The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-04-14
Santa Fe'S Kansas Business
Earned Poor Return
According to Geo. w. Oliver,
Assistant Statistician.
MADE .35 PER CENT LAST YEAR
But Paid 5 and 6 Per Cent
Over System.
Some Startling Figures in Pas
senger Rate Case.

To pay five and six per cent divi-
dend, the Santa Fe was compelled 10
make it's earnings on business other
than that done in Kansas. according 10
the testimony today before the public
utilities commission by George W.
Oliver of Chicago. assistant StatlStlclan
commission in the passenger rate case,
Oliver said that the company last
year paid but OBS per cent net on its
Kansas business.
Nearly the entire morning session
was confined to a cross examination
of the witness concerning his figures
He offered into the hearing the santa
Fe formula as applied to Kansas 10
show earnings and distribution of ex-
pense In some instances, he admit
ted the Oklahoma formula had been
dropped since it had not been actually
employed in the state; me use OF
caustic remarks from Chairman Bris-
tow and close inquiry into the earn
ings of the Santa Fe over its entire
system
Lost Money on Freight.
''Your figures show that you lost
money on your freight business in
Kansas last year," asked Bristow.
Yes" was the reply.
You would have been better off
without any state business" sarcas-
tically asked the commission chair
Il would not say that. That is a
question for the traffic department to
Settle
Paid n Dividend on All.
What dividend did the Santa Fe
pay last year," Bristow asked.
Five per cent on preferred, six on
common was the reply.
where did you make the money!"
From business other than Kansas
intrastate-
Where would we ascertain, then,
where the Santa Fe makes its mon
ey?" persisted the chairman.
80, 6r1of oF-xr
thorough examination" said Oliver.
I'VE do not claim, though. that all
rates such as these are confiScatory.
In his testimony oliver said that
dividend over the entire system was
paid on an investment of a little more
than $4,000 a mile. In Kansas, he
said, the state business had produced
net earning on passenger and freight
business of something like One-half of
one per cent.
Opened Their Eyes.
divers testimony was eye
opener in the explanation of railroad
operation in Kansas. Offering six ex-
hibitS in his testimony before the COM
mission, Oliver showed step by step
the method of distributing earnings
and expenses and concluded with the
startling statement that in the last
two years the road had not earned an
average of one-half of one per cent
net from its state business on it's Kan
sas properties. The road had an as
lion in the state. For the purpose of
the investigation, the various rail
roads are standing on their assessed
valuations.
Expense of handling intrastate
freight business has exceeded receipts
according to the figures produced by
Oliver. On the other hand intrastate
passenger business has shown a profit
of little more than two per cent,
from which the Santa F'e deducted its
freight loss.
Receipts and Expenses.
In 1913, Oliver testified, the Santa
F'e collected in interstate freight re-
ceipts $$3,646,985.26, against which
was charged an expense of $685.
4S6-S7, or a loss of $175, 5O1.61 State
passenger receipts totaled $2,476,-
515.O1, with an expense of Sofa
6OS.57, or a profit of $223,4O483
This amount, Oliver testified, was a
passenger earning of 2.67 per cent, or
a net earning for 1913 of 052 per
cent.
Records for 1914. as shown by Oil
yer's testimony, were: Freight re-
ceipts, s3.3OS. S21.14; expense. s3.51e.-
5S1.43; loss, $21O,71O.29. Passenger
receipts, $2.3SS.245.37; expense, So
e31 251.O0; earnings, $356,99437. Pas
senger earnings on investment 231
per cent Net earnings, freight and
passenger business in state, OBS.
Paid Employees More
OllVer'S testimony and records did
not stop with mere general figures on
earnings. He showed that in the fis-
cal year ending June 80, 1914, en-
ployees of the Santa Fe in Kansas
exclusive of employees in the general