Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1884-11-27

DAILY pOSI-lM Ikll6kMCkk
THURSDAY. ..NOyEMBER n, 1884
RAIlRoADs AND mARD ramxs.
In 1850 the total number IT miles Of
completed railroad in the United States
vas IN round numbers $1,000. AZ the
close Of 1883 this total sxcseded ~. 900.
In three years 5000 miles vers con-
strucfsd and put into operation. This
liz an increase Of q little over 81 per
cent. The population Of the United
States In 1880 vas In round numbers 80,
Oo0.eo0. The estimated increase per de-
cads ia about q per cent. Il ID prsbsbis
that the population Of the United States
in 1883 was NOT far from 100000. an
increase Of say per cent. since 1850.
The average legitimate cost Of railroad
construction In the United States can
mot exceed $4,000 per mile. The aver
age ilitiss--includina capital stock.
funded and floating debt-were in 1850
e5S.oe0. In 1852 e52, Zoo more than dou-
bic the legitimate cost Of construction
and equipment.
The 1900 miles Of railroad built
and equipped thus represent a nscssssry
outlay Of not to exceed 500, 00e .0O0.
The actual increase of liability since
1880 Is over g., 1000 900 over 10 per
cent. more than the legitimate cast OF
construction. The proportion Of iiabil-
ity per capita Of the population Of the
United states for the $4,000 miles Of
conpieted railroad in 1850 was $i0S0.
that Is TO say every man. woman and
child In the United States had each in
vested or was liable for. t1080 on account
Of railroad construction. the intsrest
upon which they were compelled to pay
tn freight and passenger charges. At
the end of 1883 this per capita liability
had increased 10 nearly el400. While
population increased s per cent, che IN
crease of mileage has been nearly 81
per cant, and the increase Of liability
$40 per capita.
Is IL not appcrsnt that this saddling
upon the people Of the United States Of
an added liability Of S2,loo, 100000 In
three years, while in the same time the
total population has increased bat 4,6O0,-
coo, has been the main factor In bring
ing about the stsgnation Of business
now prevailing throughout the whole
United States? The truth 10 that the
whole people are compelled 10 pay.
In charges Tor transportation,
interest upon doable the 40.
tual or necessary cost Of che completed
railway; that although the actual cost
Of building railroads has been continu-
'ously decreasing since 1879, the liabili-
ties per mile of road constructed since
that time, have mot shown q CORES
,pondine dimunition, bat have been In
creased nearly 5000 per mile.
No country, however rich In nasurai
rffources, no people, however industri-
uus, can prosper under scch system
OF development ~. No railroads can
continue successful In operation under
'sudk conditions. We are not of the
opinion that railroad building has been
greatly In excess of public needs or de-
mands In the past decade. This 10 not
the true reason for present business
stagnation and bard times. The fault
lies In extravaeant construction and
enormous capitalization, compelling ex.
tortionate transportation rates 10 meet
Fixed charges, and TO pay dividends up
ON stack which represents no contribu-
-tiaa to the cost Of construction, but is
imposed without consideration
upon the several railroad properties.
This increase of mileage must inevita-
bly, result In sharp competition, and
consequent cutting of rates to the min
imum. II viii reduce, II not extinguish,
dividends upon the stock Of many roads.
IL will force others into bankruptcy,
the bcndholders will obtain control ard
the stock 60 of the boards. henceforth
to be valuable only az "reminiscences of
fraud and greed. Here. on the Pacific
Coast, where two or three monopolies
hold control Of all lines OF trapsporta-
ton, the reduction will DO slow, bat IL
must come. Az the East, where tksre
are numerous competing lines, il will
be quick and severe 10 stockholders. IL
is not bold assumption TO prophecy
that the era Of high dividends upon
watered stock in the United States will
depart even without the aid Of restrie-
tive laws. To use the words OF q con-
temporary: "The laws Of trade viii
suffice wherever there are competing
lines, and all parallel lines VIII. OF ne
csssity. be forced into active competi.
tion frem the same causes that have
reduced rates ON the Atlantic steamship
linea. The railroads will be even more
dependent on the trade their respective
routes supply than the steamships
These can be Withdrawn to other route,
tho Congo. the Amazon. the La Plata
the great lone land region bordering
on Hudson Bay. Tonqain. MADAGASCAR
the Niger country. Australia and New
Guinea--bat the railroads are plants {
30 stay, and must remain. must extenS
themselves by branches and connec
lions, and must secure traffic. as fail
rates or Low rates. according 10 thei
situation. Hitherto they have com
Nhined and pooled against the INTEREST,"
Of the producers. Hereafter necessit,
will compel them 20 compete and en-
courage production by redueiSg rate
10 the minimum"
"
CHANGES.
Twenty-four years age, vhen th.
L. i.~... n.