Part 35

Still, the average distance passengers ride is important; for, if the number of passengers remains the same and their ride is shorter, the receipts are diminished. The returns show that while the number of passengers has increased since 1882 about fifty-six per cent., the total miles travelled have not increased quite fifty per cent., marking a falling off in the average number of miles each passenger rode. The reduction is graphically shown in the little chart given herewith. This result is no doubt largely due to the great increase of suburban travel which has developed about our large cities within the past few years.

It is necessary to state, however, that the figures embraced in this study do not include the traffic of the elevated roads of New York and Brooklyn.

_Passenger Profits._--Again a marked difference between freight and passenger traffic appears in comparing the chart given below with the corresponding chart on page 440.

The study covers the history of the same roads in each case. The history of freight profits shows a persistent falling off, which in the nineteen years amounts to four mills per ton per mile, a loss of two-thirds of the six mills of 1870. The history delineated on this chart shows the average profit of the two roads to be almost exactly at the same point that it was in 1870, while the profits for most of the intervening years have been much greater.

Were this the record of the freight traffic, it would be much more gratifying to the managers of the roads, for the New York Central & Hudson River Railway receives about twice as much, and the Pennsylvania Railway receives four times as much, from freights as from passengers. Attention is invited to the opposite results of the same policy on these two roads in 1876. The chart of passenger rates on page 441 marks a decided reduction of rates by the Pennsylvania Road, and a slight reduction by the New York Central & Hudson River Road. The chart of profits records an increase for the former and a decrease for the latter. This year (1876) is the date of the Centennial World's Fair at Philadelphia. The Pennsylvania Road had an enormous increase of passenger traffic (double that of the following year), a record which it did not equal until 1887. The New York Central & Hudson River Road had but a slightly increased traffic, the record of which it passed in 1881.

GENERAL CONSIDERATIONS.

_Dividends._--While many readers are probably not holders of railway stocks, yet a look at the dividends received by those who are will not be without interest. The little chart given below tells an interesting, although a not over-attractive story.

It shows that, comparing the aggregate of all the railroad stocks of the country with the aggregate of all dividends paid, the holders of stock realized an average of 3.03% on their investment in 1876. In 1878 it had fallen to less than 2½%. From that date to 1885 the record makes a curve ending just above 2%. A slight rally is indicated for 1886 and 1887, but 1888 carries it down to 1.81%. The stock of many roads has paid no dividend whatever these later years, and the lines whose stock proves a good investment at par are very few.

_Net Earnings per Mile._--Although the studies of the financial question already made undoubtedly point out the true drift of railway business, yet one more comparison is worth making, both for its bearing on the question of profits and the study of the influence of profits on railway building. The upper one of the two charts given herewith is the record of net earnings per mile of road in operation, and is based on the reported net earnings less the interest-charge. It therefore shows the average number of dollars each mile had earned, after paying all expenses and the interest on its debt. This money, then, is the clear amount each mile could apply each year to pay the principal of its debt and the dividends on its capital stock, or to use for improvements, such as rolling stock, stations, better road-bed, new rails, or any other betterments which might seem advisable.

In 1876 this sum was $1,264; in 1880 it was $1,798, since which time it has suffered a serious decline, until in 1888 it was only $650. It is the story of the previous studies repeated, and needs no further reiteration.

_Railway Building._--The larger chart given on page 429, gives the history of railway building from 1831 to 1888. The lower chart of the two given together on page 444, repeats the annual record from 1876, for the purpose of studying the influence of profits on the progress of building. The net earnings per mile show a reduction in 1877. The following year shows an increase of earnings, and the building responded somewhat feebly the same year. The next two years (1879 and 1880) show great gains in net earnings, and the impetus given thereby to building, carries its increase steadily forward even two years beyond the turning-point of the earnings. The decline is then mutual to 1885. In 1886 the advance in earnings was responded to by such a remarkable increase in building that the stimulus is to be sought for partly outside of the increase of earnings, and is undoubtedly found in the desire to occupy the newly opening fields of western settlement; for the records mark unparalleled activity among the great trunk lines of the West in pushing their advances in Dakota, Kansas, Nebraska, and Colorado, in 1886 and 1887. This is graphically shown in the map of 1889, when compared with that of 1880 (pages 432 and 433).

_Ratios of Increase._--It is difficult to obtain a just impression of values when expressed by figures alone. It is easy when these values are expressed in lines or colors. The greater difficulties come in the effort to compare values expressed in differing terms. To read that the increase of population was 23,400,000 from 1870 to 1888; and that of railway mileage was 62,785 miles; and that of freight traffic was nearly 30,000,000,000 tons, in the same period, and then to attempt the comparison of increase without further aid, is a hopeless task.

As a study of financial economy the comparison is worth making, for evidence of the over-development of an industry or a financial interest, rightly considered, may prevent suicidal development. The chart given on the next page makes the comparison easy. The actual increase in each instance is reduced to percentages, and the several chart-lines measure the progress. The increase of population is estimated on the basis of 62,000,000 persons in 1888. (So far as the lesson conveyed by the chart is concerned, the estimate might as well have been 60,000,000, the variation in the location of the line would be trifling.)

It appears, then, that railway mileage has increased nearly two hundred per cent. and that the rate of increase of freight traffic (as measured by ton-miles[38]) has been enormously larger, considering the history of the thirteen trunk lines as indicative of the whole. It further appears that the freight traffic of the West has developed much more rapidly than that of the East, during the last eight years.

_Construction and Maintenance._--The tabulated statistics of these subjects are not of special interest, as the annual variation of cost is slight. In both these elements the wage-question is so large a factor that a comparative level is maintained from year to year. The available figures touching these subjects are few. The first table on the opposite page gives the average cost of construction per mile of the _total mileage of the country_; and the cost of maintenance per mile as reported by the New York, Lake Erie & Western Road. The second table furnishes interesting _details_ of the cost of maintenance.

_Construction and Maintenance for Ten Years._

+----------------------+-------------------- Years.| Cost of construction | Cost of maintenance | per mile. | per mile. ------+----------------------+-------------------- 1879 | $57,730 | $1,671 1880 | 58,624 | 1,371 1881 | 60,645 | 1,448 1882 | 61,303 | 1,335 1883 | 61,800 | 1,533 1884 | 61,400 | 1,281 1885 | 61,400 | 1,082 1886 | 61,098 | 1,496 1887 | 58,603 | 1,533 1888 | 60,732 | 1,226 ------+----------------------+--------------------

_Comparative Statement of Maintenance of Way of the Illinois Central Road for Ten Years._

[Table--Part 1 of 2] -----+--------+----------------------------------------------------+ | Miles | MAINTENANCE OF WAY. | Year.|of road +----------+---------------------+-------------------+ | at end | Labor on | New rails. | Cross-ties. | |of year.| track. | | | -----+--------+----------+---------------------+-------------------+ | | $ | Tons. $ |Number. $ | 1879 |1,286.72|297,363.40| 9,276.00 125,062.70|264,520 93,107.51| 1880 |1,320.35|343,982.23| 9,767.49 215,365.32|260,116 93,330.32| 1881 |1,320.35|411,018.91|10,098.47 169,718.80|345,260 127,279.76| 1882 |1,908.65|690,112.59| 8,438.00 128,521.48|604,096 201,648.26| 1883 |1,927.99|742,476.20| 8,191.79 183,239.65|425,627 153,739.00| 1884 |2,066.35|706,751.86| 6,342.73 93,446.25|462,665 154,083.19| 1885 |2,066.35|749,254.19| 8,747.31 87,331.95|508,756 176,835.69| 1886 |2,149.07|705.553.82| 6,376.40 63,238.84|492,524 174,515.72| 1887 |2,355.12|760,093.33| 6,092.66 79,917.84|573,898 197.989.47| 1888 |2,552.55|847,806.67| 8,172.36 106,372.94|654,141 214,130.73| -----+--------+----------+---------------------+-------------------+

[Table--Part 2 of 2] -----+----------------------------------+--------+----------+------------ | MAINTENANCE OF WAY. |Expense | |Repairs of Year.+----------+-----------------------+per mile|Repair of |station | Repair of| Other | Total. |run by | fences. |building and | bridges. | items. | |engines.| |water-works. -----+----------+----------+------------+--------+----------+------------ | $ | $ | $ | Cents. | $ | $ 1879 | 73,119.56|125,041.92| 640,575.53| 11.73 |$33,416.86| 45,755.09 1880 |105,551.62| 49,399.09| 807,628.58| 12.39 | 36,981.94| 80,887.34 1881 |114,193.18| 30,399.46| 852,610.11| 12.16 | 36,690.33| 70,699.58 1882 |174,826.24| 17,277.34|1,212,385.91| 11.87 | 31,032.57| 87,588.26 1883 |121,101.03| 72,294.71|1,272,850.59| 11.89 | 30,084.49| 87,291.93 1884 |173,831.23|107,236.13|1,235,348.66| 12.20 | 21,394.71| 94,122.03 1885 |164,586.39| 88,126.28|1,266,134.50| 11.27 | 21,932.48| 94,518.19 1886 |172,144.65| 63,976.69|1,179,429.72| 10.15 | 26,668.91| 123,519.83 1887 |250,337.47| 61,441.88|1,349.779.99| 9.95 | 31,905.46| 129,526.76 1888 |310,908.42|115,898.04|1,595,116.80| 10.74 | 40,423.39| 170,023.85 -----+----------+----------+------------+--------+----------+------------

_Employees._--This item is also one touching which railways make few reports. The New York Central & Hudson River Road reports as follows: "Average number of employees, 20,659, being at the rate of 14.54 per mile of road worked; aggregate wages, $12,460,708.89, or $603.16 each. Payments in wages equalled 50.60 per cent. of the total working expenses, against 51.90 per cent. in 1886-87." Reckoning that each employee's wages supports an average of three persons, we have a total of 61,977 persons clothed, housed, and fed by this one corporation.

"Poor's Manual" discusses this subject at some length, but mainly on theoretical ground.

_Rolling Stock._--A table showing the history of the growth of the rolling stock of the country is given on page 148; it is therefore unnecessary to repeat it here.

_Capital Invested._--It is folly for the human mind to attempt to grasp the immensity of the financial interest expressed in the statement, that the combined capital invested in the railways of the United States is $9,369,398,954. No more can it comprehend that this vast aggregate has been the growth of about fifty years in a single interest, in a single country.

_Capital Invested._

+---------------- Year. | Capital. ------+---------------- 1876 | $4,468,592,000 1877 | 5,106,202,000 1878 | 4,772,297,000 1879 | 4,872,017,000 1880 | 5,402,038,000 1881 | 6,278,565,000 1882 | 7,016,750,000 1883 | 7,477,866,000 1884 | 7,676,399,000 1885 | 7,842,533,000 1886 | 8,163,149,000 1887 | 8,673,187,000 1888 | 9,369,399,000 ------+----------------

The first date in the table marks the close of the first century of our national life. Since that time the investment has more than doubled; an increase of nearly five billion dollars in twelve years--an average of over four hundred million dollars per year. More exactly expressed, this means $1,118,906 per day, or $46,621 for every hour, day and night, during the first twelve years of our second century.

It is safe to say that no other financial interest shows a total of such wonderful magnitude. And with greater emphasis may it be said, that the finances of the world, record, in all the ages, to the present day, no such astounding increase of investment.

FOOTNOTES:

[37] Data drawn from "Poor's Manual of Railroads," 1889, and the "Statistical Abstract of the United States," 1888, and carefully revised, form, in large part, the basis of the several studies; and the writer hereby expresses obligation to Mr. John P. Meany, editor of the "Manual," for kindly aid in his work.

[38] A ton-mile means a ton of freight hauled one mile; ten ton-miles, a ton of freight hauled ten miles, or two tons hauled five miles.

INDEX.

Accidents, chances of, 191 at crossings, 408 from coupling cars, 223, 392 investigation of, 399 to railway bridges, 26 South Norwalk, 221 statistics of, 260 to trainmen, 393 to trains, origin of, 167

Adams, Charles Francis, 104, 367

Air-brake, 193, 195

Allen, Horatio, 2, 4, 102

Arbitration between railways and their employees, 376, 381

Armstrong, Colonel G. G., 316

Atkinson, Edward, 43

Auditor's duties, 180, 183

Baggage-check system, 253

Baggage-master, work of, 416

Baggage service, abuses in, 179

Baggage transportation, 253

Baldwin Locomotive Works, 132

Ballast of a railway, 37

Baltimore & Ohio, the, 103 cars, 139 early passenger-trains, 230 in 1830, 101

Bangs, George S., 317

Bell-cord train-signal, 237

Bessemer, Sir Henry, 37

Bessemer steel, invention of, 37

Blaine, James G., 323

Blair, Montgomery, 317

Block-signal, automatic, 215 system, 168, 213

Boilers, construction of, 114

Bonds and stock, relative position of, 354

Brake, air-, 193, 195 advantages of air-, 387 improvements suggested to air-, 199 American, 202 and coupler, 237 Beals, 202 chain, 193 continuous, 195 early forms of, 192 electric, 194 hand, 193; perils of, 387; how to manage, 388 hydraulic, 193 steam driver-, 192 trials at Burlington, 200 vacuum, 193, 195 water, 202 Westinghouse air-, 193, 195

Brakemen, characteristics of, 384 duties of, 394 life, agreeable and disagreeable features of, 386, 389 passenger-train, advantages of, 396 pleasures of, 394 wit of, the result of meditation, 385

Bridges, railway, accidents to, 26 American iron, 28 American, development of, 27; length of, 24, 26 American wooden, 27 and culverts, how built, 22 Bismarck, 86 Britannia, 79 builders, 423 cantilever, 33, 88 connecting two tunnels, 55 connections, types of, 85 foundations by crib or open caisson, 75

Bridges, foundations by pneumatic caisson, 69 foundations, how made, 32, 67 foundations under water, 67 gangs, work of, 155 great, over cañons and valleys, 55 guard-rails and frogs for, 221 Hawkesbury River, 32 Howe truss, 27 how to build safe, 31 Kentucky River, 34, 55, 88 Kinzua, 30 Lachine, 92 masonry arch, 76 Niagara cantilever, 34, 90 Portage, 78 Poughkeepsie, 32, 34 steel truss, development of, 85 strength of, 29 St. Louis, 93 trusses, types of, 86 tubular, 80 typical American truss, 86 Verrugas, 55 Victoria, 80 Washington, over Harlem River, 77, 94 wooden, 78 wood, stone, and iron, 25, 26

Bridgers, R. R., 340

Bridgewater, Duke of, 345

Broken trains, dangers of, 388

Burr & Wernwag, 27

Caissons for bridge foundations, how made, 32, 69 open, 75 pneumatic, 69

Camden & Amboy locomotives, 106

Cameron, Simon, prediction of, 232

Campbell, Henry R., 109

Cantilever bridges, 33, 88

Capital invested in railways, 344, 448

Car-accountant, and the transportation department, 275 office of, 271

Car-accounting, benefits of a good system, 280

Car-builders' dictionary, 147

Car-couplers, imperfections of, 140 need of uniformity in, 141

Car-coupling, accidents from, 223, 392

Cars, American and English, 7 American, evolution of, 139 Baltimore & Ohio freight-, 139 different kinds of, 146 old, discomforts of, 234 distribution of, 171, 279 empty, distribution of, 279 first American passenger-, 139 first sleeping-, 140 for special uses, 289 freight-, wanderings of a, 267 heating by gas, 226 heating by steam, 226 heating, methods of, 245 lighting safely, 226 mileage and records, 158 mileage charges, 273 Mohawk & Hudson passenger-, 139 number of, in the United States, 148 records of movement, 171 service charges, per diem plan, 29 service of, payment for, 293 service records and reports, 276 tracers for, 279 trucks, 7; invention of, 108 use and abuse of, 281

Car-wheels, European, 144 how made, 142 paper, 145

Cassatt, A. J., 340

Check system for baggage, 253

Chief engineer, duties of, 154

Chimbote Railway in the Andes, 50, 53

Civil service reform in the mail service, 340

Classifications of freight, 176

Clerks, railway, 422

Coffer-dam foundations for bridges, 67

Commissions to passenger agents, 179

Competing points and pools, 364

Concentration of power, 351

Conducting transportation, 159

Conductors, freight, trials of, 398 heroism of, 411 passenger, 408

Consolidation, effects of, 351 tendency to, 346

Construction companies, 355

Contractors, railway, work of, 21

Conveniences at stations, 259

Cooley, Judge Thomas M., 368

Cooper, Peter, 104, 231

Council, proposed railway, 380

Couplers and brakes, 237 imperfections of, 140 uniform automatic, 223

Coupling cars, accidents from, 223, 392

Coupon tickets, 254 misunderstood, 254

Cox, S. S., 323

Cranes, large travelling, in locomotive shops, 132

Crib foundations for bridge piers, 75

Crises of 1873 and 1885, effects of, 356

Crossings, accidents at, 408 protection for, 216

Cullom, Senator S. M., 368

Culverts, building of, 22 log, 25 masonry, 76 on American railways, 24, 26

Curves, American and European railway, 8 least, 8

Cutting, largest ever made, 56

Cylinders, locomotive, construction of, 117

Darwin, Erasmus, 2

Davis & Gartner, 106

Davis, Phineas, 106

Davis, W. A., 317

Death and accident provisions for postal clerks, 343

Delays in a long journey, 267

Delaware & Hudson Canal Company, 101

Demurrage charges, 296

Derailing switches, use of, 207

Derailments of trains, causes of, 218

Destructive force of a locomotive at high speed, 187

Detector-bar for switches, 205

Differentials, 175

Dining-cars, introduction of, 243

Discipline necessary on a railway, 377

Distribution of cars, 171, 279

Dividends, average, on railway stock, 443

Drawbridge accidents, 221

Driving-wheels, large and small, 128

Eads, Captain James B., 64, 93

Eames vacuum brake, 195

Eccentric, operation of, 118

Educational institutions for railway employees, 379

Electric annunciator for signals, 209

Electric lights for cars, 226

Electricity applied to brakes, 194

Elevated Railroad, New York, 97

Employees, railway, benefit funds, 378 permanent and temporary, 375 promotion of, 376 number of, in the United States, 43, 370 permanency of service during good behavior, 376 relations of, to the railway, 357 representative system for, 380 rights and privileges of permanent, 376 to have a voice in management, 379 wages of, 448

Engineer, the, as a public benefactor, 46 civil, qualifications of, 15 responsibilities and duties of, 98

Engineering, good, true test of, 60

Ericsson, John, 2

Facing and trailing point switches, 219

Facing-point locks, 205

Fast freight lines, 287

Fast mail service, appropriations for, 337

Fast mail train, trip with, 323

Fast runs, remarkable instances, 404

Fast time on railways, conditions of, 128

Field & Hayes, 34

Fink, Albert, 365

Fisk, James, Jr., 353

Flagging trains, 390

Foot-guard for frogs, 222

Foreign cars, theory and practice in their use, 279

Foster, Rastrick & Company, 102

Free-pass system, 362

Freight-car wanderings, 267 classifications and rates, 176 conductor and his trials, 398 department, organization of, 282 engines, saving fuel on, 402 empty trains of, 439 handlers at stations, 423 movement, accidents in, 293; cost of delays in, 293

Freight profits, 440 rates, reduction of, 358, 438 traffic, 437; how handled, 180

Freight trains, air-brakes for, 200 transportation, needs of the service, 297

Fuel, saving, on freight-engines, 402

Garrett, John W., 351

Gate-tenders on the railway, 423

General Freight Agent, 172

General Manager, duties of, 154

General Passenger Agent, 172

Geographical location of railways in the United States, 427

Goold, James, 139

Grades, limit of, 8

Grand Central Station interlocking signals, 208

Grand River cañon, 54

Granger movement, 363

Guard-rails and frogs for bridges, 221

Hamlin, Hannibal, 323

Hampson, John, 231

Harrison, Joseph, Jr., 4

Hawkesbury River bridge, 32

Heater-cars, Eastman, 289

Heating cars, 245

Highway crossing accidents, 216 crossing gates, 217

Holley, Alexander L., 37

Hoosac Tunnel, 63

Hospital funds for railway employees, 378

Hotel-cars, 244

Howe truss bridges, 27

Immigrant sleeping-cars, 251

Inclined planes for overcoming elevations, 58

Injectors, principle of, 116

Insurance funds for railway employees, 378

Interchange of cars, methods of, 272

Interlocking bolts, uses of, 221 signals and switches, 204

Interstate commerce law, 173, 368 Commerce Commission and its work, 368

Investigation of accidents, 399

Investors and managers, relations of, 357 difficult position of, 354

Irregular hours of work, 399

Jameson, John, 317, 323, 342

Janney car-coupler, 237

Jervis, John B., 4, 107

Johnson, R. P., 339

Judgment, value of, in a locomotive-runner, 407

Junction-cards and car-reports, 278

Kentucky River cantilever bridge, 34, 55, 88

King, Porter, 408

Kinzua Bridge, 30

Lachine Bridge, 92

Latimer, Charles, 221

Latrobe, Benjamin H., 8

Layng, J. D., 319

Legal department of a railway, duties of, 152

Lighting cars, safe methods, 226

Lincoln, Abraham, in the first sleeping-car, 240

Link motion for locomotive valves, 119

Location, approximate, 15 final, 18 how governed, 16 in old and new countries, 17 importance of, 15