essary to restore to the service its former
efficiency.

The Railroad Commissioners' report shows that while the number of
employes was 24,642, and their yearly compensation was $14,212,500 in
1889, in 1892 there were 30,492 employes, and their yearly compensation
$18,070,915.

The increase in both the gross and net earnings of Iowa lines has been
remarkable, as shown in the following table gathered from the
commissioners' reports:

Gross Earnings, Net Earnings,
Year. Total. Total. Per Mile.

1888-89 $37,369,276 $11,861,310 $1,421
1889-90 41,318,133 12,798,430 1,522
1890-91 43,102,399 14,463,106 1,720
1891-92 44,540,000 14,945,000 1,777

It was claimed by railroad men that the effect of Iowa legislation would
be particularly disastrous to her local roads, which had no opportunity
to make up on through business the losses incurred in the local traffic.
The Burlington, Cedar Rapids and Northern was particularly cited as a
line which would have to go into bankruptcy under the new law. Its
earnings commenced to increase, however, immediately after the adoption
of the commissioners' schedule, and at the end of the first year they
were large enough to change this line from a Class "C" to a Class "B"
road. They continued to increase, and in 1891 its gross earnings on
substantially the same mileage were 36 per cent, and its net earnings 64
per cent. larger than they had been in 1888. The increase continued and
enabled the company to make a dividend to its stockholders February 1,
1893, it being the first dividend ever made by the company. It is a good
illustration of what the Iowa law has done for weak railroads. It has
again changed class and is now a Class "A" road.

It is seen that the fears, or rather the pretended fears of the railroad
managers, that the legislature of Iowa would bankrupt her railroads,
were entirely groundless. As a result of the law railroads have been
able to increase their gross earnings as well as their profits. They
have been enabled to give employment to a larger number of men, and
there has been no occasion for them to carry out the dishonest threat to
decrease the wages of their employes. Had it not been for their
increased earnings in Iowa, the losses recently sustained in other
States by several of the through lines would have made it impossible for
them to d