The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1885-01-22
Tile DAILY Argus.
ROCK ISLAND DAILY ARGUS,
WHAT AcKsRMAN HAs TO SAY.

WHAT AGKERNAN HAS TO SAY.
The question of freight and passenger |
rates are of general interest to the public,
and the railroads are being continually |
esnsurcd for keeping them high. Rail
road companies are looked upon as soul
lesa corporations, and very seldom is a
word said in their favor. Many things
which shippers and others think ought to
be done may be really impracticable when
the facts are understood. Mr.. W. K.
Alderman was for many years president of
the Illinois Central road and is regarded
as one Of the most reliable, conservative |
and liberal managers in tie country; bis !
experience has been great and he has had
ample opportunity for knowing the facts
as to the condition Of railroad property in
general In recent communication to
the Rai!l0ay -4gs he states some things
about the railroad business, particularly
in the state of Illinois, which seem not to
be generally understood, and which
should be considered by those who wish
to have fair judgment upon the subject:
Mr.. Alderman says thai the revenue of
tue railroads is made up very largely from
receipts for transporting grain, lumber
coal and live stock, that the rates GA
grain Gre admitted on Nil hands to be low
thai being an item upOu which ,ompeti-
ton has been closerupon Than any other,
The grain trade has been SO largely di-
Verycd TO lines running eastward across
Illinois, that it has rendered ID practically
impossible at times for the lines entering
Chicago to secure any large volume OF
the grain business II compromising rates,
except during the period when low rates
are prevailing in lake navigation. As to
the live stock business, every car that
goes into Chicago is subjected to 4 charge
for switching into the stock yards, which
is paid by The railroad company; and
every dollar in cash paid out in that way
is equal to about three dollars of gross
revenue. The railroad company suffers
all losses on account .. unusua. delay "a
transit and injury to stock; and it is
plain, therefore, that bare charge for
transporting the stock is not a coupen-
satiag rate.
4 very important feature in the operas
tiOG Of the railroads is the dead freight
item the hauling Of empty cars back to
the stations. 1t costs practically as much
to haul q train load of empty cars as the
same weight OF paying freight would cost;
but the railroad company gets nothing for
that service. They could even afford to
carry the return freight for half the rate
charged Tor hauling in the opposite di
TeCtl1u, but ordinarily. g car that has
been used TO transport live stock is fit for
nothing else. What is true Of stock ears
is also true Of coal cars; they must, for
the most part, be returned to the mines
empty. Seldom is any return freight Sc
cured that can be hauled in coal cars.
This is also true with reference to empty
fat cars, upon which lumber is to a large
extent carried
Again it often happens in the winter
season, when the mercury is below zero
and the tracks are covered with snow,
that it is with difficulty a train can BE-
hauled with two or even three locOmo-
motives; and, under, such circumstances.
every mile the train moves is productive
Of loss to the company
There are many railroads whose traffic
lies wholly within the state Of Illinois,
that are today earning barely sufficient
to pay their employees, and keep their
lines in safe running order, leaving ea
tirely out Of the question any return upon
q fair valuation OF the tifty~six rail,
roads reported to the railroad commits
sioners for 1888 only nine pay any divi-
dends on their shares; many do not earn
enough to pay the interest on their bond.
ed debt, and several are in the hands OF
receivers.
The history Of railroads in Illinois has
been a history of disaster and financial
disappointment. Even the favored Hi
nois Central, with its immense land grant,
came to grief before it was completed;
aud, looking back for % years, there is
scarcely line within the limits of the
state that has not been obliged to sue
Cumb 10 financial pressure. Millions Of
dollars have been planted in the state by
foreign and eastern capitalists, upon
which they have not only received no re
turn whatever, but their investments have
su2k into irretrievable loss; but the state
has been enriched thereby.
Forty years age, when the state of Hi
nois itself undertook to build railroad,
the officials thought that five cents ton
per mile was fair rate to charge upon
freight; but now complaints are made at
charges Of less than one cent per ton per
mile.
Some newspaper writers have adopted
the theory that rates should be no higher
than viii produce above expenses say six
per cent upon the actual first cost of the
road. This theory might seem more rea~
sonable if steel rails had perpetual life,
If locomotives never wore out, and if the
railroad property generally never deie-
riorated in value But the companies
should be entitled to make such charges
as will enable them not only to operate
the line, but to maintain it in safe condi-
ton, and TO introduce improvements in
structure and in rolling stock. A railroad
manager has very terscly said: If we
made no improvements we should have
no road" What would be thought of the
owner of steamboat charging such q
rate as would enable him to pay only cur
rent operating expenses and simple inter
est on the first cost, but without making
any provision for accidents, renewals Or
reconstruction?
How would some of the newspapers
appear if their charges for advertising
were based simply upon producing rea-
sonable returns urcn the first cost of the
journal? Many of the leading newspapers
in the country are today represented by
a capital stock tcnfold greater in amount
than the intrinsic value of the property
1t is reported that the New York Forid
made, during the year 1884, 1854, 900 in
clear profit, and that the expensive build
ing of the New York Tribune company,
costing not less than a million dollars
was built entirely out of the profits Of
that concern for few years. The COM
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