The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1897-02-20
AMERICAN RAILWAYS.
some Interesting Facts as to Their
Present Condition.

PooAiohSo IA 4C(CAA AuA4L-
Der of 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 1890, 0O0, 600. and over 1900 miles Of
road. Next to our farms, which aggregate
1,3OO,OOO,OD these great properties VIII
form. at the close of the century. the most
valuable assets of the republic. The con-
struction of the great systems Of trans
portation has played an important, II 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 Of ongress have granted
hearings at Washington to those represent
ing our several industries. In reading the
published testimony. one is struck with the
oeplorable accounts given Of the condition
OF many branches Of manufacture. While
not occupying the public mind to anything
k the extent of the manufacturer, the
American railroad is in as bad, II 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-
peated with emphasis on a larger and even
more impressive scale. Loss of earnings,
reductions Of rates below the paying point,
actual loss In passenger traffic, deteriora-
ton of roadbed, reduction in the number
of employees. others working half-time, re-
ceiverships, foreclosure sales, practically
Ldtl VI lHlS eEOTHOuS investment DTlLSluS
no returns. and the blight Of insolvency
steadily settling down upon our entire sys-
tenn.
The losses and disasters arising from
these conditions nave been widespread and
f~ar-reaching. In the first place, 1t is I'M
doubtedly true that in no other industry
Is SO large a business carried on upon so
small a banking account. A railway COM
pany is a great distributor. not only of
passenger and freight, but Of money. AS
fast as its earnings come in, they go out
again. First. we lave the army of direct
employees, which reached nearly $4,000 a
few years AGO. but which has been reduced
fully 10000. 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, hat is, in car shops and loco
motive works, and equipment shops of all
kinds, blast furnaces, rail mills and q
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 1880, to an
actual decrease in 1895, 1t may be safely
assumed that thousands indirectly engaged
have been thrown out of employment. A
perusal of the statistics of railways as
compiled by the United States govern
ment shows conclusively that under ex-
listing conditions most of our railways are
running behind, and the few that are ap-
parently holding their own are far from
hopeful for the future. Economical man
agement is one thing, but forced economies
can only result in a deterioration of the
property. For a few years some of our
older railways can thus economize, but 1t
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
fo-z 60 ah1- hoe haa~ - {e l.
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, a must be re-
duced, and then the trouble will begin.
Taking an army of 200, 0O0 men out of active
employment in one occupation is a pretty
serious business. That means an annual
loss in wages OF not less than $3.50. OO0. 900.
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, a V a small rally in 1922.
are steadily coming down. When compared
with foreign countries, are rates are in
deed low. It is said that If the Pennsyl-
vania Railroad company could secure the
same rates as the London & Northwestern
company, the annual earnings would be
increased 81, GOO, OGO. Mr.. George r. Blanch-
ard, in his recent testimony before the in
terstate commerce committee of the sem
ate, said that had our railways collected the
lowest of the European charges, we
would have received 1910, 900, 000 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 a greater difference.
The impartial student of these data must
be struck with the necessity of CONNER
clal as well as Industrial reconstruction.
The census reports OF 1880 and 1890 and tbs
of the interstate commerce COM
mission, all of which are uniform, together
the valuable reports of H. V. Poor.
give US material on which to base a 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 1 can learn, there
10 no desire on the part of railway man.
ayers to generally raise rates. There IS,
a widespread belief hat rock
bottom prices have been reached, and
hat anything. even the merest shade lower,
will be absolutely ruinous.
The case against the railways is a IA
niliar one. Those who realize these new
conditions have no excuses or apologies
for past mismanagement, nor for the
methods by which some of these roads
were built. Whatever may be said of those
who built railways far in advance of popu-
or for purposes other than leg1ti-
trade, we have, on the other hand,
equally to blame, the cities and towns
and counties and individuals who were
to mortgage the future to help along
the work. In a large measure the wind
the water and the fraud have been
out of these properties. In their
new and honestly-acquired capital
n the shape Of enforced loans from bond
holders and forced assessment of stock
holders has been invested. Foreclosures
sheriff and the courts have wiped out
much of the inflated values and new CAPT.
al with reorganization for business pur-
poses has followed. Surely no one will
ieny that the consolidation and changes,
;ay of the last decade, ave been bene-
fetal There is more uniform action than
,ver before. Better business principles pre-
;ail. The public have never been so well
so cheaply served as now. Consider
the hard times, the discharges, the
.educed time, there has never existed bet
er feeling between the railway employe
md the officers than at present. The loss
# Sl0O, 900. 600 income in five years must
rave been a staggering blow. A continu-
alton of this sort OF thing would simply
destroy much of our wealth and arrest b
of the republic
II Id $500 AE~ 49,