The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-04-05
RAILROAD RATES.
They Should he Reasonable, Uni
form md stable.

They Should He Reasonable, Uni
form and Stable.
The following report, adopted by the New
York Board of Trade and Transportation,
is Of interest to all who are either directly
or indirectly concerned in railroad trans
portation. 1t is based upon the one
months experience of the joint traffic ar
rangement entered into by railroads east
of the Mississippi and north of the Ohio
rivers:
To the New York Board of Trade and
transportation:
Your committee on railroad transporta-
ton respectfully report that the new joint
traffic arrangement between the principal
railroads east of the Mississippi and north
of the Ohio has now been in operation a
month, and has, apparently, worked for
the mutual interest Of the public and the
railroads. That there is a mutual interest
no student of the transportation question
can deny. 1t is true that rates may be
too low as well as too high for the public
interest, and that the public is best serv-
ed by reasonable. uniform and stable
rates While there may be a few ship
pers who may, for their own interest, pre-
fer "a chaotic condition of affairs the
great majority prefer an administration
of our transportation lines described by
the above three words, and hence favor
any arrangement, whether under the name
of joint traffic association, or pool, which
will insure these conditions.
There Is no longer any danger in this
country of excessive charges for trans
portation. The competitive conditions, I'M
DERIVING which is our unrtvSlled system of
waterways, insures in this country lower
rates for transportation than any other
country in the world. This is Illustrated
by the following figures from the advance
report of the interstate commerce com
mission, dated Dec. !, 1895, and from other
for sending ton of freight one mile on
thirteen of the most important railroads
in the United States during 1865 was SOS
cents; in 1870, $50 cents in 1875, 1876 cents;
in 1880, 1.01 cents; in 1885, O.S3 cents in 1880,
or cents; in 1885, 0.76 cents.
The railroads performed one-third of the
entire transportation in 1885, and from the
figures given, it appears that 076 cents
would pay for as much transportation
obtained fer 3.OS cents twenty-eight years
earlier.
This reduction, amounting to three
fourths of the average rate of 1866, was ex-
ceeded by that in price of but few even
of those articles in the manufacture of
which new inventions have worked the
The entire transportation performed by
the railroads of the United States during
the twelve years ending June 80, 1884, was
equivalent to moving 1876, 799, 677, 500 paSsen-
gers and S07, 935 3S2, S3S tons of freight one
mile. Had rates averaging as high as those
of 1882 been collected on this traffic the
railroads would have earned S2,629, O43 459
more than they actually received in these
twelve years.
The total amount of reported railroad
capital on June so, 1894, was $40, 796, Ala, 3d.
or $62, 951 per mile of line. OF this 81 S34
075, $50 was capital stock, while the funded
debt represented by bonds and other Sc
curities was $3.50, 5S3,0l9. The amount of
stock paying no dividends was $3,O66, 1850 O94
or 6S. 4S per cent; of the total amount. The
amount Of bonds paying no interest was
$65O, 573, 7S9 or 14.17 per cent The amount
of miscellaneous obligations paying no in
terest was $53, 426, 264 or IN per cent, and
the amount OF income bonds paying no
interest was $2lO 757, 554, or Sc "a per cent.
During the three years ending Dec. 81
1894, receivers were appointed for railroads
having a total length of 1855 miles, capt.
talized at s., 534, 529, 900 and SO7s miles. cap
italized at $494, S2l, 900, were sold under fore
closure, wiping out or readjusting these
Investments. From Jan. l to July l, of
1895, these totals were increased :, 400 miles.
capitalized at $149, $4,000, and 2396 miles
capitalized at 500, 94l 900, and 1859 miles
lively went into the hands of receivers
and were sold under foreclosure.
The year ending June 30, 1894, showed the
income of railroads in a section including
50 per cent. OF the railroads of the coun-
try did not produce enough above the
actual cost OF operation to pay their fixed
charges during that year.
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 it is desirable to reduce all the rail.
road corporations to the condition of uni
form and hopeless bankruptcy even n
they do not demonstrate, as might he
urged with some evidence of Justification
that the returns now produced by rail
road rates are actually lower than is
reasonably just or to the interest of the
general public. The frequent failure or
railroad enterprises to prove remunerative
results in the difficulty TO secure capitaI
for the new and often much-needed lines
and in the exaction of conditions which
afford at least a chance Of extraordinary
profit as an Offset to what is regarded as
the hazardous nature of the investment
This opportunity for large returns often
takes the form of an excessive discount
on the securities offered, or what is much
the same thing, large stock bonus to
accompany sales of bonds this being
amongst the most frequently deprecated
methods of stock Watering
But few persons appreciate the
Importance of the railroad INDUSTRY
to all the material interests ~
the United States. Without IT. cast
tracts Of fertile land would Yp
main unproductive, for lack of a mar
ket. 1t touches the industries of the
country al every point. The number az
railroad employees in the United States IN
1893 was about $4,000 men. Owing to Sc
we're depression IN the railroad business
this number In 1894 had fallen TO abottf
10000. Not only was an army 81 I0o An
men forced out Of employment, hut there
was a general cut Of wages in ali GRADES