Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-12-31
WHAT THE RAILROADS
DO WITH THEIR INCOME
WHY THEY ARE CONSIDERED THE GREAT
BUSINESS BAROMETER OF
THE NATION

That the per cent increase granted
some days ago by the interstate COM
merce commission to certain eastern
railroads has very much strengthened
the plea OF the western lines for an IN
crease in rates is admitted upon every
hand. If the eastern lines where there
Ia a greater density of tonnage nat
uraIly are entitled to such an advance
l-how much more are the western
lines entitled to it?
In contemplating the crisis which
confronts the railroads at The present
time. and which was briefly explained
in last weeks article, Il IS Important
for the reader to realize that the rail-
roads and the public face each other
ur der radically changed conditions to-
day from those which prevailed few
years ago. The abuses and scandals
which have been aired before the in
terstate commerce commission during
recent months were perpetrated Tor
the most part under the cd regime OF
dozen or no years ago, and can
never be repeated under the condi-
lions which now prevail. On the one
hand, the interstate commerce COM
mission and the different states. either
thru their public utility commissions.
legislatures or railway commissions
say what rates the railroads snail
| charge for service. In addition to this,
proposal Is now pending In congress
to give the government the right TO
Investigate all new interstate securi-
ties before they can be placed upon the
market, while similar authority IL al
ready being exercised within the states
/
missions. This means that the last
yestige of control over their finances
/ will have been taken away from the
railroads and that henceforth their
/ fate Will lie absolutely in the hollow OF
the peoples hands. In this connection,
we wish to again remind the reader
! that the hundreds Of honest railroad
officials thruout the country-men who
have managed their properties without
breath OF scandal or public criticism
should not be condemned because OF
, the misdeeds OF the few. With an
aroused public conscience on the one
hand and scores OF railroad officials
(, turnout the country sincerely and ac-
| lively cooperating with the different
public authorities on the other, we can
safely let by-gones be oy-gcnes-wipe
the slate, and, with square deal for
the people, the investor and the rail-
read alike start over again"
Where Railroad Receipts Go.
In order that the reader may realize
what tremendous factor the railroads
are in the every day business life OF
the nation and what they mean to Its
prosperity, we wish to analyze briefly
what becomes Of an average years
railroad income. Just as the idea has
prevailed in the minds Of many that
the railroads are owned by Z few rich
men, so tho thought has also found
deep root that they collect millions OF
dollars from the public which go into
the Golfers Of handful of millionaires.
and which are permanently Withdrawn
from the thrift and industry Of the
people.
At the close OF the fiscal year end
ing June 80, 1913. the records at Wash
ington show that the railroads Of the
United States had collected a gross
Income from all branches OF their SER
vice amounting to $3,11S,s2s,318. OF
this sum, $1,378,S30,5S9 was paid out
for labor-or. to put 1t in another way.
almost 80 cents out Of every dollar
they took in was Immediately paid out
to the hundreds Of thousands OF men
and women whom they employ In the
conduct Of their business. For main
tenance OF way, equipment, depots
etc, they discussed 1928. 167, 491-or al
most another 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 supplies. In taxes
they paid out the enormous sum o:
!: s12so52,s22. which helped to maintain
the public schools, public Highways
and other revenue expenses Of every
state, county and incorporated towr
and city in the country. After paying
their operating expenses, the Interest
on their funded debt and dividends o.
. their stock, which averaged only 4.2s
| iper cent, the railroads had left In 191:
balance OF 31s3. 705, SAT with which Il
| make improvements and to use as Z
surplus fund for emergencies Of ont
, kind and another. In other words
, after the railroads got thru paying To-
. their labor, steel, coal, lumber. interest
> dividends and other necessary ex
, penses the above S1s3.000.0o0 was al
D the surplus they had left for them
, selves out OF an income Of more thar
/. three billion dollars and this, too. upol
: properties worth the gigantic sum 0
; $50 COX, 900 900. Furthermore, the lion
: Isharo of this surplus was earned b,
r =