The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-05-02

on the subject. .ss
FOR instance: On the basis of the Santa
Fe's annual financial requirements to take
care of taxes, fixed charges, and other
obligations, the railroad ought to have
net earnings of approximately 45,000,00o
per year, or an average of $5,7jo,000 per
month. Does it have such earnings? 1t
does not the company's managers say.
The amount of the net revenue required
for the three months ended February IS,
1921, was SIP 10000, while the actual rev.
enue in that period amounted to only
81 lis, 600, which is scarcely enough to pay
for three months proportion of taxes
and rentals, leaving nothing for fixed
pany. That is what the company's officers
told the employees to show the need OF re-
trenehment.
Operate At Loss.
without taking dividends into consid-
Grafton at all, the Santa Fe was operated
in February at a loss of more than $1,000
900. the managers declared. Not a dollar
earned for interest on bonds or Tor
surplus to carry on business or TO sustain an
the company's financial standing. In the
two preceding months, December ana jan
uary, owing to the marked decline in busi-
ness and the abnormal wages somewhat
the ret operating income amounted to
only S1,12i ,335, which was barely suf-
fleient to pay interest on b Gssic,t aH Of
$50. III. Taking the two months together
there was not sufficient earned to pay the
interest on bonds and nothing for d1vi-
Here is another bit of inside informa-
ton. On April IA the number OF empty
cars on the Santa Fe was 3l,O10, when
means that approximately 40 per cent OF
the freight cars owned by the railway
which ought to be earning revenue are
tied up and earning nothing: In the
eight months ended November 30 192O, the
average number of loaded cars offered for
movement was 4,12s per day. and in the
1921. the average was 3,46O per uay, d ue-
crease of approximately 1G per cent In
the months Of January. Iep 1nadcG ans ans
offered for movement was an average 9I
3,431 per day, against an average 600 OF 4'iSo
per day in the same months OIL l9zo' ue-
crease of IS per cent.
Payroll Increased ZIG Per Cent.
"The Santa Fe told its employees it could
not operate and continue to pay the hlgn
scale of wages established during anu al
ter the war. From 1917 to 1920 the payfoiL
of the Santa Fe increased nearly 111 per
cent the average yearly wages of employees
Increasing approximately 6S per cent in that
period. -.
cents of every dollar that the railroad re-
ceives from operation is paid out in wages.
The remaining 40 cents is not sufficient to
buy fuel and other materials and supplles
and pay taxes and other obligations.
Comparing September, 1920, with FEB
ruary, 1921. operating revenues snow &c
crease of approximately $5,45o,000 or about
% per cent. Operating expenses, taxes ana
rentals in the month of February, III ao e ex-
ceeded the operating revenues by $29S
and for the months Of January and Febru-
airy the operating expenses. taxes and rent
1894 O04 Thus it cost the Santa Fe more
than one dollar in expenses to earn dollar
in revenue in those two months without
considering its fixed charges and other
obligations.
Saws ReadJustment Period Has Come.
ssTbe Santa Fe takes the position that
the period of reimbursement has now come.
and as the cost of living has been on the
downward scale for some months, 1t Is
obvious that the country has entered upon
the period of declining prices, which IS