The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-01-18
X. l.. Copeland Gives Ideas on
Problems of Day.
WILLING To SPEND MONEY
But Rail Lines Must Have
Revenue Backing.
Secretary and Treasurer of
Santa Fe Writes.

operating railway income of twelve per
cent per mile in 1872 as compared with
1910 in the United States, and expresses
the fear that inefficiency will be the re-
suit of increased expenses of operation.
The paper quotes from a report of the
Railway Business association, an or
ganization of shippers, not railroad
men, the following paragraph:
We undertook a sort of caucus of
shippers to ascertain definitely to what
extent the fundamental facts of the
situation had become known to bust
ness men. The result is herewith made
public in 1000 signatures of shippers
and receivers located in almost every
state. declaring for a policy which will
permit the railroads adequate revenue
to meet existing obligations and to at
tract capital for necessary improve
ments."
The attention of E. L Copeland, sec
rotary and treasurer of the Santa FEE,
was called to the article in Financial
America, and he was asked to make a
statement on the subject Mr.. Cope
land said:
THE year 1912 will have a record in
history as one of splendid advancement
along commercial and industrial lines
IN fact a general advance in all lines
which obtain for the betterment and
uplifting of human endeavor. Little did
we realize a year ago during the snow
blockades when business was a stand |
still and all communications between
this section of the country that the re- |
suit which was accomplished after |
strenuous efforts was a most marvel |
GUS crop in agricultural fields and |
great harvest. These great crops came |
as a reward for labor. Now we all I'M |
derstand that a small harvest reduces |
the volume of business and gives en- |
ployment to few, whereas, bount- |
eous harvest gives employment to |
everybody. The past year therefore, |
T-annrdc fha greatest volume Of business
ever known in any one year and 1T was |
especially beneficial to the wage Garner |
who tolls daily to provide for his fam |
lily and to educate his children. Greater |
production benefits labor by steady en- |
ployment and naturally at increased |
wages.
Capital Hard to Procure.
docs the volume of business make it |
as profitable for the capital employed ?
That question is worthy OF serious |
thought The gross returns or revenue !
received for line of business is not an |
absolute evidence of increased profit. !
We can readily see that the overhead |
charge is taken care of more easily af- |
ter the volume OF business reaches a |
certain point, but in handling that in |
creased business with corresponding !
n higher rate of wages according to the |
responsibility, additional fuel, special |
working equipment and with additional
higher corresponding increase In
operating expenses, when compared
with the increased revenue and when /
YOU permit the net profit to be re- |
Suced. the credit of the business is |
likely to be impaired. making 1t diff |
cult to secure additional capital at rea- |
sonable rates.
att is apparent that we are approach |
ing this condition with the railroads !
Take, for instance, the expansion OF |
railroad businessmen depots WIN |
their modern surroundings enlarged
terminals, more equipment, new meth-
MD TaTTT16 IF
lines. Money must actually be in the
treasury in anticipation of such ex-
penditures because it would not pc
wise to use the current funds which |
are needed to take care of daily ex-
penses because unlocked for disasters
or misfortunes may occur to require
the use of more funds than had been |
anticipated. This means, then, that
new capital must be secured to cover
all expansion, betterments and i'm
provements. The past years business
shows clearly that the railroad termi-
mails in all large commercial centers
/ must be enlarged to avoid congestion.
Equipment must be kept in good repair
for daily service and new equipment
purchaSed-in other words, the mana |
ger must plan ahead for better service
along all lines and in all departments
if he expects to keep pace with the
wonderful development of the country. |
Then, again, railroad achievement must
point of view in addition to taking into
consideration the welfare of the pub
lie which it serves. A transportation
company building for future existence
NJ and prosperity must ever consider its
patrons and their best welfare, but |
possibly the most important question
before the owners of the railroad as
well as the public in general. is the
maintaining of a financial credit unim-
paired. The selling of securities of a
railroad depends largely on it's ability
to pay for improvements out of it's
earnings in addition to paying divi-
dends and setting something aside for
surplus. Can this be sustained in the
s face of apparent conditions where rev.
enue is decreased and expenses in
creased?
Need Reimbursement of Rates.
THE vision of the interstate COM
& merce commission should be so enlarg-
ed in its scope of the general needs of
the entire country as to the transpor-
tation subject that it will consent to
readjustment in rates and a possible
4 advance where actually needed which
Il will enable the railroads to restore
VI and retain a proper credit by receiv-
mn ing increased revenue and thereby be
enabled to secure additional capital at
vi a fair rate of interest and carry out
great plans for expansion may be
4 needed to take care of this volume of
business in a proper manner.
ST believe the railroads are willing
n to provide large terminals and plenty
M of equipment to prevent the conges-
ton of business and thereby be able
to handle it at all seasons of the year
IN all sections to the satisfaction or
their patrons providing they are per-
through additional earnings In COM
--,erfiaT or industrial lines capital can