The Caucasian. (Clinton, N.C.) 188?-1913, 1892-01-14
THE RAILROAD MENACE.

| How Long Will the People Pay DIVf-
dends On Watered Stocks?
According to the third annual reDOrt
OF the interstate railroad commission,
just issued, the average capitalization
stocks and bonds of the railroads of the
United States per mile is SG0,Sl1. The
lowest capitalization of any considerable
group of railroads is Si7.G45 per mile,
while the average for the railroads Of
the middle states reaches the enormous
figure of $11S,6 a mile and in the Pa
cific coast states the average is $S7.10I
The interstate commissioners report
says, as everybody knows, that the rail
roads are vastly overcapitahzed. While
the average capitalization is $60,S4l per
mile, the real value of the properly con-
sidered as on investment is declared by
the report to be but $42 ,631 per mile
This indicates stock watering to the
amount of $500 mile, or enough I'M
der present conditions to construct MANY
of the lines entirely. The result of the
above scaling down of inflated values to
the real basis, according to the inter
state commission, shows that the NOM
inal amount of $9,89i, 4S3, 400. or nearly
$40 700, 900, 900, which are represented
by railroad securities, is really worth as
an investment only abont $500, 900, 900.
1t is certain that the statement Of the
interstate commission is in this respect
a very conservative one
This is the result of railroad building
under so called free competition"
The London Railway News, as quoted
by the New York People, gives some iig-
ures as to the cost OF the railways Of
Australia which We're constructed and
have ever since been operated by the
government, which it viii perhaps be
profitable to compare with the above
statement. The average cost of 1900
miles of these Australian railroads has
been $40, 900, 900, or an average of $i5,-
600 mile instead Of $50,StI. as III the
United States under q SO called Gree
competition" So much as to compare
tive cost of governmental as compared
with private construction.
Next as to comparative success in man
agement. According to Poor's Manual
Of Railroads for 1890 the average net
earnings of the railroads of the United
States for 1889 was 3.3 per cent. on the
total capitalization and had not varied
for some years more than one OF two
hundredths per cent. from that figure
Now the Australian government Dor
rowed money in England to build all the
Australian railroads, and consequently
has to pay interest on these loans before
it can make any net profits. Neverthe-
less, The Railway News states that tho
Australian government is making p mel
revenue" in proportion to cost Of Is Inc.
of $50 per cent. So much FOR the y.yi.t
ableness of government management.
There is another aspect IL which VIC
should be glad TO institute a comparison
between the so called competitive sys
tenn Of railroad management, as illus
trated in this country, with government
management, and this would be as to
the loss of life by accidents. The report
Of the interstate commission states that
on the railroads of this country under
corporate management there were killed
last year $500 persons, while 29,034 were
injured
We regret that we have not the figures
for the Australian roads at hand for
comparison with this appalling list, and
can only quote the recent declaration of
Professor Richard T. Ely, that five per-
sons are killed or injured on American
lines to one upon the state owned roads |
of Germany, difference which he ex-
plains by the fact that the German gov
eminent employs four times as many
persons to look after safety of trains. |
He says, eve are fully thirty years be- |
hind Germany in safety for passengers, "
and in view of the horrible statement of |
casualties given above who can doubt it? |
How much longer are the railroad cor
porations of the United States to be per-
mitted to fleece and slaughter the peo-
ple?-New Nation.