The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-07
CONDITION OF
AMERICAN RAILWAYS


By Robert p Porter in 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 twelve thousand millions of dollars, and
over 10000 miles of road. Next to our farms
which aggregate 130OO0 OO.OOO these
great properties will form, at the close of
the century, the most valuable assets of
the republic The capital invested in our
manufactures is less than half that in
vested in railways, and yet the condition
of our manufactures, if we may judge
from the frequent tariff agi-
tation, seems to command much
more public attention. The con-
struction of these great systems of
transportation has played an important
If not the most important part, in the pro-
gress of the nation during the last half
century. BY the extension of these rail-
ways, population has been distributed
large areas of country have been opened to
cultivation cities built manufacturers
established, mines developed, foreign trade
increased, and the varied products of our
vast domain brought from tropical and
frigid zones to the temperate region of
deusest population. In short, the laying of
the track, and the penetration of the loco
motive have kept time with the building
of the nation itself.
Within the last few weeks, the ways and
means committee of congress have grant
ed hearings at Washington to those rep
resenting our several industries. In read
ing the published testimony, one is struck
with the deplorable accounts given Of the
condition of many branches of manufac-
ture. Low tariff and cheap foreign labor
have played havoc with American labor
and production. This is undoubtedly true.
And the remedy asked for is increased pro-
lection. A duty sufficient to enable the
American manufactures to pay a living
wage and compete with his foreign rivals.
While not occupying the public mind to
anything like the extent of the manufac-
turer, the American railroad is in as bad,
IL not in a worse plight. If congress would
only extend it's hearings to railways, the
stories of the recent tariff hearings could
be repeated with emphasis on a larger and
even more impressive scale. Loss of earn
ings. reduction of rates below the paying
point, actual loss on passenger traffic de-
teIioration of roadbed, reduction In the
number of employees, others working half
time, receiverships, foreclosure sales
practically half of this enormous invest
ment bringing no returns. and the blight
OF insolvency Steduliy setting DOWN upon
our entire system.
The losses and disasters arising from
these conditions have been widespread
and far-reachng. In the first place. IL is
undoubtedly true that in no other indus
try is so large a business carried on upon
so small a banking account. A railway
company is great distributor. not only
of passengers 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
eight hundred and seventy-iive thousand
a few years ago. but which has been re-
duced fully one hundred thousand. with
continued prosperity, our railway system
would have to-day furnished direct em-
ployment 70 az least one million employees.
This, however. gives but an imperfect
idea of the number employed indirectly,
that is, in car shops and locomotive
works, and equipment shops OF all kinds.
blast furnaces, rail mills and a myriad
industries dependent upon the railways
for their prosperity. As the percentage OF
increase in equipment has been reduced
from 10 per cent. in 1890, to an actual de-
crease In 1896, Il may be safely assumed
that thousands indirectly engaged have