CHAPTER VI

TRANSPORTATION--RAILWAYS AND RAILWAY ORGANIZATION; PUBLIC HIGHWAYS

In the United States and western Europe, in spite of the low cost of

water transportation, the railways have almost wholly monopolized the

transportation of commodities. This is due in part to the saving of time

in transit--for under the demands of modern business, the only economy

is economy of time--and in part to prompt delivery at the specified

time.

Into a large centre of population like New York, London, or Berlin, many

millions of pounds of perishable food-stuffs must be brought daily for

consumption. Now these food-stuffs must be delivered with promptness,

and no delay can be tolerated. A shipper having half a million pounds of

meat or a hundred thousand pounds of flour or a car-load of fruit to

deliver can take no risks; he sends it by rail, not only because it is

the quickest way, but because experience has shown it to be the most

prompt way; as a rule, it is delivered on the exact minute of schedule

time.

Cargoes of silks and teas from China and Japan might be sent all the way

to London by water, but experience has shown a more profitable way. The

consignments are sent by swift steamships to Seattle; thence by fast

express trains to New York; there they are transferred to swift liners

that take them across the Atlantic to European ports. And although this

method of shipment is enormously expensive as compared with the

all-water route, the saving of time and certainty of prompt delivery

more than offset the extra cost of delivery.

In the last half of the nineteenth century the cost of haulage in the

United States by rail decreased so materially that in a few instances

only--notably the Great Lakes and the Hudson River--do inland waters

compete with the railways.[12] This is due in part to better

organization of the railways, but mainly to the substitution of Bessemer

steel for iron rails and the great improvements in locomotives and

rolling stock.

The use of a steam-driven locomotive became possible for the first time

when Stephenson used the tubular boiler and the forced draught,[13]

thereby making steam rapidly enough for a short, quick stroke. In 1865 a

good freight locomotive weighing thirty tons could haul about forty

box-cars, each loaded with ten tons. This was the maximum load for a

level track; the average load for a single locomotive was about

twenty-five or thirty cars. Heavier locomotives could not well be used

because the iron rails went to pieces under them.

The invention of Bessemer steel produced a rail that was safe under the

pounding of a locomotive three or four times as heavy as those formerly

employed; it produced boilers that would carry steam at 250 instead of

60 pounds pressure per square inch. As a result, with only a moderate

increase in the fuel burned, a single locomotive on a level track will

haul eighty or ninety box-cars, each carrying nearly seventy thousand

pounds.[14]

The application of the double and the triple expansion principle has

been quite as successful with locomotive as with marine engines in

saving fuel and gaining power--that is, it has decreased the cost per

ton-mile of hauling freight and likewise the cost of transporting

passengers. Enlarged "fire-boxes," or furnaces,[15] enable steam to be

made more rapidly and to give higher speed.[16] Only a few years ago

forty-eight hours was the scheduled time between New York and Chicago;

now there are about forty trains a day between these two cities, several

of which make the trip in twenty-four hours or less.

=Railway Development.=--The railway as a common carrier, having its right

by virtue of a government charter, dates from 1801, when a tramway was

built between Croydon and Wandsworth, two suburbs of London. The rails

were iron straps, nailed to wooden stringers. The charter was carefully

drawn in order to prevent the road from competing with omnibus lines and

public cabs.

When the steam locomotive succeeded horse-power, however, there

followed an era of railway development that in a few years

revolutionized the carrying trade in the thickly settled parts of the

United States and Europe. Short, independent lines were constructed

without any reference whatever to the natural movement of traffic. There

seemed but one idea, namely, to connect two cities or towns. Indeed, the

absence of a definite plan was much similar to that of the interurban

electric roads a century later; local traffic was the only

consideration.

At first an opinion prevailed that the road-bed of the railway ought to

be a public highway upon which any individual or company might run its

own conveyances, on the payment of a fixed toll; indeed, in both Europe

and the United States, public opinion could see no difference between

the railway and the canal. The employment of a steam-driven locomotive

engine, however, made such a plan impossible, and demonstrated that the

roads must be thoroughly organized.

At the close of 1850 there were nearly four hundred different railway

companies in England; in the United States about a dozen companies were

required to make the connection of New York City and Buffalo. A few of

these paid dividends; a large majority barely met their operating

expenses, defaulting the interest on their bonds; a great many were

hopelessly bankrupt.

=Consolidation of Connecting Lines.=--Between 1850 and 1865 a new feature

entered into railway management, namely, the union of connecting lines.

This was a positive advantage, for the operating expenses of the sixteen

lines, now a part of the New York Central, between New York and Buffalo

were scarcely greater than the expenses of one-third that number. The

service was much quicker, better, and cheaper. In England the several

hundred companies were reduced to twelve; in France the thirty-five or

more companies were reduced to six in number.

The consolidation of connecting lines brought about another desirable

feature--the extension of the existing lines.[17] The lines of

continental Europe were extended eastward to the Russian frontier, and

to Constantinople; then the Alps were surmounted. In the United States

railway extension was equally great. The Union and Central Pacific

railways were opened in 1869, giving the first all-rail route to the

Pacific coast. Other routes to the Pacific followed within a few years,

one of which, the Canadian Pacific, was built from Quebec to Vancouver.

[Illustration: A TRUNK SYSTEM--THE VARIOUS BRANCHES EXTEND INTO COAL,

GRAIN, IRON, CATTLE, TIMBER, AND TOBACCO REGIONS]

The period from 1864 was one of extensive railway building both in the

United States and Europe. Some of the roads, such as the transalpine

railways of Europe and the Pacific roads of the United States, were

greatly needed. Others that created new fields of industry by opening to

communication productive lands were also wise and necessary; the lands

would have been valueless without them. Not a few lines that were to be

needed in time were built so far ahead of time that they did not even

pay their operating expenses for many years.

Another class of roads was intended for speculative purposes. Thus,

there were instances in which a line occupying a given territory had

antagonized its patrons by poor service, and extortionate charges.

Thereupon another company would obtain a charter--which was then easily

done--and build a competing line in the same territory, the former most

likely having scarcely enough business for one road.[18] The results

were almost always the same; a war of rate-cutting followed; the

stockholders of both roads lost heavily; and one or both went into the

hands of receivers.

=Competition and Pools.=--In many instances the consolidation of roads,

while cutting off disastrous competition in the territory jointly

occupied by the two roads, brought the consolidated road into fierce

competition with another adjacent system. If the roads had practically

the same territory but different terminals the competition was confined

mainly to local traffic. On the other hand, they might have the same

terminals but cover different local territories; in this case the roads

must compete for through traffic. Thus the Chicago, Burlington & Quincy

is brought into competition with the Union Pacific in Nebraska, but

inasmuch as the roads have different and widely distant terminals, their

local traffic is easily adjusted. The Chicago, Burlington & Quincy and

the Northwestern have common terminals at Chicago, St. Paul, Denver,

Omaha, and Kansas City. They must therefore compete with each other, and

with half-a-dozen other roads for their through traffic.

Competition between railways differs greatly from that between two

firms. If one of two firms cannot afford to compete, the manager may

discharge his help, and close doors; he then does not suffer actual

loss. But a railway, being a common carrier, cannot do this; the road

must keep its trains moving or lose its charter. If it cannot carry

goods at a profit it must carry them at cost or at a loss. Even the

latter is better than not carrying them at all, for the operating

expenses of the road must go on.

So between 1870 and 1880 most of the railway managements were busy

devising ways to stop a rate-cutting and competition that was ruinous.

In many instances great trunk lines would have consolidated had not

State laws prevented. They could not maintain rates because one or

another of the weaker roads would be compelled to lower their rates in

order to meet their operating expenses. Therefore they were compelled to

do one of three things, namely, to divide the territory, to divide

traffic, or to divide earnings. Either of the two latter plans is called

a _pool_.

Of these two forms of pooling the division of the traffic is the easier,

but it is often unsatisfactory to the patrons of the road. The second

plan, the division of the earnings, is a more difficult matter to adjust

because each road is usually dissatisfied with its proportion. As a

matter of fact, however, the first plan of pooling is very apt to grow

into the second.

In several instances pools have been declared illegal by the courts,

but, in general, railway service has been more satisfactory under the

pool system than under any other. They have always aroused popular

suspicion, however, from the fact that they increase power of the

railway itself. In various instances important trunk lines have formed a

general company, each having its separate organization, because they

could accomplish under a combined organization what they could not as

independent companies. The restrictions against pooling have therefore

encouraged combination of competing lines.

Because the railway is an absolute necessity, and because it has power

given neither to individuals nor to other corporations, it is a settled

policy that both the State and general Government should have the power

to regulate its rates, and should in every way prevent unjust

discrimination. Both problems are very difficult, however, and the

unintelligent adjustment of rates has frequently resulted in injustice

both to the roads and their patrons.

A rate per ton-mile for each class of freight is out of question,

because a large part of the cost to the company consists in loading,

handling, and storing the goods. Once aboard the car, it costs but

little more to carry a ton of freight one hundred miles than to move it

one mile. The rates per mile, therefore, are necessarily greater for

short distances than for long runs. A mile-rate based on a ten-mile haul

would be prohibitive to the shipper if applied to a run between Chicago

and New York. On the other hand, were the charges based on the long run,

the local rates would be far less than the cost of the service.[19]

As a result freight rates are based very largely on the cost of the

service, and this is particularly true of local freights. This practice

is also modified by charging _what the traffic will bear_, and, on the

whole, a combination of the two ideas gives the most reasonable and the

fairest method of basing charges. Thus, a car filled with fine, crated

furniture, which is light and bulky, can afford a higher rate than one

filled with scrap-iron. Cars filled with grain, lumber, coal, or ore are

made up in train-loads, and form a part of the daily haul; they can

afford to be taken at a lower rate than the stuffs of which only an

occasional car-load is hauled. In order to adjust this problem it is

customary to divide freights into six general classes.

[Illustration: THE PROBLEM OF FREIGHT RATES]

In handling through freights the problems are many, and, if two or more

roads have the same terminal points, a great deal of friction of

necessity results. The longest roads must either make their through

rates lower than local rates between distant points, or lose much of

their through business. They cannot afford to do the latter and the

statutory laws may forbid the former. As a result the laws most likely

are evaded, or else openly disobeyed.[20]

The difficulties in adjusting the matter of the long and the short

haul, as has been shown, have caused the formation of pools and various

other traffic associations, the object of which has been to prevent

rate-wars. To this extent they resulted in positive good, for a

rate-war in the end is apt to be as hurtful to the community as to the

railway company. The attempt to settle such questions has also resulted

in a great deal of legislation. Some of this has been wise and good; but

not a little has been hurtful both to the railroads and to the

community. The general result is seen in the great combination of

competing lines and, more recently, of competing systems.

=Passenger Service.=--Passenger traffic is more easily managed than the

movement of freight. For the greater part the rates are fixed by law. On

a few eastern roads local rates are two cents per mile; in the main,

however, a three-cent rate prevails, except that in sparsely peopled

regions the rates are four and five cents per mile. On many roads

1,000-mile books are sold at the rate of twenty dollars; on some the

rate is twenty-five dollars per book.

Long-distance rates involving passage over several roads are somewhat

less than the local rates. These rates are determined by joint

passenger-tariff associations. Each individual road fixes its own

excursion and commutation rates; one or another of the joint passenger

associations determines the rates where several roads divide the

traffic. The latter are usually one, or one and one-third fares for the

round trip.

Except on a few local roads in densely peopled regions the passenger

service is much less remunerative than freight business, and not a few

railways would abolish passenger trains altogether were they permitted

to do so. Rate-cutting between competing roads has not been common since

the existence of joint passenger associations. It is sometimes done

secretly, however, through the use of ticket-brokers, or "scalpers," who

are employed to sell tickets at less than the usual rate; it is also

done by the illicit use of tickets authorized for given purposes, such

as "editors'," "clergymen's," and "advertising" transportation.

In many instances, where several roads have the same terminal points, it

is customary for the road or roads having the quickest service to allow

a lower rate to the others. Thus, of the seven or eight roads between

New York and Chicago, the two best equipped roads charge a fare of

twenty dollars on their ordinary, and a higher rate on their limited,

trains. Because of slower time the other roads charge a sum less by two

or three dollars for the same service. This cut in the rate is called a

"differential."

=Railway Mileage.=--The railways of the world in 1900 had an aggregate of

nearly four hundred and eighty thousand miles distributed as follows:

North America 216,000

Europe 173,000

Asia 36,000

South America and West Indies 28,000

Australasia 15,000

Africa 12,000

In western Europe and the eastern United States there is an average of

one mile of railway to each six or eight square miles of area. In these

countries railway construction has reached probably its highest

development, and the proportion seems to represent the mileage necessary

for the commercial interests of the people.

The railways of the United States aggregate 193,000 miles--nearly

one-half the total mileage of the world. Over this enormous trackage

38,000 locomotives and 1,400,000 coaches and cars carry yearly

600,000,000 passengers and 1,000,000,000 tons of freight. They represent

an outlay of about $5,000,000,000. Owing to the absence of the

international problems that have greatly interfered with the

organization of European railways, the roads of the United States have

developed "trunk-system" features to a higher degree than is found

elsewhere.

In the United States and Canada the farms of the great central plain,

together with the coal-mines, are the great centres of production, while

the seaports of the two coasts form great centres of distribution. Most

of the trunk lines, therefore, extend east and west; of the north and

south lines only two are important. The reason for the east-west

direction of the great trunk lines is obvious; the great markets of

North America, Europe, and Asia lie respectively to the east and the

west.

[Illustration: THE DISTRIBUTION OF THE RAILWAYS OF THE UNITED STATES

THEIR POSITION DEPENDS ON THE PRODUCTION OF THE LAND]

=Railway Ownership.=--The ownership of railways is vested either in

national governments or else in corporate companies; in only a few

instances are roads held individually by private owners, and these are

mainly lumber or plantation roads. Thus, the railways of Prussia are

owned by the state; most of those of the smaller German states are owned

either by the state or by the empire; still others are owned by

corporate companies and managed by the imperial government. In their

management military use is considered as first in importance.

In France governmental ownership and management have been less

successful. Plans for an elaborate system of state railways failed, and

the state now owns and operates only 1,700 miles, mainly, in the

southwest. Belgium controls and operates all her lines, but as the

latter are short and the area of the state small, there are no

difficulties in the way of excellent management. In Great Britain all

the railways are owned and controlled by corporate companies. The great

transcontinental line of the Russian Empire was built by the government,

but the latter does not own it.

In the United States the railways are now owned by corporate companies.

Some of the western roads were built by Government subsidies;[21] other

roads were built by the aid of States, counties, or cities, which

afterward sold them to corporate companies. The first transcontinental

railways required Government assistance, and could not have been built

without it; nowadays, however, corporate companies find no difficulty in

providing the capital for any railway that is needed.

Inasmuch as the railway is a positive necessity, upon whose existence

depends the transportation of the food daily required in the great

centres of population, the charter of the railway gives the company

extraordinary powers. Most steam railway companies are permitted by the

State to exercise the power of _eminent domain_--that is, they may seize

and hold the land on which to locate their tracks and buildings, if it

cannot be acquired by the consent of the owners; they may also seize

coal and other materials consigned to them for shipment if such

materials are necessary to operate their lines.

Therefore, in consideration of the unusual powers possessed by the

companies, the various States reserve the right to regulate the freight

and passenger tariffs. They may also compel the companies to afford

equal facilities to all patrons, and take the measures necessary to

prevent discrimination.

The control of the railways by the government may be absolute, as in the

German state of Prussia; or it may consist of a general supervision, as

in the case of the Canadian railways. In almost every European state

there is a director or else a commission to act as a representative

between the railways and the people. In the United States the various

States have each a railway commission, while the general Government is

represented by the Interstate Commerce Commission.

=Electric Railways.=--The use of electricity as a motive power has not

only revolutionized suburban traffic but it has become a great factor in

rural transportation as well. The speed of the horse-car rarely exceeded

five or six miles per hour, while that of the electric car is about ten

miles per hour in city streets and about twice as great over rural

roads. As a result, the suburban limits of the large centres of

population have greatly extended, and the population of the outlying

districts has been increased from four to ten fold.

[Illustration: ELECTRIC RAILWAY--ROCKY MOUNTAINS]

[Illustration: ELECTRIC FREIGHT LOCOMOTIVE--ERIE RAILROAD]

From some of the larger cities the electric roads reach out to

distances of one hundred miles or more and have become the carriers of

perishable freight, such as fruit and dairy products. These are not only

delivered just as promptly as though they were sent over the steam

roads, but the delivery is more frequent. Indeed, the marvellous success

of the electric interurban railway is due mainly to the frequency of its

service.

=Public Roads and Highways.=--Carriages propelled by steam, electric, and

gasoline motors have become an important factor in the delivery of goods

in nearly every city of Europe and America. They are not only speedier

than the horse and wagon, but their keeping costs less. They are

economical only on good roads. The bicycle, no longer a plaything,

exerted a very decided effect on transportation when the "pneumatic" or

inflated rubber tire came into use. Through the bicycle came the demand

for good roads; and several thousand miles of the best surfaced roads

are built in the United States each year.

The ordinary highways or roads, the paved streets of the large cities

excepted, are popularly known either as "dirt" roads or "macadamized"

roads, the latter name being applied to about every sort of graded

highway that has been surfaced with broken rock. Most of the roads of

western Europe are of this character. They are laid out with easy

grades, and a thick foundation of heavy stone is covered with smaller

pieces of broken rock, the whole being finished off with a top-dressing

of fine material. Once built, the expense of keeping them in good order

is less than that of keeping a dirt road in bad order.

Most of the country highways of the United States are dirt roads that

are deep with dust in dry weather and almost impassable at the breaking

of winter. Roads of this character are such a detriment that grain

farming will not pay when the farm is distant twenty miles or more from

the nearest railway. Many a farmer pays more to haul his grain to the

nearest railway station than from the railway station to London.

Since it has become apparent that the commercial development of many

agricultural regions depends quite as much on good wagon roads as upon

railways and expensive farming machinery, there has been a disposition

to grade and rock-surface all roads that are important highways.

Intercommunication becomes vastly easier; the cost of transportation is

lessened by more than one-half; and the wear and destruction of vehicles

is reduced to a minimum. In every case the improvement of the road is

designed to increase traffic by making a given power do more work in

less time.

QUESTIONS FOR DISCUSSION

What have been the effects of Bessemer steel on the carrying power of

railways?--on cheapening freight rates?

What would be some of the effects first apparent were a large city like

London or New York suddenly cut off from railway communication?

What is meant by a tubular boiler?--by a forced draught?--by a

switch?--by an automatic coupler?

Ascertain from a railway official the various danger-signals as

indicated by lights, flags, and whistle-blasts.

Why should not crated furniture and coal have the same freight rate?

What is meant by a pool?--by long haul and short haul?--by rebate?

If the rate on a given weight of merchandise is one dollar and fifty

cents for five miles, should it be three hundred dollars for one

thousand miles?

FOR COLLATERAL READING AND REFERENCE

Hartley's Railroad Transportation.

American Railways.

[Illustration: DISTRIBUTION OF VEGETATION]

Commercial Geography A Book for High Schools, Commercial Courses, and Business Colleges · 第 6 / 34 章