The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-21
AMERICAN RAILROAD POOLS.
Eiucidation OF "a business Factor OF
VastImportance to Whole Country.
FIFTH PAPER.

the opening of new railway lines, because
| tney would develop new and great arabic
| areas at the rates then current heduc-
! tions OF such former rates were sometimes
| publicly opposed. A state convention at
! Syracuse In December 1898, resolved:
ITO recommend the passage of n law
| by the next Legislature which shall con-
fine the railroads OF this state 60 the busi-
ness for which they We're originally cre-
ated. (Local traffic
The average rate of the New York Cen
trail Company in that year was 3. Is cents
Ier ton Der mile, equal TO 40 cents per
100 pounds on grain from Buffalo to New
York The rate now Is not more than
nine (9) cents per 100 pounds In 1878 tho
all rail grain rate from Chicago TO New
York was 55 cents per 100 pounds. Ii is
now 90 cents on wheat and 10 cents on ex-
ported corn.
In 1873 the freight rate upon 90 26S
miles of railway then built averaged 2. 81
cents per ton per mile for l6S, 000, 900 tons
carried. In 1888 the rates averaged .S39
of one cent for 763, 500 600 tons carried
upon l79. l62 miles of railway, producing
gross freight revenues of S7i3 7o4, 45l, the
rate for 1873 being over 263 per cent OF
that i'm 1895. At the average rate charged
in 1873 the freight earnings in 1895 only
would have been 81, 2l5, 3ii 900 more than
they wers-over eighty millions more than
the entire Indebtedness of the states and
territories in 1890
Hon. Edward Atkinson says that in
1895 ten and three-fourths tons of food,
fuel flbres and fabrics were moved 1873
miles by railway for each of a. coo, 600
inhabitants for $40 AZ per capita, and
that "a generation since charge of
treble that sum was deemed great
achievement" which " would
have been S3l, Al per head. 7"
Railway owners have not correspond
ingly benefited In 1872 81, 533 miles of
railway paid stock dividends of $6f, 4lS-
49, or Sll20 per mile. In 1896 l79, 1862
miles operated paid S8l, $40, IA in like
dividends of Si5i per mile, being but 40
per cent of the dividends per mile paid
in 1872 The mileage increased 80 per
cent, the dividends 70 per cent
OF American railway earnings in 1895,
6S per cent was derived from freights, -
per cent from passengers, and per
cent miscellaneous. The gross earnings
upon each ton of freight moved was g7
cents and 4S cents upon each passenger
carried. The addition of but cent per
ton on each ton carried In 1895 would
have been s., 63S 900 and one cent on each
passenger carried would have been
So I:9, 142.
Apportioning the amount paid as divi-
denus upon stock in 1895 IN the above
PROPORTIONS, the freight traffic would be
chargeablo with S55 800, 526 and the pas
sangers with $40, $50. 1S7, equal TO 7.2
cents per ton and 3.6 cents per passenger
carried.
Railway Capital Stock.
Poor's Manual reports for 1895 s., 1872
122 of railroad stock capital outstanding.
Tho dividends on. stock in that year being
$Sl, 375, IA, the average rate of dividend
was /. 81 per cent. The government re-
ports say that nothing was paid in that
year on So, 415, $40, 253 of this stock, being
6s per cent of the whole amount issued.
hnh h.. ,.gha f,pf
porting one ton one mile, which obtained
in lSSS-the first full year of the Interstate
act-bcen charged in 1890, the freight
revenues Of the latter year would have
been $l222, 22:2!3, 523 more than they were. yet
railway taxation increased in the same
period from So, 435 229 TO $39. 250 600, or
81 per cent.
These facts seem to prove q sufficient
evaporation of the water in stocks TO
satisfy the most optimistic hydraulicon.
The number of railway investors is also
too often ignored. The (eastern) Trunk
lines report that their shareholders num-
Der 80 S26 To this add the share and
bondholders on the same and all other
American railroads. One eastern line re-
ports that 80 per cent of its shareholders
and the Pennsylvania Railroad Company
that 40 per cent of its shareholders are
women.
At the same ratio of shareholders to
mileage, the total number of stock holders
in the railways of the Union would be
over $50, 600, not including bondholders.
Calling the total l, POO, 900 of bond and
shareholders at home and abroad, they
with 7S5, 600 employees, make over 2, 0O0 900
persons dependent upon or interested i'm
our railways. Assuming each reported
adult TO represent five persons, the total
number affected by railway results Is ten
millions of persons, exclusive. also of
those interested in the manufacture or
production of locomotives, cars. rails
other iron products, wheels lumber, cross
ties, Store, paints, pushes oils, paper
etc, used by the railways, and now in
stagnant state of production largely be-
cause the railways lack prosperity.
The total present number of employees
of the United States government is 220,
59i.excluding il d cial and legislative APP
pointees but including the army and
navy ana the marine corps. The num-
ber of railway employees in 1895 was 7S5,
03i, being eSS, J6S, or / per cent less than
1893. although the railway mileage had
increased 1880 miles Inc number of
persons employed per mile operated in
1893 was D. .0l, and but 3S in 1895, re-
duction of over l3 per cent.
Comparison of Rates.
A comparison of rates charged on
American and foreign railways for 1892
produced the following results:H
For For freight,
passenger per ton,
Cents. Cents.
United States. .............. 2l4 -
Prussia ............s....,... g.y l.5s
Austria. a..................... 3VO l.0b
france. ...s....-........ ..... 200 l.ys
Belgium. .s's.'.'s. so LOU
English railway accounts are not stated
per ton mile and their rates usually
also include carriage. comparison is