Evening star., 1926-11-17
MEN AND MONEY
By NJ. S. Rukeyser.
(Copyright. 1o26.)

Inc Atcn1Son, Topeka & santa re
Railroad, which the late Jacob H.
Schiff reorganized in 1895, and which
since developed into one of the
strongest systems in the world, is
at new crest of prosperity this
year.
1t has long been the policy of the
Atch1son management to plough back
a large share of current earnings
| into the property to get it ready for
the economic growth Of the West
and Southwest through which it's eX-
tensive lines run.
discussed the position of the road
with w. B. Storey, the president,
who is an example Of the engineer
ing mind in one of the highest
posts in business. Mr.. Storey is one
of the few successful railroad men
who did not start at the bottom. / ike
Gen. w. w. Atterbury, head of the
Pennsylvania system, Mr.. Storey en-
tered railroading as college gradu-
ate. After getting the Phi. B. de-
gree from the University Of Cali
fornia in 1881, he became assistant
engineer on the Southern Pacific. He
entered the Atchison system in 1900
in the engineering department and
became vice president in 1909. After
serving as federal manager during
the war, Mr.. Storey became president
of the system six years ago.
Appearance of Scholar.
He lives in Chicago, but is a native
of San Francisco. Mr.. Storey's hair
and beard have turned partly gray.
Tfe has blue eyes. In appearance he
suggests a scholar.
"In the first nine months Of this
year." said Mr.. Storey, "the system
ran $13,000,000 ahead of last year in
net earnings. Although the last three
months of 1925 were big, I think we
shall hold this 100000 gain for
the full calendar year. If so, our
earnings in 1926 will prove the largest
in the history of the company. The
improvement has been due primarily
to an increase IT, the volume OF freight
and to our ability to move freight
rapidly and thus take care Of the
business available.
"The swiftness with which we were
able to move this record volume Of
freight reveals the usefulness Of ex-
penditures made in recent years for
improving terminal facilities, for build
ing new branches into hitherto little
developed territories and in laying
down extra tracks in congested places.
The growth in volume represented
primarily agricultural products and
Oil from the Panhandle Of Texas
There has also been a normal rate of
growth among industries along our
lines. The Kansas districts through
which we pass had a bumper wheat
crop"
Short Term Outlook.
Asked concerning the short term
business outlook, Mr.. Storey said he
saw no reason to be pessimistic, and
that he believed that new crops would
be satisfactory. California, he said,
needs rain.
"As the volume of freight has
risen, passenger business has become
progressively less important. A dec
ade ago revenues in dollars from
passenger service constituted one
third of our transportation income.
In 1925 it represented only 20 per
cent. The trend continues downward.
AS a result of the competition of au
tomobiles and busses, we have lost
most Of our short haul passenger
business. We must continue some
trains to carry the mails and meet
the public demand. On rainy days,
when the roads are bad, passengers
use the trains instead of motor We
hicles. We still do a substantial long
haul passenger business, but this rep
resents primarily Pullman car traffic
and is somewhat less profitable than
the other business"
Mr.. Storey is one Of those who be-
lieves Western freight rates are too
low in spite Of indicated earnings Of
more than $22 a share on the common
stock of the Atchison for 1926. OF
course. the Atchison is an exception.
The other Western roads are not far
ing so well.
Pay Low Interest.
In commenting on this Mr.. Storey
remarked: I'VE show such large earn
lngs per share on the common be.
cause on our large bonded indebted
ness we pay only an average Of Al
per cent interest. Moreover, on our