| From the Richmond Whig |
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| January 5, 1865 |
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| The privilege of grumbling is among the luxuries, if
not the necessities, of the so-called Anglo-Saxon race. Your true Briton
is never so well satisfied as when he has something to complain of; and
his descendants on these shores have fully inherited this trait. It is
fortunate that this disposition generally expends itself against public
men and their management of public affairs, otherwise the number of
personal controversies and collisions that must result would ruin
utterly the peace of society. Corporations, especially, are the favorite
theme of criticism, censure and denunciation, and the public is for the
most part a pleased spectator of all the blows inflicted on them. |
| Aware of this fact, we suppose, we suppose, the
railroad managers have not thought it worth while to defend themselves
against the frequent arraignments made of their patriotism, public
spirit and liberality, though we are inclined to believe that there are
few of the agencies that minister to the needs of the times and the
convenience of the people, that could show if better record than the
railroad companies, in the severe ordeal through which we have been
passing for nearly four years. We speak more particularly of the
railroads of Virginia, not having had opportunities for observing their
management and operations in other States. We remember that they came
forward with great promptness, at the beginning of our troubles, to the
assistance of the authorities in transporting troops, munitions,
supplies, mails, &c., on terms that evinced the absence of a desire to
profit by the public needs that was not so noticeable and has not been
as lasting in other quarters. To the present day, we believe, they carry
the mails without any increase of compensation, though their expenses in
many particulars have increased a hundred fold; and their charges for
Government transportation generally are out of all proportion less than
the increased cost of working the roads. The same may be said of their
charges against citizens, though in less degree. Before the war the
rates of these companies were generally acquiesced in a reasonable, with
reference to the prices of the productions of the country. The farmer
was willing to pay the value of a bushel of corn for travelling
twenty-five miles, estimating his fare at four cents a mile and his corn
at one dollar a bushel. At the rates now charged, the farmer can travel
more than one hundred miles for the market value of a bushel of corn.
About the same proportion, we believe, holds god as to freights. We
fancy that as to fare and freight, the companies would be glad to
compromise with their pardons by accepting one-half former rates, it
paid in the production of the country, at peace prices. |
| Railroads can scarcely now be regarded as private
enterprises or for private convenience. They constitute a part, and a
most material part, of the public defences. If our people do not regard
them, as important agencies in our defence and in the conquest of our
independence, there can be no doubt of the estimation in which they are
held by the enemy. Their frequent and determined attempts to destroy
them leave no doubt on this point. It becomes, therefore, a question of
moment, whether the public may not do more good, and better promote
their own interests, by loss of complaint and fault-finding, and more of
encouragement and help to these great allies in our struggle for life
and liberty. The roadway and superstructure, the rolling stock and
machinery of every in the Confederacy are in a serious state of
dilapidation. It will require a large increase of their charges, and a
liberal application of their receipts, to sustain them in inclement
condition. Does the Government properly appreciate this fact in the
compensation it allows for the services of the railroads? Are our
citizens willing to add to the sums they pay an advance proportional to
the increased prices they receive for the articles transmitted over the
roads? These are questions worth considering; for it is certain that by
this means or some other these roads must br kept up, or the public
interests must suffer disastrously. |
| In 1860 the Virginia roads charged, as we have
indicated, from 4 to 5 cents per mile for passengers, and from 6 to 8
cents per ton per mile for freight. These prices enabled the companies
to keep up their roads, and a few of them could declare dividends from 5
to 7 per cent. The roads were doubtless worked at a minimum of expense
in most cases, as labor was easily obtained and supplies almost forced
upon them at the lowest rates. These companies at the beginning of the
war undertook to carry Government passengers and freight at less than
half these rates, and, owing to the increased amount of travel, did a
fine business in the first year of the war. Repairs, it is true, were
not fully kept up, as most persons thought the war would soon be over,
and that such work could then be done at the old prices. But as the war
continued the prices of supplies advanced, labor became scarce and high,
and the companies were compelled to advance their rates, still, however
neglecting repairs in everything which could be postponed. At this date
the Virginia companies are charging individuals from 20 to 25 cents per
mile for passengers, and from 60 to 80 cents per ton per mile freight,
and about half these rates to the Government. An average would probably
show an increase of about three times the old rate for travel and five
times the old rate for freight, the great bulk of transportation being
on Government account. These are the railroad charges at present. Let us
see what the companies are paying. |
| One month's supply of certain articles of home
production on one of the Virginia roads, a list of which has been
furnished us, is as follows: |
| |
|
Cost in 1860 |
|
Cost at present |
| 5,390 |
lbs bacon, at |
11c |
$592.90 |
|
$7 |
$37,730 |
| 879 1/2 |
bushels meal, at |
80c |
762 |
|
$30 |
26,325 |
| 29 |
suits clothing |
$15 |
435 |
|
$350 |
16,150 |
| 29 |
hats and blankets |
$4 |
116 |
|
$60 |
1,740 |
| 116 |
pair shoes |
$1.25 |
145 |
|
$60 |
6,960 |
| 10 |
tons hay |
$15 |
150 |
|
$350 |
3,600 |
| 2,000 |
lbs. tallow and grease |
12c |
240 |
|
$9 1/2 |
19,000 |
| 30,000 |
lbs. iron |
4c |
1,200 |
|
1 1/4 |
37,600 |
| |
|
|
$3,580.90 |
|
|
$142,905 |
|
| The monthly expenses of this road in 1860 were about
$23,000, of which probably $10,000 were spent in supplies and the rest
in wages, salaries, &c. The articles enumerated above are therefore
about one-third the value of the supplies which were used and thought
necessary in 1860. It will be observed that none of the articles
mentioned are purchased abroad, and bear exceptional values, owing to
the risk of capture, and therefore they may be assumed as a low average
of the cost of all materials to Railroad companies. |
| Here, then, are the facts. The public is charging this
Railroad company at least forty prices for necessary supplies -- the
Company is charging the public, including the government, five prices,
and excluding the government, five prices for passengers and ten prices
for freight. Dividing the passenger fare by forty, the company is
carrying passengers at half a cent per mile and freight at less than two
cents -- and, including government transportation, passengers are
carried at three and a half mills and freight at one cent -- that is, if
prices are measured by the cost of supplies. What other interest can
show such a record as this? Manufacturers of all kinds, in cotton and
wool, in iron and wood, are charging fully up to the increased prices of
produce! |
| But, it is charged that Railroad Companies have made
enormous dividends. Manufacturing Companies have made much larger; so
has the farming interest, and this seems to be thought just and proper.
But some Railroad Companies have only declared the usual dividend made
before the war, and those which have done more than this have probably
done it at the expense of capital or by neglect of repairs. Our roads
are wearing out, and becoming less and less efficient. Had they been
kept in as good condition as they were in 1860, very few, if any, would
have had any surplus to declare dividends upon. Let us illustrate this
from one item of repairs which is known to all, that of the rails. It
will not be pretended that the Companies have purchased iron for their
tracks, and yet nearly four years have passed since the war began. This
is at least one-fourth of the life of railroad iron. One-fourth of our
railroad iron is gone. This is no over-statement of the case. If the war
continues, this iron must be replaced. It is necessary to replace some
of it now. What will it cost? Ordinary castings are $1 per lb., rails
could scarcely be made at less than 75 cents. Deducting the value of old
material, the necessary amount of iron for repairs, say 20 tons per
mile, could not be obtained (if labor could be had to reroll it for less
than $17,000, and we suppose it would actually cost $25,000. A road of
100 miles is at this day in debt for this article alone from $1,700,000
to $2,500,000, and if depreciation in rolling stock and in buildings and
fixtures were accounted for, this amount would probably be double the
former sums. If the war continues, the Companies will be forced to
expend these sums, or the Confederacy will loose the only means of
transportation left; at least between distant points. |
| This is a subject deserving the attention of statesmen.
A wrong system has hitherto been pursued. These roads are of vital
importance, and should be kept up, nay, improved. Had our means of
transportation been kept up, it is doubtful whether the prices of
supplies would have been so great and our currency would be in a
healthier condition. The Railroad Companies should have been paid
liberally, and then forced to expend the money in the improvements of
their roads. This could easily have been done by restricting the
dividends and compelling the Companies to pay over any surplus into the
public treasury. Every man necessary to the repairs should be allowed
them, and if this system could be inaugurated even now, there could be
much improvement made, and the public should be the gainer more than the
Companies. This cannot be done with the present rates, and the present
practice of the Government and spirit of the people. |
| What hardship can there be in compelling a manufacturer
or a producer of any sort to pay to the railroad companies a price for
freight or fare corresponding with the advance in his own productions?
If it required five bushels of corn to pay the fare of a passenger in
1860, why should half a bushel pay it now? If it required 30 lbs. of
tallow or bacon then, why should the railroad be restricted to a charge
equal to the cost of 2 or 3 lbs? These are the rates now charged, and
the companies are called extortioners! The truth is the companies have
been the last to raise their prices -- ad only when necessity has
compelled the step. We do not hesitate to say that a further advance is
necessary -- and that unless money and labor are put at the service of
the railroad companies, and they are compelled to use them, the time is
not distant when they will be found inadequate for the transportation
required of them. Some persons think that tme has already arrived. |
| Let this subject be examined candidly and fairly. It is
one of great importance and should not be trifled with. |
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