The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-12-29
Dividends at a Fearful Cost.


Wall street has been talking for a week
dition Of the Vanderbilt railroad system.
Both the gross and net earnings Of the
system for the last six months have been
unusually large, and some OF the roads have
just declared dividends that are greater
than any they have paid for a number of
years.
On Christmas eve there was a fearful ac-
cident at Hastings, on the Hudson River
railroad, one OF the roads of the Vanderbilt
system. One passenger train ran into the
rear OF another passenger train and quite a
number OF people were killed and many
were injured. The accident was caused by
the negligence Of a brakeman, who had
been sent back TO warn the approaching
train that the track was obstructed. The
brakeman neglected TO perform his duty.
This accident suggests the following in
quiries; First. is there proper discipline on
the roads of the Vanderbilt system; and,
second, is the practice of sending a brake
man back. when q train is delayed, to warn
an approaching train that the track is OBJ
structed. the safest aud best way Of pre-
venting accidents like that at Hastingsi
There is no hesitation in answering these
questions in the negative Had the brake
man been properly trained he would have
realized much more fully than
he did the immense responsibility which
rested upon him. He would not have gone
into the station house to wait for the ex-
press train. but would have proceeded along
the track until he had seen the coming ex-
press and warned it. His failure to dis
charge the responsible duty with which be
was charged justihes the conclusion that the
Hudson River road is not under the best
management.
But why is brakeman depended upon to
warn an approaching train that a train
ahead Of it obstructs the track? Is there
not a much better method of giving the
warninga There certainly is. The block
system has been in use twenty-five years.
and it is entirely satisfactory. 1t is far
more reliable than a brakeman. Why is
1t not in use on sill the roads Of the Wander
bilt systems
The managers Of that system say they are
gradually adopting it. But is that q good
| exouses Why is it that they haven't it in
use now? They cannot say they haven't
the money to meet the cost of it, Have
they not just declared surprisingly large
dividends! Would it not have been much
the wiser policy to have used part of the
dividend in establishing the block system9
| The public is entitled to have all the pro-
| lection to railroad travel that the railroads
can afford. There ought TO be some power
| in state railroad commissions and the inter
| state commerce commission TO compel the
railroad companies to put their roads in
| tirst-class physical condition and keep them
so, and to adopt approved appliances for
the safety OF travellers, before pay
ing large dividends in order to graf
ify stockholders or cause a rise In
the prices Of stocks fer speculative
purposes. 1t ia too often the case that rail.
road properties are allowed to run down in
order that big dividends may be paid and
the securities of the properties marketed at
high prices. By this policy the lives of
ravelers are jeopardized. And the prop
critics are also burdened with debt. because
more securities have to be issued TO put
them in good physical condition again.
There are comparatively few railroads in
the country that are honestly and con-
scientiously managed. The management of
too many of them is influenced by the
speculation in their securities.