Selections From The Splinters - Volume 12

This is not a history. | The Splinters - Volume 12 | The Splinters - Volume 14 The Splinters - Volume 23

Topeka, Kansas, November ll, 1884

PERSONAL

W. B. Strong, Esq.,
President, Boston, Mass.

Dear Sir:

After securing statements from our Auditor, our business into Kansas City and beyond, I have asked Mr. Goddard, to prepare an estimate as to probable safe earnings of a line constructed between Kansas City and Chicago.

You will see from his letter herewith attached that his estimate of gross earnings which it appears to me to be on a safe basis including the Southern Kansas, would amount to $2,400,000.00 outside of any local business between Kansas City and Chicago. This would pay the interest at 6% on $20,000,000.00 and leave 50% for operating the line, or would allow an investment of nearly $45,000.00 per mile for construction and equipment.

In viewing this matter of course, it would be taken into consideration that the construction of such a line would probably give rise to competition and also that Kansas City is all the time assuming more and more importance commercially each year, and that it would probably be more difficult for us each year to control all the business which we gather up west of Kansas City, especially would this be true in regard to the stock business, although on the long hauls we could probably make such arrangements as to practically control it. The local business, however, on such a line must be large and would go a long way toward offsetting such losses as I have indicated.

I am sorry this statement has been so long in reaching you, but it was very desirable to get certain figures from the Auditor, and he been so busy on our Railroad report for the Commissioners, and for important business of the road, that he could not prepare the statement I desired sooner.

Yours respectfully,

(signed) A. A. Robinson

General Manager

Volume 12 page 25 Splinters transcribed in altered form for the web by Matt Lee.

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