missions and enormous amounts paid for soliciting business tell the story so plainly that even Judge Reagan thinks his favorite section five (which helped to do the mischief) may be amended. The proposed law would remedy much of this. The railways would be benefited in a large class of expenses, which they are now obliged to maintain through being unable to unify and concentrate their business. Not only will the railways be satisfied with this, but the shippers who seek no individual advantage. At the annual meeting of the National Board of Trade held in Washington, January 1897, an important report of the Committee on Railroad Transportation was adopted, looking to a remedy through the medium of the Interstate Commerce Commission. Among others things

this report says:

"That the great majority of railroad managers and of shippers on railroads are sincerely desirous of remedying these unjust discriminations there can be no doubt; and, with the co-operation of this majority with the Interstate Commerce Commission, it would seem that they might be gradually eliminated, but, as a condition necessary thereto, railroads must be given the power to enforce their agreements upon each other, which they are now prohibited from doing by the prohibition of pooling in the Interstate Commerce Law. This law should be so amended that pooling under the authority and supervision of the Interstate Commerce Commission should be allowed."

The Interstate Commerce Commission has accomplished a good work, and it would seem to be wise to continue in the same direction. And the idea is emphasized, by reason of the fact that the railways, the representatives of the shippers, the officials of States having charge of railway matters, and the commission itself are substantially in accord on this point. There may be differences of detail but the bill to amend the Interstate Commerce Law now before Congress meets with the approval of nearly all conflicting interests. This proposed measure is practically the Patterson Bill, which passed Congress by a large majority and was approved by the committee

in the Senate two years ago. It was subsequently reported by the Interstate Commerce Committee of the Senate, but never reached a vote, on account of pressure of other business and a short session. The bill is in the interest of the public, the shipper, the railway employe, and the railway. It will also strengthen in many ways and make more effectual the work of the Interstate Commerce Commission. The public and the shippers will have a uniform, just rate, which will not discriminate against the smaller shippers and which cannot in any way become extortionate or unjust under the protection afforded by the bill. The railways, should this bill become a law, will thereunder obtain merely the lawful schedule rate, something they have not been able to maintain under the present law, because that rate is constantly fluctuating and generally in the interest of large shippers alone

Few realize that one mill or one-tenth of one cent per ton per mile additional upon the tonnage of 1895 would have yielded over $80,000,000 additional income. Thus the infinitesimal fraction of a dollar, the mill, is all that stands between the prosperity and insolvency of railways. That extra mill would give employment to 200,000 day laborers for twelve months, as they are badly needed on the tracks and road-beds, in the yards, and shops of our great railways. It would have given food and raiment to 800,000 human beings in all parts of the country during the year. The saving of that mill merely added to the millions of some of the great individual shippers. The farmer received no benefit from it, for his product must go through the temple bar of a shipper with " a rate." The small shipper gained nothing, for he paid the "schedule rate." It is important for the public to realize that it would have been far better to have entrusted this mill to the railways, not for safe keeping, but because they are the great distributers, not only of freight and passengers, but of money. Whether it be one mill or two, the railways must carn enough to enable them to keep pace with the times in furnishing all facilities to the public and carry on needed improvements upon the property.

As to what are just and reasonable rates on all compet

itive business, that would, under the proposed law, be subject to review by the Interstate Commerce Commission and by the courts. This would seem to be just and reasonable and a law which permits of an agreement for the purpose of maintaining fair and reasonable prices and of paying a living wage cannot be contrary to public policy. In fact, the measure should be so framed as to protect the public and the shipper against high rates and enable the railway companies to get the schedule rate to all. Our railways are entitled to a net earning that will put them on a solvent basis, open up the workshops and give employment to a larger number of men. In short, the railways want, as a popular president of a great system remarked the other day, "common justice and that of the commonest sort."

The Plight of the Railways.

BY ROBERT P. PORTER.

The latest general balance sheet of the railways of the United States gives us a total valuation of railway property close to twelve thousand millions of dollars, and over one hundred and eighty thousand miles of road. Next to our farms, which aggregate thirteen thousand millions, these great properties will form, at the close of the century, the most valuable assets of the republic. The capital invested in our manufactures is less than half that invested in railways, and yet the condition of our manufactures, if we may judge from the frequent tariff agitation, seems to command much more public attention. The construction of these great systems of transportation has played an important part, if not the most important part, in the progress of the nation during the last half century. By the extension of these railways, population has been distributed, large areas of country have been opened to cultivation, cities built, manufactures established, mines developed, foreign trade increased, and the varied products of our vast domain brought from tropical and frigid zones to the temperate region of densest population. In short, the laying of the track and the penetration of the locomotive have kept time with the building of the nation itself.

Within the last few weeks the Ways and Means Committee of Congress have granted hearings at Washington to those representing our several industries. In reading the published tes timony, one is struck with the deplorable accounts given of the condition of many branches of manufacture. Low tariff and cheap foreign labor have played havoc with American labor and production. This is undoubtedly true. And the remedy asked for is increased protection. A duty sufficient to en

able the American manufacturer to pay a living wage and compete with his foreign rivals. While not occupying the public mind to anything like the extent of the manufacturer, the American railroad is in as bad if not in a worse plight. If Congress would only extend its hearings to railways, the stories of recent tariff hearings could be repeated with emphasis on a larger and even more impressive scale. Loss of earnings, reduction of rates below the paying point, actual loss on passenger traffic, deterioration of roadbed, reduction in the number of employes, others working half time, receiverships, foreclosure sales, practically half of this enormous investment bringing no returns, and the blight of insolvency steadily settling down upon our entire system.

The losses and disasters arising from these conditions have been widespread and far-reaching. In the first place, it is undoubtedly true that in no other industry is so large a business carried on upon so small a banking account. A railway company is a great distributer, not only of passengers and freight, but of money. As fast as its earnings come in, they go out again. First, we have the army of direct employes, which reached nearly eight hundred and seventy-five thousand a few years ago, but which has been reduced fully one hundred thousand. With continued prosperity, our railway system. would have to-day furnished direct employment to at least one million employes. This, however, gives but an imperfect idea of the number employed indirectly, that is, in car shops and locomotive works, and equipment shops of all kinds, blast furnaces, rail mills, and a myriad industries dependent upon the railways for their prosperity. As the percentage of increase in equipment has been reduced from 10 per cent. in 1890, to an actual decrease in 1895, it may be safely assumed that thousands indirectly engaged have been thrown out of employment. A perusal of the statistics of railways as compiled by the United States Government shows conclusively that under existing conditions most of our railways are running behind, and the few that are apparently holding their own are far from hopeful for the future. Economical management is one thing,