Compensation of Railway Stockholders The purpose in quoting so extensively from the Wabash reports is to supply information that the reader can obtain in no other manner. The Interstate Commerce Commission in their volumes of statistics fail to show what part of the "operating expenses" go to additions to property. Poor's Manual fails to give this information, and the public press only hears the statement that "notwithstanding the great increase in gross earnings the operating expenses have been increased so that our stockholders are but little better off than during the hard times." The "poverty" of the stockholders may well be compared to that of the merchant who has substituted a six-story modern building for his old three-story building, paying for same with the profits of his sales. While the merchant's family may not have enjoyed the spending of the great profits of his sales, Dun and Bradstreet would have given him a much better rating in the business world-and his children might look forward with greater expectancy to that sad time when the head of the family passes to the better world. As evidence of how facts are juggled by those whose interest it is to conceal facts the following from the Financial Chronicle is reproduced: "While the public is impressed with long-continued increase in railway earnings, managers and investors are concerned in the steady increase in operating expenses and the consequent decrease in net earnings. Thus, for 106 roads summarized by the Financial Chronicle for November, with gross earnings of $106,144,000, comparison with 1901 shows an increase of $6,506,000 in earnings, an increase of $7,448,000 in operating expenses and a decrease of $941,000 in net earnings. For the eleven months to November 30, 103 roads, with an increase of $56,279,000 in earnings, show an increase of $57,525,000 in expenses, causing a reduction of $1,245,000 in net earnings. Some of the individual decreases are large: as, for November, the Pennsylvania System $1,086,000 and the Southern Pacific $465,000. A similar movement is indicated by a table in the New York Railroad Commission's report, for 21 principal roads, covering the three months ended on September 30, showing, compared with 1901, a decrease of $1,777,000 in gross earnings, an increase of $1,893,000 in operating expenses and a decrease of $3,670,000 in net earnings. It is to be remembered, also, that the increase in wages which is still expected by employes, if granted, will further increase operating expenses, and that very largely." Let us presume, for argument's sake, that the market value of all of the stock of a railway corporation represents the value of the railway. The "capital stock" of the Wabash Railway in 1895 was $52,000,000, and in 1901 the "capital stock" remained the same. This is exclusive of other liabilities, such as bonds, floating debt, etc. This $52,000,000 may be compared to the real estate, fixtures and stock of a merchant, while the bonds, etc., are similar to the merchant's "bills payable." This indebtedness has varied but little since the reorganization of the road in 1889. The following statement has been compiled from reliable authorities and shows the increase in market value of Wabash property owned by stockholders: This statement means that if a man had bought all of the ownership (stock) of the Wabash Railroad on May 2, 1895, he could have secured it for $5,665,000, and if he had held it until April 30, 1903, he could have sold it for $18,860,000, his profit being $13,195,000-and this does not include any money he might have received in dividends on stock during the period covered. Doubtlessly some railway companies have made a great deal more money out of the present prosperity, while others have not done so well. The Wabash may be taken as typical of the great progress made by all American railways. Another feature of the progress and prosperity of railways is the increased holdings of railway securities by the railway corporations. While such stocks and bonds are "liabilities," upon which dividends or interest is supposed to be paid, when owned by the railway companies themselves they become "assets," from which revenue is supposed to be collected. Concerning this matter the report of the Interstate Commerce Commission for 1901 says: "It is learned that of the aggregate amount of stocks and bonds outstanding on June 30, 1901, $2,205,497,900 were owned by railways in their corporate capacity, leaving $8,649,879,906 in the hands of investors other than railways. A comparison of these figures with the corresponding figures of the previous year shows that the railways of the country, during the year ending June 30, 1901, have increased their holding of corporate securities by $262,447,560. This figure results from the fact that the railways decreased their holding of bonds and increased their holding of stock, the decrease in the former case being $4,000,679, and the increase in the latter case being $266,448,239. These results are doubtless in part due to the reorganizations and consolidations that have taken place during the year. They indicate also, to some extent, the use which carriers have made of the surplus which an unusually successful year has placed at their disposal." Economic Management and Prosperity It is evident that the prosperity of railways is due to economic management and increased business. The principal features of the economic management have been: first, the reduction of wages of employes in train service in 1894, which, according to General Manager Hays' report, amounted to "7 to 10 per cent."; second, substitution of modern motive power and rolling stock for that formerly used, which made it possible to secure 50 per cent. greater service from train crews. During all of this prosperity of the owners of railways it is well not to overlook the share of prosperity that has come to the employes of railways; therefore the following: 1895. Total number of employes in United States. 785,034 1901. 1,071,169 $610,713,701 This statement means that in 1901 each railway employe, as an average, received $2.63 more for his services than in 1895. How the increased cost of living has affected the increased wealth of railway stockholders and employes it is not the purpose of this article to show. Plate VI-Nine and One-Half Inch Pump (Valve Action). Plate VI of the Westinghouse Series of the Locomotive Firemen's Magazine Educational Charts shows sectional and perspective views of the valve action of the steam cylinder, with piston making the upward stroke. Plate V (May Magazine) and Plate VI are identical, except that the former showed positions of the valves and the presence of live steam and exhaust steam on the downward stroke. Fig. 3, accompanying Plate V, is the same as Fig 3, accompanying Plate VI, and published herewith, except that the differential valves and the slide valve are shown at the right, instead of at the left, of their travel. w 85 83 When piston 65 completed the last downward stroke it pulled the reversing rod downward, which pulled reversing valve 72 downward in bushing 73 (compare Figs. 1 and 2 in Plates V and VI). The immediate result was the closing of port g, Fig. 2, and the exhausting of the steam from chamber D, out through passage h, ports h1 and f, passage f (Figs. 1 and 2), exhaust port d (Fig. 1) and out through exhaust passage d to the exhaust pipe of the pump. Fig. 3. 9-Inch Air Pump (Valve Action) As has already been explained, when steam is exhausted from chamber D, piston 77 being larger than piston 79, the steam pressure in chamber A forces the two valves and their connecting rod, and the slide valve 83 to the right. (Study Fig. 3 in connection with Figs. 1 and 2.) In Plate V the reversing valve 72 was at the upper end of its travel, which communicated live steam through port g and passage g1 to chamber D. In Plate VI the reversing valve 72 is at the lower end of its travel, which has closed this port and passage. In Plate V, Fig. 2, live steam is passing down through the ports and passage c into the upper end of the steam cylinder. This is because slide valve 83 is at the extreme left, uncovering port c'. In Plate VI, Fig. 2, exhaust steam is passing up Fig. 2, shows slide valve 83 at the extreme right, uncovering port b, and live steam is passing down from chamber A, through port b and passage b', to the lower end of the steam cylinder. In both Plates V and VI, Figs. 1, chamber E is connected through the small passage t with the exhaust passage f in bushing 75. As these plates show features not heretofore shown, attention is called to the chambers and passages J, K, L, M, N and O. In Plate V, live steam is shown in all of these passages, while in Plate VI exhaust steam is shown. This is because these passages are always in communication with the upper end of the steam cylinder through small round passage O in top cylinder head, Fig. 2; therefore, when there is live steam in upper end of steam cylinder it is also present in passages J, K, L, M, N and O, and when there is exhaust steam in upper end of cylinder there is also exhaust steam in these passages. As was explained in the May Magazine, chamber J is kept in communication with the upper end of steam cylinder in order that the reversing rod may be balanced and lubricated. The "Third Man" on an Engine. Railway and Locomotive Engineering takes issue with those who advocated legislation which would compel the presence of a third man on an engine, but as this excellent journal refers to all engines it is evident that the subject is not thoroughly understood, as the following from an editorial indicates: "There is at the present time an agitation in favor of seeking legislative enactment which will compel railroad companies to place a special lookout man on every engine, in addition to the regular engineer and fireman. This agitation is no doubt the natural result of the recent terrible railroad accidents, particularly the one on the tracks of the Central Railroad of New Jersey, in which, it is said, a caution and a stop signal were both disregarded. The fact that such a law, if passed, would entail additional expense on railroad companies may possibly make it even more attractive in the eyes of a certain section of the community. It is well, however, before any such regulation receive government sanction, to consider the question from all sides." The editorial then goes on to enumerate reasons why there should not be another man on an engine. The especial legislation in which all locomotive firemen, most trainmen, and the public are interested is a law that will compel railway companies that operate double-cab locomotives to place an additional "watchman," "lookout," or whatever the companies please to call him, in the front cab, so that in the event of the engineer falling asleep, suddenly becoming disabled or overlooking a danger signal, there might be some one present to save the train crew and passengers from disaster. This "third man" asked for by locomotive firemen, trainmen and the public is not for "every engine," as suggested by the journal already quoted, but only for those engines which have two cabs, and in which the engineer is the only man "on the head-end." For some reason, best known to themselves certain locomotive engineers strenuously oppose such legislation. For their especial benefit some official statistics will be quoted. by the Interstate Commerce Commission, known as "Bulletin No. 6," and which covers only the three months of October, November and December of 1902, a list of the "thirty-four prominent train accldents" are published. Of these thirtyfour accidents, ten (29 per cent.) were caused by mental failures of locomotive engineers. The following are the items reported by the Interstate Commerce Commission; the number of "item" being the same as listed in the thirty-four reported: Item 2.-Derailing switch; engineman asleep; he had been off duty fourteen hours, but had attended a funeral instead of taking rest. One person injured, $319 damage to property. Item 4.-Derailing switch; engineman asleep; he was killed. One person killed, $2,240 damage to property. Item 5.-Engineman saw a "dead" engine on sidetrack and by mistake took it for the head of a train which he was to meet. Two persons killed, five persons injured, $3,000 damage to property. Item 6. Crossing collision; engineman "lost his bearings;" on duty seventeen hours, $3,900 damage to property. Item 8.-Engineman fell asleep; on duty eight hours succeeding twelve hours' rest. Fireman (fourteen months' experience) also at fault. One person injured, $4.050 damage to property. Item 14.-Engineman did not heed red lights. Twenty-seven persons killed, fifteen persons injured, $6,889 damage to property. Item 16.-Engineman disregarded distant signal indicating "caution;" man of good record and experience; weather clear; signal equipment complete. person killed, twenty-eight persons injured, $9,000 damage to property. One Item 21.-Train passed automatic block signal indicating "stop." Engineman was asleep and fireman neglected to observe signals. Engineman and fireman of the second engine failed to detect the error, though rule required leading engineman to sound the whistle at each block signal. One person killed, $11,350 damage to property. Item 25.-11.40 p. m.; engineman lost his location; experience fifteen years; but on this division only four and one-half months. One person killed, five persons injured, $12,600 damage to property. signaled; engineman of seventeen years' Item 29.-Open draw; draw properly experience; on duty four hours, $17,000 damage to property. The list of "thirty-four prominent train accidents" were not selected with regard to causes but with regard to the damages which resulted, and we find that more than one-third of the thirty-four were caused by mental failure of the engineer, which could have been avoided by another man whose duty it was to look In the last report of accidents published out for danger, for in addition to the ten |