Evening star. [volume] (Washington, D.C.) 1854-1972, 1877-08-01
RAILROADS OF THE COUNrRy

L
The Depression in Traffic and Its Causes
Retdtto,,s oT Population to isaiF,r0Ds-
Statistics Of Earnings, Etc.
We select the following concerning the rail-
roads OF the United States in 1S76 from ad-
vance sheets of Poor's Manual. The facts
given are highly important and useful,
throwing great light as they DO upon the su h.
iect of eur railroad interests in their present
status, and indicating what is TO be the basis
u expectations as regards tnS future:
The number OF miles of railroad openad
curing The year 1876 WAS $3.50, against 1919
miles FOX $50 and 1911 miles for ISII Tne
excess Of miles built, as compared with III
two preceding years, is due almost entirely
10 the great activity i'll the Southern Pacifc
lines, ana IA narrow gauge lines in Ohio,
Texas ana Colorado. No new lines OF a1y
considerable magnitude have been under
taken.
The gross earnings of AL the roa.ls whose
operail ons rave been reported have equale3
Si3 IS. ,9s9, against sos ,Jt5,595 in 1875 Tho
gross earnings have fallen or =. SoI SIC: the
Iet earnings have increased S9Af.3It This
Increase has been due chiefly 70 the great
economies practicCd H. conducting the opa-
Tatlons OF tie roads. Whether these er1nO.
mics have been at the eAp enSe of the cOndi-
tons o. the roads the future must determine
1ne Introduction of steel rails has doubtless
been considerable element in the cnearar
Iat.O Of operating expenses.
Ihe present is the TENTH annual issue of the
MANUAL, covering the period from 49, 10 the
present time. This period embraces the years
OF greatest activity in all enterprises con-
aecled with railroads since their first open
lEs 10 1e39. Its publication, therefore n,.tur-
ally suggests Il comparison between the CON
dit!On OF our railroads and the general busi-
ness OF the country now and ten years ago.
There were In operation at the time Of the
issue OF The first manual, for 1880, being
Tor the year ending December 81. 1851, 80 276
mics or railroad, OF which 1885 miles were
in New England, 9,555 i'm toe MIDI. states,
Is 226 in the western, 10, 126 in the southern,
ard t31 in the Pacific states. The Union and
Central Pacific railroads had not been COM
Pleted. There was not mile OF railroad in
Utah, Dakota, Colorado, Washington ter
Iitory or Indian country, where now are
2,13G miles, and in all the territory west of
the Mississippi river and east of the Pacific
slope, where now are II $40 miles, supplying
the wants Of population Of ,12O. 900, there
were then but 1855 miles of railroad, with a
population OF ,205, COO.
In the last ten years the railroad mileage
bas nearly doubled, the increase in populs-
tion has been only twenty three per cent the
railroads having increased more than four
times as rapidly as the population. The
NUN Der of Inhabitants TO mile of railroad
in 1861 WIS g25, while in 1916 il was only 5.7.
The experience of the New England states
demonstrates that, to enable railroads to be
operated al profit, population OF at least
$50 10 mile of railroad is necessary in this
country. The history OF the railroads in the
western states also proves it. In the earlier
days OF the system nearly al the lines built
Ia Tie western states brought handsome re-
tulns TO their builders, but with the iacreas-
Ing profits came a still greater increase of
cl!3t o.t',s. TIE success which attended them
lei 10 a. Enormous development of the sys-
ten Tie 1neihOds Of bLilding were also
changed, and the depression which has at
te':ded their operations during the last three
years T. largely owing 10 the undue stimulus
which The first successes created. In the
western states in 1857 there were ~ inhahit-
ants TO mile OF railroad; In 1876 there were
but i27 inhabitants to a mile. The inevita-
bic result has followed, and that result can
not be overcome until the population shall
again increase to the necessary proportion.
In the first issue of the Manual ia 1861 this
result was clearly fOretOld, although the fact
mas exceeded the anticipation BON in time
and amount We then said: "The annual
mileage of railroad is likely, for some time
10 come, to exceed in ratio the increase of
population; From $50 the increase of the
latter may be estimated at LOCO, 600 annually,
while the number OF railroads constructed
Will probably equal 1900 annually. Their
construction will be prompted by considera-
llon OF the advantages to be derived from
them In promoting the industries and in
facilitating the social intercourse of the peo-
pie, rather than by any direct income they
Tie statement concerning population and
the income of our roads has been verified;
but In respect of the increase of railroads
constructed, instead of 1000 miles q year, we
have had since 1870 yearly average of over
1000 miles, COMPRISING in six years what
under the circumstances seemed eXtrava-
CANT for twelve years, and thus giving us
growth of population and resulting business
OF only 100000, instead OF 100000, as then
estimated.
Since 1854 there has been an increase in
railroad earnings of 30 cents per capita per
annum. The net earnings for 1876 we're
S1sC: 49,, 1852. Had the progress of population
KEEP: pace with that Of railroads, or rather
roads 10 the progress of population, the net
earnings would have exceeded the present
amount by over S25,OO0,0G0, or equal to
revenue OF per cent on $50 coo, O00-sufti-
cient to have sayed from default the greater
part OF the Iaore i'm pOrtant lines which have
been obliged to forego the payment OK inter-
est on their funded debt.
The earnings from transportation OF
freight, mails, etc, for the year 1876 were
upon l5I ,0S2, 900 tons offreight. As compared
with the previous year the tonnage trans
ported shows an increase of 6,O.2 900, while
the freight earnings show decrease OF
$3.50 SOS. This decrease is wholly due 10 the
ton. This reduction has been steadily going
on Tor the last five years. Ii MaSsachu-
seltsrwhich presents fair average for all
New England-the reduction has been from
81 cents per ton per mile in 1871 to 2OI per
ton per mile In 1876, while the quantity OF
freight moved has increased from 1891, 104
tons III ISL to II ,3N ,502 tons In 1876. In Ohio,
which also presents q fair average for the
western states, the reduction has been from
To- cents per ton per mile In ISL to LIZ per
Ton Per nile in 1876, while the amount Of
freight moved has increased from II, 554 $40
TONS III 1S1 to % ,3iS, 199 tons In 1876. In New
lork, which fairly represents the middle
states. the earnings per ton per mile have
+ decreased from II cents in 1871 to 10 cents
IN 1876, while the freight moved has in
creased from H. ia 5 tons in 1871 to % SCI 1923
/ in 1876.
| At the same ratio of decrease throughout
me country 1906 per cent? the earnings from
I IrelSht transportation are less, by more than
So ,OCO, 900, than they would have been had
Tie rates of 1871 been maintained. Since
that time 81 ,O00, 900 GOO have been invested in
railroads In the United States and Is 900
miles of railroad constructed. Yet with this
! enormous reduction in the rates of trans
! Poriation the railroads have yielded for 1s76
net return of over per cent. On the capital
| invested.
While the gross earnings, as already
| stated, show decrease of So 500 SIG, as COM
pared with the preceding year, the net earn
lngs show an increase of 1916 3i4. The
decrease in freight earnings is s2,s2l ,i5s, as
| compared with 1876, while the falling Off in
passenger receipts is 81, 1884 .GsS. The decrease
In dividends, as compared with 1875, is
Classifying the states by their geographi-
cal positions, as usual, 1t will be seen that
Lne gross earnings for the New England
states were SIS 1913, agains. SiS 1913 922 for
1919, So, IA for 1874, and s5t G76,6S3 for
1855 W these earnings S25, ,17S were re-
a ,<wl.A