The Ely miner., 1897-02-17
AMERICAN RAILWAYS.


are from an article by Mr. Robert p.
Porter on the Condition of American
Railways" published In recent num-
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 s. .300, ,000, 900, and over 10000 miles of
road. Next to our farms. which aggregate
81 ,300, 900 900, 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, If 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 committee of congress have granted
hearings at Washington TO those represent
ing our several industries. In reading the
published testimony. one is struck with the
deplorable accounts given of the condition
of many branches of manufacture. While
not occupying 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 ex-
tend its hearings to railways. the stories
of the recent tariff hearings would be re-
peated with emphasis on larger and even
more impressive scale. Loss of earnings.
reductions of rates below the paying point,
actual loss in passenger traffic, deteriora-
tion of roadbed, reduction in the number
of employees, others working half-time, re-
ceiverships, foreclosure sales, practically
half of this enormous investment bringing
no returns, and the blight of insolvency
steadily settling down upon our entire syS-
tenn.
The losses and disasters arising from
these conditions have been widespread and
far-reaching. In the first place, 1t is un-
doubtedly true that in no other industry
Is so large a business carried on upon so
small banking account. 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 have the army of direct
employees, which reached nearly $4,000
few years ago. but which has been reduced
fully 100000 With continued prosperity.
our railway system would have to-day
furnished direct employment to at least
1,00Q, 900 employees. This, however, gives but
an imperfect idea of the number employed
indirectly, that is, in car shops and loco
motive works, and equipment shops of all
kinds, blast furnaces, rail mills and
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
loss to labor has been enormous, and it is
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, wages must be re-
duced, and then the trouble will begin.
Taking an army of 200, ,O00 men out Of active
employment in one occupation Is pretty
serious business. That means an annual
loss in wages of not less than S150, ,0O0, ,000
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 1885, while
freight rates, save small rally in 1892
are steadily coming down. When compared
with foreign countries, are rates are in
deed low. 1t is said that if the Pennsyl-
vania Railroad company could secure the
same rates as the London & Northwestern
company, the annual earnings would be
increas sed s12, ,0OO, ,0G0 Mr.. George R. Blanch-
ard, in his recent testimony before the in
terstate commerce committee of the SEN
ate, said that had our railways collected the
lowest of the European charges, we
would have received $370, 100000 more than
we did receive. This calculation was based
on the figures of 1892. The figures of 1885,
which are lower for the United States,
would make greater difference.
The impartial student of these data must
be struck with the necessity of CONNER
cial as well as industrial reconstruction.
The census reports of 1880 and 1890 and the
statistics of the interstate commerce COM
mission. all of which are uniform, together
with the valuable reports of H. V. Poor.
give us material on which to base 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 manufactur-
ing industries. So far as 1 can learn, there
Is no desire on the part of railway man.
ayers to generally raise rates. There is.
however, a widespread belief that rock
bottom prices have been reached. and
that anything, even the merest shade lower,
will be absolutely ruinous.
The case against the railways Is a IA
miliar one. Those who realize these new
conditions have no excuses or apologies
for past mismana cement. 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-
lation, or for purposes other than legiti-
mate trade, we have. on the other hand.
equally to blame, the cities and towns
and counties and individuals who were
ready to mortgage the future to help along
the work In a large measure the wind
and the water and the fraud have been
squeezed out of these properties In their
place new and honestly-acquired capital
in the shape of enforced loans from bond
holders and forced assessment of stock
holders has been invested. Foreclosures.
the sheriff and the courts have wiped out
much of the inflated values and new capt.
tai with reorganization for business pur-
81