New-York tribune., 1896-10-30
HARD TIMES on RAILWA YS
STATISTICS SHOWING THE DEPREsslON
UNDER THE WILSON TARIFF.


PILES SOME STRIKING F1CrRES-REpCcTioNS
IN EARNINGS AND NUMBER OF EMPLoYEs'
The marked depression Of the general business
OF the United States caused by the repeal OF the
Mckinley tariff and the enactment Of the wilson
BILL Is plainly shown in the general rai'"a!
statistics OF the country.
The following figures are collated from an ad-
vance copy of the eighth annual report OF the IN
terstate Commerce Commission. The comparisons
made are for the fiscal years 1892 and 1898 whlch
are distinctive Mckinley years, and the year 1850
which shows the Wilson law under fuil operauo"'
During the year 1892 the railway mileage OF the
United States increased 3lsl miles, gam OF LOS
per cent the previous year; in 1888 the m'eaee
Increased 4.S93 miles. gain of 2s5 per cent III
1895 the first full-fedged Wilson tariff year. Inc
increase was only 1e49 miles. or gain or put i"'
per cent the smallest yearly gain since the inter-
state Commerce Commission began its work
The showing for equipment is even more un-
favorable In 1892 the increase OF equipment
amounted to 20 per cent; in 1899 to AS per cent
In 1895 equipment decreased 0.j6 per cent Among
the articles showing falling off in number were
freight cars which decreased $3.50. The importance
of this will be seen later when transportation is
considered
In 1893 the capital OF all the American railways
including stocks. bonds and other oniigatlons'
amounted TO So2os74s.134 n gain of sSa1.2.11e over
1884, in 1898. to so50s 2S5 40 gain OF s2'9i"2' IN
1926 the total capital was so.?e33Si.3S gam OF
only $lS7,lO52 for the year. But in 1872 the rai'-
way companies themselves owned each others
stocks and bonds tho amount OF sl.%'lio'.o n
gain of sos L31 2S and IN 1893 not less than sioh5-
or 23s a gain OF N1 5s5lso. During the frs; year
OF Mr.. Clevelands Administration sucn railroad
holdings decreased s1aoooNOo and during 1sso they
Increased but ss2 52l 39 showing not increase Tor
the two years OF only s4557.7ss These figures show
as plainly as possible the struggle OF the railroads
10 increase their reserves and indicate that. com
paratively speaking such reserves are less to-day
than at the end Of 1896
in 1892 the railroads employed SCI AS men all told.
An Increase Of s7l3O men 1884, in 1923 no fewer
than S13602 men. an increase Of 5?is'. In 1s9o
there were employed only 7s5.o2i a decrease OF
ss5sS In other words. at the end of two years o,
Cleveland and Wilson the railroads found II neces-
sary 10 discharge over 10 per cent Of their men.
because they could not afford to employ them.
In 1892 the railroads carried 5Sh9as.21 passen-
gers an increase of nearly 100000 over 1871 In
1899 the messengers amounted TO 6s3,5so62. an IN
crease of COZ s0 in 1895 the passengers were only
507 42l $50 a decrease OF over Ss.N,.con. and even
25oo0ooo less than in 1891. The Importance TO the
railroads OF this decrease is at once seem
If the difference between 1898 and 1895 is calculated
on the basis of passengers carried one mile. II
amounts 10 2oroOO0n 90 which, at two cents per pas
senger per mile the usual charge In the East.
amounts to $40 10000
During 1892 the railroads carried ,osS5'.4d tons
Of general freight. increase Of %0s4I0O tons
increase Of 3s5SiOl. With Cleveland's Inaugural
t,on the prosperity OF business began TO disappear.
and at the end OF the first year railroad tonnage
had fallen off 1os sS2 S29 tons. In 1885 II had In
creased TO sss 7s1.l1 tons. which is less than In
1923 by about 100000 tons.
In 1892 the revenue derived per passenger per
mile carried was olos cents In 1893 the revenue
was 2lOs cents In 1894 the rate per mile
fell to 1856 cents. but recovered In 1895 10 2i
cents. In 1892 the revenue per Ton OF freight car
ried per mile was 0sS cents: in 1893 II was os's
cents Under Cleveland It fell to osoo cents In
1894 and still further to 0s3s II may perhaps he
said by the thoughtless that cheap freight and
passenger rates are blessing. Comparatively
speaking this Is true. but when the rates reach
such a point that railroad companies are forced
TO default on sstock and bonds thousands OF In
nocent holders crippled and their lack OF money
in time affects all other industries.
The effect Of decreased traffic. coupled WIN
decreased rates Is shown by the following sum-
mary of net incomes and dividends paid: In 1917
the net income Of all the railroads from all sources
amounted to s1i5,9s5.l9l. out OF which the COM
panies paid dividends OF sol 929 49, leaving sur
plus from operation OF sl4oss.o56 In 1898 the net
income was Sill o5s 0si out OF which 3lo2sN,e59 was
paid leaving a surplus OF ss.lls,7@ I'm 1894 the net
income was $5sl6.259. but the companies PAID OUT
SIS esl 800 in dividends thereby creating further
deficit OF s29s45.2f Total deficit under two years
or Cleveland and Wilson, s75s9s.S55. The Commits
sion In a brief comment upon this say:
Should this (defciD continue. either the invest
ments or the credits Of the railways must hsap-
pear. But this is not all IN 1892 the COMPANIES
maid out 1885, and In 1s93 SS2s2l 9s for oper
atinC expenses most OF which was paid TO It's en-.
pIoyes and through them reached thousands OF
rotaiIers all over the country But as We nave
seen the companies in 1894 and 1885 were forced
10 discharge about 5000 Of their men: so that
their operating expenses in 1894 were but s73l 4iS22
and in 1895. $725.,2o,H3.
Nor IS this all. In 1892 the companies paid
dividends on 394 per cent OF the total capital stock
and in 1897 on 1916 per cent but In 1895 they paid
on only 2s 35 per cent. In 1895 the companies de-
faulted on 1911 per cent of their total funded in
debtedness Regarding the state OF affairs in 1895.
the Commission says:
In no year since the organization OF this Com
mission has 80 largo n percentage OF stock passed
its dividends, and In no year except the one COW
cred by the previous report dS94l has so large a
proportion of funded debt defauted It's interest.
The following is a synopsis OF the general bal
ance sheet for the year 1885,