The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-03-04

all, which makes a higher average for
the roads which do pay dividends.
CHARGES DECREASING.
When ] entered the railroad service,
in 1866, the rate per ton per mile for
freight was two cents, or twenty mills
the average rate per ton per mile on
all railroads of the country in 1898 was
about seven mills. lnis reduction
makes the rate of today little more
than third of what 1t was thirty
years ago. Had our railroads received
in 1898 the same rates for freight which
they did thirty years ago their income
would have been more than double.
One mill per ton per mile yields one
million of dollars year on the New
York Central. This reduction has
enormously stimulated the productive
energies of the United States. The in
terest on the bonded debt at that period
averaged per cent. 1t has now come
down to about Az per cent, while most
of the railroads which were payinfi
or 10 per cent. have come down to 4
or per cent. The public has received
the whole of this reduction; none of it
has been taken off from labor. one
bushel of wheat in 1866 would carry
two bushels from Chicago to New
York; one bushel of wheat in 1898
would carry six bushels from Chicago
to New York.
SALARIES.
Much is said about the salaries of
the general officers, but while 81 per
cent of the operating expenses Of the
railways was paid directly to the en-
ployes, only per cent of this went to
the general officers last year. In this
same thirty-threc years of my railroad
service, while rates have gone down
one-half for freight and one-third for
passengers, the taxes have doubled.
These reductions in the net earnings
of the railway have not been felt at
all by the employees. On the contrary,
their wages have been constantly in
creased. l take, for example. the pay
roll Of the New York Central, with
which am more familiar. In 1878 the
average pay of engineers on the New
York Central was 500 per month on
passenger trains and now it is $3.50 per
month; for freight engineers $50 in
1873 and now 800; for firemen $40 per
month in 1878, now $75 on passenger
trains and $50 on freight trains. Train
men and brakemen received in 1873 $35
per month and now from $45 to $50 per
month. Trackmen received in 1873 S71a
cents per day and now they receive
$1.35 per day. The bOndholders re-
ceived then per cent interest on their
bonds and the stockholders per cent
interest on their stock. The interest
on the bonds has been reduced to 31a
per cent. and the dividends on the
stock to 4 per cent.
SPECULATION.
The building of 10000 miles of rail-
way in thirty years led to great con-
fusion and to many errors and mis-
taxes. On the one hand it stimulated d
an enormous immigration and settle
ment; the productive energies of the
country were pushed to their utmost
and everywhere was feverish haste
Speculative spirit was aroused ant
periods OF prosperity soon developed
mad speculation, and ended in a series
OF panics phenomenal in the history
of business and finance. States, ter
ritories, farming communities, mining
centers and cities clamored for rail-
ways. Agents SwaCmcd over Europe
presenting glowing pictures of the OPP
portunitieS for homes, comfort and
wealth in these new communities, and
along the lines of these recently con-
structed railways. Syndicates and
construction companies pushed the
lines as far and fast as the securities
could be sold in the market. As fast
as the construction company had closed
its account upon one line it moved tc
new enterprise. and the public be.
came the possessors of the securities
of the new corporation. In most in
stances the line at first did not pay
and the investing public lost vast sums
Of money by the depreciation Of the
stocks and bonds, or the foreclosure
and reorganization of the companies
The communities which had been most
clamorous for the railways, and had
felt their benefits in the increased value
of their farms, in the development OF
their water-nower and in the sudden
building of their towns, soon came into
collision with the managers Of tn,
lines on the question of freight rates
Politicians and demagogues who had
been most active in stimulating tn
popular demand for the railroad saw
their opportunity in promoting preju-
diccs against il. rhe railway mana.
gers of that period did not appreciate
their dues to the public. They wer1
autoCratic and arbitrary. and in many
instances unframed. The business
grew beyond the educatlOE Of mel
competent to manage il. 1t takes the
qualities which produce q great GEL
eral aCd make a successful business
man on large scale to manage the
intricate relations of a railway com,
pany with its several communities. with
the general public, and with it's EN-.
ployes and owners Enormous prices
for salaries and in lump sums We're bid
for this talent often without success
The difference between an able and
even moderately equipped managcl
will be TO great railroad so many
millions of dollars that his salary cuts
no figure. The inability of MANY rail.
way managers to grasp the situation
the panlcs which threw whole com,
munities into bankruptcy or suspended
industries which meant extreme pow.
orty, and the misrepresentation o
the politician who hoped to climb tc
power on new issue, created violent
/ ttllldS SDlllSltS III IlullN SltleS between
the people and the railroads.
POPULISM.
Then came forward a class Of states
| men who formulated bills as remark
abla for their ignorance of the situation
as they We're injurious 10 both the
operations Of the road and to the peo.
pie who patronized 1t. The grea test
ana most intricate scientific problem