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The Railroad Question / A historical and practical treatise on railroads, and remedies for their abuses

Chapter 24: APPENDIX.
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A comprehensive historical and practical survey examines the development of transportation and railways, their rise in the United States, and the emergence of monopoly, financial abuses, and political influence. It traces technical and institutional history, analyzes stock and bond inflation, combinations, and rate-setting, and reviews legislation including state and federal measures. The author assesses proposals for public control versus private ownership and offers remedies and regulatory reforms, illustrated with state-level examples, literature reviews, and statistical appendices. The work emphasizes balancing commercial growth with government oversight to secure equitable access and prevent speculative exploitation.

"You are engaged in a service of a public character, and the public are interested not only in the way in which you perform your duties while you continue in that service, but are quite as much interested in the time and circumstances under which you quit that employment. You cannot always choose your own time and place for terminating these relations. If you are permitted to do so you might quit your work at a time and place and under circumstances which would involve irreparable damage to your employers and jeopardize the lives of the traveling public."

Mr. Powderly, in commenting upon the above decision, does not complain of it, but says:

"The decision shows, as I have said before, that the principle of Government ownership of the railroads is being recognized by the courts. While the decision is apparently against the men, it emphasizes our position that the Government has the right to supervise the railroads. Now it is a poor rule that won't work both ways.

"The Interstate Commerce Law was passed for the purpose of controlling the railroads, but up to date no railroad has paid any attention to the law. Anarchy of the worst kind has prevailed. By that I mean a total disregard of the law, and that is what the corporations charge against the anarchists. The courts hold themselves in readiness to obey the will of the corporations when a charge is made against the workmen, but no effort is made to carry out the mandates of the law when the provokers of strikes, the corporations, violate the law."

There is but little doubt, if the judges of the Federal courts would show the same zeal in holding railroad managers amenable to the law as Judge Ricks has displayed in this case with the employes, they would secure increased confidence from the people in the tribunals over which they preside.

All fair-minded persons will agree that labor as well as capital must be subjected to proper restraints, and that the public will demand nothing unreasonable from either.

Accidents are too frequent upon American railroads. The reports of the Interstate Commerce Commission give the following as the numbers killed and injured during the years named:

  1888 1889 1890 1891
Killed. Injured. Killed. Injured. Killed. Injured. Killed. Injured.
Employees 2,070 20,148 1,972 20,028 2,451 22,396 2,660 26,140
Passeng's    315   2,138    310   2,146    286   2,425    293   2,972
Others 2,897   3,602 3,541   4,135 3,598   4,206 - -
Total 5,282 25,888 5,823 26,309 6,335 29,027 - -

For the year ending June 30, 1890, the total number of employes was 749,801. There was, therefore, one death for every 306 men employed and one injury for every 33 men employed. For the previous year one was killed for every 357 men employed, and one was injured for every 35 men employed. While trainmen represent but 20 per cent, of the total number of employes, the casualties among them represent 58 per cent. of the total number of casualties.

For the year 1888, one passenger was killed in every 1,523,133 passengers carried, and one injured in every 220,024 carried.

The corresponding rate in England for the year 1888 is one passenger killed for every 6,942,336 carried, and one injured for every 527,577 carried.

Railroads doing a large business should be compelled to adopt the most improved appliances for avoidance of accidents.

The occupation of trainmen is especially hazardous, and too long continued service should not be required, but proper intervals of rest should be allowed. It is to the want of this, undoubtedly, that a great many of the serious accidents are owing.

No more Sunday trains should be run than are absolutely necessary. Provision should be made by law to enable trainmen to procure insurance at the lowest rate possible, for indemnity against loss of health, life or limb.

It was only a few days before the great disaster occurred on the Hudson River Railroad at Hastings, over a year ago, that an announcement had been made to the public of the extreme prosperity of the road during the year. The great slaughter that occurred there is another illustration of the disregard of public duty, and another instance of the sacrifice of life and limbs of passengers and employes by a railway corporation in order to secure large dividends on watered stock. It is not only gross, but criminal neglect for a company with such an immense income not to provide greater safety appliances, and the coroner's jury in this case was too modest when it decided that the management of the road was morally responsible for the disaster.

Parliament has compelled the British railways to adopt, in the interest of the public safety, the block system and continuous brake, and great lines like the New York Central and Hudson River companies should be compelled to adopt such improvements.

The traveling public has another grievous cause for complaint. There are but few companies that make any efforts to have their trains connect with those of rival roads. On the contrary, a good deal of scheming is often done by railroad companies to so arrange their time-tables with reference to those of their rivals as to inconvenience passengers as much as possible by delays at competing points. To remedy this evil the State should require that every time-table should have the approval of proper authorities, and no change should be permitted without their approval.

Railroad companies are chartered for the purpose of promoting the public welfare, and every violation of their charter should be punished.

It should be the main object of railroad legislation to compel companies to fulfill their public obligations without depriving them of their efficiency. Above all things these companies should be stripped of the power to use their great wealth for the purposes of corruption or the attainment of political influence. Our railroads to-day probably represent no less than one-fourth of the personal property of the country, and this vast wealth is controlled by a comparatively small number of men, many of whom have in the course of time become so arrogant and despotic that they have little regard for popular rights or the expressed will of a free people.

It is reported that when, a few years ago, a representative of the press directed Mr. Vanderbilt's attention to the fact that the public disapproved of his railroad policy, the latter gave vent to his contempt for public opinion by the no less profane than laconic reply: "The public be damned." Ex-Railroad Commissioner Coffin called on one of the Goulds to urge the adoption of the automatic car-coupler and other safety appliances for the roads controlled by them. He was very curtly told that not a cent would be expended by the Gould roads for such a purpose until the West had repealed its obnoxious railroad laws. The Gould dynasty thus intends to accomplish the repeal of these laws by coercion. Railroad magnates and their lieutenants often show still greater arrogance in dealing directly with their employes.

It may be difficult for railroad managers of the present school to adapt themselves to new conditions; it may be impossible for them to understand how any other practices than those which have long been established can succeed; yet in spite of them both the law and public sentiment have already undergone great changes, and still greater changes will follow. It may take years to accomplish this work; to bring about any great reform requires time and a deter, mined purpose on the part of its advocates. Yet I believe the era is not far off when railroads will be limited to their legitimate sphere as common carriers, when they will treat all persons and all places as impartially as does the Government in the mail service, when their chief factor in rate-making will be the cost of service, when they will respect the rights of the public and those of their stockholders, insuring perfect service to the former and fair profits upon the actual value of the lines operated to the latter.

The fact should, finally, not be overlooked that it is in the power of the General Government to prevent many railroad abuses, and especially excessive freight charges, by the improvement of our rivers and harbors. That our water-courses act as levelers of interstate rates is apparent from the fact that railroad rates invariably rise with the freezing of the water-ways and fall with the opening of river and lake navigation. By connecting, wherever feasible, our large Western rivers with the great lakes, the Government could greatly extend the reign of competition in transportation, and thereby keep freight rates within reasonable bounds. Lake transportation even now plays an important role. In 1892 it was not less than 20,000,000,000 ton miles during the season of eight months' duration, and it is almost equal to one-fourth of the total ton mileage of all the railroads in the country for the entire year. The average rate of lake transportation has been reduced to 1.3 mills per ton per mile, which is only about one-seventh of the average railroad freight rate in the United States.

Where the masses hold the sovereign power, there, if anywhere, the welfare of the people should be the supreme law. Violent political commotions never disturb the government whose policy is to secure the greatest good to the greatest number. Thorold Rogers justly remarks that the strength of communism lies in the misconduct of administrations, the sustentation of odious and unjust privileges and the support of what are called vested interests. Lord Coleridge, in a remarkable article published not long ago, recommended a revision of the laws relating to property and contract, in order to facilitate the inevitable transition from feudalism to democracy, and laid down the rule that the laws of property should be made for the benefit of all, and not for the benefit of a class.

During the middle ages, and even up to the beginning of the present century, nearly all the laws on the statute books looked towards the protection of the rights of the feudal lord. Provision was made for the expeditious collection of his dues and a severe punishment of his delinquent debtor. The peasant was forced to labor fifteen hours per day and three hundred and sixty-five days in the year to pay the baron's rentals and sustain life. The law permitted him to be flogged for failing to courtesy the feudal lord, and to be executed for injury to the lord's person, while to kill a peasant was no worse a misdemeanor than to kill his lordship's favorite dog or falcon. In short, all laws were made to protect and perpetuate the wealth and power of the few by impoverishing, humbling and enslaving the masses.

The age of feudalism has given way to an age of democratic liberty, but there is many a feudal feature left in our statutes and many a feudal doctrine is enunciated by our judges and learned expounders of modern jurisprudence. In his decision in the Iowa tariff case Judge Brewer said:

"I read also in the first section of the Bill of Rights of this State [Iowa] that 'all men are by nature free and equal and have certain inalienable rights, among which are those of enjoying and defending life and liberty, acquiring, possessing and protecting property and pursuing and obtaining safety and happiness,' and I know that while that remains as the supreme law of the State, no legislature can, directly or indirectly, lay its withering or destroying hand on a single dollar invested in the legitimate business of transportation."

Had Judge Brewer taken the pains to read on, he would have found in section 2 of the Bill of Rights the following:

"All political power is inherent in the people; government is instituted for the protection, security and benefit of the people."

It is strange that the learned Judge failed to see the difference between "men," the creatures of God, "by nature free and equal," and "possessing certain inalienable rights," and corporations, the creatures of man, having no rights except those which the State sees fit to give them. Had the learned Judge perused the whole of the document to which he refers, he would have found in article VIII, section 12, the following provision:

"The General Assembly shall have power to amend or repeal all laws for the organization or creation of corporations, or granting of special or exclusive privileges or immunities, by a vote of two-thirds of each branch of the General Assembly."

It should thus have been plain to the learned Judge that in Iowa corporations have not human or inalienable rights, and government was not instituted for their special protection, but for the protection, security and benefit of her people. Nor should it be otherwise.

The corporation for pecuniary gain has neither body nor soul. Its corporeal existence is mythical and ethereal. It suffers neither from cold nor from hunger, has neither fear of future punishment nor hope of future reward. It takes no interest in schools or in churches. It knows neither charity nor love, neither pity nor sympathy, neither justice nor patriotism. It is deaf and blind to human woe and human happiness. Its only aim is pecuniary gain, to which it subordinates all else.

Should the State sacrifice the welfare of all her people rather than lay its "withering or destroying" hand on a single dollar of corporate wealth? Are there no human rights, for the protection of which government was established, more sacred than the rights of a wealthy corporation's dollar? Have the people made the judiciary a coördinate branch of the Government in order that it may protect the vested or rather usurped rights of corporations against legislative attempts to curtail them? If the courts so interpret the power which has been delegated to them, they will awake one day to the painful reality that popular convictions of right are more potent than judicial decrees.

It is the duty of the State not so much to defend the so-called vested rights of corporations as to make such just and beneficial laws as will temper inequality, mitigate poverty, protect the weak against the strong, preserve life and health, and, in short, promote the welfare and the happiness of the masses. Constitutions have been made to accomplish these ends, to protect the lives, the liberty and the conscience of human beings, while laws have been sufficient to protect the dollars of corporations. It is a short-sighted policy on the part of the latter to take unfair advantage of their wealth and influence, for "As ye sow, so shall ye reap," is the inexorable law of Providence. There is no dynasty so mighty, no class so privileged, no interest so influential or wealthy as to obtain immunity from its operation.







APPENDIX.


TABLE No. 1.


Compiled from the Sixth Annual Report of the Interstate Commerce Commission.

Mileage in the United States June 30, 1891 168,402.74
Number of men employed 784,285
Number of employes per 100 miles 486
Number of locomotives per 100 miles 19
Number of passenger cars per 100 miles 17
Number of cars per 100 miles 721
Capital $9,829,475,015
Capital per mile 60,942
Gross earnings 1,096,761,395
Gross earnings per mile 6,801
Operating expenses 731,887,893
Operating expenses per mile 4,538
Net income from operation 364,873,502
Net income per mile 2,263
    Of gross income 67.17 per cent. was earned on freight.
    Of gross income 25.64 per cent. was earned on passengers.
Received for carrying mails $  24,870,015
Received rentals from express companies 21,594,349
Received from investments 133,911,126
No. of passengers carried 531,183,988
No. of tons freight carried 675,608,323
Average journey per passenger 24.18 miles
Average haul per ton of freight 120 miles
Average number passengers per train 42
Average number tons freight per train 181.67
Average revenue per passenger per mile 2.142 cents
Average revenue per ton per mile of freight .895 cents
Average revenue per train mile, passenger $1.06
Average revenue per train mile, freight 1.64


TABLE No. 2.

Statistics of the Railways of the United Kingdom for The Year Ending Dec. 31, 1891.


From the English Reform Almanac for 1893 and from the Report of Commissioners R. Giffen and Courtenay Boyle to the Board of Trade.

Mileage 20,191 miles
Double, triple or quadruple 10,853 miles
Capital per mile £45,536
Gross income per mile 3,873
Net income per mile 1,818
Income from passenger traffic 35,130,916
Income from goods traffic 43,230,717
Income from miscellaneous 3,498,974
Income, total £81,860,607
Operating expenses, 55 per cent. £45,144,778
Rates and taxes 2,246,430
Government duty 321,260
Paid for persons injured 165,219
Paid for damage and loss of goods 257,804
Number of first-class passengers 30,423,776
Number of second-class passengers 63,378,397
Number of third-class passengers 751,661,495
    Number of third-class passengers over 88 per cent. of all.
Number of employes 346,426
Number of employes per 100 miles 1,750
Number of locomotives per 100 miles 80
Number of passenger cars per 100 miles 249
Number of freight and other cars 2,595
Revenue per train mile 58.37d
Expense per train mile 30.54d
Per cent. of earning on capital 4.21


TABLE No. 3.

Showing Salaries and Wages Paid to Officials and Employes of
State Railways in Europe.


Compiled from Röll's Encyclopädie des Eisenbahnwesens.

Position. Austria. Hungary. Prussia. Belgium.
  Fl., equal to about 33-1/3 cents. Fl., equal to about 33-1/3 cents. Mark, equal to about 24 cents. Fr., equal to about 20 cents.
President 7,000 10,500 9,000
Directors and Superintendents 4,000-5,500 4,000-4,800 4,200-6,000 7,000-8,000
Chief Engineer 1,600-2,000 1,900-2,500 3,600-4,800 2,700-5,500
Clerks 500-1,200 640-1,000 1,000-2,700 900-3,100
Station Agents in Cities, Division Superintendents 2,200-2,600 2,600-3,400
Station Agents in Towns 500-850 520-880 1,500-3,200 1,600-4,000
Locomotive Engineers 500-850 520-780 1,200-2,000
Fireman 300-350 380-480 1,000-1,500
Conductors 450-550 520-850 1,100-1,500 2,000-2,400
Brakemen 300-350 380-480 800-1,200 1,200-2,000
Section Men 288-336 270-370 700-900


TABLE No. 4.

Compiled from Röll's Encyclopädie des Eisenbahnwesens.


FREIGHT TARIFFS.Belgium.

All freight is divided into three general classes:

1. Express Freight, which is delivered by special messengers. Parcels weighing 5 kg. (11 lbs.) and less, if prepaid, are carried for .80 fr. (16c.) for all distances. Parcels not prepaid and such as weigh from 6 to 10 kg. pay .90 fr. for a distance of from 1 to 25 km.; 1 fr. for 26 to 75 km.; 1.10 fr. for greater distances.

2. Fast Freight, which may be made use of for consignments weighing up to 200 kg. (440 lbs.) Parcels weighing up to 5 kg. pay .50 fr. for all distances. Parcels not prepaid and such as weigh from 5 to 10 kg. pay .50 fr. for from 1 to 25 km.;.60 fr. for distances ranging from 26 to 75 km., and .70 fr. over 75 km.

3. Common Freight, which is again sub-divided into four classes: In Class I 400 kg., in Classes II and III 5,000 kg., and in Class IV 10,000 kg. is recognized as the minimum weight.


TARIFF FOR THE FOUR DIFFERENT CLASSES OF COMMON FREIGHT.

Terminal Charges—Franc 1.00.

I Class—For 1,000 kg. (2,250 lbs.)
  From 1 to 5 km. Fr. 1.00
  From 6 to 75 km., per km.        .10
  From 76 to 150 km.        .08 (per km. above   75)
  From 151 to 200 km.        .06 (per km. above 150)
  Above 300 km.        .06 (per km. above 200)
II Class—For 1,000 kg.
  From 1 to 5 km. Fr. 0.40
  From 6 to 75 km., per km.        .08
  From 76to 125 km.        .04 (per km. above   75)
  Above 125 km.        .02 (per km. above 125)
III Class—For 1,000 kg.
  From 1 to 5 km. Fr. 0.30
  From 6 to 75 km., per km.        .06
  From 76 to 100 km.        .03
  From 101 to 125 km.        .02
  Above 125 km.        .01
IV Class—For 1,000 kg.
  From 1 to 24 km., per km. Fr. 0.06
  From 25 to 75 km., per km.        .04
  From 76 to 100 km.        .02
  From 101 to 350 km.        .01
  Above 350 km.        .02
For distances from 1 to 24 km. the terminal charges are only .5 fr. for Class IV.


TABLE No. 5.


Germany.

The tariff recognizes the following distinctions:
  1. Fast parcel freight  
  2. Fast carload freight   
  3. Parcel freight   
  4. General carload Class A1, for shipments of at least 5,000 kg.
  5. General carload Class B, for shipments of at least 10,000 kg.
  6. Special tariffs   
Distance charges per ton per kilometer: (Pfennig, 1/4 c.)
  1. For parcel 11.0 pfennige
  2. For carload Class A1   6.7 pfennige
  3. For carload Class B   6.0 pfennige
  4. For special Tariff A2   5.0 pfennige
  5. For Special Tariff I   4.5 pfennige
  6. For Special Tariff II   3.5 pfennige
  7. For Special Tariff III:   
        For distances up to 100 km.   2.6 pfennige
        For Distances above 100 km.   2.6 pfennige
  8. For fast parcel freight 22.0 pfennige
  9. For fast carload freight, twice the rate of Classes A1 and B.
Terminal Charges.
1. For parcels and carload Class A1:
  Up to 10 km. 10 pfennige
  From 11 to 20 km. 11 pfennige
  From 21 to 30 km. 12 pfennige
  From 31 to 40 km. 13 pfennige
  From 41 to 50 km. 14 pfennige
  From 51 to 60 km. 15 pfennige
  From 61 to 70 km. 16 pfennige
  From 71 to 80 km. 17 pfennige
  From 81 to 90 km. 18 pfennige
  From 91 to 100 km. 19 pfennige
  Above 100 km. 20 pfennige
2. For carload Class B:
  Up to 10 km.   8 pfennige
  From 11 to 20 km.   9 pfennige
  From 21 to 30 km. 10 pfennige
  From 31 to 40 km. 11 pfennige
  Above 40 km. 12 pfennige
3. For Special Tariffs A2, I, II and III:
  Up to 10 km.   8 pfennige
  From 11 to 100 km.   9 pfennige
  Above 100 km. 12 pfennige
Charges for Live Stock.
(a) Horses. Terminal charge per head, 1 m. (24c.)
  Distance charge per kl. for one head 0.30 mark
  Charge per kl. for 2 head   .40 mark
  Charge for each additional head   .10 mark
(b) Cattle.  
  Terminal charge, per head 0.60 mark
  Distance charge per kl., for one head   .10 mark
  Distance charge for each additional head   .03 mark
(c) Sheep, Hogs, Calves, etc.:  
  Terminal charge, per head 0.20 mark
  Distance charge, per kl., for each of the first 10 heads .02 mark
  Distance charge, per kl., for each additional head .01 mark
If shipped in carloads the charges for live stock are .03 m. per square meter per kilometer.


TABLE No. 6.


France.

The French railroads divide all freight into six different classes. The following is the tariff adopted by a majority of the principal roads:

Common Freight.

  Centimes per Ton—Kilometer.
Classes. 1 2 3 4 5 6
Up to 25 km. 16 14 12 10 8 8   
From 26 to 100 km. 16 14 12 10 8 4   
From 101 to 150 km. 15 13 11   9 9 3.5
From 151 to 200 km. 15 13 11   9 7 3.5
From 201 to 300 km. 15 13 11   9 4 3.5
From 301 to 500 km. 14 12 10   8 4 3   
From 501 to 600 km. 13 11   9   7 4 3   
From 601 to 700 km. 12 10   8   6 4 2.5
From 701 to 800 km. 11   9   7   5 4 2.5
From 801 to 900 km. 10   8   6   4 4 2.5
From 901 to 1000 km.   9   7   5   4 4 2   
Above 1,000 km.   8   6   5   4 4 2   

The rates for fast parcel freight are, on all roads, for less than 40 kg., per ton, km.:
  Up to 200 km. 35 centimes
  From 201 to 300 km. 32 centimes
  From 301 to 400 km. 31 centimes
  From 401 to 800 km. 30 centimes
  From 801 to 1,000 km. 28 centimes
  Above 1,000 km. 25 centimes
For more than 40 kg.:  
  Up to 100 km. 32 centimes
  From 101 to 300 km. 30 centimes
  From 301 to 500 km. 28 centimes
  From 501 to 600 km. 26 centimes
  From 601 to 700 km. 24 centimes
  From 701 to 800 km. 22 centimes
  From 801 to 900 km. 20 centimes
  From 901 to 1,000 km. 18 centimes
  Above 1,000 km. 16 centimes
Express parcels weighing up to 3 kg. (6-3/5 lbs.), pay 1 fr. for all distances, and parcels weighing from 3 to 5 kg. pay fr. 1.20. Delivery to the house, 25 centimes (5c.) additional.
Live Stock, per piece, per km.:
  Horses and cattle 16 centimes
  Calves and hogs   6 centimes
  Sheep, etc.   3 centimes


TABLE No. 7.


Italy.Freight Tariff.

Rates. General Classes.
1 2 3 4 5 6 7 8
For the ton—km. 0.1632 0.1428 0.1224 0.1020 0.0816 0.0714 0.612 0.0510
Terminal charges, per ton 2.04     2.04     2.04     2.04     2.04     1.224     1.224 1.224  
The rate on merchandise sent as fast freight is .452 lire (9c.) per ton kilometer.