The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-08-18
SOME RAILROAD FACTS.

| SOME RAILROAD FACTS.
The following interesting statement
appears in a late folder issued by the
Union Pacific railroad company and
| is worthy of thoughtful and reaaon-
able consideration:
| Measured by the standard of prices
OF commodities In general-and it is
what things cost that determine the
value of money-American railway
rates actually have decreased about
25 per cent In the last ten years.
To put 1t another way, the railroads
have to pay more for everything they
buy. including labor, and are compell-
ed to accept less for the only thing
they have to sell-transportation. AS
prices rise the value of money falls,
therefore, not only are railroads stop
ped from meeting general elevation
in prices with advanced rates, but
they are not able to buy as much for
their money as they once were.
In addition to the cost of equip
ment, material and labor taxes for
forty-seven railroads enumerated in
i a recent report from the white house,
advanced In the last year or two more
than IL per cent These forty-seven
roads in August, SO this report shows,
earned total of s70,130,152 net earn
fngs. the taxes for the month being
$3.50, 233. In ten years their taxes
II have increased from 1881 to $431 per
mile. In those same ten years prices
increased so that given quantity of
farm products today will buy So per
cent more railroad transportation than
ten years ago; of cloths and clothing
46 per cent more. OF building mater
falls 70 per cent more, of meats "a per
cent and of dairy and garden products
so per cent more, in railroad transpor-
1 tatton, than ten years ago.
In this same ten-year period the re-
ductton In freight rates far outweigh
ed the advances.
This Is q time OF unprecedented
prosperity and production, the great
railroads of the country are not shar-
ing in the abundance upon anything
like the same basis as other indus
! tries.
1t has been pointed ont that these
forty-seyen railroads showed net oper-
ating revenues for the month of Au-
gust, 1912, OF s77,638,413, as against
ST., 3s1, 1872 for August, 1911. and s62,-
005, 137 for August, 1910, and the as
sertion is made that there is gradual
increase in net earnings. But that
takes no account of the increased cost
OF materials and labor and higher
taxes, which largely wipe out the mar
gin of profit or gain.
This showing will serve to illustrate
in general way: From 1000 to 1910
the total operating revenues Of Amer.
lean railways increased from s1,487,-
! 044S14 to ,75o,es5435, or s5 per
cent, apparently healthful gain. But
/ the percentage Of net returns on the
cost OF road and equipment increased
from as to 81 per cent. Higher
/ prices, wages, taxes, interests and
lower rates combine to wipe out al
most IL not entirely the margin gain
ed from gross earnings.
In that same decade however, the
capital value of manufactures increas-
ed 1925 per cent; the gross value of
the products Of manufactures 812 per
cent.
Now for some specific increases:
The railways In the territory east OF
/ Chicago and st. Louis and north of the
! Ohio and Potomac rivers were Obliged
to pay their enginemen s10,000,000
more than they would have paid them
had the 1900 scale remained in effect;
TO their firemen more than $4,000
more, to their conductors the same
and to their other trainmen over $751;
100000 more These amounts would
be doubled for the trainmen of all the
American railways. This does not
mean that more wages were paid be
cause Of more employees, but 1t is fig
ured on the basis Of the same number
Of employees in 1900 and 1911
, But the railroads must go on extend
ing old and building new lines, buy
ing new equipment and modern safe
ty appliances, keeping abreast of the
procession of the eyer-multiplying de-
mands of the public. This requires
, capital. y Is evident that the capital
is not forthcoming from the revenue
under existing conditions And it Ger.
tainly ought 70 be equally apparent