The Newark journal., 1914-06-05

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 1867 miles of track and with
stocks and bonds of $7s12.69 900. 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
stricter demands of shippers and tray-
elers for modern service, and the re-
quirements of the government in re-
spect 10 safety appliances, ETC., the
railroads are operating under vastly
larger expense, while their revenue
from freight and passenger traffic has
been growing steadily less. According
to Charles A. Conant, author of "Prin-
ciples of Money and Banking" the
purchasing power of the railroads dol
lar has declined 81 per cent between
1896 and 1912. We can now under
stand why our railroads are bent al
most to the point of breaking. They
are facing crisis. Their responsible
/ Af s4aI ~ a..
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 a 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
ohh lbtiA pAAo dAt NV PbAo-
tradesman feels 1t 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 its
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 farmer can ship an axe from
New York to Chicago for 2Lz cents.
If it costs him rs 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 cent pound. If they sell for
/ s 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 pound. II
he pays 80 cents pound for it he pays
one-ninetieth of the selling price to
/ the IdlITOdu. he CAN sup set Oh
harness thousand miles for 43h
cents and If it sells for s35 he pays
the railroad one-eightieth of the sell
/ ing price for freight. He can ship a
harrow a thousand miles for $105. He
can ship motorcycle for S3S3 a thou
sand miles. He can ship a piano
thousand miles for Sc. He can ship
moving machine a thousand miles
for $3S5, pillow for 46A cents, rake
for rs cents, sewing machine for
81 Oh, a pair of shoes for 2 20 cents
and a shotgun for 7ia cents, shovel
for cents, suit of clothes or over
coat for cents, and he can ship raw
wool from Billings, Mont, to New
York City. 1892 miles, for 1.3 cents a
pound.
/ Tie 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-half of
l per cent of what the consumer pays
Another authority has estimated that
the railroads get only one-twentieth
OF the retail price on farm products
for esr average haul Of s.sao miles. CT