Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1905-05-15
RAILROAD FINANCES.
All Is Not Profit in Railroad Man.
aqement - An Article Showing
Where the Money Goes.

asement - An Article Showing
Where the Money Goes.
Slason Thompson of the Chicago
General Managers association, one of
the best known transportation experts
in the United States has prepared an
interesting statement showing where
the immense gross earnings of Ameri-
can railways, now nearly two billions
of dollars year, actually goes.
The statement was suggested to Mr..
Thompson by the charge made during
recent criticism of the railways that
an undue proportion of their earnings
goes into the pockets of their share
holders
During the year 1908, the last for
which complete figures are obtainable,
Mr.. Thompson finds that the railways
earned a total of $1,90O,S46,907 out of
which s775,321, AIS was paid out to
employees in salaries and wages. Fuel
for locomotives, one Of the largest of
the items of cost of railway operation,
amounting to s146,509,O31. Railway
trackmen, the largest single class of
railway labor received $103426,6s5
in wages or 1884 per cent of the total
sum spent for labor. Common labor
ers and shop men come next in order,
each class receiving during the year
more than $84,00O,O00. Taxes paid by
the railways during the year amount
ed to $57,849,569 and the building and
repairing of freight and passenger
cars, locomotives and other equip
ment, renewals, bridges, ties, ballast,
rails and buildings represent an addi-
tional total expenditure of $192,OOO,-
900. Loss and damage, and payment
of personal injury claims represent
$2S, 100000 more.
These are only a few items in a
list of expenses surprisingly long.
Some of the other items worthy of at
tention show that train and station
supplies cost the railways $27,S56 $3.50,
that stationery and printing cost them
1,232,465 and that $5,376,36S was
spent for advertising.
Out Of the total of nearly two bill
lions of dollars dividends took $780,
1885,
An interesting fact is that labor,
fuel and taxes absorb more than half
of the total earnings. Capital absorb
ed less than one-fourth. Mr.. Thomp-
sons statistics show that while in the
United States the, demands of labor
alone took 40S of the total earnings,
in Germany during the same year
labor received but 1874 per cent. On
English lines labor received but 27.3
per cent. Capitals share in the
United States was 23.4 per cent, while
in Germany it was 1872 per cent, in
England 1872 per cent and in other
foreign countries equally high.
Mr.. Thompson charges to capitals
share the total dividend payments and
interest on bonds.
Similar, but incomplete compila-
tons Of figures for 1904 show that last
year labor absorbed slightly more
than AZ per cent of the total earnings
OF the railways. Commenting on
these figures, Mr.. Thompson says:
my investigation of foreign rail-
ways leads to several surprises. In
the United States the railway day
laborer receives an average of $1.31
day. In the United Kingdom he re-
ceives II cents, on the state railways
of Germany 81 cents, on the state
railways of France So cents, on the
state railways of Belgium 4S cents,
on the Italian state railways AZ cents,
| in Russia 20 cents and in India but
cents.
"Enginemen in the United States
average $4.O1 day. In England they
get $1.62 and in Belgium $1.O1. In
each of the other principal classes of
labor, pay in the United States stands
in the same relation to pay abroad.
Our railways hire better men and pay
them better wages than any other
railways in the world.
1T is only recently that American
railways have been profitable as in
vestments. For twelve years, from
1889 to 1899 $50 per cent of American
railway stock paid no dividends what
ever. Not until 1901 did a majority
of railway stocks pay dividends.
Even last year 43.94 per cent paid
nothing whatever. This period of
hard times and no dividends has ef-
feetually squeezed the water out of
railway stocks. Capitalization is $12,-
599,990,258 and of this amount the
railways own s2,31s, 1871 1853, giving net
capital 1903) of $10,2S1 sos, 3o5. The
total cost of American railways to
1908 was s1O,973, 5O4, s03 which is con-
stderably in excess of the net rail-
way capital and does not include 1874