n a few years it extended its dominion over the whole
country, exacting a heavy tribute from its commerce, until the people's
patience finally became exhausted and their determined demand for
railroad reform led to the enactment of the Interstate Commerce Act in
1887.

When this act passed, dire results were predicted by nearly every
railroad man in the country. Prophecies were freely made that it would
ruin half of the roads and seriously cripple and sadly interfere with
the usefulness of the other half, that it would derange the business of
the country, greatly depreciate all railroad securities and put an end
to railroad construction. Nearly seven years have passed since the
adoption of the law, but not one of these prophecies has come to pass.
There are at present probably less bankrupt roads in the United States
than there have been at any time for twenty years, our business
interests have been improved, the securities of honestly managed roads
are in better repute than they were previous to the passage of the law,
and the railroad mileage of the country is increasing at the rate of
about 6,000 miles a year. If any branch of business has suffered in
consequence of the enactment of the law, it is the branch monopolized by
Wall Street. Since 1885, the time when the Interstate Commerce Bill was
first seriously agitated, the aggregate of railroad securities has
increased nearly $2,500,000,000, or about one-third. This certainly does
not look as if capital had been seriously frightened by the Interstate
Commerce Act. There are other proofs of railroad prosperity. In 1885 the
gross earnings of the railroads of the United States were $772,568,833,
or 9.9 per cent. on their reported capital. In 1886 their gross earnings
were $829,940,836, or 10.2 per cent. on the reported railroad capital.
In 1890 the gross earnings had increased to $1,097,847,428, and equaled
10.8 per cent. on the reported capital. This includes even the
capitalization of new lines and others not reporting operations. Mr.
Poor gives the reported cost of the lines actually operated as
$8,519,670,421, against $10,122,635,900 reported cost of all the
railroads built. Omitting from the computation the lines not reporting
operations, the gross earnings of the roads actually operated equaled
12.7 per cent. and their net earnings 4 per cent. on the actual cost of
the lines which reported. The gross earnings for 1891 were
$1,138,024,459, and for the year ending J