The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1909-01-21
$71 Out of Every 500 Earned Last
Year Went to Workers or
For Labor-Made Material.
FOUR P. c. FOR SHAREHOLDERS
About The Same for Bondholders-
Estimtes Made by Vice President
Brown of The N. Y. Central.

is question which w. G. Brown,
Senior Vice President of the New
York Central, set about to learn a lit
tie while ago. The result of his I'm
vestigations has been made public and
in doing so he answers the question.
Mr. Brown says 81 out of every
800 earned by the railroads In 1907
was almost Immediately redisbursed
in payment for labor or equipment and
material, of which labor forms by far
the largest component part. He says
that the railroads receive more and
keep less than almost any other de-
partment of business activity in this
country
Out of every 800 earned by the rail-
roads, he says, only SO goes to the
owners, the shareholders, represent
ing less than per cent on the face
value of the securities.
The result of Mr.. Browns investiga-
lions was contained in an address made
last week by him before the Illinois
Manufacturers Association.
I'm mileage the railroads of the Unit
ed States approximate 225,0O0 miles,"
said Mr.. Brown. "They employed in
1907 in the neighborhood of 1875, 900
men, and their gross earnings amount
ed to $2,5S5, $4,000, or more than ST.
100000 for each of the 365 days OF the
year. Figures of the magnitude can
be better comprehended by comparison
and it may be stated that the number
of employees on the payrolls of Ameri-
can railroads in 1907 was only about
$4,000 less than the standing armies
of the United States, Great Britain,
Germany, France and Japan combined.
Their gross earnings were three times
the total revenue of the United States
government twenty-nine times the
total gold production of the United
States and six times the total gold pro-
duction Of the world.
Let us see how this vast sum Of
money is disposed of by the railroads
what becomes of it.
LABOR ABSORBS THE MOST.
rectly and Immediately paid out to en-
ployes on the payrolls of the railroads.
Eight dollars are paid for fuel, waste,
oil and water; and 81 of the So go to
pay for labor required to produce these
supplies. Eighteen dollars are paid
for steel rails, ties, cars, engines, struc-
| tural steel, stationery, and thousands
of other things necessary in the opera
ton of a railroad. OF the SIS, appro-
Ximately SIG go for labor
Five dollars are paid for permanent
improvements, such as additions to
yards, additional tracks, additions and
extensions of shops, roundhouses, and
the like; and 81 of the IS are paid for
| labor.
Three dollars go to pay taxes; 50
| for rent of terminals, joint track, etc.
Fourteen dollars are paid as inter
est on bonds, which represent Dor
rowed money for original construction
or subsequent improvements; and this
sum amounts to less than an average of
4 per cent on the face value of the
bonds.
Nine dollars go to the owners OF
the railroads-the shareholders-repr
senting less than per cent on the
face value of the stock.
"One dollar is put into the surplus
fund to provide for necessary improve
ments to the property and as a reserve
against periods of hard times.
Approximately $71 out of every
500 earned by the railroads of the
country are, therefore, almost i'm
mediately redistributed in payment fol-
labor, or equipment and material, OF
which labor forms by far the largest
component part The railroad re-
ceives more and keeps less than al
most any other department of bust
ness activity of the Nation.
GOOD PRICES FOR THE FARMER
During the ten years from 1897 t.
1907 the United States has enjoyed al
almost continuous and uninterrupted
advance in prices of the product Of it
farms, factories, and mines. With ;
succession of bountiful harvests tn,
price of grain has steadily advance,
until the prices of 1907 show increase
over those of 1897 as follows:
Per Cent
CoIh '''''''''' '''' '''''''' 'o'4
Oats ....................
Rye OBSERVATION-DISCLOSURES. 81 %