The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-04-02
Lots Of Ignorance Concerning
Affairs Of Railways.
Conceptions of Their
Charges and Profits.
DIVIDENDS NOT LARGE
Average I'm Most Prosperous
Year Was IA Per Cent.
Other Items Of Interest to
Railway People.

considering the widespread agita-
ton in regard to railroad companies, it
is remarkable how little the general
public knows about them and how
grossly incorrect are all of the popular
conceptions in regard to railroad
charges and railroad profits" says the
Chicago Tribune editorialIy. 1.-The
salient facts in regard to these mis-
conceptions have been finely condensed
in a recent article in the Prairie Farm
er.
THE railroads of this country have
practically been constructed since 1850.
The mileage in that year was 9,021 and
in 1906 it was 216,97s. The universal
impression is that the companies are
overcapitalized, although it requires
only a simple arithmetical computa-
ton to show the contrary. Professor
Adams, the statistician of the inter-
state commerce commission, estimated
in 1905 that the total capitalizat alton of
all the railways, including equipment,
was $11,959, a48, $40. or an average of
$55. 900 a mile, which is obviously not
excessive.
Having taken up with the idea that
the roads are overcapitalized, the pub
lie is saturated with the idea that they
are all prosperous and all yield enor-
nous profits. So far from this being
true the history of railroads in this
country is largely a record OF heavy
losses, bankruptcies and receiverships
large in proportion to the investments.
During the Is months ending July 1,
1894, no less than $4,000 miles of rail-
road passed into the hands of receiv-
ers. Between November, 1898, and No
vember, 1896, the number of miles in
the hands of receivers varied from TO-
600 to 1868. AS to profits, the year
ending June go 1905. was the most
prosperous in the history of American
railways and In that year the total
amount paid as interest on bonds and
dividends on stock was only $493.431,-
435 or A per cent on the actual net
capitalization.
1.-THE greatest fault found with the
railway companies is based on rates
and this complaint is just as great a
delusion as the rest The average
freight rate per ton per mile in the
United States declined from 2.62 cents
in 1870 to rs cent in 1905, and this
while the freight rate per ton per mile
is 116 cents in Hungary, lao cents in
Austria, 142 cents in Germany and
cents in the United Kingdom.
THE passenger rates are little
higher in America than in Europe, but
this is more than accounted for by the
greater density of 7opula ton In Eur
one. If the European railways had to
haul passengers over the trackless
deserts of this country their passenger
rates would probably be twice as great
as the American rates.
''These are facts from which there is
no escape and what comment they
are on the existing crusade against the
railroads! The American railways are
the glory of the country and have done
much to create its phenomenal prosper
itv They have met with heavy losses
and are at the best deriving only mod
est profits, and yet the whole country
seems to be leagued against them as II
they were public enemies"