New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-17
Atchison Earns
More Despite
Higher Costs
Taxes Double and Payroll
Increases 33 Per Cent
in Year

Despite steadily mounting operating
expenses due to higher costs OF labol
and materials, the Atchison. Topeka &
Santa Fe Railway Company earned
net return of about 6.93 per cent OF
the property investment in the yea
ended June 30 last, compared with 81.
per cent the previous year.
The annual report issued yesterday
showed net income applicable to bono
interest and dividends Of s5l 1921 ,sl7
an increase OF S6,212,000 over 1916
Gross operating revenues Of the Atchi
son system were the largest on record
aggregating sl56,179,l20, an increase
Of S22,0O0,000 over the preceding year
Operating expenses amounted TO s96.
1888, sos, an increase of Sl2,600000
Charges for taxes were S9,S70,634, ar
increase of S3660.O00 over 1916. Or
account Of the heavy increase in Fed
eral taxes, il is stated in the report
that total taxes for the calendar year
Of 1917 may reach Sl2,000,000, or about
twice the annual average Of taxes fol
recent years.
Large Cash Holdings
The company had in its treasury or
June so last s39,0i7,7S7 in cash, anC
with its affiliated companies invested
during the year Sl4,713,600 in shor,
term notes and other liquid securities
Bond interest consumed Sl2,1l2,843
dividends on the preferred stock s6,
90S.6S5. and dividends on the common
stock Sl3,0il $50 After these charges
there remained Sl9,875.211, which Wa:
appropriated for additions and better
ments. OF this $11,000.000 was fol-
equipment. which is costing about
twice its normal cost. The payroll OF
NJ Atchison system for the last SIN
months Of the fiscal year was nearly
80 per cent in excess OF the payroll
for the corresponding period in 1915
Edward 2. Ripley, president OF the
Atchison, in his remarks TO the stock
holders of the company, saysi
Contrary 20 all Expectations, all Of
the abnormal reasons cited a year age
"a accounting for the company's large
revenues last year have been accentu
ated in the last twelve months. Not
only is the European war still IN active
progress, but our own country IS no"
participating in il and is spending
enormous sums for supplies and fol
TRANSPORTATION. The Pacific Coast IS
still without shipping via the Panama
Canal. The metal market has been IN
precedentedly active in all its branches
and this has largely increased our trai'
nc. especially in copper, zinc and lead
and the raw materials entering into
their production. The oil tonnage or
our lines still increases. Even oui
passenger traffic, which We believed
had reached its maximum with the two
great expositions on the Pacific Coast
has again shown an increase OF oyei
million dollars.
Equipment Inadequate
Owing 70 high prices and lack o.
labor, il has not been possible 10 ado
materially to equipment, and the re
suit has been that in the effort 70 han
die this enormous business every
nerve has been strained TO the utmost
and, even with all that could be done
the results have not always been VIVA
our patrons have been taught 70 eX
poet. Very much against the Will o
your directors and officers, it has beer
found absolutely necessary 10 place
orders for nearly four thousand car
of various types and for thirty engines
all of which were to have been deliy
cred during the calendar year an'
some of them during the fiscal year
but the needs and demands of the gov
eminent have taken precedence. an'
we are still struggling along as bes
we may. The prices we have contracted
60 pay for this equipment, when re
ceiyed. are almost double those Of I'VE
year ago
In the matter Of taxes, Mr.. RIPPLE,
saws the natural effect OF the war, will
its heavy expenditure, is TO stimulate
expenditure on the part OF states an
local governing bodies. much of which
it is greatly feared will prove TO b.
instructed and unproductlve. I'll
some quarters" he says, sit IS alread.
apparent that there is grave DANCE
that the conduct OF state and loca
affairs will become decidedly NOR
wasteful and inefficient at the yer.
time the need is greatest for MAXIM
the pest possible use OF OuI IeSoutCe
Of labor and msterials." Mr.. RIPPLE!
embassies the need of increased
freight rates as an Offset TO the risini
costs of operation. Expenses, he de
clares. are beginning to tell on all tn
carriers. and later conditions may cal
for renewal Of the application TO
relief.
That the efforts Of the Atchison man
agement for greater efficiency Of opera