The Flagstaff sun-democrat., 1897-02-18
AMERICAN RAILWAYS.
Some Interesting Facts as to Their Present Condition.

The following interesting extracts
 are from an article by MT. Robert F.
 Porter on the Condition of American
 Railways" published in recent num-
 Der of the New York Sun:
 The latest general balance sheet of the
 railways of the United States gives us a
 total valuation of railway property close
 to $1 200. 900, 900, and over 1S0,000 miles of
 road. Next to our farms. which aggregate
 N,SOO0O0,0O0, these great properties will
 form, at the close of the century, the most
 valuable assets of the republic. The con-
 struction of the great systems of trans-
 portation has played an important, if not
 the most important. part in the progress
 of the naton during the last half century.
 Within the last few weeks, the ways and
 means committee of congress have granted
 hearings at Washington to those represent
 ing our several industries. In reading the
 published testimony. one Is struck with the
 deplorable accounts given of the condition
 of many branches of manufacture. While
 not occupying the public mind to anything
 like the extent of the manufacturer, the
 American railroad is in as bad, if not in
 worse plight. If congress would only ex-.
 tend It's hearings to railways, the stories
 of the recent tariff hearings would be re-
 peated with emphasis on larger and even
 more impressive scale. Loss of earnings,
 reductions of rates below the paying point,
 actual loss in passenger traffic, deteriora-
 tion of roadbed, reduction in the number
 of employees. others working half-time, re-
 ceiverships. foreclosure sales, practically
 half of this enormous investment bringing
 no returns, and the blight of insolvency
 steadily settling down upon our entire sys-
 tenn.
 The losses and disasters arising from
 these conditions have been widespread and
 far-reaching. In the first place, 1t is un- doubtedly true that in no other industry is so large business carried on upon so
 small banking account. A railway com- pany is great distributor, not only of passenger and freight, but of money. As fast as its earnings come in, they go out again. First. we have the army of direct employees which reached nearly S75,000 few years ago, but which has been reduced fully 100000. With continued prosperity. our railway system would have to-day furnished direct employment to at least 1.0oo, coo employees. This. however, gives but an imperfect idea of the number employed Indirectly. that is. in car shops and loco- motive works, and equipment shops of all Kinds, blast furnaces, rail mills and a myriad industries dependent upon the rail- ways for their prosperity. As the percent age of increase in equipment has been re- duced from ten per cent. in 1890. to an dCtudl utCTedSe III loJ0, IL may Uc SdIciy assumed that thousands indirectly engaged have been thrown out of employment. A perusal of the statistics of railways as compiled by the United States govern ment shows conclusively that under ex- isting conditions most of our railways are running behind, and the few that are ap- parently holding their own are far from hopeful for the future. Economical man. agement is one thing, but forced economies can only result in a deterioration of the property. For a few years some of our older railways can thus economize, but 1t Is only by continued and liberal expendi- ture of money that track, roadbed, bridges, equipment and rolling stock can be kept up-to-date and in good running order. The loss to labor has been enormous, and 1t is important that railway employees of all grades should study this side of the ques- tion. With freight and passenger rates less than those of European countries, where labor is paid about half the Ameri- can rates, how long will our railways be able to tide along with reduced forces and time? Unless the decline in receipts is stopped, wages must be re- duced. and then the trouble will begin. Taking an army of 200, 000 men out of active employment in one occupation is pretty serious business That means an annual loss in wages of not less than $50, ,0C0, 900. Here we have the direct loss. The indirect loss comes from the irreparable injury to the properties by reason of not keeping them up. ultimately entailing additional losses.
 With the exception of 1894, passenger rates reached their lowest in 1895, while freight rates, save a small rally in 1922, are steadily coming down. When compared with foreign countries, are rates are in- deed low. It Is said that if the Pennsyl- vania Railroad company could secure tho same rates as the London & Northwestern company, the annual earnings would be increased $12, ,000, ,0G0. MT. George R. Blanch- ard. in his recent testimony before the in- terstate commerce committee of the sep- ate, said that had our railways collected the lowest of the European charges, we would have received s370, ,OOO 900 more than we did receive This calculation was based on the figures of 1892. The figures of 1896, which are lower for the United States, would make greater difference.
 The impartial student of these data must be struck with the necessity of commer- ,ial as well as industrial reconstruction. The census reports of 1880 and 1890 and the of the interstate commerce com all of which are uniform, together with the valuable reports of H. V. Poor, give us material on which to base a thor ough inquiry. The presidents and other officers who have charge of these great should be accorded the same opportunity to be heard as the manufactur- Ing industries. So far as can learn, there 8 no desire on the part of railway man. agers to generally raise rates. There is, however, widespread belief that rock bottom prices have been reached, and nat anything, even the merest shade lower, will be absolutely ruinous.
 The case against the railways is a fa- nfliar one. Those who realize these new conditions have no excuses or apologies Tor past mismanagement, nor for the methods by which some of these roads were built. Whatever may be said of those who built railways far in advance of popu- alton, or for purposes other than legiti- nate trade, we have, on the other hand, ,qMally to- blame. the cities and towns