The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1897-03-19
[Rcprinted from the New York Sun of January
II, 1897.
CONDITION OF AMERICAN RAIL-
WAYS.
BY ROBERT P. PORTER.

property close to twelve thousand
millions of dollars, and over one hun
dred and eighty thousand miles of
road. Next to our farms, which ag-
gregate thirteen Thousand millions,
these great properties will form, at
the close of the century, the most val
liable assets OF the Republic. The
capital invested in our manufactures
is less than half that invested in rail-
ways, and yet the condition of our
manufactures, if we may judge from
the frequent tariff agitation, seems to
command much more public atten-
tion. The construction of these great
systems of transportation has played
an important, if not the most import
ant part, in the progress of the Nation
during the last half century. BY the
tiOn has been distributed. large areas
of country have been opened to culti-
walton, cities built, manufactures es-
tablished, mines developed, foreign
trade increased, and the varied pro-
ducts 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
nation itself. .....
Within the last few weeks, the
ways and means committee of con-
gress have granted hearings at Wash
ington TO those representing our sew
eral Industries. In reading the pub
lished testimony, one is struck with
the deplOrable condition Of MANY
branches Of manufacture. Low tariff
and cheap foreign labor have played
havoc with American labor and pro-
duction. This is undoubtedly true
And the remedy asked for is increased
protection. A duty sufficient to en-
able the American manufacturer to
pay living wage and compete with
his foreign rivals. While not occupy
ing the public mind to anything like
the extent Of the manufacturer, the
American railroad is in as bad, if not
in worse plight. If congress would
only extend it's hearings to railways,
the stories of the recent tariff hear
ings could be repeated with emphasis
on larger and even more impressive
scale. Loss of earnings, reduction of
rates below the paying point, actual
loss On passenger traffic, deterioration
of roadbed, reduction in the number
of employees, others working half-time,
receiverships, foreclosure sales, prac-
tically half of this enormous invest
ment bringing no returns, 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, it is undoubtedly true that in
no other industry is so large business
carried on upon SO small banking &C
count. A railway company is great
distributor, not only of passengers 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 eight
hundred and seventy-tive Thousand a
few years ago, but which has been
fully one hundred thousand. With
continued prosperity, our railway sys-
tenn would have today furnished d.
rect employment to at least one mil
lion employees. This, however, gives
but an imperfect idea of the numoer
employed Indirectly, that is in car
shops and locomotive works, and
equipment shops of all kinds. blast
furnaces, rail mills and myriad in
dustries dependent upon the railways
for their prosperity. AS the percent
age Of increase in equipment has been
reduced from ten per cent, in 1890, to
an actual decrease in 1895, it may be
safely assumed that thousands indi-
rectly engaged have been thrown out
of employment. A perusal of The STA
tistics of railways as compiled by the
United States government shows con-
clusively that under existing condi-
tions most of our railways are running
behind and the few that are apparent
ly holding their own are far from hope
full for the future. Economical man.
agement is one thing, but forced econ
omies can only result In deteriora-
ton of the property. For few years
some of our older railways can thus
economic, but it is only by continued
and liberal expenditure of money,
that track, roadbed, bridges, equip
ment 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 en-
ployes of all grades should study this
side of the question, With freight
and passenger rates less than those OF
European countries, where labor is
paid about half the American rates,
how long will our railways be able to
tide along with reduced forces aud
three quarter time? Unless the de-
cline in receipts is stopped, wages
must be reduced, and then the trouble
will begin. Taking an army OF two
hundred thousand men out of active
employment In one occupation is a
pretty serious business. That means
an actual loss in wages alone Of moi
less than 100000. Here we have
the direct loss. The indirect loss
comes from the irreparable injury T.,
the properties by reason of not keep
ing them up, ultimately entailing ad
ditional. losses. The reduction of rate
between 1890 and 1895 represents a los
of revenue of over 800, 100000 -Sl5,
500. 900 in passenger tratfir and $87 900,
900 in freight traffic. OF course this
sum was remitted to the people OF tn.
United States, but the question i.
can the people afford to force an in
dustry in which nearly one-fifrh on
twenty per cent Of the total wealth o'
the country is invested to POM
where nearly half the stock and md
pay nothing in dividend and intere>'
and the current expenses must b. re-
ced below the safety point. rhi>
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