« PreviousContinue »
501,066,681, indicating an increase, as compared with the year ending June 30, 1897, of 11,621,483. The number of passengers carried 1 mile during the year was 13,379,930,004, there being an increase of 1,122,990,357 as compared with the year previous. The increased density of passenger traffic is shown by the fact that in 1898 the number of passengers carried 1 mile per mile of line was 72,462, as compared with 66,874 for the previous year. The corresponding figure for 1893, however, was 83,809. The number of tons of freight carried during the year was 879,006,307, there being an increase of 137,300,361. The number of tons of freight carried 1 mile was 114,077,576,305, which, compared with the previous year, shows the large increase of 18,938,354,080. The number of tons of freight carried 1 mile per mile of line was 617,810, which is 98,731 greater than the corresponding item for the year preceding.
EARNINGS AND EXPENSES.
The gross earnings of the railways of the United States, covering an operated mileage of 184,648.26 miles, were $1,247,325,621 for the year ending June 30, 1898, being greater by $125,235,848 than the corresponding item for the fiscal year preceding. The operating expenses during the same period were $817,973,276, being an increase of $65,448,512 as compared with the year 1897. The items comprised in gross earnings from operation for the fiscal year under consideration were: Passenger revenue, $266,970,490; increase as compared with the previous year, $15,834,563. Mail, $34,608,352; increase, $853,886. Express, $25,908,075; increase, $1,007,009. Other earnings from passenger service, $7,224,000. Freight revenue, $876,727,719; increase, $103,878,405. Other earnings from freight service, $4,683,205; increase, $473,548. Other earnings from operation, including a few unclassified items, $31,203,780.
The operating expenses for the year were assigned as follows: Maintenance of way and structures, $173,314,958; increase as compared with the preceding year, $13,880,555. Maintenance of equipment, $142,624,862; increase, $19,862,504. Conducting transportation, $464,674,276; increase, $32,148,414. General expenses, $36,476,686; decrease, $4,583. The gross earnings averaged $6,755 per mile of line and operating expenses $4,430 per mile of line. These amounts are, respectively, $633 and $324 greater than the corresponding figures for 1897. The report contains a further analysis of the operating expenses of railways in the United States for the years 1895 to 1898, in accordance with the 53 accounts embraced in the prescribed classification of these expenses.
The income from operation—that is, the amount of gross earnings remaining after the deduction of operating expenses, commonly termed net earnings—was $429,352,345. This amount is $59,787,336 greater than it was for the preceding year ending June 30, 1897. The amount of income from other sources was $138,202,779. The following items are embraced in this amount: Income from lease of road, $95,471,678; dividends on stocks owned, $15,614,638; interest on bonds owned, $10,529,343, and miscellaneous income, $16,587,120. The total income of the railways, $567,555,124—that is, the income from operation and income from other sources—is the item from which fixed charges and other analogous items are to be deducted before reaching the amount available for dividends. Taking from this amount the total deductions from income, $427,235,703, leaves $140,319,421 as the net income for the year available for dividends or surplus. The total amount of dividends declared during the year, including $87,975, other payments from net income, was $96,240,864. It t efore appears that the surplus from the operations of the year was $44,078,557. An analysis of the total deductions from income, $427,235,703, mentioned above, shows that they were composed of the following items: Salaries and maintenance of organization, $443,325; interest accrued on funded debt, $246,126,691; interest on interest-bearing current liabilities, $7,073,953; rents paid for lease of road, $92,391,008; taxes, $43,828,224; permanentimprovements charged to income account, $6,847,905, and other deductions, $30,524,597.
ROADS OPERATED BY RECEIVERS.
On June 30, 1898, there were 94 roads in the hands of receivers, which operated a mileage of 12,744.95 miles, the mileage owned by these roads being 9,761.08. As compared with the year preceding these figures show a net decrease of 6,116.73 miles in mileage operated and of 5,133.49 miles in mileage owned. During the year in question 45 roads were removed from the control of receivers and for 11 roads receivers were appointed. Of the roads operated under receiverships on June 30, 1898, 16 had an operated mileage in excess of 300 miles, 13 between 100 and 300 miles, and 48 less than 100 miles. Much difficulty is experienced in obtaining complete returns in all cases for roads in the custody of the courts. Substantially complete figures, however, show that the amount of capital stock of railways under receivership on June 30, 1898, was $264,137,371; of funded debt, $322,892,691, and of current liabilities, $74,545,256. A comparison with figures for the previous year indicates that there was a decrease in the capital stock represented by railways of this class of $221,927,239, and in funded debt of $208,515,099.
The total number of casualties to persons on account of railway accidents during the year ending June 30, 1898, was 47,741. The aggregate number of persons killed as a result of railway accidents during the year was 6,859, and the number injured was 40,882. Of railway employees, 1,958 were killed and 31,761 were injured during the year covered by this report. With respect to the three general classes of employees, casualties were divided as follows: Trainmen, 1,141 killed, 15,645 injured; switchmen, flagmen, and watchmen, 242 killed, 2,677 injured; other employees, 575 killed, 13,439 injured. The casualties to employees resulting from coupling and uncoupling cars were-persons killed, 279; injured, 6,988. The corresponding figures for the preceding year were—killed, 214; injured, 6,283. The casualties from coupling and uncoupling cars are assigned as follows: Trainmen—killed, 182; injured, 5,290. Switchmen, flagmen, and watchmen—killed, 90; injured, 1,486. Other employees—killed, 7; injured, 212. The casualties resulting from falling from trains and engines are assigned as follows: Trainmen—killed, 356; injured, 2,979. Switchmen, flagmen, and watchmen—killed, 50; injured, 359. Other employees—killed, 67; injured, 521. The casualties to the same three groups of employees caused by collisions and derailments were as follows: Trainmen—killed, 262; injured, 1,367. Switchmen, flagmen, and watchmen—killed, 13; injured, 69. Other employees—killed, 38; injured, 367. The number of passengers killed during the year was 221 and the number injured was 2,945. Corresponding figures for the previous year were 222 killed and 2,795 injured. In consequence of collisions and derailments 72 passengers were killed and 1,134 passengers were injured during the year embraced by this report. The total number of persons, other than employees and passengers, killed was 4,680; injured, 6,176. These figures include casualties to persons classed as trespassers, of whom 4,063 were killed and 4,749 were injured. The summaries containing the ratio of casualties show that 1 out of every 447 employees was killed and 1 out of every 28 employees was injured. With reference to trainmen—including in the term enginemen, firemen, conductors, and other trainmen—it is shown that 1 was killed for every 150 employed and 1 was injured for every 11 employed. One passenger was killed for every 2,267,270 carried and 1 injured for every 170,141 carried. Ratios based upon the number of miles traveled, however, show that 60,542,670 passenger-miles were accomplished for each passenger killed and 4,543,270 passenger-miles accomplished for each person injured.
In the conclusion of his report the statistician repeats his previous recommendations to the effect that reports should be secured from express companies engaged in interstate traffic; that reports should be secured from corporations and companies owning rolling stock which is used in interstate traffic; and also special reports from corporations and companies owning depot property, stock yards, elevators, and the like, and that reports should be secured from carriers by water, so far as their business is interstate traffic. It is further stated that nothing has occurred in the administration of the statistical division of the Commission to weaken the confidence expressed in former reports in the proposal that there should be established under the jurisdiction of the Commission a bureau of statistics and accounts, which shall have as its chief purpose the establishment of a uniform system of accounts for the carriers, and that it would be desirable also, should the Commission see fit, to provide for a monthly report of the earnings and expenses of operating railways.
EARNINGS OF RAILWAY PROPERTY.
It is the design of the following statement to show the financial results of the railways of the country, considered as a single system, for the year ending June 30, 1898. It excludes all duplications of charges incident to the contractual relations of corporations and presents the earnings and expenditures of railways in a clear and simple manner. It is submitted without comment and for the information of Congress.
Income account of the railways of the United States, considered as a system, for the year ending June 30, 1898.
Gross earnings from operation. -------------------. $1,247, 325,621
PRELIMINARY REPORT ON THE INCOME AND EXPENDITURES OF RAILWAYS FOR THE YEAR ENDING JUNE 30, 1899.
The “Preliminary report on the income account of railways in the United States for the year ending June 30, 1899,” will be found in Appendix F. It presents in a concise manner the results of the operations of the railways during the past fiscal year.
In this report will be found the returns from 691 lines, being the number for which returns were made to the Commission prior to November 24. The mileage covered is 185,245.80 miles, being 597.54 miles in excess of the mileage the operation of which was covered in the final report for the year ending June 30, 1898. It is estimated that this preliminary report covers 98 per cent of the aggregate mileage in operation at the close of the last fiscal year.
The total gross earnings of the railways included in this preliminary report during the year ending June 30, 1899, were $1,307,253,484. Compared with the figures submitted in the final report for the year ending June 30, 1898, it appears that the gross earnings for the year under consideration were $59,927,863 in excess of those of the previous year. The operating expenses for the year covered by this report were $852,428,105, being an increase, as compared with the operating expenses declared in the final report of the previous year, of $34,454,829. The net income from operations during the year was $454,825,379. This is the sum from which interest on bonds, taxes, permanent improvements charged to income account, dividends, and other analogous items must be taken.
A significant fact disclosed by this preliminary report is that the . increase in passenger earnings during the present year, when compared with the previous year, is relatively greater, though not absolutely greater, than the increase in freight earnings, a fact of considerable significance to one who is studying the effect of a return of prosperity upon this branch of the country’s business.
The corporation surplus arising from the operation of railways during the year ending June 30, 1899, was $50,768,209. When it is remembered that the year ending June 30, 1895, showed a deficit of $31,075,030, the financial betterment of the railways of the country may be properly appreciated. The period covered by this preliminary report is the first for several years which shows a surplus for each of the territorial groups of railways. The dividends declared by operating companies during the year ending June 30, 1899, were $82,214,820, a figure considerably in excess of the dividends declared during the previous year. It must be remembered that this figure does not include the dividends paid through the agency of subsidiary lines. Inasmuch, however, as this class of dividends is nearly constant year by year, on account of the fact that they are commonly guaranteed in the form of a lease or of a rental contract, the fact that the dividends declared by operating roads are nearly if not quite seventeen millions of dollars in excess of those declared by the roads in the previous year may be accepted as a fair indication of the increased returns to the holders of railway stocks.
H. Doc. 298 5