The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-09-07

1882, with a mileage OF 95. 752 miles. the
freight movement was equivalent TO
80. 302. 209. 249 tons one mile, while IN 1890,
with 1886 miles of road. the movement
while the mileage has increased 64l2 Der
cent, the volume of traffic increased
a little over 100 per cent. The increase OF
traffic So per cent. between 1882 and 1890
accounts for much of the reduction IN the
cost of carriage, just as the man who makes
a profit of q cent yard on q thousand
yards of cloth would tail in business when
the producer who profits half a cent on
million yards will make money. The de.
cline IN the price of steel rails, iron and
other material. due largely to the competi-
ton stimulated by the protective system,
has done much to cheaper the cost of con-
srructIOn and equipment and. consequently,
much to lessen the cost of transportation.
OTHER FACTS OF INTEREST.
For the man with limited amount of
money the railroad 10 not an inviting field
for investment. More miles of road pay no
dividends than pay over per cent, while
bonds which earned 6, z and per cent. in
1880 have been refunded at the lower rates
of 3l2. 4 and per cent. There is moro
money invested in railroad properties that
has never returned the investors q cent
from earnings than has been invested
and lost j any other branch of business.
This is the case even II the
water shousa be wrung out of fiat railroad
values. The newer properties are profit
able only to those who have obtained CON-
troll Of them by extensive deals and have
over-capItahzed them. The net earnings
of roads have not exceeded per cent on
their capitalization for years. Last year
was better than the average, when the net
earnings were "a per cent. on the capitali-
cation. In 1870 it was estimated that $50
inhabitants to each mile we're necessary to
make n railroad passing through n country
fair paying property. In 1867 there were In
this country 7S1 inhabitants TO each mile
of railroad: in 1876 427. ana in 1890. 396.
since 1875 the cost of railroad operation has
been considerably reduced per mile. but
not enough to make the railroads of the
country gilr-edged investments when there
is mile To every 500 people.
The railroads employ an army of men.
The census of 1880 gives the number as
41S,957, exclusive OF those employed on
new construction. This was regarded by
railroad people as a smaller number than o
careful enumeration would show. The
number returned, however. in 1880 was
nearly five officers and employees to the
mile. Upon that basis the number ut the
close of the year 1890 must have been
about 100000, most of whom are men and
voters, which would not be power to be
| ignored If 1t should unite to oppose move
| ments hostile to railroad business as some
| of its members have done in States where
| war has been made upon railroads. If the
| pumber indirectly employed by railroads
should be added the army would be largely
| increased.
While the cost of transportation and the
! cost of operating railroads has been re-
| duced more than IS per cent. for the whole
country since tho war. the standard OF
wages has not been reduced. Employees IN
| every branch of the service received az
| much, or more, compensation in 1890 as IN
| 1865. while the purchasing power of the
| wages had been increased not less than Il
per cent,