Part 5

"The Portage Railroad consists of eleven levels, or graded lines, and ten inclined planes. The ascent from Johnstown to the summit is 1,171.58 feet, in a distance of 26.59 miles, and the descent, from the summit to Hollidaysburg, is 1,398.71 feet in a distance of 10-1/10 miles. There are five inclined planes on each side of the mountain, varying, in inclination, from 4° 9´ to 5° 51´, or from 7.25 feet to 10.25 feet elevation to each 100 feet base. They are numbered eastwardly, the one nearest Johnstown being No. 1; that nearest Hollidaysburg, No. 10. The following table shows the length, rise and fall of each 'Level' or grade line, and each inclined plane."

============+=============================+=============+============ | | | Feet Level No. 1 |From Johnstown to Plane No. 1| 4.13 miles|Rise, 101.46 Plane 1 |Ascending |1607.74 feet | 150.00 Level 2 |Long Level | 13.06 miles| 189.58 Plane 2 |Ascending |1760.43 feet | 132.40 Level 3 |Ascending | 1.49 miles| 14.50 Plane 3 |Ascending |1480.25 feet | 130.50 Level 4 |Ascending | 1.90 miles| 18.80 Plane 4 |Ascending |2695.94 feet | 187.86 Level 5 |Ascending | 2.56 miles| 25.80 Plane 5 |Ascending |2628.60 feet | 201.64 Level 6 |Summit of Mountain | 1.62 miles| 19.04 | | | -------- | |Total rise | 1171.58 ------------+-----------------------------+-------------+------------ | | | Feet Plane No. 6 |Descending |2713.85 feet |Fall 266.50 Level 7 |Descending | 15 miles| 0.00 Plane 7 |Descending |2655.01 feet | 260.50 Level 8 |Descending | .66 miles| 5.80 Plane 8 |Descending |3116.92 feet | 307.60 Level 9 |Descending | 1.25 miles| 12.00 Plane 9 |Descending |2720.80 feet | 189.50 Level 10 |Descending | 1.76 miles| 29.58 Plane 10 |Descending |2295.61 feet| 180.52 Level 11 |To Hollidaysburg | 3.72 miles| 146.71 | | | -------- | |Total fall | 1398.71 ------------+-----------------------------+-------------+-----------

In conformity with resolutions of the Board, eighteen miles of the grading on the eastern and fifteen on the western ends of the Road were placed under contract in July last. In November the contracts upon the eastern division were extended to Lewistown, and on the 17th ult., to Huntingdon, together with a few miles of heavy work along the Little Juniata, embracing altogether 106 miles.

Very little of the grading, on the western division, has been executed, as there appeared to be no sufficient reason for pressing that portion of the Road until the means of the Company would justify a larger expenditure upon it than they have heretofore.

The work upon the eastern division has been retarded from the scarcity of labor. Time seems to be required to collect the necessary force upon the line. With the exception, however, of the Susquehanna bridge, the grading will be prepared for the superstructure, to Lewistown, this year. The masonry of that important job was first allotted to contractors. The principal of the firm, though highly recommended by the officers of the Reading Railroad, proved unequal to the task he had undertaken, and their contract was abandoned. In consequence, the remnant of last season, after the contract was let, was mostly lost.

The work has been re-let to Holman, Simons and Burke, who have carried it forward satisfactorily. The prevalence of high water, since the season for laying masonry commenced, has prevented as much progress, at this time, as could have been desired; but we still entertain hopes that it will be completed before the ensuing winter. If this is accomplished, the Road can be opened to Lewistown next spring. Under any ordinary circumstances it will be finished to Huntingdon (98½ miles) by the close of navigation in 1849--a point as low down as we may anticipate a profitable use of the Road from.

Our arrangements have been made with a view to the completion of the Road to the Allegheny Portage, early in the spring of 1850. An earlier period could not be fixed, owing to the magnitude of some of the work on the Little Juniata; a portion of which, embracing the tunnel, through a point of Tussey's mountain, was located and contracted for last December, to avoid delay and a premature expenditure of capital on the lighter work, which would have followed a general letting of the whole Road at that time, or since, even if it could have been prepared for contract in season.

If sufficient means shall be obtained to prosecute the western division, I would recommend that the heavy portions of the work, between the Conemaugh and the confluence of Brush and Turtle creeks, should be placed under contract, together with the grading, continuously from the Portage road to the point of divergence of the line from that river towards Pittsburg, if the Conemaugh route is adopted.

When the connection is made with the Portage Railroad, from the east, there will then be a continuous railroad from Philadelphia to Johnstown, 282 miles in length, and, if opened at the same time to near Blairsville, it will be extended to 310 miles, with only 43 miles of turnpike thence to Pittsburg, or 75 miles of canal navigation, giving a line of communication, with the Ohio river, far superior to any railroad route existing, or any that will at that time be built. On freight destined to the interior of Ohio but one transshipment will then be necessary. The canal boats, loaded at the terminus of the Road, can be conveyed to any point upon the Ohio canal.

If your Road possesses no other source of revenue than the local travel and transportation of the rich and populous region to be traversed by it--secured, as it will be, from competing lines by _natural barriers_ stretching out on either side from the Susquehanna to the Potomac--they would be sufficient to justify its construction. The influence of the Pennsylvania canal has called into activity all the elements necessary to render the enterprise profitable, and, in consequence, it will be more successful with that improvement, as a pioneer rival, than if it was now to enter upon an unoccupied field. Whatever may be the effect of your work upon the business of the canal--and I do not believe it will be injurious--there can be no doubt but that it will add very materially to the revenues of the Commonwealth.

Important as the local sources of revenue are to the Company, they will afford but a limited amount of business compared with that to be derived from the great West. The route of your improvement is directly on the line that would be most desirable for a railroad to pass from St. Louis, or the confluence of the Mississippi and Missouri rivers, through the center of the wealth and enterprise of the Mississippi valley to the Atlantic. With a map of the Union before you, it will be found to be impossible to draw a line upon it that would accommodate so large an amount of population, or an equal extent of fertile country.

Through the broad bed of mountains that divide the Atlantic from the Western States--traversed by our route for 190 miles--natural gorges are found, cutting all of them to their bases, except the Allegheny, which is passed with comparatively easy gradients, and without encountering difficulties of a very unusual character. These favorable features of the country give to us a line which is the shortest and best that can be obtained between these sections of the Union, and insures to the Company the whole of the travel and light transportation, with much of the heavy trade, destined to Philadelphia and points north of this city, of the vast region between a line along the southern shores of Lake Erie, touching Lake Michigan, and extending to the far West, and the immediate valley of the Ohio river. The distance from Cleveland to New York being 80 miles shorter by this route than by the New York and Erie Railroad, much of the travel embarked upon the lakes for that city from the north and west must also be diverted to this line.

In view of these circumstances, can a reasonable doubt be entertained by any one as to the profitableness of the stock of the Pennsylvania Railroad Company? Its natural position must give to it more than sufficient business to make it yield large profits. Indeed, I confidently advance the opinion that when the Road shall have been completed that it will not be a question "whether it will pay an interest on its cost," _but to what point the rates of freight and passage shall be reduced to give the Company ample revenues and at the same time make the work most extensively useful to the public_.

Dividends from its revenue can be made of 6, 8 or 10 per cent. by changing the rates of freight and passage, at the discretion of the Directors.

From some experience in the management of the business of other roads, much less favorably situated than this, I feel no hesitation in making this prediction. I look upon the result as one upon which there can be no doubt entertained.

The inquiry may be made, "If this Road must prove a profitable investment, why other works in Pennsylvania, favorably located, have not yielded remunerating dividends to their proprietors?" In reply it can be stated that there is no important work, leading from Philadelphia, that ought not now to divide large profits, if their stock and funded debts exhibited a fair cash value of the property represented. Most, if not all, of these works, were commenced with inadequate capital, for the object in view, and from the anxiety of the stockholders to realize the large profits promised on their completion, and the _public_ to _enjoy the use_ of the improvement, they have been pressed forward faster than true economy, or the funds of the company, would justify. Engagements were made, relying upon fortune, or accident, to provide the means to meet them. These resources failing, they were thrown upon the mercy of either the contractors or the money lender. And, in consequence, the cost of the works has been rolled up to an amount not anticipated, and, in many cases, debts incurred, under the pressure of the moment, in the most objectionable shape, to meet which the whole of the receipts of the companies have necessarily been mortgaged.

In New England, and also in New York--where railroads have, in many cases, been deprived of the privilege of carrying freight--judiciously located roads have invariably paid well. Their success has not been caused by the exercise of any peculiar skill or economy in their management, as generally supposed, for, in this respect, though they stand deservedly high, there is none that conduct their business, under all circumstances, with as much economy as the Baltimore and Ohio Railroad, or some other southern companies.

In closing this communication it gives me much pleasure to acknowledge the zealous and cordial co-operation that I have received from my Associate and Assistant Engineers in carrying on the important work that you have committed to our charge.

Respectfully submitted, by Your obedient servant, J. EDGAR THOMSON, _Chief Engineer_.

Note.--By way of "Then and Now" contrast, the income account of the Pennsylvania Railroad Company for the year ending June 30, 1909, from Interstate Commerce Commission Bulletin No. 5 is subjoined.

Revenues and Expenses of the Pennsylvania Railroad Company for the year ending June 30, 1909.

Miles operated 4,087

Operating revenues $138,449,119 From Freight $100,356,160 Passengers 28,774,281 Other transportation 8,438,972 Non-transportation 879,706

Operating expenses 97,107,751 For Maintenance of Way and structures $16,503,246 Maintenance of equipment 27,225,887 Traffic 1,844,365 Transportation 48,064,176 General 3,470,077

Net operating revenue 41,341,368

Taxes(a) 2,370,314

(a) Exclusive of some $1,790,000 taxes paid on leased lines.

Observe that the amount expended on maintenance of way and structures in 1909 was more than double the total estimated cost of the road from Harrisburg to Pittsburg in 1848.

The amount expended during the calendar year 1909 in revision of grades and alignment, and for additional tracks, yards and other terminal facilities, abolition of grade crossings and improvement of equipment was $5,581,809, exclusive of $4,000,000 applied towards construction of New York Terminal Extension.

This road as it exists today is a living monument to the sound policy of the American railway practice of a dollar for improvements for every dollar of dividends.

S. T.

FOOTNOTE:

[A] By an alteration of the line, since made, the distance lost by the river route is reduced to four-tenths of a mile.

RAILWAYS AND THE PACIFIC NORTHWEST

BY JAMES J. HILL.

[On the occasion of the completion of the Spokane, Portland & Seattle Ry., connecting Portland with British Columbia, Mr. Hill delivered three noteworthy addresses at Portland, November 6, 1908, at Tacoma November 9 and Seattle November 10. The speech at Portland was an earnest plea for a more intelligent and economical cultivation and conservation of the vast agricultural resources of the Pacific northwest; the other two related largely to the part played by the railways in the development of that territory. The portions of these addresses which follow are taken from the full reports which appeared in the Seattle and Tacoma newspapers the next days.]

MR. HILL AT SEATTLE.

After Mr. Hill had been introduced and warmly applauded as the "Empire Builder," who had been intimately associated with the development of the northern tier of states from the Lakes to the Pacific Ocean, and he had acknowledged his obligation to the indomitable spirit of Seattle and its people, he began his address by disclaiming the ownership of the Great Northern railway. "Fifteen thousand people own it." said he. "The average holding is about 120 shares. Over 6,000 women are owners in the Great Northern railway, and I have to manage their affairs." Then he proceeded:

"It is three years since I was here, and I never expected that three months would pass without my coming to Seattle, but three years have passed and what do I find? I think the city in three years has doubled. I think it has doubled in everything that goes to make a city. Just look at the streets lined with commercial houses which would be a credit to any city in the world. It is far beyond what I expected to find, and I think that Seattle has a future. Seattle is entitled to her growth, and if the same spirit that has moved her citizens in the past continues, if the mantle of the older men falls on the shoulders of the younger men, Seattle cannot help but thrive. You have behind you one of the richest states in the Union; one of the very richest.

* * * * *

DEVELOPMENT OF RAILWAYS.

"Now, to come back to the relation of the railway to the development of the country. Next to the cultivation of the soil itself, in the amount of money invested and in the importance to all the people, is the railway property of this country. It is on a little different basis, I am sorry to say, from the general attitude of the public, from any other property. From what Judge Burke says as to the Golden Rule, if you can have it fairly applied, it would make our hearts glad.

"We frequently hear about railroad watered stock. It is a hackneyed phrase which is used with which to catch gudgeons, and it has caught a great many. Now, let us see. You can open a bank--five of us sitting here, if we had the money, could open a bank, put up the building and draw our checks, and that is disposed of. We have a million or a million and a half of capital, and, conducting the business of the bank within the law applied to bankers, we can earn any dividend we like, and we can divide it, even up to 40 or 50 per cent., and it has been done, and nobody finds any fault. Now, we might start a manufacturing establishment and we can divide any profits that we can legally make up to 40 or 50 or 100 per cent., or we can start a mercantile establishment and conduct it so as to bring any profit--there is no limit so long as we are within the laws of trade. But take the railroad.

"Now, remember, you can run your manufacturing establishment twenty-four hours a day, or you can run it one day in the week, or you can run it half the time and you can close it and it will not affect you, or you need not run it at all; and if you do not like the business you can dispose of it. You can liquidate your bank and go out of business; and so with the mercantile establishment, you can close it at any time. But when you have invested your money in a railway, you have undertaken an obligation to serve the public; you have taken a business risk that is greater than the business risk of any other business in the world. If you do not run it, move your trains with regularity, move your trains so as to accommodate the business, the courts will appoint a receiver and will issue receiver's certificates to an extent that would wipe out your investment. If there were anything left they would hand it back, but the chances are altogether that if you could not make it pay the receiver could not.

RAILROAD BIGGEST RISK.

"Now, I mention this simply to show that the business risk in building or operating a railway is greater than it is in any other business. There is nothing guaranteed, and sometimes you are told what appliances you may use; you are told what you must not use; you are told whom you can hire, and you are told when you can discharge him, and it has been at least hinted as to what you should pay him--what his wages and condition of work shall be. So that the only privilege that was left for the railroads was to pay the bills. That they are always expected to do, and it would be a great disappointment if they were not able to.

"In the section of this country, the portion of this country east of Chicago, I do not know anywhere north of the Ohio River, where a railroad, built with the greatest care and economy, could pay one per cent. on its cost; that is, a new road, built between any of the large cities of the west to the large cities of the east, paying the present price of real estate and terminals and the cost of construction, the cost of eliminating great profits, the cost of the necessary expenditure of money to make life and limb safe.

"Take, for instance, a railroad from New York to Chicago. I had curiosity enough to inquire from the leading real estate man who was getting the additional property for the New York Central, their terminals, what it would cost from Thirty-eighth street to Harlem River, a narrow strip of blocks on the East Side, say ten blocks, from Thirty-eighth to Forty-eighth street, to be used as a terminal. He told me it ought to be secured for $200,000,000, but he would not like to take the contract. Now, follow that up through Albany and Syracuse, Rochester and Buffalo and Erie and Cleveland and on to Chicago, and if you can get into Chicago and get out of New York with any reasonable cost I want to say that when your road was finished, at the present rate, it could not pay 1 per cent. on what it cost in money.

NO ROOM FOR MORE ROADS.

"Now, what chance is there for more roads between New York and Chicago, or between any Atlantic city and any large city in the west? During the ten years from 1898 to 1908 the railroad mileage in the United States increased about 24½ per cent., the passenger business increased 125 per cent., and the freight business increased 148 per cent. The additional burden was placed on the railways, with an increase of over 148 per cent. in the tons moved. What is it costing the Pennsylvania road to get into the City of New York? I do not know the exact figures, but I have seen it estimated from time to time at one hundred millions of dollars to secure passenger facilities in the City of New York. When I think of these things and see what you have here I think that we have reason to congratulate ourselves, and I think that we had a narrow escape from being compelled to do our business west of Commercial street in place of where we are today. There are no places that I know of today where there is any room or any use for any other large railway enterprise.

"The Milwaukee & St. Paul are coming to the Coast--and we are glad they are there. At different times, when people largely interested in that enterprise talked with me, I said, 'By all means build to the Coast; extend your road--if you do not, somebody who has more enterprise than you will take the business and will keep it on their own rails and you will not get a share of it.' But when that enterprise is finished, I do not know, north of the Platte River, where there is room for another railroad or occasion for one. There will be branches built, and they are necessary for the development of the country. You had expended, and there is being expended now, a very large sum during the last two years.

"The Northern Pacific and the Great Northern, within the State of Washington, have spent millions of dollars between Portland and Spokane. It ought not to frighten you; it will not wipe you out; you have your roots deep in the ground and they will stay there.

TACOMA IS WAKING.

"Now, I find in summing up the present population of the new country between Blaine and Vancouver--Portland is on the other side of the Columbia, although, fortunately, the state line does not limit our commerce or our right to trade with each other--there are over 700,000 people living on the line of the railway between Blaine and Vancouver. Portland claims 200,000, and I feel sure that she must be near that figure. Portland has grown rapidly, and I think possibly the young men have taken a sheet out of your book. There was a time when they were altogether too wealthy in Portland. Every man had business of his own to attend to and was so deeply engaged in it that he overlooked the business of the city. They did not take hold. You could come there if you were willing to bear all the expense and take what you could get. But Portland has had an awakening, and I believe that Portland, notwithstanding its remoteness from the sea, will have a good growth. It has a good country behind it and there is no reason why it should not have a good growth.