The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-04-18
Increased Operating Income by
Practice of Rigid Economy.
Reduction of s31,4S4,OOO Made
in Operating Expenses.
NET REVENUE S55,7O7, 154
Freight Business Was Greatest
in History of Company.
Number of Passengers Carried
Was III, 165,96O in 1921.

issued by E. L. Copeland, secretary
! treasurer. in advance of the coming
| stockholders meeting, not only shows
I that the company by exercising rigid
| economy was able to increase its net
/ operating income in 1921 despite the
4 unfavorable business conditions, but
/ officials say it should settle forever in
I a pronounced negative way the ques-
tion of watered stock in the Santa Fe.
The report shows that the COM
pany's property investment as brought
up to its present high condition is
/ SS4S, 900, 900. against which 1t has is
sued preferred and common stock in
/ round numbers amounting to $780,
/ 100000. and it's funded Indebtedness,
which means outstanding bonds in the
| hands of the public. amounts to ap-
/ proximately $500. 100000. making a
total of 100000, such amount
/ being less than $4,000. 900 of the prop
/ erty investment" said Mr.. Copeland
/ today, which settles the question of
watered stock
The value of the company, as listed
| by Mr.. Copeland, is divided in the
following manner: The road and prop
erty, $615.000,000; equipment 1884,
600, 900; terminal and collateral COM
panies and other investments. S49.-
100000, making a total of SS4S. 000,-
\ 900 as shown in the report as the
property investment.
Economy Is Practiced.
| A program of the strictest economy
u
| ing last year. The gross returns in
1921 were $685. 900 under that of
1920, a condition which Mr.. Copeland
says was due to the depression in al
most all lines of business last year.
\ but thru efficient management a re-
duction of S31,4S4,000 was made in
\ operating expenses over 1920, causing
the net operating income to actually
show an increase of $3,SS7,0OO.
In referring to the economy pro-
gram which caused the company to
! show a profit, Mr.. Copeland said: Tn
/ the year 1921 expenditures for main
tenance of way and structures were
! $31, $4,000 as against $4O.121,000 the
/ year before; maintenance of equip
ment, $50, 472.00O, as against $5S,275,-
/ 600; cost of transportation, $50, 282,-
600 as against $9S, 5000.
las a result of these reductions in
operating expenses, there was a net
operating income of S55, 100000. AT
ter deducting $14,S36.OOO in tax ac-
cruals and some equipment rents, we
had a net operating income of SAL
! 26S.OOO. or an increase of $3,SS7,0 900
over 1920. .
After paying the fixed charges of
i S11,953, 900, we had left a net cor
/ porate income available for paying
| dividends, and surplus, of $29, 331, 900.
/ out of this was deducted the require
ments of the preferred stock, amount
! ing to S6,2OS,6S5, leaving a balance
/ earned on the common stock equal to
about 14.5 per cent. Limiting the
dividend on common stock to per
cent there was a surplus of $1e.4S5,-
| 900 carried to the credit of profit and
loss. Adding this amount to the pre-
vious surplus there is now standing to
the credit of profit and loss a total of
$107,O00,0OO to go back into the prop
erty in the way of improvements.
Capital Stock Increased.
1.-The net increase in the capital
stock account during the year was
/ S27,5S4,0O0, making a total charge to
/ the capital account of SS4S,S31, 600"
1.-The traffic in 1921 was well diver
sified. agricultural products carrying
the highest percentage of tonnage and
the percentage of manufactured prod
ucts and merchandise was well main
tanned. The traffic figures show that
/ the production and movement of
1 freight was large and that most of
( the depression was due to price only
The payment of interest on bonds and
/ the maintenance of the usual divi-
dends has made the securities OF the
Santa Fe more stable, indicating that
the public has full confidence in its
management and efficiency. All
things considered, the company made
! a good showing last year, and if bust
ness for the year 1922 meets our
present optimistic view, the earnings
should be maintained"
| The total operating revenues In
l1921 were S22S. 925, O69.91, and after
/ deducting S173,217 ,915.43 for operat-
| ing expenses, there was a net operat-
ing revenue of s55.707, 1544S. The
gross operating revenues in 1921 were
S19,6O3 per mile, the greatest in the
I history of the company. with the ex-
/ ception of 1890. when they were $21,-
/ 94S per mile. The operating expenses,
/ including taxes, were $14,95S per mile,
! also the greatest except in 1920, when
they were S19,s62 per mile.
Freight revenue in 1921 was $780,
| 217,450. the greatest in the history
/ of the company, excepting 1920, when
| 1t reached $16s,472,129. The COM
\ pany's revenue in 1921 was 52.549,-
| $50, which was lower than it was in
\ either 1920 or 1919.
The number of tons OF revenue
| freight carried in 1921 was 29,059,53
again 36.s5O,55 in 1920. The number
of tons of revenue freight carried one
mile in 1921 was 10,3T5 ,037. $50
| against 2.SO6, 12S.501 in 1920. The
| average distance per top of revenue
| freight carried was 357.03 miles in
1921. compared with 347.52 miles the
] year before. The average revenue per
| ton in 1921 was 1851 against $4.5I
! in 1890. In miles it was 1874 cents
per miles in 1921 and 1916 cents the
| year previous
Passenger Business Fell Off.
The number of passengers carried
| in 1921 was 11.165.96O against 49,
! 656,333 in 1920. The number of pas
/ sengers carried one mile last year was
| Los 80 D tOz' ana III 1s1Vr 1,1eSs 20 :
| SIS The average distance Travelled
by each passenger in 1921 was 1885
| miles. while in 1920 the average trav-
eler went a trifle farther, 1888 miles.
The increase in rates is shown in the
| average revenue per passenger, it hav-
ing been SAT- last year against $4.05
IN 1920. The average revenue Per
passenger mile in cents was 3-400 In
1921 and 2.S99 the year before.
a, net charge of S15.1OS,eO5-94 for
equipment is analysed in the report as
, follows: Fifty locomotives. $3,2S6,-
1885; S.459 freight train cars. s12,-
912. 1880; one passenger train car.
S1a 5O0- I94 miscellaneous work ca ~