The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-10-12
Santa Fe Annual Report, Out
Today, Discouraging.
Heavy Decrease in Both Freight
and Passenger.
SMALL SLUMP m OPERATION
Road Was Able to Slice $4,000
900 From Expenses.
Millions Spent for Improve
NEUTRALITY-SUSPICIOUS..


The annual financial report of the
Atchison. Topeka and Santa Fe rail-
way given out in Topeka today shows
q decrease in the net income OF the
system for the fiscal year ending June
30, 1914, compared with the previous
year. This report will be formally
submitted to the stockholders OF the
road at the annual meeting to be held
in Topeka October %.
There was a heavy decrease in both
freight and passenger revenue for the
year, Freight revenue for 1914
amounted to $73,63S,38S, compared to
S7S.19O,923 for the year previous.
Passenger revenue for 1911. $28,4S7,-
433; for 1913, $29.425.s22, making a
total operating revenue TOT sn,s sss.
The retrenchment plan Of the rail-
way evidently had it's fruits, as the to-
tai operating expenses dropped from
$77,642,535 in 1913. to $73,469,SS4 IN
1914. This decrease was due to a drop
in the maintenance Of way and struc-
lures and also in transportation ex-
penses. Taxes, however. took, q CON
siderable jump, from $4,662,152 In
1913 to $5,525,585 in 1914. The net
income for 1914 was $20.1S3,965;
1913. $22.153.734.
Money for improvements.
The fiscal year just ended has not
been a prosperous one for the SANTA
Fee. However. $2.673,00O was spent
for the construction and acquisition OF
new mileage, in addition to $13.2S4,-
900 spent for additions and better
ments and additional equipment. Inc
policy of the Santa Fe has always
been to put surplus earnings into q
1v1t rHf t1n
which have kept the earnings up to a
standard figure of the last few years
when many other lines operating IN
the same territory have had bad
slumps.
In 1914, the surplus current earn
ings available for expenditure on ad-
difions and betterments or extensions,
after the payment of interest charges
and dividends, was 2,719,OOO. 1t Will
be seen, therefore," comments the
Railway Age Gazette, "how radical ana
drastic would be the change In the
course of the Santa Fee II increased
earnings do not make available larg-
er sum than $2,7O0.0O0 for additions
and betterments. or II there ID no
change for the better In money conol.
lions which will warrant a cnange OF
policy on the part of the manage
ment."
The Santa sFeroperateo 1e,sNs -mNss
NJ road. an increase in mileage frgm
1919 to 1914 Of 1870 miles During the
wears 1897 to 1914, the average earn
grown from $4,752 in 1897, to $1O,lS6
in 1914.
Property Values Doubled.
The Santa FEES actual property value
almost doubled from 1897. to 1914. In
1897. the total property invested, ex-
Guiding working capital. amounted 10
$685., 1857 900 and the income Tor that year
nj this in
vestment. In 1907, property investment
had Increased to $519, 0O4, 900 and the in
come was an amount equal to 6.3l on
this investment. In 1909, total property
invested was $54S, PSI 900 and income
$33, 535, 900 or Gil per cent. In 1914. prop
erty investment was 1851, 429, 900. an in
crease Of more than $780, 600 since
1909, while income was but $33 100000.
slightly less than in 1909 and represent
ing but sos per cent on the investment.
The tonnage Of freight carried in
1914 was 25, O34. 900, or only a compare
lively small number of tons less than
carried in 1913 On the other hand. the
average length of haul in 1914 was but
292 miles, as against 81 miles for 1913.
Couldn't Reduce Expenses.
1t was impossible to reduce operat-
ing expenses to an amount that would
offset the decrease in business. The
reduction in operating expenses OF
$4,173,OO0 was due to a smaller ex-
penditure in maintenance by $2,746,-
900 and the reduction in transporta-
ton expenses of $1,317,00O. Detailed
expense accounts show that the prin-
cipal reductions in right Of way were
in the amounts spent for track labor,
for bridges, trestles and culverts, and
for buildings, fixtures and grounds.
The economies for transportation
expenses were due, apparently. to a
reduction in freight train mileage,
which reduction hOwever waS not
quite commensurate with the falling
off in ton mileage. The decrease in
ton mileage was 8.O7 per cent; the de-
crease in freight train mileage, 6.98
per cent. The average train load in
1914 was 420 tons and In 1918, 425
tona.
At the end of 1914 there was $685.
9S5,0O0 stock outstanding and $313,-
$4,000 bonds. 4e