Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1871-01-16
RAILROAD Management.

The railroad commissioners devote the second
part Of their report TO a discussion of the what
they call "tLe general railroad problem"
which includes the relations of the roads, both
materially and politically, to the community
and the law-makiug power. The difficulties of
the subject they acknowledge, and are not free
from dlstrust of the value of their own con.
illusions, but are induced to give the result of
their careful consideration during the past year
by the growing popular demand that the ques.
ion should be met, and the positive directions
Of the last Legislature that they should include
this inquiry within the scope of their investiga-
tons. With the through business they do not
deal, because the legislation of single state can
affect it very little, and also because it is gener-
ally in q very satisfactory condition. The same
cannot be said of the internal system. Great
and inexplirab variations are found to exist in
the tariffs of different roads, the system of de-
livery is defective, and the rates for freight and
passage have not within the last ten years been
materially reduced, but, on the contrary, there
has been IN many cases a decided increase The
commissioners regard all sums exacted for
transportation as in the nature of a tax upon all
the industries of the state and there is no branch
of our industry which is not carried on in COM
petition with others more advantageously To-
Gated. Almost every article which enters into
them is brought from distance. Every reduc-
ton Of the transportation tax acts as direct en-
couragement to the industry of Massachusetts.
1t is so much weight taken off in the race of
competition.
Tne amount OF this tax for the year 1870 was
about nineteen and q half millions, not much
less than the total Of state, county and town
taxes for the same year, which fell a little short
of twenty-five millions. One popularity of this
tax is, that the lower it is fixed within certain
limits, the larger the aggregate becomes. A
large aggregate, therefore, does not indicate an
oppressive scale Of charges, but rather the con-
frary. The average contribution of each person
In the United States to the railroad earnings of
the country is estimated at about ten dollars per
annum; in Massachusetts it rises to 1881, and
10 Pennsylvania to over SO. In this state this
average is nearer that of the whole country than
should be the case in so active and thriving a
community. To reduce the rate of charges
would relieve the burdens imposed upon all our
industries, and would tend to give the manu-
tacturers of Massachusetts an equal chance with
Others in the common market. A reduction Of
twenty per cent in existing railroad tariffs
would probably, though it might decrease net
earnings, double gross earnings, and have much
the same effect on the prosperity of the state as
doing away with the whole state tax.
In support Of their criticism upon the policy
of our railroads, which have as a whole in.
creased their rates on local fares and freights
within the last ten years, the commissioners
cite the example of the Belgian railways,
where in eight years, from 1856 to 1864, the
CHARGES on goods were lowered, on an average,
twenty-eigbt per cent, the amount of goods sent
was doubled, the public saved largely in the cost
of carriage, and the net profits were increased
more Than million of dollars. The same sys-
TEN was tried with passenger fares VITA SINH
lar result II proposition were made to our
railtoad Officials TO reduce their rates IN this
proportion, they would probably reply by show
ing that under their present tariffs they could
not earn the ten per cent dividends allowed
them; but this answer would ignore the princ-
Piles which experience has shown to control their
business. The commissioners believe that they
are safe in expressing the opinion that AZ aver
age immediate reduction of ten per c. Mt, with an
ultimate and not very remote reduction of
thirty per cent, could be made in the railroad
tariffs of the state without permanently reduc-
ing net earnings in appreciate degree. Some
railroad managers, however, frankly say that
they do not care for this or that business; that
1t does not pay, and they do not see the object
Of policy which would compel the corporations
to do twice as much work with no increase, and
perhaps even diminution of net income
To this the commissioners would answer very
reasonably that very valuable charters have
been granted to these companies upon the con-
sideTafion that they should, as trustees, watch
over the interests conhdedto them, and as public
servants zealously perform all duties within the
sphere of their functions. They do not call for
sacrifice Of dividends; they do demand 4 con.
slant exercise of ingenuity and sacrifice of ease
Ihere are many articles Of raw material which
the'commissioners say, sound railroad policy
shonid induce the Massachusetts corporations
to Transport without profit or even at loss.
This course would build up busy communities
along the line Of the road, wholly dependent
upon the corporation which fostered them, and
as the average contribution of each individual
TO railroad earnings is at least S13.sl Der an
mum, this course would simply increase the
number OF those who contribute TO its treasury
that amount each year. Assuming these con
clusions TO be correct, it becomes matter d
practical importance 70 know what prospec
there is Of their adoption by the railroad com
panies. The commissioners see no reason t,
suppose that their recommendations viii be fol
lowed by any practical result if these companie
are left to themselves They, therefore, propos
two questions: 1st, How can the existing oorpo
faHonS DC oroagot INTO close sympathy witt
the wants OF the community and the popula
e1pectstions' and %, In case Of the failure o
al attempts 10 create this close srr.na.l, L.,