New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-20
RAILROAD GRoWTH AND EARNINGS

RAILROAD GROWTH And EARNINGS
For long time past there has been so much
talk of increasing railroad earnings that the
public was much surprised last week when the
New-York Central, prudent and conservative
company, reduced rates to prevent loss OF trade.
So the exigencies of stock speculation. for more
than year after the Interstate law went into
effect led people to encourage the belief that
the railroads would after all be greatly bene-
fted and not harmed at all by that enactment.
But there are not many railroad managers now
who do not privately admit that the act has
been playing the mischief with them. and rem
derng railroad prosperity impossible unless it
can be materially amended.
The returns Of net earnings for September
on seventy-eight roads show a loss Of 81, i co.
600, or over per cent. The returns for
larger number of roads. ninety in all. for nine
months ending with September show
loss of S9,949,S64, or about 8
per cent Yet these are not among
the worst, but among the best Of the roads.
In number but small part of the railroad sys-
tenn their reported gross earnings were nearly
half the total for all the roads in the country
last year, and their net earnings were little
ever half the entire net earnings. III there has
been no greater loss on the remaining roads,
the net earnings of the entire system have
been cut down about SO 100000 for nine
months, or at the rate Of $26,600,000 for the
year. while the aggregate Of dividends paid
last year was only $0O,000,00O
Two great facts which are, indeed, only
different sides of the same fact in sense, ac-
count for most of this change. Tho Interstate
law has operated exactly as some of the shrewd-
est railroad managers predicted that it must,
to increase the proportion of expenses to earn
ngs, even while increased rates were charged
on most of the business and consequently the
burdens borne by the people were made heavier.
1t will probably lie found, when the figures fol
the current year are made up, that this has
been on the whole TIE most striking feature of
the years operations. But it was also observed
almost as soon as the act had gone into effect
that its great change in the limits and direction
of possible competition and It's partial transfer
of business from some points to others had
powerfully stimulated the construction of new
competing lines. Partly in consequence OF
this the railroad building last year was the
largest on record. But the direct consequence
of the multiplication of new lines is that COM
petition has been in many quarters more Sc
were within the last year than ever before, and
to many roads more disastrous.
The argument has been continually heard
during the last eight years that there has been
no excessive railroad building, but only needed
preparation for the expansion of the country
and it's business, and for the settlement of new
States and Territories. But the actual increase
in mileage since 1880, taking Mr. Poor's figures
for last year and those of The Chicago Rail-
way Age' for railroad building up to November
/, has been 90, 400 miles, or nearly 80 per cept
from 81 3Ol to 1879 miles. In the en-
tire region east Of the Mississippi and north Of
the Potomac and Ohio there have been built
since 1880 only 1900 miles, which is about
in accordance with the increase of that region
in population. In the Southern States there
have been built 10000 miles, which has been
far beyond the increase in population, but pre-
sumably for the purpose Of assisting the de-
velopment of manufactures and mining. But
in the States and Territories west Of the Mis-
sissippi, exclusive Of Texas, Arkansas and Mis-
souri,, which are here reckoned as Southern
States, the increase has been over 80. 90 miles,
and the increase in population in that region
has certainly not been more than 2, 800. 900.
In the Northern States mile of railroad to
531 inhabitants and about square miles of
area is the averages west of the Mississippi Il
is about mile Of railroad to 170 inhabitants
and 80 I-2 square miles Of area. II would
seem hard to doubt, in view Of these facts, that