ways. Witnesses claim that employees who are members of such departments often lose in independence, since they do not wish to forfeit their interest in the fund by striking or leaving employment. Mr. Cowen admits that on the Baltimore and Ohio Railroad the applicant for employment must consent to contribute to the relief department, although he says that this does not constitute compulsion, since no one is forced to apply for employment. It is also declared that the railways maintaining relief funds require those who accept payments from them to release the company from all further liability for damages. This practice is opposed strongly on the ground that the employees pay a full, and in some cases an exorbitant, rate for their insurance in the relief department, and that the receipt of money from the fund should not therefore be any bar to the collection of damages. It is admitted by Mr. Cowen that this requirement exists, at least on the Baltimore and Ohio, although he declares that the fact that the men have the right to sue for damages if they are willing to run the risk, relinquishing their claim upon the insurance fund, is a sufficient answer to complaints. The act of June 1, 1898, declares that the employer shall not be released from liability beyond the amount of his own contribution to the relief fund, but Mr. Cowen says that on the Baltimore and Ohio an absolute release is still required from those accepting relief from the fund. Most witnesses on this subject urge that the law of 1898 in these two regards should be made more stringent. SAFETY APPLIANCES AND ACCIDENTS. The United States act of 1893, requiring railways, on or before January 1, 1898, to equip their engines and cars with air brakes, automatic couplers, and proper handholds, was only partly complied with by the railways at that date, and an extension of two years was granted by action of the Interstate Commerce Commission. It appears from the testimony before the Industrial Commission, mostly taken before January 1, 1900, that the railways for the most part had met the requirements of the act, and there appears to be no general complaint. It is believed by witnesses, including several railway officers, that the use of these appliances will have a very material effect in decreasing injuries to employees. A few witnesses recommend that acts similar to that of 1893 should be passed by all of the States with reference to railways lying wholly within their borders.1 Report of accidents.-The members of the Interstate Commerce Commission think that railways should be required to report somewhat more in detail than at present concerning accidents, and this suggestion is upheld by representatives of the railway brotherhoods.2 OCEAN AND LAKE TRANSPORTATION. American merchant marine.-The Industrial Commission has not sought thus far to make a detailed investigation on the subject of measures for developing an American merchant marine. Several witnesses in connection with other investi gations of the commission have commented incidentally on the desirability of such measures. In the present investigation one witness, Mr. Neall, presents statistics showing the exceedingly small proportion of American ocean vessels, as compared with the total shipping of the world and as compared with the freight exported and imported by this country. The witness estimates that Americanowned vessels actually suitable for transoceanic traffic have not over 300,000 gross tons register out of more than 27,000,000 gross tons for the world's shipping. Our 1 Moseley, pp. 32, 39; Clark, p. 115; Arthur, p. 126; brotherhood officers, pp. 763, 767; Callaway, pp. 219, 220; Spencer, p. 268; Cowen, p. 308; Knapp, p. 131; Sargent, p. 93. 2 Moseley, pp. 37, 38; officers of brotherhoods, p. 763; Sargent, p. 93; Clark, p. 114; cf. Stickney, p. 456. American shipyards, he says, scarcely build any ordinary freight steamers, being entirely occupied with naval vessels and high-grade passenger vessels; and the cost of freight steamers here is very materially higher than abroad. Since he believes it would be impossible, even with the help of subsidies, for American shipyards to turn out within a reasonable time any large number of the kind of vessels specially needed, Mr. Neall advocates the passage of a law permitting Americans to buy vessels abroad and to place them under the American flag, these vessels to be prohibited from coastwise traffic.1 Condition of American seamen.-Only one witness, Mr. Furuseth, the secretary of the Sailors' Union of the Pacific, has been examined on this subject. He states the amendments to the navigation laws which are advocated by the Seamen's Union, and presents a detailed account of the existing conditions among seamen in defense of these demands. The chief proposals are that the practice of permitting sailors to make "allotments" of their wages in advance be prohibited on the ground that it promotes the evil of crimping; that masters be required to pay sailors the wages due at any port, so that they may quit employment and not be forced, as at present, to continue service for the full period of time agreed upon, usually 12 months; that the required air space in the forecastle for each sailor be increased; that the majority of the crew be given the right to demand a survey of the condition of the vessel to assure themselves of its safety; that a certain standard of skill and experience be established for "able seamen," to prevent the shipping of incompetent men, which not only depresses wages but endangers the safety of the vessel and increases the work and responsibility of the experienced men; and that there be required a standard number of men for vessels according to their tonnage and rigging, to prevent the common evil of undermanning.? Lake transportation.—A considerable amount of testimony was presented showing the magnitude of the traffic on the Great Lakes, the importance of its influence on rail rates, and the rapid increase of shipping and of traffic. No special legislation was advocated for furthering lake navigation, aside from general improvements of the waterways from time to time. Some witnesses, as we have seen, favor putting water carriers under the interstate-commerce act. Improvement of the Erie Canal and the construction of a ship canal from the lakes to the Mississippi are advocated by some witnesses.3 1 Neall, pp. 166–184. 2 Furuseth, pp. 686–709. Keep, pp. 710-724; Carter, pp. 578–582. TOPICAL DIGEST OF EVIDENCE. I. Capitalization, construction, and consolidation of railways.. A. Are American railways overcapitalized?. B. Effects of overcapitalization and government control A. Policy in fixing freight rates and influences affecting them. B. Are existing rates unreasonable?. III. Discriminations between individuals. A. Existence of discriminations.. B. Methods of discriminations. D. Effects of discrimination on combinations, etc. E. Remedies for discrimination.... IV. Discriminations between places. Long and short haul A. Existence and causes of place discriminations generally. B. Long and short haul discriminations generally. C. Specific cases of place discriminations.. D. Discriminating import rates... V. Export and domestic grain and flour rates. A. Existence of differences in rates.. B. Effect of differences on American millers. C. Are lower export rates justifiable?.. D. Are lower rates on grain than on flour justifiable?. C. Freight discriminations and allowances in favor of elevators. D. General explanation of business by elevator owners E. Effect of grain buying by elevators on prices to farmers. F. Effect on speculative prices..... G. Alleged discrimination by elevators as to quality of grain. C. General amendments proposed to interstate-commerce act D. Proposal to give final power over rates to Interstate Commerce Commission.. 110 112 114 B. Character of vessels; amount of tonnage.. J. Liability of railways for injuries to employees K. Relief funds and departments maintained by employers. L. General conditions of labor. Miscellaneous XIII. Lake transportation A. Volume and character of traffic. C. Ownership of vessels.. D. Passenger boats E. Freight rates and methods of business. F. Grain shipment-methods, routes, etc.. G. Lake Carriers' Association.. H. Improvement of lake navigation 152 156 158 160 160 160 161 161 162 163 164 164 I. Labor on lake vessels J. Canals. 165 166 XIV. Ocean transportation.. A. Different methods of shipment at different ports. C. American merchant marine and its encouragement XV. Miscellaneous evidence not relating to transportation. I. CAPITALIZATION, CONSTRUCTION, AND CONSOLIDATION OF RAILWAYS. A. Are American railways overcapitalized?-Very little evidence was submitted to prove that railways are at present overcapitalized, but that they are is implied in the testimony of those who favor Government restriction. See paragraph B, below. The subject was not investigated in detail by the Commission. Mr. CLEMENTS, a member of the commission, testifies that it is impossible to estimate even roughly what proportion of the $11,000,000,000 capitalization of the railways of the United States represents actual money cost. He knows that many roads are capitalized at at least twice the original investment. (160.) Mr. FISH, of the Illinois Central, presented a table comparing the changes in mileage, receipts, and capitalization of American railways from 1890 to 1898 with the corresponding changes in Great Britain. While the number of miles of railroad in the United States has increased 18.06 per cent during these eight years, the capitalization of our railways has increased only 14.64 per cent, the capitalization per mile of track remaining almost precisely the same. The gross receipts have increased 18.58 per cent, the gross receipts per mile having thus only very slightly increased, 0.45 per cent. In the United Kingdom, on the other hand, while the number of miles operated has increased 7.9 per cent since 1890, the total capitalization of railways has increased 26.41 per cent, the capitalization per mile 17.15 per cent, the total gross receipts 20.39 per cent, and the gross receipts per mile 11.57 per cent. The capitalization of American railways is $60,343 per mile; that of British railways (at $5 per pound) $261,895. The capitalization per mile in Great Britain has increased $38,345 since 1890. Although, on the whole, the English railways are better built than ours, there are many points in which ours excel. In regard to railways in the South in particular, Mr. Fish says that much of their property was destroyed during the war and their capital was thus lost. There was a considerable amount of inflation and overcapitalization, going as far as rascality, during the reconstruction period, but the water in the stock has since been wiped out by reorganization. Generally speaking, in fact, there has been a very great decrease in the fixed charges of American railways during the past ten years, even more from the reduction in the rate of interest than from reduction of capital. In most of the recent reorganizations bondholders have had to reduce their rate of interest from 7 to 3 or 4 per cent. (330–332.) Mr. FISH says, further, that the capital of the Illinois Central Railroad has been increased from $38,831,000 at the close of the war to about $186,000,000. This increase is partly accounted for by the purchase of additional lines, but still more by the thorough reconstruction and reequipment of the system. Thus the weight of rails has been greatly increased during the past 10 years. Added capital is secured by the sale of bonds or stocks, as the condition of the market makes most desirable. Bonds have for a long period been sold at better prices than those of any other railway. In 1895 3 per cent bonds were floated. Bonds have always been sold at par or but a little below par. Stock has never been issued below par. It is first offered to stockholders at that rate, and what is not taken by them has always been sold at par, except once, when a premium was secured. Besides improvements made with new capital, probably $20,000,000 of current earnings have been spent in making improvements. Moreover, there has been a very large natural increase in the value of the right of way and real estate of the Illinois Central, which has not been represented by added capitalization. An expert estimate by the mayor of Chicago has recently placed the value of the terminals of the railway in that city at $34,500,000, but the land stands on the books at probably $200,000. Early in the history of the railway large cash payments were made by the stockholders, and, although some of the stock was issued during the war on the basis of an inflated currency, there is absolutely no water in the present capitalization. |