be prosperous
or not. We have undeveloped territory
which will suffer if railroad expansion
ceases.
1.-THE railway companies for the past
two years, have adopted a new system
of accounting, under the jurisdiction of
the interstate commerce commission ex-
pert accountants, and monthly statements
have been rendered to the commission,
which are published in the newspapers
s'gThe books and reports are checked by
representatives of the commission, and
any misunderstanding as to the inter-
probation of the law are promptly cor
s'The Santa Fe does not object to these
regulations as established by the commits
| sion, but they believe they should be
| treated fairly in all matters of mutual in
terest and that the public should know
| what laws are detrimental to the eXpan-
sion and Improvement of the railway
companies, so that injurious legislator
will be avoided.
''At the close of June 80, 1910, the Santa
but, after paying its increased expenses
charges of four per cent to the bono
holders, a dividend of 8 per cent to the
stockholders holding preferred stock an6
| a dividend of per cent to the stockhold
ers holding common stock, it was found
that for additions and betterments dur
ing the year it had spent four millior
| dollars, leaving a credit to surplus &C
count of three hundred and sixty-fivt
dollars.
NOW this amount which was used from
! the earnings and put back into the prop
erty was not half of the amount tina
| should have been used for such purpose
and the only way to secure this money
which is needed each year is to increase
the earnings.
1--WE all understand that back of oul
great business enterprises is the funda
mental principle of honesty and integrity
| do not believe there has ever been {
| time in the history of the country wheI
business has been operated a NOR
substantial basis. and when you conside
the volume of our financial transactions
| handled almost entirely on exchange ant
letters of credit, we cannot but feel tina
we are all interested in maintaining tn
ii credit InSSihle >,