The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-08-08
LAST YEARS RAILROAD WORK.

The advance sheets Of the new volume of
Poor's Railroad Manual inform us that the
total railroad mileage of the United States
on December 81, 1883, was 161, 1876 miles, not
quite half the total mileage of the world,
but more than 10000 miles in excess of the
total mileage of Europe. The increase for
the year was 5751 miles For the last ten
years the annual increase has been about
1900 miles; but during the past two years
the actual mileage has been considerably
under that figure. Various reasons have
been assigned for the diminution of rail-
road building; but the chief reason, which
indeed supersedes the necessity of looking
for others, is that the long lines which were
built through spaTsely settled sections of
the country during the last decade have not
paid, and have reduced the general average
of income from railroad investment to a
trifle over per cent per year.
We may probably. therefore, look for a
very gradual increase of our aggregate rail-
road mileage for the remainder OF the
century, and that increase viii be in the
shape of short feeders to existing lines. AS
the country fills up new lines will be
needed. and after an interval prODortioned
to the growth of population another rail-
road building era may set in. But the era
when SPECTATORS made fortunes out Of
railroad building. by issuing watered stock
and bonds for which the roads had received
far less than their face, has probably come
to an end for the present. Districts with
large productive capacity and no means Of
reaching market-such as abound in this
State-will combine with established lines
to form connection with the railroad sys-
TEN of the country. Gaps between lines in
operation will be filed; unfinished roads
will be completed to definite terminals.
But the railroad mania of 1855, 1870 and
1880 will hardly be revived in the current
decade.
The business of the railroads in 1899
shows an increase over 1888. but not larger
than The increase Of mileage. The volume
of freight and the number of passengers
moved was greater. but the rates were
lower, SO that the net earnings Of tine roads
were about the same per mile. An increase
in operating expenses is reported. This.
probably, arises in large part from the dis
position Of the great railroad companies to
close their construction accounts, and to
charge all new construction and repairs to
operating expenses. This is really the
only sound principle on which railroad ac-
counts can be kept so as to show exactly
what the company is doing; but it has the
effect for a time of making it appear that it
costs more to run the railroads than it
really does. Railroad engineers are ac-
eustomed to say that weli-built and we'll
equi ped road, running through an average
country, should be operated for 60 per cen t
of the gross earnings. In England the
roads are run for less than an average of %
Tfs Mt or ha
pense of operating our roads is nearer 81
than 60. This may be due to unskillful
management. But it would be easily ac-
counted for if the companies charged to the
operating account every new bridge or new
piece of track which they required. and let
their capital accounts stand where they
were. II is all matter Of bookkeeping.
The English roads, which were built to last
forever. and need but slight repairs or bet
terments each year, cost 100000 a mile to
build. Our best lines cost some thing over
100000 mile, but need additions and i'm
proyements every season. 1t is as broad as
it is long; aud while to present stockholders
it is matter of concern whether the addi-
tions and improvements are betrayed out of
current income or paid for out of new is
sues OF stock, il is OF no moment to the
company in the long run.
1t is satisfactory to note that the cost OF
transportation is steadily if slowly being
reduced. La 1887 it cost on the average 2.27
cents to move passenger a mile by rail,
and Los cents 30 move a ton of freight the
same distance; in 1889 it cost 2.17 to move
the passenger, and 097 to move the ton of
freight per mile. These rates do not vary
much from the average rates prevailing in
Great Britain, but they are considerably
lower than the rates which exist on the
continent OF Europe and in the British
colonies Of India and Australia.