The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-06-10
Shaky Rock Island Reports in
Topeka Are Dfscredited.
Drop i'm Wall Street Stocks Is
Not Accounted For.
NO little WORRY IN KANSAS
Receivership Rumors a Hard
Blow to Many Towns.
Business Is Good and Good
Year Is Anticipated.
What about the Rock Island !?

What about the Rock Island?
That is the question that is para
mount in Topeka railway circles
and among all persons, financially in
terested and otherwise, who watch the
rise and fall of stocks on Wall street
and the disposition of seemingly pow
erful railways to the wills of re-
ceivers.
The Rock Island has been making
a shady showing in New York lately
and the street" experts are unable
to account for it. The report has gone
out that the Rock Island with lot
of short time paper on it's hands is
preparing to follow the example set
by the Frisco and turn the tangle over
to receivers.
From a western standpoint, the
Rock Island is in good shape and the
scare is not taken seriously. Naturally
the road has been retrenching the last
few months in readiness for a "show-
ing" in the 1913 fiscal report. Main
tenance has been decreased and the
road has cut down all extraordinary
improvements until the first of next
month. This action has been felt in
Kansas, to be sure.
But from the reports of business
give out at the second district head
quarters of the road in Topeka, it is
apparent that the Rock Island will not
puted fact that the business this sea-
son is increasing and with the proper
care in operating expenses and in
maintenance cost, the road Will be
able to pull through the year with a
comfortable surplus.
The Rock Island at this time has
no floating debt and only $7,50O,000
in bonds mature this year. These
bonds mature in September. This is
a comparatively strong showing-lit-
tie worry is felt.
Here is a short history of the roads
recent financial transactions:
For several months the Rock Is
lands preferred and common stocks
have been among the inactive shares
contracting for weeks run as low
as 300 shares in common and $500
in preferred. Then all of a sudden
Wall street jumped from its bed and
found more than 49, 600 shares chang
ing hands at a new low record for the
year. The following week the price
still tumbled.
Then as fuel to the fire of startling
rumors, the per cent collateral trust
bonds which sold as high as 731 in
1912, Sc u in January and SO IS the
last week in May, dropped to So :.
still another low record. Then came
more rumors, more talk of hard times
and soon financial circles had it that
the Rock Island was ready for the re-
ceivers and Kansas and the west
heard dire reports on one of her IA
Vorite railroads.
The Rock Island horizon looks
brighter now. Wall street has gone
through the books of the road and has
found that although the reports last
year show a surplus of only 100000
after ) Il per cent was declared in
dividends, the gross and net earnings
have increased up into the millions
and the surplus this year above the
s per cent dividend undoubtedly will
reach $2,000,00O.
This will bring relief to Kansas
good many towns and hundreds of
railway men depend upon the condi-
ton of the road for labor, capital and
growth