The Mason County journal. [volume] (Shelton, W.T.) 1886-1927, 1895-10-11
Bad Year For Railroads.


The railroad statistics of 1894,
given in the advance sheets of Poor's
Manual, show what hard year it was
for the roads, and-since when they
suffer all other interests suffer likewise
what a hard year it was for the
whole country.
AS compared with 1898 the number
of miles operated increased 1000, but
the gross earnings fell off $142 600, 900.
The roads were as economical as they
possibly could be. They bought moth
ing they could do without. They
made no repairs which were not alb
solutely necessary. And yet their net
earnings fell off $42,000,O00, or nearly
II per cent. They carried $4,000, 900
less tons of freight, and to make mat
tiers worse, they got for what they did
carry less per ton per mile than in
1898. For the hard times did not
check that downward tendency in
which has reduced them nearly one
third since 1892. While the number
of tons carried last year fell off nearly
II per cent, the freight earnings were
over 13 per cent less.
Tho ,Nocco,,c,or CT, az q,
The number of persons carried was
over 45,000,000 less than in the pre-
ceeding year The total number car
ried was 5S3,00O,OOO, and the pas
senger earnings were $276,000, 000
This seems like a large sum, but the
earnings were $36,000,000 in excess of
that sum in 1898.
The net earnings Of the roads and
their receipt from other sources-bor-
rowed money for instance-made up
total of $419,000,000. On the other
hand, the fixed charges amounted to
$245. 100000 for interest and 100000
600 for rentals, tolls and miscellaneous
expenses. That left $75,000,000, but
! 5he dividends paid amounted to $685.
100000. This means that interest and
rentals were not paid in full. Eighty
five millions dollars is large sum,
but it does not go far towards paying
a satisfactory dividend on capital
stock, the full value of which is S.
600, 100000 AS a matter of fact. the
owners of 50 per cent Of the railroad
share capital of the country received
no return whatever on their invest
ments. This is the largest percentage
OF improbable stock in any year on
record.
1t Is true that great deal of this
stock is pure water. 1t represents
nothing. 1t should pay no dividends.
But those who hold it have sometimes
received dividends in the past and they
wish to in the future. In 1892 the
average rate of dividends was 2.9I per
cent. Last year it was only 1.64. These
figures serve to explain why sucn
determined effort was made last winter
to force through congress the bill legal
izing pooling. That measure had be-
hind IT the holders of $4,000, 100000 in
capital stock, So per cent of which
paid nothing, and of S. 1855 900 900 of
funded debt, large percensaee of
which paid nothing. These holders
wanted pooling legalized so as to put
an efiectual end to the downward tend
ency of rates due partly to improve
ments IN methods of transportation
and partly to keen competition. They
wanted legislation which would make
1t possible to put the rates up to a
point where their worthless stocks
would become dividend-pavine and
marketable.
They were defeated at the last SEES
sion, but an interest representing SILL
ooo,ooo,oo0 is not discouraged by one
defeat. When congress meets this
winter a bill will be introduced TO
legalize pooling, and determined eff
Tort VIII be made to put it through
the republican house as it was put
through the democratic house last
year Then itslipped through. No
nody was paying much attention to it.
The tariff and the finances were the
subjects which were in mems mind
When the pooling bill next comes M
IL should be met at the threshold and |
beaten there.-Chicago Tribune.