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The sun. (New York [N.Y.]) 1833-1916, October 14, 1912, Image 4

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.Louis in M n 11 ii f 1 1 c t ti ri 11 r. l-'i-imiicc.
CoiiniKMTi' mill
Steel K.vnnrts n Million Dollnrs
.. ik ... am, . ..t ii... I
It I'll iMl-llllll ill I 111)
World's It. If. Milciijrc.
Wamini!TON. Oct. 13. No ninn In (lie
Government service mid probably few
In t tin country nn more competent to
analyze evidences of pnnperlty In the
United States thnn 1m o. 1'. Austin,
Assistant chief of Hip Hurpnii of Foreign
und Domestic Commerce nnd fonncrly
chief of Hip lliirenu of Statistics of thn
Department of Commerce nml lnbor.
Mr. Austin linn made thp country's com
mercial and Industrial development the
etudy of a lifetime.
Ills opinion Is that the country Is
now on thp high road to a record period
of prosperity, and that the foreign trade
of the, I'nlted Statps In the net year
Is to reach an Impressive high mark,
.Mr. Austin, talking with Tim Srs cor
respondent, called uttentton to the fact
that tho country's steel exports have
now reached the enormous total of
Jl,O00,O00 a day. With no alarming
political developments, niul with the
bumper crops now In sight the Gov
ernment's chief statistical! believes
pvery American within the next faw
years will have added cause to give
thanks thnt he Is un American.
The Government expert contend,
though, that It Isn't necessary to look
to tho future for reasons to celelirnto
Thanksgiving Day. There are plenty of
Ihem In the present and In the record
already made. The trouble with most
folks, na Mr. Austin sees It, Is that
they will not stop Ioiik enough to
think and realize what has already been
"Why," said he, picking up a memo
randum with the trade record for the
1 i 1 'J fiscal year on It, "do you realize
that the foreign commerce of the
I'nlted States has grown from less
than $1,000.(100.000 In IHTo to practi
cally $1,000,000,000 In 1S1-.".' One billion
dollars worth of the merchandise en
tering in ISl'.' passed from the Custom
House to the factory and $1,000,000,000
worth of the products of the factory
passed nut of the country seeking
markets abroad. Meantime the Inter
nal commerce of the country, the trade
nmous our own people, the home
market for home products, has grown
from $7,000,000,000 In 1ST0 to $33,000.
000.000 In ltU2."
Mr. Austin addpd that since 1S70 the
production of corn bus grown from
l.OOO.OOO.OoO bushels to nearly 3.OU0.
POO.non bushels per annum, of wheat
from to nn average of about
(.."O.flO'MiOO bushels, of cotton fiom about
3.000.000 to about 12.000,000 bales, the
alue of animals on fmin from $1.2.",0.
flftO.OOU to over $5,000,000,000 and the
alue of farm products from about $",
000,000.000 to $3,000,000,000.
The wonderful crops .reported by the
Department of Agriculture will of course
swell this Impressive record In the next
fiscal yeur.
The production of petroleum, Mr. Aus
tin pointed out. Increased from 220.
ooo.ooij g.illons in 1S70 to approximately
fi.noo.0oo.uoo gallons In 1912. of mal fiom
33.000,000 tons to 450,000.000 tons, of
pig Iron from less than 2.000.000 to ner
24.0oo.ooo tons and of steel fiom les
than 70.000 tons to more than 2C.000.000
"In the meantime." cild Mr. Austin,
"the railroads of the country have
grown from 52,000 miles to practlcallv
2K0.000 miles and rail transportation
rates from Chicago to New York have
fallen from 33 cents a bushel of wheat
to 10 cents a bushel, and on oth.-r
freight there were also large reductions.
"At tile same time our mines of p-e-
clnus metals have poured forth their
treasures nnd the money In i lteulution
In the countiy Iih grown from $H7.",
000,000 In 1S70 to $3,27t',00O.O00 ;ml from
.$17.50 per capita to $31.20 per capita.
"Manufacturing has meantime grown
even mote rapidly than agriculture.
The number of persons engaged In man
ufacturing has Incieased from 2.000,000
to over O.COO.OOO, their earnings fiom
$775,000,000 to $3,127,000,000, the capital
employed from a little over $2,ouo.o0u.ooo
to about $18,000,000,000 and the gross
va-luo of manufactures produced from
$4,250,000,000 to $20,000,000,000.
"All this," Mr. Austin added, "has
happened In forty years, while the pop
ulation was Increasing only 150 per
This enormous growth In production
nd manufacturing also has hud an
electrifying Influence upon the foreign
commerce of the I'nlted States.
"The exports," said Mr. Austin, "have
Increased from $!.77 per capita to 521 70
per capita In the same period, and that
of manufactures from $70,000,000 to
$1,000,000,000. We have advanced from
fourth place In the list of exporting na
tions to the head of the list.
"In railway lines we have two-fifths
of tho mileage of the entire world, and
more than nil ICuropo put together,
while our freight rates havo been stead
ily lowered until they nro now about
one-third those of 1S70 and ure lower
than in any other country In tho world.
"In llnauce the I'nlted States also
Ir.ids the world. Wn produce more of
the money metals than any other na
tion. As a result of this nnd our favor
able balance of trade the I'nlted Ktates
now has more gold and a greater
total of money In circulation than
nny other country In the world. Kx
perts also estimate that somewhat In
definite term 'banking power' uh being
gl eater In the I'nlted States than In
any other country, while their estimates
of total national wealth nlso plure tho
t'nllcd Ktutes clearly at the head of tho
list of nations. The census figures of
wealth In tho I'nlted States put tho
total of 1S70 at $20,000,000,000, while the
total at the present time approximates
"The bank clearings of New York city
grew from $2S,OOO,000,O0O In 1870 to
over $100,000,000,000 In 1!W0, and the
bank clearings of the cntlro country
from $52,000,000,000 in 18S7 to $1C9,
000,000,000 in lIHO. The total deposits
In the various classes of banks In 1S75,
l he earliest available figures, wcro In
i omul numbers $2,000,000,000; In 1911
they weie $ii,000,000,000, or eight times
"Hut the must gratifying feature Is
that deposits m sax lugs banks luue In
creased from $550,000,000 In 1h"i to $t,
212,000,000 lu mil. Tho wofklllRllien and
woil.lng women and children of this
country havn $1,000,000,000 laid aside
for,, rarnyday."
If a thing is worth doing at
all it is worth doing well.
Whether it be a man applying
for a job, or a building organ
ization looking for business,
the solicitation must be based
on auality of service.
The quality of service which
has made the Thompson-Star-rett
Company the greatest or
ganization of its kind, is the big
gestargumentthisCompanyhas. THOMPSON-STARRETT
Building Comtructloa
Cuntinued from 1'lnt I'Ofie.
and expenditures for liettermeiits nlono
Ihi considered, what can lx done with this
operating income oven at Its maximum
for August? Tho nvcruge net capitaliza
tion or a mile of railway In this country
is something over tno.ooo.nt tho most not
over $(15.00(1. This includes real estate,
road lied, track, locomotives, cars anil
all buildings anil structiiies of whatever
kind. A railway adapted to carry any
considerable traffic could not Ik) built and
eiii;ed at such a price to-diy. lint
still the net capitalization of the busiest
roads with their oxx'nslve torminuls
nveragos down within this $05,000 a mile
of line for the entire country.
Ojierating income or $33S a mile of
line u month is $12.5 a mile or line
a day. 'lhis is $l.'.s moro than for
August, 1011, anil. $l. 0i moro tli'nn for
August, 101U. Kveu if the sum of $12.51
were sxnt every day in providing better
ments in the way or track, cars and loco
motives for each mile of lino It would
bo a long time lie fore all the railways in
tho United Suites would becoino what
they ought to lie right now. Vorily tho
railways have been begrudged dollars
when they ought cheerfully to havo lieen
vouchsafed doll.us multiplied.
To be made what they ought to be the
railways need more capital, and they must
have more capital. These forty-seven
railways must not only make betterments
out ol this $12.51 a mile a day but out
ol it they must iuy interest on bonds
uud dividends on stock. The railways in
order to get new capital mut make re
turn on capital already invented In re
cent years many of them have had the
option or properly maintaining their road
uud equipment and curtailing or abandon
ing payment on capital, or of continuing
their return on capital and deferring
proper maintenance To state the prob
lem is to give its answer. Default on in
terest payments means bankruptcy In
adequate maintenance means a lower
condition or efficiency, which railway
managers always hope to be only tem
porary Then again, it Is to lie borne in mind
that ir in all cases there had been udequate
maintenance, operating income would not
have been as large as it has been
Hut this is not the whole story Hising
expenses, and especially rising wage of
labor, lend to wear uwuy the margin of
oiieraluig income, 'lhe tailways ill that
part or lhe United States east of Chicago
and St Louis and north of the Ohio and
Potomac Hivers were obliged to iay their
engiilemen in toll nearly llO.ono.omi more
man iney ouii nave pain ir the wage j
wale of I0ti had been in eflecf to their
i. ur in iini nun iieen in enisji io ineiri'"""i ' -
lirHinen over $7,fioo.Kii more; to their con- depression that came to an end a doyen
doctors over J7.im.ii more: to other . .ve-ir or mi ago. while through railway
truiumeu over $ls.ooo,iio more
It will lie
conservative to double these amounts lor j lw forced by tho competitive strug
the railways of the entire United State gles of a lust generation. These prices
to arrive not at the iueiea-ed wage but I advance with advancing demand, but it is
tho increases in wages to trainmen only jipiite itnsissible for the railways to mi
nus noes noi nieun null more wages were
paid because there were more emi)loves.
but tliut if the number of employees at
work during Ittll had been paid for the
same work ut the rates ol wages that wen
in effect in I Win their earnings would have
lieen less by the amounts given
This statement upplies to employees
running on trains only. Not only are
these meii now demanding even higher
wuges but telegraph operators, shopmen
ami trackmen and so on down the ranks
are preparing through powerful und well
orguuied brotherhoods to demand und
to enforce Increased rates of wage.
Suppose now that we give some con
sideration in n concrete way to what the
railwuys do and what they are paid for
doing it
To ascertain exactly what tr.ifllc is
actually mifved over u mile of railway in
one day two ruilwuy companies were
usked to compile this information for their
respective lines. One is auKastern trunk
lino having a greater density of traflio
than any other lu the United Stntes, nnd
its tralllo is typical of lhe manufacturing
region which it serves. The other U a
Western railway of moderate traffic, typi
cal of lhe agricultural district which it
trn verses.
Over one mile of the Kastern railway
pass in one day 701 freight cars, 105 pas
senger cars und forty-six locomotives
Over ono mile of the Western road pass
in one duy ls freight cars, t wenty-seveii
passenger cars and twelve locomotives.
Over one mile of the Kasleru road uro
hauled in one day 111, 101 tons of freight
and 1,170 pusseiigers; over one mile of the
Western roud in ono duy 2,851 tons or
freight and 250 pusseiigers.
Hy tho application or governmental
statistics of average consumption tu the
tonnage mllo a day of these two rail
ways wo obtain the iollowlng remilts:
Tho Kastnrn ruilway hauls on thenveiago
over each mile each day enough cement,
brick und lima to supply 1,07(1 ixtsoiis
for ono year; enough coal and coke to
supply 1,501 iersons for ono year; enough
.cotton to supply 701 persons ono year;
dressed meat to biipply ;il8 iersons one
year; fruit and vegetables to supply 1,170
persons ono year; iron for 11,140 persons;
ores for KU wiwms; poultry, game and
llsh for 050 peisouM; stono uud siud for
1,308 jiorsons; sugar for 823 jiersoiia; wines,
liquors and lieers for 3S1 porsons; wool
for 1,270 persons for one year. Tho freight
a mile a day thus expressed aggregates
10,552 tons, leaving 2,012 Inns, or nearly
0,ooo,mo pounds, or other commodities not
so classified (hat the average consumption
can lio ascertained. For this Hervloo
j this Ktstern railway received in gross
9IJS.0I. Arter all disbursements have
lieen drduotod fiom this tlioro romuins
for itu burplus only $0.53. That ifl, the
J surplus derived by tho company for
rendering this daily service over one mile
of its line is not'more than, If indeed it is
as much, as tho average dully my of an
engineer running over that lino.
The Western railway hauls on the aver
age over euch mile each day enough ce
ment, brick and lime to supply 302 per-
, sons for aim year; enough coal nnd coke
to supply 5(1 persons for one year; enough
cotton to supply 1,008 persons for tmo
year; enough dressed meats and other
packing houso products to supply 1,045
persons for one year; enough flax and ot her
souls for 17 persons for one year; enough
flour for 455 persons; oilier mill products
for 509 persons; petroleum nnd other oils
for 03 persons; poultry, game and llsh for
7 persons; fruit, nnd vegetables for 210
persons; grain for 148 persons; iron for lid
persons; rice for 1 , 122 persons; salt for 1 ,HB
persons; stono and sand for IS persons;
sugar and molasses for l,0M persons;
wines, liquors and beers for 207 persons
for ono year. The 1,100 tons of lumber
which constitute about two-fifths of the
dally t radio over one mllo or this railway
are enough to build foily-four two story
eight room woodnn houses or medium
size. The lumber hauled by this road in
the course of a year Is sufficient in quant Ity
to build over 45,000 such houses.
Vor thta Bervice this Western railway
received In gross 13U.H2, of which re
mained for surplus after all deductions
$1.53. This is substantially equivalent
to the daily wage of one laborer on Its
The average performance for each
mile for each day multiplied by MS days
gives the total performance for each
mile for tho year This multiplied by
240,000. tho aggregate number of miles,
gives, tho total ierrormanei or all tins
railways or the United States for tho
entire year. It will lie twrcelvcd that a
difference of one cent a mile a day in
the earnings or the exeiisos makes a
difference of $X7fi,OOo a year; a differeiu'e
of ten cents a mllo a dav a (lilTor' nce of
$1,700,00(1 a year: a difTeroluo or $1 a
mile n day amounts to $S7.000,(H for
the year, and this is very nearly one
third or the net dividends mi by all
or the railways or the United States lor
the entire llscal venr lBPi.
Ho who would know why railway de
velopment is lagging behind in the United
States must look not only below gross
receipts, operating expellees and net
revenue to the inootno account or the
railways, but he must take cognizance
of the essential changes during recent
years in values in general, and even in
tho value of money itself.
It is elementary to say that gold Is the
standard of value in tlx-count lies of
civilization and it is an elementary prosi
sitiou of economics that this standard ol
value itselr fluctuate. in value. If a
gold dollar would buy two bushels of
wheat ten years ago but will only buy
one bushel of wheat to-day the value
or gold, measured by its purchasing
xer or whoit, is but hair what or It
was then. II gold will only buy one
hair as much or commoditim and ser
vices in general ns it did ten years ago
gold is now worth only one-half ns much
as it was then. That is, if pricesare higher,
the value of gold has rallen.
While the value or gold Ins not fallen
so much as one-half in recent years, the
fall has been considerable. As everylsxly
knows, lhe prices or nearly all things have
risen. Hut freight rates huvo chaugod
very little during a great many years.
Tho Treight rates on the staple commodi
ties or general Uso which constitute the
greater part or the volume of traffic that
flows in the great through traffic chaniir Is
of the country have not gone up as the
prices of these staple commodities havo
risen. Prices of the grains, of oilier food
stuffs, or the ores, or lunilier. of manufac
tures, ami the rates or wages have I leen go-
. itit.tv.tr kliip.. Mm riri,i(l nf fHinitiiMrcin I
rates have remiined pretty much at the
, vnuce raies m- ui-iutiuti km i i.uiim
. tioii Increases. The difficulties which al-
ways U-set any attempt or the railways
to increase rales have been enhanced by
tho legislation which has decreed that
I the Interstate Commerce Commission shall
iass upon advances lierore they can be
made effective. Applications for in
creased rates arc almost invariably stis
landed by the commission, which at the
same time ord-rs lediictions in at least the
majority ot the compluint.s brought bofoie
The result is that not only are the luil
ways prohibited from charging more
even within reasonable limits for what
they sell but they nro not able to buy
so much with what they receive. A com
pilation published three years ago 'demou
nt rated the diminishing purchasing power
of railway receipts. As their purchasing
power has still further diminished it will
lie conservative to use these figures us
applying to the census decade.
A given amount of inilwiiy revenue in
I01U would purchase one-sixth less rail
way labor than in looo. An advance in
railway rates BUfllcient to compensate
for this diminished value of the dollar
us measured by the wages of labor would
alone amount to nearly 20 per cent.
In the course of ten years tho amount
spent by the railways for locomotive fuel
has risen from the ratio of $1 for each
$17.25 of gross receipts to $1 for euch $12.93
of jjross receipts.
This increased cost, upplies in nearly
every direction in which lhe railways are
obliged to muke outlays. The increase
hi their taxes is especially significant.
These were $251 a mile of line in lOOOund
$131 u mile of line in 1010. For the prin
cipal lines they were $583 for the llscal
year ended June 30, 1012. The aggregate
luxes paid during this fiscal year are
over $130,000,000, which is almost one
half of tho net dividends paid by the rail
wuys in 1010. Tho increase during 1012
over the tuxes paid by tho railwuys In
1000 is ulone equivalent to over $00, 000, 000,
which is about oiio-fotirth of the net
dividends puld by tho railways in 1010,
Contrasted with the diminishing pur
chasing power of railway receipts is tho
lucreuso in the purchasing power of rail
way service by the amounts reoelved by
wage earners and tho amounts derived
from tho sale of staple commodities or
commerce, Tho railwuys in 1009 were
obliged to transport at least 15 er cent,
more ton miles in order to pay the wages
or their employees than In 1000, A given
quantity of farm produots will purchase
09 Hr cent, morn railway transportation
than ten years ago; of cloths und clothing
40 sr cent, moro; of metal and Imple
ments 7t ier cent, more; of lumber and
building materials 70 per cent, more; of
moats 34 ier cent, more; of dairy and
garden products 50 er cent. more. Tho
average price of a horse will now purchase
211 per cent, more of railway transporta
tion than ten yearn ago, of a sheep 124
per cent, more, of swine 55 per cent. more.
In this period tho reductions in freight
ratci rnr outweighed tho advances. While
railway rates ns indicated hy tho average
receipts a ton a mile have changed but
little since looo, as expressed In money,
they have when expressed in the purchas
ing power of money declined on lhe aver
age at least 25 per cent.
To obtain an understanding of the
railway Mat u to-day the subject must
bn viewed in still another light, Tho
tremendous Industrial development of
the century since the introduction of steam
has been made possible only by the in
creasing use of machinery, hy tho widen
ing application of Invent Km and design
throughout the industrial arts While
machinery displaces labor In the Reuse
thnt It enables n vastly Increased produc
tion with less proportionate application
of labor, it at tho same time ho multiplies
the channels of production us to afford
opportunity for tho employment In lhe
"BRregate of u vastly greater number of
As It Is capital that provides the ma
chinery whose utilization Increases the
volumo of product, tho return to capital
if It were In proportion to tho value of Its
contribution to productivity would not
only bo greater than the return to labor
but would increase in proportion ns ma
chinery nnd appliances displace the
It Is the use of more powerful locomo
tives, larger cars, heavier rails, Improved
appliances nnd developed methods that
has enabled the railways to movea volume
of truffle thai has Increased throughout
many years nt a decreasing cost a unit of
traflio nnd thus in a measure to withstand
the continual reductions In rates and the
rising tide ol expenditure It would
seem, however, that the limit to this
period ol what the economists designate!
us increasing rpturn has not only been I
reached but that it has been pussed I
That the increase in rutes or wages, In
the price (or fuel and oliier supplies and
the advancing taxes, together with a level
ol rates that virtually has remained sta
tionary Tor many yeurs, have brought
about the logical result is made clear by
Mr. II T Newcomli In a recent article
in the 'oi'firov.lf'f'Urff.'r
For each ton or freight curried one mile
in tsst) there was u capital Investment, i
measured bv the net capitalization, of
1.1.71 cents; by 1010 this had been brought '
down to 5.02 cents, n reduction of (11.23
per cent. closer examination of the
official data fiir the last decade shows thnt .
Ironi unit to Mllo the productivity of capi
tal bus fluctuated uud that it has do-
flpiintiul ,!iftl,. tliu Inut Imlr nf th, Iw.rtnH
Whereas the average capital investment
from 100.1 to I0O7 inclusive wns r. to cents i
u ton of freight carried one mile, it was
.i ui ceni ror rne years ios io iiu. in
190!). Hi it required 5 13 or capital to pro
duce $1 ot gross receipts; while in ltto'-OS
it required only $5 ojuirt in 1uo.1-(i &5.18.
It isalso lols borne in mind that withinj
recent years the railways have lieen
obliged to enter upon the provision or
construction and uppliances that conduce
in but little degree to economy or opera
tion or to moving a larger volume of
traffic. The extension of the railways
of the United States was at first through
undeveloped regions in advance of traffic.
The track wan needed first and it was
often none too substantial; then locomo
tives niul cars, nnd Mich of these as
were in use twenty years ngo are crude
lieside ' those or current construction.
Stations were poor affairs; there was
negligible protection at grade crossings.
The railway in this country was and tho
nvernge railway remains but a skeleton
compared with the rnilway of Kngland or
of (iermuny: of larger frame and greater
Hiwer. but all exposed in its nakedness.
Safety couplers, block signals, interlock
ing automatic switches were unknown,
imtliought of, nnd in any event could not
have lieen afforded. As the population
has liecome more dense not only has
it lieen of their own volition that the
railways biend money in ways that are
relatively unproductive, but much capital
investment has U-en forced upon them
by Federal and State lgislatmes.
Wooden cars are Is-ing succeeded by
kteel curs and steel cars are being de
manded by the Government. Steel will
also have to be siilwtitutcd for iron in
car wheels und this alone means an ex
enditure of millions or dollars.
The future of the American railways
and the industries which they serve
Is dependent upon their ability to obtain
the funds necessary to provide the facili
ties which the material welfnie or the
nation demands.
In un uddress delivered ut Vale Uni
versity In 1009 the lion Charles A I'routy,
the present chairmuii ol the Interstate
Commerce Commission, said: "While we
can provide by legislation the sort or cars
which a railroad shall use and the rotes
which it shall impose, we cannot by legis
lation force one single dollar of private
capital into ruilwuy investment n gainst
its will "
Private capital is directed into invest
ment by the soundness of the security
and by the rate or return
The generation that succeeded the
civil wur built more railroads than the
country needed. Capitul rushed head
long into transportation projects until
the capacity for conveyance wns greatly
in excess of tho capacity for production
of the agricultural and manufacturing
industries. Then ensued the cutting und
slushing of railway rutes. The ferocity
of tho unrestrained competition led to
that condemnation or abuses which ob
scured to popular perception the just
needs or the railways, but which it is
hoped has waned sufficiently for the
people of this country to perceive that
the railways uro now in that condition
where if they cannot progress they must
go back, 'l'hey cannot grow unless they
are allowed Sufficient nourishment. That
regulation which was Intended to correct
abuses hau extended to the verge of suffo
cation. In the August number of the Herut
I'ntiliqut rl I'arliamentaire C. Colsoti
of the Frenoh Council of Statu writes us
follows of tho American railways: "It is
the initiative of the American companies
and the liberty of action which they for
a long time enjoyed that gave the railway
development of the United States its pro
digious rapidity und its marvellous adap
tation to modern' needs"; and then in
speaking of governmental control he
soys: "The more easily modern govern
mental agencies obey the mandates of
numerous and irresponsible voters the
more willingly they impede the working
of private enterprises that prosper un
der capable and energetic management,
because they sor vo the cause of progress,"
That M, Colson's criticism in not with
out foundation is shown by official sta
tistics collected and published y the
Government of the United States which
give'record of the comparative progress
of agriculture, manufactures and the
railways in tha United States. From 1900
to 1910 tho capital value of agriculture
Increased from $20,439,901,104 to $40,991,
449,090, or 100.5 per cont.; the capital value
of manufactures from I8.07S, 825,200 to
$18,428,270,000, or 105.2 per cent.; the cost
of road and equipment of tho railways
from $10,203,313,400 to $11,387,816,099, or
31.5 percent.
These are figures of value, not of capi
talization, Tho census for 1000 reported
the total capitalization of thn industrial
combinations then existing as over twice
as great as their capital valuo. A similar
compilation hus not been mado for the
census of 1910. In 1900 the net capltallza
t ion of the railways, the amount for which
they aro responsible to tho public was
somewhat los than tho cost of road and
equipment ; in 1910 it was almost Ident ically
tho wimo,
Iteporls or thp census show that tho
value of lhe railways increased from
1890 to 1904 but little more than half an
fast ns the valuo or nil property. The
increase in lhe aggregate capital of twenty
one principal manufacturing industries
from 1900 to 1910 was threp times as great
us tho increase in the cost of road and
equipment of the railways Tho increase,
in the capital value of agriculture in the
Western Slates has outstripped the in
crease in the value or the tailways instill
greater ratio than this.
The prererenoe shown by investors in
these lust ten years Tor agricultural and
manuracturing enterprises is therefore
nut due to any lack of demand for rail
ways. The piesent car shortage and con
gestion of traffic, which threatens to lie
come worse, is abundant evidence of the
justice of the usRertion so frequently made
by railway officers in the past few years
that they are unable to make provision
for the transportation needs of a popula
tion thnt is increasing ut the rate of nearly
two millions u year. It is their common
cry that they have not only lieen unable
to make the requisite extensions and In
creases in their facilities but that they
base not been able to tqieml as much aa
ought to have lieen exielided in order
properly to maintain their roadway,
their cats und locomotives. j
'I he pouring of money into mutitifac-
luring enterprises from looo to 1910, ac
cording to general acceptation resulted
in the provision of manufacturing es
tablishments in excess of tho demand for
manufactured products und therefore
hud u natural effect in reducing the net
return on capital. The gross value of the
products of inariufactiiie increased from
$11,100,927,000 in 1000 to $20,072,052,000 in
1010, while the rate or return fell from
17 113 per cent . in the foimer year to 12.011
per cent in the latter
From looo to lino the total operating
revenues of the railwuys increosed from
$1.4S7,U41,S14 to $.',7ut,0;7,t35. 'lhe In
crease of St 2 per cent, in the gross value
or tnuiuifMCtuicd products was accom
panied hy nn increase of 105.2 per cent,
in manufacturing capital The increase
ol h.l per cent in tho total operating reve
nues or the railways was accompanied by
an increase or only 34.5 per cent in their
cost or load und equipment Thisachieve
ment was made iossible by the more
powerful locomotives, larger cars, heavier
truiuloads und more efficient procedure
in general. Hut under all or this strain
that has completely exhausted their mar
gin ot elasticity, which the railways ought
always to preserve in order to meet ex
traordinary traffic pressure like that or
the present, they were enabled to increabe
their percentage or net returns on the
cost or road and equipment only from
4.0 per cent, to 5.7 per cent. This includes
not only the net return available for
dividends on stock hut that available for
interest on capital, and the railways are
unable to place bonds of the first class
In adequate amount even as low us 4 per
cent On their short time notes they must
niy 5 per cent and upward.
I'ollrrniHK In Trouble Until Ilrrn-
furernienta Couir In Ills Alii.
Complaints that n noisy gang was
disturbing the neighborhood of Uergen
nvenue and 152d street yesterdny morn
ing caused the Morrlsnnla police sta
tion to send Policeman Walsh to in
vestigate. The policeman picked out
one young man. who later gave his
name ns Alexander Obrlght of 037 Uer
gen avenue, us the gang leader and
told him to move. Obrlght refused,
nnd In this wns upheld by William
Schneider of 750 Cauldwell nvenne.
fleorge Olulght's father encouraged his
son to stick.
The policeman arrested Obrlght,
whereupon the gang rushed Walsh, nnd
took bis stick away. Walsh was backed
up against a blank wall fighting the.
gang for his prisoner whpn two other
cops appeared. Walsh then arrested
Schneider, who had his stick, and took
his two prisoners to the Morrlsanla
police court.
Obrlght was discharged with n repri
mand and Arthur ngauguld, 10 years
old, of SIS Melrose avenue, was testify
ing that Schneider had been peaceful
and orderly when Detective F.lson ap
peared with n wurrant for Kgangold,
In which the witness's mother charged
him with being wayward. Magistrate
Herbert pent Schneider to the work
house for ten days and sent Egangold
to the New York Iteformatory,
Mi no Is Hotel Clerk W'lin Interfere
When I'aeiirt Complain.,
PiTTHnuTifl, Oct. 13. -While attempting
to protect two girls from a masher in the
dining room or the I.oretm Hotel, West
Lncock street, North Sido, last midnight
.Samuel Curry, 32 years old, night clerk
at the hotel, was shot and died three
hours later
William K. Kooper, a decorator, Is
churged with murder
Two young women and their escorts
were at a table when Kooper, who had
been drinking, entered niul took a seat
nearby. His actions and his comments,
evidently Intended for one of tho young
women, prompjod one of tho escorts to
coBsplaiu to Curry.
Kooper drow a revolver and pointing
it at the girl who had been tho subject
of his remarks, fired. Curry sprang at
Kooper and tried to tuke tho weapon from
him, Another shot was fired and Curry
fell into a chair.
II, .1. Oalbaiir'a Aiiarlmrul Itubliril
of Clotlilitic niul I'nt Rlnaa.
Robert J. Culhano, a lawyer who hus
offices at W) Wall stroet and lives at 007
West lK4th Btreot, returned from the
country two weeks ago and found his
apartment had been entered by jimmying
the door. A cedar chest was broken
open and many of Mrs. Ciilhano'H gowns
wero stolen. Sideboard, dressers nnd
ho-.(i wore broken into nnd the contents
removed Most of tho silver, for which
the thiovcti wero apparently looking, had
lhe polloe aaid yesterday thoy had
never hoard or the case. r
1'. S. Kducators In Islands- Teach
Natives to Do BcBt for
Washington, Oct. 18. To make good
Filipinos, not good Americans, Is the
object of the system of education which
the United States Is conducting In thn
PhlllpplnpB, according to the report of
the department of education of the
Insular government received here to
"We ate not trying to make (food
Americans of them, but to make good
Flllplnra of them, nnd wp aro succeed
Ing. We havo established as generally
as possible throughout the Islands an
educational system which we hope will
give the greatest possible number of
the Islanders the kind of education
which will do them the greatest pos
sible good ns Islanders."
Such Is the statement of policy thtt
Is made.
More than half a million children are
now enrolled In the public schools of
the Philippine Islands. They aro being
taught nnd supervised hy more man
9,000 American and Filipino teachers,
with practical courses of study from the
primary grades up through tho profes
sional college of the Philippine Uni
versity. '
The greater part of the educational
system there is In the direction of
manual training. At a recent exhibit
more than 16,000 articles made by chil
dren In the public schools were shown.
These articles ranged from mats, hats
and boskets to fine sets of dining- room
furniture valued at $250 each. More
than 350,000 pupils are enrolled In the
vocational courses alone.
November 29 examinations will b
held under the direction of the United
.States Civil Service Commission to se
lect teachers for the Philippine schools.
Men and women are eligible.
S. Altntatt & (Un.
A large stock of lace pieces of French
origin Is on hand; also other foreiga laces
and lace motifs, from which selections may
be made.
Jftfltl A www, 34th onfc 3Mj Stxttts, Jfrni 9rk.
5 Kit POIitftU
1' '
The Best and Newest in
as well as the latest ideas in
are always found at the
old established house of
Now located in their new warerooms
14 and 16 East 33d Street
1:53, 440, 412 WEST filnt ST., SXvk!
The Provident Loan Society
Loans from $1 to $1000 upon pledge
of personal property.
One per cent
fraction thereof.
(l'e) W month
One-half tier cent. (!-'" cliaicevl
upon loans repaid within tso weeks
from date of making.
, i
I Carstairsll
I In time of medicinal need 1 1
H the neceuity for a whiskey II
of pure and palatable qual- 1 1
ity emphasizes the desira- 1 1
bility of havlnc a bottle of I I
Carstairs Rve in the house. II
A perfect blend. Thtnum- II
btrtd labtl shows our bottling. I
Joitpb Crnerl, n Mott mtttn. arrtatM
A p ,lt. .hllAll.a M KMAa T .. . .
.V, ...19 ..I JU1 111, " . UU.UW U.p, BE 1 1
Mutbtrrjr atrtft on BMurdsy vrntac. Va
held without ball for tho Inquest tty CoreaiT
John Caranafb. a clerk. 14. rear al4Uaa
told tbe police be llv4 on Third atj.i.
Manhattan, waa beld In $1,400 ball in tht
Manhattan avenue police court. Williams
hurt, for a hearlnr to-morrow on a chart
of eteftllna a sold watch and chain vih,i ,
at ISO from Robert Pratt of 176ft East Fortr
atthth atreet. BrooUr
BIG, bnoyant, bracing, this new
story aurgca along through stormy
teas of excitement to ita final anchor
age in the placid depths of lore. Yes,
love is here the strong, paaaiooatc
lore of a man for his heart's desire.
Revenge is here the hot. reeking re
venge of the Sicilian Mafia. Corrup
tion is here political corruption which
leads to riot. And through all these
scenes of violence and bloodshed there
flows a s eady stream of the genuine
Rex Beachhumor the humor of bril
liant phrase and ludicrous situation.
J.ike his other books ot tbe lawless
North, this new novel will quicken
every heart that pumps red blood, and
while in real life one does not care for
overmuch slaughter, yet in fiction the
guns boom softly, and we remember
only the tenderness of the meetings
of lovers as we close the book. -
lUustrated. Post 8vo;i JJ0 ntt."
parser Irotbers
Fourth Avenue cor. J5th Street
lildridge Street, cor. Rivington Street
Seventh Ave. bet. 48th & 49th Streets.
U'Miiuton Avenue cor. l.'4th &trcft.
Grand Street cor. Clinton Street.
Courtl.-tndt Avenue cor., 14Hth Street.
Graham Avenue cor. Upevoitf St.
Pitkin Avenue cor. KocVaway Ave.

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