The Dermott news., 1914-06-04

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been millions of dollars taken out of
the earnings in the last 20 years and
have gone into improvements which
have probably more than absorbed the
watered stock that was supposed to be
in these systems We should not for
get, moreover. that since 1876 there
have been 734 roads in the United
States pass through receivers hands,
with 135,567 miles OF track and with
stocks and bonds of $7,Sl2, 697 900. In
reorganizations through which these
roads passed the stocks were scaled
down, often annihilated, and some
times the bondholders' investments
were eXtinguished
The situation today may be sue
cinctly stated thus: Owing to the in
creased cost of operation and the
strlcter demands of shippers and trav-
elers for modern service, and the re-
quirements of the government in re-
speet to safety appliances, etc, the
railroads are operating under a vastly
| larger expense. while their revenue
from freight and passenger traffic has
teen growing steadily less. According
10 Charles \. Gonant, author OF "Prin-
clples of Money and Banking" the
purchasing power of the railroads dol
lar has declined 81 per cent between
1886 and 1912. We can now under
stand why our railroads are bent al
most to the point of breaking They
are facing a crisis. Their responsible
officers are haunted with the fear of
deficit. A continued deficit means
ultimate foreclosure. That is why
upward of 100000 men have been
taken from the payrolls in the
last four months. This is why
no rails, no cars, no supplies are
being bought, except for hand-to-
mouth existence. When the railroad
lays off 100000 men, 100000 men go
on half rations. Merchants along the
line sell them just half as much to
eat and wear. When railroads stop
buying, perhaps half million other
men stop working at the mills which
make their rails and engines and cars
and other equipment. These men are
also on half rations. They buy less
and their bills are not paid. Every
tradesman feels it and finally the
farmer feels it. He feels it last, but
he feels it most.
But talk about feeling, he feels that
the railroads rob him every time he
ships a load of stuff to market and
ships another load home. | wonder if
he often stops and figures just how
much he pays the railroad for it's
service. Suppose We ask the Inter
State Commerce Commission, which
now fixes the rates and keeps them
on file. The commission will tell you
that a farmer can ship an axe from
New York to Chicago for 21a cents.
II it costs him IS cents he pays one
thirtieth OF the selling price to the
railroad. He can ship live cattle and
hogs these thousand miles for $40
of a cent pound. If they sell for
cents pound he pays one-twenty-
seventh OF the selling price to the
railroad. He can ship coffee a thou
sand miles for 1-3 cent a pound. II
lie pays 30 cents pound for it he pays
one-ninetieth of the selling price to
the railroad. He can ship a set of
harness a thousand miles for 43k
cents and If it sells for $35 he pays
the railroad one-eightieth of the SELL
ing price for freight. He can ship q
harrow thousand miles for S105. He
can ship a motorcycle for $3.50 q thou
sand miles. He can ship a piano a
thousand miles for Sc. lie can ship
a moving machine thousand miles
for $685., pillow for 46&4 cents, rake
for rs cents, a sewing machine for
$1.01, a pair of shoes for 2 90 cents
and shotgun for 712 cents, shovel
for 3 cents, suit of clothes or over
coat for 6 cents, and he can ship raw
wool from Billings, Mont, to New
York City, 2,262 miles, for 1.3 cents
pound.
The department of agriculture has
called our attention to the fact that
when a farmer receives so per cent
of the consumers price on pound Of :
butter the freight charge on that
pound Of butter is about one-han OF
1 per cent of what the consumer paSfs.
authority has estimated nat
the railroads get only one-twentieth
of the retail price ON farm products
for an average haul Of 1900 miles. or