The morning call., 1894-01-14
LESSON OF RAILROAD MILEAGE.

The total mileage of new railroad track
laid last year was 2630 miles. raising the
total mileage of the United States TO
1880 miles. This was the smallest an
nual addition to our mileage since 1877; it
reflects the paralysis which the financial
panic inflicted upon our. railroad system.
Few railroad corporations have had money
within year TO build extensions.
Railroad building in this country has
kept pace with general business activity.
In 1856, which was year of general pros
perity, 3642 miles of new track were laid,
the largest mileage ever constructed in a
single year up to that time. Next year
came the panic of 1857, and before its
effects had passed away the foreshadow-
ngs of the war. Under the combined
effect of these drawbacks new railroad
mileage fell in 1861 to 660 miles. With the
war paper money issues started the W heels
OF trade and kept them in quick revolution
for several years after the peace, and liz
1871 the new mileage was 1879 miles.
Trade reached a dizzy height in that year,
and the balloon showed signs of gTavi-
tatng earthward; a crisis was in part
reached in 1873, and railway construction
declined in 1875 TO I'LL miles. From that
point there was gradual recovery, which
eliminated in commercial boom in
1SS0-S1, and accordingly we find that in
1882 the enormous number of II, 500 miles
of new road were built. This squirt was
followed by a reaction. and in 1885 the
new mileage fell to 1882 miles. The con-
dition Of trade being sound, recovery was
prompt. and in 1887 the highest figure ever
reached in railway construction-12,8 ,87S
miles-was recorded. The business hav-
ing plainly been overdOne there ensued a
gradual reduction year by year till 1893,
when, as above stated, the mileage was
only 2630 miles.
The uniformity with which railroad
construction keeps pace with business
prosperity is quite remarkable. Mileage
might serve as a business thermometer.
It's figures are gauge of the activity and
profits of trade and industry. That is
only the case in the United States. The
railroad systems Of Great Britain, France,
Germany and Italy are supposed to be
complete or nearly so. No more roads
are built when business is good. no fewer
when times are hard. But we have such
a vast country, and so large a proportion
of it will support life. that the moment
forth Its arm aud proceeds 20 build new
railroads.
The development Of the industry has
been marked with vicissitudes SO perIodi-
cal that they could be foretold like the
various stages OF disease. With early
wave of prosperity there is rush TO build
new lines. . The business is overd one, and
when the commercial tide turns, and the
ebb sets IN, given proportion of the new
lines go into bankruptcy, being In advance
Of the public needs. At the present time
one-seventh of the existing railroad cor
porations are in the hands of receivers.
But the disaster is only temporary. 1t
merely means that the properties are
changing hands, and that some of the
water is being squeezed out of their CAPT.
talZation. The roads remain with their
equipment, and when revival of business
requires their services they will be ready
10 fulfill their original design.
After given term Of years every rail-
Road in the United States can be relied
upon to earn something on its cost. 1t
may not earn dividends on stocks or in
terest on bonds which were issued as
bonuses to its builders, nor can any limit
in years be set to the term of its unpro-
ductive stage. Some lines, judiciously To-
Gated, develop more recuperative capacity
than others. Some are slow to become
profitable. But in time a road always
builds up business for itself, providing
it runs through country In which traffic
can originate. More money has been lost
by premature or injudicious railroad
building in this country than by any other
form of business enterprise, but at the
same time more of the great fortunes OF
the day can be traced to railroads than to
any other source.