The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-24
AS TO RAILWAY POOLING
THE RIGHTS OF THE COMPANIES
FOR SUCH LEGAL RELIEF.
Mr. Blanchard sets Forth the Reasons
American and Foreign Wages.


To the Editor Of the Indianapolis Journal:
A generation ago orations applauded the
opening of new railway lines because they
would develop new and great arabic areas
at the rates then current. Reductions of
such former rates were sometimes publicly
opposed. A state convention at Syracuse
in December 1858. resolved:
ITO recommend the passage Of law by
the next Legislature which shall confine
the railroads of this State to the business
for which they were originally created"
Qlocal traffic)
The average rate of the New York Cen
trail Company in that year was 3.1S cents
per ton per mile, equal to 20 cents per one
hundred pounds on grain from Buffalo to
New York. The rate now is not more than
cents per one hundred pounds. In 1873 the
all-raiI grain rate from Chicago to New
York was So cents per one hundred pounds.
1t is now 20 cents on wheat and Is cents
on exported corn.
In 1873 the freight rate upon 7O26S miles
of railway then built averaged 2.1 cents
per ton per mile for 16S GO0 600 tons car
ried In 1885 the rates averaged S39 of
a cent for 1853, SOC, 600 tons carried upon 49,
1872 miles of railway, producing gross freight
revenues of $743, 7S4, 451, the rate for 1873 be-
ing oven 269 per cent. of that in 1895. At the
average rate charged in 1873 the freight
earnings in 1895 only would have been
81, 215344 1900 more than they were-over
eighty millions more than the entire in
debtedness of the States and Territories in
1890.
Hon Edward Atkinson says that in 1895
ten and three-fourths tons of food fuel
hbres and fabrics were moved 126 miles by
railway for each of 100000 inhabitants for
$1047 per capita, and that "a generation
since a charge of treble that sum was
deemed a great achievement" which
49, would have been SOL IL per head"
Railway owners have not correspondingly
benefited. In 1872 1888 miles of railway
paid stock dividends of $64 41S,157, or $1,120
per mile. In 1895 49, 62 miles operated paid
$Sl3(0,U4 IN like dividends of S454 per mile,
being but 40 per cent. OF the dividends per
mile paid in 1872 The mileage increased $40
per cent, the dividends 26 per cent.
OF American railway earnings in 1895 6S
per cent. was derived from frelghts, "A per
cent. from passengers and per cent. mis-
cellaneous. The gross earnings upon each
ton of freight moved was 81 cents and is
cents upon eacn passenger carried. The adj
ditiOn of but l cent per ton on each ton
carried in 1895 would have been 1858 600,
ana cent on each passenger carried would
have been So, 439,742
Apportioning the amount paid as divi-
dends upon stock in 1895 in the above pro-
portions the freight traffic would be charge
able with 500, sos, oZ6 and the passengers with
$l9 3O,l87, equal to ~ cents per ton and $50
cents per passenger carried
RAILWAY CAPITAL STOCK.
Poor's Manual reports for 1895 So 1S2, 122 900
of railway stock capital outstanding The
dividends stock in that year being $751;
315,Tl4, the average rate of dividend was
157 per cent. The government reports say
that nothing was paid in that year on
50, 475, 640, 253 of this stock being IS per cent
of the whole amount issued.
Even had the average charge for trans
porting one ton one mile, which obtained
in 1SSS-the first full year of the interstate
act-been charged in 1885, the freight reve-
nueS OF the latter year would have been
$l22, 223, 523 more than they were, yet railway
taxation increased in the same period from
$50, 435, 229 to $50. 2p0 008s ror "a per cent,
These facts SeemAto prove a sufficient
evaporation of the water In stock to sat
lsty the most optimistic hydraulicon. The
number of railway investors is also too
often ignored. The (Eastern) trunk lines
report that their shareholders number 99-
$50 To this add the share and bond hold
ers- on the same and all other American
railroads. One Eastern line reports that so
per cent. of its shareholders and the Penn
sylvania Railroad Company that 40 per
cent of its shareholders are women
AT the same ratio of shareholders to mile
age, the total number Of stockholders in the
railways in the Union would be over $780,
total 1,250OO0 OF bond and shareholders
at home and abroad they with $4,000 en-
pioyes make over 100000 persons depend
ent upon or interested in our railways.
Assuming each reported adult to represent
five persons, the total number affected by
railway results is 100000 persons eX-
elusive, also, of those interested in the
manufacture or production of locomotives,
cars, rails, other iron products, wheels,
lumber cross-ties, stone, paints, pushes,
oils, paper, ETC., used by the railways, and
now IN Stagnant state of production largely
because the railways lack prosperity.
The total present number of employees OF
the United States government is 220594, ex-
Guiding judicial and legislative appointees,
but including the army and navy and the
marine corps The number of railway EN-.
ployes in 1895 was 7S5,034, being IS ,56S, or II
per cent. less than 1893 although the rail-
way mileage had increased 1850 miles. The
number of persons employed per mile OPP
Grated in 1898 was 5.04, and but 4.38 in 1885,
a reduction of over 10 per cent.
COMPARISON OF RATES.
"A comparison of the rates charged to
American and foreign railways for 1892 pro-
duced the following results:
For freight,