|R'k |States | Miles |
+----+-------+-------+
| 48 | D.C. | 21 |»
| 47 | R.I. | 214 |»»
| 46 | Del. | 315 |»»»
| 45 | Ida. | 868 |»»»»
| 44 | Wyo. | 902 |»»»»
| 43 | Nev. | 948 |»»»»»
| 42 | Vt. | 959 |»»»»»
| 41 | I. T. | 973 |»»»»»
| 40 | Conn. | 1,006 |»»»»»
| 39 | N.H. | l,079 |»»»»»
| 38 | Ariz. | 1,095 |»»»»»
| 37 | Utah | 1,133 |»»»»»»
| 38 | Md. | 1,162 |»»»»»»
| 35 | W. Va.| 1,281 |»»»»»»» 2,000 Miles
| 34 | Wash. | 1,319 |»»»»»»» |
| 33 | Me. | 1,321 |»»»»»»» |
| 32 | N.Mex.| 1,321 |»»»»»»» |
| 31 | Oreg. | 1,412 |»»»»»»» |
| 30 | La. | 1,505 |»»»»»»» |
| 29 | Mont. | 1,804 |»»»»»»»» |
| 28 | N.J. | 1,981 |»»»»»»»»»|
| 27 | Ark. | 2,046 |»»»»»»»»»|»
| 26 | Mass. | 2,074 |»»»»»»»»»|»
| 25 | N.C. | 2,084 |»»»»»»»»»|»
| 24 | Miss. | 2,218 |»»»»»»»»»|»»
| 23 | Fla. | 2,250 |»»»»»»»»»|»»
| 22 | Tenn. | 2,488 |»»»»»»»»»|»»» 4,000
| 21 | N.C. | 2,529 |»»»»»»»»»|»»» |
| 20 | Ky. | 2,585 |»»»»»»»»»|»»»» |
| 19 | Va. | 2,931 |»»»»»»»»»|»»»»» |
| 18 | Ala. | 2,986 |»»»»»»»»»|»»»»»» |
| 17 | Ga. | 3,928 |»»»»»»»»»|»»»»»»»»»|
| 16 | Colo. | 4,038 |»»»»»»»»»|»»»»»»»»»|
| 15 | Cal. | 4,128 |»»»»»»»»»|»»»»»»»»»|»
| 14 | Dak. | 4,465 |»»»»»»»»»|»»»»»»»»»|»» 6,000
| 13 | Nebr. | 4,980 |»»»»»»»»»|»»»»»»»»»|»»»» |
| 12 | Wis. | 5,330 |»»»»»»»»»|»»»»»»»»»|»»»»»» |
| 11 | Minn. | 5,375 |»»»»»»»»»|»»»»»»»»»|»»»»»» |
| 10 | Ind. | 5,890 |»»»»»»»»»|»»»»»»»»»|»»»»»»»» |
| 9 | Mo. | 5,901 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|
| 8 | Mich. | 6,490 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»» 8,000
| 7 | N.Y. | 7,598 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»» |
| 6 | Ohio | 7,636 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»» |
| 5 | Tex. | 8,211 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|» 10,000
| 4 | Pa. | 8,225 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|» |
| 3 | Iowa | 8,365 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»» |
| 2 | Kans. | 8,755 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»» |
| 1 | Ill. | 9,901 |»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|
+----+-------+-------+ | | | | |
The figures in the two charts show that four States alone claim
more than one-fourth of the growth (Kansas, 5,354; Texas,
4,967; Dakota, 8,240 and Nebraska, 3,207 miles; total, 16,768
miles.) Six other States (Iowa, Mich., Col., Minn., Wis., and
Penn.) had each an increase of over 2,000 miles.--The charts
give Illinois the longest line from 1870, but the position of
Texas in the three charts seems to prophesy that Illinois must
soon yield. In 1860, Ohio led; in 1850, New York, and in 1840,
Pennsylvania.--The upper series of stars in the 1880 map locate
the center of railway mileage. See page 427, preceding.]
[Illustration: Chicago, Milwaukee and St. Paul System, 1889.]
[Illustration: Chicago, Burlington and Quincy System, 1889.]
[Illustration: Chicago and Northwestern System, 1889.]
[Illustration: Pennsylvania System, 1889.]
[Illustration: Vanderbilt System, 1889.]
[Illustration: Largest Receipts, 1888.
(See page 437, following)
+--+----------------+-----------+
|R.| Corporation | Receipts | $10M
+--+----------------+-----------+ |
|15|Ill. Cent. |$13,660,245|»»»»»»|»»
|14|Mich. Cent. | 13,770,593|»»»»»»|»» $20M
|13|A. T. & St. F. | 15,612.913|»»»»»»|»»» |
|12|N. Pacific | 15,846,328|»»»»»»|»»» |
|11|L. & N. | 17,122,026|»»»»»»|»»»» | $30M
|10|L. S. & M. S. | 18,029,627|»»»»»»|»»»»» | |
| 9|U. Pacif. | 19,898,817|»»»»»»|»»»»»»| |
| 8|B. & O. | 20,353,492|»»»»»»|»»»»»»|» | $40M
| 7|C. B. & Q. | 23,789,168|»»»»»»|»»»»»»|»» | |
| 6|C. M. & St. P. | 24,867,730|»»»»»»|»»»»»»|»»» | |
| 5|C. & N. W. | 26,697,559|»»»»»»|»»»»»»|»»»» | | $50M
| 4|N. Y. L. E. & W.| 27,217,990|»»»»»»|»»»»»»|»»»»» | | |
| 3|N. Y. C. & H. R.| 36,139,920|»»»»»»|»»»»»»|»»»»»»|»»»» | |
| 2|Penn. W. of P. | 37,894,370|»»»»»»|»»»»»»|»»»»»»|»»»»» | |
| 1|Penn. E. of P. | 58,172,078|»»»»»»|»»»»»»|»»»»»»|»»»»»»|»»»»»»|»»»»»
+--+----------------+-----------+
Largest Net Results, 1888.
(See page 437, following)
+--+----------------+-----+
|R.| Corporation |Net %| 10% 20% 30%
+--+----------------+-----+ | | |
|15|N. Y. C. & H. R.|31.85|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»
|14|Penn. E. of P. |33.39|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»
|13|D. & R. G. |33.43|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»
|12|A. T. & St. F. |33.47|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»
|11|N. Y. L. E. & W.|33.85|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»
|10|Ill. Cent. |34.41|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»
| 9|C. R. I. & P. |35.29|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»
| 8|E. T. V. & G. |36.06|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»
| 7|L. & N. |36.11|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»» 40%
| 6|L. S. & M. S. |37.27|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»» |
| 5|C. & N. W. |37.56|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»» |
| 4|U. Pacif. |40.80|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»
| 3|N. Pacif. |41.52|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»
| 2|St. L. & San F. |41.88|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»
| 1|St. P. M. & M. |46.08|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»»»»|»»»»»»
+--+----------------+-----+
]
[Illustration: AVERAGE CHARGE PER MILE FOR EACH TON OF FREIGHT
HAULED.
TRUNK LINES. 1870--1889
Chicago and Northwestern
Chicago, Milwaukee and St. Paul
Chicago, Rock Island and Pacific
=Av. of 6 Lines West of Chicago=
Chicago, Burlington and Quincy
Illinois Central
Chicago and Alton
Boston and Albany
Michigan Central
New York Central
=Av. of 7 Lines East of Chicago=
Pennsylvania
Lake Shore and Michigan Southern
New York, Lake Erie and Western
Pittsburgh, Fort Wayne and Chicago
=Explanatory.=--The upper edge of the deep shade marks the
fluctuations of the average rate charged by the seven lines
east of Chicago.--The upper edge of the light shade marks the
fluctuations of the average rate charged by the six lines west
of Chicago.--Each particular road has a distinctive line, which
makes it easy to trace it among other lines.--All Western lines
are accompanied by lines of color, to distinguish them plainly
from the Eastern lines, and to make their relation to their own
average more easily discovered. The Boston and Albany is the only
Eastern line whose rate places it near the Western lines, but the
absence of color prevents it from being taken for a Western line,
which it might otherwise be, especially during the last three
years, in its journey through and above them all.--The C. B. &
Q. Road makes no report later than 1879.--The Chicago and Alton
report begins at 1874.
=Explanatory.=--The diagram upon which the rates are charted
(like all such diagrams) is constructed of perpendicular and
horizontal lines. Each line, and each space between lines, has
a particular meaning. The perpendicular spaces represent years,
indicated by the figures at the top of each space. The horizontal
spaces represent money values, each space representing .2c (two
mills). Each horizontal line represents a particular money value,
marked by the figures at the end of the line. Each black dot
represents the average annual rate of some particular road. For
example, take the Boston and Albany Road. Starting with the name
and following the tracing line, the 1870 dot is found just below
the 2.2c (2 cents and 2 mills) line. This indicates that the
average rate charged by that road in 1870 was a trifle less than
2.2c. Following the line leading from the 1870 dot into the 1871
space, the 1871 dot is found a little below the center of the
space between the 2c line and the 2.2c line, indicating a rate of
a little less than 2 cents and 1 mill for 1871. The next year it
is lower still. In this way the history of any road is quickly
traced.]
_Largest Receipts._--A comparison on the basis of gross receipts
gives the best means of judging of the financial importance of the
several roads, for it measures the volume of business done. On
page 435 is given such a comparison of the fifteen roads (of the
twenty-two referred to above) reporting the largest gross receipts.
_Largest Net Results._--While the gross receipts measure the volume
of business they may not give any indication of net results. A
chart, immediately under that comparing gross receipts, compares
the net receipts of the fifteen roads (of the same twenty-two)
which report the highest per centages.
Of the ten reporting largest net results, seven are west of
Chicago. This fact, coupled with the desire of the great western
systems to possess new territory in advance of others, suggests a
reason for the large railway growth in that part of the country.
FREIGHT TRAFFIC.
The gross traffic receipts of the railways of the United States are
divided between freight and passenger business in very nearly the
proportion of three to one in favor of the freight traffic. For
this reason, and because the data are still more largely available
on the same side, the freight service receives herein the fuller
treatment.
_Reduction of Freight Rates._--On the opposite page is a chart
delineating the fluctuations in freight rates since 1870. To one
not familiar with the subject the picture presented is a most
remarkable one. It looks as though the roads are all in a mad
scramble to see which can reach the bottom of the hill first. To
railway managers the picture is a painful reminder of a serious
struggle, the end of which no one can yet predict.
The lines selected are representative lines of the east and west
divisions of the country, north of the Ohio River, where the great
number of competing roads has induced sharp competition.
The history of the _averages_ is very clear, and it is easy to see
that they are steadily approaching common ground, for while in 1870
the eastern average marked almost exactly one cent six mills, the
western marked two cents four mills, a separation of eight mills;
in 1888 they recorded seven mills and a trifle over nine mills, a
separation of about one-quarter of the 1870 record.
_Wheat Rates._--The chart below repeats the lesson of the larger
chart as to reduction of rates. The persistency with which water
rates have kept below rail rates, emphasizes the fact that wherever
water-ways exist, they are stubborn competitors for such freight
traffic as will not suffer by the longer time required for the
journey.
[Illustration: Average Freight Rates per Bushel of Wheat from
Chicago to New York.]
_The Freight Haul._--It costs as much to load and unload a train
that hauls its freight ten miles as it does one that carries it a
thousand miles. In other words, the longer the haul the less the
proportional cost to the carriers. The great extension of long
lines westward in the last few years naturally raises the question
whether the average freight haul has increased. The largely
diminished rates suggest that probably producers have been led
thereby to ship both agricultural and manufactured products greater
distances to market. One or both of these conditions may have
operated favorably for some roads, but, plausible as the theories
seem, the facts prove that neither of them is supported in a study
of the average haul of the country. The available figures permit us
to go back only to 1882. Within that period the little chart given
herewith delineates the fluctuations, but indicates no permanency
in either direction. It is a matter of regret that in this, as in
many other studies, the history is not available for earlier years,
as the more extended the view the better the judgment of such
questions becomes.
[Illustration: Average Number of Miles each Ton of Freight was
Hauled.]
_Empty Freight Trains._--One of the considerable items of expense
in the freight traffic is that of returning empty cars to their
point of starting. Just how large an item this is depends chiefly
upon the demands of the population at either end of the operating
line for the product of the population at the opposite end. Thus
the carriage of the great agricultural product of the West to
feed the denser population of the East, and for export to foreign
countries, may or may not be met by the demand of the western
people for the manufactures of the East and the imports from
foreign countries arriving at the eastern seaboard. It is scarcely
probable that any line, short or long, running east and west or
north and south, finds its traffic in opposite directions balanced.
[Illustration: Percentage of East-Bound and West-Bound Freight
carried by the Lake Shore and Michigan Southern Railway Co.]
An interesting study of this problem is presented in the
accompanying chart, the road selected for the illustration being
one of the large carriers between Chicago and Buffalo. The upper
chart-line marks the proportion of freight carried from west to
east, while the lower line (at the top of the shaded part of the
diagram) marks the portion carried from east to west. It is readily
seen that in 1877 the west-bound freight was less than half as
much as the east-bound, for they stand 30.8 per cent, and 69.2 per
cent., respectively; and in 1878 the difference is still greater.
From that year, however, there has been great improvement, so that
now it would appear that there is on that road a much diminished
need for hauling empty cars. The history of the Pennsylvania Road
is similar to that shown in the chart, but the ratios have not come
so nearly together. That of the New York Central & Hudson River
Road shows very little change in the ratios since 1870, and all
the time both these roads report a very large excess of east-bound
freight.
[Illustration: Profit per Ton per Mile.]
_Freight Profits._--The change in rates are of great moment to the
producer; that of profits is the important one to the carrier.
No matter how great the reduction of rates, if the reduction of
expense is as great, the profits are not disturbed. This question
can be studied best by examining the figures which measure the
actual profits. But few corporations furnish such figures, and the
two whose history is delineated on the accompanying chart are among
those giving the most readily available data. It will be seen that
the reduction of profits is no less remarkable than the reduction
of rates, which shows that the reduction of rates has far exceeded
that of expense of carriage; for, had the reduction of expenses
kept pace with that of rates, the profits would have remained
level. As it is, the reduction of profits in the history of these
roads, as shown, is from about six mills per ton per mile in 1870,
to about two mills in 1888. These two roads are probably good
representatives of the experience of the general freight service
of all railways north of the Ohio River. If so, the prospect of the
future of freight traffic is not cheerful.
PASSENGER TRAFFIC.
The study of passenger traffic is less satisfactory than that of
freight traffic. Fewer lines furnish a history of their passenger
rates, and ordinarily those histories cover shorter periods. The
study is therefore confined to narrower limits and its lessons are
necessarily less conclusive.
[Illustration: Passenger Rates per Mile.]
_Passenger Rates._--Below is given a chart interpreting the
available data of six representative lines. The first lesson
impressed is that no such reduction marks the history of passenger
rates as is shown in freight rates, although the general trend
of the chart-lines is plainly downward. The line indicating the
average rate for all the roads in the country (marked U. S. in the
chart) shows a reduction of over one-fourth of a cent per passenger
per mile since 1882.
Certain features of this chart attract special attention. The
reduction of rates by the Pennsylvania, and the New York Central &
Hudson River roads in 1876, and that by the same roads in 1885, are
suggestive. Equally noticeable are the reductions of the Illinois
Central in 1871, 1872, 1880, and 1888.
This chart would seem to indicate that competition has not operated
as sharply on passenger as on freight traffic.
_Passenger Travel._--The average distance that passengers ride is
not as important an element of railway business as is the average
freight haul, for the passengers load and unload themselves; so
that, whether they ride few or many miles, the cost of loading and
unloading is neither increased nor diminished. On the contrary,
if a thousand tons of freight, once loaded, is to be hauled one
hundred miles instead of fifty, the proportional cost of loading
and unloading is reduced one-half.
[Illustration: Average Number of Miles each Passenger was Carried.]
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.
[Illustration: Profit per Passenger per Mile.]
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.
[Illustration: Average Dividend Paid on Total Capital Stock.]
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.
[Illustration: Net Earnings and Mileage Built.]
_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.
[Illustration: Ratios of Increase.]
_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._