CHAPTER II
THE PLIGHT OF THE RAILROAD
Remember that the Railroad is the big man in the American business family, the very head of the house, you may say. Sick or well, he dominates his brothers—even that cool, calculating fellow whom we delight to call “the Banking Interests.” All America pays toll to transportation. And, inasmuch as the steam railroads are its dominating form of transportation, the entire country hangs upon them. In the long run this country can prosper only when its railroads prosper.
Do you wish to dispute them? Before the facts your contention will not hold very long. According to the last census more than 1,700,000 persons were directly employed upon the steam railroads of the United States; some 2,400,000 in industries bearing directly upon the railroads—lumber, car and locomotive building, iron and steel production, and the mining of coal. It is a goodly number of folk whose livelihood, or a large portion of it, comes from an indirect relation to the railroad. It has been said, with a large degree of statistical accuracy, that one person in every ten in the United States derives his or her living from the railroad.
Perhaps you are not one of this great family of 10,500,000 persons—more folk than dwell in the great state of New York, including the second largest city upon the face of the world. Granted this—then probably you are one of the 10,000,000 savings-bank depositors in the United States. If you are, you are an indirect holder of railroad securities. The savings-banks of this country have many, many million dollars of their savings invested in railroad bonds. If you have not even a savings-bank account let me assume that you have a life-insurance policy; there are three life-insurance policy-holders for every savings-bank depositor. The value of every one of those 34,000,000 policies depends on the wealth that is locked up within the strong boxes of the life-insurance companies. And a very great proportion of that wealth is expressed in the stocks and bonds of railroad companies.
Try as you may, you cannot escape the dominance of the railroad in financial and industrial America. You might have neither savings-bank account nor insurance policy of any sort, yet the railroad would touch you constantly, through both your income and your outgo. If you were a city man, it would touch you not only in the prices that you pay for milk and meat and vegetables, but for the rent of your house or apartment. As I write, the entire East is panic-stricken for fear of a coal famine, faces steadily rising prices. The production at the mines, despite a scarcity of labor, has not been far from normal. But the railroad has failed in its part of the problem—the providing of sufficient cars to transport the coal from the mines to the consumer. It has been hard put to find cars to move the munitions of war from the interior to the seaboard towns. And the coal mines, because of the lack of railroad cars, have been unable to relieve the situation. So panic has resulted. Upon its heels have come similar, if somewhat lesser panics over the congestion and lack of delivery of foodstuffs—conditions which have been reflected in rises in the prices, if not in the value of most foods. These prices already have reached higher figures than at any time since the Civil War. Today they are nearly even with those which prevailed during the dark days of the sixties. And even if they are due directly to crop shortages and abnormal exports they still are a reflex of the railroad’s intimate touch with every man, woman, and child all the way across the land.
Sitting on the porch of his home at dusk, the farmer looks out over his broad acres, sees the great industrial aids that American invention has given him for the growing and the harvesting of his crops and forgets, perhaps, that on each of these mechanical devices he has paid a toll to the railroad. But when he looks to his wheatlands he must recall that it is the railroad that carries forth their crops—not only to the cities and towns of the United States, but to the bread-hungry land, far overseas. In those markets he competes with the wheat from lands so far distant that they seem like mere names wrenched from the pages of the geography book—Argentina, India, Australia. Because of this alone, it is nationally important that the steel highways which lead from our seaport gateways inland to the wheat and corn fields be kept healthy and efficient. They have become integral parts of that broad national policy which says that the United States is no longer isolated or insular but one of the mighty company of world nations.
Will you permit me for a moment to enlarge upon this point—this competition between our farmer of the West and the farmer of the Argentine Republic, of India, of Australia, and of the nations of the Baltic Sea in the market of the consuming nations of the world? As the wheat fields of each of these nations are nearer tidewater than the wheat fields of the United States, it long ago became necessary for our railroads to lower the transportation rate for grain in order that the American farmer might not become submerged in this great international competition. That this has been done, a single illustration will show: