The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-08-28
RAILROAD RATES.
\ Statement Showing They Have
Been Greatly Reduced.

heen Greatly Reduced.
New York. Aug. 2f-Hon. William I
Bryan: Dear sir-In your Madison SQUARE
speech you said: Railroad rates have not
been reduced 10 keep pace with falling
prices
1 have been chairman Of a merchants
committee on railroad transportation and
a student OF this question for many years
and assuming that YOU wish to be abso-
lutely correct in all your statements. ]
submit the following facts embodied in a
report adopted by the national board OF
trade at ITS last annual meeting. show
ing that rates for the transportation of
freight have fallen more than the prices
OF most commodities. The report says:
As an Illustration Of the progressive re-
ductiOn in the charge for TRANSFORMATION.
the average charge for carrying a ton of
freight one mile on thirteen OF the most
important railroads of the United States
during 1850 was 3.0S cents. in 1870 Isl
cents; in 1875, 1.36 cents; in 1880. l.Ol cents.
in 1883, O.s5 cents; in 1880, OH cents: in 1898
90 cents. These railroads performed one
third Of the entire freight transportation
during 1893, and from the figures given
il appears that O.76 cents would pay for
as much transportation over their lines
in 1898 as could have been obtained for
3.O8 cents twenty-eight years earlier. This
reduction. amounting to three-fourths the
average rate for 1860 has been exceeded
in that of the lessened price of but few
even of those articles in the manufacture
of which new inventions have worked the
most radical changes.
The entire transportation performed by
the railroads of the United States dur
ing the twelve years ending June 80. 1884,.
was equivalent TO moving 136,799. gu S22
passengers and sol, 935, 3S2 SIS tons of
freight one mile. Had rates averaging as
high as those of 1SS2 been collected upon
this traffic, the railroads would have earn
ed S2,629, 04S 459 more than they actually
received. The Importance Of the transpor-
tation interests of the country as a lead
er in industrial activity IS not generally
appreciated. 1t touches the business in
terests of the country at every point
This is illustrated bye the fact that in 1893
there were about $1,000 men employed
on the railroads of the United States; in
1894 this number had fallen to about $780,
600; and since 1898 nearly one-fourth
of the mileage of the United States has
gone into the hands Of receivers The
throwing out of employment of an army
of 100000 men was only part of the diff
ficulty. Not only were the number of
those employed decreased, but the in
comes of those who remained We're lower
ed. There was a general cut of wages in
all grades of the service. Five thousand
general officers suffered as we'll as 100000
trackmen, 10000 shopmen, and over 800
900 other operatives. Wages were lower
ed directly and time was reduced bring
ing about the same results indirectly In
dustries depending on railroads for de-
mand We're affected, and many millions Of
people besides those actually discharged
and their dependents found themselves
less able to buy the necessaries of life
During the year ending June 30, 1894 rail-
road stock. having par value of IS, $50 $780,
O94, or 635s per cent. of the total received
no dividend. During the three years end
ing Dec. 81, 1894, 9,l7S miles of road, capt.
talized at $494, 1,OOO were sold under fore
closure. From Jan. to July l, 1885, these
totals were increased by z.049 miles, capt.
talized at Sl496l5,000 each respectively,
which went into the hands of receivers
and were sold under foreclosure"
These statistics of diminishing returns
to investors, financial disasters and wide
spread insolvency clearly indicate that the
present railroad charges are not too high
unless 1t is desirable to reduce all rail-
road corporations to the condition of uni
form and hopeless bankruptcy, and what
ever may be the opinion of citizens on the
other questions embodied in the present
political campaign, nothing can be gained
by disseminating erroneous views in re-
gard to railroads. Thirty years ago your
assertion would have been correct, but a
progressive reduction from 3.08 cents per
ton mile in 1865 to 076 cents per ton mile
in 1893 and 075 in 1895 is certainly greater
than the reduction in most other commo-
dities. The logic of events has convinced
me that we have no longer anything to
fear from too high rates of freight, but
the present danger is from unjust dis
ordinations in transportation rates.
have been doing all in my power in con-
nection with the commercial bodies to
remedy this evil and solicit your influence
to this end. f. B. Thurber.