Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1912-11-28
RAILROADS HAVE
NOT KEPT PACE

Washington. Nov. o7.--An interest
ing study worked out by the bureau
of railway economics leads to the con
clusion that the money and brains
which have been put into the construc-
ton of steam railways in the United
states have been rewarded to n muc1
smaller extent than similar invest
ments In the other two great branches
of Industry, agriculture and manufac- =
turing,
In brief. the case as made out by |
the bureau Is as follows The capital !
value of the agricultural industry In
1870 was S1G,0S2,00 In the next
ten yeurs this Increased to s20,439.o0H,- !
uvo, and in the ten years from 1900 t"
1919 1t further increased to s4o.ssl,-
100000. In the decade from 1890 on
the capital value Of agriculture 'n-
creased q per cent. III the next dec
AIDE it Increased 1905 per cent
The capital value of manufactures
is not obtainable for the first period.
but in 1900 1t was ss.975.O 900. 900. Hy
1910 this total had grown to $685.
| 100000, or to the extent OF 1858 per
cent.
The cost Of road and equipment for
all of the railways was s1755.0o,oOo in
$50 80, 1853. 600, 900 In 1900, and sl4.SS7.-
10000 in 1910 In the first decade 1t in
| creased 1928 per cent, as against the q
per cent. increase shown in the value Of
agriculture In the next ten years. from
1900 to 1910, the value Of the railways in.
| cod >
with an increase Of 1905 per cent. for
agriculture and 1863 per cent. for manu-
features.
| With an increase of 80 per cent. in the
cost of road and equipment, the net capi-
talization Of the railways increased 235
per cent. from 1890 to 1900. With fur
Their increase of 10 per cent. In the value
by 1900, the net capitalization increa sed
635 per cent. During the earlier decade
agricultural value increased in some
| what lower ratio than railway invest
ment. while in the second decade the rate
of increase was two and one-half times
I as high for agriculture and over two and
. one half times high for manufaci ures
2 as for railways. The increases I'm the
capital value of agriculture and OF manu-
7 features In the second decade We're each
more than so per cent greater than even
the increase in the capitalization OF the
railways
The greater percentage Of increase In
capitalization than in the cost of road and
. equipment was largely due 10 the fact
that railways to a large extent had not
written up on their books the values Of
their real properties which they did not
charge TO property account.
More difficult and uncertain than a COM
u parison of the capital values OF the agri-
n cultural. manufacturing and railway in
" lustries Is a comparison of the annual re-
turns upon these capital values. 1t was
found mpracticable even to attempt an
estimate of the returns from agriculture
that would be suitable for such cOmpa1-
con. In the case of manufactures and
railways. however, the operating or ruin
ming expenses and the taxes may he as
/ certained, and thus an approximation
i may be had to the net returns of capital
Such a process indicates an average ne
, return Of the capital invested in manu-
features Of III per cent, in 1870 and o.
io0i per cent in 1910 TIE railways ne
return on the cost Of road and equipmen
was i6 per cent in 1900 and 81 per cent
- in 1910 In 1900, then, the percentage o
- net return upon capital in manufacture
was nearly -four times as great as that ol
- the cost of road and equipment of tn
20 railways. From 1900 to 1910 tho capital II
'e manufactures increased l06 per cent. ant
~ the cost of road equipment of the rail
ways increa sed +O.2 per cent. In the lat
!" Yer year the percentage OF net return o
capital in manufactures was two and one
'e tenth times as great as that OF the rail
ways
" with "a railway, as with manufac
III turing plant, the land is an indispens
~ able factor and its value also enhance
CIV by unearned increment unless II be con
IL sidered that 1t is largely because q
transportation service Uat the value q
NO adjoining land is enhanced and tha
81 therefore in measure the rising valu
&C of railway real estate Is II reflex of III
service performed bysthe railways. Wit
a railway, as with a manufacturing er
terprlse, the principal investment IL
ng the plant in the case of the railway
20, is IN the roadbed, cars and locomotive
buildings, and appliances with n raj
ire way as with a manufacturing plan
id. the return upon capital depends in n
a small measure upon efficient and &c,
,se nomical methods OF operation, and al,
IN. upon the vigOr with which traffic
led secured and developed and there
rapid depreciation.
Mt Therefore. there Is a greater simlarl
between the railway and manufacture
industries than between either OF the
y" and the agricultural industry. a respe
In which the agricultural distinctly diffe
from the manufacturing or railway
dustry Is In the comparatively slight e
ign tent to which establishment as "goi
to concern" affects the capital value of I
farm us contrasted with the considerat
Cd. VALUE which establishment as a goi
re. concern attaches 10 q snanufacturi