Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1914-12-31
WHAT THE RAILROADS
DO WITH THEIR INCOME
Why They Are Considered the Great
Business Barometer Of
the Nation


service amounting to S3,11S,-
929,3lS. Of this sum, S1,373,
$50, 500 was paid out for labor
or, to put it in another way,
almost SO cents out of every
dollar they took in vas immedi-
afely paid out to the hundreds
OF thousands of men and wo-
men whom they employ in
the conduct of their business.
For maintenance of way, equip
ment, depots. etc, they disbur :
ed 1929, l57 ,49l -or almost an
other thousand million dollars
and in this vast item the
reader can grasp what railroad
prosperity means to the great
steel mills, the lumber and coal
industry, the big car and loco
motive building concerns, and
other sources of railroad sup
plies. In taxes they paid out
the enormous sum of S129,052,-
922, which helped to maintain
the public schools, public high
ways and other revenue ex-
penses of every state, county
and incorporated town and city
in the country. After paying
their operating expenses, the
interest ON their funded debt
ard dividends on their stock,
which averaged only a % per
cent, the railroads had left in
1913 balance of $l93, 705, SAT
with which to make improve
ments and to use a surplus fund
for emergencies of one kind
and another. La other words,
after the railroads got through
paying for their labor, steel,
coal, lumber, interest, divid-
ends and other necessary ex.
penses the above $183,OOO, 900
was all the surplus they had
left for themselves out of an
income of more than three
billion dollars and this, too, up
on properties worth the gigan-
tic sum of twenty billion dol
lars. Furthermore, the lions
share of this surplus was earn
ed by the stronger roads while
such splendid but weaker lines
as the Wabash didn't earn
enough to pay interest on its
receivers certificates. Thus it
can be seen that on the basis of
the present rates the railroads
pay back to the public in one
way and another almost eve1y
dollar they receive for the ser
vices they render to the people.
BURNING CANDLE AT BOTH ENDS
AS matter of fact. if every
railroad in the country had
charged if a pfoper percentage
fer depre citation, instead Of
having had surplus of $751;
100000 left in 1913 they would
have had an actual deficit run.
ming into the millions. Son e
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 snd
maintain the standing of their
securities, use every dollar of
their income to This erd, and
hence one Of the most alarming
phases Of the present railroad
situation is that this process of
burning the candle at both
ends" means deterioration of
rolling stock and roadheds
WHICH will render the continu.
ance of adequate safe service
for the public impossible In a
recent article, James j. Hill.
the great Empire Builder Of
the North" POINTS out that
American railroads should
spend at least s500,00O,O0O an.
Inually in improvements and
betterments and it is there
fore no exaggeration to say
that r rapid y deteriorating
equipment is one of the ghosts
which haunts hundreds Of rail-
road MANAGERS throughout the
country at the present hour.
As was stated in last weeks
article, the operating income of
the railroads for the fiscal year
! d;,~ limo On 1Q1A moo C11Q