The Robesonian., 1897-02-17
AMERICAN RAILWAYS.

Robert T. Porter Gives Some Inter-
esting Facts and Figures Along
This Line.
The latest general balance sheet of
the railways of the United States gives
us total valuation of railway property |
close to twelve thousand millions of dol
lars and over one hundred and eighty |
thousand miles of road. Next to our
farms, which aggregate thirteen thou !
sand millions, these great properties |
will form, at the close of the century,
the most valuable assets of the Repub-
lie. The capital invested in our manu-
factures is less than half that invested in
railways, and yet the condition of our
manufactures, if we may Judge from
the frequent tariff agitations, seems to
command much more public attention.
The construction of fthese great systems
of transportation has played an impor-
tant, if not the most important part, IN
the progress of the nation in the last
half century By the extension of these
railways, population has been distrlb-
uted, large areas of country have been
opened to cultivation, cities built, man.
ufactures established, mines developed,
foreign trade increased, and the varied
products of our vast domain brought
from tropical and frigid zones to the tenn
perate region of densest population. In
short, the laying of the track and the
| penetration of the locomotive have kept
time with the building of the nation it.
self.
Within the last few weeks, the Ways
and Means Committee of Congress have
granted hearings at Washington to
those representing our several indus
tries. In reading the published testi-
mony, one is struck with the deplor
able accounts given of the condition OF
many branches of manufacture. 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
protection. A duty sufficient to enable
the American manufacturer to pay liv-
ing wage and compete with his foreign
rivals. While not occupying the pub
lie mind to anything like the extent OF
road is in as bad, if not i'll worse
plight. If Congress would only extend
its hearings to railways, the stories of
the recent tariff hearings could be re-
peated with emphasis ON larger and
/. | vi
earnings, reduction of rates below the
paying point, actual loss on passenger
traffic, deterioration of roadbed, reduc
tion in the number of employees, Others
working half-time, receiyerships, fore
closure sales, practically half of this
enormous investment bringing no re
turns, and the blight of insolvency
steadily settling down upon our entire
system.
The losses and disasters arising from
these conditions have been wide spread
and far-reaching. In the first place,
, is undoubtedly true that in no other in
: dustry is so large business carried OF
/; upon so small banking account. I
u railway company is great distributor
not only of passengers and freight, bu
q of money AS fast as its earnings com
: in, they go out again. First, we hay
the army of direct employees, whicl
q reached nearly eight hundred and sev
T entytive thousand few years ago, bu
t. which has been reduced fully one hun
L dred thousand. With continued pros
: perity, our railway system would hav
e. today furnished direct employment to 6
least one million employees. The los
t, to labor has been enormous, and it
important that railway employees of a
- grades should study this side of th
question. With freight and passenge
rates less than those of European cou1
tries, where labor is paid about half tt
American rates, how long will our raj
ways be able to tide along with reduce
forces and three quarter time? Unle
es the decline in receipts is stopped, wag'
" must be reduced, and then the troHb
will begin. Taking an army of tv
hundred thousand men out
active employment in one occup
d ton is pretty serious busines
That means an annual loss in wag
alone of not less than $15O,OOO, OO
Here we have the direct loss. The i
direct loss comes from the irreparat
,r. injury to the properties by reason
nd not keeping them up, ultimately enta
ing additional losses. The reducti
of rates between 1890 and 1895 rep
sent loss of revenue of over $100, 90
600 $15, 500, 600 in passenger tra1
and $S7, 900, 900 in freight traffic.
course this sum was remitted to
people of the United States, but
question is, can the people afford
nt force an industry in which nearly OF
fifth or twenty per cent. OF the to
ar wealth of the country is invested t
point where nearly half the stock a
ds bonds pay nothing in dividend q
interest. and the current expenses m
ed be reduced below the safety point. ~
is the problem the people will SO
have to {. ce in relation to our railwa
The gloomy list of non-dividend p'
ing stocks has of late years bt
gaining from about sixty per cent.
years ago to upward of seventy
cent. now. While this decrease of ra
Inns Deen going on. the cost OF rum
trains has not similarly decreased, {
gc herein lies the danger.
The following table shows clea
that rates are being steadily reduc
vo., Revenue passenger Revenue per to-
j ex- year per mile. Of freight per m
sis ~,
adly iSU S.ito1aa So5