The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1914-12-31
WHAT THE RAILROADS
DO WITH THEIR INCOME
WHY THEY ARE CONSIDERED THE GREAT
BUSINESS BAROMETER OF
THE NATION

every dollar they receive for the serv.-
ices they render to the people.
As matter of fact, II every rail-
road in the country had charged on q
proper percentage for depreciation. In
stead Of having had surplus OF $780,
100000 left In 1913 they would have
had an actual deficit running into the
millions. Some Of the larger systems
have a fixed yearly depreciation
charge-but scores OF the weaker lines
in their frantic endeavor to pay the
interest on their debts and maintain
the standing of their securities, use
every dollar OF their income to this
end, and hence one OF the most alarm
ing phases OF the present railroad ait
uation Is that this process of burning
the candle at both ends" means de-
terioration OF rolling stock and road
beds which will render the continuance
of adequate and safe service for the
public impossible. In recent article,
James ]. Hill. the great "e1npire build
er OF the NORTH points out that
American railroads should spend at
least $500, 000. 900 annually In improve
ments and betterments-and 1t is
therefore no exaggeration to say that
rapidly deteriorating equipment is one
OF the ghosts which haunts hundreds
OF railroad managers throughout the
country ut the present hour.
As we stated in last weeks article.
the operating income OF the railroads
for the fiscal year ending June 30.
1914. was $I1s.554,s75 less than for
1918, while expenses and taxes were
$49, 635.653 greater. It can therefore
be seen at glance that unless the
railroads are given some increase In
rates In the very near future the time
when many Of them will 60 upon the
and yet the slight increase necessary
to save them is so small that the av-
erage citizen would not be conscious
OF it after~it had gone into effect. In
a future article this question will be
more fully discussed.
"A BAROMETER OF PROSPERITY.
1t is an old saying that when the
railroads are prosperous everybody is
prosperous. and the manner IN which
their income is discussed, as above ex-
planned, tells the reason why. In
short, for years they have been re-
garded as the great business baromet-
er OF the NATION. No other industry
| In the country employs so many men
as do the railroads. and. furthermore,
1t is high grade of labor employed
| in any other large industry. When
times are good nearly two million peo-
iple, first and last, are employed by the
railroads, and when this vast army is
working full time and is contented
the millions they pay out for merchan-
] disc and for the living necessities pro-
duced on the farm cannot help but
have tremendous effect upon the
commerce and agriculture Of the
| country.
I But this is only half the story.
! Aside from the nearly two million
operatives directly employed by the
! railroads in normal times, the hun
dreds of thousands of men who work
in the great steel mills. the coal mines,
the lumber industry and in the big
car and locomotive shops are equally
vitality affected, for when the railroads
are making extensive improvements
and buying heavily OF these supplies
I 1t means that these great industries
are running full shift. while when the
railroads are subsisting only upon
absolute necessities It means that
many OF them are only working half
shift and this is the state Of affairs
! which has prevailed for some time and
which is responsible for the thous-
ands OF unemployed who crowd every
city in the land at the present NOM
ent.
FARMER vITALLY CONCERNED.
/ That the farmer has very vital and
!! personal interest In this situation
should be apparent at a glance. When
1.-THE millions of laboring men In the
i United States are probably employed
and when all our great Industrial en-
I terprises are running full sniff Il
means that he will have large de-
mand and receive higher price for
i the things he produces on his farm
for his corn, wheat, pork, beef, NUT
ton, cotton, wool and other farm pro.
ducts In other words, so interdepen-
dent have we become, and so closely
allied are the interests OF the farmer.
the merchant, the manufacturer, the
I LABOR and every other great national
4 interest, that the prosperity OF one
has become the prosperity OF all.
I (Pafd adv To be continued next week.
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