The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-10-20

| from the proceeds Of rail xsy transgcrf2
ton Add 20 these figures the number d
producers and others required 70 supply
railway operatives and their families wits
the nsce.saries Of life aad IL 10 clear tha;
very large nambsr Of people are depend
sni for prosperity Almost wholly upon that
OF the raiswaya
Harry i. Nsseomb, Ia the current nnm-
Der Of the For4Ba. cites some very interest.
Ing figures IN support Of bis argument
that the charges for rsiiEsy transports
ton now Ia force 90 not produce excessive
revenue, and that sny changes toxard
lower charges. without measures OF
radical economy IN operation. viii
render the business unproatacls and
prove detrimental 20 the public
Interest. During the decade from the be-
ginning Of lsss 70 tie end Of is33, says Mr..
Nswcomb, 74,343 miles Of railway, ope-
rated by 3ii Independents corporations and
capitalized At s.. 50. 81, Coz. passed from
the control Of stockholders into that Of
receivers appointed By Tie courts. on ac-
count Of the failure Of the rates obtained
Tor transportation 20 provide sufficient
revenue 10 meet The expenses Of operation.
taxes and interest. OF taIs total. =, 476
miles GO per cent Of the nilssgsl capital
lied at 81, 75s. SO. 900 t4e per cent OF capt.
tail, was placed in charge Of receivers dur
Ing the year ending December 81, Isa8.
The entire railway mileage operated by
recsivers on that date Vas 20. 40 and the
par value of lite stocks and bonds s., IL. :
60, ooo. or 3 per cent. aud Il per cent, re-
spectiTsly, Of the total railway mileage and
capital in the United States.
During 1885 twenty-five railways, operst-
ing l.5I3 miles Of road and represented By
$7sie2i,coo Of capital stock and bonds.
we're sold under foreclosure. while the
number sold during eighteen years. from
1916 70 1888 inclusive, was 55i, their aggre-
gate length 81. 2s3 miles and their capital
iZasion s, 20e. III. 90. To quote Mr.. Sew
comb:
According TO the latest data furnished
By the stat sgiclan Of the interstate COM
neree commission during the year ending
june -, iss3. railway stocks having a par
value Of -, $50. -. 5T2. or el.A per cent Of
the total capital stock. received no diyi-
dends: and no interest was paid on mort
gage bonds amounting TO s492. 276. 900. or
1888 per cent. OF the total, nor upon s2o4, :
80. 5S Of income conds, being s258 per
cent Of the total.
The average rates OF dividend and in
ieress during ls93 are not yet known, but
during ls32 they were IS follows Divi-
dsnos GA preferred stock, 2 20 per cent !:
an common stock. per cent: average on
al stock, Ill per cent; interest on
funded debt, T. Is per cent: interest on un-
funded debt. La per cent: average rate
OF return 10 capital OF al classes, 33s per
cent.
The ratio Of return TO invested canlt.l
In the form OF dividends on capital stock
has declined 9th great rspidity during
the last INsniy years. In is7l. with 81 :
GIG miles OF railway, the dividends paid
averaged 81. 9S per mite Of line; In Iss2
with i07. Is. miles dividends were only
1872 per mile; while in 1898, with I'D. a5l
miles, dividends had declined TO an aver
sg. Of 49, per mile. Comparing the wear.
ios5 and Isl2 IL Is found that the mileage
% the latter year wss IS per cent greater
than that of the former. the gross earn
ings q per cent greater and the net earn
tngs - Per cent greater: but the agxrs-
gate sum paid In dividends had actually
declined more than - per cent The de-
cline N the average amount 81 dividends
FER mile Of line equ@llsd e. per cent Of
the average Of i.s3
Daring the SIX years covered By the r.
ports Of tee bureau Of statistics OF IA.
interstate commerce commission, the aver
age rate per ton per mile charged for the
transportation Of freight declined from
lpui cents 20 SIS cent, and that per rNs-
senger per mile from 2 S4s ceats 20 ? los
cents These reductions amount 10 n cav
ing 10 the public upon the trsffio carried
during the year ending June b lsfa Of
fiia. ii3.s77 on freight. and 50. ~ ls4 on
passenger trsitie: or total Of sig9s6.5i
In one year an amount exceeding by a.
per cent the aggregate Of a.! dividends
paid during thai year.
Notwithstanding the extensive redue-
ton. in Freight and passenger rates and
the feeble financial condition OF SO MANY
railways there 4. a continuous popular
demand for stiil cheaper transportation.
Many states have re.orted % legislation
prescribing maximum rates. Numsrou.
state railway commissions reqaire redue-
lions in rates within their individual state.
snd the interstate commercs commission
Il, clothed with similar power in regard 20
tTaffic between the states
Cheaper rates are most desirable. bat
they can - only procured By the e1eca-
ton OF radical economies in the operation
Of the railroads. as ~ that means alone
can the reduction Of rates be continued
without reducing al companies to that
condition Of bankruptcy already con front
ing large numbers.
During the year ending June 81. lisa los
companies paid commissions amounting
in the aggregate 20 si,7s9. a., OF which
sl.oa7 $50 was paid By nine roads. As
high as sea- - Is alleged 70 have been pad
fer the sale Of a single sseond-elas. ticket
from Chicago 30 Saa Francisco Another
enormous expense . the multitude Of out
side agencies and travelling agents, whose
sole occupation Is TO secure the routing
Of passengers and freight hy their re-
speet!vs Ines A system Of Joint srsnciss
woald secure an enormous saving u ct
psnse. Daring single wear. when rates
we're fairly maintained. four roads onerAt-
ing westward from Chicago paid 81. 2Ss. SIS
for maintaining outside agencies and al
vertissag. and ere road from New York
expended sS.I, 81 for similar paFpos<s
Much sconomic waste arises from the
com petition of long aad circaitoas roatss
for tsAffsc whieh would naturally 60 BY
more airset and shorter lines Railway
revenues are constantly wasted in order
10 maintain competitive train ssrvics,