Rensselaer Republican, Volume 22, Number 4, Rensselaer, Jasper County, 26 September 1889 — THE REORGANIZED ATCHISON. [ARTICLE]

THE REORGANIZED ATCHISON.

Gossip Concerning the Future Financial Policy of the Company. Commenting on the reorganization of the Atchison, Topeka & Santa Fe railroad company and the resignation of President Strong the Railway Re- ; view says: “It has of course occasioned a great deal of gossip as to the Santa Fe’s finances and its future policy. The Santa Fe is unquestionably in

very bad shape financially; it is practically bankrupt and were it not for aflvances made by the banking interests which lately took hoM otTfid" property it would now be in the hands of a receiver. There is a practical certainty that the road will yet go into the courts unless the bankers again advance moneys to pay its fixed charges. They will in all probability do this, for they have interests at stake which would be seriously imperilled if the Santa Fe were to default. The Barings, who with others are behind Banker Magoun, now the chairman of the Santa Fe directory, have placed vast sums in American railway bonds, ft has been stated (and we learn through excellent authority that the statement is true) that the Barings have, during the last five years, placed over $500,000,000 of foreign money in American railway bonds and that it is their proud boast that default has not been made upon $1 of this vast investment. In the nature of things they cannot afford to allow Santa Fe to default, and thus break their brilliant record; and there is good reason to believe that they will not. Say that $2,.500,000*was put up this year to carry Santa Fe, and that as much more will be required at Hie expiration of the current half year, this $-5,00'), 030 would be but a bagatelle to the Barings and their fellow operators, as compared to the enormous values which would be jeopardized by a default by the Santa Fe. If these banking interests carry this property along in this manner it is possible that, upon the expiration of a second six months, affairs —traffic and general—will be in such condition that it will be feasible to refund the Santa Fe’s indebtedness at lower rates, and readjust its finances under a general mortgage, as the Reading, the St Paul, and the Northern Pacific have found it advisable and practicable to do. The policy of those now directing the Santa Fe’s affairs is. as far as it can now be interpreted, apparently leading to some such end. “Mr. Strong’s position is one in which he seems to have been unfairly thrust. All who are acquainted with the Santa Fe system and with Mr. Strong’s abilities and methods know it is eminently unjust to charge up the present deplorable condition of the property to him. Mr. Strong was distinctively the right man in the right place for the S uita Fe until he was taken east against his desire to assume duties for which he was not! fitted, and which he performed under the direction of those who are responsible for the present condition of the property. With the necessity for a radical change of policy, however, it' became desirable, in the eyes of the directory, to change the executive, and accordingly Mr. Strong leaves the road which he has so ably served for years. It looks vory - thongh" a'Sch'pegoat was needed and quickly found.”