The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-09-02
WHAT THE RAILWAYS DO
They Give Support to - Army Of
100000 Peoplel
DISBURSING A BILLION A YEAR
No Department. OF MunaA Industry IL
This County. Except Agriculture.
Which Employs 10
Many People.

The railways of the United States
give employment directly to s00. 900 men
and indirectly. In the manufacture Of
iron, steel. engines. cars, etc., to 10000
more. making grand total Of l.A0O. 900.
This does not include those engaged In
ing that each man represents upon the
average family OF five persons. the
railways Of the United States support
100000 people or nearly eleven per
cent. of the entire poulation.
There Is no other department OF hu-
man industry In this country. other
than agriculture. which gives employ
ment to 50 vast All army OF men at re-
munerative wages. This Is one of
many reasons why the general prosper
ity of the country IL 30 dependent upon
the prosperity of its railways.
The total disbursements Of the ma
tional government less for pensions and
payments to the sinking fund, but In.
cluding interest for the fiscal years
1889. lSs0-91-92-9S was 81. l.106. .49S. .43s. while
the disbursements by the railways OF
the nation for operating expenses and
interest for the single year ending
June 30. 1893. was $l.104. .756. 663 or for
the cost Of operation alone S,027. .1Sl.
The magnitude of the disbursement Of
American railways Ia another reason
why the prosperity of the country is so
largely dependent upon their prOsperi-
ty.
The farmers and planters of this
country will not receive this year upon
the average more than so cents per
bushel for wheat, 10 cents per bushel
for corn, 30 cents per gushel for oats,
and cents per pound for cotton. or
$50 per bale. or for the entire crop of
these four great agricultural staples
as follows:
400 900, 900 bushels OF corn at 40c $500 900 900
100000. 900 bushelsOf wheat at 5Oc 250,OOO OOO
0oO bushels Of oats at S0c. 2l0,0O0OO0
9OVO.WO bales OF cotton at $50 $4,000 900
A total value OF. 81, 200. .OOO 900
or only $96 000,O00 more than was &C.
tually disbursed by the railways of the
country for operating expenses and In
terest In 1893. But for the railways the
returns to farmers for these four crops
would certainly not exceed 81. 900, ,000, 900.
We all well know how much the pros
perity of all classes IL dependent upon
the success of the agrlculturists. These
figures clearly prove that the railway
industry ranks next In importance to
that Of agriculture In promoting the
prosperity Of all classes, and that the
success Of agricultureis Is dependent upon
efficient railway service.
1t Is charged by those who promote
and demand legislation unfriendly to
railways that railway capital IL largely
fictitious, or, in other words. largely
watered, and that by paying dividends
upon a nexcessive capitalization rail-
way managers have done gross injus-
tn ha hok ho fn &C.
The total dividends paid for the fiscal
year 1893 to tha shareholders Of 173.0O0
miles of railway was $95, ,337 ,6S1, or Sc
100 per cent. Of the capital stock
One mill per ton per mile upon the
freight carried that year amounts to
500. O.552.6s7. or only A,7s4,994 less than
the total paid for dividends upon stock.
The total earnings from all traffic for
that year was greater than for any pre-
ceding year In our history. The aver
" 'rs ~ s"ereho,ders dur'r"
the past ten years has never exceeded
~ per cent. If the profit from the pas
senger traffic is considered It will be
found that the shareholders did not
receive as dividends to exceed one-half
mile per ton per mile upon the mer-
chandise transported. If the capital
stock Of American railways Is one-hnlf
W
per cent. upon the actual capital in
vested; II 66 2-3 per cent. Is water even
then they only received 5.68 per cent.
upon the cash invested. This Is very
far from being excessive or unjust to
the public. The estimated true value of
all property In the United States In
creased from $43 .642, ,000. 900 in 1880 to
3e5 O37, ,O91, 1877 In 1890, a gain Of $22. $685.
09l, 1877, or 5lh per cent. A very large
percentage OF the vast increase In
wealth is due to the service performed
by railways The railway interest has
not shared In the increase in wealth
which 1t created.
In our trans-tNiississipp States the
shareholders of 1000 miles of railay
with earnings of 3309, 1853. .749 received as
dividends upon the stock in the fiscal
year 1893, seven-tenths of per cent.
In the states Of Missouri, Arkansas.
Texas, Kansas. Colorado and New
cent. If the capital stocks Of all the
railways In our trans Mississippi States
Is 90 per cent water the shareholders
received less than per cent. upon the
actual capital invsted.
Admitting. for arguments sake, that
the charge made by those who antag-
Onize railways as to excessive capital
ization Ia true there 10 no evidence that
the shareholders upon the average have
received even a fair and just return for
the actual capital admitted by their
opponents to have been invested.
We have shown: First. that the rail-
ways Of the, country employ more labor
than any other branch OF Industry, with
the exception Of agriculture.
Secondly, that the expenditure Of the
national government for the fiscal
years 1889, 1S9O-g1 1-92-93, less for pensions
and payments into the sinking fund,
was only $1,000, 900 more than was dis
bursed by the railway corporations OF
the country for the operating expenses
and interest for the single fiscal year
1893.
Thirdly, that dividends to share
holders for that year upon the average
was only 1856 per cent.--and that 1t
never exceeded 2N per cent. during the
past ten years.
Fourthly, that one mill per ton per
mile upon the merchandise transported
would yield within $4,7S4, 1894 OF the total
sum paid to shareholders as dividends
in 1893.
Fifthly, that railways have not shared
In the vast increase In wealth from 1880
to 1890. which they very largely created
by the service they rendered to the
public. We believe we have given valid
reasons why they should not be har-
rassed and crippled by unfriendly legis-
lation such as the Interstate Commerce
act. That they should not be treated
as robbers Of the public. but a. pro-
moters of the public welfare.
Mr.. q. II. Lewis. In his work entitled
1.-THE National Consolidation OF the
Railways Of the United States" ad-
mits that I'm the end and In large
way It is as clearly for the interest Of
the business man that the railroad
should earn fair compensation as It
II for the stockholder."
When the American public realizes
the truth of this statement the develop
ment OF our railway systems will not be
delayed BY unfriendly legislation.