ECONOMIC RESULTS OF EARLY RAILWAYS.
PREVENTION OF ICE AND FRESHET BLOCKADES.
IT required years of continuous improvements to convert railways
into formidable competitors of water routes as cheap freight carriers
of bulky products over long distances. At the outset they were
scarcely expected to assume such a function. When they carried
cheap and bulky articles at all it was usually only over comparatively
short distances to an adjacent canal, river, or seaport. They
were, however, considered very desirable for passenger traffic
over the rapidly increasing interior routes, for the movement
of freight which required rapid transit, and also for the continuation
of all classes of freight movements during winter months when
the rivers and canals were closed by ice, or when freshets damaged
canals, and the temporary uselessness of water routes caused great
scarcity of necessary articles. A vivid picture of the nature
of some of the distress and inconvenience which railways were
expected to diminish, and which they have practically abolished,
is furnished in an article advocating the construction of the
Erie Railroad, published in the Railroad Journal in January, 1832.
It, says: "It would prevent a recurrence of the state of
things which now exists in the city of New York. There would not
then be, as there now are, thousands of barrels of flour and other
kinds of produce in proportion, frozen up in canal boats and in
sloops on the Hudson; salt would not be now selling in Albany
for $2.50 per bushel, and pork at $2 per hundred for want of salt
to save it, whilst pork is worth from $5 to $7 in this city. Coal
would not then sell here for $15 or $16 per ton; nor oak wood
at $9, and hickory at $13 per cord, as has been the case for two
or three weeks past, if railroads were in general use; but all
kinds of business would move on regularly and be more equally
divided throughout the year. Produce could come to market as well
in January as in July; and the farmer would not be obliged, in
order to get his crop to market in the fall, to neglect preparing
for the next."
INCREASE OF THE VALUE OF REAL ESTATE.
The most important of all the results of the construction of
railways cannot be stated with absolute accuracy, inasmuch as
they consist of the increase of population at given points, advances
in the price of property belonging to private owners, and development
of new enterprises. Railways are only benefited incidentally by
these advances through the increase in traffic they produce, while
many individuals are enriched, and the market value of lands at
terminal points and districts traversed is greatly enhanced. One
of the leading arguments urged in favor of state aid to railways
was to the effect that, however unprofitable such enterprises
would be to their owners, they were certain to greatly increase
the value of land, and that all the land-owners benefited should,
therefore, be obliged to indirectly assume some of the risks of
such undertakings. There is no doubt that the cash value of the
property of the entire country has been advanced by railways to
a sum that very greatly exceeds the cost of their construction,
and it has unfortunately happened that such gains of land-owners
and citizens have often occurred on lines that were very unprofitable
to stockholders. In other words, an expenditure of a few billions
of dollars for railways has benefited other persons, who have
made no important investments in the securities of such enterprises,
to the extent of many more billions of dollars.
A few of the early railway reports make interesting references
to the increase in the value of the districts traversed, which
are presumably typical of similar results in nearly all regions
in which railways have been constructed. The report of the Georgia
Central, dated November 1st, 1839, for instance, says: "In
every case where a sale of real estate has taken place near the
line, since the commencement of the work, the price has been much
advanced, and in some cases to many times the amount that would
have been demanded before the road was projected. In some instances
the amount paid to the proprietor of the land for pine timber
for the construction of the road has exceeded the price that the
entire tract would have sold for three years ago. In the absence
of more extensive experience as to the effect of the road on the
value of lands in its vicinity, that of others similarly situated
may with propriety be invoked to aid us in our conclusions."
The president of the South Carolina Railroad Company, in his semi-annual
report of July 10th, 1837, says: "To give some idea of the
advantages derived by those not immediately connected with the
company, by the passage of the road through so great an extent
of pine barren, a moderate estimate has been made of the additional
value of these lands since the road was located, and it has been
found that the advance within a mile of the road, and beyond the
influence of the towns at each end, not including anything within
fifteen miles of either extremity, has been equal to the cost
of the original construction of the whole road." These
statements were but forerunners of many much more remarkable advances
in value of real estate in various portions of the Union which
logically followed the construction of railways.
PASSENGER TRAFFIC.
The facilities furnished by railways were at first much more
fully appreciated by travelers than by transporters. The novelty
and unprecedented rapidity of journeys made in cars drawn by a
locomotive, or even cars drawn by horses on a railway, presented
so many elements of attractiveness that some persons traveled
considerable distances by the old methods for the express purpose
of securing an opportunity to ride a short distance on a railroad.
All journeys that could be made by this new and popular mode were
usually made in cars, even when they were over routes which necessitated
frequent changes to stages, steamboats, or canal boats. Short
railway links, which were steadily growing in length and importance
formed parts of all the great thoroughfares.
The extent to which the old and new systems were intermingled,
and the relative comfort and advantages of each, in 1839, is indicated
by a statement compiled in January, 1840, by a foreign tourist
who had made journeys aggregating 10,330 miles in length, during
intervals between December 24th, 1838, and January 14th, 1840.
He states that he made 175 separate journeys, and that he had
not met with a single accident of the smallest kind. He compiled
the following tabular statement.
In commenting upon these journeys the author said: "The
speed upon railroads is 50 per cent. greater than that of steamboats,
to which I have, however, to remark, that the passage in steamboats
upon rivers was nearly exclusively up stream. The speed upon common
roads is less than one-third of that on railroads, the speed on
canal boats only one-fourth. The average speed on the whole voyage,
which is obtained by dividing the number of miles traveled by
the time of motion, was 7½ miles, or half the speed on
railroads. The fare on steamboats and canal boats includes board,
and is, therefore, the cheapest, the stage fares are 40 per cent.
higher than the railroad charges, and the average rate per mile
for the whole voyage was 5-and-eight-tenths cents."
The average speed of all American passenger trains, exclusive
of stoppages, at the period mentioned, is probably stated with
approximate accuracy in the record given above of 15 miles per
hour. On some roads considerably higher speed was attained. A
southern railway report speaks of a rate of 22 miles per hour
having been maintained for a considerable period, but on account
of the extra expenses necessitated, especially in repairs to locomotives,
this rate was reduced to 17 miles per hour. Officers of various
other roads respectively speak of passenger trains being run at
the rate of 18, 20, and 25 miles per hour. David Matthews, superintendent
of engines and machinery on the Utica and Schenectady, said in
1839: "We are five hours crossing the road, eighty miles,
including fifteen stoppages."
Of speed on the Columbia and Philadelphia, for the year ending
October 31st, 1837, its superintendent, Andrew Mehaffy, in his
annual report to the state of Pennsylvania, said:
"It is not denied that some discontent has existed at the
low rate of speed on the road. But when it is known that the trip
of 82 miles is now made in precisely the same length of time (viz.,
six and a half hours, including all stoppages consequent to taking
in fuel and water) as when a high rate was permitted, the objection
falls to the ground."
This rate of speed was a trifle more than 12.61 miles per hour.
Mr. Mehaffy proceeds to say:
"Within the last month the undersigned visited some of the
most frequented roads in this part of the Union, for the purpose
of contrasting their operations and regulations with the one under
his charge, and the result, as far as speed is concerned, was
decidedly such as to convince him of the propriety of the present
management. Without wishing to disparage any, he is satisfied
that, though more parade may be made by others, as great a degree
of safety is not accomplished, nor as great an amount of work
done."
On American, as well as the new foreign roads, the usual result
of a decided increase in the number of persons who traveled over
the various routes, after railway operations commenced, was noticed,
but even with these gains the total number of passengers was comparatively
small.
REGULATION OF FARES.
In contrast with the amount of business transacted on corresponding
lines at the present day, the passenger receipts seem insignificant,
but the development on some lines was sufficiently rapid to exceed
the expectations of the projectors, and where the results were
disappointing a remedy was sought in some localities in a reduction
of fares, and in others in an increase of the authorized charges.
The general drift with New England lines was in the first of these
directions, and with some of the southern lines towards the second.
In March, 1840, the legislature of Virginia permitted the Petersburg
road to advance the price of passage to 8 cents per mile. Similar
advances had been authorized in other Southern states, but the
wisdom of enforcing them was in some cases questioned. For instance,
a report of the Louisville, Cincinnati and Charleston (the temporary
successor of the South Carolina), published in 1840, states that
there was "a feeling adverse to the increased charge on passengers
between Charleston and Hamburg, authorized by an act of the South
Carolina legislature, and it is very questionable bow far the
higher rates now exacted have contributed to an augmentation of
income. The reports show 4,000 passengers less this, as compared
with the previous year, and the reports on the Georgia road exhibit
nearly the same deficiency. . . . To a certain extent, reduction
of the cost of freight and travel does stimulate to increase of
receipts and of income. Thus it has been ascertained from calculation
that a locomotive, with power to convey 200 passengers, can traverse
a railroad at a cost of $1 per mile, or half a cent to each passenger,
provided the whole number could always be obtained. Two hundred
passengers, therefore, at $5, or even $3, to Hamburg, one-half
or even one-third of the present charge, would be more remunerative
to the share owners than the present daily average of some twenty-five
or thirty passengers at $10 each." This fare of $10 was at
about the rate of 7-and-three-tenths cents per mile.
A report of the superintendent of the Philadelphia and Columbia
Railroad for the year ending October 31st, 1837, states that at
that time the charges for passengers, per mile, on the roads named
below was as follows: Baltimore and Ohio, 3 cents; Baltimore and
Washington, 6; Portsmouth and Roanoke, 6; Boston and Providence,
5; Boston and Lowell, 3½; Mohawk and Hudson, 5; Petersburg,
5.
THE HORSE-POWER RAILWAYS.
The first stage of railway development occurred on lines built
with the expectation that they would be operated with horse power,
as they were at the outset, leaving the question whether it should
be supplanted by locomotives to be determined by the subsequent
course of events. Before the money necessary to construct these
railways could be raised, either by companies or states, it was
requisite that the utility of such works should be demonstrated
even if locomotives were never used upon them. There was, accordingly,
a considerable amount of discussion of this subject, and many
conflicting statements were made, relating to what horses could
do or could not do, on railways, and the differences between the
practical efficiency of horse power as applied to turnpikes, railways,
and canals. The leading idea advanced by champions of the iron
tracks hinged on implications of the truism that they diminished
friction to an extent that very greatly reduced the cost of movement.
Perhaps none of these publications presented the issues involved
in this controversy, in a brief space, and the
COMPARATIVE COST OF DIFFERENT METHODS,
as they were then understood, so clearly as the following extract
from a report of the board of canal commissioners, of Pennsylvania,
dated December 15th, 1831:
"To counteract the wild speculation of visionary men, and
to allay the honest fears and prejudices of many of our citizens,
who have been induced to believe that railroads are better than
canals, and consequently that for the last six years the efforts
of our state to achieve a mighty improvement have been misdirected,
the canal commissioners deem it to be their duty to advert to
a few facts which will exhibit the comparative value of the two
modes of improvement for the purpose of carrying heavy articles
cheaply to market, in a distinct point of view.
Flour is now carried by the canal to Philadelphia from Lewistown,
211 miles, for 62½ cents, and from Harrisburg, 150 miles,
for 40 cents a barrel; and gypsum is taken back for three dollars
a ton to Harrisburg, and five dollars a ton to Lewistown, therefore
the freight (exclusive of tolls) is downwards 14½ mills
per ton per mile, and returning 7 mills per ton per mile; or on
an average both ways one cent and three-fourths of a mill per
ton per mile for carriage.
On nine miles of railroad at Mauch Chunk, and on ten miles
of railroad between Tuscarora and Port Carbon, the carriage of
coal costs four cents, and the toll on the latter road is a cent
and a half per ton per mile.
The comparison will then stand thus:
On ten miles of railroad between Tuscarora and Port Carbon:
Being 39¼ cents difference in favor of the state canal
for every ten miles of transportation.
The following table will exhibit the relative useful effects
of horse power when employed on common roads, on turnpike roads,
on railroads, and on canals:
The introduction of locomotive engines and Winans cars upon
railroads, where they can be used to advantage, will diminish
the difference between canals and railroads in the expense of
transportation. But the board believe that, notwithstanding all
the improvements which have been made in rail roads and locomotives,
it will be found that canals are from two to two and a half times
better than railroads for the purposes required of them by Pennsylvania."
CANALS vs. RAILROADS.
A favorite saying of the advocates of canals as internal improvements
to be preferred to railways, was that a railroad occupied a middle
ground between a good turnpike and a canal. Benjamin Wright, one
of the earliest civil engineers in the country, said in 1831,
after examining critically the canal and railroad of the Delaware
and Hudson company, he "found that the expense on the railroads,
not including any toll, would be about 3¼ to 3½
cents per ton per mile; and on the canal, without toll, one cent
to one cent and two mills per ton per mile." Josiah White,
superintendent of the Mauch Chunk Railroad and Lehigh Canal, made
a similar comparison in reference to operations on those works.
The weak point in their argument was that the railways they referred
to were among the earliest constructed in the country, and being
intended solely for the transportation of coal they were not fair
representatives of railway possibilities.
Other points made in favor of canals were that they required
little intelligence on the part of those who operated them, that
they would be open to any man who built a boat, and that those
who used them could travel or stop, as they pleased, instead of
being obliged to adopt rates of speed dictated by managers. One
of Josiah White's general grounds of preference for canals, was
novel yet, in some respects, prophetic. He said: "I think
it rather fortunate for society that railroads are not of equal
value to canals, for a railroad can be taken anywhere; and, consequently,
no improvement would be safe on their line, for the moment the
improvement succeeded, it would be rivaled, so as to destroy both,
whereas we know the line and limits of our canals, by the supply
of water, and graduation of the ground; so that all improvements
thereon are safe against the undermining of rivals. I should consider
that, if the railroads superseded canals, they would, for the
above reasons, render the tenure or value of property as insecure
as it would be without the protection of law."
One of the principal topics discussed by advocates of the opposing
systems was the relative cost of constructionthe champions
of the railways contending that canals would, as a rule, always
be the most expensive, and this allegation being denied by the
advocates of canals. The instances were rare in which the cost
of either of the proposed works did not greatly exceed estimates.
A large amount of data bearing on the relative utility of railways
and canals, as freight carriers, is furnished by documents published
by Congress, by order of the committee on internal improvements
of the House of Representatives, in 1832. The leading advocates
on one side were the Baltimore and Ohio Railroad, and on the other
side the Chesapeake and Ohio Canal Company. Each of these corporations,
through their engineers and officers, collected a large amount
of the information then pertinent to a discussion of the comparative
merits of canals and railroads. The president of the Baltimore
and Ohio at that time was P. E. Thomas, and the chief engineer
Jonathan Knight.
One of the arguments favorable to railways advanced in Mr.
Knight's reply to the elaborate argument previously made by champions
of the canal system, was embraced in a reference to the fact that
they had used comparatively old data, and that the railway cars,
&c., had been materially improved since the tables referred
to had been compiled. Special importance was attached to the reduction
in friction effected by the Winans car. The significance claimed
for these improvements was so great that Mr. Knight contended
that, whereas an old table cited by the canal advocates had estimated
that a power of 100 pounds would move at the rate of 3 miles per
hour 38,542 pounds on a canal, and only 14,400 pounds on a level
railway, with the new cars 40,000 pounds could be moved on a level
railway. Tables which give varying velocities and effects were
cited, and Mr. Knight said: "From an inspection of the corrected
tables (that is, corrected so as to make due allowance for
the benefits derived from an improvement in the cars, &c.),
it will appear that when the velocity is 3 miles per hour it requires
less power on the railway than on the canal to produce an equal
effect. From a strict calculation, it will be found that the power
required will be equal when the velocity is 2-86/100 miles
per hour, or 4.2 feet per second."
A leading feature of his argument consisted of his advocacy
of the theory that resistance on a level railway with proper cars
is less than on waterwhile steam can be used more advantageously
on land than on an artificial water channel, and thus the actual
force employed can be subjected to a greater economy. Mr. Knight
adds that "according to Tredgold, the maximum of useful effect
of the labor of a horse will be obtained from a duration of six
hours labor per day, at a velocity of three miles per hour, and
the mean power of traction will be 125 pounds. The railway will,
therefore, have the advantage of the canal, at a rate of speed
best suited to the action of the horse. The effect of the railway
is to that of the turnpike road as 22 to 4."
LOADS DRAWN BY HORSES ON EARLY RAILROADS.
Experience soon demonstrated that a strong horse could draw
on a level railroad a great deal more than ten tons. One of the
early instances recorded was a performance on the first portion
built of the Baltimore and Ohio, in 1831. In describing it the
Baltimore American Said:
"The experiment of the transportation of two hundred barrels
of flour, with a single horse, was made on the railroad on Saturday
with the most triumphant success. The flour was deposited in a
train with cars, and made, together with the cars and the passengers
who rode on them, an entire load of 30 tons, viz.:
The train was drawn by one horse from Ellicott's Mills to the
Relay House, 6½ miles, in 46 minutes. The horse was then
changed and the train having again set out, reached the depot
on Pratt street in 69 minutes. The road between the Relay House
and the depot is a perfect level, except at three deep excavations,
where an elevation of 17 to 20 feet per mile was opened for drainage."
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