The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-12-20
Santa Fe Challenges
Capper's Railroad Figures.
Says Kansas Senator Has Been
MiSinfOrmed About Rates.
ALL OF SURPLUS is SPENT
Heavy Business Does Not Mean
Heavy Earnings, He Says.
Suggests That Labor Costs Be
Reduced to Aid Farmers.

Figures on railroad earnings used
by Senator Arthur Capper in his now
famous speech in the United States
senate on November % on freight
rates. are challenged by W. 3. Storey.
president Of the santa Fe. in a letter
addressed to the Kansas senator from
Chicago.
You use as the basis for your con-
clusions certain figures as to the fl
nancial condition OF the Santa Fe.
and as these figures are totally at vari-
ance with the facts. l feel that I
am justified in writing you on the
subject and pointing out the real sit
uation about which you have evil
IDENTIFY been misinformed," the rail-
road man says
His letter continues as follows:
Figures On Earnings Wrong
You say that this year the Santa Fe
IS earning about % per cent on ITS
preferred stock and 10 per cent on its
common The actual figures are as
follows. our earnings for the first ten
months have been s29, 1857, 141 which
gives us our ten months proportion
OF Cd bond interest. CD the per cent
on preferred stock. and 90 the per
cent for common, with S2,604,4O5 for
surplus. which is IL per cent on the
common stock
ing expenses of the Santa Fe absorbed
SS0.000.OO0. it put SS4.OOOrO0O into
improvements and il added 100000
600 TO its surplus The figures are as
follows:
.Om operating expenses were
SL732179I5. of which SS0.263.6 SIS
was transportation, S3,4S4.l22 nam
tenance OF way, and S0z, Z.S4
maintenance of equipment It must
be that the persons giving you the
figures had mistaken maintenance Tor
improvements. Maintenance IS up
keep-putting, in a tie when one has
H. 4
worn too thin. repairing cars and 10
comotives, and is just as necessary for,
handling the business as the use or
coal or the employment OF the train
mea-
spent Surplus anG Then Some.
Relative to the t-.enty millions
carried to surplus, 1 would point out
that our capital expenditures were
SZ7.5S4.9s6, of when s15,S62,6O
went for new cars ana locomotives.
and $11.7Z2. $50 for additions better
ments. and new lines Cor. using your
words. improvements, 50 that we
used our entire surplus and more than
seven millions additional in providing
additional facilities.
You cha rye US with increasing our
surplus in seven years from $50. OOO,-
not know that while this word sur
plus is used by the interstate COM
ruerce commission it does not mean.
cash in hand It has been invested
-lSL as the surplus OF last year was
invested. namely. in charging our IA
cilities To take care of the growing
needs OF the country.
Il have not analysed the figures
you have given about other roads. /
but judging by the above L fear they
also contain inaccuracies and hence
will create a wrong impression.
You speak of peaches rOtting. i'm
plying that they rotted because of
high freight rates I do not know ,
a bout paachez- but I know cranes rot (
ted in California. because we could not !
furnish cars. and yet we had pur-
chased $500 additional refrigerator |
cars last year with part OF that sur |