The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-10-13


many States and so far as the opera
tions of the roads are concerned, the
State lines cut no figure. The roads
are National. having passed altogether
beyond State control or authority:
therefore, il was quite appropriate Tor
President Taft to deal with them as
National problem. When lie appealed
| TO the audieuce-which comprises the
whole country when he speaks-saying,
"rLet us treat the railroads as part of
the community. entitled TO adequate
compensation for services rendered, -
he spoke the words of reason and com.
mon business sense And when he
made the appeal further, ''Don Z let us
encourage attacks on railroads just be-
cause they are railroads. - he spoke a
seasonable word And he concluded his
appeal
wage earners dependent upon the rail
roads for support. and there IS a great
number Of shippers dependent upon them
Let us treat the railroads as n part of
our civilization, and when we lind a
man who is trying TO claim political
power just by condemning the railroads
Jet us WISH Dlfn WllN the concentration ne
deserves. Let us leave the railroads TO
work out their destiny under the law.
Let us take them ont OF politics and
make them get out of politics.
That is good, plain, common sense;
and we doubt If any one will find fault
with it. In precisely the same line of
thought which President Taft INDUCED
in, the Bureau Of Railroad Economics
at Washington, d. c.. which is a part
Of the administration, has given out
railroad returns for the fiscal year end
ing June 30th last, based upon the re-
ports Of steam roads over fifty miles
in length. These reports show that
the roads are entitled 10 consideration
that in some quarters they have not
received They show that there was
during the year An astonishing and
grievous falling off in the operating
revenues of the roads for the previous
fiscal year This decrease was nine
teen cents per mile, reckoning the
whole railway mileage of the country,
The summary of the bureau is as fol,
lows:
. he total operating revenue OF the lall-
WAYS OF the United States for the last
fiscal year averaged $32.SI per mile per
day. This is the average amount re-
ceived for each mile of line for each day
for carrying freight. passengers. mails,
and express. These total operating rev
enues are 10 cents per mile per day less
than for the fiscal year ending June 80.
1910. This is equivalent to an aggre-
gate decrease for all the railways for the
entire year of nearly sl7. 900. 600
The total operating expenses averaged
average amount paid for each mile for
each day for salaries, wages. fuel. and
other supplies eNpenIes Of maintaining
tracks, stations and bridges and Of main
taining and operating cars and locomo-
tives. From the reports Of 20 per
cent of the railway mileage. which
excludes railways under fifty miles long.
II appears that operating expenses for
the year ending June 30 1911. are the
highcs; on record 'fhcy are 60 cents
per mile per day higher Than for the
aggregate increase Of over S5e.0oO,o00 for
all the railways for the entire year. This
is notwithstanding the Hgfd economies In
opera ton the retrenchmcnt in labor force
and the cutting down in maintenance cN-
penses.
The net operating revenue. which is the
total operating revenue less operating
expenses averaged $l029. per mile per
day, Taxes increased and revenue from
outside operations such as boat and ferry
lines. dining cars. etc, fell OFF, so that
ating revenue with revenue from outside
operations added and taxes deducted
was 81 cents per mile per day less than
for the previous fiscal year. This amounts
TO total decrease in operating income
Of over sI5. .0O0. 900 or over onc-fourth OF
the total amount OF net dividend paid by
the railways. for the fiscal year ending
There are stIr those who "hold the
opinion that bonds and stocks are so
watered that the payment Of current in
Get Alicia l.. ..... I
that rates should be reduced in spite Of
tho injury 10 security holders. The at
tention of such is directed 10 the fact
that II the total amounts now being paid
dividends on railway stock he capitalized
on a basis Of per cent. the effective
ca pitalization' thereby shown will be
found 10 be an amount averaging less
per mile Than that FOR which a railroad
can he constructed and equipped today,
This effective capitalization, that Is
amount Of interest on bonds and dIyi
dends on stock would equal per cent
averaged for 1909 Sii.2i3 per mile, where
as the net capitalization given by the In
wear averaged 500. $50 per mile. The ef-
fective capitalization for 1910 was APP
proXimaiely si1.l23 per mile and the net
capitalization approximately so9. J2S per
mile. The aggregate effective .Capitali-
zation for 1909 was less than $lO50O 600
900. for 1910 less than Sll. 400, O00. 600.
= w 30 'lbo h5-lN5alN - lpN dS SFN
ascertanable.
This showing of decrease of So
100000 in the operating income of the
roads, being more than one-fourth Of
the total amount of net dividends paid
by the railways for the fiscal year end
ing June 80 1910, is certainly a very
serious loss. IT is TO be noted also,
that the reply TO those who plead the
watering OF the stocks is effective as
applied to present conditions. though
defective as applied to the conditions
when the watering WAS applied
The same statement is also a con.
elusive answer to the La Toilette plea
for the actual valuation of the roads
for the purpose Of levying taxation
thereon. II it is true, as the Bureau Of
Railway Economics says, that the val.
ues of the roads are now fully up to
the amounts of bonds and stocks is
sued upon them, there would be no al