The sun., 1896-10-16
RUIN FOR RAlLR0ADERS.
rui1,s WHAT FREE SILVER MEANS
AND THIS IS Why.
II Is ns Pisin A. n NEUTRALITY-SUSPICIOUS.
tecnth OF All the Voters Are In the RHil-
ro,d Hu-iuess and the Reasons Interest
An who Trade with Railroad Men.

An who Trade with Railroad Men.
rbcrc are in the United states more than
e-qnpl men in the railroad business. More
than soc 900 OF these are classed under the rules
n, labor unions laboring men; that Is they
.ro no; engaged in the Offices OF the COM
n,nir.. but work out on the road. They are
conductors brakemen, switchmen. engineers.
nrc,ncn, trackmen. baggage masters. mechan-
,osnna builders, machnsts, and the like. The
no,ular vote for President four years ago
ir,,e more than l?,oOo,ooo. so that II all these
,n., o,rorcd in the railroad business voted they
rost nearly one. tourt eenth OF the total vote of
,bcrntion and IL they vote this year the propor-
lton will uc about the same.
Nh attitude Of so large a body of men in an
election Ike the present Is of course of the
,rro,e.t interest to the whole people. The in
terc.ls OF these men SO identified with the
Interests Of the whole nation that the probable
effect that any outcome OF an election would
have ON these interests is OF great public i'm
rortancc. The men who know best what would
be- the effect Of the election of William J. Bryan
on the wages and the interests of the railroad
men are the practical working railroad officials.
tho men who have tho management OF the
ronas. who. though they hold executive places
md are in control of the men who work on the
roads are really railroad workmen and work for
wages just the same as tho conductors and
lrnkenen and swltchmen and track laborers do
the only difference being that their wages are
dGnied by the term salaries.
The sun hunted out one of these workmen
yesterday in the person OF Mr.. J. G. McCnl-
lough. who is the President OF the Chicago and
Erie Railroad. The question was put to him
"What would be the effect of the election of
William J. Bryan and the adoption of free
silver coinage on the railroad wage earners of
the United States2"
1t would be disastrous" said Mr.. McCul.
Tough. =" Every railroad company whose fixed
'charres-that is the principal and interest OF
its bonded indebtedness-are payable in gold, as
is the case with almost every railroad. IL not
every railroad in the United States. would be
compelled to purchase gold In the open market
in order to meet these fixed charges or course
the rates of fare and freight would still con-
tinue TO be collectable only in the currency Of
the country. which would be silver II Bryan
were elected"
why would the rates OF fare and freight
necessarily be collectahle in silver ?" asked the
reporter.
Because" said Mr. Mccullough, mo Legis-
lature or Congress would authorize a railroad
company to collect its charges In gold when sill
. yer was the legal tender. Why, 1t is proposed
in the Chicago platform to forbid by law the
making of any contracts payable in gold"
Couldn't the companies increase their rates
OF fare and their freight rates to make mp the
difference ?"
"As to increasing the rates. the tendency of
all legislation has been to compel the com panes
TO reduce their rates. and there is no question
that neither Congress nor any State Legislature
would authorize increase in rates. Such
thing was never known in this or any other
country-that after tho rates had once been re-
duced they were raised again by legislative au-
thorty."
"Would 1t he necessary to have legislative au-
thory to raise the rates 2" asked the reporter.
The rates OF passenger fare are axed by law
in almost every State" was the reply. "Thatis
rate of two. three, or four cents q mile. as the
case may be. beyond which the railroad compa-
mics cannot charge. This is the maximum rate
OF fare. The only other provision is IN the mat
ter OF freight rates, which the Inter- State Com
merce law says shall be proportionately the
zane on short and long hauls. and which must
be impartial and reasonable at all times.
Well, now. have said that the fixed charges
are all payable in gold and that the receipts are
all in silver: therefore it is silver only that the
companies Will have with which to purchase the
gold to meet their obligations that must be paid
in gold. In other words It will take 81 of re-
ceipts then to pay 81 of gold debt, for to buy 81
ofcold ii will take 50 in silver. and silver will
be all that the company will have.
panies, that is all of them from the higher
officers down. would be unprotected by gold
contracts. Their wages are much and are
payable in the currency of the country. The
railroads, being compelled to accept silver from
their passengers and their freight customers,
will have TO pay silver where they are not COM
PEELED by contract to do otherwise. Every man.
then who draws his pay from railroad COM
pany would receive a 53-cent dollar where he
now gets l0O-cent dollar. He would have a
dollar which he had earned with 100 cents
worth of labor, but which has only SO cents
purchasing power. with which to purchase the
commodities that he needs for himself and his
family, his food. his clothing, and hats and
Shoes, and for the comforts OF his home ana the
education OF his children
AS for the railroads doubling the rate OF
wages under free silver. any one has but TO read
The reports OF every railroad In the United
states, and he will see that one of two things |
must happen, even II the wages remain at tho |
present figure: the railroads which now pay |
dividends must pass their dividends or 20 into |
INC hands OF receivers. and furthermore. the |
probability would be. II Bryan were elected, |
that not only would the roads not earn sufficient
10 odecare dividends or To keep out of the hands |
VI receivers, hut that also the wages of the en- |
poSees would have to be reduced. That is, not |
OILY would the wages be paid in silver. but the |
men would get fewer 53-cent silver dollars |
'Hah they now get lOO-cent dollarsf
You see,' said another railroad official on |
TINS point lit Is as plain as the day. Now to IL
ius'ra'e Here is road well say. that has
gross earnings of s5.O0O.O 900 a year and fixed |
sn"rreS. not including operating expenses. of |
sS'OOoVoO II year The operating expenses are
s-''oo'Ooo year That is. the total expenses
a'o s4''ooOOO a year and the income Is So, ,OOO.-
WV leaving profit Of $3.50 900 a year Now
Tue hAed charges being payable IN gold and tho |
.,'eIpS b"ing silver, the company has to pay
s1,ooO'ouO In silver TO get the $4,000, 900 In
so" " nay them, so that tho fact Is that the
. .heu 'Narges are Sl.OO0o0o a year in place of
S-'OJo'pD Now see where we are: Fixed
o""rGeS' 100000; operating expenses, S2.-
o"o'Ooo' 'oiaL SG,750,OO0. Gross income. S5.-
eoo'oOo; dtuc't, Sl.75O 600, instead Of profit OF
s-'oooD, Where win the sl.75o.oOo come
.oH Ihe fixed charges cannot be cut The
.H' must come in the operating expenses, and
'"e chicf item of the operating expenses is the