The record-union., 1894-05-05

| are based on the importance of consu MP
ton by normal family. The decrease
/ of l7.5 per cent. thus shows the value OF
the reduction in the cost of living, for all
articles of food, clothing and manufact-
ure, to the average American family"
WAGES INCREASE.
"The average rate of wages shows an in
crease in the twenty years of l4.4 per
cent. This represents the combined re-
/ suit of 543 occupations. The average
rates are found by combining the
amounts for all occupations and consider
| ing also the relative Importance OF the
rates for each industry. measured by the
number OF persons empioyea therein.
The result thus shown is the average per-
centage of increase in the rate OF pay re-
celved by all persons earning wages"
RAILROAD RATES DECLINE.
s1The rates of railroad transportation
are shown to have followed the general
/ rule of reduction common to the prices
of commodities. The average rate per
passenger per mile has on the Eastern
| systems decreased 7.3 per cent, and on
the Pacific system 3D. per cent. The
| average rate per ton per mile for freight
has decreased on the Eastern systems 45.7
per cent, while on the Pacific system it
has decreased 4S.5 per cent. Thus, dur
| ing the past twenty years, there has been
greater aggregated reductions IN railroad
rates than in the prices of any class OF
commodities. If applied to the traffic
carried by these eleven railroad systems
in 1892, the reductions shown in passen-
ger and freight rates as compared with
1 1873 would exceed the annual sum of
Sl73. 900.
"Tne prices in these tables are all stated
on a gold basis of value. But whatever
basis of comparison be employed, the
| relative results will practically remain
o. tho hpInO stated T6la-
lively. With silver as basis of value
compared with 1873 there has been an In
crease in wages of 40 per cent, IN agrl-
cultural products of 81 per cent. and OF IL
per cent. in all articles. The only reduc-
ton in prices during the twenty years is
in railroad rates, the greatest decrease be-
ing in freight rates OF the Pacific system
lines of "a per cent"
COMPETITION CONTROLS PRICES.
The facts justify the belief that compe-
tition controls the prices OF commodities,
affords protection from excessive rates
and works continually to reduce them to
minimum,
The facts cited show that the forces of
competition have greater effect in re-
ducing railway rates, and that on the
Pacific system lines, the percentage OF re-
duction in freight rates is greater than IN
any item on the list
But it is replied that the average freight
rate on the Pacific system lines is still
greater than on the Eastern systems. 1t
is also replied that the former lines are
operated at greater cost; they cross three
great mountain ranges and many miles OF
desert. Where they run wages, fuel, ma
terials and supplies are much higher than
on the Eastern roads.
The Eastern lines have least cost of SER
vice and largest traffic as we'll as lowest
rates. So great is their traffic that these
roads are the most profitable OF any
American railway property. The differ
ence in the volume of the traffic alone is
sufficient to account for the difference on
the rate charge on the Pacific and the
Eastern systems. It is an axiom that in
crease of traffic of railway is not ac-
companied by relative increase in ex-
pense. Hence companies continually re-
duce rates to secure increase of traffic to
| result in increased net earnings.
RAILROAD AXIoMS-voLUME OF BUsI-
NESS AND EXPENSES.
A certain proportion of railroad operat-
ing expenses remains unaffected directly
by the volume of the traffic. The direct
expense of transportation is most al
fected, but it is not increased nearly in
proportion to the traffic carried. So, all
WAYS, lines under consideration are found
to illustrate this rule, that. other things
equal, the roads with lowest rates have
the largest traffic and net earnings.
4 diagram is given at this point to illus
trate these truths. 1t shows that: with
passengers, in 1873 the average rate for
Eastern systems was less than for the Pa
cific system by 3S per cent, while their
traffic was greater on the other hand by
65 per cent.
an 1892 the average rate for Eastern
lines was less by only per cent, while
Oh f,.aff hxyE
| "In 1873 the average rate per ton per
mile for freight for the Eastern systems
was less than for the Pacific system by 81
per cent, while the volume of their traffic
was 323 per cent. greater. In 1892 the rate
for the Eastern lines was less by SO per
cent, and their traffic was greater by 4S9
per cent"
LOWER RATES IN THE UNITED STATES.
Comparison of railroad rates in the
United States with those OF other coun
| tries show that here, under private own
ership and operation, rates are lower than
exist in other countries, even where the
roads are owned by the Governments and
the rates are supposed to be fixed entirely
in the public interest.
"The average freight rate of the rail-
ways of Europe in 1853 was 2.02 cents per
ton per mile; for the United States it was
1.22 cents" In Holland, where, it is ex-
planned by an English writer, owing to
numerous canals and rivers, rates are
lower than anywhere else in Europe an
average of 1.52 cents per ton is charged.
There is no clue to the average Jon-rate
in England, but on the great coal carry
ing lines, W here the lowest are found, the
average ton-mile charge for coal is nearly
identical with the average of United
States railways for 1880 as applied to all
traffic, says Mr.. Jeans in his Railway
Problems" p. 277. He thinks it possible
that the average ton-mile rate in England
is about l3d.-three cents-or three times
the charge on principal American lines.
Another English writer, with no bias
for the railways of the United States,
says: "If we consider that owing to
| magnificent distances separating the
agricultural centers from the densely
populated East and the seaboard, the de-
velopment of the country depended upon
rates which in Europe would seem ire
concilable with the profitable working of
a railway. it was very fortunate indeed
that circumstances arose which gave the
population of the United States the hene-
fit of the lowest railway rates to be found
on any continent"
The exceptional conditions on the Pa
cific Coast are about the same as in New
South Wales. But the cost of operation,
measured by the average rate per mile
| run by trains, is greater with the Amer
lean than the Australian roads:
Pacific n. S. w.
Year 1891. System. System.
! Operating expenses per
train mile... Sl 81 81 %
! Average rate for freight
per ton per mile. 81 8 81
So with conditions substantially the
same as to operation, the rates regulated
only by the forces of competition are A
per cent. lower than those fixed by Gov
ernment.
This is not an exceptional showing,
saws Mr. lansing bub is fairly ranrasatf-