Omaha daily bee., 1915-01-24


average state have not regarded their
railroads as an "industry" yet. next
TO agriculture. there is not a single cen
trail or western state In which the rail-
roads do not pay out more money for
labor and supplies than docs any other
single enterprise however large We brag
about our fertile farm lands and rejoice
that our cities arc fined with big fac.
tories with big pay rolls which create
market for farm products-but we forget
that more workingmen's families depend
upon the railroads for a living than upon
any other one industry In either the aver
age state or the nation and that their
welfare is therefore closely linked 10 that
Of the farmer and tho merchant-nst
merely because they furnish himi freight
and passenger service. butte because the
millions they dtsburse In one way and an
other contribute tremendously to the
prosperity Of the state in which we live.
Thus. for example, the railroads are the
largest taxpayers I'm the state OF Ne
braska, their taxes for the calendar year
Of 1918 having amounted to over s., $4,000
and this tidy sum contributed it's fun
share toward the support Of every public
school. public highway and other revenue
expense OF tho state.
In round figures, the railroads Of Ne
braska are valued at approximately S27b,-
OO0'oO-money which, In years gone by,
was Invested I'm those great arteries OF
commerce by thousands Of men and
women who live all over the United States
and In Europe and without whose finan-
cial aid the wonderful progress OF our
great commonwealth would have been
impossible.
During the last year the railroads of
Nebraska employed s0,6s4 men and women
In this state. ana paid to them over $780,
100000 in salaries--and these millions did
their full share to create a profitable mar
ket for Nebraska farm products and TO
uphold the volume of business OF Ne
braska grocers. clothiers. dry goods men
and others who depend upon public
patronage.
In other words, when the people OF Ne
braska look at their railroads in the
light OF an industry--when they look at
the figures on the other side OF the ledger
they will find that not only do the rail-
roads return to them IN one way ana
another practically every dollar they col
leot within the state for freight ana pas
senger service. but that a number of
lines are actually doing this business a
a loss, while with others the margin OF
profit is so small that It doesn't begin "a
pay fair return upon the capital In
vested.
In this connection, we wish to digress
for moment to quote some statistics
winch should have had a place In a FOR
mer article 1t costs an average of 2
mills per mile to haul ton of freight IN
the United States, whereas In England II
costs 2.SS cents. in Germany La cents and
In France la cents. In the United States
tho average wages paid 70 railroad en-
ployes are s2.s3 per day, in England 81 IL
and in Germany and France not over 81
per day. The English railroads are capt.
tai 'zed at S265,000 per mile, IN France at
$4,000 per mile. in Germany at Sil41s5-
while In the United States the stock and
bond capitalization averages only ses. 900
per mile. In view of this remarkable
comparison, do American railroads de-
serve the wholesale denunclhton which
has been heaped upon them2
Losses Under Present Rates.
As evidence OF the justice Of the plea
OF the Nebraska lines that Scent passen-
ger rates should be restored, during the
fiscal year ending June 30, 1913, the Mis-
souri, Pacific lost sl5s,5GO In the total vol
uIne Of its Nebraska business-both state
and interstate included. Tho Missouri
Pacific has 81 miles OF railroad in the
state, and the above deficit means that Il
sustained an actual operating loss of Sies
per mile upon properties valued by the
0UuinnaF NJ tho STATE Dot.
at S32.6Sa60 per mile. During this time Il
paid S.9o7, 2eO64 in salaries to It's Nebraska
employees and over $4,000 In taxes.
During the calendar year ending De-
cember 81. 1913. the st. Joseph g. Grand
Island railway sustained an actual operat-
ing loss of sss,494, or deficit OF EGs per
mile on properties valued by the engineer
Of the state Railway commission at s22,-
$3.50 per mile.
During the same period. the Rock Is
land, which has 2l6 miles OF road within
the state, showed net earnings OF only
1924 per mikes upon properties valued by
the state Railway commission at A364s.9e
per mile, During the year 1914 tho Rock
Island earned only a little more than
$1,000 on all It's Nebraska business, while
in the meantime II paid out moro than
81. 10000 in salaries. taxes, for ties. fuel
and other supplies and material.
The Northwestern. which is one OF the
stronger lines OF the state, has LOSS miles
OF road I'm Nebraska, upon which during
the calendar year ending December 81,
1918. It earned sl.lsO per mile. The physe
cal valuation placed upon the North
western is $50, 1859 per mile. which means
that on this basis It earned only little
better than per cent on It's Investment.
In greater or less degree the same con-
dtions prevail with reference TO several
other lines. Since the above figures we're
oompiled-and they are taken from the
report Of the Nebraska Railway eommis-
sion and therefore should be entitled TO
the highest public confidence as 20 their
oonservatism-a reduction OF % per cent
intrastato freight known as Order No
u, has gone into effect. and this means
therefore. that from this time forward
the showing of the various roads will be
much lower than the figures cited above,
which were based upon railroad incomes
before the 20 per cent freight reduction
went into effect. While both freight and
passenger rates have been inadequate for
number OF years In Nebraska and adj
Joining states-yet in the passenger de-
partment they are nothing short Of con-