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be able to convince them that at the close of the fiscal year 1914—the period upon which we are working—there were upon the roads of the United States 2,325,647 freight cars, a number which, although greatly added to since that date, has not yet been made adequate for the normal traffic demands of the country.[3] And a large proportion of these cars are both obsolete and inadequate. In 1914, out of the 2,325,647 freight cars some 347,000 were of a capacity of but 60,000 pounds or under—a type today considered obsolete by the most efficient operating man. A great majority of this latter number of cars was of all-wood construction. If the financial condition of the railroads had permitted, they doubtless would have been replaced long since with all-steel cars of far greater carrying capacity. This situation in the freight-car equipment is reflected in larger measure in the passenger-car and locomotive situation. There are railroads in the United States that today are compelled by the exigencies of a really serious situation to operate locomotives whose very condition is a menace not only to the men who must ride and operate them but also to the passengers in the trains they haul. The annual number of serious delays that may be charged to “engine failure” is appalling.[4]

      Now consider “equipment” in its broader sense. Expert railroaders will tell you that save in the case of the larger and more prosperous roads, there has been, in the course of the past seven or eight years, a serious depreciation in the maintenance of the way and structure of the railroad. In the prosperous years from 1901 to 1907 a very great improvement was made in this physical feature of the railroad. In the last of these years the American railroad reached the highest standard of physical perfection that it has ever known.

      In 1907 came the great panic. It made drastic economies immediately necessary. The railroads in their anxiety to meet, first, their dividends, and second, their interest obligations, pinched maintenance to the extreme limit. This was effective in two ways: In the first place the great preponderance of roads did not have earnings to make ordinary improvements, nor credit to provide the capital charge that would apply for improved rights of way, bridges, stations, freight houses, shops, and the like. Expert track engineers say that the loss in the maintenance of line during these lean years in Egypt that have just passed will average at least $2,000 a mile. Multiplied by a total of 245,000 miles of railroad line in the United States this means that the railroads are “back” in the upkeep of their lines alone some $491,788,000.[5]

      An expert railroader of my acquaintance takes this great figure—considerably exceeding the cost of the Panama Canal—adds to it as representing a carefully ascertained deficiency in the replacement of rolling stock an almost equal sum—$445,940,586. To these he further adds the dividends paid by the solvent roads out of their surpluses during the seven hard years—$784,563,406—and the depreciation of the value of the securities of the roads in bankruptcy during the same period—$719,528,328. The total of these four great items is $2,441,820,320—a sum instantly comparable with that of the national debt.

      There is, however, from a bookkeeping standpoint, at least, an offset against these losses in the equipment account of $394,736,506 which has, under a wise ruling of the Interstate Commerce Commission, been charged to expenses during the seven years and set up as a reserve to meet the accruing deficiency of equipment. However, there have been no restrictions as to the maintenance of this fund, or how it should be handled. The very prosperous lines—representing some 100,000 miles, or less than half the total mileage of the country—probably have their contribution to this depreciation fund as an asset. In the case of the poorer roads—speaking financially—it doubtless has been applied to other purposes, in order to help them maintain their bare existence. It has come home to these, and with great force, that the governing conditions which make their income fixed take little cognizance of the vast annual increases in material, in tax, and in labor costs. In rough figures—decidedly rough, it seems to me—it has been estimated that the losses of our railroads during the past ten years alone have amounted to approximately one-half the entire cost of the Civil War. That figure is impressive—it is little less than appalling.

      Even with the depreciation accounts of the American railroads deducted as an asset, we still have this awe-inspiring total of $2,000,000,000 confronting us. Some of this—the unpaid dividends of more than seven attenuated years—is water that will never come to the mill again. But the neglected rights of way, the ancient buildings, and the bridges needing rehabilitation on some of our railroads, the locomotives and the cars travel-racked and fairly shrieking for repairs, are all of them physical matters that must be set right before the sick man of American business can stand firmly on his feet once again. And when these things are done, the railroad will stand physically just where it stood from eight to nine years ago. And who can deny that it should stand nine years ahead of 1917 instead of nine years behind it?

CHAPTER III

       Table of Contents

      ORGANIZED LABOR—THE ENGINEER

      So much then for the physical condition of the railroad as it exists today—the condition that constantly is being reflected in its inability to handle the supertides of traffic that, in this memorable winter that ushers in 1917, are coming to its sidings and to the doors of its freight houses. Consider now the condition of its great human factor—its relations with its employees. I am sure that you will find this, in many ways, in quite as deplorable a condition as the track and physical equipment. It is a condition that steadily has grown worse, instead of better—and this despite a constant improvement in the quality of the individual men in railroad service.

      There is not an honest-speaking railroad executive all the way across the land who cannot tell you that he would a dozen times rather deal with the average individual railroader of today than with the average individual railroader of, let us say, a quarter of a century ago. With the railroader’s boss—his grand chief and any of the smaller chiefs—well, here is a far different matter. But there has been a steady improvement in the quality of railroaders—of every sort and degree.

      If you have traveled upon our steel pathways for twenty years or more you must have noticed that yourself. The transition of the rough-looking, rough-speaking, rough-thinking brakeman into the courteous trainman comes first to my mind. And if the old-time conductor with lantern on his arm has disappeared, there has appeared a diplomat in his stead, a gentleman with whom we are soon to become a little better acquainted. We still have railroad wrecks, some of them admittedly the fault of the engineer. But apparently we have ceased to have railroad wrecks due to the fact that there was a drunken man in the engine cab. The last serious wreck where this accusation was made was near Corning, New York, on the night of the Fourth of July, 1912. More than forty persons lost their lives in a rear-end collision and the railroad which paid the damages, both in money and in reputation, did its very best to follow up a suspicion in its mind that the engineer of the second train was drunk when he climbed into its engine cab. It was never able to prove that charge. And one of the best things that you may say about that extraordinarily well-organized union—the Brotherhood of Locomotive Engineers—has been its unceasing efforts to drive out drinking among its members. Its record along these lines is of unspotted cleanliness.

      Do you happen to know of Rule G, that stringent regulation in the standard rule books of the operating departments of the railroads of America, which is written not alone against the use of liquor by employees when on or off duty but also against their frequenting the places where liquor is sold? Time was when the abuse of Rule G sometimes was winked at, upon certain roads. That time has passed. Today it is perhaps the most stringently observed of all the manifold commandments in American railroading. And the influence of the Brotherhood of Locomotive Engineers has done much toward consummating that very end.

      A little while ago an engineer running on one of the soft-coal roads of West Virginia suspected one of his fellows in the engine cab of drinking. It disturbed him more than a little. Finally he went to the man.

      “Jim,” said he, in the course of their heart-to-heart talk, “you’ve simply got to cut out the stuff or—”

      “If I don’t, what?”

      “If you don’t I’m

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