The independent. [volume] (Lincoln, Neb.) 1902-1907, 1905-11-02


there are five employees to the mile
at a cost Of $2,625 per year, in the
United ingdom there are eighteen per
mile costing $4,000 per year, and in
Russia fifteen at a cost Of $4,620 per
year. ! have gone into this subject
at length, for the single purpose of
showing how hazardous at present is
any extensive comparison OF railway
rates in this country and Europe.
Bankruptcy Not Imminent
The railroad officials were bent
upon giving the impression that
railway rates were now at the lowest
point of profitable operation and that
any power given to the commission
to reduce rates cannot but result in
bankrupting the railroad companies
Ny own Investigations have led me
to but one conclusion: That within
the last twenty years, with the actual
cost of transporting freight OF all
kinds constantly decreasing, the gen
eral level Of freight rates, If anything,
has increased so that now for practi-
cally the same service the revenue
is more than doubled. Grades and
curves have been reduced, power and
facilities of carrying are improved and
the density of traffic. the chief factor
In economy of operation, has been
greatly increased. Twenty years ago
the average weight of carload of
grain was 10000 poun0s. One engine
would draw train Of thirty to forty
cars. Today the average weight has
risen to about $4,000 pounds for car
of grain, coal and stone, and an en-
CINE hauls from fifty 70 sixty cars.
Something About Earnings
In 1895 on 1SO,657 miles Of road
the statistical reports of the interstate
commerce commission show that
gross earnings were In round num-
bers SLOTS, 100000; operating ex-
penses $725.000000 the net income
per mile $4,000. In 1904, upon 100000
miles of road the gross earnings were
about $4,000, 100000; operating ex-
penses about one and one-quarter bill
lion, and a net income of nearly $780,
900, 1000, which includes over 100000
900 received from other sources than
those of operation: the gross income
per mile about $1,000, and the net
income per mile about $500. An
examination of these figures will show
mile of road of nearly 80 per cent
In the net earnings.
The most trustworthy statistics as
shown in Poor's Manuai and the sta
tistical abstract of the interstate COM
merce commission show that at the
end of 1908 the 100000 miles of rail
road in the United States were cap
italized, including bonds. stocks and
all unfunded debts at 1929, LIT 1877,
or $65217 a mile. Figuring that the
5000 additional miles reported to the
Interstate commerce commission in
1904 were the same in amount the
above Capitalization would stand at
$13, $780, 19,797.
Railroad Stockholders Safe
Now | feel safe IN saying that on
ole familiar with the subject will
maintain thai the railroads of this
country have cost an average or $685.
217 a mile to build. But upon the
basis OF the net earnings actually
reported June 80. 1904. $634,25o,S73
and upon this huge capitalization the
railroads could pay return of b.4
per cent. This 1t must also be borne
in mind does not incfude an income
of 500. 7S66s4 from sources Other
than operation. which the interstate
commission saws should I've added Il
The net earnings. submit that any
business paving return OF over hvs
per cent upon capitalization OF over