Evening journal., 1915-02-02
RAILWAYS Am THE NICKELS.

~ LIB-TONGUED critics of electric railway
VI panics have much to say relative TO the gross
Of such companies They refrain sedulousy,
however from laying stress upon the net income and
showing what a small part of each nickel paid by
passenger reaches the and women who have their
money invested in electric railway properties Many
clamorous demagogues would like to lead the public
TO believe that the bulk of each nickel goes to enrich
the investor whereas the reverse is true. Analytical
figures compiled by Charles c. Peirce, acting presi
dent of the American Electric Railway Manufacturers
Association show that the stockholders receive less
than ne-third of a out Of each nickel paid and
that less than three-quartors cent Of such nickel
paid IN the shape of interest to those owning the
derlying securities OF such companies
Mr. Pcirce calls attention the fact that more than
sl75 100000 year is spent in new construction and
equipment, while more than $55,0OO00O year is OK
pended material entering into the maintenance of
electric railways These figures seem large, he adj
ms but the of material is the second largest item
in the list expenses Of electric railways The nickel
of the passenger has been divided into its component
parts, according TO the to which it is put and
shows that COS cents goes into wages Of employees
965 cent for supplies "a for interest SO cent
for rent 23 cent for taxes .2l cent for claims for
damages l6 for funds, las cent for sal
aries and 81 cent to the stakeholder.
"Aiy association represents manufacturing concerns
capitalized at considerably $500OOO0O0, and
large share of the business which enables them to
maintain the thousands of employees dependent upon
them for livelihood comes from electric railways"
Mr. Porce added. I'VE are therefore vitality inter-
ested in the things which affect this industry.
"The ten years which ended in 1905 were the ban
ner years for electric railway extensions. The cleo
trio railways had become recognized powerful fac
tor in the development of territory and in increasing
the welfare of communities. Their power for good
was recognized by the people and their promoters
were given every encouragement Since that time,
however, the situation has changed materially, and
more and more restrictions have been thrown around
electric railway developments with the consequence
that there has been slackoning and, i'm some COM
munes almost total cessation OF electric railway
extension
I've i'm the electric railway business believe thai
this comes very much from a misapprohension on the
part OF the public of the particular situations that cN-
lst I'm our business. We convinced that If the
public know as we know, that profits arc not oxorbi
taut and u fact scarcely common uratc with the risk
taken there would bc fewer restrictions thrown about
the enterprises OF these men whose operations aa}'
done as much as any one thing m building mp Amer
lean cities"
! 10 cannot fail be refreshing TO the public TO reac
such figures the above as they convey in concrete
FORM much information that win OFFSET msinforma
ton sent broadcast by agators who deal in generals
ties which will not stand zip beneath the acid test o
mathematical analysis.