192 



THE POPULAR SCIENCE MONTHLY. 



and passenger earnings are seen to have fallen off considerably 

 since 1871, and the final effect of these changes is summarized by 

 the item of dividends, which are seen to be less than fifty per cent 

 of those paid during 1871. 



The more complete statistics of the last ten years afford still 

 more impressive results. The following data are for the year 

 ending on June 30, 1803, and comparisons by means of percent- 

 ages with 1884 are given : 



Tons of freight carried one mile.. . . 



Average rate per ton per mile 



Freight revenue 



Passengers carried one mile 



Average rate per passenger per mile 



Passenger revenue 



Operating expenses 



Net earnings 



Dividends 



1893. 



93,588,111,833 



0-878 cent 



$829,053,861 



14,229,101,084 



2-108 cents 



$301,491,816 



$827,921,299 



$392,830,575 



$100,929,885 



COMPARED WITH 1884. 



Increase, 

 per cent. 



109-25 



63-55 

 62-09 



*44 : 74 

 64-72 

 46-54 



Decrease, 

 per cent. 



21-96 



1053 



1-10 



It is thus seen that more than double the freight transporta- 

 tion of 1884 is now performed for a total compensation less than 

 two thirds greater; that passenger transportation has increased 

 eighteen per cent more than the sum paid therefor ; and that the 

 capital now invested in the stock of one hundred and seventy-six 

 thousand miles of railway receives in dividends a sum absolutely 

 less than did that invested in the one hundred and twenty-five 

 thousand miles operated during 1884. These figures furnish a 

 key to the reasons which justified Judge Cooley's epigrammatic 

 summary of the financial condition of the railway interest when 

 he declared that it " represents an enormous aggregate of wealth 

 and an increasing aggregate of corporate poverty." . 



The natural query is, What is to be the result ? Are railway 

 rates to go still lower, and the return to invested capital become 

 even less than at present ; or are charges to remain stationary, 

 and the public benefit from cheapening transportation be finally 

 or even temporarily suspended ? 



Probably the best informed among railway managers would 

 declare that their charges are already too low, and that it is highly 

 important to discover some means for preventing further reduc- 

 tions. As to what means would safely accomplish this result 

 there is great diversity of opinion, and not a few managers whose 

 knowledge of the conditions governing the business of transpor- 

 tation has accrued during long years of practical experience are 

 emphatic in the announcement of their belief that the tendency 

 toward lower charges is the result of commercial laws which 

 they have no power to restrain. If the latter opinion is the cor- 



