Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1897-02-18
AMERICAN RAILWAYS.
Some Interesting Facts 40 to Their
Present Condition.

Some Interesting Facts 40 to Their
Present Condition.
The following Interesting extracts
are from an article by Mr.. Robert p.
Porter on the Condition of American
Railways" published In q recent num-
Der Of the New York Sun:
J The latest general balance sheet Of the
railways of the United States gives US a
total valuation Of railway property close
to 1900 100000, and over 10000 miles of
road. Next to our farms. which aggregate
81 800. 0O0. 900, these great properties will
form, at the close of the century, the most
valuable assets of the republic. The con-
Etruction of the great systems of trans
,,portation has played an important, il not
the most important. part in the progress
|of the nation 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
a worse plight If congress would only ex-
tend its hearings to railways, the stories
of the recent tariff hearings would be re-
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. 49,
The losses and disasters arising from
these conditions have been widespread and
far-reaching. In the first place, 1t Is I'M
doubtedly true that in no other industry
Is so large q business carried on upon so
small a banking account. railway COM
pany is great distributor. not only of
passenger and freight, but of money. AS
fast as it's earnings come in, they go out
again. First. we have the army of direct
employees, which reached nearly $4,000
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
1000 600 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 $780, to an
actual decrease in 1895, it may be safely
assumed that thousands Indirectly engaged
have been thrown out of employment. A
perusal Of the statisticstof railways as
compiled by the United States govern
ment shows conclusively that under ex-
listing conditions most of our railways are
running behind, and thesfew that are ap-
parently holding their own are far from
hopeful for the future. Economical man
agement is one thing, but forced economies
11xy in 1ato of =
property. For a few years some of our
older railways can thus economize, but it
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 it is
important that railway employees of all
grades should study this side of the ques-
ton: 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
three-quarter time? Unless the decline in
receipts is stopped, wages must be re-
duced. and then the trouble will begin.
Taking an army Of zoe, 900 men out Of active
employment in one occupation is pretty
serious business. That means an annual
loss in wages of not less than $15O, 900, 600.
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 small rally in 1902.
are steadily coming down. When compared
with foreign countries, are rates are in
deed low. 1t 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, 0CO. Mr.. George r. Blanch-
ard, In his recent testimony before the in
terstate commerce committee of the SEN
ate. said that had our railways collected the
lowest of the European charges, we
would have received $780, OO, 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 CONNER
c1al as well as Industrial reconstruction
The census reports of 1880 and 1890 and the
statistics Of the Interstate commerce COM
mission. all Of which are uniform, together
with the valuable reports Of H. " Poor
give us material on which to base thor
ough inquiry. The presidents and other
officers who have charge of these great
properties should be accorded the same
opportunity to be heard as the manufacture
Ing Industries. So far as can learn, there
Is no desire on the part of railway man
ayers to generally raise rates. There Is,
however, widespread belief that rock
bottom prices have been reached, and
that anything, even the merest shade lower.
will be absolutely ruinous. -g-
The case against the railways is q ia
miltar one. Those who realize these new
conditions have no excuses or apologies
for past acknowledgement. nor for thu
methods by which some of these roads
were built. Whatever may be said Of those
who built railways far in advance of popu-
lation. or for purposes other than leg1ti-
mate trade. we have. on the other hand.