The Marshall republican., 1912-01-18
Regulating Railroads

on account OF the sound
logic 1t contains.
what would you think OF ply
AFGHAN who would diagnose a case
from general appearances without
taking the count OF the pulse or
placing his a at the hearth
What would you think OF mer-
camille agency which would at
tempt to fix the financial standing
of A business and give II
proper rating, purely from appear
ances, or rumor, OF prejudiceP
What would you think OF a chem
list who would unheasitatingly pass
judgement upon metal from the
mere hearsay OF some man who
held no scientific diplomat
The answer IL obvious.
And yet some OF the politicians
OF the country do not hesitate to
tell the people all about the pro-
fits of the railways, giving myth
cal figures that come from i'm
aginative brains. And the people,
usually cautious in dealing with
their own business facts, accept
without question the most fabu-
lous statements about railroads
Probably there are not many PEG
pie In the land today who II asked
about railroad earnings OF last
year would not Immediately yell
that earnings were greater and ex-
penses smaller than ever before.
And yet the plain facts OF in
disputable records are, that there
was n great decrease In the rev.
enues for the fiscal year ending
June 80, 1911. And there was a
great increase In operating eN-
penses.
Fortunately there are reliable
statistics upon the subject for
those who wish TO study the net
results OF railway operation. The
bureau of railway economics show
that the railways OF the country
earned S32.s7 per mile each day
last year in carrying freight, pas
sengers, mail and express. This
was 10 cents per mile per day less
than for the fiscal year ending June
80, 1910. This would be for all
the railroads 81, 100000 less In
revenues than the previous fiscal
year yielded.
Here's the other side:
While revenues were going down
at the rate OF 10 cents per mile pei
day, operating expenses were GO
Ing up 65 cents per mile per day.
The total operating expenses
were $22.5s per mile per day for
the past year.
For the fiscal year ending June
80, they were only S2l.93 per mile
per day.
The 65 cents per mile per day in
crease in salaries, wages, fuel, sup
plies, repairs and renewal of tracks
bridges etc., amounts to the enor-
nous increase of S56,OOO,00O over
the previous fiscal year.
The net operating revenue, which
Is the total operating revenue less
operating expenses, averaged $10.2S
per mile per day. Taxes increased
and revenue from outside opera
tons such as boat and ferry lines
dining cars, etc., fell off, so that
the operating income which is net
operating revenue with revenue
from outside operations added anG
taxes deducted was 81 cents pei
mile per day less than for the
previous fiscal year. This amonti
to a total decrease in operating in.
como of over $75,OOO,O0O, or ovel
one-fourth of the total amount Of
net dividend paid by the railways
for the fiscal year ending June 80
1910.
A railroad is governed by JUS
the same natural law that governs
all healthy b%usiness-it must take
in nor money than 1t pays out.
The Beacon believes that the ne.
cessity of rate establishment is the
most serious problem Of the pres.
emit hour. Rates are too high al
some. points, they are doubtless toe
low at other points. Many iiscrin
nations have grown up which roll
communities OF their just CONNER
cial opportunities and their natur'
al advantages. These discrimina'
tions cannot be settled by sweep
ing resolutions demanding tn,
reduction OF all freight and passel
ger rates and the immediate arres
and imprisonment OF all railroa'
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