OF THE BOARD OF RAILROAD COMMISSIONERS FOR THE Year Ending December 1, 1884. STATE OF KANSAS. TOPEKA, KANSAS: KANSAS PUBLISHING HOUSE: T. D. THACHER, STATE PRINTER. 1884. REPORT. Hon. George W. Glick, Governor of the State of Kansas: SIR-In accordance with the requirements of the provisions of section 6 of the act of the Legislature of Kansas, approved March 6, 1883, concerning railroads and other common carriers, we have the honor herewith to submit to you our second annual report. In this report we have included statements and statistics gathered from the returns to this office of the various railroad companies operating in this State, and such of the decisions rendered by the Board in the settlement of controversies and complaints as would in our judgment tend to throw light upon the workings of the system of railroad transportation in the State, in so far as the same are affected by the regulative features of the law. The Board are in numerous instances able to settle causes of complaint without the necessity for formal investigation and decision, either through personal interviews with railroad officers, or through correspondence. The orders and recommendations of the Board have during the past year been, in nearly every instance, adopted and obeyed by the managers of railroads. They have quite promptly and adequately responded to the requests of the Board for information pertaining to their roads. Railroad building has been much less active the past year than it had been for several years previous. In this State for the year ending June 30, 884, 141.28 miles of additional main track had been built, and 9.15 miles of additional side track. Upon several of the leading lines or systems of railroads there has been a material falling-off of earnings compared with the preceding year. On the Atchison, Topeka & Santa Fé road, including branch lines, the gross earnings for the year ending June 30, 1884, were $13,875,889.47 against $14,609,998,02 for the preceding year, a decrease of $734,108.55. The operating expenses were less in 1884 than in 1883 by $509,681.91, still leaving a net decrease of income from earnings of $224,426,64 compared with the previous year. The Missouri Pacific shows a decrease of gross earnings for the past year compared with the previous year of $97,035.69, viz.: Gross earnings for 1883, $9,207,225.99; for 1884, $9,110,190.30. The reported operating expenses for the year ending June 30, 1884, were less than the correspond ing period of the year before by $300,387.67, leaving an increase of net earnings of $203,351.98. The greatest falling-off in earnings is observed in the Union Pacific system, embracing the Union Pacific, Kansas Pacific, and Denver roads. The total gross earnings of the consolidated Union Pacific railroads amounted in 1884, to $19,077,483, against $21,979,668 in 1883, or a decrease for the year ending June 30, 1884, of $2,902,185. The operating expenses of the past year have been larger than the year before by $435,184, making a decrease of revenue from earnings for the past year over the previous year of $3,337,368. Taking the Kansas Division of the Union Pacific, the comparative earnings and expenses for the past two years stand thus: Gross earnings for the year ending June 30, 1883, $3,415,719.47; for 1884, $3,232,595.30-a fallingoff of $183,124.17. The passenger earnings have diminished the past year over the previous year, $166,151.58. A similar diminution in the passenger earnings of the A. T. & S. F. road is also observable. It was thought at the time the reduction in passenger fares was effected that the reduced fares would serve to stimulate travel to an extent sufficient to make good the former revenue receipts from this source, but this expectation has not been realized. The Kansas Central (narrow gauge) shows an increase in gross earnings over the year before of $42,232.43. The operating expenses, however, exceed the gross earnings by $53,319. 97, leaving the taxes and interest on mortgages hypothecated on the road to be provided for from some other source. The other auxiliary lines in Kansas belonging to the Union Pacific system show considerable increase in business and gross earnings. The following roads show an increase of gross and net earnings for the past year compared with 1883: Manhattan, Alma & Burlingame R. R., increase of gross earnings, $7,716.69; net increase, $4,058.71. Atchison & Nebraska, increase of gross earnings, $4,386.52; net increase, $25,546.75. Kansas City, Fort Scott & Gulf R. R., increase in gross earnings, $436,038.87; in net earnings, increase $200,154.35. Missouri, Kansas & Texas R. R., increase in gross earnings over 1883, $399,722.84; net increase, 293,463.80. The Central Branch shows an increase in gross earnings of $227,767.92; of net earnings, $83,035.06. The St. Louis, Fort Scott & Wichita has more than doubled its earnings of the previous year. The line however, was only completed through to Wichita one year ago last July, and the last year's earnings are derived from the operation of a longer line than was reported for the year before. The St. Louis & San Francisco R. R. shows an increase in gross earnings over 1883 of $546,338.73; net increase, $224,109.31. The following new companies have been formed since our last report, the results of whose operations are herewith given, viz.: Wichita & Western, length of road constructed, 48.83 miles; amount of capital stock issued, $1,000,500; floating debt contracted, $581,989.99. Kansas City & Emporia Railway Company, length of road constructed, 59.42 miles; amount of stock issued; $911,400; amount of bonded debt, $959,000; floating debt, $10,808.18. Kansas Southern Railway Company, length of road constructed, 42.18 miles; capital stock issued, $405,000; bonded debt, $529,000. Several companies reporting to this office report an increase in the bonded debt over the amount reported in 1883, viz.: The Atchison, Topeka & Santa Fé, increase $2,785,000. The Wichita & Southwestern, increase $170,000. Five additional miles of road are also reported for this company, constructed the past year. The Kansas City, Lawrence & Southern Kansas, increase in bonded debt, $867,000. Sixty-five miles additional railroad are also reported. The Pleasant Hill & DeSoto reports $12,500 additional debt. The Kansas City, Fort Scott & Gulf reports an increase of $632,600. The Missouri Pacific reports an increase in bonded debt over 1883 of $2,000,000, and additional road, 29 miles of which is reported in Kansas. The Missouri, Kansas & Texas reports an increase of $110,000. The following roads paid dividends upon stock: The Atchison, Topeka & Santa Fé, 6 per cent.; in amount, $3,414,658.50. The Southern Kansas, 3 per cent.; in amount, $112,302. The Kansas City, Fort Scott & Gulf, 8 per cent. on preferred and 3 per cent. on common stock; in amount, $359,372. The Missouri Pacific, 7 per cent.; in amount, $2,097,705.17. The Union Pacific: we are unable to say, at this writing, whether this company has declared a dividend on stock the past year, or not. Its report to this office has been delayed by reason of a misunderstanding between the Board and the company. For the year ending June 30, 1883, the Union Pacific Company declared a dividend of 7 per cent. We estimate that after paying out of earnings from all sources for the year 1884 operating expenses, taxes, interest on bonded debt, and the United States sinking fund requirements, the surplus will be less than the year before by at least one-half. The Government sinking-fund reqirement upon the Union Pacific is 25 per cent. of net earnings; and upon the subsidized portion of the Kansas Division, 5 per cent. The St. Louis & San Francisco Company paid a dividend of 7 per cent. upon first preferred stock only, amounting to $315,000. INSPECTION OF RAILROADS, AND RECOMMENDATIONS CONCERNING THE SAME. The Board has from time to time made such inspections and examinations of the railroads of the State, their equipment, and the manner in which |