Although the United States was the second nation to open a line of railway, it operates to-day nearly half the mileage of the world, and it has so many miles of double, triple, and quadruple track that, were the data of trackage available, such a comparison would undoubtedly show it to more than equal all the rest of the world combined.

Below is given a chart comparing the mileage of the principal railway countries. The list contains all countries having a mileage of over ten thousand kilometers.

The most prominent fact is impressed by the very long line representing the mileage of the United States. A second impressive fact is that the United States has more than six times the mileage of any other country. A third, that there are but five other countries that have even a tenth as much railway.

RAILWAY MILEAGE OF THE UNITED STATES.

Total Annual Mileage and Increase.—On page 429 is given a chart which, beginning with the 23 miles of 1830 and ending with the 156,082 miles of 1888, delineates our ever-increasing total mileage. It also portrays the fluctuations in the number of miles built annually. This latter study is the more interesting, especially during the last twenty-five years, which cover the periods of extreme activity.

Mileage Compared with Area.—The shaded map on the same page pictures the railway mileage of each State as compared with its total area. The eleven States bearing the deepest shade (5) are those having the larger proportions of mileage to area. Of these, New Jersey stands first, having almost exactly one-fourth of a mile of railroad for each square mile of land. The proportion of total area occupied by this mileage is measured to the eye by the accompanying diagram.

The entire square stands for one square mile of land, and the space at the upper left-hand corner stands for that part of the square mile which the railroad occupies, counting from fence to fence on each side of the road. This comparison is made on the basis of one hundred feet for the "right of way" (the width allowed in government grants), and is useful in connection with the study of the historical maps, especially those of 1880 and 1889, on which the area of some of the States seems to be nearly all taken up with roads, owing to the small scale of the maps. Iowa has the smallest proportion of any in Group 5. The figures show her proportion to be a little over one-seventh of a mile of road to one square mile of area. (Nevada has the smallest proportion of all the States and Territories, viz., a trifle over ¹/₁₁₇ of a mile of line to one square mile.)

That part of the map bearing the deepest shade shows at a glance that an unbroken belt, averaging some two hundred miles wide, stretching from Cape Cod to beyond the Mississippi River, is that part of the country best supplied with railways.

The lighter shades grouped on either side of this belt show how the mileage grades away north and south.

GEOGRAPHICAL LOCATION OF RAILWAYS.

On pages 430 to 433 is a series of historical maps showing the location of railway lines at each census-year from 1830 to 1880, and in 1889. Charts comparing and ranking the mileage by States accompany the maps of 1870, 1880, and 1889. These maps and charts give a better idea of the location and extent of progress than could be given by a dozen pages of description and a hundred columns of figures.

Centre of Mileage and of Population.—The space for notes on the maps permits the bare mention of the meaning of the series of stars in the 1889 map (page 433), which mark the centres of mileage and of population. It is well to state the manner of determining the centres of mileage, that it may have its proper bearing in any study of the subject into which the showing may enter.

The locations are necessarily approximate. Each centre was determined by selecting, on the proper map, a line running east and west which seemed, to the eye, to nearly divide the mileage into equal parts. The sum of the mileage of the States north, was then compared with that of the States south of the line. By this means the position of the line chosen by the eye was corrected and the right parallel determined. The meridian dividing the total mileage into equal parts was ascertained in like manner. The point of intersection of the parallel and meridian is marked in the map by a star, having the proper date printed to the right of it.

The upper series of stars locates the centres of railway mileage, and the lower series the centres of population, as given by the returns of the census of 1880.

The following table describes the several locations thus ascertained:

Centres of Railway Mileage.

The remarkable movement of the centre of mileage from 1850 to 1860 is easily understood when one turns to the maps of those dates (page 430) and locates the fields of activity. The wonderful increase in Ohio, Indiana, Illinois, Wisconsin, and Iowa gave the Western impulse, while the growth in Tennessee and the States south of it furnishes the principal explanation of the southerly motion.

Although the study of this period is the most interesting of the series, in the space passed over, yet each period has its points of special interest, which the reader will easily solve by referring to the proper maps on pages 430 to 433.

Railway Systems.—The consolidation of separate lines under central controlling interests has resulted in several "systems" of great extent. Five such are mapped on pages 434 and 435. The roads controlled by them are printed in broad lines, while all others are printed in narrow lines. It needs but a glance to see whether any of them has so far absorbed the roads of a given region as to be able to control rates. The systems selected are believed to be representative ones, and the mapping of a dozen others would not tell the story any more plainly.

TRUNK LINES COMPARED.

Compared by Mileage.—At present there are twenty-four corporations reporting over one thousand miles of line each. A comparison of these roads by mileage is profitless, as it furnishes no just clew to their importance in point of business transacted. Several of the shorter of these twenty-four lines largely exceed some of the longer ones in the volume of business transacted. As an example of the little value of comparison by mileage, the New York Central & Hudson River Road, with but 1,421 miles of line, reports $63,132,920 receipts, while the Union Pacific, with 6,288 miles, reports but $19,898,817. Two of the twenty-four roads, viz., the Southern Pacific Railroad (5,931 miles) and the Richmond, West Point & Terminal Railroad (6,869 miles) report neither gross or net earnings. The remaining twenty-two report both, and these reports furnish a satisfactory basis for study.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Comparative Statement of Maintenance of Way of the Illinois Central Road for Ten Years.

[Table—Part 1 of 2]

[Table—Part 2 of 2]

Employees.—This item is also one touching which railways make few reports. The New York Central & Hudson River Road reports as follows: "Average number of employees, 20,659, being at the rate of 14.54 per mile of road worked; aggregate wages, $12,460,708.89, or $603.16 each. Payments in wages equalled 50.60 per cent. of the total working expenses, against 51.90 per cent. in 1886–87." Reckoning that each employee's wages supports an average of three persons, we have a total of 61,977 persons clothed, housed, and fed by this one corporation.

"Poor's Manual" discusses this subject at some length, but mainly on theoretical ground.

Rolling Stock.—A table showing the history of the growth of the rolling stock of the country is given on page 148; it is therefore unnecessary to repeat it here.

Capital Invested.—It is folly for the human mind to attempt to grasp the immensity of the financial interest expressed in the statement, that the combined capital invested in the railways of the United States is $9,369,398,954. No more can it comprehend that this vast aggregate has been the growth of about fifty years in a single interest, in a single country.

Capital Invested.

The first date in the table marks the close of the first century of our national life. Since that time the investment has more than doubled; an increase of nearly five billion dollars in twelve years—an average of over four hundred million dollars per year. More exactly expressed, this means $1,118,906 per day, or $46,621 for every hour, day and night, during the first twelve years of our second century.

It is safe to say that no other financial interest shows a total of such wonderful magnitude. And with greater emphasis may it be said, that the finances of the world, record, in all the ages, to the present day, no such astounding increase of investment.