Iron County register., 1914-10-08
What Railroads Do
With Their Income.
THE LARGEST EMPLOYERS OF LABOR,
BUYERS OF STEEL, COAL, TAX
PAYERS In THE COUNTRY.


In the beginning of the present arti-
Gle on the railroad situation it is per-
tinent to remind the reader that the
transportation companies and the pub
lie face each other under radically
changed conditions to-day from those
which prevailed few years ago. On
the one hand, the Interstate Com
merce Commission and the different
states, either,through their Public Ser
vice Commissions or Legislatures, say
what rates the railroads shall charge
for service. On the other hand, the
proposal made in the present Congress
that the Inter State Commerce Com
mission be empowered to pass upon all
new railroad securities before they can
be placed upon the market and like
powers having already been conferred
within the states upon the different
Public Service Commissions, means
that the last vestige of control over
their finances will have been taken
away from the railroads, and that
henceforth their fate lies absolutely in
the hollow of the peoples hands.
Furthermore, it must be said for the
stockholders and the managers of the
roads that they have no protest to Of
| fer against this stringent government
al regulation. The only plea they make
is that the value of their securities be
not destroyed and that they be permit
ted to receive living rates SO they may
continue to render efficient and ade-
quate service to the people. The pro-
posal to submit, all new securities to
official investigation before they are
placed upon the market, if fairly inter-
preted andIexercised, will have the ap-
proval of nine out of ten railroad Of
ficials throughout the country. In
view of these changed conditions,
therefore, and the fact that the peo-
pie have taken over the entire con-
troll and regulation of the railroads,
why should they not be as fair to them
as they are to all other great national
industries? That they will be, once
they come to understand the true sit
uation, is the confident belief Of those
entrusted with the responsibility of
railroad management and those who
! have put their money into these huge
properties. The Eattempt upon the
part of certain political opportunists
to create the impression in the public
mind that the railroads representation
great sinister influence in the nation
is utterly absurd. With, several mil
| lion investors, large aAd small, own
| ing the transportation companies,
with nearly two million employees
working for them and with scores of
millions travelling and shipping freight
over them, the railroads constitute
the most democratic as we'll as gigan-
tic institution in the country to-day
an industry owned by the people,
operated by the people, and controlled
and regulated by the people, and in
tenselyss essential to the comfort, ,..con-
venience and prosperity of our en-
tire population.
In last weeks article the grave crisis
which confronts theirailroads because
of the European War which has in
definitely closed the foreign money
markets to them was briefly explained.
The fact was also cited that American
railroads are not owned by few rich
men as many have thoughtlessly come
| to beliey e-that on the contrary, 90
per cent. of their ownership is in the
hands Of hundreds of thousands ol
stockholders, large and small; further
more, that all the old line life insur-
ance companies, hundreds of savings
and other banks, benevolent institu-
tions, etc., have many millions of theil
assets invested in railroad bonds, anC
that therefore millions of holders oi
life insurance policiesIan bank depos.
itors are vitality concerned in preserv-
ling the full value OF these securities,
which have always been regarded as
| the greatest and soundest basic in
Ivestment in the Nation.
| Where Railroad Receipts Go
| We now wish to briefly anaiyze what
the railroads do with the money which
they collect for carrying freight anc
passengers in order that the reader
may realize what tremendous factor
they are in the every day business life
and prosperity of the country. just al
the idea has prevailed in the minds ot
many that the railroads are owned by
, a handful of rich men, so the thought
/ has also found deepFroot that they
collect millions of dollars from the
public which goes into the Golfers O
, the few and which is permanently re-
moved from the thrift and industry oi
, the people.
i At the end of the fiscal year ending
/ June 80, 1918, the records at Washing
ton show that the railroads of tn,
! United States had collected a gross in
: come from all branches OF their servic,
> amounting to $3,118, ,929, ,318. OF thi
) sum $1,373, ,S30,5S9 was paid out TO
) labor or, to put it inanother way al
most 30 cents out Of every dollar the,
. Itook in was Immediately paid out ii
I the hundreds of thousands of men an,
! women whomthey employ In the con
, duct of their business For mainten
! ance of way, equipment, depots, etc.
! they disbnrsed $929,167 ,491-or al
most another billion dollars, ,and in thi
! vast item the reader can grasp wha
. railroad prosperity means TO the grea
4 steel mills i, the lumber and coal in
! dustry, the big car and locomotiv,
building concerns andother sources 0
railroad supplies. In taxes they pal,
out the enormous sumof $129 ,052, ,92S
which helped to maintain the publi
schools, public highways andl othe
g rauanIIa axnanaaa ~ a@arv state onun