The sun. [volume] (New York [N.Y.]) 1833-1916, 1884-11-16
The End ut Hand.
TO come.

The End at Hand.
Mr.. EDWARD ATKINSON. who has made a
special study Of tho development OF our rail-
road system and its consequences con-
tributes TO the Manufacturers Gazette n long
and very elaborate discussion OF tho forces
which have produced what lie calls tho pres
ent partial commercial paralysis and tho
actual acute crisis In tho stock market"
He starts out by showing, with the aid OF
many tables of statistics. that since the
final consolidation OF the great railway
systems about 1869 and 1870, and the ex-
tension OF tho railway mileage. there has
been oolncident Increase OF tho grain crops
of the Union, the total yield advancing from
1.lOO.0OO,0OO bushels In 1865 to 2,4OO, 900, 900
bushels In 1880, when larger grain crop than
was ever before raised in tho United States
was produced. In 1881 the harvest, though
still large. fell off by about three or four hum
dred million bushels from that of tho pro-
vious year. In 1882 and 1888 tho crops Of 1880
were exceeded, in 1882 by ten per cent. and
in 1888 by little over seven per cent.
Meantime there was a constant reduction
in the charge for railway service, and since
1880 railway mileage has increased over forty
per cent. Tho staple articles Of food, tho
grain, hay, and meat product, constitute at
least ono-haf OF the tonnage moved over oil
the railroads OF the United States. Now, this
product not having increased In any meas
ure beyond ten per cent. during the last four
years, while tho railway mileage has in
creased forty per cent within that time. We
have. according to Mr.. ATKINSON. "a suili-
cent explanation OF all the dis, urbance in
railway stocks and bonds.' All railroad en-
terpriscs, he further concludes, are brought
face TO face with the simple question: as
there enough material to DO moved, ada
cent to their respective lines. at existing
rates OF freight, by which an Income on ac-
tual cost can BIO earned-basing such cost
upon what it would now be if the roads were
constructed to-day2" In other words,
"have we not entered upon the final period
in the history OF railroads. TO wit, tho period
In which they must DO treated by their own
ors on strictly commercial basis for the
purpose only OF earning moderate in
come on the actual cash cost p
Mr.. ATKINSON therefore assumes that the
end Of speculative railway construction has
come. We have COMO through the period Of
railroad consolidation and needed extension,
through the period of speculative promotion
OF useless parallel lines by means OF con-
struction companies, and now we have at
last reached "the period of adjustment TO
wholesome conditions and OF construction
limited to the necessity for cross roads. side
lines. and special or local roads for the use
OF small districts. Even this latter will prob
ably require this year 1000, afterward 5000
to 5000 miles to be added every year"
Nor n tharn N NV fnrfhar yraot rodur.
ton In freights unless some new invention
reduces the cost OF service. The bottom was
reached in 1880, since which time the charge
has fluctuated only slightly, sometimes lit
tic more, sometimes q little less. In 1869 it
cost over $3.50 to moyo thirteen tons on the
through lines from the West to the East 1000
miles. In 1880 the charge was less than $50,
reduction OF two-thirds. The entire profit on
the whole tonnage OF the New York Central
and Hudson River was only triile over one
eighth OF a cent a ton per mile in 1882. Inas-
much as the existing lines were forced to do
business at rates so low the capital expended
since 1880 iu tho construction OF parallel or
competing main lines has been utterly
wasted.
Instead, therefore, OF there having boon
necessity for "anti-monopoly leagues" to
restrain the railroads from abusing the pro-
Queer, Mr.. ATKINSON contends that the re-
suit has been accomplished by methods far
more potent than legislative acts. The
triple competition to which railways are
subjected absolutely prevents excessive
chargos-the competition OF ono railway
with another, OF the waterways. and OF
product with product In tho great markets
OF the world. THE charge which can be put
on the wheat OF Dakota or Iowa for moving
1t to market Is fixed by the price at which
East Indian wheat can be sold In Mark Lane"
The producer has gained by tho two-thirds
reduction in freight charges but meanwhile
tho railroad owner has suffered gricvously.
The 100 900 miles OF railway render the people
O service which now costs the producers or
consumers only about $55O, ooO.O 900 a year,
whereas II the rates charged from 1866 TO
1869 still prevailed. the cost would be 81 ,OoO,-
00o, 900, saving OF $450.OOO00O And while
this revolution has been accomplished. the
leading farm products. of which MI ATKIN-
son gives a list have declined but little in
price in New York. Thirteen tons of flour.
beef, pork. wheat, corn. oats. buttor, lard.
and fleece wool, taken together and worth
In this market S632,G3 in gold In 1869, arc now
worth s62l75, and during the whole series of
years have averag ID S679.5O. In this pe-
riod Of so.ca He'd depression and disaster 1t
therefore appears" he continues, :" that the
prices OF tho staple products OF our Western
farms and our Eastern diaries In New York
are but eight per cent lower than the av-
erage Of the last fifteen years"
Meantime stocks and bonds, nominalIy
representing $1,000, O0O. 900 worth OF railway
property. have appareptly deprsclstsq vt