The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-10-10
Executive Tells Of High Cost
Of Living in Report
I'm ONE YEAR FIVE MILLION
Santa Fe Head Takes Occasion
to Offer Criticisms.
Claws Arc Expensive, Unneces.
sary and Superduous.

Inc SduCa re railway COHlRhAAy .
taxes have Increased 1873 per cent in the |
last ten years. according to a report |
received in Topeka today. Evidently |
this increase il not in tune with Presf- |
dent e. p. Ripley's idea of the rapidly
in which the "cost Of living for rail-
road should advance. Tor he takes q shot
at governmental taxing machinery In
his nineteenth annual report to the
company's stockholders.
The Santa FEES taxes for 1914 amount
to $685., $3.50. This IL nearly $4,000
every day in the year. while the COM
pany's taxes have increased 1873 per cent
in ten years." President Ripley says,
1.-The investment in the property has in
creased in that time less than 20 per
cent. and the net income available for
taxes, interest and dividends has in
creased less than As per cent. Our taxes
require II per cent of the total net in
come available for the purposes named.
| creased 50 per cent. They have in
| creased more than - per cent since
1872
Continuing Mr.. Ripley says: while
there are various contributing causes to
this condition (including the expiration
Of some tax exemptions IN Arizona and
New Mexico). the principal cause. which
CONTINUES In apparently increasing force,
is the disposition to increase public ex-
penditures shown by practically all
governmental agencies Of the states,
cities. counties and taxing districts (not
to mention the federal government.
whose tax burdens to a large extent fall
fore. are not fully reflected in the
amount Of railroad taxes paid). Gov
iernmental agencies generally counsel
the railroads to increase their economies
and to improve their efficiency. and
stern necessity, even II there were no
af iva kAa
companies to do this; but there is moth
ing to indicate that the governmental
i agencies themselves have practiced
what they have preached in this re-
spect. The evidences OF extravaganza
in all grades Of governmental activity
are very numerous and the evidences Of
governmental economies are exceeding
~ rare. The result is proving danger
ously burdensome to the railroad prop
critics Of the country"
II Directors Responsibilities.
MI. Ripley calls attention to the
heavy responsibilities devolving upon
directors in the present state Of gov.
railroad industries. without CRITICS.
ing the policy Of proper supervision
Mr.. Ripley says, 1T is fair to say thai
} many OF the laws enacted are not only
} expensive. but unnecessary and super
huous. Constant whiting OF rates
plus constant legislation which add.
to expenses without adding to reye.
nue., have had their Inevitable effect
There are some evidences of a dispo.
sitiOn on the part Of those in author.
ity to realize that great injustice haa
, been done in the guise of regulation
, and that 1t Is time to call a halt, but
the relief which the railroads need
cannot come until this disposition
shall be transmitted from mere ex
pressions of friendliness into positive
remedial measures. General words O.
sympathy will accomplish nothing Il
governmental agencies continue IL
. each specific instance to impose add
! tional burdens or to find excuses FOL
not granting specific relief. Henc,
> your directors deem 1t their dut,
. again to warn stockholders that thei
; interests are more endangered by tn
. various governmental regulations thar
from any other source.
Labor Attitude.
, But in making the foregoing state
: ment the threatening attitude Of tn
| labor organizations must not be los
;. sight OF as a vigorous second in tn
e menace OF the times. Your compan
: has always shown the utmost consid
: GRAFTON for it's employees, and as
Q class they are a credit to themselve
Y and to the road. Left to themselve
n there would be little Of which to com
Q have been aggressively demanding in
y creased wages for their members wit
>. no regard for the ability Of their EN-
. ployers to pay, and have been stead
. lily demanding, and frequently wit
!. success, many varieties OF Legislation
!. such as full-crew bills, designed to in
% crease operating expenses. Betwee
the repressive forces Of governmeY
, and the demands of organized labe
1t is evident that the sum remainin
as the share Of invested capital is
serious danger.
Under these conditions 1t is tt
intention Of your directors to mal
no additions or betterments, howevs
desirable, which cannot be paid Il
out of current earnings, and to col
tinue the policy OF mourning no hoa
ing debt"
Fifth Victim of Storm.