The record-union., 1896-07-31
UNITED STATES RAILWAYS.
Some Figures Comparing Them With
Those Of Great Britain.
faxes Here Increasing on Railroads
Faster Than Their Net Re-
ceipts Increase.

Yesterday morning the State Board Of
Foualization listened to the arguments
OF Thomas Mellersh, Secretary and Con-
troller of the San Francisco and North
Pacific Railroad. a. w. Foster, the
President of the road, was also present.
Mr.. Mellersh said the State Board had
Gone its duty nobly by the State in as
gessing the railroads, but the roads
have been the sufferers by their action.
lie believed that the earnings of a road
were the fairest basis Of assessment.
Governor Budd, who was present,
asked if the market value of the stock
would not be a fair basis of valuation,
and Mr.. Mellersh thought that perhaps
IL might.
Equalizer Morehouse suggested that
the market value Of stock was some
times manipulated.
Mr.. Mellersh went on to say that the
fact of steamers being part of the road
equipment introduced a factor into road
valuation that further complicated the
methods Of arriving at a basis. The
density of population in this State as
compared with others makes a very
important item, as furnishing both
passenger and freight traffic.
He gave a comparative table Of pas
senger travel in the United States, I'LL
nois and California for the year 1894.
BY it he showed that the number of pas
sengers carried in the United States
was Il, ,2S9, AS, 1893; in Illinois, by fifty
two roads, it was 1867, ,372. .319; by his
road, 1929, ,65S In the United States
the average journey per pas
senger was 2643 miles; in
Illinois, 26.S4 miles; on his road, 21.04.
The receipts for passenger per mile
were: In the United States, 2.10 cents;
in Illinois, 2.31 cents; on his road, 2.10
cents In Illinois the receipts per pas
senger5 per mile were 2.31 cents, and the
average cost per passenger per mile
was 2.61 cents, loss per passenger per
mile of 0.30 cents per mile.
He next gave q comparison of freight
movements in the United States in 1882
and 1894. In 1882 360, ,490,375 tons of
freight were moved, the earnings being
$4S5, IT'S, 341, and the average earnings
Ter ton per mile were 1926 cents. In
1894 1929, TAT tons were carried. the
earnings being S700, AIT 400, and the
average earnings per ton per mile being
0.S51 cents. In the thirteen years the
amount of freight moved was S43, 1885,
462 911 tons hauled one mile. For this
service the railroads received 81, $685.
765,2 ,2S4. Had the rates of 1882 been in
force for the whole period the earnings
would have been $40. .423. .997 1859, or
s., ,567, ,2S2, ,0S3 in excess Of that received,
and this enormous sum, representing
5000 000,0 900, is saved to the public by
the reduction in freights.
He presented a large number of tables
showing among other things that the
capital stock of the productive roads
was an aggregate Of 81, TT, 1868, ,667, and
that Of unproductive roads So, 29S, $780,
403; the per cent. of productive roads
was 36.02 per cent. and Of the unpro
ductive ones CABS per cent.
He also presented a table showing the
relation of railroad building TO the pop
ulating of the country and claimed that
railroads were the civilizers of the
world.
The Governor disputed the theory that
the extension of railroads had so largely
increased the population, as Mr.. Mel
lersh claimed. He contended that the
great cause of railroad failures was
that they were pushed into new country
before they were needed, or IN competi
ton with others already in a field that
would not support two roads.
Continuing, Mr.. Mellersh said that BIZ
cycles had cut greatly into the earn
ings Of the railroads. He read extracts
from the report of President Alton OF
the Chicago andAiton road for 1895 that
were pregnant with information and
food for thought IN relation to the
building Of railroads and the obliga-
tons Of contract between the State and
the railroads IN granting their char
ters, and the understanding that rail-
roads should be protected and taxed in
proportion and the manner of other
property. This contract involved the
right OF the roads to charge reasonable
rates for transportation, but has not
been carried out by the States, and by
legislative action some Of the States
have arbitrarily reduced the rates TIL
they no longer equal the cost of trans
portatton and leave only the inevitable
result OF bankruptcy. sooner or later
Such has been the case In the last few
years with more than three-fourths Of
the roads.
The Governor, who was In attendance
at the meeting Of the board, made a
comparison of assessments for the past
five years and claimed that If, instead
OF reducing the assessment last year, in
order to equalize the assessment all
over the State, it should have been
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