,,transcriber',s ,,note ,italic text is denoted by underscores4 ,bold text is denoted by equal signs4 ,fractions have been left in the form a_/b except for 4 ,a dozen or so occurrences of 'nn a-b' have been changed to 'nn-a_/b'1 mainly on pages #bg-dj1 for consistency4 ,footnote anchors in a table are of the form 7a7 and the corresponding ,footnote is placed at the bottom of that table4 ,other ,footnote anchors are of the form ,a with placement at the end of that ,chapter4 ,to save table space some column headings use the following abbreviations3 ,pass4 for ,passenger ,mill4 for ,millions ,prop4 for ,proportion ,many wide tables have been split into two or more parts4 ,each part after the first is labelled at the top with table continued4 ,obvious typographical errors and punctuation errors have been corrected after careful comparison with other occurrences within the text and consultation of external sources4 ,more detail can be found at the end of the book4 ,,the ,,railway ,,library #aiji ,a ,,collection ,,of ,,noteworthy ,,chapters1 ,,addresses ,,and ,,papers ,,relating ,,to ,,railways1 ,,mostly ,,published ,,during ,,the ,,year4 ,,compiled ,,and ,,edited ,,by ,,slason ,,thompson ,,manager ,,of ,,the ,,bureau ,,of ,,railway ,,news ,,and ,,statistics ,,chicago ,,chicago ,,the ,,gunthorp-,,warren ,,printing ,,co #aiaj ,,table ,,of ,,contents ,page ,,introduction #c ,,pre-,,railway ,,era ,,in ,,america #e ,by ,f4 ,a4 ,cleveland and ,f4 ,w4 ,powell4 ,,first ,,annual ,,report ,,of ,,the ,,chief ,,engineer ,,of ,,the ,,pennsylvania ,,railroad ,,company #ba ,by ,j4 ,edgar ,thomson4 ,,railways ,,and ,,the ,,pacific ,,northwest #de ,by ,james ,j4 ,hill4 ,,southern ,,railways ,,and ,,their ,,needs #eh ,by ,john ,f4 ,wallace4 ,,problems ,,confronting ,,american ,,railways #ff ,by ,daniel ,willard4 ,,the ,,railroad ,,situation ,,of ,,to-,,day #hj ,by ,frank ,trumbull4 ,,transportation ,,charge ,,and ,,prices #ij ,by ,logan ,g4 ,mc,pherson4 ,,the ,,freight ,,rate ,,primer #ajg ,issued by the ,n4 ,y4 ,c4 ,h4 ,r4 ,r4 ,r4 ,co4 ,,progressive ,,safety ,,in ,,railway ,,operation #aaf ,by ,a4 ,h4 ,smith4 ,,railway ,,mail ,,pay #adb ,by ,julius ,kruttschnitt4 ,,the ,,diminished ,,purchasing ,,power ,,of ,,railway ,,earnings #afe ,by ,c4 ,c4 ,mc,cain4 ,,the ,,railroads ,,and ,,public ,,approval #aii ,by ,edward ,p4 ,ripley4 ,,railroads ,,and ,,the ,,public #bje ,by ,john ,c4 ,spooner4 ,,railroad ,,problems ,,of ,,to-,,day #baa ,by ,j4 ,b4 ,thayer4 ,,the ,,relation ,,of ,,the ,,railroads ,,to ,,the ,,state #bbj ,by ,w4 ,m4 ,acworth1 ,m4 ,a4 ,,railway ,,nationalization #bch ,by ,sir ,george ,s4 ,gibb4 ,,concerning ,,advances ,,in ,,railway ,,rates #bfa ,by the ,senate ,committee on ,interstate ,commerce1 #aiji4 ,,statistics ,,of ,,american ,,railways ,,for #aiji #bia ,by ,slason ,thompson4 ,i ,mileage in #aiji #cjf ,,ii ,equipment #cad ,,iii ,employes and their ,compensation #cba ,,iv ,capitalization #ccg ,v ,cost of ,construction #cdb ,,vi ,ownership of ,american ,railways #cde ,,vii ,public ,service of the ,railways #cdf ,,viii ,earnings and ,expenses #ceh ,,ix ,taxes #cfc ,x ,damages and ,injuries to ,persons #cfe ,,xi ,locomotive ,fuel #cfg ,,xii ,the ,safety of ,american ,railways #cfh ,,xiii ,railway ,receiverships in #aiji #chd ,,xiv ,cost of ,railway ,regulation #che ,,xv ,statistics of ,foreign ,railways #chf ,,xvi ,growth of ,railways #cia ,recommendations #cic ,,index #cie ,,introduction ,in the following pages is presented a number of the more timely papers and addresses of the year #aiji on the present railway situation1 together with chapters from two books of current interest on the same subject4 ,as the object of the compilation has been to present in permanent and accessible form information in regard to ,american railways worthy of more than the ephemeral life of newspaper or pamphlet publication1 it has been thought well to accompany the messages of today with a brief glance at the conditions on this continent before the days of railways4 ,happily for this purpose the first two chapters of ,messrs4 ,cleveland and ,powell's ,railroad ,promotion and ,capitalization in the ,united ,states1 fresh from the press1 afforded the very background needed1 and the first report of the engineer of the ,pennsylvania ,railroad provided the glasses through which the reader can look forward from the small beginnings to what is now known as the greatest railway system on the globe4 ,after this study of conditions as they were1 and of the opportunities that invited the railway pioneers of #ahdh1 it is instructive to read the utterances of the latest of our empire builders1 whose foresight and indomitable will anticipated the development of our ,pacific ,northwest with railway facilities that already lag behind the necessities of its amazing growth4 ,of the other addresses and papers it is unnecessary to say more than that they reflect the prevailing sentiments of all thoughtful railway officials respecting conditions of the gravest import to the great industry upon which the entire fabric of our national prosperity and well-being depends4 ,only the shallowest student of our social1 economic and political system can view the persistent attacks upon the ,american system of transportation without serious alarm for the results4 ,this alarm is the prevailing note of these papers and it comes from men who are at the helm and who see the financial breakers upon which the fierce blasts of political exigency are driving the railways4 ,the papers by ,sir ,george ,s4 ,gibbs and ,mr4 ,a4 ,m4 ,acworth1 the leading authorities on ,british railways1 discuss the alternative to wisely regulated railways--nationalization of railways4 ,with a continuance of unwise and burdensome regulation of railways1 which strips responsibility of all discretion1 nationalization is inevitable4 ,the ,bureau's statistics of ,american railways for the year ending ,june #cj1 #aiji1 is included in ,,the ,,railway ,,library because it affords the latest data not only as to the railways of the ,united ,states but for the world4 ,acknowledgments are made to the authors and publishers of the various papers1 and especially to the publishers of the two works from which important chapters have been extracted by their courteous permission1 as well as that of their authors4 ,if this publication fulfils the purpose of its compilation1 it will be succeeded by annual volumes of like character under the same title4 ,s4 ,t4 ,chicago1 ,june #a1 #aiaj4 ,,pre-,,railway ,,era ,,in ,,america ,from ,chapters ,i and ,,ii of ,railroad ,promotion and ,capitalization in the ,united ,states1 by ,f4 ,a4 ,,cleveland and ,e4 ,w4 ,,powell4 ,longmans1 ,green ,co41 #aiji4 7,by permission of the authors47 ,inland transportation1 as we know it1 is the product of the last century4 ,it had its beginning in the industrial revolution4 ,in ,england at the close of the eighteenth century the manor as a productive agency had been supplanted by a system of domestic production1 and this in turn was giving place to the factory4 ,the combined influences of increasing capital and invention had operated to centralize the industrial population in the towns4 ,ocean commerce was comparatively well developed1 and manufacture was fast being established upon a modern basis2 but inland transportation was still encumbered by such primitive methods as to make difficult the utilization of the resources of the interior4 ,a century and a half before1 ,lord ,bacon had called attention to the three great elements necessary to make a nation great and prosperous--a fertile soil1 busy workshops1 and easy conveyance of men and things from one place to another1--but the significance of this reflection was not appreciated until after the middle of the eighteenth century4 ,the controlling force of custom--social inertia--had stood in the way of progress4 ,,in ,,england4 ,until about the opening of the nineteenth century the principal manufacturing towns of ,great ,britain were situated on or near the coast2 for in the inland country goods were still carried on the backs of men1 or hauled in carts over heavy roads4 ,said ,lardner3 ,the internal transport of goods in ,england was performed by wagon1 and was not only intolerably slow1 but so expensive as to exclude every object except manufactured articles1 and such as1 being of light weight and small bulk in proportion to their value1 would allow of a high rate of transport4 ,thus the charge for carriage by wagon from ,london to ,leeds was at the rate of #ac 7#fc4ca7 a ton1 being #ac;d4 7#bg cents7 per ton per mile4 ,between ,liverpool and ,manchester it was #djs4 7#i4fj7 a ton1 or #ae;d4 7#cj cents7 per ton per mile4 ,heavy articles1 such as coal and other materials1 could only be available for commerce where their position favored transport by sea1 and1 consequently1 many of the richest districts of the kingdom remained unproductive1 awaiting the tardy advancement of the art of transport4 ,,in ,,america4 ,before the ,revolution the ,american colonists lived in almost complete isolation4 ,travel by land was limited1 for water communication presented fewer obstacles to progress4 ,population was arranged along the seaboard1 or in isolated groups a short distance inland4 ,living narrow1 self-centered lives1 each community developed a distinct dialect and characteristic customs and dress4 ,social activities were limited to going to mill1 market and church1 or exchanging friendly calls2 traveling on foot or on horseback along wooded trails4 ,even between seacoast towns there was little interchange of products or population2 and a citizen of one colony going to another was at once struck with the many local peculiarities4 ,it was less than twenty years before the ,revolutionary war when the first stage line was opened between ,new ,york and ,philadelphia1 and three days were then required for a single trip4 ,it was ten years later when the first stage line was established between ,philadelphia and ,baltimore4 ,,methods ,,of ,,travel ,,and ,,transport4 ,between towns of considerable size there were country roads over which vehicles could pass when the weather would permit4 ,the stage coach1 which was the only public land conveyance1 plied along the coast and between a few inland centers1 but the coaches of that day were rude boxes swung on wheels by leathern straps instead of springs1 with seats for a dozen or more and accommodations for a limited amount of baggage4 ,the rate of travel was from two to six miles an hour1 according to the condition of the roads and the importance of the route4 ,on the farm the mud-boat or stone sledge was in common use1 and at times it was even employed to carry produce to local markets4 ,in more progressive communities two-wheeled carts and wagons were to be found4 ,the best of roads1 however1 were nothing but mud roads2 and the wagons1 commonly of the linchpin type1 were clumsy and awkward4 ,some of the more primitive wagons had wheels made of cross sections of trees1 trimmed and centered to roll on axles of wood4 ,those who traveled had little thought of time2 companionship found expression in story-telling1 gossip and tippling2 and an emergency which required all to get out and take a wheel only added spice to the trip4 ,we have the following description of the roads about ,philadelphia1 the metropolis and commercial center of the ,new ,world3 ,on the best lines of communication the ruts were deep1 the descents precipitous4 99 99 99 ,near the great cities the state of the roads was so bad as to render all approach difficult and dangerous4 ,out of ,philadelphia a quagmire of black mud covered a long stretch of road near the village of ,rising ,sun4 ,there horses were often seen floundering in the mud up to their bellies4 ,on the ,york road1 long lines of wagons were every day to be met with1 drawn up near ,logan's hill1 while the wagoners unhitched their teams1 to assist each other in pulling through the mire4 ,at some places1 stakes were set up to warn teams of the quicksand pits2 at others1 the fences were pulled down1 and a new road made through the fields4 ,transportation facilities were either entirely lacking or such as to make travel both expensive and hazardous4 ,it is difficult to realize that as late as #aghj the roads over a large part of ,pennsylvania were narrow paths which had been made through the woods by ,indians and traders4 ,,absence ,,of ,,roads ,,in ,,the ,,interior4 ,the isolation of interior settlements finds apt illustration in the ,wyoming valley4 ,this rich region along the ,susquehanna had been until #aghf almost completely cut off from the outer world4 ,a small colony had moved in from the ,east1 and taking color of title from ,connecticut1 disclaimed the sovereignty of the ,quaker proprietary4 ,war consequently broke out between this isolated settlement and the ,pennsylvania government4 ,several military expeditions were sent out to reduce the ,yankees to submission2 but the absence of roads and the necessity of carrying provisions on horseback left the determined pioneers masters of the situation when the larger issue1 the ,revolutionary war1 suspended local strife4 ,the spring after ,burgoyne's surrender at ,saratoga the settlers of the ,wyoming valley learned that a detachment of ,johnson's ,royal ,greens and ,butler's ,rangers1 with a company of ,tories1 had allied themselves with the ,seneca ,indians1 and were preparing to descend upon the valley4 ,a courier was despatched to congress1 and appeals for aid were made to the neighboring states1 but the isolation which had before served for defense now brought disaster4 ,with the ,june freshet the ,british allies came down from ,tioga1 and nothing but ruins were left to mark the scene4 ,one of the reasons urged for the removal of the state capitol from ,philadelphia to ,harrisburg in #agii was the cost of travel1 which bore heavily upon legislators from the interior4 ,,the ,,roads ,,of ,,new ,,england4 ,the early settlers of ,springfield1 ,massachusetts1 were obliged to send their household goods from ,roxbury around by way of ,long ,island ,sound and the ,connecticut river1 but they themselves were able to proceed on foot along an ,indian trail4 ,in time this trail was widened1 and as the ,bay path and the ,boston road occupied an important place among the transportation routes of the colonies4 ,it was1 however1 little more than a narrow wagon path until after the ,revolution1 and so indistinct was it that travelers frequently wandered off the route4 ,a curious stone post marks the place near the national armory at ,springfield1 where in #agfc a western ,massachusetts merchant lost his way1 and set up a guide for other travelers4 ,even as late as #agie there were but two stages between ,boston and ,new ,york1 and a week was required for the journey4 ,john ,bernard1 the ,english actor1 thus described a typical ,new ,england road in #agig3 ,though far better than in any other quarter of the ,union1 the frequent jolts and plunges of the vehicle brought it into sad comparison with the bowling-greens of ,england4 ,very often we surprised a family of pigs taking a bath in a gully of sufficient compass to admit the coach4 ,as often1 such chasms were filled with piles of stones that1 at a distance1 looked like ,indian tumuli4 ,the driver's skill in steering was eminent4 ,i found there were two evils to be dreaded in ,new ,england traveling--a clayey soil in wet weather1 which1 unqualified with gravel1 made the road a canal2 and a sandy one in summer1 which might emphatically be called an enormous insect preserve4 ,such testimony makes real the difficulties which attended travel over the important routes1 and enables one to understand how it could have required ,washington nearly two weeks to make the trip from ,philadelphia to ,cambridge at the outbreak of the ,revolution4 ,,after ,,the ,,revolutionary ,,war4 ,before the ,revolution the subject of road improvement was seldom considered in public assemblies1 and the early laws contain few provisions even for common roads4 ,those who proposed measures for general improvement met with little encouragement4 ,as early as #afij ,william ,penn suggested the practicability of a waterway from the ,schuylkill to the ,susquehanna4 ,in #agfb ,david ,rittenhouse of ,philadelphia1 and ,provost ,smith of the ,university of ,pennsylvania1 proposed a similar project1 and made surveys of the route by the ,swatara and the ,tulpehocken2 in #agfi the ,american ,philosophical ,society interested itself in a canal survey between ,chesapeake ,bay and the ,delaware1 recommending the enterprise to the public4 ,in #agfh ,governor ,moore of ,new ,york projected a canal around the ,canajoharie ,falls of the ,mohawk4 ,but to none of these suggestions was there any active response1 for the time was not ripe for such undertakings4 ,contributing to the road-making impulse immediately after the war of independence was a newly awakened community interest4 ,at the time of the adoption of the constitution there were two distinct classes in the ,united ,states3 a highly localized class of the seaboard and of the inland trade routes1 and a widely distributed agricultural class4 ,american commerce was largely confined to ,american products4 ,england1 ,france and ,holland monopolized the trade of their colonies1 and in other ways favored their own merchantmen in foreign trade4 ,such being the condition1 our commercial advantage lay in the development of our own resources4 ,the settlement of the ,middle ,atlantic states and of the valleys of the interior only served to strengthen the interdependence of the people1 who found a common interest in internal improvements4 ,to the agriculturist1 cheap conveyance to market was a prerequisite to profitable industry4 ,to the commercial class on the seaboard and on the leading trade routes1 inland improvement was at that time no less important4 ,,first ,,era ,,of ,,road ,,making4 ,there was a notable change in the popular attitude toward road making after the war1 and all public-spirited men now saw in better means of communication an instrument for the establishing of ,american supremacy over the western continent4 ,legislatures made generous appropriations for highways4 ,an active migration set in from ,new ,york and northern ,pennsylvania to the ,west4 ,in #agch the first regular mail service was established between ,albany and ,schenectady4 ,in #agic the horse path from ,albany to the ,connecticut valley was widened to a wagon road4 ,like activity in road making was shown throughout southern and western ,new ,york1 middle ,pennsylvania1 ,maryland and ,virginia4 ,in #aghe ,pennsylvania appropriated #aj1jjj to lay out a road from a point near the mouth of the ,juanita to ,pittsburgh4 ,in #aghf an act was passed appropriating #a1ejj to view and open a road from ,lehigh ,water ,gap to ,wyoming1 which was the first road into that valley from the ,delaware4 ,in #aghg another road was authorized between the ,susquehanna and the ,delaware4 ,activity in opening communication with the interior increased until by #agia the movement had assumed proportions to be styled a mania4 ,by a single act over #aej1jjj was appropriated for the improvement of eleven rivers and over a score of roads in different parts of the state4 ,other acts were passed at the same session1 granting charters and appropriations for various transportation enterprises4 ,new ,york in #agig authorized the raising by lotteries of #de1jjj for the improvement of various roads throughout the state4 ,as if by common impulse1 all the states now became interested in road improvement1 and congress was asked to aid by this means the opening up of the resources of the interior4 ,,beginning ,,of ,,the ,,canals ,,and ,,pikes4 ,the low cost of water transportation had early directed popular attention to canals as a means of overcoming obstructions in natural water courses1 thereby serving the needs of the inland population1 and also providing the means for diverting trade from one seaport to another4 ,the ,revolutionary war was hardly over when ,charles ,carroll organized a company to open a canal about the obstructions in the lower ,susquehanna4 ,those who took the most active interest in canal construction at this time were men who1 like ,washington1 viewed the future with patriotic interest4 ,this interest1 however1 was one which did not appeal to the private investor4 ,an enterprise based upon such public consideration required government support4 ,this period also marked the beginning of turnpike construction4 ,the first turnpike road in this country of which we have a record was built between ,alexandria and the ,lower ,shenandoah4 ,it was begun in #aghe-f1 and its completion was the cause of great satisfaction to ,jefferson and other public-spirited men of ,virginia1 who had labored in the cause of a broader national life4 ,alexandria was at that time an important competitor of the other seaboard cities4 ,across the ,maryland peninsula on the ,chesapeake lay ,baltimore1 a commercial rival of both ,alexandria and ,philadelphia4 ,in #aghg the grand jury sitting at ,baltimore called attention to the deplorable condition of the roads leading to that city1 and urged the authorities to take immediate action4 ,as a result1 the county government ordered the old ,frederick1 ,reistertown and ,york roads turnpiked at public expense4 ,to the west of ,philadelphia lay the ,susquehanna valley4 ,the natural outlet of this growing region was down the ,chesapeake to ,baltimore4 ,to attract traffic to the ,quaker ,city a company was organized in ,philadelphia in #agib to build the ,lancaster pike1 which was the first turnpike in this country built by voluntary subscription4 ,,effect ,,of ,,european ,,wars ,,on ,,american ,,situation4 ,the outbreak of the ,european wars in #agic was followed by a marked change in the ,american industrial situation4 ,the immediate effect upon the grain growing of the ,west was to increase the demand for wheat4 ,prices of cereals rose to twice their former height4 ,the average price of flour during the seven years from #aghe to #agic had been about #e4dj a barrel2 the average price from #agic to #ahjf 7the two years of peace1 #ahjb and #ahjc1 excluded7 was #i4ab4 ,such was the inducement to grain growing during this period4 ,back from the ,north ,atlantic coast radiated rich valleys--large tracts of agricultural lands which were well adapted to grain growing4 ,a rush set in for the unclaimed resources of ,new ,york1 ,pennsylvania and ,maryland1 and for a time the tide of migration moved to the westward along the ,ohio1 and the border of the ,great ,lakes4 ,those who cultivated lands near the coast shared in the increased prosperity due to the ,european disturbance1 but unless they could obtain better means of transportation1 those who had located inland soon found that they could profit little4 ,grain as compared with cotton and tobacco was a low priced product4 ,at best1 the cost of transportation was ten dollars a ton for each hundred-mile haul2 in many places it was much higher4 ,,americans ,,turn ,,to ,,home ,,markets4 ,before #ahjg the country had come to be divided into three sections3 the commercial1 shipbuilding ,east1 the cotton and tobacco exporting ,south1 and the isolated grain growing interior1 linked with which was a languishing manufacturing interest on or near the seaboard4 ,beyond a limited range the producing proportion of our population could not participate in the profits of the ,european trade4 ,the grain growers demanded a market1 and the manufacturers saw their profits swept away by an influx of foreign goods4 ,these were the interests which suffered from the diversion of capital to shipbuilding and foreign trade4 ,both looked to internal improvements as a solution of their troubles2 their only hope was in a home market--in better roads1 and in the development of the resources about them4 ,in the ,united ,states agriculturist and manufacturer turned to the national government for relief4 ,but so long as the administration remained in the hands of the foreign trade party1 the way was blocked to internal improvements4 ,during the first three administrations after the adoption of the constitution1 the individualistic republicans had been unable to gain control of the government2 but with the admission of ,kentucky1 ,tennessee and ,ohio and the settlement of the parts of the sea coast states remote from transportation facilities1 the anti-commercial constituency gained the balance of power4 ,it was to the voters of these new regions that ,jefferson owed his success4 ,it was to satisfy the demands of the ,west for an outlet to the gulf that ,louisiana was purchased4 ,to satisfy the insistent demand for internal improvements the national government also built the ,cumberland road1 and contributed to many other transportation projects4 ,it was the open hostility of the ,west and ,south toward the commercial ,east which forced the embargo1 and broke down the domination of the seaboard interests in national affairs4 ,,river ,,traffic ,,developed ,,by ,,private ,,capital4 ,the inland routes which required the least capital to utilize in a primitive way were the rivers4 ,here the chief obstacle was the current4 ,in the early nineteenth century long lines of rafts1 flat-boats and arks might be seen floating down the ,connecticut1 the ,hudson1 the ,susquehanna and the ,potomac4 ,there were #b1hjj miles of rivers tributary to the ,atlantic seaboard which were navigable1 or which needed only to be cleared of snags and rocks to render them available for use by small craft4 ,it was estimated that on the eastern slope there were about #be1jjj miles of streams which might be utilized by the construction of locks and canals4 ,in the ,mississippi valley there were #ad1jjj miles of navigable rivers1 and about #ge1jjj more which were considered possibilities4 ,but with a three or four-mile current it was impracticable to row1 pole or warp a boat and cargo upstream for a long distance4 ,the result was that along those streams which nature had provided as highways the producer first built his boat out of the timbers of the forest1 then loaded it with the produce of his farm or mill1 and floated down stream to market4 ,upon reaching his destination1 he abandoned his craft and returned by stage or on foot4 ,this was indeed an expensive process--expensive in time1 expensive in funds and expensive in human effort4 ,it was an expense of production1 however1 and one which did not require capitalization4 ,it was not until #ahjg that the steamboat became a commercial success4 ,at this time ,new ,york was becoming well settled1 and as the ,hudson was a natural highway a boat which could drive against wind and stream had every promise of success4 ,robert ,fulton1 who had been interested in the problem of steam navigation since #ahjb1 returned from ,europe after several years of investigation1 and brought back one of ,watt's engines4 ,he obtained the financial co-operation of ,chancellor ,livingston1 and together they obtained a monopoly of steam navigation in ,new ,york waters4 ,a boat was fitted with the ,watt engine1 and a successful trip was made from ,new ,york to ,albany and return4 ,the route yielded large profits from the start1 and other boats were built4 ,by #ahac six boats were doing a profitable business on the ,hudson4 ,the success of ,fulton and ,livingston proved attractive to others4 ,crowded out of ,new ,york's waters by the monopoly1 ,john ,stevens1 in #ahji1 took a steamboat around from ,hoboken into the ,delaware4 ,the ,phoenix now found business so good in those waters where ,fitch had failed that it was soon followed by two other boats4 ,soon the whole ,atlantic seaboard1 including the ,st4 ,lawrence1 was supplied with steam craft4 ,but enterprise in steamboat navigation was not confined to the coast4 ,business opportunities in the ,mississippi valley attracted the attention of one ,nicholas ,roosevelt1 who proposed to ,fulton and ,livingston that he would make a trip to ,new ,orleans to survey the prospects for an inland water route1 with the understanding that they should finance a steamboat line if his report was favorable4 ,so favorable was it that he was placed in charge of the construction of a river boat at ,pittsburg1 and in #ahaa the ,new ,orleans made her maiden trip down the ,mississippi4 ,thereafter ,roosevelt's boat took a regular route between ,new ,orleans and ,natchez4 ,other boats were added1 but it was not until #ahae that a voyage was made upstream from ,new ,orleans to ,louisville and ,cincinnati4 ,after assisting ,jackson in the campaign about ,new ,orleans1 the ,enterprise1 taking advantage of high water1 steamed to ,louisville in twenty-five days4 ,in #ahag the ,washington accomplished the same feat while the river was within her banks1 and the public became convinced of the practicability of upstream navigation4 ,the same year the ,shelby reduced the time to twenty days1 and by #ahbc fifteen days sufficed4 ,with the success of the steamboat1 the ,middle ,west was opened to rapid communication with the gulf4 ,,wagon ,,roads ,,into ,,the ,,interior4 ,from #ahjg to #ahae two changes had a marked effect upon the national attitude toward internal improvements4 ,before the outbreak of the ,european wars manufactures had made some progress in ,new ,england and in ,pennsylvania4 ,during the first struggle1 and before the peace of ,amiens1 the only serious obstacle to ,american industry was the tendency to divert capital to wheat raising1 shipbuilding and foreign trade4 ,prices were high1 and the makers of goods found encouragement in large profits4 ,with the cessation of hostilities ,american manufacturers looked to ,congress for protection1 for foreign goods poured into the country in such quantities and at such prices as to threaten the destruction of domestic production4 ,at the most1 however1 the manufacturing population was relatively small1 but the disturbances to industry from #ahae to #ahah were such as to throw many out of employment1 and to bring to the verge of bankruptcy and starvation those who had been engaged in shipbuilding and foreign trade4 ,a great exodus to the interior was the result4 ,in wagons1 on horseback1 or on foot--sometimes using handcarts1 sleds and wheelbarrows to carry their provisions and light luggage--emigrants crowded the wooded paths that led to the ,west1 where they might find conditions more favorable to independent livelihood4 ,all these conditions conspired to increase the depression in the ,east1 and drive her people into agriculture and the development of the interior2 while the opening of the ,mississippi by the steamboat added to the attractions of the rich valleys in the ,middle ,west4 ,but upon his arrival in the ,west the newcomer found himself beyond the range of any market except ,new ,orleans4 ,to reach this market he would produce or get together a quantity of corn1 flour1 bacon and such articles4 ,he would build a flat-bottomed boat on the shore of some river or large creek1 load his wares into it1 and1 awaiting the rise1 with a few of his negroes to assist him1 would float down to ,new ,orleans4 ,the voyage was long1 tedious and expensive4 ,when he arrived there he found himself in a strange city1 filled with sharpers ready to take advantage of his necessities4 ,everybody combined against him to profit by his ignorance of business1 want of friends or commercial connections1 and nine times out of ten he returned a broken merchant4 ,his journey home was performed on foot1 through three or four nations of ,indians inhabiting the western parts of ,mississippi1 ,tennessee and ,kentucky4 ,he returned to a desolate farm1 which had been neglected whilst he had been gone4 ,one crop was lost by absence and another by taking it to market4 ,this kind of business was persevered in astonishingly for several years1 to the great injury and utter ruin of a great many people4 ,it was the demand for safe transportation arising out of this situation which made ,roosevelt's steamboat enterprise a success4 ,,development ,,of ,,coastwise ,,commerce4 ,the ,british blockade of our coast during the war of #ahab had a marked effect upon the development of inland routes of transportation1 as may be seen from the following3 ,the interruption of the coasting trade was indeed a very serious affair4 ,for years past that trade had given occupation to thousands of coasters and tens of thousands of sailors4 ,the shoes made at ,lynn1 the ,yankee notions of ,connecticut1 the cotton cards1 the domestic cottons1 the playing cards produced in ,new ,england1 the flour of the ,middle ,states1 the ,east ,india goods brought in from abroad had found a ready market at ,charleston1 ,savannah and ,augusta1 whence great quantities of rice and cotton were brought ,north4 ,on the arrival of the ,british fleet this trade1 no longer to be carried on in safety by water1 began of necessity to be carried on by land4 ,at first some merchants at ,boston1 having chartered a few wagons1 despatched them with loads to ,philadelphia1 and even to ,baltimore4 ,this was enough4 ,the hint was taken4 ,a new industry sprang up1 and by early summer the roads leading southward exhibited one continuous stream of huge canvas-covered wagons tugged along by double or triple teams of horses or of oxen4 ,no distance was then too great1 and hundreds of them would make their way from ,salem and ,boston to ,augusta and ,savannah4 ,an estimate made towards the close of the year 7#ahad7 places the number of wagons thus employed at four thousand1 and the number of cattle1 horses and oxen at twenty thousand2 nor does this seem excessive1 for a traveler who drove from ,new ,york to ,richmond declares that he passed two hundred and sixty wagons on the way4 ,,the ,,capitalization ,,of ,,turnpikes4 ,both overland trade and westward migration drew attention to the importance of good roads1 both swelled the receipts of turnpike companies1 and gave encouragement to investment of local capital in transportation improvement4 ,by #ahjd the ,lancaster road had been extended to ,pittsburg1 and a regular stage line established which made a trip each way once a week4 ,state governments lent every encouragement to the building of turnpike roads1 even to the extent of subscribing to their stock4 ,from contemporary writings and charter grants1 it is estimated that nearly eight hundred turnpike companies were organized before the end of the war of #ahab4 ,pennsylvania was pre-eminent in granting liberal charters1 and toll rights1 thereby encouraging the people of the more thickly settled districts to make such improvements for themselves4 ,the corporations thus formed had little difficulty in obtaining capital subscriptions1 whether for the construction of turnpikes or bridges1 or for the operation of ferries4 ,to the stock of these corporations several of the states subscribed in varying amounts4 ,although a few toll roads were constructed before that time1 the turnpike movement may be said to date from the opening of the nineteenth century4 ,turnpikes 7so called from the revolving1 or turning bar1 or pike which1 when set across a toll road1 prevented passage until charges were paid7 were macadamized or otherwise improved at a cost varying from #ejj to #aj1jjj per mile4 ,almost without exception they followed in a general way the old lines which had been worked out when travel on foot or on horseback was the chief method of communication1 but wherever possible they were made straight1 going over and not around hills and other obstacles4 ,when the ,boston and ,salem turnpike was built a small but deep pond was encountered1 but instead of going around the road crossed on a floating bridge4 ,the construction of bridges and the operation of ferries were parts of this larger turnpike movement1 and like the turnpikes themselves1 they were usually disappointing to those who had invested with the hope of large dividends4 ,at best1 this movement did but little to supply the great need for improved transportation4 ,to passenger service it was a great boon1 in that it added much to personal comfort1 though the time and cost of travel were little reduced4 ,it required five dollars and fifty cents to pay tolls from ,philadelphia to ,new ,york1 besides the hotel bills and other expenses of the road4 ,it took a week to go from ,philadelphia to ,pittsburg4 ,what the country most needed--a cheap method of handling the bulky products of the interior--was not supplied4 ,freight was carried upon the turnpike with great difficulty and expense1 and heavy goods were compelled to remain untouched on account of the high tolls4 ,,revival ,,of ,,canal ,,construction4 ,to meet this situation1 canals had been proposed long before the period of turnpike building1 and some surveys had been made1 but because of lack of capital1 construction was deferred4 ,the earliest projects were for short cuts around rapids or falls1 or between neighboring waters1 but bolder plans followed4 ,the first canal of any importance actually begun in the ,united ,states was the two-mile cut through the rocks about the ,south ,hadley falls of the ,connecticut4 ,the ,massachusetts legislature passed an act in #agib incorporating the ,proprietors of the ,locks and ,canals on ,connecticut ,river4 ,work was begun at once with ,dutch capital1 and in two years the canal was completed4 ,the ,santee canal in ,south ,carolina was the first large work of this kind constructed in the ,united ,states4 ,it connected the ,santee river with the ,cooper river at ,charleston1 and it was opened in #ahjj4 ,its length was twenty-two miles1 and its cost #fjj1jjj4 ,a much more important project was the ,middlesex canal in ,massachusetts1 a charter for which was obtained in #agic4 ,this canal extended from the ,charles river to the ,merrimac1 twenty-seven miles1 and was designed to attract to ,boston the trade normally tributary to ,portsmouth4 ,work was begun in #agid1 and ten years later the canal was opened for traffic1 though it was not entirely completed until #ahjh4 ,the successful completion of the ,erie canal1 which became an assured fact long before its actual accomplishment in #ahbe1 stimulated similar projects all over the country4 ,the local strife between trade centers1 combined with the local demand for outlet1 set a number of private projects in motion4 ,boston1 ,philadelphia1 ,baltimore and ,georgetown were successfully appealed to for support for transportation routes which would enable them to compete with ,new ,york for the trade of the ,west4 ,the ,blackstone ,canal ,company1 chartered by ,rhode ,island and ,massachusetts in #ahbc1 began the construction of a canal along the ,blackstone river to connect ,providence and ,worcester1 and this route was opened for traffic in #ahbh4 ,another ,new ,england project started at about the same time was for a canal to extend from ,new ,haven northwards to ,northampton1 and on up the ,connecticut valley into ,vermont4 ,two companies were chartered for this purpose1 the ,farmington canal in ,connecticut in #ahbb and the ,hampshire and ,hampden canal in ,massachusetts in #ahbc4 ,the ,farmington canal was completed in #ahcj2 but the work on the ,hampshire and ,hampden project was for a time abandoned for want of funds1 and the canal was not cut through to ,northampton until #ahce4 ,while carrying a large traffic this canal1 like the ,blackstone canal1 was more beneficial to the general business of the section traversed than to those who held its stock4 ,other private works of this period upon which large sums were expended were3 ,the ,delaware and ,raritan canal1 connecting ,philadelphia with ,new ,york2 the ,james ,river and ,kanawha1 an unfinished canal project in ,virginia2 and the ,chesapeake and ,ohio canal1 which was not extended further west than ,cumberland4 ,,scarcity ,,of ,,capital ,,for ,,canals4 ,on account of local needs1 few canal or navigation companies had difficulty in obtaining their first subscriptions1 but most of them experienced trouble in collecting assessments and in obtaining additional subscriptions4 ,this timidity of investors1 it now appears1 was not without ground1 for few of the private canal companies were able to bring their construction work to completion1 and fewer still paid any dividends to their stockholders4 ,the ,middlesex canal was profitable until the building of a parallel line of railroad2 the ,montague canal1 also in ,massachusetts1 yielded a fair return during the first twenty years that followed its completion in #ahjj4 ,the ,delaware and ,schuylkill canal may be cited as a third exception4 ,but it early became evident that public works of the number and magnitude required could be constructed only at national expense4 ,as the constitution contains no direct provision for internal improvements1 the subject became a party question4 ,from the first ,congress had appropriated money for lighthouses1 public piers1 buoys and other aids to navigation1 and about such action there had been no dispute1 for it was agreed that these matters lay strictly within federal jurisdiction4 ,from the first1 also1 ,congress had been petitioned for appropriations for internal improvements4 ,most of these demands were local in character1 and so were easily disposed of2 but when the directors of the ,chesapeake and ,delaware canal asked ,congress to supply the funds which they had been unable to obtain from sales of shares1 the question was forced to an issue4 ,two facts were incontestable1 the general importance of the work1 and the ability of the national government to carry it on in view of the revenue surplus in the treasury4 ,in another way ,congress had already committed itself to the support of public works4 ,so long as the country was made up of states bordering on the ,atlantic seaboard1 improvements were matters of interest to all alike1 but with the admission of new states in the interior1 and the prospect of future accessions to the westward as the country expanded1 an element of injustice seemed to enter these appropriations1 which benefited the seaboard states at the expense of all4 ,the feeling of discontent was intensified by the fact that the favored states were more thickly settled1 and therefore better able to incur the expense4 ,with the admission of ,ohio1 however1 this was remedied by the establishment of the five per cent4 land fund1 and the self-interest of the seaboard was appealed to by the argument that the building of roads into the ,west would so stimulate sales of the public lands as to increase the national revenues4 ,the matter of national aid to internal improvements was again brought before ,congress in #ahaf by ,calhoun1 who presented a bill providing for the direct construction of roads and canals and the improvement of waterways out of a fund to be created by setting apart the bonus and dividends received by the government from the ,united ,states bank4 ,this bill1 which was drawn up by ,clay1 passed through ,congress in #ahag1 but it was vetoed by ,madison1 who1 though favorably disposed toward public works1 had inherited from ,jefferson a doubt as to the rights of ,congress to participate in their construction without a constitutional amendment specifically granting the authority4 ,and ,monroe1 holding the same opinion1 vetoed a bill for the repair of the ,cumberland road1 and submitted to ,congress a long statement of the principles involved in his decision4 ,in the meantime1 weary of waiting1 ,new ,york had succeeded in building the ,erie canal4 ,its success shifted the whole plan of promotion4 ,with credit established abroad1 internal improvements were taken up by the states1 and for the next two decades transportation interest centers in state funding4 ,it was during this period of struggle for means of transportation facilities adequate to meet the demands of those whose fortunes had been cast in the remote interior that the railroad became the subject of serious economic interest4 99 99 99 99 99 7,in subsequent chapters1 ,messrs4 ,cleveland ,powell trace the beginnings of the railroad1 the physical and financial difficulties that beset them at every turn2 the indomitable spirit with which they were projected1 promoted and built into every quarter of the ,union1 until through the investment of billions of private capital the ,united ,states has been furnished with the best system of internal transportation in the world4 ,to their pages the reader is referred for the continuation of this most interesting narrative47 ,,first ,,annual ,,report ,,of ,,the ,,chief ,,engineer ,,of ,,the ,,pennsylvania ,,railroad ,,company ,june #ab1 #ahdh4 ,by ,j4 ,,edgar ,,thomson4 ,chief ,engineer4 ,,engineer ,,department1 ,,pennsylvania ,r4 ,r4 ,,co4 ,philadelphia1 ,june #ab1 #ahdh4 ,to the ,president and ,directors of the ,pennsylvania ,railroad ,company3 ,,gentlemen--,i have the honor to communicate to you the following ,report of the operations of this ,department since it was committed to my charge1 now something more than a year4 ,under the organization of the ,engineer ,department1 as adopted previous to my acceptance of the office you have conferred upon me1 the ,road was to be divided into three divisions1 ,eastern1 ,western and ,middle3 ,edward ,miller1 ,esq41 as associate engineer1 was assigned to the ,western1 and ,w4 ,b4 ,foster1 ,jr41 to the ,eastern division4 ,these gentlemen had entered upon the survey of their respective lines1 previous to my arrival1 under instructions from the president1 each with two full corps of assistants4 ,the middle1 or mountain division1 not having been provided for1 ,i concluded after a full consideration of the subject that the interest of the ,company would be best promoted by so altering the organization as to abolish it altogether1 and extend the eastern and western divisions to the summit of the ,allegheny mountains1 the natural boundary between them4 ,under this arrangement1 the surveys have since been prosecuted4 ,the ,board having directed me to cause a location of the whole line1 from ,harrisburg to ,pittsburg1 to be made at the earliest practicable period1 ,i at once commenced a reconnoissance of that portion of the intervening country1 over which it seemed--from an inspection of a map of the ,state--that the ,road would probably pass1 for the purpose of determining the best plan of operations to carry out their views4 ,the ,legislature1 in their grant to the ,company1 wisely left the choice of a route for the ,road1 between its termini1 entirely free1 throwing upon the ,board the responsibility of selecting1 upon the wide field that was opened to them1 a line for their great work1 which would offer the cheapest railroad conveyance for the transportation of freight and the most expeditious for travel that could be selected between the west and the northern ,atlantic cities4 ,such a route1 it was believed from previous surveys1 lay within the borders of ,pennsylvania1 an expectation which has been fully justified by the results obtained from our examinations4 ,of the several routes proposed1 ,i found no difficulty--after a careful inspection of the plans of the various surveys1 made under the authority of the ,commonwealth1 and my reconnoissance of the country--in coming to the conclusion that the valley of the ,juniata offered advantages for a line which1 whether we consider the low gradients that may be obtained along it or its general directness1 the desiderata required1 is without a rival4 ,this stream has its source in the ,alleghenies1 and consequently severs1 as it flows towards the ,atlantic1 all the secondary mountain ranges that lie east of them1 and it heads opposite to the ,black ,lick and ,conemaugh rivers1 both of which sever those on the west1 leaving the main ,allegheny only to be surmounted1 which would have to be encountered upon any other direct route1 in addition to many of the inferior mountain ranges4 ,a more northern route1 by the west branch of the ,susquehanna 7which has its source beyond the ,allegheny mountains71 would have encountered less elevation at the principal summit1 but its great increased length precluded its adoption2 while1 on the other hand1 a southern route1 though not indirect1 was equally objectionable on account of the rugged character of the country1 and the high gradients necessary to overcome the numerous summits upon it4 ,a partial examination of one of the proposed southern routes was made1 which followed the ,cumberland ,valley ,railroad to near ,shippensburg1 and thence1 crossing to the west side of the valley at ,roxbury1 it passed through the ,blue ,mountain1 by a long tunnel1 into ,path valley2 thence1 following around the point of ,dividing mountain1 it crossed this valley and passed through ,tuscarora1 by another tunnel1 to the valley of ,augwick creek4 ,thence it would have been traced between ,broad ,top and ,sideling mountains1 and up ,dunning and ,bob's creeks to the summit of the ,alleghenies at ,bob's ,creek gap2 or1 turning west by ,bedford1 crossed the ,alleghenies at the head waters of the tributaries of ,castleman's river1 where the mountain is still much more elevated4 ,a line leaving the ,cumberland ,valley ,railroad at ,chambersburg1 and turning the end of ,blue mountain1 thence seeking the low depression at ,cowan's gap in ,tuscarora1 would be too circuitous to compare favorably with the bolder line from ,shippensburg1 already described4 ,but that line would encounter engineering difficulties of the most formidable character2 leaving out of view its objectionable gradients1 and considering it in reference to its cost1 and the local accommodations it would extend to a large portion of the ,state--at present in a great measure deprived of the advantages of the ,state improvements--7the strongest argument in favor of the route71 it will be found that equal accommodations could be extended to that region with a less expenditure of capital by placing the main stem of the road on the ,juniata1 and running a branch along one of the comparatively level valleys that lie between most of the parallel mountain ranges that we pass4 ,the facilities that railroads offer for extending their benefits to remote districts by means of lateral lines constitute one of their chief advantages over canals1 and should prevent the error1 too frequently committed in locating leading routes1 of turning from a direct course to accommodate local interests to the injury of the great object intended to be accomplished4 ,other modifications of the ,juniata route have been suggested1 and their merits fully considered1 but1 upon examination1 all of them tended to confirm our preference in favor of the river line4 ,these conclusions were communicated to the ,board1 and the general route recommended having been adopted by them1 ,i proceeded at once to make arrangements to have the line surveyed throughout4 ,for this purpose three additional corps of engineers were organized--one for ,mr4 ,miller's division1 under the immediate direction of ,mr4 ,g4 ,w4 ,leuffer1 to operate on the summit and western slope of the mountain1 and two upon ,mr4 ,foster's1 the first of which was placed in charge of ,edward ,tilghman1 ,esq41 to whom was assigned the district between ,lewistown and the confluence of the ,raystown branch and main ,juniata rivers4 ,the other corps was given in charge to ,s4 ,w4 ,mifflin1 ,esq41 a gentleman of well-known professional skill and experience1 to whom we committed the surveys of the region from the ,raystown branch to the summit of the ,alleghenies1 embracing the most important and difficult district upon the whole route to ,pittsburg4 ,these parties did not take the field until the close of ,july1 but they prosecuted their examinations with so much energy and success that we were enabled to determine the general line of the eastern division in season to place the most difficult points upon it under contract in ,november of last year4 ,while these arrangements were in progress1 the parties previously in the field were actively engaged in examining the country between ,harrisburg and ,lewistown4 ,at the instance of a number of gentlemen from ,perry county1 a line was tried up ,little ,juniata creek1 leaving the ,susquehanna at ,petersburg1 thence near ,bloomfield and along ,sherman's valley to ,concord gap1 where it passed the ,tuscarora mountain1 thence it followed ,tuscarora valley to ,shade creek1 and down that stream to ,augwick creek1 along the valley of which it was carried to ,drake's ferry on the ,juniata4 ,the advantage promised for this route was a considerable saving of distance4 ,the result1 however1 demonstrated that not only would we have had to encounter gradients running up as high as sixty feet per mile1 but the length of the line would be increased four miles by its adoption4 ,it was consequently abandoned4 ,after a careful examination of the country bordering on the ,susquehanna and ,juniata rivers1 a line has been located as far up as ,huntingdon1 which is believed to be the best that can be obtained4 ,if the valleys of these streams had not been preoccupied by other improvements1 a route would have been selected differing somewhat in its details from that adopted4 ,even for the short distance that we are brought into close proximity with them1 the cost of the grading of the ,road has been greatly enhanced by the confined ground we have been forced upon4 ,the located line commences at the ,harrisburg and ,lancaster ,railroad depot2 thence1 passing through ,harrisburg1 it follows the sloping ground between the canal and the capitol ridge four miles1 when it crosses the canal and1 touching the point of ,blue mountain1 recrosses and passes to the west side of the ,susquehanna river by a bridge #c1ffj feet in length1 and #dd feet above low water at grade line1 which enables us to place the road on the top of the bridge4 ,thence we pursue this bank of the river through the villages of ,duncannon and ,petersburg to the ,juniata1 along the southern side of which it is continued through ,newport and ,perrysville to a point a short distance above ,lewistown4 ,here the line crosses to the north side of the river1 and within a short distance recrosses1 to save nearly a mile of road1 and one hundred and eighty degrees of curvature1 together with some difficult ground along the bluff shores on the south side of the stream4 ,after regaining the southern side we follow the river slopes1 over favorable ground1 to ,mr4 ,harvey's1 about seven miles above ,waynesburg1 where the line again crosses to the north side1 and passing back of ,newton ,hamilton1 cuts through the neck of land in the great bend of that stream1 #dj feet in depth at the summit and #c1ajj feet in length at grade4 ,descending along the eastern slope of the river1 we once more cross it at ,shaeffer's aqueduct1 and continue upon its southwestern bank through ,jack's narrows1 without meeting any serious difficulties1 and finally pass to its north side1 along which it is continued through ,huntingdon to the ,little ,juniata1 above ,petersburg4 ,above ,huntingdon1 a preliminary location has been carried up the ,little ,juniata to ,logan's narrows1 at which point this stream divides ,bald ,eagle and ,brush mountains in its passage from ,tuckahoe valley4 ,along the ,little ,juniata1 from ,dorsey's forge to the ,narrows1 the line encounters much difficult ground1 owing to the circuitous character of the stream1 and the high hills and mountains which bound its course4 ,to obtain a route with easy curves we are forced1 within this distance1 to tunnel the point of ,tussey's mountain1 and to cross the river twelve times4 ,to follow the line recommended by ,mr4 ,schlatter through this region curves of #djj feet radius would have had to be resorted to1 which ,i deem wholly inadmissible upon a road of the importance of that you have in view4 ,at ,logan's ,narrows we reach the valley that skirts the whole eastern base of the ,allegheny mountains4 ,here it becomes necessary to determine the plan to be adopted to overcome the great barrier that separates us from the ,west4 ,if it is to be surmounted by a road1 with the gradients of the western division1 the ascent must commence at this point1 and gradually wind its way to the summit1 by an almost continuous gradient1 along the declivities of the mountains for nearly thirty-two miles1 crossing the several streams that issue from it1 by high bridges1 and cutting through or tunneling their dividing summits4 ,mr4 ,schlatter1 in his ,report to the ,canal ,commissioners1 estimates the cost of grading the road1 on this ascent1 at #a1dif1adf1 which ,i consider too low for a line with the gradient he adopted1 but with the increased maximum grade found necessary on the western division1 and a somewhat lengthened line1 it would probably prove sufficient4 ,upon my first reconnoissance of this portion of the country it occurred to me that its peculiar topographical features were lost sight of in the adoption of this plan of ascent1 which seemed to look to the single object of obtaining a line with a particular gradient1 without regard to the magnitude of the obstacles to be overcome to procure it2 while1 by pursuing a course from the ,narrows1 nearly in a direct line to ,sugar ,run gap 7which we shall hereafter show is the best point to cross the mountain71 the line would pass through a beautiful valley over comparatively favorable ground1 gradually gaining elevation through its whole course1 without exceeding the maximum inclination required on the line below1 until it reaches the summit of the valley at ,robinson's1 a distance of fifteen miles4 ,at this point we attain an elevation of #a1agd feet above tide1 leaving but #ihj feet to be overcome to reach the height found most suitable for passing the mountain1 which is attained by a continuous gradient of #hj feet per mile1 encountering no very formidable difficulties4 ,a resort to a gradient of #hj or more feet per mile is by no means an unusual expedient on leading railroads4 ,upon the ,western ,railroad1 in ,massachusetts1 their maximum gradient is #hc feet per mile4 ,on the ,baltimore ,ohio ,railroad they now have1 between the waters of the ,patapsco and ,potomac1 on each side of ,parr's ridge1 gradients of #hb feet per mile1 and from the greater elevation of the ,allegheny mountains at the place they must cross1 it is to be presumed that their gradients at that point will still be increased to a higher rate4 ,many other instances might be cited1 some running up to #abj feet per mile1 but it seems unnecessary to extend the list4 ,theoretically1 the power necessary to overcome a given height is the same at all inclinations of the plane of ascent1 but in practice1 it is to some extent dependent upon the kind of power to be applied4 ,in the case under consideration1 the locomotive steam engine will be the medium used1 where the power is carried with the train1 and forms part of the load to be moved1 consequently1 the cost of power on a plane ascending #hj feet per mile is greater than upon one of a more moderate inclination of equal height1 by the difference between the gravity of the engines required to carry the same load on both planes4 ,as a general principle this would be true when the lengths of the roads to overcome the same height are equal1 and it is necessary to carry the locomotives1 required for the high gradient1 over the same distance that they must run upon the low gradient4 ,but in one of these cases the maximum gradient due to the line below ,logan's ,narrows is carried to within #ab miles of the summit of the mountain--requiring extra power for that distance only--and in the other it ends #cb miles from it4 ,to explain more fully the relative value of the maximum gradients used on the different divisions of our ,road1 ,i have prepared the following table3 ,table headings3 ,col ,a3 ,division of ,road4 ,col ,b3 ,maximum ,gradient1 ascending westwardly1 per mile4 ,col ,c3 ,maximum ,gradient1 ascending eastwardly1 per mile4 ,col ,d3 ,gross load of a #bj ton freight locomotive1 exclusive of engine1 and a tender of #aj tons4 ,friction #h lbs4 per ,t4 ,adhesion 4 ,col ,e3 ,load of merchandise for a #bj ton freight engine1 the cars being estimated at #d_/ajths of their weight and load4 ,col ,f3 ,relative load of locomotive on each gradient1 level being unit4 ,col ,g3 ,number of locomotives of equal power necessary to carry the same load up each gradient4 ,a ,b ,c ,d ,e ,f ,g ---------------------------------------- ---------------------- ,from ,harrisburg #af #cdf4f #bjg4i #j4ecd #a4hg to ,lewistown1 #fj-g_/aj miles #h #ded4c #bgb4f #j4fig #a4db ---------------------------------------- ---------------------- ,from ,lewistown to foot of #ba #cjj4g #ahj4d #j4dfd #b4ae ,allegheny ,mts41 #aj #dad4f #bdh4h #j4fdj #a4ef #gb miles ---------------------------------------- ---------------------- ,from foot to summit of ,allegheny #hj #aje4f #fc4d #j4afc #f4ac ,mountains1 ,level #fdh4j #chh4h #a4jjj #a4jj #ab-c_/aj miles ---------------------------------------- ---------------------- ,from summit to #dg #agb4d #ajc4d #j4bff #c4gf ,pittsburg1 #ajf #ej #ej #afc4g #ih4b #j4beb #c4ie miles #eb4h #eb4h #aef4b #ic4g #j4bda #d4ad ---------------------------------------- ------------------------ ,it will be perceived from the foregoing table that three locomotives are fully sufficient to transport the same load up the #hj feet gradient that two will carry on the gradient of the western division1 and one on the eastern2 hence the practical working of the road on the two methods of ascent would be to run two locomotives with the load brought from below from ,logan's ,narrows to the summit1 say #ca miles1 up the #ej feet gradient2 while1 on the other1 the same engine that brought the load from ,harrisburg would continue with it to ,robinson's 7#ae miles71 where it would accompany the two destined for ,pittsburg to the summit of the mountain and return4 ,in the first case the engines together will have traveled #fc miles1 and1 in the other1 the three #ea1 leaving a difference in distance to be traveled by the moving power due to each full train1 from the east1 #aa miles in favor of the #hj feet gradient4 ,in practice it will therefore be seen--chiefly on account of the actual distance saved--that transportation can be afforded cheaper1 in this case1 on the #hj feet gradient than on the #ej1 without bringing into the estimate the interest on #hda1jjj that the latter would cost to obtain it more than the former4 ,under these circumstances we did not hesitate when the choice of routes was reduced to a selection between these two methods of overcoming the mountain1 to decide in favor of the line by ,robinson's1 which has the additional advantage of bringing us within #f-a_/c miles of ,hollidaysburg1 where a connection may be made with the ,allegheny ,portage by a branch line1 passing over favorable ground4 ,the distance from ,harrisburg to ,robinson's summit is #acb-b_/c miles2 upon the whole of this line1 the only extraordinary impediments to the easy graduation of the road bed are the bridge over the ,susquehanna1 a deep and long cut near ,newton ,hamilton1 and a tunnel #a1bjj feet in length through a point of ,tussey's mountain1 and in this distance the maximum ascending gradient to ,lewistown is #af feet per mile1 and descending #h feet4 ,thence1 to ,robinson's summit1 they are increased to #ba feet ascending1 and #aj-a_/h feet descending4 ,the descending gradients are generally so short that they will not be found1 in practice1 to decrease the load going east much below what is due to a fair working load for a locomotive on a level4 ,the maximum ascending gradient above ,lewistown is determined by the deep cut near ,newton ,hamilton4 ,the ascent of the ,little ,juniata seems1 however1 to require--to obtain an economical line--the use of this inclination1 without much intermission1 from ,dorsey's forge to ,robinson's summit4 ,below ,lewistown the gradients are fixed to accommodate the increased trade that would fall upon the line between that place and ,harrisburg1 without increasing the number of trains4 ,these low gradients insure to us the important advantages of a single pair of drivers for the passenger engines1 upon the eastern division1 and1 with these rates of inclination1 we are enabled to make the line conform to the natural features of the country 7above high water mark7 without decreasing the curvature below #iee feet radius1 except at the east end of the ,susquehanna bridge1 where a radius of #hhj feet has been admitted4 ,all of our efforts to save distance1 by deviating1 temporarily1 from the immediate valley of the river1 involved either the use of high gradients1 not justified by the distance saved1 or an increased cost that was equally unwarranted4 ,the beautiful valley of the ,kishacoquillas offered the greatest temptation to leave the river route2 but here we would have had to encounter gradients1 in both directions1 of #bf-d_/aj feet per mile1 a bridge over ,mill creek1 #a1bjj feet long1 #aaa high2 another over a small tributary of the ,juniata1 #hej feet long and #aej feet in height1 together with several others1 or embankments of great magnitude1 across ravines in the north slope of the river hills4 ,these difficulties1 added to #cdb feet of additional elevation to be surmounted at the ,allentown summit1 so greatly overbalanced the small increase of curvature and distance 7#g_/aj of a mile71 by the river route1 that it could not be adopted4 ,it was also ascertained that by the use of the maximum gradients required on the valley route1 the shortest line could have been procured by the river1 and at the least cost4 ,a fact1 conclusive in itself1 as to the proper route4 ,i deemed it unnecessary to make further instrumental examinations of the ,stone mountain route1 feeling satisfied that even if a line could be obtained in that direction which would approximate to an equality1 in an engineering point of view1 with the route selected--which1 from a reconnoissance of a portion of the line and an examination of the plots of ,mr4 ,schlatter's surveys1 ,i should consider quite improbable--that its additional cost would entrench so much upon the means of the ,company as to place it entirely out of the question4 ,a line was traced from ,huntingdon to the ,frankstown branch of the ,juniata1 below ,williamsburg1 across ,tussey's mountain1 by which a saving of distance could have been made nearly equal to the ,stone mountain route1 but its high gradients1 cost1 and the length of time that it would require to build the road over it rendered it equally objectionable4 ,the valley of the ,frankstown branch was also surveyed2 the route by it joining the ,little ,juniata line at ,robinson's ridge1 but it proved both longer and more expensive than the latter4 ,the searching examinations made of the whole region offering any chance for a more practicable route1 on the north or south of the ,juniata1 leaves no doubt upon my mind but that the best line has been procured for the eastern division4 ,its comparatively easy curvature and low gradients1 adapted in their inclination to the direction of the largest business1 and extending from the eastern terminus of our ,road to the foot of the great barrier that divides us from the west1 give it advantages that are not equaled by any other route proposed1 between the east and west1 and can not be too highly appreciated by the ,company4 ,before determining the point to pass the mountain1 a full examination of its crest was made1 from ,cedar ,swamp summit on the south1 to ,three ,springs ,gap at the head of ,moshannon creek on the north1 embracing a distance of #dd miles4 ,the following table will show the elevation1 above tide1 of each summit within that distance2 also1 that at ,emigh's ,gap1 on the northern route1 and at the head waters of ,castleman's river on the southern3 ,tabular ,statement of ,depressions of ,allegheny ,mountain4 ,name4 ,waters ,divided4 ,authority4 ---------------------------------------- ------------------------ ,summit of ,chesa4 ,ohio ,canal ,castleman's and ,potomac ,u4 ,s4 ,engineers ,albright's ,summit do4 do4 ,sand ,patch do4 do4 do4 ,j4 ,knight ,chambersburg and ,pittsburg ,survey ,h4 ,hage ,cedar ,swamp ,gap ,raystown ,branch of ,juniata and ,s4 ,fork of ,conemaugh ,s4 ,h4 ,long ,bob's ,creek do4 ,raystown ,b4 and ,conemaugh do4 ,big ,spring do4 ,juniata and ,conemaugh do4 ,laurel do4 do4 do4 do4 ,adams do4 do4 do4 do4 ,portage and ,summit ,juniata and ,clearfield ,c4 ,l4 ,schlatter ,sugar ,run ,gap ,s4 ,h4 ,long ,burgoon's do4 do4 do4 ,c4 ,l4 ,schlatter ,kittanning do4 do4 do4 do4 ,dry do4 do4 do4 do4 ,hamer's do4 ,little ,juniata and ,clearfield do4 ,schultz do4 do4 do4 ,e4 ,miller ,cock ,run do4 do4 do4 do4 ,maple do4 do4 do4 do4 ,bell's do4 do4 do4 do4 ,three ,springs ,gap ,little ,juniata and ,moshannon do4 ,emigh's do4 do4 do4 ,c4 ,l4 ,schlatter ---------------------------------------- ------------------------ table continued ,feet above ,feet below ,feet ,name4 ,sugar ,run ,sugar ,run above ,gap4 ,gap4 ,tide4 ---------------------------------------- --------- ,summit of ,chesa4 ,ohio ,canal #dgf #bgci ,albright's ,summit #ada #bdbd ,sand ,patch do4 #abi #bdab ,chambersburg and ,pittsburg ,survey #bfd #bedg ,cedar ,swamp ,gap #afj #bddc ,bob's ,creek do4 #bac #bdif ,big ,spring do4 #cad #beig ,laurel do4 #bbb #beje ,adams do4 #age #bdeh ,portage and ,summit #da #bcbd ,sugar ,run ,gap #j #bbhc ,burgoon's do4 #hj #bcfc ,kittanning do4 #ge #bceh ,dry do4 #fg #bcej ,hamer's do4 #agg #bdfj ,schultz do4 #ag #bbff ,cock ,run do4 #ee #bbbh ,maple do4 #fa #bbbb ,bell's do4 #ab #bbga ,three ,springs ,gap #ec #bbcj ,emigh's do4 #bdj #bjdc ---------------------------------------- -------- ,it will be perceived that the lowest point in the mountain1 except at ,emigh's1 is ,maple ,gap1 from which issues ,bell's ,run 7a branch of the ,little ,juniata71 on the east1 and ,sandy ,run of ,clearfield1 on the west4 ,this point is #fa feet below ,sugar ,run ,gap and could be further reduced #aej feet by a tunnel #gjj yards in length4 ,if the ground had been favorable beyond the summit1 this route would probably have offered the greatest advantages to cross the mountain1 but it opens westwardly upon the deep valley of ,clearfield1 a descent into which would involve the necessity of a resort to as steep a gradient on the west side of the mountain as that required on the east2 and the elevation thus lost would have to be regained by following up the valley to ,laurel ,swamp or ,munster summits1 in the ridge that separates ,clearfield from the ,conemaugh1 which is here the true backbone of the country4 ,any attempt to carry a line along the west slope of the mountain1 to avoid the descent to ,clearfield1 would1 from the rugged character of the ground1 prove impracticable1 without a vast increase in its cost1 length and curvature4 ,no other point offers equal advantages to cross the mountain until we reach ,sugar ,run ,gap1 which is #da feet below the ,portage ,railroad summit1 and may be reduced #abj feet more by a tunnel #b1jjj feet in length4 ,emigh's ,gap1 which is still lower than ,maple ,gap1 could not1 on account of its gradual slope1 be reduced by a tunnel of moderate cost1 and it is also too far north for a direct route to ,pittsburg4 ,south of the ,portage the ,alleghenies become the watershed of the ,union1 dividing the streams that flow into the gulf from those that empty into the ,atlantic4 ,they here assume a more elevated character than while separating only the tributaries of the ,susquehanna1 affording no opportunity to pass them by a line adapted to locomotive power--unless by a tunnel of immense extent--until we reach ,bob's ,creek ,gap4 ,the accompanying profile1 which exhibits the crest line of the mountain 7for #dd miles7 will give a more definite idea of the relative height of these summits4 ,the mountain on each side of ,bob's ,creek ,gap rises to a considerable height1 making it appear1 to a casual observer1 a very deep depression2 and1 from this circumstance1 it has generally been considered by the residents of the adjoining country to be the lowest pass in the ,alleghenies1 and1 as it falls off rapidly on either side1 it has also been supposed that it could be farther reduced by a tunnel of moderate extent4 ,the several surveys of the mountain1 however1 prove it to be #bab feet higher than ,sugar ,run ,gap1 and1 to reduce it to a level with the surface of the ground at the latter point1 which is #abj feet above the grade of the adopted line1 it would require a tunnel #a miles in length1 to be constructed under very disadvantageous local circumstances4 ,cedar ,swamp ,gap1 still farther south1 is #ec feet lower than ,bob's ,creek ,gap1 but it falls off on each side so gradually that it could not be reduced conveniently more than #dj feet4 ,neither of these points1 therefore1 which are the only passes worthy of notice south of the ,portage ,railroad that lie within the region over which a direct line to ,pittsburg must necessarily traverse1 afford depressions that will compare favorably with those farther north2 nor does the ground leading to them1 east or west of the mountains1 offer equal facilities to obtain a line of uniform ascent to the summit4 ,the distance from the ,conemaugh is too short to overcome the elevation with the gradient used on the western division1 and1 from the ,juniata1 the greater height to be ascended would continue the line so long upon the mountain steeps that it would be exceedingly expensive to procure a roadbed with a gradient even higher than #hj feet per mile4 ,from the foregoing description of the most favorable mountain passes1 it will be seen that ,sugar ,run ,gap offers the greatest facilities to cross the ,allegheny4 ,it now becomes necessary to consider in what direction the ,road can be carried thence to ,pittsburg4 ,from an inspection of a map of the ,state it will be seen that a straight line1 drawn from this gap to ,pittsburg1 will fall on ,munster1 ,beulah1 and follow the valley of ,black ,lick for nearly its whole extent1 and intersect the ,conemaugh near ,blairsville2 thence it crosses the country lying within the elbow formed by the ,kiskeminetas and ,allegheny rivers1 passing the ,loyalhanna and ,crabtree waters1 and following1 generally1 the high and broken ridge parting the ,allegheny and ,monongahela rivers4 ,that line1 which would approximate most nearly to this course1 would--all other things being equal--be the most desirable for the ,road4 ,the operations of the different corps1 on this division1 have been confined to surveys that were necessary to determine the point of crossing the mountain and to the regions between the ,conemaugh and ,pittsburg1 west of the ,chestnut ridge4 ,our examinations have not yet been sufficiently extensive to enable me to give a full description of that part of the country between the mountain and ,blairsville1 and ,i shall therefore leave it for a future report1 with the simple remark that1 from the information before me1 ,i am satisfied that a practicable line may be obtained by the valleys1 either of the ,black ,lick or ,conemaugh1 within the maximum gradient used upon the western division4 ,the district of country over which it will be necessary to carry the road from the ,conemaugh to ,pittsburg is one of remarkable intricacy4 ,it lies wholly within the coal measures1 and has1 at some period1 evidently been nearly a level plane of vast extent1 covered by the ocean4 ,the discharge of the waters from this wide spread field seems to have been sudden1 forming numerous circuitous channels in every direction1 cutting deeply into the soft horizontal strata of this region1 in their descent to the tributaries of the ,ohio1 leaving the intervening ridges washed into so uneven a surface as to render the passage of a railroad along them entirely out of the question4 ,a line following the ,conemaugh--which bears northwest from ,blairsville--to the ,allegheny would avoid this difficult country1 but the length of the route would be increased fully #ej per cent41 and it is1 therefore1 inadmissible4 ,a route with higher gradients than those adopted on the ,juniata throughout this division seems to be called for by the topography of the country4 ,in his report upon the western division1 ,mr4 ,miller gives the following account of the surveys1 conducted under his direction by ,messrs4 ,day and ,pemberton1 his principal assistants3 ,if a straight line be drawn from ,blairsville to ,pittsburg1 it will be seen that ,turtle creek is the only stream that approximates to the proper course of the road1 whilst the ,loyalhanna1 the chief tributary of the ,conemaugh1 crosses it nearly at right angles1 and ,spruce ,run1 ,roaring ,run1 ,porter's ,run1 ,beaver ,run and others intersect it at various angles of obliquity4 ,much time and labor were bestowed by ,mr4 ,schlatter and his principal assistant1 ,mr4 ,roebling1 upon the investigation of this district1 and their maps and profiles1 loaned to us by the ,canal ,commissioners1 have been of much service in our examinations4 ,from a careful investigation of ,mr4 ,schlatter's preferred route on the ground1 it appeared possible to avoid some of the most formidable obstacles which he encountered by adopting a higher gradient than his maximum of #de feet per mile1 and by a reasonable increase of distance at a few points4 ,our trial lines confirmed this1 and1 in the location made1 a maximum of #a4 in #ajj1 or #eb-h_/aj feet per mile1 has been used at several places4 ,the cheapness of fuel throughout the whole extent of the western division renders this increase of gradient less objectionable than elsewhere4 ,bituminous coal1 of the best quality1 is everywhere abundant1 and can be delivered at the depots at from #ef to #hd cents per ton4 ,the principal changes made in the route referred to in ,mr4 ,schlatter's report ,mr4 ,miller describes as follows3 ,upon the ,white ,thorn our line keeps the left bank1 entirely to its mouth1 avoiding a tunnel of #fjj feet1 leading into the valley of ,buck ,run1 and a high bridge over ,white ,thorn creek1 and reducing that over the ,loyalhanna1 from #ij to #ej feet in height4 ,west of ,buchanan's summit we run level round the hill1 between ,porter's ,run and ,beaver ,run1 avoiding the ,still ,house summit entirely1 where a tunnel of #a1jjj feet was proposed1 with a cut of #gj feet at its western end1 running out to grade in a distance of #a1gjj feet4 ,passing ,burnt ,cabin summit1 by a deep cut1 the line descends along ,turtle creek to the ,monongahela4 ,below ,murraysville the creek makes a double bend1 like the letter ,s4 ,the former line crossed one of these bends1 by a tunnel #fjj feet long1 whilst ours crosses the other by a short1 deep cut1 following a remarkable pass by which the hill is nearly cut through4 ,these changes have reduced many of the deep cuts1 avoided several bridges1 saved three tunnels1 and reduced the length of a fourth1 amounting in all to a reduction of #b1cjj feet of tunneling4 ,after reaching the ,monongahela1 two routes present themselves1 one following the bank of the stream to ,pittsburg1 and the other ascending along the slope of the river hills1 enters a valley leading by ,wilkinsburg and ,east ,liberty4 ,thence1 following this valley1 it descends ,two ,mile ,run1 and enters the city on the ,allegheny side4 ,the latter1 though the longest route1 and requiring gradients of #ej feet per mile1 has been adopted as it presented the only apparently feasible route by which a connection could be formed with a road extending towards the great west4 ,the comparative cost of grading and damages1 upon the two lines1 would be rather in favor of the route adopted4 ,a line has also been located from the junction of ,turtle and ,bush creeks1 which passes up ,bush creek and through ,greensburg to ,bernhard's summit1 thence by the valleys of ,fourteen ,mile ,run1 ,sauxman's and ,magee's ,runs1 to the ,conemaugh1 at the gap through ,chestnut ridge4 ,if the ,conemaugh route1 by ,johnstown1 should be adopted1 the line by ,greensburg will be about #c miles longer than that by ,turtle creek1 but passes east of the ,loyalhanna1 over much more favorable ground than any other line examined4 ,its advantages1 in relation to the local trade of a rich and populous section of country1 west and east of ,chestnut ridge1 through the gap formed by the ,loyalhanna1 give it strong claim for consideration4 ,whether the increased length of the line and the difficulties west of ,greensburg will be sufficient to counterbalance these local advantages we will leave undecided until the comparative estimates have been fully made out4 ,another line was traced1 leaving ,greensburg and passing into ,ligonier valley1 through ,chestnut ridge1 at the ,loyalhanna ,gap1 thence north of this ridge along ,coalpit and ,kendrick's ,runs1 to the ,conemaugh1 which resulted unfavorably4 ,further examinations will be made through ,ligonier valley1 striking the ,conemaugh higher up4 ,the ,black ,lick and the country between it and the ,conemaugh will also be examined during the season4 ,the following summary statement will exhibit the estimated cost and distances of a continuous railroad from ,harrisburg to ,pittsburg1 via ,johnstown and ,blairsville1 graded for a double track1 and a single track and turnouts laid4 ,the estimate is based on prices that are believed to be ample to finish the road in a substantial manner4 ,if the work should be pushed with cautious energy1 it may be completed for a somewhat less sum4 ,the width of the roadbed at grade line in thorough cuts of earth is #cb feet1 in rock #bf feet and on embankments #be feet4 ,dist4 ,items4 ,places4 in ,cost4 ,miles4 ,dollars4 ---------------------------------------- ---------------------------- ,between ,harrisburg and ,lewistown #fj4gj #gje1faj ,lewistown and ,huntingdon #cf4gj #ehb1cdb ,huntingdon and ,robinson's #ce4bj #gjc1jjj ,graduation ,robinson's and ,sugar ,run ,gap #ab4be #fee1jjj ,sugar ,run ,gap and ,johnstown #bh4ej #hge1jjj ,johnstown and ,blairsville #bh4 #dde1jjj ,blairsville and ,brush ,creek #cc4 #ibe1jjj ,brush ,creek and ,pittsburg #ae4 #ade1jjj ----------------- ,amount #bdi4ce #e1jce1ieb ------- ,superintendence1 c4 #bej1jjj ,contingencies #cej1jjj ,single track1 including an average of #dej ,superstructure4 feet of turn-outs1 per mile #b1gib1gbb ,interest account #eea1jjj ,land damages and fencing #agj1cbf ---------- ,grand ,total #i1aej1jjj ---------------------------------------- ----------------------------- ,that part of the line below ,huntingdon has been located permanently2 thence to ,logan's ,narrows the calculations are based on a preliminary location1 and between this point and ,blairsville upon an experimental survey1 with liberal allowances for contingencies4 ,between ,blairsville and ,pittsburg the road has been carefully located4 ,upon that portion of it1 between ,blairsville and ,turtle creek1 gradients of #eb-h_/aj feet per mile have been admitted1 which may be reduced to #ej feet per mile1 by the expenditure of an additional sum of #dj1jjj4 ,our measurements of distances commence at the depot of the ,harrisburg and ,lancaster ,railroad ,company1 #ajf miles from the corner of ,vine and ,broad streets1 in the city of ,philadelphia1 and terminate at the intersection of ,liberty street1 in the city of ,pittsburg4 ,those made for the ,commonwealth1 under the direction of ,mr4 ,schlatter1 began at ,state street1 in ,harrisburg1 and ended at ,two ,mile ,run1 on the ,monongahela river1 giving a difference in favor of ,mr4 ,schlatter's line of about #a-h_/aj miles in the points of starting4 ,between ,blairsville and ,pittsburg our distance has been actually increased #b-h_/aj miles over that proposed by ,mr4 ,s41 after making allowance for about #f_/aj of a mile of an unaccountable discrepancy in the two measurements4 ,this increased distance is incurred to save three tunnels1 and other expensive work1 amounting1 together1 to #bhj1jjj1 or #ajj1jjj per mile4 ,the whole difference between ,mr4 ,schlatter's and ,mr4 ,miller's measurements1 supposing the points of starting and ending to have been the same1 is #d-c_/aj miles4 ,the difference between the points of starting of the two surveys1 on ,mr4 ,foster's division1 is about #b_/aj of a mile4 ,from ,harrisburg to ,huntingdon we lose1 by following the river route4 #g_/aj of a mile,a on ,mr4 ,schlatter's line1 and save1 from thence to the summit of the mountain1 about four miles4 ,as a connection with the ,allegheny ,portage ,railroad would insure to us most of the advantages of an independent road to the western base of the mountain1 it is evidently the policy of the ,company to make it at the earliest practicable moment4 ,our location falling within #f-a_/c miles of that road1 it becomes a very small matter to effect a junction with it4 ,if the present means of the ,company1 however1 would justify the expenditure1 the connection could readily be made at the foot of ,plane ,no4 #d1 on the west side of the mountain1 thus saving #g out of #aj of the inclined planes4 ,this could be effected for the additional sum of #a1bej1jjj1 or for #iej1jjj a junction might be made at the summit of the ,portage1 avoiding the five eastern planes4 ,the branch to1 or above1 ,hollidaysburg is1 however1 the cheapest and most speedy way of effecting the connection1 and when our road is carried over the mountain it will remain a good feeder to the main line1 and a fair investment of the capital of the ,company4 ,the following is an estimate of the cost of a continuous road from ,harrisburg to ,pittsburg1 in connection with the ,allegheny ,portage ,railroad1 graded for a double track throughout1 except the branch to ,hollidaysburg3 ,dist4 ,items4 ,places4 in ,cost ,miles4 ,dollars4 ---------------------------------------- ---------------------------- ,from ,harrisburg to ,robinson's #acb4fg #a1iij1ieb ,robinson's to ,hollidaysburg #f4cc #cb1jjj ,graduation ,hollidaysburg to ,johnstown #cf4fg ,johnstown to ,pittsburg #gf4jj #a1eae1jjj ----------------- ,total #bea4fg #c1ecg1ieb ------- ,superintendence and ,contingencies #dai1ged ,superstructure4 ,including turn-outs on #bae miles #b1djh1jjj ---------- ,cost of ,road #f1cfe1gjf ,interest account #dej1jjj ,land damages and fencing #aed1bid ---------- ,grand ,total #f1igj1jjj ---------------------------------------- ----------------------------- ,to the above amount should be added1 for the purchase of depot grounds1 erection of warehouses and shops1 and the construction of cars and locomotives1 as follows3 ,warehouses1 including ground at depots #dge1jjj4jj ,shops and machinery #ahe1jjj4jj ,locomotives #eaj1jjj4jj ,passenger and burden cars #hbj1jjj4jj ------------ ,total #a1iij1jjj4jj ,making the whole cost of the ,road1 graded for a double and a single track laid1 including outfit1 #h1ifj1jjj4jj4 ,it will not be necessary to expend the whole of this amount until some time after the ,road is in use to ,pittsburg4 ,as the business increases the turnouts must be lengthened1 depots and shops enlarged1 and the number of locomotives and cars added to4 ,these will not reach the sum estimated until probably four years after the ,road is completed1 in connection with the ,allegheny ,portage4 ,we shall also reduce the cuttings and embankments to a single track width1 wherever the character of the excavations or a deficiency of material for embankment will justify the curtailment4 ,this will effect a saving1 in the first outlay1 of about #dej1jjj1 which will not be required until the business demands a double track4 ,the expenditure for the outfit1 when the ,road is opened through1 will not exceed #a1cdj1jjj1 leaving #fej1jjj of the estimate for this item to be disbursed after the ,road is finished1 to meet the demands of the increased business for the time stated4 ,this will leave the cost of the ,road and outfit1 when opened for use1 in connection with the ,portage ,road to ,pittsburg1 as follows3 ,cost of ,road1 with single track and turn-outs1 as estimated #f1cfe1gjf4jj ,less estimated cost of unfinished grading required to prepare the ,road for double track #dej1jjj4jj ------------- ,leaving cost of grading and superstructure of ,road #e1iae1gjf4jj ,to this add interest account #dej1jjj ,and land damages and fencing #aed1bid -------- #fjd1bid4jj ,also1 cost of locomotives1 shops1 depots and cars #a1cdj1jjj4jj ------------- ,total #g1hfj1jjj4jj ,the ,board having wisely determined in no event to enter into engagements beyond their ascertained means1 ,i have thought it best1 thus early1 to present an estimate of the cost of the whole work for their guidance4 ,it will be recollected that the estimate for the grading is made1 in part1 upon experimental surveys1 with full allowances for contingencies4 ,by the close of the year we hope to be able to give an estimate of the whole ,road1 in detail1 from actual location1 which may show a somewhat reduced cost4 ,under the contemplated connection with that road1 the ,allegheny ,portage becomes an important part of our line1 and1 for the information of the ,board1 ,i insert the following description of it1 extracted from a pamphlet written by ,s4 ,w4 ,roberts1 ,civil ,engineer3 ,the ,portage ,railroad consists of eleven levels1 or graded lines1 and ten inclined planes4 ,the ascent from ,johnstown to the summit is #a1aga4eh feet1 in a distance of #bf4ei miles1 and the descent1 from the summit to ,hollidaysburg1 is #a1cih4ga feet in a distance of #aj-a_/aj miles4 ,there are five inclined planes on each side of the mountain1 varying1 in inclination1 from #d #i to #e #ea1 or from #g4be feet to #aj4be feet elevation to each #ajj feet base4 ,they are numbered eastwardly1 the one nearest ,johnstown being ,no4 #a2 that nearest ,hollidaysburg1 ,no4 #aj4 ,the following table shows the length1 rise and fall of each ',level' or grade line1 and each inclined plane4 ,feet ,level ,no4 #a ,from ,johnstown to ,plane ,no4 #a #d4ac miles,rise1 #aja4df ,plane #a ,ascending #afjg4gd feet #aej4jj ,level #b ,long ,level #ac4jf miles #ahi4eh ,plane #b ,ascending #agfj4dc feet #acb4dj ,level #c ,ascending #a4di miles #ad4ej ,plane #c ,ascending #adhj4be feet #acj4ej ,level #d ,ascending #a4ij miles #ah4hj ,plane #d ,ascending #bfie4id feet #ahg4hf ,level #e ,ascending #b4ef miles #be4hj ,plane #e ,ascending #bfbh4fj feet #bja4fd ,level #f ,summit of ,mountain #a4fb miles #ai4jd -------- ,total rise #aaga4eh ---------------------------------------- -------------------------- ,feet ,plane ,no4 #f ,descending #bgac4he feet ,fall #bff4ej ,level #g ,descending #ae miles #j4jj ,plane #g ,descending #bfee4ja feet #bfj4ej ,level #h ,descending 4#ff miles #e4hj ,plane #h ,descending #caaf4ib feet #cjg4fj ,level #i ,descending #a4be miles #ab4jj ,plane #i ,descending #bgbj4hj feet #ahi4ej ,level #aj ,descending #a4gf miles #bi4eh ,plane #aj ,descending #bbie4fa feet #ahj4eb ,level #aa ,to ,hollidaysburg #c4gb miles #adf4ga -------- ,total fall #acih4ga ---------------------------------------- ------------------------- ,in conformity with resolutions of the ,board1 eighteen miles of the grading on the eastern and fifteen on the western ends of the ,road were placed under contract in ,july last4 ,in ,november the contracts upon the eastern division were extended to ,lewistown1 and on the #agth ult41 to ,huntingdon1 together with a few miles of heavy work along the ,little ,juniata1 embracing altogether #ajf miles4 ,very little of the grading1 on the western division1 has been executed1 as there appeared to be no sufficient reason for pressing that portion of the ,road until the means of the ,company would justify a larger expenditure upon it than they have heretofore4 ,the work upon the eastern division has been retarded from the scarcity of labor4 ,time seems to be required to collect the necessary force upon the line4 ,with the exception1 however1 of the ,susquehanna bridge1 the grading will be prepared for the superstructure1 to ,lewistown1 this year4 ,the masonry of that important job was first allotted to contractors4 ,the principal of the firm1 though highly recommended by the officers of the ,reading ,railroad1 proved unequal to the task he had undertaken1 and their contract was abandoned4 ,in consequence1 the remnant of last season1 after the contract was let1 was mostly lost4 ,the work has been re-let to ,holman1 ,simons and ,burke1 who have carried it forward satisfactorily4 ,the prevalence of high water1 since the season for laying masonry commenced1 has prevented as much progress1 at this time1 as could have been desired2 but we still entertain hopes that it will be completed before the ensuing winter4 ,if this is accomplished1 the ,road can be opened to ,lewistown next spring4 ,under any ordinary circumstances it will be finished to ,huntingdon 7#ih miles7 by the close of navigation in #ahdi--;a point as low down as we may anticipate a profitable use of the ,road from4 ,our arrangements have been made with a view to the completion of the ,road to the ,allegheny ,portage1 early in the spring of #ahej4 ,an earlier period could not be fixed1 owing to the magnitude of some of the work on the ,little ,juniata2 a portion of which1 embracing the tunnel1 through a point of ,tussey's mountain1 was located and contracted for last ,december1 to avoid delay and a premature expenditure of capital on the lighter work1 which would have followed a general letting of the whole ,road at that time1 or since1 even if it could have been prepared for contract in season4 ,if sufficient means shall be obtained to prosecute the western division1 ,i would recommend that the heavy portions of the work1 between the ,conemaugh and the confluence of ,brush and ,turtle creeks1 should be placed under contract1 together with the grading1 continuously from the ,portage road to the point of divergence of the line from that river towards ,pittsburg1 if the ,conemaugh route is adopted4 ,when the connection is made with the ,portage ,railroad1 from the east1 there will then be a continuous railroad from ,philadelphia to ,johnstown1 #bhb miles in length1 and1 if opened at the same time to near ,blairsville1 it will be extended to #caj miles1 with only #dc miles of turnpike thence to ,pittsburg1 or #ge miles of canal navigation1 giving a line of communication1 with the ,ohio river1 far superior to any railroad route existing1 or any that will at that time be built4 ,on freight destined to the interior of ,ohio but one transshipment will then be necessary4 ,the canal boats1 loaded at the terminus of the ,road1 can be conveyed to any point upon the ,ohio canal4 ,if your ,road possesses no other source of revenue than the local travel and transportation of the rich and populous region to be traversed by it--secured1 as it will be1 from competing lines by natural barriers stretching out on either side from the ,susquehanna to the ,potomac--they would be sufficient to justify its construction4 ,the influence of the ,pennsylvania canal has called into activity all the elements necessary to render the enterprise profitable1 and1 in consequence1 it will be more successful with that improvement1 as a pioneer rival1 than if it was now to enter upon an unoccupied field4 ,whatever may be the effect of your work upon the business of the canal--and ,i do not believe it will be injurious--there can be no doubt but that it will add very materially to the revenues of the ,commonwealth4 ,important as the local sources of revenue are to the ,company1 they will afford but a limited amount of business compared with that to be derived from the great ,west4 ,the route of your improvement is directly on the line that would be most desirable for a railroad to pass from ,st4 ,louis1 or the confluence of the ,mississippi and ,missouri rivers1 through the center of the wealth and enterprise of the ,mississippi valley to the ,atlantic4 ,with a map of the ,union before you1 it will be found to be impossible to draw a line upon it that would accommodate so large an amount of population1 or an equal extent of fertile country4 ,through the broad bed of mountains that divide the ,atlantic from the ,western ,states--traversed by our route for #aij miles--natural gorges are found1 cutting all of them to their bases1 except the ,allegheny1 which is passed with comparatively easy gradients1 and without encountering difficulties of a very unusual character4 ,these favorable features of the country give to us a line which is the shortest and best that can be obtained between these sections of the ,union1 and insures to the ,company the whole of the travel and light transportation1 with much of the heavy trade1 destined to ,philadelphia and points north of this city1 of the vast region between a line along the southern shores of ,lake ,erie1 touching ,lake ,michigan1 and extending to the far ,west1 and the immediate valley of the ,ohio river4 ,the distance from ,cleveland to ,new ,york being #hj miles shorter by this route than by the ,new ,york and ,erie ,railroad1 much of the travel embarked upon the lakes for that city from the north and west must also be diverted to this line4 ,in view of these circumstances1 can a reasonable doubt be entertained by any one as to the profitableness of the stock of the ,pennsylvania ,railroad ,company8 ,its natural position must give to it more than sufficient business to make it yield large profits4 ,indeed1 ,i confidently advance the opinion that when the ,road shall have been completed that it will not be a question whether it will pay an interest on its cost1 but to what point the rates of freight and passage shall be reduced to give the ,company ample revenues and at the same time make the work most extensively useful to the public4 ,dividends from its revenue can be made of #f1 #h or #aj per cent4 by changing the rates of freight and passage1 at the discretion of the ,directors4 ,from some experience in the management of the business of other roads1 much less favorably situated than this1 ,i feel no hesitation in making this prediction4 ,i look upon the result as one upon which there can be no doubt entertained4 ,the inquiry may be made1 ,if this ,road must prove a profitable investment1 why other works in ,pennsylvania1 favorably located1 have not yielded remunerating dividends to their proprietors8 ,in reply it can be stated that there is no important work1 leading from ,philadelphia1 that ought not now to divide large profits1 if their stock and funded debts exhibited a fair cash value of the property represented4 ,most1 if not all1 of these works1 were commenced with inadequate capital1 for the object in view1 and from the anxiety of the stockholders to realize the large profits promised on their completion1 and the public to enjoy the use of the improvement1 they have been pressed forward faster than true economy1 or the funds of the company1 would justify4 ,engagements were made1 relying upon fortune1 or accident1 to provide the means to meet them4 ,these resources failing1 they were thrown upon the mercy of either the contractors or the money lender4 ,and1 in consequence1 the cost of the works has been rolled up to an amount not anticipated1 and1 in many cases1 debts incurred1 under the pressure of the moment1 in the most objectionable shape1 to meet which the whole of the receipts of the companies have necessarily been mortgaged4 ,in ,new ,england1 and also in ,new ,york--where railroads have1 in many cases1 been deprived of the privilege of carrying freight--judiciously located roads have invariably paid well4 ,their success has not been caused by the exercise of any peculiar skill or economy in their management1 as generally supposed1 for1 in this respect1 though they stand deservedly high1 there is none that conduct their business1 under all circumstances1 with as much economy as the ,baltimore and ,ohio ,railroad1 or some other southern companies4 ,in closing this communication it gives me much pleasure to acknowledge the zealous and cordial co-operation that ,i have received from my ,associate and ,assistant ,engineers in carrying on the important work that you have committed to our charge4 ,respectfully submitted1 by ,your obedient servant1 ,j4 ,,edgar ,,thomson1 ,chief ,engineer4 ,note4--,by way of ,then and ,now contrast1 the income account of the ,pennsylvania ,railroad ,company for the year ending ,june #cj1 #aiji1 from ,interstate ,commerce ,commission ,bulletin ,no4 #e is subjoined4 ,revenues and ,expenses of the ,pennsylvania ,railroad ,company for the year ending ,june #cj1 #aiji4 ,miles operated #d1jhg ,operating revenues #ach1ddi1aai ,from ,freight #ajj1cef1afj ,passengers #bh1ggd1bha ,other transportation #h1dch1igb ,non-transportation #hgi1gjf ,operating expenses #ig1ajg1gea ,for ,maintenance of ,way and structures #af1ejc1bdf ,maintenance of equipment #bg1bbe1hhg ,traffic #a1hdd1cfe ,transportation #dh1jfd1agf ,general #c1dgj1jgg ,net operating revenue #da1cda1cfh ,taxes7a7 #b1cgj1cad 7a7 ,exclusive of some #a1gij1jjj taxes paid on leased lines4 ,observe that the amount expended on maintenance of way and structures in #aiji was more than double the total estimated cost of the road from ,harrisburg to ,pittsburg in #ahdh4 ,the amount expended during the calendar year #aiji in revision of grades and alignment1 and for additional tracks1 yards and other terminal facilities1 abolition of grade crossings and improvement of equipment was #e1eha1hji1 exclusive of #d1jjj1jjj applied towards construction of ,new ,york ,terminal ,extension4 ,this road as it exists today is a living monument to the sound policy of the ,american railway practice of a dollar for improvements for every dollar of dividends4 ,s4 ,t4 ,,footnote3 ,a ,by an alteration of the line1 since made1 the distance lost by the river route is reduced to four-tenths of a mile4 ,,railways ,,and ,,the ,,pacific ,,northwest ,,by ,,james ,j4 ,,hill4 ,on the occasion of the completion of the ,spokane1 ,portland ,seattle ,ry41 connecting ,portland with ,british ,columbia1 ,mr4 ,hill delivered three noteworthy addresses at ,portland1 ,november #f1 #aijh1 at ,tacoma ,november #i and ,seattle ,november #aj4 ,the speech at ,portland was an earnest plea for a more intelligent and economical cultivation and conservation of the vast agricultural resources of the ,pacific northwest2 the other two related largely to the part played by the railways in the development of that territory4 ,the portions of these addresses which follow are taken from the full reports which appeared in the ,seattle and ,tacoma newspapers the next days4 ,,mr4 ,,hill ,,at ,,seattle4 ,after ,mr4 ,hill had been introduced and warmly applauded as the ,empire ,builder1 who had been intimately associated with the development of the northern tier of states from the ,lakes to the ,pacific ,ocean1 and he had acknowledged his obligation to the indomitable spirit of ,seattle and its people1 he began his address by disclaiming the ownership of the ,great ,northern railway4 ,fifteen thousand people own it4 said he4 ,the average holding is about #abj shares4 ,over #f1jjj women are owners in the ,great ,northern railway1 and ,i have to manage their affairs4 ,then he proceeded3 ,it is three years since ,i was here1 and ,i never expected that three months would pass without my coming to ,seattle1 but three years have passed and what do ,i find8 ,i think the city in three years has doubled4 ,i think it has doubled in everything that goes to make a city4 ,just look at the streets lined with commercial houses which would be a credit to any city in the world4 ,it is far beyond what ,i expected to find1 and ,i think that ,seattle has a future4 ,seattle is entitled to her growth1 and if the same spirit that has moved her citizens in the past continues1 if the mantle of the older men falls on the shoulders of the younger men1 ,seattle cannot help but thrive4 ,you have behind you one of the richest states in the ,union2 one of the very richest4 99 99 99 99 99 ,,development ,,of ,,railways4 ,now1 to come back to the relation of the railway to the development of the country4 ,next to the cultivation of the soil itself1 in the amount of money invested and in the importance to all the people1 is the railway property of this country4 ,it is on a little different basis1 ,i am sorry to say1 from the general attitude of the public1 from any other property4 ,from what ,judge ,burke says as to the ,golden ,rule1 if you can have it fairly applied1 it would make our hearts glad4 ,we frequently hear about railroad watered stock4 ,it is a hackneyed phrase which is used with which to catch gudgeons1 and it has caught a great many4 ,now1 let us see4 ,you can open a bank--five of us sitting here1 if we had the money1 could open a bank1 put up the building and draw our checks1 and that is disposed of4 ,we have a million or a million and a half of capital1 and1 conducting the business of the bank within the law applied to bankers1 we can earn any dividend we like1 and we can divide it1 even up to #dj or #ej per cent41 and it has been done1 and nobody finds any fault4 ,now1 we might start a manufacturing establishment and we can divide any profits that we can legally make up to #dj or #ej or #ajj per cent41 or we can start a mercantile establishment and conduct it so as to bring any profit--there is no limit so long as we are within the laws of trade4 ,but take the railroad4 ,now1 remember1 you can run your manufacturing establishment twenty-four hours a day1 or you can run it one day in the week1 or you can run it half the time and you can close it and it will not affect you1 or you need not run it at all2 and if you do not like the business you can dispose of it4 ,you can liquidate your bank and go out of business2 and so with the mercantile establishment1 you can close it at any time4 ,but when you have invested your money in a railway1 you have undertaken an obligation to serve the public2 you have taken a business risk that is greater than the business risk of any other business in the world4 ,if you do not run it1 move your trains with regularity1 move your trains so as to accommodate the business1 the courts will appoint a receiver and will issue receiver's certificates to an extent that would wipe out your investment4 ,if there were anything left they would hand it back1 but the chances are altogether that if you could not make it pay the receiver could not4 ,,railroad ,,biggest ,,risk4 ,now1 ,i mention this simply to show that the business risk in building or operating a railway is greater than it is in any other business4 ,there is nothing guaranteed1 and sometimes you are told what appliances you may use2 you are told what you must not use2 you are told whom you can hire1 and you are told when you can discharge him1 and it has been at least hinted as to what you should pay him--what his wages and condition of work shall be4 ,so that the only privilege that was left for the railroads was to pay the bills4 ,that they are always expected to do1 and it would be a great disappointment if they were not able to4 ,in the section of this country1 the portion of this country east of ,chicago1 ,i do not know anywhere north of the ,ohio ,river1 where a railroad1 built with the greatest care and economy1 could pay one per cent4 on its cost2 that is1 a new road1 built between any of the large cities of the west to the large cities of the east1 paying the present price of real estate and terminals and the cost of construction1 the cost of eliminating great profits1 the cost of the necessary expenditure of money to make life and limb safe4 ,take1 for instance1 a railroad from ,new ,york to ,chicago4 ,i had curiosity enough to inquire from the leading real estate man who was getting the additional property for the ,new ,york ,central1 their terminals1 what it would cost from ,thirty-eighth street to ,harlem ,river1 a narrow strip of blocks on the ,east ,side1 say ten blocks1 from ,thirty-eighth to ,forty-eighth street1 to be used as a terminal4 ,he told me it ought to be secured for #bjj1jjj1jjj1 but he would not like to take the contract4 ,now1 follow that up through ,albany and ,syracuse1 ,rochester and ,buffalo and ,erie and ,cleveland and on to ,chicago1 and if you can get into ,chicago and get out of ,new ,york with any reasonable cost ,i want to say that when your road was finished1 at the present rate1 it could not pay #a per cent4 on what it cost in money4 ,,no ,,room ,,for ,,more ,,roads4 ,now1 what chance is there for more roads between ,new ,york and ,chicago1 or between any ,atlantic city and any large city in the west8 ,during the ten years from #ahih to #aijh the railroad mileage in the ,united ,states increased about #bd per cent41 the passenger business increased #abe per cent41 and the freight business increased #adh per cent4 ,the additional burden was placed on the railways1 with an increase of over #adh per cent4 in the tons moved4 ,what is it costing the ,pennsylvania road to get into the ,city of ,new ,york8 ,i do not know the exact figures1 but ,i have seen it estimated from time to time at one hundred millions of dollars to secure passenger facilities in the ,city of ,new ,york4 ,when ,i think of these things and see what you have here ,i think that we have reason to congratulate ourselves1 and ,i think that we had a narrow escape from being compelled to do our business west of ,commercial street in place of where we are today4 ,there are no places that ,i know of today where there is any room or any use for any other large railway enterprise4 ,the ,milwaukee ,st4 ,paul are coming to the ,coast--and we are glad they are there4 ,at different times1 when people largely interested in that enterprise talked with me1 ,i said1 ',by all means build to the ,coast2 extend your road--if you do not1 somebody who has more enterprise than you will take the business and will keep it on their own rails and you will not get a share of it4' ,but when that enterprise is finished1 ,i do not know1 north of the ,platte ,river1 where there is room for another railroad or occasion for one4 ,there will be branches built1 and they are necessary for the development of the country4 ,you had expended1 and there is being expended now1 a very large sum during the last two years4 ,the ,northern ,pacific and the ,great ,northern1 within the ,state of ,washington1 have spent millions of dollars between ,portland and ,spokane4 ,it ought not to frighten you2 it will not wipe you out2 you have your roots deep in the ground and they will stay there4 ,,tacoma ,,is ,,waking4 ,now1 ,i find in summing up the present population of the new country between ,blaine and ,vancouver--,portland is on the other side of the ,columbia1 although1 fortunately1 the state line does not limit our commerce or our right to trade with each other--there are over #gjj1jjj people living on the line of the railway between ,blaine and ,vancouver4 ,portland claims #bjj1jjj1 and ,i feel sure that she must be near that figure4 ,portland has grown rapidly1 and ,i think possibly the young men have taken a sheet out of your book4 ,there was a time when they were altogether too wealthy in ,portland4 ,every man had business of his own to attend to and was so deeply engaged in it that he overlooked the business of the city4 ,they did not take hold4 ,you could come there if you were willing to bear all the expense and take what you could get4 ,but ,portland has had an awakening1 and ,i believe that ,portland1 notwithstanding its remoteness from the sea1 will have a good growth4 ,it has a good country behind it and there is no reason why it should not have a good growth4 ,another city down here where we were beautifully entertained last night1 ,tacoma--,i remember when we came out here they really did not need us and we did not want to force ourselves on them1 and so we stayed right here4 ,but ,i think1 and ,i hope1 that ,tacoma is getting its eyes open and that it wants more railways4 ,we don't ask much2 we want the privilege of a place for foothold1 a place to do our business at our own expense2 and ,i think that we will probably succeed in getting it--,i hope so4 ,,growth ,,pleases ,,him4 ,i wanted to come back to your city here4 ,i was more than surprised at your growth and ,i am more than gratified4 ,i rather gathered that you had grown fast and that possibly you wanted a resting spell1 but ,i don't see that there is any rest for you now4 ,i think that you will go on as you have begun1 and ,i was more than glad to see what you are doing in the way of adjusting your street grades4 ,it is inexpensive2 the burden may be hard upon some people1 and difficult to carry1 but it will cost infinitely less to do it now than in five or ten years1 after those streets were lined with buildings that had cost a great deal of money and you could not afford to throw them away4 ,lay your foundations right and the structure will take care of itself4 ,it will grow by degrees1 and1 when it is finished it will be part of a complete whole and you will be glad you did it4 ,we have a good many communities to take care of along our railway1 and with every one of them we have always the feeling that their prosperity means our prosperity4 ,they have to earn the money before they can pay it to us1 and what they do pay us we think is a small part2 but we expect the railway business must depend upon close management and small savings4 ,take the dividend of the ,great ,northern railway4 ,three copper cents in moving a ton of freight ten miles pays our dividends4 ,a ton of freight on a country road would be a fair load for a farmer's wagon1 and ten miles would be a fair day's work if he returned the same night4 ,we do that4 ,our dividend amounts to about #c cents--a little less than three copper cents--for moving that load of freight4 ,we find that we have neither poisoned the air nor the water and you have all the highways that you had before we came1 but we give you a better one and a cheaper one4 ,,must ,,have ,,money4 ,and remember that you never can injure the railway without injuring yourselves4 ,the railway has only two sources from which to get money4 ,it must either earn it or borrow it1 and if it borrows1 and borrows judiciously1 the rate of interest ought not to be high1 but whatever it is1 high or low1 you pay it4 ,sometimes people who do not know better think that they are serving a good cause to stick the railway--the company is rich--a personal injury case or something of that kind--but it is a railway and they can afford it--stick them4 ,now1 who pays the bill8 ,can we charge that up to the construction of a station8 ,it is a part of the expense1 and the law says that you must pay us for the use of our property enough to pay our expenses and our taxes1 and a reasonable return upon the investment1 so that all is charged in your bills4 ,we had in one thriving city on the ,great ,northern1 ,i recall1 a suit for #bj1jjj4 ,a young brakeman stumbled against a pile of cinders that it was represented the trackmen threw out from between the rails and poured water upon it1 and it froze in the winter and was solid1 and as he was running alongside of his train he stumbled and fell and was injured--some great injury to the spine that wrecked his entire nervous system1 and we inquired and found out how the coal got there1 and our experience and education have made us suspicious2 we took the cinders to the laboratory and had them analyzed and absolutely they were anthracite1 and there never was a ton of anthracite coal burned in a locomotive in the ,state of ,minnesota2 we followed it up and we found that the man who brought the suit--a professional suit bringer--had1 with a brakeman and his own son1 taken the cinders from his own office and piled them there and poured water on them4 ,now1 ,i speak of that just as an illustration of some applications of that ,golden ,rule4 ,,compares ,,railway ,,cost4 ,your future growth will depend on yourselves hereafter1 as it has largely depended upon your own efforts in the past4 ,the commerce going to and from the ,pacific ,coast cities by the sea is being largely carried in foreign bottoms4 ,there was a time when the ,american nation was a nation of seafaring men1 but that does not apply any longer1 and ,i am sorry that that is so4 ,i believe that the people of the ,united ,states1 ,i believe that the genius of the country is just as able to carry upon the sea as upon the land4 ,as matters stand today1 any bay or inlet where a foreign flag can force its way inland into our country they can call to us to drop the bundle and they take it from us and we can't help ourselves4 ,now1 we ought to be able to help ourselves1 for on the land we have so far surpassed the others that there is no comparison4 ,in ,great ,britain their average railway cost is #bcd1jjj per mile4 ,in the ,united ,states it is a little less than #fj1jjj per mile4 ,in ,germany it is about #aaj1jjj1 in ,france about #adj1jjj1 in ,austria about the same4 ,now let us see what they do with their two hundred and thirty-four thousand dollar machine and their one hundred and ten and one hundred and forty4 ,in ,great ,britain they move an average of five hundred thousand ton miles to the mile of road at a cost of #b4af for every hundred miles4 ,in ,germany they move about seven hundred thousand ton miles at a cost of a trifle under #a4cf for every hundred miles4 ,in ,france #dej1jjj ton miles at a cost of #a4dj for every hundred miles4 ,in ,austria the cost is #a4ej for moving a ton of freight a hundred miles1 and in the ,united ,states the cost is #gd cents and a fraction4 ,,against ,,ship ,,subsidy4 ,now we in the ,united ,states move the business for less than half the average cost of ,europe4 ,we pay from twice to four times the rate of wages1 and we do it with an investment of about a third of their average4 ,if we can do that on land1 why can't we do it on the sea8 ,i know that if the ships of the ,united ,states had the same care and the same opportunity that the ships of other nations have they would do it1 and until then no subsidy1 no ship subsidy1 will ever enable them to compete with other business1 because in principle it is wrong to tax all the business of the country--to put your hand into the public treasury and hand out to one particular business a cash subsidy in order that it may live4 ,i want to tell you that a steamship line that cannot live without a cash subsidy will make a mighty1 mighty lean race with one4 ,it ought to rest on a business foundation4 ,that is the only reason for running ships1 because they can be made to pay1 and if we can make our railways pay and work at the low rates that the railways in the ,united ,states do carry and pay the scale of wages that they do pay1 why can't we succeed on the high seas8 ,if we can't1 let us hand that business over to somebody who will do it cheaper and better2 but ,i don't feel that the case is a hopeless one1 but1 on the other hand1 ,i do feel that it would only limit the efforts of those who were trying to make and to build up a merchant marine for the ,united ,states2 it would only limit their efforts to extend a subsidy to a few ships engaged in the business4 ,,foreigners ,,get ,,subsidy4 ,i remember on one occasion that ,i went home from here and there was no tonnage to move the stuff we had to send to the ,orient4 ,absolutely no tonnage was available1 and when ,i got home there was a reception to one of our public men1 and the late ,senator ,mark ,hanna was there4 ,i took up in a few remarks the question of a subsidy1 and ,i said4 ',if we are going to have one1 let us pay a subsidy for something that is going to do us some good4 ,let us pay a tonnage on the actual products that reach a new market4' ,that would have done some good4 ,the tonnage of the products that does not reach a new market1 we wouldn't have anything to pay on that1 and on that that does we could afford to pay4 ,now1 we were driven out of the business on the ,atlantic1 but we might retain a hold upon the business of this ocean4 ,immediately there was a scheme for ,congress for an appropriation1 ,i think of #i1jjj1jjj1 for ship subsidies1 and they found that #hj per cent4 of it would go to one line1 under the bill that was being then drawn--and that line on the ,atlantic ,ocean--and ,i know that the men and most of the officers lived on the other side of the ,atlantic1 and the stock was owned on the other side of the ,atlantic4 ,now that would not build up a merchant marine for us4 ,a company over there has disposed of this old boat to our people and taken what new money they got and built new boats4 ,that was all and that was celebrated--a portion of that was celebrated as the inauguration of a new merchant marine for the ,united ,states4 ,think of it6 ,but some of our statesmen were wise enough to believe that it was going to succeed1 but it did not4 ,it fell ingloriously4 ,when we have a merchant marine it will be because there is a reason for it4 ,but until that time comes1 just put up with the business that we can get1 and let the others carry it who can carry it lower and better than we can in this country4 ,but bear this in mind3 ,that all your great harbors in the country when compared with the railroad yards sink into insignificance in the tonnage that they move4 ,i think that1 in ,seattle1 ,i would be safe in saying that twenty tons are moved by rail where one goes by water1 unless you can count saw logs4 ,and ,i had occasion to look up ,st4 ,louis4 ,the ,mississippi at ,st4 ,louis has from eight to twelve feet of water for nearly nine months in the year and boats run in and out of ,st4 ,louis1 and we are all anxious to make a deep water channel from there to ,new ,orleans4 ,now1 in looking up the amount1 ,i found that1 notwithstanding they had from eight to twelve feet of water for nine months in the year1 or about nine months1 less than #a per cent4 of the tonnage that came into ,st4 ,louis moved by water2 and out of over #a1ejj1jjj tons of coal--and if there is any article among all the shipments that could be moved by water easily and cheaply it would be coal--not one ton of coal moved out of ,st4 ,louis by water last year4 ,there is a scheme to spend the public money and create a channel fourteen feet deep to the levees at the mouth of the ,mississippi1 and there are plans to lath and plaster the bottoms of a great many other streams throughout the country1 and so many that in order to get any appropriation for an enterprise of great national merit1 it is necessary to divide up and load it down with a lot of appropriations4 ,these make what is known as the pork barrel1 the river and harbor bill4 ,they load it down with the various enterprises that have no value to anybody1 streams on which the government is called to spend more money than all the boats would bring if sold at auction1 and in some cases where there have been no boats run for ten years4 ,,leads ,,world ,,in ,,tonnage4 ,they say they ought to regulate the railroads4 ,now1 when you come to consider the matter practically1 ,i would rather have a railroad alongside of a navigable river1 or a river with six or eight or ten feet of water in it1 than to have it far away from the river4 ,a box car will beat any ten-foot channel in the world1 but when we get twenty or twenty-five-foot channels1 the box car is not in it in bulky freight4 ,you have got to have depth of water4 ,some years ago ,i built six freight steamers on the ,great ,lakes and they were considered whales in their day4 ,they could carry #c1jjj tons4 ,today a lake steamer and a double channel through the ,soo ,canal carries #ab1jjj tons1 and has two additional firemen and one deckhand1 and that is all the additional crew4 ,sometime ,i would like to have the city council of the ,city of ,seattle1 if they had the time1 run down to the head of ,lake ,superior1 and see what is the greatest port in the matter of tons moved in the world4 ,london was1 and ,duluth and ,superior a few years ago were trailing along fifth or sixth place2 but last year it took first place with the cities of the world1 and it handled more tonnage than any other city4 ,london had #cj1jjj1jjj tons and ,duluth had #cd1jjj1jjj4 ,now1 to show the enormous importance of that load of tonnage1 that tonnage that is greater than any other city in the world1 ,i undertake to say1 and do say1 that there are not #a1jjj people1 men1 women and children1 connected directly or indirectly1 with moving that traffic between the land and the water in both directions4 ,there is such a thing as doing a very large business without a harbor at all4 ,,seattle ,,spirit ,,wins4 ,although as far as foreign commerce is concerned1 as far as business is concerned1 when we get to the seaside1 we have to hand it over to the ships4 ,it must be done4 ,but the great business is done in the railroad yards4 ,i would not be without the harbor--far from it1 but don't feel that the harbor is going to make you1 and don't feel as a gentleman in public life in ,washington1 when a friend of mine talking with him said1 ',you won't get any more railways built along the policies you advocate4' ',oh1 well1' he said1 'we have got them1 we have got them4' ,and he was a member of the house committee of interstate commerce1 a rather dangerous statement for him to make4 ,,at ,,tacoma4 ,in his address at the banquet of the ,tacoma ,chamber of ,commerce on the preceding evening 7,november #i71 ,mr4 ,hill dwelt especially on the intimate relation of railway and agriculture interests4 ,among other things he said3 ,the question of terminals means a great deal to a railroad and it is getting to be more and more full of meaning every year4 ,some cities1 and large cities1 today have all the railroads they will ever get1 simply on account of the difficulty in getting terminals4 ,i think the ,northern ,pacific terminals today--,i think to buy them on the entire system--would cost more money than to grade the whole road1 and ,i do not know but what it would cost more than to grade and put the rails down4 ,that is a condition and1 remember1 that you pay the freight4 99 99 99 99 99 ,,will ,,soon ,,need ,,all ,,the ,,wheat ,,we ,,raise4 ,within a comparatively short time1 ,i will say that within six years1 ,i will go on record1 you won't send many cargoes of wheat from ,tacoma by sea1 simply because the ,united ,states wants every bushel that will be raised within the ,united ,states to feed her own people1 and will pay you more money for it4 ,if they didn't pay you more money for it1 it would go to the foreigner1 but our own people will pay more money for it and take it somewhere and grind it into flour4 ,if you look for greater avenues or greater economy in transportation1 but it will cease to go out as wheat4 ,i will give you an illustration and you can draw your own conclusions as well as ,i can3 ,in #ahhb the ,united ,slates raised #ejd1jjj1jjj bushels of wheat and we had #eb1jjj1jjj people and we exported somewhere between #age1jjj1jjj and #bjj1jjj1jjj bushels4 ,twenty-five years later1 in #aijg1 we raised #fcd1jjj1jjj bushels4 ,we increased in that twenty-five years a little less than #be per cent4 in our wheat yield1 or #acj1jjj1jjj bushels4 ,our population increased #fd per cent41 and converging lines meet somewhere4 ,now1 if we had #ij1jjj1jjj of people--and we have between #hh1jjj1jjj and #ij1jjj1jjj this year--and use six and a half bushels per capita1 it would take #ehe1jjj1jjj bushels for bread and seed4 ,professor ,rogers1 of the ,minnesota ,agricultural ,college1 puts our consumption for bread and seed for the last few years at a trifle over or a trifle under seven bushels4 ,i think he uses ten years for his average1 and ,i use twenty-five to get an average of about six bushels and forty pounds1 and ,i call it six and one-half bushels4 ,on last year's crop1 with #fcd1jjj1jjj1 we have had about #ei1jjj1jjj bushels to sell and we sold about #hj1jjj1jjj4 ,what is the result8 ,after the #aeth of ,january wheat was higher in ,minneapolis than it was in ,chicago1 even up to the first of ,august1 and part of the time it was higher than it was in ,new ,york1 because they wanted it to make a loaf of bread to feed our people at home4 ,we have not the great margin that we used to have4 ,the seed on last year's crop went down to #ei1jjj1jjj bushels and1 if my figures are equal to ,professor ,rogers'--and he is a professor of agriculture in the ,agricultural ,college and maybe he has more time to look these questions up more carefully--but with his figures we hadn't a bushel to sell4 ,suppose we had #fj1jjj1jjj bushels to sell1 and we are increasing in population at the rate of #b1jjj1jjj per year1 our natural figure is between #a1cjj1jjj and #a1djj1jjj1 and allow #gjj1jjj for immigration1 not eleven1 twelve1 thirteen or fourteen as we have been having1 but say seven and by #aiej you will have in the ,united ,states1 it figures out to be accurate1 #bjh1jjj1jjj1 but suppose we have #bjj1jjj1jjj1 it might come by #aide1 or #aidg1 or it might be in #aiee1 but about that time we will have #bjj1jjj1jjj people1 and if they use six and a half bushels per capita for bread and seed1 it would take #a1cjj1jjj1jjj bushels to feed them4 ,,problem ,,of ,,the ,,wheat4 ,that is a little more than twice what you are raising today1 and you haven't any new fields to put a new plow in4 ,from #ahhb1 when we raised #ejd1jjj1jjj bushels of wheat1 following that time more than half of ,minnesota1 all the northern part of ,minnesota1 was brought under the plow1 all of ,north ,dakota1 all of ,south ,dakota1 all of the state of ,washington and all of ,oregon1 except #c1jjj1jjj or #d1jjj1jjj bushels raised in #ahhb1 more than half of ,california1 two-thirds or three-quarters in ,kansas and ,nebraska1 a large part1 practically all of ,oklahoma or the ,indian ,territory and a large part of ,texas1 and take what was raised in #aijg on the new fields that were opened up1 any new territory after #ahhb1 and you will find that it is approaching #cjj1jjj1jjj bushels1 but the increase in the whole country in that twenty-five years was only #acj1jjj1jjj bushels1 so that the old fields fell off about #agj1jjj1jjj bushels4 ,are we increasing our yield per acre8 ,by no manner of means4 ,it has been a steady and uniform decline for the past thirty years4 ,now1 we have as good wheat fields as there are anywhere on the continent1 and they will be made better4 ,i am not a disciple of ,malthus1 because ,malthus was an honest man no doubt1 but when he wrote he did not understand the science of modern agriculture or the adaptation of the soil or of the seed to the soil1 or the commercial value of a correct analysis of the soil and the adaptation of the soil nor its commercial value as suited to the crop it is best fitted for4 ,all these things we have learned1 and while you are teaching your young people let me advise you that the school that is most entitled to your care and the school that will do the most for the state in every place and will turn out men and women as they have always in industry and intelligence and everything else that goes to make good citizenship1 the school attended by the boy on the farm is certainly as good as the best4 ,when your forests are cut and hauled away1 and sold to somebody else you have then1 and we will give you a perennial forest1 a crop every year of great value too4 ,but we ought to be able to take care of our land and we will4 ,i have no doubt about the future4 ,we will do what other people have been compelled to do4 ,in #agij1 ,great ,britain was down to fourteen bushels4 ,we are down to thirteen and nine-tenths now1 average4 ,they took the question up and it was much easier for them to control1 as far as territory was concerned1 because the territory was small1 in the hands of a few land owners1 mostly rented1 and they faced conditions compelling the land owner to sub-fallow1 and fertilize and carry one crop year after year4 ,they appointed a royal commission and that royal commission went to work jointly4 ,we have a royal commission1 too1 and they are able men4 ,one is a professor at ,cornell and another is a publisher of books in ,new ,york1 and another is ,mr4 ,pinchot1 who is doing a great deal of work1 but he is overrun with the work he has to do4 ,this commission is to report in time for the meeting of ,congress4 ,now1 bear this in mind1 ,great ,britain started in #agij trying to keep the people on the land4 ,the landlord was afraid of the great drift of the agricultural people to the colonies and the new republic1 the ,united ,states at that time4 ,the new republic was going to impoverish them1 and leave them without any rent rolls4 ,they went to work intelligently and in #ahaj and #ahaa ,sir ,humphrey ,david1 the foremost scientist of his time1 delivered most intelligent lectures on the qualities of the soil4 ,in forty or fifty years after they started they had gotten their yield up to an average of twenty-five bushels per acre4 ,last year1 it was #cb4b4 ,starting at fourteen we ought to get up in place of #ac4i or #ad1 we ought to be able to get up to #bh or #cj1 and if we do we will have grain to feed our #bjj1jjj1jjj people and to spare1 and what do ,i hear8 ',some more1 and then some8' ,now in going over those questions1 ,i am not worrying about the future of the country4 ,i have more confidence in it today1 the day for cheap wheat has left the ,united ,states1 not to return1 and we can stand that4 ,this land1 this side of the range1 you can devote to better uses than raising wheat4 ,i do not know why you should not get returns1 as ,i said1 that would equal #aj per cent4 on #b1jjj per acre4 ,you can do it4 ,there is no question as to that4 ,,southern ,,railways ,,and ,,their ,,needs ,,by ,,john ,f4 ,,wallace4 ,abstract of ,address before ,southern ,commercial ,congress ,washington1 ,d4 ,c41 ,dec4 #g and #h1 #aijh4 ,this question has been extensively treated by leading railroad men1 statesmen and ,press of the ,south1 and admirably covered by addresses on numerous occasions before various audiences throughout the ,south4 ,i therefore feel that the southern railroad situation is gradually becoming better understood1 not only by the public at large1 but by the railway men of the ,south1 who are jointly appreciative of the fact that the greatest need of southern railroads is the confidence and support of the communities through which they run and serve4 ,therefore1 my remarks will be few1 and are made in order that certain fundamentals may be read into the record of this convention4 ,for the purposes of this address the ,south is described as that portion of the ,united ,states lying south of the ,potomac and ,ohio ,rivers and east of the ,mississippi4 ,shortly after the close of the ,civil war1 the ,south realizing the changed order of things1 accepted the situation in the spirit of ,american manhood and started on a new era of industrial and commercial development4 ,one of the first necessities was a comprehensive system of transportation facilities4 ,the railroads1 which prior to the ,civil war had compared favorably with those in the ,north1 at its close were practically bankrupt financially and physically1 and were more the shadow than the substance of what they should have been4 ,southerners with brains and energy1 starting with #aa1ehg miles of detached1 dilapidated and crippled railways1 immediately commenced to lay the foundation of the present industrial and commercial prosperity in the ,south by constructing its lines of railway4 ,the efforts of these men and the confidence they were able to inspire in northern and foreign capital are best illustrated by the fact that today the ,south is served with #df1dcd miles of railroad1 serving eleven states1 twenty million people1 and representing a total investment in round numbers of two billion dollars4 ,of these #df1dcd miles of railroads only #a1acd miles approximately1 or #b percent1 are double track4 ,it is possible that the next ten years will see at least one-fourth1 or over ten thousand1 additional miles of second track4 ,it must be borne in mind that while transportation is the burden bearer of both production and commerce1 it is only able to perform the full and complete measure of its functions when properly nourished and assisted by finance4 ,in ancient days the birth of civilization started with the ability to preserve food products4 ,this grew from the temporary necessity of accumulating sufficient food to last from one chase to another1 or to enable journeys to be performed or winter climates endured1 to the storage of vast quantities of food to enable nations to survive years of famine1 as was exemplified by the storage of grain in ,egypt in the days of ,joseph1 which period history shows us was the crowning epoch of ,egyptian civilization4 ,today the measure of our modern civilization is our transportation facilities4 ,safe1 efficient and rapid communication1 and the economy of the world's transportation systems1 are binding the nations of the earth closer together day by day1 and helping to create the conditions which will ultimately place the crown of accomplishment upon our modern civilization4 ,coming back to the ,south1 from which we have been temporarily led astray1 it is self-evident to the careful observer that all the diverse interests of this section--agriculture1 mining1 manufacture1 commerce and banking--are unavoidably and irrevocably bound up with the transportation facilities furnished and to be furnished by the railway systems ramifying its territory and performing a service for the ,south similar to that performed by the arteries and blood-vessels in the body of corporeal man4 ,it is also apparent to the impartial observer that if the ,south is to reach its highest state of development its transportation facilities should not lag1 but should lead the march of progress1 and that this development should be stimulated in every possible way2 and men of the ,south should never forget for a single moment that the needs of the railroads are the needs of the ,south4 ,it has been our custom in ,america to anticipate future needs in transportation1 and in a measure attempt to forestall and provide for them4 ,the policy of foreign countries has been practically the reverse4 ,the railway systems of ,england have been constructed to take care of and supply a demand for transportation facilities that already existed4 ,the railroads of the ,united ,states in the ,south and ,west have been projected and constructed1 and to a great extent financed1 by men whose inspiration was a firm belief in an unseen future and whose assets were largely composed of hope and an undying faith in the future development of their country4 ,now1 the future demands for increased transportation facilities in the ,south are plainly indicated by past records1 showing the growth of productive activities and the constant increase of tonnage to be moved4 ,if these requirements are to be met1 demand and supply must move forward hand in hand4 ,additional tonnage will justify increased facilities and increased facilities will stimulate still greater tonnage4 ,during the past #be years the total products of the ,south1 from agriculture1 forest1 mines and manufactures1 have increased in valuation over #bbe per cent4 ,during the last five years of this period1 ending in #aijf1 the increase has been #ej per cent4 ,the common fallacy that a railroad is completed when opened for traffic has long since passed away1 at least in the minds of intelligent men4 ,the railroad of today is no sooner completed as a single track1 than it becomes necessary to provide industrial spurs2 additional or enlarged terminals2 replace its temporary structures by permanent ones2 widen its excavations2 strengthen its embankments2 provide passing tracks1 additional shop facilities1 enlarged passenger and freight stations1 warehouses1 elevators1 docks and wharves at water terminals1 additional tracks1 heavier rail1 rock ballast1 elimination of curves1 reduction of grades1 block signals1 elimination of grade crossings1 heavier engines1 larger and better cars1 to the end that the constantly growing requirements and exactions of modern traffic conditions may be met2 all of which requires increased expenditures1 which it is easily seen could not in any event be provided for out of earnings4 ,during the next ten years the railroads of the ,south will require #a1jjj1jjj1jjj to enable them to fully provide for the increased demands for transportation facilities1 an average of #ajj1jjj1jjj per annum4 ,including the estimated increased mileage and the present capital investment1 the resulting average capitalization would amount to #ec1jjj per mile1 being #bj1jjj per mile under the present average capitalization of all the railroads of the ,united ,states today1 which is #gc1jjj per mile4,b ,meeting the requirements of the railroad situation in the ,south by the expenditure of a round billion dollars during the next ten years1 as outlined herein1 would make the total investment in southern railways at the end of that period three billions of dollars on an estimated mileage of #ef1jjj4 ,it would require average earnings of #i1jjj gross per mile per annum1 with operating expenses at #gj per cent of the gross1 to yield sufficient net income to provide a return of #e per cent on this total investment4 ,when these figures are compared with the present average gross earnings of the railroads of the ,united ,states1 #aa1djj per mile per annum1 with an average cost of operation of #g1geg per annum1 resulting in a ratio of operating expenses to gross earnings of #fh per cent1 the above estimates appear reasonable and conservative4 ,even if this expenditure is made and the results predicted obtained at the end of the ten-year period1 southern railroads will still fall approximately #be per cent short of yielding the present average gross earnings per mile per annum of the railroads of the ,united ,states today4 ,to provide funds to meet these ever-growing and incessant demands for additional facilities1 the railroad companies must necessarily be large borrowers4 ,the prosperity of the ,south in the next decade1 and in those to follow after1 depends upon the ability of the owners and managers of southern railways to foresee and provide for future necessities1 and upon the promptness with which the work is accomplished4 ,the ability of railroads to construct these improvements1 which are so essential to the future prosperity of the ,south1 depends upon the willingness of capital to furnish the necessary funds for the purpose4 ,while legislation may control and regulate the returns upon invested capital1 there is no process by which it can compel that investment originally4 ,while investment is easily retarded it is difficult to attract4 ,there is probably no form of capital investment more open to attack or more liable to depreciation through unfair or unwise legislation than the railway investments of today4 ,while the speaker is a firm believer in the principles of governmental control and supervision over the corporate entities which have been created by the people and for the people1 it must not be forgotten that every shield has its reverse1 and that the exercise of such control and supervision must necessarily be along the lines of right and justice1 which no mere legislative enactment can change4 ,any variance brings its own reward1 which frequently spells disaster4 ,the power to control1 regulate and supervise necessarily carries with it responsibilities from which there can be no escape4 ,every tax1 every restriction1 every requirement which costs money or reduces revenue to our southern railroads is a tax which must ultimately be paid by the communities which they serve4 ,the prosperity of the southern railroads and the prosperity of the ,south are irrevocably bound together1 and the needs of the ,south are identical with the needs of the railroads4 ,the basis of securing capital must necessarily be the ability of the borrower to inspire confidence in the lender that his capital will ultimately be returned to him intact1 and that he will receive regularly and promptly adequate hire therefor4 ,no section of our great country has such reputation for united action as the ,south4 ,in political matters this unity of action for years has led to the designation ,the ,solid ,south4 ,what the railroads in this section need today is a solid ,south behind and beneath them2 a solid ,south taking a calm and rational view of the immense factor the railways have been and always will be in the development of its future greatness4 ,the recent reversion of sentiment in the ,state of ,georgia1 brought about by a calm and deliberate analysis of the present situation by the business men of that ,state1 should be the keynote of the future action of the solid ,south4 ,the adoption of a policy of fairness and liberality towards the railroad interests on behalf of all the ,southern ,states1 and the ability to convince the financial world that this action is sincere and genuine and will be permanent1 is the great paramount need of the railroads of the ,south today4 ,prompt action along these lines will enable the railroad companies of this section to successfully compete in the markets of the world for the capital needed to carry out the improvements outlined1 and thus provide the facilities which will enable the producers of the ,south to ride the crest of the wave of coming prosperity4 ,in its calls for capital the southern railroads must come into competition in the markets of the world1 not only with the railroad requirements of the ,north1 of the ,east and the ,west1 but with all the lines of human industry and endeavor throughout the wide world4 ,the difference between the five or six per cent paid by southern railroads for the money which goes into their additional facilities or equipment1 and the three or four per cent which may be yielded by the high-class world investments1 is merely the gauge by which the confidence of the capitalist is measured in the integrity of his investments4 ,today it is difficult to secure money for railroad development1 either ,south or ,north1 at any ordinary rate of interest4 ,why8 ,is it because money is scarce8 ,no4 ,i can best answer this by a story of the panic of '#ic1 when a citizen of ,chicago dropped into the office of ,lyman ,gage1 of the ,first ,national ,bank of that city1 and inquired of ,mr4 ,gage if money was tight4 ,he replied1 ,no1 the bank had plenty of money4 ,the citizen said1 ,that's fine2 can ,i secure a loan of #ajj1jjj8 ,mr4 ,gage replied1 ,yes1 you can have it2 we will loan it to you4 ,what is your collateral1 what security can you give8 ,it is needless to say that the loan was not made4 ,the customer afterwards remarked to a friend that he had found that the trouble was not that money was tight1 or that money was scarce1 but was due to the scarcity of collateral or security1 which is only another designation for guaranteed confidence4 ,this is the situation today4 ,there is not a railroad in the ,south1 ,north1 ,east or ,west that could not secure all of the funds necessary for any development it might desire to make provided it could show the capitalists to whom application for the loan was made that it could furnish security which would insure the repayment of the loan and the interest thereon as due4 ,i doubt if there is a single southern railway system1 the officers of which would not gladly today take up1 consider and block out a scheme for the improvement and betterment of their property1 and commence preparations to enable their system to fully perform the increased functions of a common carrier1 which the abundant years of the immediate future promise to require1 if they could be sure1 and in turn could assure their financial backers1 that the earnings of their road would be amply and safely sufficient to provide for1 and take care of1 the investment necessary4 ,therefore1 remember that the needs of the railroads are the needs of the ,south4 ,i presume there is no planter1 miner1 manufacturer1 producer of any sort1 banker1 merchant or professional man in the wide ,south who would not say in a moment that every thousand dollars of capital invested in his vicinity1 or in his town1 or in his state1 would be gladly welcomed and eagerly sought for1 by the planter paying eight per cent and the merchant and miscellaneous producer from six to eight per cent1 and that approximately one billion of dollars injected into the commercial channels of the southern states during the next ten years would bring a relative measure of prosperity to every man1 woman and child within its borders4 ,when it is considered that this amount of money could be invested in additional railroad improvements and facilities2 that under proper conditions it could be secured at a rate not in excess of five per cent2 that approximately eighty per cent or more would be spent for southern labor and southern material1 and would find its way through every artery and vein of southern trade and commerce1 it would seem that the solid ,south would be thoroughly alive to the burning fact that--,the needs of the railroads are the needs of the ,south4 ,i might talk to you for hours about the evil and unfairness of legislative enactments to retard and make unproductive railway investments2 of the injustice of any body of men attempting by legislation1 without giving the railroad corporations proper hearing1 to arbitrarily adjust their rates of toll for either passenger or freight simply because politicians consider it a popular thing to do4 ,i might suggest a multitude of things which could be done to increase the credit of railroads throughout your section4 ,i might mention a multitude of things which have been done to injure and impair and prevent railroads securing the necessary capital to provide for their needs4 ,i might also attempt to enumerate the ill-advised actions of railroad managers and employees toward the public4 ,i might expatiate upon the foolishness and unwisdom of a corporation--the creature of the public--attempting to dictate to its master or declining to obey its commands4 ,it is doubtful1 however1 if the enumeration of the errors and shortcomings of the fellow-members of the same family ever tends to a better understanding or more harmonious relationships4 ,the need of the hour is a recognition of the interdependent relations which exist between us all1 and to remember--intensely1 actively1 potently remember--that an injury to one is an injury to all1 and that united we stand1 divided we fall4 ,,footnote3 ,b ,this includes #ae1jjj per mile of duplicated capital4--,s4 ,t4 ,,problems ,,confronting ,,american ,,railways ,,by ,,daniel ,,willard1 ,,president ,,of ,,the ,,baltimore ,,ohio ,,railroad4 ,an ,address delivered at ,galesburg1 ,illinois1 to ,burlington ,railroad ,employes1 ,february #bj1 #aiji1 by ,mr4 ,willard1 then ,second ,vice-,president of the ,chicago1 ,burlington ,quincy ,railroad ,company4 ,a short time ago ,i had occasion to explain to some of your associates who happened to be in my office1 some of the difficulties the railroads had been contending with during the two years just past1 and ,i was asked if ,i would be willing to come to ,galesburg and explain to other ,burlington employes the things ,i had endeavored to make clear to them4 ,i replied that ,i would be very glad to do so1 and ,i suppose that is how ,i happen to be here tonight4 ,i understand that this audience is composed largely of employes of the ,burlington ,railroad ,company1 and ,i am glad that that is so1 and what ,i shall say will be addressed particularly to them4 ,so much has been said and written about railroads during the last two years1 and by many well qualified to do both1 as well as by some not qualified to do either1 that it can hardly be possible that any new thing remains to be said1 and ,i fear ,i shall only be able this evening to repeat to you collectively the same things ,i have already said to many of you individually4 ,under the ,burlington plan of organization the ,second ,vice-,president has direct charge of the operation of the line 7responsible1 of course1 to the ,president71 and for the last five years ,i have had the privilege and honor of holding that office4 ,i refer to this only that ,i may by so doing establish my relationship with the various matters to which ,i shall later specifically refer1 because ,i propose to confine my remarks chiefly to home matters2 that is to say1 to matters pertaining directly to the ,burlington ,company4 ,i feel that ,i ought to be qualified to speak clearly on that subject1 and while ,i have naturally read much concerning the general railroad question as a whole1 the same sources of information have also been open to you1 ,i have no doubt many of you have given the general subject as much or even more study than ,i have4 ,in ,october1 #aijg--af months ago--the ,burlington ,company did the largest business in its entire history--ran the most trains1 earned the most money and employed the most men4 ,during that month the names of #ec1jjj men appeared upon its pay-rolls2 and the same condition existed quite generally throughout the entire ,united ,states4 ,there was a well-nigh universal complaint of car shortage and lack of motive power4 ,four months later1 reports from the ,car ,efficiency ,bureau in ,chicago showed a surplus of over #cbe1jjj freight cars on the ,american railroads4 ,in the meantime the ,burlington ,company had reduced its force by nearly #ah1jjj men and it was estimated that the transportation business of the country had fallen off more than #cj per cent4 ,what caused this unprecedented change8 ,men far abler than ,i have undertaken to explain1 and many reasons have been given1 all1 ,i presume1 more or less in harmony with the facts1 but influenced no doubt by each man's point of view4 ,i say1 candidly1 ,i do not know what caused it2 that is1 assuming that there was any one cause1 but ,i think ,i can point out to you some of the contributing causes1 at least so far as the ,burlington ,company is concerned4 ,a railroad1 as you all well know1 is a living1 growing thing4 ,it is never finished1 or if we think we have finished some certain part1 as was probably thought when the original stone engine houses were built here some years ago1 or when the first bridge was built across the ,mississippi ,river at ,burlington1 it always happens that heavier1 larger1 and longer engines come along in course of time1 forced upon us by the changed conditions1 and our engine house which was built for all time becomes too short1 and our bridge is too light1 and both must be rebuilt4 ,the same thing is going on in every department of railroad operations--ballast1 ties1 rails1 coaches1 station buildings1 even grades and curvature1 all come within the changing influence of time and progress4 ,i referred to the engine house specifically simply to illustrate my point4 ,because of the constant change or evolution which is going on1 it is necessary that ,railroad ,companies1 if they expect to keep abreast of the times1 should make annually large expenditures for such improvements as from time to time become desirable or necessary1 if the standard of service is to be raised1 or even maintained4 ,these are called extraordinary expenditures1 and it is customary on this ,line to prepare each year1 as of ,january #ast1 what is called a ,budget1 being in effect a list of the more important improvements considered necessary by the officers of the ,road4 ,the ,budget shows the separate items1 with description of each1 and also estimated cost4 ,it may and does include such items as new cars or engines needed1 additional sidetracks1 new terminal yards1 such as you have here1 water treating plants1 new coal chutes1 etc4 ,on ,january #a1 #aijg1 the sum total of the ,burlington ,budget1 as it stood approved by the ,president on that date1 amounted to something over #af1jjj1jjj4jj4 ,it included some new equipment and also some quite large improvements1 such as new yard at ,lincoln1 grade reductions between ,galesburg and ,savanna1 etc4 ,the ,burlington ,system is over #i1jjj miles in length1 and goes through parts of eleven different states4 ,on the #ast of ,january1 #aijg1 the legislatures in all of the eleven states1 ,i think1 were in session4 ,the ,federal ,congress was also in session at ,washington4 ,bills having special reference to railroads were being introduced daily in some of the legislative bodies above mentioned4 ,i cannot say now that all of them were against the railroads1 but ,i feel ,i am justified in saying that while perhaps some of them if passed might not have injured the railroads much1 none1 or at most very few1 were intended to help the roads4 ,in fact1 the attitude of the ,federal ,congress as well as of most of the state legislatures was considered by nearly all railroad owners1 and officers as well1 as distinctly hostile4 ,this belief may or may not have been justified by the facts--at any rate it existed4 ,the owners of the ,burlington ,company believed it4 ,its executive officers believed it4 ,i believed it4 ,the number of bills affecting railroads introduced in the legislatures of the eleven states above referred to1 and in the ,federal ,congress1 during the session of ,winter of #aijf-aijg was over #hjj--;at least1 over #hjj such bills were actually laid upon my desk4 ,among these were bills reducing the passenger fares in several states2 others about reciprocal demurrage--if any one can explain how such a matter can be made reciprocal2 still others fixing the speed of stock trains1 and the size of caboose cars2 fixing the hours of labor for men in certain branches of the service 7and ,i wish to say here that that part of the ,federal law fixing limit of hours for men in train and engine service has my hearty support72 bills having reference to the liability of the railroads to their patrons and employes1 etc41 etc4 ,i do not wish you to understand that ,i criticise all1 or for that matter1 any1 of the bills by this enumeration4 ,i am now simply reciting the facts4 ,but whether the bills were good or bad1 desirable or undesirable1 it was clear if some of them became laws that the expenses of the railroads would in consequence be largely increased1 and no way was provided whereby the revenue or earnings would be correspondingly raised--in fact1 there seemed to be a demand from all directions that rates should be reduced1 and they were reduced in many states4 ,another important movement was also under way at the same time1 and that was in the direction of a general wage increase in practically all departments4 ,this one item alone cost the ,burlington ,company #c1jjj1jjj4jj a year4 ,now1 what effect do you suppose all these things had upon the ,budget and similar questions8 ,just the same effect that the same kind of questions in a personal way would have had upon you and your personal affairs4 ,you will remember that ,i said the ,budget amounted to #af1jjj1jjj on ,january #a1 #aijg4 ,that was just before this wave of anti-railroad legislation referred to had fully developed2 but when we saw what was happening1 when we read the bills that were being passed daily1 and the others that were under consideration1 we became very much concerned4 ,it seemed clear to us that even if business continued good--and remember this was ten months before the panic of ,november--that our earnings would probably be considerably reduced by the reduction of freight and passenger rates in various states1 and our expenses were certain to be much increased by some of the legislation and also by the advance in wages1 and it was necessary to consider where the money was coming from to pay the large bills that would come due in connection with the ,budget program4 ,after considering the matter very carefully early in ,january1 we decided1 first1 not to authorize anything further in the way of improvements unless actually necessary2 and1 second1 to stop as many things already authorized as it was possible to get along without4 ,among the things so put off or deferred were the building of a new engine house and necessary shop buildings at ,clyde2 the construction of a new line about #ee miles in length from ,herrin to the ,ohio ,river2 double track between ,galesburg and ,bushnell2 new passenger depots at ,monmouth and several other places2 work on new terminals at ,lincoln1 etc4 ,of course1 it may not have seemed to you at the time that we were stopping1 because we still had so many things under way1 and you cannot prudently stop large undertakings all at once--for instance1 we could not stop work on the new yard at ,galesburg when it was half done1 and you will recall that it required more than two years to complete the plan1 but we did slow up as much as possible2 that is to say1 we tried to finish up such things as were authorized before ,january #a1 #aijg1 and which were still considered necessary1 but we did not start any new things4 ,the effect of this is best shown by the size of the ,budget on ,january #a1 #aijh--;it was then a little over #h1jjj1jjj4jj1 or about one-half what is was twelve months before4 ,in the meantime the ,november panic of #aijg had come upon us1 and it seemed not only best1 but necessary1 to continue the policy decided upon in ,january of that year1 and on the #ast of ,january1 #aiji1 the ,budget1 as it then stood1 and as it now stands1 amounts to a little less than #a1jjj1jjj4jj2 and this brings us up to the present time4 ,in ,february1 #aijg1 ,i had the honor to be invited to the annual banquet of the ,commercial ,club at ,clarinda1 ,iowa1 and ,i was asked to speak about the railroad situation4 ,after referring to some of the proposed laws that were then under consideration in the various states1 ,i continued as follows3 ,i will not speak of the probable effect of such a public policy as ,i have referred to1 on the general railroad situation1 as others are much better qualified to do that1 but speaking for the ,company which ,i represent1 we view the situation with much concern1 and we have done1 ,i think1 what any prudent manager would do if he saw confronting him conditions which he was certain would increase his cost of operation a large but unknown amount and at the same time reduce his revenues--we have planned to curtail our expenditures wherever possible4 ,i do not mean that we shall let the property suffer1 or lower the character of the service1 but we will not undertake extensions or large improvements until we can see more clearly where the money is coming from1 or if it comes at all4 ,how far reaching this policy of retrenchment1 or perhaps ,i should say curtailment1 will be1 ,i1 at least1 cannot say2 it will depend upon the future4 ,certain it is that our expenditures in that direction will be much less this year than last1 which means1 of course1 fewer men employed and less material purchased4 ,it is two years since that was written1 and ,i regret to say that circumstances have not yet seemed to justify any considerable change of policy4 ,the ,burlington ,company has on its pay-rolls today about #ch1jjj men1 #ae1jjj less than in ,october1 #aijg1 and #g1jjj less than in ,february1 #aijg4 ,we are doing all the things that we consider necessary for the safe operation of the trains1 and for the proper maintenance of the property1 but conditions so far have not seemed to us to justify a resumption of the policy of betterments and extension followed during #aijf and the preceding years4 ,i do not know absolutely that it is so1 but ,i imagine that the other ,railroad ,companies have been pursuing much the same course as we have here4 ,the latest reports indicate that the total railroad mileage of the ,united ,states is about #bcj1jjj1 so that the ,burlington's mileage is about one-twenty-fifth of the whole1 and if you multiply what has happened on this road by twenty-five1 you will get a result for the whole country which will probably not be far from the truth4 ,in fact the ,eastern roads suffered much more from the actual business depression than we did in the ,west4 ,it has been stated by men who should be competent judges that from one-third to one-half of all manufactured steel and iron is used either directly or indirectly by the railroads1 and that fully one-half of all the lumber manufactured is so used4 ,when it became necessary for the railroads to stop buying new cars and engines1 and also to stop all new construction and improvements1 when possible to do so1 you can well understand the effect that that course must have had upon the two particular lines of business just mentioned4 ,of course1 many other lines were similarly affected1 and it would seem logical that no full and real resumption of business can be expected until the railroads are again able to resume the policy which they were forced to abandon early in #aijg4 ,when will that time come8 ,i do not know4 ,what will bring it about8 ,i do not know that either1 but ,i do know what will help matters greatly1 at least so far as the ,burlington ,company is concerned2 but before saying what ,i have in mind in that connection1 ,i will digress a little1 and briefly explain something of the financial responsibilities of a large ,railroad ,company1 because in spite of all we hear about corrupt management1 stock watering1 etc41 it is still a fact that the railroads did cost something1 and the money that was used for that purpose was all1 or very nearly all1 furnished by private persons like yourselves1 and it was furnished by them for investment because they thought or hoped such an investment would be profitable to them1 for there is1 there can be no other reason for investing money in anything1 unless it be invested for charitable purposes4 ,the ,burlington ,system today1 as ,i have said1 is over #i1jjj miles in length4 ,it has large terminals in ,chicago1 ,st4 ,louis1 ,kansas ,city1 and the other great cities it reaches4 ,it owns #a1fjj locomotives1 #a1bjj passenger cars1 and #eb1jjj freight cars4 ,the last annual report shows that its bonded debt 7or the size of its mortgage7 amounts in round numbers to #afe1jjj1jjj4jj1 equal to about #ah1jjj4jj a mile4 ,this mortgage is legally entitled to interest at the average rate of #d4ahe per cent per annum1 because it is so specified in the bond1 and that interest must be paid1 or the mortgage would be foreclosed just as would happen if you failed to pay the interest on a mortgage1 in case you happened to have one on your home4 ,in addition to the bonded debt above referred to1 there is outstanding #aaj1jjj1jjj4jj of stock in round figures1 or about #ab1jjj4jj a mile1 making a total capitalization of #cj1jjj4jj per mile4 ,we are constantly told that the ,american railroads are overcapitalized1 and yet the ,burlington ,road could not be replaced today for twice its capitalization4 ,i doubt if it could be duplicated for three times its outstanding capital4 ,the stock1 as you know1 receives as interest or dividends whatever sum the ,directors may decide to pay1 out of what is left after paying the operating expenses1 taxes1 and interest on the mortgage4 ,if there is nothing left after paying the other items mentioned above1 the stockholders receive nothing1 so that there is a certain risk connected with an investment in railroad stock that does not apply to railway or ,government bonds4 ,for a number of years the ,burlington ,company has paid #h per cent dividends to its stockholders4 ,it has earned more than that1 as the annual reports show1 and the ,directors might legally and properly have paid larger dividends1 but they did not1 and all the money earned in excess of #h per cent on the stock has been spent for betterments1 new equipment1 etc4 ,this policy1 pursued through a long period of years1 as it has been1 explains how it is that the ,burlington is in such good physical condition as it is today1 and with such a low capitalization4 ,with this explanation1 you will understand1 ,i am sure1 that with an increase per year in wages alone of #c1jjj1jjj4jj1 together with other increases due to legislation1 such as #cbe1jjj4jj per year because of the nine-hour law for operators1 and a smaller income because of rates reduced 7freight and passenger7 in many states1 the surplus1 if any1 after paying dividends would be much less than formerly1 and if any new work was undertaken it would be necessary to keep its cost within such surplus as might be available1 or else borrow the money with which to pay for such work4 ,i hope ,i have now made clear why it was that we became worried about the ,budget in ,january1 #aijg1 and why for the last two years we have been trying1 so to speak1 to get our house in order4 ,it will perhaps be said that we could have borrowed money for new extensions1 betterments1 etc41 and that is actually what we were compelled to do1 in order to complete the ,budget plans above referred to2 but what prudent man would want to borrow beyond his forced necessities1 at a time when the future seemed so uncertain1 and when the interest on the money so borrowed would add that much more to his existing burdens8 ,the same sound principles should and do underlie railroad operations that you should and do apply to your own personal affairs4 ,the items are larger in the case of the railroad--that is all4 ,i will now repeat the question--,what will bring about a resumption of business on railroads8 ,and if ,i have succeeded in making clear what ,i sought to explain1 ,i think you can answer the question just as well as #a can1 but ,i will give you my views1 and you will now be in position to judge whether they seem sound or otherwise4 ,in my opinion1 railroad business1 which really means all business1 will recover its former proportions when the influences and forces at work during the last two or three years shall have ceased doing the things that have contributed so largely towards bringing about the depression which we all deplore4 ,perhaps that is not quite clear4 ,i do not mean that laws already made must necessarily be unmade1 that wages raised must be reduced1 but we must have a rest4 ,we must be given time and opportunity to work out the new problems that have been forced upon us during the last two years4 ,we must be given a chance to find out what it is going to cost to meet the new requirements1 and also how much our revenues are going to be reduced by reduction of rates4 ,perhaps it will be found that by new methods growing out of the exigencies of the case we will still be able to earn a surplus sufficient to justify the resumption of extraordinary expenditures as formerly4 ,if not1 then1 either rates must be advanced1 or wages be reduced1 or improvements must wait or be carried on with borrowed money and railroads will be slow to increase their interest-bearing debt under such circumstances4 ,as ,i have said1 two years ago during the legislative period1 #hjj bills affecting railroads were introduced in states reached by the ,burlington ,system1 including those proposed at ,washington4 ,so far this season1 #bgb such bills have been presented4 ,it is too early now to venture even a guess as to how many of them will become laws1 but until we know just what to expect1 you can clearly see1 ,i am sure1 that we will not feel like incurring any new or unnecessary obligations4 ,among the bills so far introduced are two in ,illinois1 called the full-crew bills4 ,these two bills1 if passed1 will increase the cost of operation on the ,burlington ,road alone #if1jjj4jj a year1 on basis of present business4 ,in ,nebraska a similar bill is under consideration4 ,it is true that the two ,illinois bills if they become laws will not necessarily make our operations in ,illinois unprofitable1 but that class of legislation will do much to discourage new developments1 by making such developments more difficult1 or rather1 less profitable2 and besides1 in my opinion1 such laws are not necessary4 ,as ,burlington employes1 you may be interested in what ,i am now going to tell you about the development of the coal business north through ,galesburg4 ,i need not tell you how much it has increased during the last four years1 for you have seen it grow from practically nothing up to its present proportions4 ,some six or seven years ago the ,burlington officers gave careful consideration to the problem of increasing the ,company's business1 and you must bear in mind that freight shipments do not just happen to go this way or that4 ,well1 they finally decided that the most promising opening was to try and develop a coal movement from ,southern ,illinois to the cities of ,st4 ,paul and ,minneapolis1 and the ,northwest generally1 where the winters are severe and fuel supply limited4 ,it was found that if coal from ,illinois was taken to the ,twin ,cities it would have to be sold in competition with coal from ,pennsylvania and other eastern states shipped by water to ,duluth4 ,it was also found that the coal from ,franklin and ,williamson ,counties in the southern part of the state1 while of very good quality1 would not bring the same price on the market in ,st4 ,paul as the eastern coal4 ,it was also found that in order to be sold at a sufficient profit to the dealer1 in competition with the eastern coal1 the railroad would have to carry it from ,herrin1 ,ill41 to ,st4 ,paul1 #fdh miles1 for not more than #b4aj per ton1 or #c4b mills per ton mile4 ,it was also found that it was impossible to do this at a profit to the railroad1 as conditions then were2 that is to say1 we could not haul coal at that rate and make money on a road full of one per cent grades4 ,the engineers were put to work1 however1 and an estimate was prepared showing what it would cost to put the line from ,savanna to ,herrin all to a standard grade not exceeding sixteen feet per mile1 the line above ,savanna being all right4 ,it was believed that it would pay to make the improvement--and you know the rest4 ,the line was built from ,centralia to ,herrin1 the ,fenton-,thompson cut-off was built1 grades were cut1 and1 altogether1 more than #e1jjj1jjj were spent to put the road in shape to haul coal to ,st4 ,paul in #c1jjj-ton trains4 ,of course1 many new engines were bought1 as well as new and high capacity cars suitable for the coal trade4 ,it is a low rate business1 and as you know1 the cars as a rule return empty1 but handled over low grades and in full trains it pays a fair profit2 but every additional item of cost1 of course1 reduces the profit4 ,now to show the effect of proposed legislation4 ,in ,nebraska a bill has been introduced placing the limit of cars that can be legally handled in one train at fifty4 ,if this bill becomes a law1 how long will it be before somebody will want a similar one in ,illinois1 and if you are going to fix a limit so as to make it necessary to run more trains1 and consequently employ more men1 and that is the undoubted purpose of the bill1 how long will it be before the limit will be reduced to forty1 or even twenty-five8 ,where will the thing end1 and when8 ,with the mere possibility of such legislation looming up in the future1 can you expect improvements such as ,i have just described to continue8 ,would you recommend them if in my place8 ,how long will such legislation find favor in our halls of ,congress8 ,just as long as your representatives think you want it--by you ,i mean the majority of their constituents--and no longer4 ,your representatives and senators are human4 ,they seek to obtain political preferment at the polls1 and desire to remain in office4 ,they must have a majority of the votes to be elected1 and naturally they will shape their course so as to meet your wishes1 as they understand them1 because by so doing they hope to retain your support4 ,no one today questions the right of the properly constituted authorities to supervise the railroads4 ,no one defends the rebate1 or discrimination of any kind1 but1 as the ,supreme ,court of the ,united ,states has recently well said1 ,it must be remembered that railroads are the private property of their owners2 that1 while from the public character of the work in which they are engaged1 the public has the power to prescribe rules for securing faithful and efficient service and equality between shippers and communities1 yet in no proper sense is the public a general manager4 ,no doubt there may be much in connection with railway management in the past 7and for that matter at the present time as well7 to criticise2 but please tell me what line of human undertaking since the world began1 be it industrial1 educational or religious1 has been free from criticism2 and1 granting all that is said against the railroads1 then what8 ,this is what we find3 ,that the railroad rates in this country are the lowest in the world1 with few minor exceptions not worth considering2 that the wages paid railroad employes in the ,united ,states are higher than anywhere else in the world1 and that the capitalization of ,american railroads per mile1 as reported by the ,interstate ,commerce ,commission1 is but one-fourth as much as that of ,english railroads1 and one-half that of the railroads of ,germany and ,france1 and one-third that of ,belgium2 and this has all been accomplished in a country where a high protective tariff obtains1 and where everything the railroad uses costs more on that account4 ,it is claimed that our manufacturers must have the protection of a high tariff in order to enable them to meet the prices of their foreign competitors and pay ,american wages2 but the ,american railroad sells its product1 that is1 transportation1 for less than any other nation and still pays higher wages4 ,a locomotive engineer1 for instance1 receives #d4ja per day here as against #a4fb per day in ,england1 and #a4ja per day in ,belgium4 ,it is sometimes said that railroads have received great help from the people in the shape of land grants1 and on that account should give much in return4 ,let me give one instance of how this has worked with the ,burlington ,company4 ,in order to induce the original projectors of this line to extend the road through ,iowa1 this ,company was given #cei1jjj acres of government land in that state1 selling at that time at #a4be per acre1 amounting to less than #dej1jjj cash value4 ,by an act of ,congress1 passed over thirty-two years ago1 a reduction is made of #bj per cent from the mail pay on all land grant roads4 ,at the present time the amount so deducted from the ,burlington1 because of the ,iowa grant1 amounts to over #fe1jjj a year1 and since the law was passed has amounted in the aggregate to over #a1ejj1jjj1 or more than three times the original value of the entire grant4 ,not only that1 but it goes on without end4 ,do you think that is fair8 ,we do not ask for favors4 ,we wish to be treated fairly2 that is all4 ,no one can possibly be more interested in the prosperity of the railroads than the railroad employes4 ,from every dollar earned by the railroad forty-two cents go directly to pay wages of railway employes1 while only twenty-one cents1 or one-half that amount1 go to pay interest and dividends4 ,in no other country in the world does the railroad employe get so large a share and the security holder so little4 ,why should not the man who invests his money in railroad stock receive as much return in shape of dividends as the man who invests his in a farm or factory8 ,the last census report of the government1 that for #aijj1 showed that money invested in farm lands in the ,united ,states earned an average return of over #aj per cent1 and money invested in manufactures earned over #ai per cent4 ,the governor of ,iowa1 in a printed article over his own signature1 appearing in the ,february1 #aijg1 number of ,farming1 gave a number of specific instances where money invested in farm lands in ,iowa earned from #ah to #bc per cent1 and he referred to such cases as typical4 ,the last report of the ,interstate ,commerce ,commission shows total earnings of all railroads in the ,united ,states for year ending ,june #cj1 #aijg1 to have been #b1ehi1aje1egh4 ,it also shows total capitalization as #ac1jec1igd1aef1 and money paid as interest and dividends #eea1abh1gac1 equal to #d4b per cent on capitalization4 ,certainly this does not seem excessive when compared with profits in farming and manufacturing as given above4 ,we are glad to know that our farmers and manufacturers are prosperous1 because we have long since learned that when they are not prosperous the railroads cannot prosper4 ,i fear they have not yet fully realized that it is better for them1 also1 that the railroads should prosper4 ,we hear no complaints in ,congress or elsewhere because our farmers and manufacturers are prosperous2 in fact1 we are all inclined to boast about it4 ,the last annual report of the ,interstate ,commerce ,commission gives the aggregate capitalization of the railroads in the ,united ,states as over #ac1jjj1jjj1jjj1 showing that the railroad investment in our country is second in amount only to that in agriculture4 ,it is estimated that the number of railroad stockholders today is over #djj1jjj4 ,we know that in #aijg over #a1fjj1jjj men were employed on ,american railroads4 ,do you know of any good reason why this army of railroad men1 together with the #djj1jjj stockholders1 should not receive as fair consideration from government and people at large as the farmer and manufacturer receive8 ,and yet the government in effect lets the one have money without interest to buy his land1 and by means of a tariff makes you pay more for much that you buy1 so that the other can pay his employes good wages4 ,personally ,i make no complaint because of either of these things2 but so far as ,i can learn no one in ,congress has suggested that railroads should raise their rates so that you might receive higher wages1 and yet the two things1 rates and wages1 are very closely related4 ,if anything ,i have said has helped you to a better understanding of the railroad problem1 ,i am glad4 ,if it has caused you to take a renewed or deeper interest in the subject1 ,i am glad4 ,i could go on and multiply cases in confirmation of what ,i have said had ,i the time1 but what ,i have said already is perhaps sufficient4 ,do you intend to make railroading your life business8 ,are you interested in the prosperity of railroads1 and particularly of the ,burlington8 ,do you clearly see the relation between rates and wages8 ,do you think wages are too high8 ,if not1 perhaps you do not agree with one of your congressmen in ,washington1 who has just recently1 on the floor of the house1 urged that the ,interstate ,commerce ,commission be given more power over rates1 which means power to reduce them still more1 because they have never1 so far as ,i have heard1 exercised their power over rates in any other way4 ,personally1 ,i am glad ,i can claim to be a railroad man1 and not only glad1 but proud of it as well4 ,i think the ,american railway is the one great institution above all others that ,americans should be proud of4 ,mr4 ,w4 ,r4 ,lawson1 an ,englishman1 who investigated our railroads in #aijc1 wrote upon his return1 in his book on ,american ,industrial ,problems3 ,the science of transportation is going to be the special contribution of the ,american people to political economy4 ,mr4 ,neville ,priestley1 an ,english gentleman and ,under ,secretary to the ,government of ,india1 ,railway ,department1 came to this country in #aijd for the purpose of investigating our ,american railroads4 ,his report was submitted to the ,english government and printed4,c ,among other things he said3 ,american railway men are quick to see a new idea4 ,they are quicker still to try it4 ,they take a great pride in their profession and are striving to get at the science of it4 ,that their methods are not always perfect is what might have been expected1 but they have managed to do what no other country in the world has done1 and that is1 carry their goods traffic profitably at extraordinarily low rates1 notwithstanding the fact that they pay more for their labor than any other country4 ,it is in the study of how they do this that much benefit can be derived by other countries4 ,mr4 ,leroy ,beaulieu1 a distinguished ,french economist1 who visited this country in #aije and made a careful examination of ,american economic conditions1 wrote as follows upon his return to his native country3 ,all in all1 the prosperity of the ,american railway system as well as the excellence of service it renders1 is undeniable4 ,if1 therefore1 one were in search of model railway methods1 it would be wise to turn to those practiced under the free ,american system1 not to those illustrated by a system operated under the debilitating control of the state4 ,it has been well said that a prophet is not without honor save in his own country and in his own house4 ,,footnote3 ,c ,a condensation of ,mr4 ,priestley's able report was made for the ,bureau of ,railway ,news and can be had on application4 ,,the ,,railroad ,,situation ,,of ,,today ,,by ,,frank ,,trumbull ,,president ,,of ,,the ,,colorado ,,southern ,,railway ,,company4 ,an ,address to the ,western ,society of ,engineers at their ,annual ,dinner1 ,chicago1 ,jan4 #e1 #aiji4 ,mr4 ,president and ,gentlemen of the ,society3 ,i shall not attempt to deal with any technical phase of the railroad industry1 and in saying this ,i am emboldened by a declaration which ,i find in the ,constitution of your society1 to-wit3 ,this ,society shall neither endorse nor recommend any individual or any specific or engineering production1 but the opinion of the ,society may be expressed on such subjects as affect public welfare4 ,the ,american railroad administration of today has abundantly demonstrated its ability to solve all engineering and mechanical problems1 and we may rely upon it that the same ,american enterprise and valor which have gridironed the continent with shining bands of steel will solve any technical problem that may be ahead of us for which money may be had4 ,i therefore proceed at once to engage your thought for a few minutes1 if ,i may1 upon what seems to me to be the great problem of the ,american railroad situation of today2 that is1 how to satisfactorily settle the relations between private capital and the users of the railroads4 ,,four ,,years' ,,retrospect4 ,during the last four years the ,american railroad has been in a seething cauldron of publicity2 a good deal of refuse has risen to the surface and has needed to be skimmed off1--but ,i think ,i do not violate any confidence in saying that not all of it has come from the body of the railroad4 ,part of it seems to consist of political bacteria and defunct statutes which attempted to violate the voice of the people1--the ,constitution which legislators had sworn to support4 ,and in this connection1 perhaps ,i ought1 in passing1 to say a word which has rarely been spoken in defense of the railroads1 by pointing out the shame of putting them to the great cost of proving in the courts the unconstitutionality of statutes which ought never to have been enacted because they were never valid4 ,in the last four years there has been much noise2 the air has been filled with shouts and cries1 and more or less dust4 ,hysteria and virtue1 although really not at all alike1 became confused1 and a very large percentage of the public absorbed the idea that the railroad highways are public property1 forgetting that all of us are absolutely dependent upon private capital for the ,american railroad of today4 ,again1 we seem to have been upon a storm-tossed ocean4 ,fortunate are we that through it all has run the ,gulf ,stream of our wonderful ,american resources4 ,if it were not for that1 we should all have been ruined4 ,we have survived1 but the pity of it is to think how much better off we might be1 if ,we1 the ,people of the ,united ,states1 would1 in financial legislation1 railroad regulation and other matters1 only exercise our wisdom as much as we do our power4 ,legislation has been restrictive1 not constructive4 ,there is very little in it1 thus far1 to help the railroad4 ,nearly everything seems to have been thought of1 except provision for money or for improving credit so as to command cheap money4 ,the country has been flooded with conflicting laws and still the cry goes up for more bureaucratic power and more statutes4 ,it reminds me of an immigration meeting in ,mississippi3 ,the court-house was filled with an assemblage of white people1 and when the meeting adjourned an old darkey asked one of the gentlemen who came out of the court-house what the meeting was for4 ,the reply was that it was an immigration meeting4 ,what is dat8 asked the darkey1 to which the gentleman responded1 ,we want to get more white people from the ,north and ,east to settle here4 ,whereupon the darkey said1 ,foh de ,lawd's sake1 ,majah1 dars moh white people in dis county now dan us niggahs can support6 ,i admit there have been many evils in railroad administration1 but ,i modestly affirm that there have been no more than in other lines of business4 ,the railroad industry of this country is young and it acquired some children's diseases4 ,many people think the railroads would have recovered from measles1 mumps and whooping cough without prescriptions from forty-seven varieties of doctors--forty-six states plus the ,federal government4 ,it has seemed many times that the railroad patient has been like the man who fell ill in some mysterious way4 ,the consulting surgeons determined that an operation was necessary4 ,they could not locate any definite malady1 but they found five hundred dollars on him so they operated on him for that6 ,of one thing1 however1 we may be absolutely sure--that is that the law of compensation is always at work4 ,if we have an excess of regulation1 there is less of something else4 ,it is entirely probable that if there had been no political regulation of railroads1 the people of this country would have more roads1 far better and safer roads1 and a greater distribution of wealth than they have today4 ,but ,i must not forget that1 according to the subject assigned me1 we are here not to look backward1 but to look at the present1 and then perhaps take a little look forward4 ,,some ,,contradictions4 ,from a mechanical and traffic standpoint the ,american railroad of today is one of the wonders of the age4 ,i give one illustration only3 ,compare its splendid performance with a report ,i have here of the ,northeastern ,railway of ,england1 which has a large mineral traffic4 ,this report shows average contents of loaded freight cars to be #e4gb tons1 and average contents of freight trains to be #aad4g tons4,d ,on the other hand1 the ,american railroad situation in its political and governmental relations is a bundle of contradictions4 ,if you were to engage your money in merchandising or manufacturing1 you would no doubt be appalled if you should discover that some one entirely outside of your line of business could fix the prices at which you must sell your product1 and that the burden of proof that the prices so fixed are confiscatory1 is upon you1--and that you could not abandon your operations4 ,yet this is precisely what may happen if you invest your money in a railroad4 ,the contradiction is that there are no reciprocal assurances in your behalf4 ,neither the ,state nor the ,federal government will give you any financial aid1 nor will they guarantee you anything1 nor will they even protect you against competition1 as ,france has long since been wise enough to do4 ,a second contradiction is that although there was a four years' war to prevent a division of this country1 and although thereafter our ,american genius connected up remote sections of our common country1 and although the work of the railroads has been splendidly national1 the attempt to regulate them has been lamentably local and ,lilliputian4 ,i need only cite the conflicts between the enactments and rate-making of different states and those of the federal government4 ,we hear more or less these days about the twilight zone between the states on the one hand and the ,federal government on the other2 but for those who administer the affairs of a great railroad system1 the phrase twilight zone is too polite a term4 ,it is instead a jungle in which the wayfaring railroad man may easily lose his way1 and possibly be actually devoured by laws with teeth in them4 ,we hear a great deal about the simple desire that the railroads shall obey the law2 but who is wise enough to say what the law is1 when only yesterday the ,supreme ,court of the ,united ,states left an important case unsettled1 so far as it was concerned1 because it was divided four to four4 ,these uncertain and conflicting laws and changes in rates confuse the railroad manager more than the public has ever realized4 ,a third contradiction is the attempt1 by anti-trust laws1 to maintain the competitive idea alongside regulation1 as if unrestricted competition were compatible with compulsory uniformity in rates and service4 ,the ,president of the ,united ,states and other high officials have spoken in no uncertain terms concerning the absurdity of a situation like this1 and yet thus far there is no relief4 ,a fourth contradiction is found in the great increase in cost of producing transportation without the corresponding increases in selling prices which have taken place in other kinds of business in which private capital is engaged4 ,the erroneous impression seems to prevail that the supply of capital for the railroad industry is an inexhaustible reservoir1 regardless of the compensation which it shall receive and the conditions under which it shall perform its work4 ,a fifth contradiction is the effort to connect up rate-making with physical valuations4 ,if it will be a satisfaction to the politicians to have a physical valuation of all the railroads in the ,united ,states1 and the people are willing to be taxed to pay the great expense of obtaining it1 perhaps no great harm will be done2 but ,i believe all of us here would concede that valuations by the ablest engineers1 if separately made1 would not agree1 and that before such valuations could be finished1 they would be out of date4 ,some of us probably think that for rate-making purposes the ,government may as well be employed in making a physical valuation of farms and farm improvements in order to ascertain what is a fair price for wheat2 or1 for that matter1 perhaps be as well employed in adding up car numbers4 ,i know something of a piece of railroad out west1 which in a great mining excitement was built through rocky and tortuous gorges1 and with four per cent grade hung upon the precipitous sides of awful mountains in a climate described by one of the inhabitants as consisting of three seasons--,july1 ,august and winter4 ,later the boom evaporated and the business of the road got down to one train a day4 ,in the low ebb of traffic a brakeman one day sifted into the trainmaster's office and asked for a job4 ,the trainmaster put him through the catechism1 and among other things inquired1 ,what would you think if you saw a train carrying green signals8 to which the applicant promptly responded1 ,i'd think business was picking up4 ,now1 can any of us tell what they would do in ,washington with a physical valuation of a road like that8 ,its rates today are only about one-fifth what they were at first4 ,a sixth contradiction is the wide-spread desire to regulate capitalization4 ,now it may be that there have been abuses2 but if one asks any of these critics what is the grievance to be remedied1 great silence usually falls upon them1 for they are unable to show any more relation between rate-making and either physical valuation or capitalization than there is between the price of a pair of suspenders and the physical valuation or capitalization of a department store4 ,railroads are continually importuned to make rates that will move the business1 as in the case of the ,western road just cited1 and those parts of the ,united ,states which have the highest railroad capitalization have the lowest average freight rate4 ,if you will look at the ,american ,review of ,reviews for the month of ,june1 #aijh1 you will find a very interesting article by ,interstate ,commerce ,commissioner ,lane on ,railroad ,capitalization and ,federal ,regulation4 ,his program is a very simple one1 and while pointing out that there should be some way of insuring that the proceeds of all railroad securities shall be actually invested in acquisition of property1 construction1 completion1 extension1 or improvement of facilities1 the improvement or maintenance of service and the discharge or lawful refunding of obligations1 he says3 ,fundamentally1 there is at present no inter-dependence of capitalization and rate--the latter is not in law1 nor in railroad policy1 the child of the former--though railroad men have sometimes expediently urged the claim1 and courts have sometimes too kindly given it their nod of sanction4 ,also1 ,the most potent kind of regulation is that which casts the burden upon the individual to do the regulating himself and makes him responsible to the law for dereliction2 and the plan for the regulation of capitalization here presented is founded upon that theory--to require the directors of the railroad companies to make public announcement of their security issues1 to publish the objects for which such issues are made1 and be responsible for the use of the proceeds in the precise and limited manner announced4 ,this is far too modest a program to please those who delight in elaborate methods of procedure involving much filing of forms and petitions and many hearings1 appraisements1 viseings1 and solemn givings of consent2 and without question it is not nearly as thoroughgoing a plan as others which have been devised4 ,but the simpler the plan is1 the better1 if it may effect its purpose4 ,he further says that his program does not guarantee the prospective purchaser of the stock that the stock certificate which bears a printed par value upon its face does in fact represent property of the full value so designated2 but this is not a duty which the ,government for any reason is bound to assume1 and ,i know of no motive arising out of national policy which compels the assumption of such responsibility--certainly not at present4 ,if our complex government shall control all future issues of railroad capitalization1 we may rely upon it that most of the new railroad construction in this country1 instead of being independent1 will be fathered by existing railroad systems1 because their established credit1 whatever it may be1 will be required4 ,,reconciliation4 ,is it not evident that these contradictions never can be reconciled by untrained men8 ,i believe that for the ,american railroad the time has gone by when illiterate men will be put in charge of millions of dollars' worth of machinery and other property4 ,we are in a new era4 ,railroading is rapidly coming to be a profession4 ,we are necessarily in all things doing more and more specializing4 ,why not insist that the regulation also shall be in accordance with ethical principles and not determined by political expediency8 ,the great over-shadowing problem of reconciling private capital and the users of railroads1 and the contradictions which ,i have mentioned1 are the inheritance of this generation of railroad men2 and ,i have no doubt that this generation1 like all previous ones1 will be equal to the task put upon it4 ,out of the painful processes of the last four years1 we have emerged with some gains4 ,in the first place1 the country now realizes that the one million1 five hundred thousand employes and officers of ,american railroads are not surpassed in integrity by any other similar number of business men4 ,during the four years hardly a voice has been lifted to say this1 and so ,i am glad to have this opportunity to raise my own in their commendation4 ,in the second place1 it is easier for shippers and railroad traffic men to be honest than it ever was before4 ,the stoppage of rebates is a distinct gain1 morally as well as financially4 ,in the third place1 it has been demonstrated1 ,i think1 that our ,government ought always to be bigger than any corporation1 or any man1 or any set of men1 and this is a good thing for us never to forget4 ,already publicity has brought about a friendlier feeling between the people and the railroads1 and along certain paths ,i have no doubt we shall find our way out of our difficulties1 for the ,american people are not unfair when they understand a situation4 ,upon one occasion ,i was making a trip over a division of road where there was no competition and where we therefore enjoyed one hundred per cent of the business4 ,there was an unexpected stop for something and a brakeman went to the rear to protect the train4 ,presently a wagon-load of girls came in sight4 ,the brakeman took out his handkerchief and initiated a flirtation4 ,then discovering that ,i had seen the performance and evidently desiring to square himself1 he said without hesitation1 ,if we make friends of these people they ride on our road4 ,one could hardly convey better than that brakeman did to me1 an idea which we should never abandon1 namely1 that one of the best assets a road can have is friends1 and ,i suggest that probably our first duty is to keep in good humor and be considerate one for another4 ,that involves and includes good service to the public1 and nothing will help more to keep the public in good humor4 ,the people of this country already have the lowest rates and the highest wages in the world4 ,they are the best people in the world and are entitled to the best service in everything4 ,i believe they should insist upon having the best railroads1 and when they so insist1 and realize that our population has thus far doubled every thirty years and will soon be one hundred million1 and not very long after that one hundred and twenty-five million1 and that our transportation necessities double faster than our population does1 they will set about finding out what is necessary to obtain adequate railroads1 and then we shall probably hear less about rates and more about efficiency and safety4 ,when the people do this they will soon discover that it is no more disgraceful to make money in building railroads than in selling land or in merchandising or in manufacturing or in mining4 ,they will also discover that although the courts have said railroad investors are entitled to a reasonable return upon a fair value1 no court--not even that great tribunal1 the ,supreme ,court of the ,united ,states--can finally say what is a reasonable return4 ,this question would still be unsettled because we have not yet gotten away from our dependence upon private capital4 ,what is a reasonable return must be answered by the investor as well as by the commissions or the courts1 because it always takes two to make a bargain1 and money1 like its human owners1 will go where it has the best prospective reward and the greatest liberty4 ,the people will find that what we need in this country is not more bureaucratic government by untrained officials with brief tenures of political office1 or more power to commissions1 but more responsibility upon boards of directors4 ,if statutes are necessary to insure this1 well and good2 but if regulation is general in character and national in scope1 is directed against oppression and discrimination1 and designed to promote safety and efficiency and faithful accounting1 the people will get better results from intelligent and honest directors than they will from the best governmental management which can be devised2 and so long as the railroads are owned by private investors1 those investors will doubtless insist upon their directors having more and more to do4 ,i am aware that there is a socialistic trend all over the world4 ,there is more and more disposition to prescribe medicine for other people to take1 but no amount of legislation will change the fundamental laws of the universe4 ,the fact is1--notwithstanding our ,declaration of ,independence1--men are not created equal4 ,it is a fine thing for all of us that they are not4 ,there is a diversity of gifts2 money-making is one of them1 but a man may have the talent for making money and be totally unable to build a bridge or paint a portrait or lead an orchestra or an army1 and if fortunes are acquired under the laws which we ourselves have made1 why should we be envious8 ,unless a rich man hoards money like a miser1 it is--if not alarmed--continuously at work for all of us1 through the banks or otherwise1 in spite of anything he can do1 and the cheaper it can be had1 the greater the economy to society as a whole4 ,it is impossible to reduce everybody to a dead level1 and how monotonous it would be if we could6 ,we don't satisfy everybody even in our form of government1 which we are prone to think is the best in the world4 ,for example1 at the last election six and a half million people did not get what they voted for4 ,part of them got what they really wanted1 but on the face of the returns1 six and a half million were disappointed1 and yet the country goes happily on1 apparently to greater prosperity than ever4 ,but how much happier and how much more prosperous we might be if there were not so much untrained meddling--if there were not so many brakes upon the wheels of our progress6 ,a brake1 we all admit1 is a good thing in its place1 but it has no propulsive power1 and the efforts of the time to combine in one man or in any one body of men the four functions of prosecuting attorney1 judge1 jury and executioner1 must sooner or later give way4 ,first1 because it is un-,american1 and where such a condition exists1 as ,alexander ,hamilton pointed out to the people of ,new ,york1 ,there is no liberty4 ,second1 because it will not work practically4 ,reconciliation of private capital and the users of railroads might1 of course1 be brought about by government ownership1 because if there were a deficit the people could pay it in their taxes4 ,even then railroad rates could not be made mathematically consistent1 for government is never mathematically consistent4 ,for example1 if ,i mail a letter to ,san ,francisco or ,london1 ,i pay two cents1 and if you mail a letter to ,evanston you pay two cents4 ,but nobody seems to want government ownership1 although many people contend that that would be much fairer and more honest than governmental control of railroads without financial responsibility4 ,perhaps a middle ground may sometime be worked out by a profit-sharing arrangement1 as in ,chicago between the city and the street railway companies4 ,that would have its advantages4 ,among the advantages would be cheaper money for railroads1 if the government would guarantee a minimum return on agreed valuations4 ,but of course this would be much more complex than to work out an arrangement with corporations like street railways1 which do a single kind of business at one rate1 instead of a business affecting every commodity of human consumption and stretching through forty-six states and two territories4 ,however1 ,i think there is food for thought for all of us in what has been accomplished here in ,chicago1 and the professional intellect present tonight may well think it over4 ,finally1--while a man has as good a right to increase his fortune by investing in railroads as in any other manner1 no matter what it may be1 ,i believe we shall find a solution for some of the puzzles that beset us1--not through the gospel of tyranny on the one hand1 nor the gospel of equality on the other hand1 but through a gospel of stewardship4 ,let us all feel that although the acquisitive faculty is undoubtedly planted in the human breast for some wise purpose1 we are not here primarily for personal aggrandizement4 ,we are here for service1 and the greater our talents or our wealth or our opportunities the greater our responsibility4 ,we are trustees--for the users of our railroads1 for our employees1 and for investors2 and let us welcome all the additional responsibility which may be put upon us as directors or salaried officials4 ,i am sure this sentiment will commend itself to all of you1 because there is no body of men in the world which has a higher code of ethics and which has demonstrated personal fidelity in a higher degree than the ,engineers of ,america4 ,,footnote3 ,d ,in the ,united ,states in #aijh the average contents of loaded freight cars was #ai4f tons and the average of a freight train was #cea4hj4 ,on some of the mineral roads the averages were much greater4--,s4 ,t4 ,,transportation ,,charge ,,and ,,prices ,,by ,,logan ,g4 ,,mcpherson1 ,lecturer on ,transportation1 ,johns ,hopkins ,university4 ,author of ,the ,working of the ,railroads4 ,,chapter ,,vi4 ,reprinted by permission from ,railway ,freight ,rates in ,relation to the ,industry and ,commerce of the ,united ,states1 by ,logan ,g4 ,mc,pherson4 ,copyright #aiji by ,henry ,holt and ,company1 ,new ,york4 ,vastly the greater proportion of the commodities moved by the railroads are in the processes of commerce2 that is1 the conveyance from the place of consignment to place of receipt in the majority of cases is sequent to a transfer of ownership4 ,the seller cannot continue in business unless he obtain a market for his material1 or his merchandise1 and the purchaser can not continue in business unless he secure the material1 or the merchandise1 which he needs4 ,the margin within which the added charge for transportation may be adjusted is therefore limited in one direction by the amount which the seller of a commodity will accept and the purchaser will pay and continue in business4 ,if the seller or the purchaser cannot make a profit at least approximately as great as from other operations in which it might be feasible for him to engage he will1 other things equal1 change his business1 and the railroad will no longer have the traffic that flowed from his operations4 ,a railroad1 therefore1 must adjust its transportation charges that production may continue4 ,this includes the adjustment of rates that products may be sent to markets1 that the products of the region tributary to one railroad may reach markets in competition with similar products of other regions1 and in competition with other products that will answer the same purpose4 ,the wider the markets that the producers can reach1 the greater is the encouragement to production4 ,the more numerous and varied the sources of supply of which the purchaser has choice1 the more likely that his requirements will be met to his satisfaction4 ,this is the case whether the sale or purchase be of food1 whether it be of raw material to feed the processes of mill or factory1 whether it be of wares for wholesale distribution1 or whether the purchase be of merchandise by the retail dealer1 or the final consumer4 ,it has long been claimed by the railroads of the ,united ,states that their rates of freight are lower than those of any other country1 and that the nation's progress in industry and commerce has in large measure been due to the cheapness and the efficiency of its transportation service4 ,by way of proof has been instanced the proportion that the transportation charge bears to the selling price of the staple commodities4 ,it is said that the rate charged for the transportation of food products does not affect their selling price in any market of the ,united ,states--that price being fixed by the processes of supply and demand which the amount of the freight rate does not influence4 ,in the spring of #aijg inquiry was made upon this point among the produce dealers of the city of ,new ,york1 who gave the information contained in the following paragraphs4 ,the price paid by the housekeeper per dozen for eggs during the season of shipment seldom exceeds by more than five cents the price received by the ,western farmer who takes them to the country store4 ,that is1 the railroads bring eggs a thousand miles to ,new ,york for a cent or a cent and a half a dozen1 and two thousand miles or so for about two cents and a half a dozen1 the dealers taking the remainder of the five cents as payment for handling4 ,the net difference between the price paid per pound for butter at the creamery1 whether in ,new ,york ,city or in the ,mississippi ,valley1 and that paid by the ,new ,york retail dealer averages about one and one-half cents for commission and one cent for freight4 ,in ,december1 ,january and ,february turkeys are taken from the ,texas ranches to marketing centers1 the transportation charge on ten birds weighing one hundred and twenty pounds being about #be cents4 ,after these ten birds have been dressed and packed they weigh about one hundred and two pounds1 and the freight rate from ,texas to ,new ,york is #a4ej for #ajj pounds4 ,that is1 a ,texas turkey that retails in the ,new ,york market for #bj cents a pound will have paid one and three-fourths cents per pound to the railroads that took it from the ranch to the concentration point and thence to the market4 ,the farmer in ,texas received about nine cents per pound1 leaving a trifle over nine cents to be divided between the packing house1 the produce merchant and the retail dealer4 ,chickens and other dressed poultry that come from ,chicago pay a freight rate of about three-fourths of a cent a pound1 the railroad company supplying a refrigerator car1 and keeping them iced while in transit4 ,the rail rate from ,chicago to ,new ,york on grain and grain products for domestic consumption has been about #ag cents per #ajj pounds2 that is1 a bushel of oats or corn or wheat1 that may bring in ,new ,york anywhere from #dj cents to #a1 has been brought from the ,western farm for from eight to fifteen cents4 ,hay that has yielded the farmer #ah or #ai a ton and sells in ,new ,york at about #bd has paid the railroads somewhere from #c to #e per ton1 according to whether it came from the meadows of the ,ohio or the ,mississippi ,valleys4 ,a bullock that weighs #a1bjj pounds will1 at ,chicago1 bring on an average #e4ej per #ajj pounds1 which includes an average of five cents per #ajj pounds for freight from the grazing grounds4 ,its total value at the stock yards1 therefore1 is #ff4 ,when it has passed through the packing house its weight will have been reduced to #gjj pounds4 ,from ,chicago to ,new ,york it will pay #de cents per #ajj pounds freight or1 in other words1 the #gjj-pound carcass1 which1 if retailed at an average of #ae cents a pound would bring #aje1 has paid the railroads between #c4ej and #d from the far ,west to the metropolis4 ,on potatoes the freight rate per barrel containing about two and a half bushels is #a4je from ,florida1 #fe cents from ,south ,carolina1 #de cents from ,north ,carolina1 #cj cents from ,virginia1 and from this #ab cents per bushel the rate scales down to five or six cents per bushel from nearby regions4 ,the freight rate on tomatoes from ,florida is #be cents per package of six baskets1 from ,texas #ae cents for twelve quarts1 from ,mississippi #gf cents per #ajj pounds1 and from the nearby farms eight cents per bushel of twenty-eight quarts4 ,the freight rate on cantaloups to ,new ,york ranges from less than a cent for a melon from the ,carolinas to about two and a half cents for that from ,california4 ,oranges from ,florida to ,new ,york pay the railroads from four to nine cents a dozen1 and those from ,california six to twelve cents a dozen1 as they may be large or small4 ,a three-pound can of tomatoes from ,maryland pays the railroad about one-half cent per can4 ,the freight rates to ,new ,york on foodstuffs have been selected as typical of the transportation charges applying on such commodities in the main channels of traffic from the ,west to the ,east2 and1 in so far as fruits and vegetables are concerned1 from the ,south to the ,east4 ,the transportation charge per consumer's unit on these foodstuffs is a trifle less to ,philadelphia and adjacent ,delaware and ,new ,jersey2 another fraction lower to the great ,pittsburg district1 and still lower to the cities of the ,west and ,south that are nearer the places of production4 ,as prices of food products fluctuate within a fairly wide range and freight rates also fluctuate1 though within but a very narrow range1 the rates and prices specified in the foregoing1 as well as in the succeeding paragraphs of this chapter1 cannot be considered as of specific application at any given time in the future4 ,they were exact at the time they were collated and will very closely approximate accuracy at any period4 ,as ,new ,york may be considered representative of the places to which edible products of the ,west and ,south are consigned1 so also may ,st4 ,louis be considered a typical center of reception of the manufactured products of the ,east4 ,the information given in the immediately following paragraphs was obtained from merchants and manufacturers of that city4 ,the transportation charge on the material entering into a pair of shoes made in a ,st4 ,louis factory averages one and one-quarter cents4 ,the transportation charge required to place that pair of shoes in the hands of a consumer in any part of the ,united ,states averages between two and three cents4 ,the material entering into an ordinary bedstead1 such as retails in ,st4 ,louis for #h1 will have paid the railroad about #dj cents4 ,from ten pounds of nails made in ,pittsburg and retailed in ,st4 ,louis the railroad will have obtained a trifle over two cents1 and from ten pounds of wire two and one-half cents4 ,an axe made in the ,pittsburg district that retails in ,st4 ,louis for #a will have paid the railroads one and one-fourth cents4 ,at ,kansas ,city that same axe will have paid freight of a fraction over four cents and at ,denver1 where the retail price will have advanced to #a4cj1 it will have paid #ad cents freight4 ,a padlock retailing in ,st4 ,louis at #ej cents will have paid the railroads a little more than one-half cent2 at ,kansas ,city it will have paid one cent1 and at ,denver1 where the retail price advances to #ge cents1 it will have paid two cents to the railroads4 ,an eighteen-gallon galvanized iron tub that retails in ,st4 ,louis at #hj cents will have paid the railroad from place of manufacture two and three-tenths cents2 to ,kansas ,city the freight rate will have been six and one-fourth cents1 and to ,denver #ae cents1 but here the retail price of that tub is #a4 ,a stove that weighs two hundred pounds and retails in ,st4 ,louis for #ah will1 in carload lots1 pay #dd cents to ,kansas ,city or ,omaha1 and retail there for #bb2 #a4dh to ,denver1 and retail there for #be2 #b4ej to ,seattle1 and retail there for #cj4 ,when a housewife of ,st4 ,louis buys a dozen clothespins she has paid the railroad five ten thousandths of a cent4 ,if she buys a washboard at #ej cents she has paid the railroad forty-two one-hundredths of a cent4 ,in ,denver she would pay for that washboard #fj cents1 of which the railroad would have received two cents4 ,the higher rates and prices that have been specified as applying in ,kansas ,city and ,denver may also be taken as applicable to cities in the interior ,south and ,southwest1 such as ,oklahoma1 ,fort ,worth and ,san ,antonio4 ,in response to inquiries made concerning certain staple articles of daily and general use in various of the smaller cities and towns extending from ,massachusetts to ,georgia and ,illinois1 and from ,michigan to ,mississippi1 it has been ascertained that throughout this region the transportation charge on such articles ranges as follows3 ,on a man's suit of clothes1 from two to eight cents2 on calicos and ginghams1 from one-fiftieth of a cent to one-fifth of a cent a yard2 the freight charge paid on the entire apparel of a fully dressed man or woman in this section would range perhaps from six or seven to #af or #ah cents4 ,the rate on an ordinary dining room suite consisting of table1 sideboard1 six chairs and a china closet would average from #ge cents to #e1 on a parlor suite of sofa and four chairs from #ej cents to #d1 on a bedstead and its equipment from #ge cents to #a4ej1 in each case from the factory to the home4 ,the lumber used in the ordinary eight-room house will have paid the railroads from #ce to #aej1 and the brick from #f or #h to #ej or #fj1 as the kiln may be near or remote4 ,a fifty-pound sack of flour from the mill1 even at ,minneapolis1 in but a few cases has paid a freight rate of over eight or nine cents to the consumer4 ,products of the beef or the hog are carried from the western packing houses throughout this territory at rates that vary from a fifth of a cent to not exceeding a cent per pound4 ,it has not been difficult to secure such information as applies in the main to the transportation charge borne by a manufactured article from the place of making to the final market1 or on foodstuff from the place of growth to the place of sale to the consumer4 ,data as to the amount of transportation charge carried by the various kinds of raw material entering into a manufactured product has not in many cases been so easy of ascertainment4 ,a principal reason has been that the manufacturers in numbers of instances do not know what it is themselves4 ,many kinds of material are bought at a price which includes delivery at the factory1 the freight rate not coming under the cognizance of the purchaser4 ,the different materials used in a product may have come from such diverse sources1 and paid such varying rates of freight1 that the ascertainment of the total freight charge in any given unit of manufacture would be too difficult to be worth while4 ,in numerous other cases the freight charge is confessedly so small an item that no attempt is made to apportion it as an item of expenditure per unit of product1 the total simply being grouped in the aggregate of expense4 ,the statement that the transportation charge borne by the material entering into an ordinary pair of men's shoes averages one and a quarter cents is the result of a definite calculation made by one of the largest shoe manufacturers of the country4 ,a leading woolen manufacturer estimates that the price of wool at ,boston will average perhaps #cj cents a pound in the grease1 including a transportation charge that will average one cent a pound4 ,the loss in cleaning and scouring is about forty-five per cent41 and the price of a pound of scoured wool will average about #fc cents at the mill4 ,of this about two cents is chargeable to transportation4 ,one hundred pounds of wool will make about seventy pounds of straight woolen cloth1 on which the transportation charge has therefore been a fraction less than three cents a pound4 ,on cloth that is mixed with cotton the transportation charge is less4 ,the rates on woolen goods from any of the ,new ,england mills are so low that a yard of cloth which will sell from #a4ej upwards in any of the western markets will not have paid the railroads more than five cents from the sheep's back in ,colorado to ,massachusetts and back again to the ,mississippi ,river4 ,the following information as to the extent of the transportation charge borne by divers materials of various industries has been obtained in each instance from an authority in that industry4 ,the transportation charge on raw cotton to the mills in ,massachusetts will average from one-half to two-thirds of a cent a pound1 not exceeding one cent per pound even from plantations so remote as those of ,texas4 ,cotton loses from fifteen to twenty per cent4 in the cleaning1 one hundred pounds of cotton making from eighty to eighty-five pounds of cotton goods4 ,as ordinary calico will run about six yards to the pound and sell for about five cents1 the cotton that has paid a freight rate of from #ej cents to #a is woven into #bd worth of calico4 ,the transportation charge on a pair of rubber overshoes1 including the rubber from ,south ,america1 the cotton stock1 and the shipment to the western markets1 averages about two and one-half per cent4 of the cost of those markets4 ,that is1 a pair of rubber overshoes retailing for #ge cents will have paid for transportation1 all told1 less than one and nine-tenths cents4 ,in no one of these examples1 which1 perhaps1 are typical of the entire clothing industries in so far as the use of leather1 wool and cotton are concerned1 is the transportation charge an appreciable factor in the price either of the material to the manufacturer or of the finished article to the consumer4 ,a barrel of flour made in ,minneapolis and transported to ,boston is sold at the time of this writing by the milling company to a dealer of that city1 or any other place in ,new ,england1 for #f4 ,of that #f accrues to the transportation agencies1 for carrying the wheat of which that flour was made from the ,western farm to the ,minneapolis mill1 and for carrying the flour from the mill to ,boston1 an amount that averages #he cents4 ,the proportion of the transportation charge to price at different markets varies with the freight rate4 ,at ,new ,york the milling company would sell that barrel for #e4ie1 which would include a total transportation charge of #hj cents2 at ,philadelphia the selling price would be #e4ij1 the transportation charge #ge cents2 at ,buffalo or ,pittsburg the selling price #e4hj1 and the total transportation charge #fe cents2 at ,atlanta the price #f4bj1 the transportation charge #a4je2 at ,new ,orleans the price #f4aj1 the transportation charge #ie cents4 ,typical rates on leaf tobacco1 averaging in value #ac per #ajj pounds from plantation to warehouse in ,virginia and the ,carolinas1 are from #ae cents to #ba cents per #ajj pounds2 on the smoking tobacco into which this leaf is converted1 and which sells at #dh per #ajj pounds1 from ,richmond1 ,virginia1 to ,new ,york ,city #cj cents1 to ,chicago #ei cents1 to ,kansas ,city #a4af4 ,rates from the plantation to the warehouse on the leaf tobacco of the ,kentucky and ,tennessee region1 which also brings an average of #ac per #ajj pounds1 are from #e cents for short to #bj cents for longer distances4 ,the plug tobacco into which this leaf is converted is sold at #bh per #ajj pounds1 being distributed on such rates as these3 ,st4 ,louis to ,louisville1 #be cents2 to ,new ,york ,city1 #eh cents2 to ,kansas ,city1 #ce cents2 to ,seattle1 #b4bj4 ,manufactured tobacco in all cases is sold at a price which includes delivery from the factory to the place of consignment1 wherever it may be1 in the ,united ,stales4 ,the freight rate on cane sugar from the central in the ,louisiana district to the final refinery ranges from #e to #aj cents per #ajj pounds1 the refinery paying from #c4ej to #d4ej for the sugar4 ,sugar that is sold by the refining company at #d to #e cents a pound retails at #f cents1 the dealer making little or no profit4 ,as a town of five to ten thousand people at the average per capita consumption of seventy-five pounds a year will consume a carload of sugar in about a week1 the jobbing of sugar is greatly decentralized4 ,contrasting with this retail price of #f per hundred pounds typical distributive rates are1 from ,new ,york to ,chicago #be cents1 to ,st4 ,paul #cj cents1 to ,kansas ,city #db cents2 from ,new ,orleans to ,chicago #be cents1 to ,atlanta #bd cents1 to ,kansas ,city #cd cents4 ,the freight charge on sugar beets raised in ,colorado and ,utah from the farm to the refinery is always paid by the sugar company4 ,it averages from #cj to #dj cents per ton1 or for a distance of fifty miles is as much as #ej cents4 ,a ton of beets contains about three hundred pounds of sugar1 which1 allowing for an average loss during extraction1 would produce two hundred and forty pounds of refined sugar4 ,this is sent from the factories to the principal places of storage--,kansas ,city1 ,omaha and ,st4 ,louis4 ,the aggregate freight charge from the farm to ,st4 ,louis on these two hundred and forty pounds is about #a4gj1 and the aggregate revenue to the refinery at five cents a pound1 #ab4 ,while the price of bananas is subject to great fluctuation1 a fair average at ,new ,york1 ,philadelphia1 ,baltimore1 ,charleston1 ,mobile and ,new ,orleans1 the ports of import1 is #a4ge per #ajj pounds4 ,the average rail charge for carload lots from port to market is from #cj to #ej cents per #ajj pounds4 ,about one-third of the bananas consumed in this country are received at the ,north ,atlantic ports1 whence they are distributed throughout the ,eastern and ,middle ,states4 ,the remaining two-thirds1 which supply the ,south and ,west1 are received at the ,southern ports4 ,immediately upon receipt at ,new ,orleans1 for example1 shipments are made to the ,north in train loads that they may be taken out of the warm climate before they spoil1 and cars are re-consigned en route at the instance of the company which has very thoroughly organized the banana business1 an allied company having about sixty agencies with men who devote their entire time to extending the sale of the fruit4 ,for hides that pay a freight rate from the packing houses at ,chicago to ,new ,york of #cj cents per #ajj pounds1 the butcher receives1 according to quality1 from #f or #g to #aa or #ab per #ajj pounds4 ,the butchers remote from market have the freight rate deducted from the price paid them for hides1 but it is a trifle1 seldom exceeding five cents per #ajj pounds4 ,the hide loses from twenty-five to thirty-five per cent4 in the process of tanning2 the price of leather is fixed by measure and not by weight4 ,the rate on tanned leather1 however1 between ,chicago and ,boston is #ci cents per #ajj pounds4 ,the railroads make low rates on fertilizer to encourage its use by the farmers1 it being1 of course1 to the interest of a railroad to encourage the production of larger crops that its traffic may be augmented4 ,fertilizer of different grades brings from #ah and #bj to #ee and #fj a ton4 ,typical rail rates from the places of manufacture are from ,jersey ,city to ,trenton1 ,new ,jersey1 #a4aj per ton1 and from ,boston to ,portland #a4bj per ton--both rates applying in carload lots4 ,in the ,south1 where fertilizer is extensively utilized1 representative rates are from ,atlanta to ,thomasville #b4ej1 from ,charleston to ,columbia #b4jj per ton4 ,when allowance is made for the elimination of water from pulp and the shrinkage in its manufacture into paper1 the average freight rate borne by the material entering into paper at the northern ,new ,england mill is about #ac cents per #ajj pounds4 ,the manufacturers consider #ag cents per #ajj pounds to be the average freight rate on the paper from the mill to places north of the ,ohio and east of the ,mississippi ,rivers4 ,the aggregate freight charge borne on the average by the #ajj pounds of paper which sells at the factory for #b4ej is therefore #cj cents4 ,as with all things else1 the rates on the ores of the far western region have been adjusted under the necessity of the transportation agencies to so serve the mines that their products may be marketed4 ,the rate upon the ore from the mine to the smelter1 upon the metal from the smelter to the refinery1 and upon the refined lead or refined copper from ,chicago to the seaboard market1 are all determined by this prime factor4 ,the freight charges1 for example1 from the ,coeur d',alene district in northern ,idaho on the ores from which the extraneous material has been roughly separated1 to the ,puget ,sound refineries1 reach a maximum of #f per ton for a distance of four or five hundred miles1 and the rate from ,puget ,sound to ,new ,york is #ad4ej1 the average transportation charge1 therefore1 being about #bj per ton4 ,the value of a ton of copper at #ab cents a pound is #bdj1 and a ton of lead at four cents a pound is #hj4 ,copper passes through manifold and expensive processes and its extensive consumption has followed the development of electricity4 ,lead does not require so many or so expensive workings1 and it has long been a great staple of general use4 ,the mine farther from a smelter naturally has to pay a higher rate of freight than a mine nearer to it1 receiving1 therefore1 a lesser net price for its product1 but the railroads are obliged to so adjust rates that practically every mine can reach a market4 ,the rate on refined petroleum between ,new ,york and ,chicago is #bg cents per #ajj pounds1 the average rate paid north of the ,ohio and east of the ,mississippi ,rivers being from eight to ten cents per #ajj pounds4 ,from ,toledo to ,atlanta the rate is #dh cents1 from ,whiting #df cents1 from ,new ,orleans #ce cents4 ,the rate from ,chicago to the ,missouri ,river is #bb cents1 to ,st4 ,louis #aj cents2 while the rate from the ,kansas field to ,st4 ,louis is #ag cents4 ,one hundred pounds of refined oil contain approximately sixteen gallons which1 at an average price of #ab cents a gallon at the refinery1 would aggregate #b4 ,the price per gallon to the consumer is increased one cent with each increment of seven cents in the freight charge4 ,the principal biscuit company receives from #h to #af per #ajj pounds for its crackers and cakes1 averaging #aj per #ajj pounds for its leading brand4 ,from its ,new ,york plant to ,boston the freight rates are #ai cents per #ajj pounds1 to ,atlanta #fb cents4 ,the rate from ,chicago to ,montgomery is #fi cents1 to ,houston #ha cents1 to ,denver #ig cents4 ,from either ,new ,york or ,chicago to the ,pacific ,coast the rate is #a4fj4 ,these rates apply to carload lots1 all goods being sold delivered1 the company absorbing the freight4 ,the retail price is the same all over the ,united ,states as it is with shoes1 cigars1 soap1 proprietary medicines and dozens of other familiar articles4 ,on cotton1 the great staple product of the ,south1 the freight rate structure has been in process of development even a longer time than that affecting the movement of grain from the ,west4 ,from the plantation into ,memphis1 the largest inland cotton center of the ,united ,states1 a typical rate is #cj cents per #ajj pounds for one hundred and fifty miles4 ,from ,memphis to ,boston the rate is #eg cents1 and from ,memphis to the ,gulf #cj cents per #ajj pounds4 ,from ,augusta1 ,ga41 a central market of the ,eastern cotton growing district1 the rate to ,charleston and ,savannah is #ba cents1 to ,brunswick #bc cents and to ,norfolk #bf cents per #ajj pounds4 ,a bale of cotton contains five hundred pounds and is therefore worth1 at #aa cents a pound1 #ee4 ,the aggregate transportation charge on this bale from the plantation1 one hundred and fifty miles from ,memphis1 to ,boston1 is #d4bg4 ,mainly because of the rapid shifting of the sources of supply1 there has not yet been developed a stable structure of rates for the movement of lumber in all parts of the ,united ,states4 ,by way of illustration1 however1 it may be said that a fair average rate on lumber into ,memphis from the forests of ,arkansas is six cents per #ajj pounds1 or #b4dj per #a1jjj feet4 ,lumber going from ,memphis to ,new ,orleans for export will pay #d4hj1 or a total transportation charge from the forest of #g4bj per #a1jjj feet4 ,a fair average rate to the markets in ,ohio and ,indiana is #h per #a1jjj feet1 a total transportation charge from the forest of #aj4dj4 ,this is on the kind of lumber that in #aije and #aijf sold at about #dj4 ,the rate on yellow pine from ,new ,orleans to ,chicago is #bd cents per #ajj pounds4 ,there is an equalization of rates on the iron ore from the upper lakes in that the rates of the boat lines from the ore mines are the same to each of the ,lake ,erie ports4 ,from thence to the furnaces they are adjusted under the policy of the railroads to make the transportation charge on the raw material required to make a ton of pig iron approximate the same amount at each of the competing furnaces of southern ,ohio1 ,pittsburg1 ,wheeling1 in the ,mahoning and ,shenango ,valleys1 and even as far as the ,schuylkill ,valley4 ,how closely this equalization is effected is shown by the fact that the transportation charge on the ore1 coke and limestone required to produce one ton of pig-iron is as follows in these respective districts3 ,at the furnaces on the ,monongahela ,river in the ,pittsburg district1 #e4hb2 at the furnaces of the ,mahoning and ,shenango ,valleys1 #e4eg2 at the furnaces of the ,wheeling district1 #e4gh4 ,these charges compare favorably with those at the furnaces on the ,lake ,shore in the ,chicago district1 which aggregate #e4fc per ton of pig-iron1 but are higher than at the furnaces on the ,lake ,shore in the ,cleveland district1 where they aggregate but #d4gb4 ,the rates on coal1 which gives return loads to the cars that take the ore south front the ,lake ,erie ports1 are maintained at established differences between the coal fields of ,ohio1 ,pittsburg and ,west ,virginia4 ,the rates in effect in the spring of #aijh were #a per ton from southern ,ohio1 #ij cents from southeastern ,ohio1 #a per ton from the ,pittsburg field and #a4ae a ton from ,west ,virginia4 ,the claim of the railroads that the rates on foodstuffs are not high enough to enter as a factor in fixing the selling price is fully substantiated by the statements of the dealers in such products4 ,that is1 the conditions are1 with negligible exceptions1 such that if the price obtainable in the markets be sufficient to encourage the growing of livestock1 grains1 dairy products1 fruits or vegetables1 the rate of freight1 from whatever locality to whatever market1 is sufficiently low to allow the producer to enter that market4 ,his profits are1 however1 as a matter of course1 diminished by the amount of freight which he pays1 and1 as a rule1 the farther the place of production from the markets the greater is the freight charge4 ,the differences in the net return to the producer are almost invariably reflected in the value of the land1 which is lower as the distance from the markets is greater4 ,largely because of the defective system of mercantile distribution the grower of foodstuffs obtains a smaller proportion of the price paid by the consumer than accrues to the grower of any other agricultural product4 ,where1 as in this country1 the opportunity for the extension of cultivation is practically unlimited1 a good market one season leads the farmers of any district to increase their production up to the point of minimum profit and the railroads are then besought for lower rates2 when unfavorable weather or other conditions reduce their output they are also disgruntled4 ,it therefore rarely happens that the grower1 especially of the quickly perishable foodstuffs1 is entirely satisfied with the freight rates4 ,a controversy1 that it is scarcely an exaggeration to designate as typical1 occurred several years ago between the growers of watermelons in a ,southwestern ,state and the railroads conveying the melons to the primary markets4 ,in comparatively a few years that region had become so productive that the shipments of watermelons over one road alone ranged from #a1djj to #a1hjj cars during a watermelon season1 deliveries being made all over ,ohio and ,indiana through dealers from those ,states who came down and bought the melons at the farms4 ,the contention for lower rates had waxed so warm that a reduction in the watermelon rate became the issue upon which a legislative campaign was fought4 ,the candidate pledged to secure a reduction in the rate was elected1 and introduced a bill1 which was enacted by the legislature1 making the rate to the nearest primary market #g cents per #ajj pounds4 ,the railroad companies put this rate in effect and used it as a basis for the lowering of rates to the territory beyond4 ,during the year of this rate reduction the traffic department of the railroad company referred to sent word to the farmers that the company had handled #a1ejj cars of melons that season1 the prompt shipment of which had been highly satisfactory to the growers4 ,it furthermore said that the movement of these melons from that territory was a one-way traffic entirely1 it being necessary to send special cars empty for the crop4 ,these were necessarily stock cars that there might be ample ventilation1 but they had to be supplied with extra slats in order that the melons might not fall out4 ,it was necessary for them to be switched in requisite number on side tracks especially built adjoining the farms where the fruit was grown2 that switching engines be kept at work1 putting cars in and taking cars out all night and all day4 ,the cars of melons1 moreover1 had to be hauled on special trains at a high rate of speed to get them to the markets before they spoiled4 ,this reduced the tonnage per train fifteen or twenty per cent below the maximum that could be hauled at the normal freight train speed4 ,a car with the average allowable load of #a1ajj watermelons would contain but about twelve tons1 although its capacity would be eighteen or twenty tons2 the weight of the car exceeded the weight of the load4 ,the switching and other special movements necessitated the employment of night telegraph operators and other extra help at the melon fields4 ,all of these conditions led the assistant to the general manager of the company to make an analysis of the expenditure as compared with the earnings4 ,waybills were abstracted and the receipts listed4 ,a tabulation was made of the revenue tonnage1 the gross tonnage1 the tare weight1 and the expenses incurred in behalf of the traffic4 ,he found that the handling of the #a1ejj cars of watermelons involved a loss to the company of #ab1jjj if the expenses of operation alone were considered4 ,the results of this investigation were brought to the attention of the traffic department and the next spring it sent a circular to the farmers in the truck region urging that the watermelon acreage be reduced1 as the rates on that business were not remunerative1 and stating that the railroad would not undertake to handle it except in the regular cars that were brought into the territory in the ordinary course of traffic2 that there would be no special trains1 nor special service of any character4 ,the melon growers at once notified the ,state ,railroad ,commission1 which1 in turn1 requested the railroad company and the melon growers to attend a meeting to discuss the whole subject4 ,when the meeting convened the chairman called upon the railroads to say why they had caused so much trouble4 ,the railroad representative1 who was the aforesaid assistant to the general manager1 stated that as he had been invited to attend the meeting it might be proper for whomsoever instigated it to open the discussion4 ,several shippers made statements of their complaints1 all admitting1 however1 that the melon business had become very profitable1--one grower saying that #cjj to #ejj per car was being made out of a crop4 ,the railroad representative then made a reply1 showing the loss to the company from handling the business for the previous year1 and stated that unless cost for the handling and something by way of profit could be obtained1 the company would prefer to move other crops4 ,he showed that it had been necessary to park #cej to #djj especially prepared stock cars in the melon territory2 that it had taken a month or six weeks to gather these cars1 which had to be hauled empty to the melon fields4 ,he then pointed out that the rate per melon was less than a cent and a quarter1 whereas it had cost the farmer four or five cents per melon to bring it by wagon the one or two or three miles to the railroad track4 ,the chairman objected to some of the analyses1 especially to the contrast of four or five cents per melon for the wagon haul from the farm with the cent or a cent and a half per melon for the railroad haul of two hundred miles4 ,when the railroad man had finished1 farmers from all over the room began to ask questions directly of him4 ,they wanted to know how much they should pay to afford the railroad some slight profit4 ,they were told #ab or #ab1 cents4 ,the chairman said3 ,the rate cannot be changed4 ,it has been fixed by law at #g cents and that is the rate4 ,i am here to protect the people of these counties4 ,the railroad man suggested that his company might be willing in addition to affix the necessary slats to the stock cars and perform the switching for #e to #f per car4 ,the farmers were willing to accept this1 but the chairman insisted that it was contrary to law1 and finally said in his wrath1 ,if you men here are going to deal with the railroad company you can do it without me4 ,this meeting is adjourned4 ,with one exception the farmers remained in the hall and expressed a willingness to pay a rate of #ab cents per #ajj pounds4 ,returning to the main discussion1 we have found that the rates on raw materials are so adjusted as to permit the manufacture of any staple article at any logical place of manufacture4 ,on the raw material of wearing apparel the freight rate is entirely unimportant4 ,on the lumber that enters into building material1 on the ore1 coke1 and limestone used in the manufacture of iron and steel the freight rate is sufficient to become an appreciable factor in the cost of manufacture4 ,on brick1 coal and cement the selling price is the higher by the amount of the freight charge1 which for distances sometimes not considerable exceeds the value of the commodity at the place of production4 ,the freight charge1 even on those heavier commodities1 however1 is far less in proportion to the wage of the day laborer as well as to the incomes and salaries received in the ,united ,states than in any other country4 ,this is obviously a better test of comparison than that based upon rates of freight as expressed in money4 ,to say that a specific rate is twenty cents in the ,united ,states1 a shilling in ,great ,britain1 a franc in ,france1 or a mark in ,germany1 conveys an inadequate idea4 ,when it is ascertained that the average wage of the day laborer in the ,united ,states is higher in comparison with the average rate of transportation than in any other country1 the comparison is significant4 ,in this country a continually increasing amount of railroad transportation can be purchased with the wage of the day laborer4 ,with the sum of money representing the value of a given unit of any of the staple commodities of commerce1 also can a continually increasing amount of railroad transportation be purchased4 ,that which makes possible the low freight rate of the ,american railroads is the magnitude of the scale upon which the transportation is conducted4 ,the large cars1 with a capacity of from thirty to fifty tons1 and the powerful locomotives that draw a score or more of these loaded cars in one train1 permit an almost infinitesimal freight charge per pound or per yard that1 however1 yields by the carload or by the trainload no inconsiderable revenue4 ,for example1 the average weight of the carload of food products is about #cj1jjj pounds4 ,if the freight on such a carload be #cjj the rate per pound would be only one cent1 and there is scarcely a commodity upon which a freight rate of one cent per pound makes any difference in the retail price4 ,as a matter of fact a carload of food products does not bring to the railroad so much revenue as #cjj unless it has been moved from a far region2 for instance1 from the ,dakotas or ,texas to ,new ,york4 ,specific complaint in regard to the freight rates of the ,united ,states for many years has not1 except in a small minority of cases1 been based on the ground that they have prevented foodstuffs from finding a market1 raw material from reaching places of manufacture1 or finished products from distribution4 ,while the difference of a cent or two in the rate of freight may not in the least interfere with the conduct of industry or commerce in the aggregate1 such a slight difference1 may perhaps determine whether a manufacturer obtain his raw material from this or that source of supply1 whether a wholesale dealer obtain his stock from the manufacturer in one1 or the manufacturer in another city1 whether a retail dealer make his purchases from the wholesale dealer in this city or in that city4 ,that is1 for example1 the prices of the products at the sources of supply being equal1 a difference in the rate of freight may determine whether ,cleveland1 ,ohio1 obtain potatoes from ,michigan or from upper ,new ,york2 whether a factory in ,louisville obtain coal from the fields of southern ,indiana or central ,kentucky4 ,a carpenter in ,des ,moines may perhaps pay a dollar for twenty pounds of nails without knowing or caring what the freight rate may have been1 or where they may have come from4 ,a difference1 however1 of a few cents a hundred pounds in the rate of freight may have led the hardware dealer to have purchased the nails in ,chicago or ,st4 ,louis or even directly from ,pittsburg4 ,as the purchase of raw material tends toward the prosperity of the region where it is produced1 as the operation of a factory tends to the increase of population1 to appreciation in the value of real estate and the augmentation of business at the place of its location1 so also does the growth of a wholesale business or of a retail business aid in the development of its surroundings4 ,producers1 manufacturers1 wholesalers and retailers naturally all desire to extend their sales1 to reach further markets in competition with their rivals1 and are supported in this desire by the communities to whose welfare they contribute4 ,any difference in freight rates that gives a producer of raw material1 a manufacturer1 a wholesale distributer1 or a retail merchant an advantage over a competitor of another locality is therefore promptly made the subject of complaint4 ,the pressure brought upon the railroads by such competing producers1 manufacturers and dealers has been a very important factor in the development of certain arrangements of freight rates1 which we shall term the ,regional ,rate ,structures1 each of which has grown out of the various characteristics of a traffic region and has become adapted to those characteristics4 ,other arrangements of freight rates which have grown out of the needs entailed by the production and marketing of certain of the principal articles entering into commerce we shall designate as the ,commodity ,rate ,structures4 7,end of ,chapter ,,vi47 ,,the ,,freight ,,rate ,,primer ,adapted from the ,illustrated ,pamphlet1 ,so ,entitled4 ,issued by the ,new ,york ,central and ,hudson ,river ,railroad ,company4 ,,the ,a4 ,b4 ,c4 ,,of ,,the ,,matter4 ,there has been much wild talk as to the extent of the over-capitalization of our railroads4 ,the census reports on the commercial value of the railroads of the country1 together with the reports made to the ,interstate ,commerce ,commission by the railroads on their cost of construction1 tend to show that1 as a whole1 the railroad property of the country is worth as much as the securities representing it1 and that1 in the consensus of opinion of investors1 the total value of stock and bonds is greater than their total face value1 notwithstanding the 'water' that has been injected in particular places4 ,the huge value of terminals1 the immense expenditures in recent years in double-tracking and improving grades1 roadbeds and structures1 have brought the total investments to a point where the opinion that the real value is greater than the face value is probably true4 7,from ,president ,roosevelt's ,decoration-,day address at ,indianapolis1 ,may #cj1 #aijg47 ,,the ,x4 ,y4 ,z4 ,,of ,,the ,,situation4 ,an army of more than #a1ejj1jjj men is employed directly in the operation and maintenance of the railroads in the ,united ,states1 and millions of other men are furnished employment indirectly in the mines1 the forests and the factories1 supplying the railroads with approximately one and one-quarter billions of dollars' worth of material and equipment annually consumed4 ,these are wonderfully interesting and impressive facts2 but the fact of greater interest and worthy of the most careful thought of every citizen of this country is that this vast army of men engaged in producing the commodity of transportation at an average cost more than #dj per cent lower than is shown by any other country is paid an average wage more than #ej per cent higher than is paid in any other country where railroads exist4 7,w4 ,c4 ,brown1 before the ,michigan ,manufacturers' ,association1 ,june #bb1 #aijh47 ,,lesson ,i4 ,,freight ,,rates ,,and ,,the ,,clothes ,,we ,,wear4 ,whom have we here8 ,eleven different types of ,american citizens1 standing in a row1 clad in the varied uniforms or togs of their several occupations or leisure from hod-carrier to the dude in dress suit and opera hat4 ,these men all live in the ,mississippi ,valley4 ,their clothes were made in ,new ,england4 ,they paid the railroads nine cents apiece for transporting their clothes1 including shoes and hats1 from the point of manufacture to the ,mississippi ,valley4 ,the combined freight charges on all the clothes worn by the eleven men in the group1 including shoes and hats1 was less than one dollar4 ,if freight rates were advanced #aj per cent the increased price to these men on their entire wearing apparel would be less than one cent each4 ,if they have to pay more than that per cent it will not be because freight rates are advanced4 ,,lesson ,,ii4 ,,freight ,,rates ,,and ,,agricultural ,,implements4 ,consider the ,mc,cormick harvester4 ,it mows1 gathers1 binds and stacks the bearded grain1 while its proud possessor cracks his whip above the backs of his three-horse team4 ,it has banished the nightmare of farm mortgages from the great prairies of the ,west4 ,this particular harvester we are considering is cutting grain one hundred miles west of the ,mississippi ,river4 ,it was built in ,chicago and sold for #acj4 ,the farmer paid #a4gf to have it brought to him from ,chicago1 three hundred miles away4 ,if freight rates were advanced #aj per cent the cost of the harvester would be increased seventeen and one-half cents4 ,,lesson ,,iii4 ,,freight ,,rates ,,and ,,cooking ,,utensils4 ,next to the harvester the modern kitchen cooking range has added more joys and years to the farmer's life than anything in the cornucopia of modern civilization4 ,here is a standard range4 ,it is a thing of beauty as well as a means for cooking everything your mother used to cook and much more4 ,the freight on a steel range1 weighing from #djj to #ejj pounds1 from ,detroit to points in the ,mississippi ,valley1 approximates from #b to #b4ej per stove on stoves which retail at from #ee to #fj each4 ,an increase of #aj per cent would add from twenty to twenty-five cents to the cost of the stove1 which1 divided by the life of the stove1 taking the low average of ten years1 would add one and one-half to two cents per year to the cost4 ,on heating stoves the increase would be about one-third less4 ,,lesson ,,iv4 ,,freight ,,rates ,,and ,,refrigerators4 ,what are the cold facts about refrigerators8 ,what cold storage is to the whole people1 the modern refrigerator is to the individual family4 ,it preserves all things sweet and clean and wholesome4 ,now the freight on a refrigerator1 such as is used by the ordinary family1 from ,belding1 ,mich41 where they are manufactured in large quantities1 to ,new ,york is approximately seventy-five cents4 ,an increase of #aj per cent would add seven and one-half cents to the cost of the refrigerator1 delivered in ,new ,york ,city4 ,,lesson ,v4 ,,freight ,,rates ,,and ,,household ,,furniture4 ,ever since ,grand ,rapids became the furniture hub of the ,union there has been no excuse for any ,american family being without its antique or modern dining room set4 ,look at this suite consisting of a solid table1 six chairs1 sideboard and china closet1 etc4 ,it could be bought ,f4 ,o4 ,b4 at ,grand ,rapids for from #ee to #ge1 according to the wood and finish4 ,it weighs approximately #gej pounds and the freight from the factory to ,chicago would be #a4fj4 ,an increase of #aj per cent would add sixteen cents to the cost of all this furniture4 ,,lesson ,,vi4 ,,freight ,,rates ,,and ,a ,,business ,,suit4 ,behold this business suit which no one would be ashamed to wear4 ,it might cost anywhere from #aj up to #ce1 according to the reputation of the tailor or the rent and advertising rates he pays4 ,the freight rate on such a suit of clothes1 including hat and shoes1 for a distance of #cjj miles from any of our large jobbing or distributing centers is approximately three and one-half cents4 ,a #aj per cent increase would add a little more than one-third of one cent to the cost of this suit1 and it would add no more if it cost #ej or #ajj4 ,,lesson ,,vii4 ,,freight ,,rates ,,and ,,king ,,cotton4 ,befo' de wah cotton was king4 ,of our exports it still leads all our domestic products1 having no second in sight4 ,if the entire cotton crop of the ,united ,states was compressed into one bale its value would be about #gej1jjj1jjj4 ,of this bale in #aijh the railways got a little jag worth according to the ,interstate ,commerce ,commission #ab1cid1jjj1 or less than #b per cent4 ,an advance of #aj per cent in rates on cotton could not add more than one-fiftieth of a cent per pound to the price of cotton4 ,,lesson ,,viii4 ,,freight ,,rates ,,and ,a ,,sack ,,of ,,flour4 ,minneapolis1 as all good little school children know1 is the seat of the flour industry of the ,united ,states4 ,if they do not learn this at school it is impressed upon their receptive minds by every illuminated billboard and painted rock that meets their gaze from ,eastport to ,california4 ,there are half a dozen brands of flour ground at ,minneapolis and every one is better than all others4 ,the rate on this incomparable product in carloads from ,minneapolis to ,new ,york is #be cents per hundred pounds4 ,that is #ab cents per fifty-pound sack4 ,this flour is sold to the consumer in ,new ,york at approximately #a4he per fifty-pound sack 7or it was when this was written74 ,an increase of #aj per cent in freight rates would add but one and one-quarter cents to the price of a fifty-pound sack1 or a little less than two one-hundredths of one cent per pound4 ,the freight rate on a fifty-pound sack of flour from ,minneapolis to ,chicago is five cents per sack4 ,an increase of #aj per cent in rates would add only five mills per sack between these points1 or one one-hundredth of one cent per pound4 ,,lesson ,,ix4 ,,freight ,,rates ,,and ,,dressed ,,beef4 ,the reason cattle are butchered and carried to the consumer as dressed beef rather than driven to market on foot or hauled as live stock1 is that the freight charge is less and the beef arrives in better condition4 ,little children in ,new ,york and ,boston appreciate this1 if the wise grown-ups of the ,west sometimes seem to doubt it4 ,the rate on dressed beef from ,chicago to ,new ,york is forty-five cents per hundred pounds4 ,the average price of this beef to the consumer in ,new ,york is 7or was7 approximately twenty-five cents per pound4 ,a #aj per cent increase in freight rates would add less than five one-hundredths of one cent per pound4 ,if freight rates were advanced #aj per cent1 the increased cost in ,new ,york ,city of a two-rib roast of the best quality1 weighing eight pounds1 retailing for #a4ib1 would be less than one-half cent4 ,surely this is not an excessive price to pay for ,national prosperity and industrial peace4 ,,lesson ,x4 ,,freight ,,on ,,eggs1 ,,butter ,,and ,,poultry4 ,eggs were cheaper when ,columbus experimented with them than they are now1 but it cost more to carry a dozen eggs or a firkin of butter ten miles in #adib than it would to carry them #ajj miles now4 ,the rate on butter and eggs from points in ,eastern ,iowa to ,new ,york--a distance of approximately #a1bjj miles--is eighty-four cents per hundred pounds4 ,on dressed poultry from the same points to ,new ,york the rate is ninety-six and one-half cents4 ,the eggs are sold to the consumer by the dozen and the other commodities by the pound2 and the consumer pays every farthing of freight that has accrued from the time the egg is laid1 which he buys in the original package1 or as dressed poultry1 or from the time the cow is milked1 from which the butter is made4 ,an increase of #aj per cent would add eight one-hundredths of one cent per pound to the price the consumer pays for butter and eggs1 and it would add nine and one-half one-hundredths of one per cent per pound to the cost of dressed poultry1 for which he pays from twenty to thirty cents per pound4 ,,lesson ,,xi4 ,,freight ,,rates ,,and ,,leather ,,belting4 ,some little children and many of their mothers do not know that a great deal of the power that makes the wheels go round in this industrial beehive is transmitted by belting4 ,the shops of the ,lake ,shore ,michigan ,southern ,railway at ,elkhart1 ,indiana1 are equipped with #ac1bhh running feet1 or practically two and one-half miles1 of leather belting4 ,this belting cost the railroad company #f1bce1 or an average of #df4i cents per running foot4 ,the belting was shipped from ,boston to ,elkhart1 a distance of #icg miles4 ,the total freight charges amounted to #ah4cg1 or fourteen one-hundredths of one cent per running foot4 ,an increase of #aj per cent would add #a4hc to this cost1 or fourteen one-thousandths of one cent per running foot4 ,this belting1 moreover1 cost the railroad company #a1jhb more than it would have cost at the prices prevailing in #ahii1 representing an increase of #ba per cent4 ,during this same period there was no change whatever in the freight rate4 ,,lesson ,,xii4 ,,the ,,railways ,,and ,,national ,,development4 ,now listen to the sober words of the one man who has perhaps given more official attention to the subject than any other citizen of the republic3 ,without regard to the personnel of railroad officials1 without regard primarily to the interest of stockholders1 but in the interest of public welfare and national prosperity1 we must permit railway earnings to be adequate for railroad improvement at advantage and profit4 ,to my mind it is a most impressive fact1 so great as to elude the grasp of imagination1 that the railway traffic of the country fully doubled in the first seven years of this twentieth century4 ,this enormous addition to the volume of transportable goods overtaxed1 as you know1 the existing facilities1 and the resulting condition perhaps accounts for much of the hostility which has been manifested in various quarters4 ,for the man who has raised something by hard labor or made something with painstaking skill1 which he could sell at a handsome profit in an eager market1 and finds that he cannot get it carried to destination1 and so sees his anticipated gains turned into a positive loss1 is naturally exasperated and unthinkingly 'blames it' on the railroads1 and is ready to hit them with anything he can lay his hands to2 and as the state legislature seemed to be the most convenient weapon he wielded it for all it was worth4 ,i dwell upon this a moment further1 because it seems plain to me that the prosperity of the country is measured and will be measured by the ability of its railroads and waterways to transport its increasing commerce4 ,with a country of such vast extent and limitless resources1 with all the means of production developed to a wonderful state of efficiency1 the continued advancement of this great people depends primarily upon such an increase of transportation facilities as will provide prompt and safe movement everywhere from producer to consumer2 and that we shall not secure unless the men who are relied upon to manage these great highways of commerce have fitting opportunity1 and the capital which is required for their needful expansion is permitted to realize fairly liberal returns4 7,hon4 ,martin ,a4 ,knapp1 ,chairman ,interstate ,commerce ,commission1 in ,annals of the ,american ,academy of ,political and ,social ,science47 ,,lesson ,,xiii4 ,,look ,,upon ,,this ,,picture4 ,what is this ,i see8 ,smokeless chimneys6 ,closed factories4 ,spiders' webs across the doors of opportunity4 ,grass growing rankly in the streets of industrial towns4 ,dejection on the face of nature and of man4 ,what does it mean8 ,the railways have ceased to earn enough to meet expenses and provide for the progressive maintenance of their equipment and plant4 ,why1 are not their receipts greater than ever8 ,true1 but their expenses have increased more rapidly than their earnings and their net revenues have only been maintained by postponing purchases that must be made some time or the railways will be incapable of performing their public service with safety1 dispatch and economy4 ,in #aijh and #aiji the railways scrimped maintenance #cjj1jjj1jjj and this will have to be made good some time1 some how1 before they are on as sound an operating basis as they were before the panic of #aijg4 ,what must be done to avert the consequences described above8 ,a readjustment of freight rates1 involving a reasonable increase applied to such articles and commodities as can stand it1 without any appreciable hardship either to manufacturer1 merchant or consumer1 means the difference between grinding economy and a fair degree of prosperity4 ,,the ,,reverse ,,of ,,the ,,picture4 ,would a #aj per cent increase in freight rates mean such a difference8 ,it most certainly would4 ,it would mean the difference between closed shops and suspended improvements and the resumption of improvements with the ability to resume the large purchases of material and equipment1 giving full employment to labor and furnishing improved transportation facilities1 which1 within a very short time the commerce of the country is going to demand more insistently than ever4 ,to hundreds of thousands of workingmen it means the difference between steady1 well-paid employment and walking the streets looking in vain for work4 ,,lesson ,,xiv4 ,,narrow ,,margin ,,between ,,earnings ,,and ,,expense4 ,i have looked up the statement of about #hj per cent of the principal railroads of the country and find that during the last half of the year #aijg1 after the tremendous increase in expenses had become effective1 while the gross earnings of the railroads increased #eg1dac1jgh over the same period of the preceding year1 their expenses increased #hj1bce1hbc1 showing a net loss for the period1 despite the tremendous business handled1 of #bb1hbb1gde4 ,the converging lines of cost and compensation in railroad operation1 which for years have been steadily approaching each other1 are now separated by so narrow a margin that in order to pay fixed charges1 taxes and operating expenses1 with even a very moderate return to shareholders1 there must be either a moderate increase in freight rates or a very substantial reduction in the wages of railroad employes4 7,w4 ,c4 ,brown1 before the ,mich4 ,mfrs4 ,assn41 #f-bb-jh47 ,,lesson ,,xv4 ,,which ,,shall ,,it ,,be8 ,is it not better1 ,mr4 ,president1 that you and ,i1 and tens of thousands of people who buy and use automobiles1 should pay a dollar or two more freight on our machines than that the family of the engineer1 the conductor1 the brakeman1 the switchman or the humble section hand shall be deprived of the actual necessities and comforts of life1 which we know they must give up if the monthly pay check is reduced8 ,no question of greater importance confronts the people of the country today1 for upon its righteous solution hangs the momentous issue of an early return of prosperity or a continuance of the depression of the past six months1 emphasized and darkened by a struggle with organized labor such as this country has never experienced4 7,w4 ,c4 ,brown1 before the ,mich4 ,mfrs4 ,assn41 #f-bb-jh47 ,,lesson ,,xvi4 ,,moral4 ,our prosperity came with the prosperity of the railroads2 it declined when adversity struck the railroads4 ,we do not believe we can have the full measure of prosperity again until the railroads are prosperous4 7,national ,prosperity ,association of ,st4 ,louis47 ,,progressive ,,safety ,,in ,,railway ,,operation ,by ,a4 ,h4 ,,smith1 ,vice-,president of the ,n4 ,y4 ,c4 ,h4 ,r4 ,r4 ,co4 ,an ,address ,delivered ,before the ,national ,association of ,railroad ,commissioners1 at their ,annual ,convention1 held in ,washington1 ,d4 ,c41 ,november #af1 #aiji4 ,in examining into the state of an art of such far-reaching importance and such diversified nature as that of transportation by rail1 it seems necessary to acquaint ourselves with its beginnings and growth2 to determine the elements upon which its development relies and the necessity which has invoked the various steps of improvement in the plant devoted to transportation and the art of employing and controlling it in the performance of a public service4 ,the lay observer will scarcely appreciate1 in the absence of the actual analysis1 that there exists so many branches of this subject1 each branch of which1 by itself1 may be considered the object of a separate professional science and a distinct human industry4 ,,early ,,railroad ,,history4 ,railways had their origin in tramways laid over #bjj years ago in the mineral districts of ,england1 which conveyed coal to the sea4 ,animal motive power was used4 ,by the discovery1 in #ahad1 of the adhesion of a smooth wheel to a smooth rail1 it became possible to consider the employment of the tractive power of a rolling locomotive1 and for some time subsequent to this1 to the trial trip of the ,rocket1 in #ahbi1 which may be described as the first successful steam locomotive1 the experiments were along these lines4 ,while industrial railroads similar in character to the ,english existed in this country1 the ,baltimore ,ohio was the pioneer ,american railroad built for public use4 ,on ,july #d1 #ahbh1 the first rail was laid by ,charles ,carroll1 the only surviving signer of the ,declaration of ,independence1 and thirteen miles were opened for traffic in #ahcj4 ,in the same year the ,west ,point ,foundry began building locomotives1 producing the ,de ,witt ,clinton1 in #ahca4 ,it weighed three and one-half tons1 and was built for the ,mohawk ,hudson ,railroad1 the pioneer company of the present ,new ,york ,central ,lines1 which had been chartered in #ahbf1 four years before actual construction was begun4 ,the line was opened from ,albany to ,schenectady in #ahca2 to ,utica in #ahcf1 and to ,buffalo in #ahdb4 ,connections to ,new ,york and ,boston were built in rapid succession4 ,about this time1 in ,pennsylvania1 the ,columbia ,railroad was built from ,philadelphia to ,columbia1 on the ,susquehanna ,river1 forming the pioneer division of the present ,pennsylvania ,system4 ,several companies were chartered about the same time in ,massachusetts4 ,following the panic of #ahcg there was little industrial development and a lull in railroad construction1 but with #ahej begins the era of rapid extension and the welding of short connecting lines under single ownerships4 ,the consolidation was vigorously objected to at first4 ,originally there were eleven companies owning and operating the line between ,albany and ,buffalo4 ,between ,buffalo and ,cleveland1 changes of passengers and freight were made at ,dunkirk and ,erie4 ,the latter change was made necessary by the difference in gauge2 to the east six feet and to the west four feet ten inches4 ,plans for the consolidation of some of these lines made in #ahec entailed for through operation the change of the gauge east to conform to that west of ,erie1 to obviate transfer4 ,this proposition so aroused the inhabitants of ,erie that they resorted to violence4 ,in ,december1 #ahec1 they tore down the railroad bridge1 no trains going through until ,february1 #ahed4 ,this same bridge was rebuilt in #ahee1 but again torn down and burned by a mob4 ,finally a compromise ended what is known as the ,erie ,war and the gauge was changed1 from which time dates the beginning of definite through operation4 ,in #ahea the ,erie ,railroad joined ,new ,york with ,lake ,erie4 ,the ,baltimore ,ohio reached the ,ohio ,river4 ,two years later the ,atlantic seaboard and ,chicago were connected by rail1 which the following year reached the ,mississippi ,river4 ,these extensions to the ,western ,frontier opened the traffic between the ,ohio and ,mississippi rivers4 ,in the early days the public desire for rail transportation facilities led to numerous enterprises securing public financial support1 but owing to the disaster that was experienced in some of these enterprises the ,ohio law prohibited any town1 county or ,state from rendering such assistance4 ,when the ,louisville ,nashville ,railroad was built1 ,cincinnati found it imperative to have railroad communication to the ,south1 but the prohibition of the aforesaid law prevented public assistance1 and the scheme was devised of building and owning a line4 ,this line went south through ,kentucky to ,chattanooga1 was built and operated1 and eventually leased to the ,cincinnati1 ,new ,orleans ,texas ,pacific4 ,the railroads played an important part in the conduct of the ,civil ,war1 many of them being practically devoted to the transportation of ,government troops and supplies4 ,great damage was done to the many lines in the ,south owing to the military operations4 ,by the close of the war there had been no pronounced advance in protection by the appliances which are now commonly employed in the control of train operation4 ,this was largely due to the light equipment1 slow speeds and sparse traffic4 ,the first ,pacific railroad was begun1 with ,government aid1 in the '#fjs4 ,with the opening up of the ,west and the return to industrial pursuits of the people after the close of the war dates a remarkable era in railroad extension4 ,in the decade from #ahhj to #ahij1 #gj1jjj miles were built in the central and western districts1 opening vast unoccupied agricultural1 grazing and mineral sections to immigration and development4 ,the panic of #ahic exerted considerable influence on railroad construction during the following decade4 ,the period since #aijj has been more one of reconstruction and improving existing lines2 the growth of industries and population tributary to existing lines necessitating this course4 ,the vastness of the railroad industry may be imagined when one considers that from fifteen to twenty per cent of the capital of the ,united ,states is invested in railroads4 ,as an exhibit of the growth and importance let me quote the following statistics of railroad growth by decades since the first operation3 #ahcj #bc miles #ahdj #b1had #ahej #i1jba #ahfj #cj1fce #ahgj #eb1iad #ahhj #ic1bif #ahij #afc1eig #aijj #aic1cdf #aiji about #bej1jjj ,such is the exhibit of progress in the extent of railroads1 broadly viewed4 ,with the growth in extent the elements of safety have multiplied and have become very numerous2 in fact1 an almost indefinite subdivision of railroad property and operation in respect of safety might be conceived4 ,we will consider1 however1 the beginnings and the growth of a few of the more important and striking items and their relationship to the state of the art1 as portraying in a more graphic manner the adjustment1 if you may call it such1 of safety to progress1 or1 as the subject has been assigned to me1 ,progressive ,safety4 ,,air ,,brakes4 ,as the density of traffic1 and the speed1 together with the weight of equipment1 developed1 following upon the greater transportation to be undertaken1 the question of brakes was an important factor4 ,more efficient brakes were needed2 the essential characteristics being that they should be continuous throughout the length of the train1 simultaneously applied and released1 with a single point of control4 ,in #ahfi ,george ,westinghouse1 ,jr41 brought forth what is known as the straight air brake1 consisting of a pump1 main reservoir1 three-way valve1 brake cylinder and train line4 ,application was made by admitting air from the main reservoir into the train line4 ,the brakes were released by reducing the train-line pressure into the atmosphere through the three-way valve4 ,the brakes were useless if there was a leak1 a burst in the air line or a parted train4 ,with these shortcomings in mind1 the automatic air brake was produced in #ahgc1 in which the method was reversed4 ,with the addition of an auxiliary reservoir under each passenger car and a triple valve1 application of brakes was secured by reducing the train-line pressure1 while admitting air from the main reservoir raised the pressure and released the brakes4 ,on the application of the automatic air brake to freight cars it was found the reduction of pressure was not quick enough to set the rear brakes promptly1 and in consequence accidents occurred from the bunching of the cars4 ,the consideration of the brake question by the ,master ,car ,builders' ,association in #ahhe1 and public tests under their auspices in #ahhf1 at which time the manufacturers were represented1 did not succeed in stopping freight trains without violent and disastrous shocks4 ,so discouraging did these tests seem for the time being1 that a report was made1 suggesting that the successful application of such brakes on long trains could only be accomplished by electricity4 ,however1 the following ,january witnessed the introduction of the ,westinghouse ,quick-,action air brake1 which corrected the previous trouble and made practicable the application of air brakes to long freight trains4 ,continuing from this time there has been marked improvement and development in all features of the apparatus1 without1 however1 modifying the essential elements of which it is constituted4 ,with the solution of a means of train control came a further growth in their size and weight2 sooner or later this had to emphasize the necessity for efficient coupling devices4 ,not only were there accidents due to the primitive link and pin couplers1 but the various standards in existence both complicated the operations of coupling and uncoupling of cars and involved the question of interchange and safety4 ,,automatic ,,couplers4 ,owing to the large number of accidents1 ,mr4 ,f4 ,d4 ,adams1 of the ,boston ,albany ,railroad1 recommended to the ,master ,car ,builders' ,association1 at its third convention1 in #ahfi1 that a uniform height should be established for couplers2 their failure to meet when cars came together being considered the cause of numerous accidents4 ,in #ahga that convention adopted #cc inches as the standard height for standard-gauge cars4 ,at the convention of #ahgc ,mr4 ,m4 ,n4 ,forney urged that a committee investigate the cause of accidents and make recommendation4 ,this committee in the following year gave as the principal cause the same as reported by ,mr4 ,adams eight years before4 ,they pronounced the tests of automatic couplers to date a failure4 ,another committee at this same convention gave the first recognition to automatic couplers by reporting that a great advantage would be derived from a uniform drawbar1 such as would be accepted as a standard and which would be a self-coupler4 ,during several years following various models were examined1 but nothing was found to meet the demands4 ,in #ahgg ,mr4 ,john ,kirby1 of the ,lake ,shore1 reported that his company intended to equip #ajj cars with self-couplers1 and at the same meeting ,mr4 ,garey1 of the ,new ,york ,central1 told of having been waited upon by a committee of yardmasters1 asking for dead blocks or some such safety device4 ,this turned the attention of the ,association from the coupler to the dead block4 ,in the year following they invited the ,yardmasters' ,association to act in concert with their committee in reporting upon means of safety for protection of yard and train men in the performance of their duties4 ,this was the situation when on ,march #ai1 #ahhj1 the ,massachusetts ,legislature instructed the ,railroad ,commission to investigate and report with recommendation as to means of prevention of accidents in the coupling of cars4 ,they reported that they preferred to be guided by the action of the railroad companies1 and any device made standard by them would1 in their opinion1 be the best recommendation for such device4 ,in #ahhb the ,connecticut ,railroad ,commissioners recommended to the ,legislature that automatic couplers be required on all new cars4 ,in #ahhc the ,massachusetts ,commissioners expressed the hope that the ,master ,car ,builders' ,association would at its convention agree upon some type of coupler for freight cars4 ,in #ahhd the ,association selected ,mr4 ,m4 ,n4 ,forney to conduct tests of automatic couplers and report4 ,attention was called at that time to less than a dozen varieties that were worthy of consideration4 ,with this action of the ,association as a guide1 the ,massachusetts ,commissioners undertook to solve the problem1 and announced that they would not prescribe any coupler that had not been tested in actual traffic1 but notified the railroad companies in the ,state that all new cars1 and cars requiring new couplers1 should be provided with one of five kinds specified4 ,it happened that the kinds specified would not couple with each other4 ,in #ahhe public tests were held at ,buffalo by ,mr4 ,forney4 ,forty-two couplers were tested1 twelve of which were recommended for further tests4 ,in the following year the trials made of power brakes on freight trains made it very evident that the link and pin type of coupling would not suffice1 and it was eliminated from further consideration4 ,in #ahhg the ,executive ,committee reported in favor of the ,janney type of coupler and all other forms that would automatically couple with it under all conditions of service4 ,this report was adopted in #ahhh by a vote of #dgd for and #aid against4 ,the ,executive ,committee then undertook to establish contour lines1 drawings and templates as standard1 but found that the ,janney patents covered the contour of vertical plane couplers4 ,this was remedied in #ahhh1 when the ,janney ,coupler ,company waived all claims for patents on contour lines of coupling surfaces of car couplers used on railroads members of the ,master ,car ,builders' ,association1 which enabled the ,association to formally adopt in all respects this type of coupler as standard4 ,at the convention of #ahhi such action was taken1 on motion of ,mr4 ,voorhees1 ,general ,superintendent of the ,new ,york ,central ,railroad1 and since that time this type of coupler has been the standard1 and called the ,master ,car ,builders' ,coupler4 ,in #ahic ,congress enacted a law requiring all railroads engaged in interstate commerce to provide on all cars and locomotives a continuous power brake capable of being controlled by the engineman in the locomotive cab1 and also automatic couplers which would operate by impact4 ,january #a1 #ahih1 was the date set by which these changes must be made--subsequently extended two years4 ,we now have uniformity in height and contour to insure perfect contact between all classes of equipment1 and a positively locked knuckle4 ,the design and attachments to car body are prescribed of a strength in excess of the power of locomotives1 and in modern friction draft gear the strength reaches #bej1jjj pounds4 ,,signaling4 ,the need of indicating the conditions of the road to trains came with the increasing traffic and speed4 ,as these conditions developed in ,england before they did here1 the first steps were taken in that country4 ,in #ahcd the ,liverpool ,manchester introduced the first system of fixed signals1 consisting of an upright post with a rotating disk at its top1 showing red for danger and the absence of indication by day and a white light by night for clear4 ,on the opening of the ,great ,western ,railway this method was improved4 ,experiments by ,messrs4 ,chappe1 the inventors of optical telegraphy1 showed that under certain conditions of illumination the color of any body would disappear4 ,this demonstrated that the form1 and not the color1 of the day signal could be relied on4 ,it was also found that a long1 narrow surface could be seen further as projected against the horizon or landscape than the same area in a square or circle4 ,making use of these results1 ,sir ,charles ,gregory1 in #ahda1 designed and erected at ,new ,cross the first semaphore signal4 ,there was no communication between stations2 each signalman displaying his signal at danger after the passage of a train until a certain time had elapsed1 when it was cleared4 ,the only information conveyed to the engineman was that the preceding train had passed the station at least the required time before him4 ,the failure or inability to act with sufficient promptness at the display of the danger position1 and the consequent collisions1 led to the installation of additional signals to give advance information to the engineman of the position of the signal he was to obey4 ,thus we have clearly portrayed the inception of the present block and caution signals4 ,mr4 ,c4 ,v4 ,walker1 of the ,southwestern ,company1 introduced the ,bell ,code1 which was the first audible method of communication between signal stations4 ,the same year ,mr4 ,tyer supplemented this with electric visual signals1 the object being to give the operator indication of the signal having been received and given1 and at all times to show the exact position of the signal itself4 ,this suggested the space interval between trains1 in place of the time interval1 making signal indications definite4 ,in #aheh the positive block system was established in ,england1 based on the space interval system4 ,making use of telegraph communication1 ,mr4 ,ashbel ,welch1 ,chief ,engineer of the ,united ,new ,jersey ,canal and ,railroad ,company1 devised and installed during #ahfc and #ahfd the first block system of signals in this country1 on the double-track line between ,philadelphia and ,new ,brunswick4 ,signal stations were suitably spaced1 and at each station a signal was provided1 visible as far as possible each way4 ,the signal itself was a white board by day and a white light by night1 indicating clear1 shown through a glass aperture two feet in diameter in front of the block signal box4 ,for the danger indication a red screen fell to cover the white board or light4 ,on a train's passing a station the signalman released the screen1 which fell by gravity1 and did not raise it until advised by telegraph that the preceding train had passed the next station1 thereby maintaining a space interval4 ,thus was evolved the telegraph block system1 still generally used1 with modifications of apparatus and signals1 on lines of light traffic4 ,elaborations of this system were later installed following more closely the ,english practice1 perhaps reaching the most complete development upon the ,new ,haven and ,new ,york ,central lines1 where it is still in use4 ,notwithstanding numerous improvements in apparatus1 the same practice of fixing a positive space interval by means of communication between block stations still holds4 ,the addition of track circuits for locking and indicating purposes and interlocking between stations1 more fully effected by the introduction of the ,coleman block instrument1 in #ahif1 has thus evolved the controlled manual block system as now used4 ,,automatic ,,signals4 ,in #ahfg ,thomas ,s4 ,hall patented an electric signal and alarm bell1 used in connection with a switch or drawbridge4 ,its shortcoming lay in the fact that a break in the circuit or failure of the latter gave no danger indication4 ,to correct this a closed circuit was necessary1 although more expensive4 ,in #ahgj ,mr4 ,wm4 ,robinson devised the plan of having the circuit closed at the point of danger1 if conditions were favorable1 and opened a short distance in advance of the signal4 ,the wheels of the approaching train depressed a lever1 which closed the circuit and cleared the signal1 unless interrupted at the point of danger4 ,subsequent modifications were made1 whereby the circuit once completed remained so through the agency of an electromagnet1 and reopened when the train passed out of that portion of the track governed by the signal4 ,in #ahga ,mr4 ,hall put in operation the first automatic electric block system1 on the ,new ,york ,harlem ,railroad1 between the ,grand ,central ,station and ,mott ,haven ,junction4 ,it was normal safety4 ,the wheels of a passing train striking a lever completed a circuit1 which put the signal to danger1 after the train1 and held it so until the succeeding signal went to danger1 when a separate circuit was completed1 which released the former signal1 allowing it to return to clear4 ,the disadvantage in having the wheels of a train strike a lever to complete the circuit led ,mr4 ,f4 ,l4 ,pope to experiment4 ,after a successful attempt in transmitting an electric circuit through an ordinary track with fishplate joints1 he made a signal test at ,east ,cambridge1 ,mass4 ,a section of track was insulated from the rest1 with a wire circuit1 including a battery and electromagnet for operating the signal1 fastened at either end to the opposite rails4 ,the metal wheels and axles completed the circuit1 throwing the signal to danger against following trains4 ,a detent served to keep the circuit closed until the next signal was reached1 when a separate circuit released the detent1 permitting the signal to clear4 ,in #ahgi this system was put in service1 and1 with some alterations1 still remains in some localities4 ,following the original manual semaphore and the controlled manual system of operation came the pneumatic and electric systems1 for localities which required a great number of signal movements4 ,with the development of motors and batteries capable of economic operation1 automatic signals of the semaphore type have been successfully and widely installed4 ,in the semaphore system numerous failures have occurred1 due to the formation of ice and sleet upon the blades4 ,this has led to the introduction of the so-called upper quadrant operation2 that is1 the motion of the signal being from horizontal to an upwardly inclined position and back4 ,on account of the widespread prevalence of electric lighting and the building up of the territory adjacent to railroads1 changes in the color indication of night signals have been adopted1 generally in such localities using green instead of white for the safety indication4 ,,interlocking4 ,developing with the manual operation of signals1 and as a safeguard against mistakes of the signalmen1 interlocking grew up as a means for preventing conflicting signals being given at the same time4 ,as with signals1 so with interlocking1 ,england led at first4 ,after a trip to that country in #ahfi1 ,mr4 ,ashbel ,welch recommended the advantage derived from the ,english method of operating switches and signals in large yards and terminals1 where the entire control fell to one man so located as to be in touch with the whole situation and equipped with a machine that would not permit of setting up conflicting routes4 ,the plea resulted in the order of a twenty-lever ,saxby ,farmer interlocking machine1 which was installed in #ahgd on the ,new ,jersey ,division of his line4 ,railroads were prompt to see its advantage1 and in a short time machines performing the functions were made and installed in this country1 not only for the protection of railroad intersections1 but for the control of large terminal layouts4 ,in #ahgf the first power-operated interlocking system was perfected1 which was the pneumatic type4 ,in #aijj an all-electric interlocking system1 advantageous where distant functions were to be embraced within the operation of the plant1 and applicable to localities where electric traction was in use1 was devised4 ,the more recent development of power-operated interlocking systems1 with complete electric indication of the conditions on all tracks1 has made it possible for larger systems to be consolidated under the control of a central plant1 and thus under the direction of a central authority2 these machines1 being of a completely interlocked character1 insure greater safety by the central control1 as well as greater facility of operation4 ,,train ,,dispatching4 ,in this country the first radical departure from the time interval and flagging method of operation came in #ahea4 ,the ,new ,york ,erie ,railroad had established a single line of telegraph between ,piermont1 on the ,hudson ,river1 and ,dunkirk1 on ,lake ,erie1 for company business4 ,the ,superintendent of ,telegraph1 ,mr4 ,luther ,c4 ,tillottson1 and the ,division ,superintendent were together in the ,elmira depot on an occasion and learned that the westbound express from ,new ,york was four hours late4 ,at ,corning an eastbound stock train and a westbound freight at ,elmira waited for the express4 ,with this information1 ,mr4 ,tillottson suggested that the freight train at ,elmira could be sent to ,corning and the stock train at that point ordered to ,elmira1 with perfect safety1 before the arrival of the express4 ,the move was successful and encouraged similar operation1 which shortly led to the adoption1 with some modifications1 of this train-dispatching method on the ,susquehanna ,division of the ,erie4 ,its adoption over the entire line followed1 in spite of the great opposition which ,mr4 ,charles ,minot1 the ,general ,superintendent1 met when planning for its introduction4 ,some of the conductors and enginemen went so far as to resign rather than run on telegraphic orders against the time of another train4 ,this system spread rapidly to other lines and1 in company with other features of railroad operation1 has been progressively developed and improved4 ,one of the important elements of safety in the dispatching practice has been the tendency to the same words in the same sequence to convey the same instructions1 insuring a uniform understanding of the instructions instead of permitting a discretionary phraseology in originating or a misunderstanding in construing the order transmitted4 ,the rules for train dispatching now prescribe the use of standard forms of expression for orders governing the movement of trains4 ,within the past few years experiments have been made with a system of train dispatching by telephone1 now in successful operation upon some important lines1 and growing in extent4 ,advantage lies in the ability to use trained railroad employes who cannot work under the telegraph system1 not being telegraph operators4 ,the telephone-dispatching system not only insures a rapid distribution of information1 but by its greater capacity enables a more complete knowledge of the state of the line to be had in the controlling office1 as well as in all the offices tributary to the dispatching system4 ,,development ,,of ,,the ,,locomotive4 ,while it is not our intention to take up your time with the recital1 even in condensed form1 of the development of all the items which go to make up the parts of a railroad1 we cannot forego the opportunity to speak briefly about the locomotive1 the motive power1 giving action and effect to transportation4 ,as early as #afhj ,sir ,isaac ,newton predicted steam-propelled carriages1 and even made suggestions bearing on their design4 ,through the eighteenth century various types of steam vehicles appeared1 more as curiosities than anything else1 some of them forerunners of the locomotive and others of the automobile4 ,it was not until #ahjc that anything really deserving the name locomotive was built4 ,richard ,trevithick1 a ,cornish miner1 constructed the locomotive bearing his name1 curiously enough as the result of a wager4 ,on trial this machine did convey ten tons of iron for nine miles on a cast-iron tramway by steam power1 winning the wager4 ,the desire of ,christopher ,blackett1 a mine owner1 to use steam motive power in place of animals led to the practical demonstration of adhesion4 ,on this principle1 ,blackett's ,superintendent1 ,william ,hedley1 built his ,puffing ,billy1 a complicated affair of levers1 beams and gears4 ,on the completion of the ,liverpool ,manchester ,railroad1 the directors1 being undecided as to the motive power1 offered a prize of five hundred pounds for a locomotive that would fulfill certain conditions4 ,the test came off at ,rainhill1 in ,october1 #ahbi1 on a level piece of track about one and one-half miles long1 between four competitors4 ,stephenson's ,rocket won and gave the world the mechanical combination essentially represented in locomotive practice since that time4 ,american locomotive practice followed the ,stephenson model4 ,among the early builders were ,phineas ,davis1 ,ross ,winans and ,matthias ,baldwin4 ,the four-wheel engines of the ,english type proved injurious to the light rail and sharp curves on our early roads1 and to overcome this ,mr4 ,john ,b4 ,jervis1 ,chief ,engineer of the ,mohawk ,hudson ,railroad1 introduced the four-wheel ,bogie truck4 ,for some twenty years this design remained1 until in the '#ejs the demand for more tractive power brought about the addition of another pair of coupled drivers1 thus evolving the well-known ,american type4 ,additional drivers were added with the demand for increased tractive power1 leading in turn to the development of the ,mogul and ,consolidated types4 ,in the decade between #ahhj and #ahij more drivers1 such as in the ten-wheel type1 began to be used in high-speed service1 and the adaptation of wide fire-boxes to the ,american type necessitated the addition of a trailer truck to support the rear end of the locomotive frame1 and brought about the ,atlantic type1 in #ahie4 ,the ,pacific type1 or the most modern high-speed passenger locomotive1 is a development of this4 ,in #ahhh ,anatole ,mallett designed the articulated locomotive4 ,in #aijd the first one of this type was placed in operation on an ,american railroad1 and since that time has gained favor where maximum tractive power on heavy grades is required4 ,there is perhaps no more striking illustration of the progress of the art than can be obtained from an examination of the illustrations of the various types of locomotives built and operated since #ahbi4 ,it all bespeaks a tremendous growth1 based on a tremendous necessity4 ,we can point to the strengthening of all parts commensurate with the work to be done2 to the perfection of detail in materials2 manufacture1 maintenance and inspection2 and possibly observe with pride that the motive power of the railroads of the present contributes an almost negligible part of the difficulties of modern railroad operation1 due to features of design or control4 ,,car ,,construction4 ,one of the early problems in transportation was to secure the carrying capacity of cars as well as safety4 ,we have pointed out how it was necessary to add a guiding truck to the ,english locomotive1 designed to adapt the same locomotive safely to ,american conditions4 ,both the excessive wheel loads on four-wheel freight cars and the greater liability to accident or derailment led at an early time to the use of four-wheel trucks under cars4 ,between #ahca and #ahcd ,mr4 ,ross ,winans1 of ,baltimore1 made improvements on cars on the ,baltimore ,ohio ,railroad4 ,he applied the swivel four-wheel truck1 the outside bearing for axles1 and the application of the draft gear to the car body and not to the trucks4 ,the increase in lengths of passenger cars1 with corresponding increases in weight1 led1 about #ahhj1 to the quite general employment of a six-wheel truck instead of a four-wheel truck1 and even eight-wheel trucks were used for a time1 but rejected on account of the excessive length of wheel base and other complications4 ,in #ahgi the ,allen wheel1 consisting of built-up construction with forged-steel tire1 was introduced and rapidly became applied to cars in the most exacting service4 ,originally the tires were imported from the ,krupp ,works1 in ,germany1 but later were manufactured here4 ,great interest attaches itself at the present time to the manufacture of solid-steel forged wheels1 on account of the reduction in parts4 ,in the latter '#hjs experiments were made in the development of steel framing for car construction1 and built-up steel underframes were introduced shortly after2 at first on cars for mineral traffic1 where excessive weights and capacities were required4 ,the success of this type of construction has led to its adaptation at the present time to all classes of equipment1 and not only steel underframes1 but complete steel construction in certain classes of service where the conditions require4 ,with the increase in through passenger service we note the appearance of the vestibule1 protecting the communication between cars4 ,originally this vestibule was narrow1 about the width of the car door1 and was introduced about #ahhb1 although experimented with as far back as #ahde4 ,the equipment of the ,exposition ,flyer1 operated from ,new ,york to ,chicago during the ,world's ,fair1 was the first1 we believe1 to appear with full-width vestibules1 these being originally designed as offering less atmospheric resistance to high-speed trains1 but having subsequently been found a more economical1 attractive and safer form of construction4 ,the question of steel cars and composite steel and wooden cars is having very careful investigation and experiment at the present time4 ,while considerably used1 the results of the use of these cars must be awaited4 ,after the factor of safety has been determined the question of tare weight per passenger carried will naturally arise4 ,in this country our weights are now far in excess of all foreign railroad practice4 ,this enters into the resistance and cost to produce the service4 ,,car ,,heating4 ,the original method of heating passenger cars by direct radiation from coal or wood stoves was a source of discomfort to the passengers as well as a menace in case of disaster4 ,this brought about in the late '#hjs the introduction of the ,baker ,hot-,water ,heater1 which was a great improvement for the comfort of passengers1 but still left a fire in the car4 ,in many instances of collisions and derailments during this period1 especially in winter1 the cars were set on fire and the wreckage consumed from the fire scattered from the stoves or heaters4 ,experimentally1 steam from the locomotives was used1 but the difficulties in securing satisfactory couplings between the cars1 the drain on the boiler1 and the fact that the locomotive was sometimes detached from the train1 were obstacles4 ,one of the ,western roads even attached a separate car for the sole purpose of supplying heat and light4 ,the growth in the capacity of locomotive boilers1 and the perfection of the couplings between cars1 have led to the present practice of car heating1 which entirely eliminates the presence of any fire or source of danger from that source4 ,,car ,,lighting4 ,car lighting has passed through the same stages as house lighting1 possibly more gradually1 on account of the greater difficulties4 ,the old low-roofed passenger cars were illuminated by candles about two inches in diameter1 placed in racks along the sides of the car4 ,with the advent of mineral oil1 just before the ,civil ,war1 the candles gave place to oil lamps4 ,great difficulty was experienced in maintaining a steady flame1 until the principle of the student lamp was adopted4 ,the flame was shielded from the outside air by a chimney1 and the central draft to the burner provided the air necessary1 at the right point1 to insure combustion4 ,for more than fifteen years this method prevailed1 and while the presence of oil lamps in wrecks contributed fuel to the flames1 the proof that they were in any way the principal cause was lacking4 ,still1 to eliminate this contributory feature1 attempts were made to use ordinary coal gas1 compressed in tanks on each car4 ,this1 however1 proved unsatisfactory4 ,in #ahgj a system of compressed gas made from crude petroleum had been invented by ,julius ,pintsch1 of ,berlin1 and by #ahhg had been put into a number of cars on ,european railroads4 ,the light was too dim to satisfy ,american conditions4 ,it was only a question of time1 however1 for its proper and adequate development to our needs1 when its use became general1 on the perfection of the lamp and burner4 ,for the last fifteen years electric lighting of various types has been in use on cars in an experimental way4 ,while possessing advantages1 perhaps1 in safety1 owing to low voltages and small quantity of current1 its general use has not yet been entirely practicable1 owing to the complications involved1 either in generating and satisfactorily controlling the current upon the cars1 or in supplying it at terminals through storage batteries4 ,so far we have been considering largely features either of equipment or train control4 ,perhaps more important than these is the permanent way4 ,compared with engines1 cars1 signals and dispatching1 the variety of problems presented in the construction and maintenance are many4 ,we perhaps owe to the ancient beginnings and highly scientific development of the profession of civil engineering and its branches the fact that these problems of construction and maintenance are so well met and the source of so little anxiety in connection with railroad transportation at the present time4 ,american engineering ingenuity and courage have devised structures to meet every requirement of railroad development4 ,in bridge construction for centuries the simple beam or the arch were the only spans employed4 ,the natural barriers to construction of railroads required something more than either4 ,between #ahcj and #ahej many wooden trusses were built in the ,eastern and ,middle ,states after the design of ,burr and ,palmer4 ,s4 ,h4 ,long's introduction of counter-braces in truss construction in #ahcj was a long step in advance1 and after ten years the celebrated ,howe truss was brought out by the inventor4 ,four years later came the ,pratt truss4 ,in #ahei several riveted lattice trusses were built for the ,new ,york ,central1 varying from #dj to #ij feet in length1 by ,howard ,carroll4 ,the ,lehigh ,valley built a ,whipple-,murphy pin-connected bridge of #afe-;foot span4 ,this progress in truss construction enabled the railroads to bridge streams and secure continuous roadway4 ,as an interesting historical note in connection with railroad bridges1 we find that the first railroad bridge was built across the ,mississippi ,river at ,rock ,island in #ahef4 ,it had hardly been completed1 at great expense1 before ,st4 ,louis steamboat interests demanded its removal as a nuisance and an obstruction to navigation4 ,the ,united ,states ,district ,court so adjudged it1 and ordered its removal within six months4 ,the presiding judge in his opinion stated that if one railroad is able to transfer freight and passengers without delay and expense of changing at the river1 financial necessity will compel competing roads to provide themselves with the same facilities1 which led him to foresee great interference to river traffic and great mischief in the establishment of such a precedent4 ,the case was appealed1 and ,abraham ,lincoln was the counsel for the bridge company before the ,united ,states ,supreme ,court4 ,he argued that both the river and the railroad were great highways for the people1 and while at the immediate time the water traffic was possibly greater1 he predicted that the time might come when the railroads might equal or exceed the traffic on the river1 and he consequently felt that each interest was entitled to equal consideration4 ,his broad grasp of the subject secured for his company a reversal of the decision of the lower court1 and the bridge remained4 ,with the advent of steel the possibilities of bridge construction may be said to have become almost unlimited1 and their design exceedingly simplified and standardized4 ,,evolution ,,of ,,the ,,rail4 ,equally important is the evolution of the rail and its fastenings4 ,the type of metal rails of which the bottom served as the running surface for flat wheels guided by a flange on the rail gave place to edge rails on which flanged wheels used the upper surface of the rail before the day of the steam locomotive4 ,of the edge type1 the first were cast iron1 fish-bellied1 in sections about three feet in length4 ,they were supported by stone blocks or in cast-iron chairs which were in turn made secure to the stone4 ,later the same type was made of wrought iron by ,john ,birkinshaw1 in ,england1 who rolled it up to #ae or #ah feet in length4 ,from #ahbj to #ahej the flat strap rail1 spiked to longitudinal timbers1 in turn supported by cross-ties1 was largely used in this country1 as it was the only shape that could be rolled here4 ,in #ahcd ,mr4 ,strickland designed the ,bridge1 or ,u-shaped section1 which was used on some of our earlier roads and was the first style of edge rail rolled in this country1 in #ahdd4 ,the present ,t section was invented in #ahcj by ,colonel ,stevens1 ,chief ,engineer of the ,camden ,amboy ,railway1 and until #ahde1 when it was first rolled in this country1 had to be imported from ,england4 ,the poor quality of the iron at this time required such a broad support1 in the design of the rail1 for the head1 that no satisfactory plate fastening could be secured4 ,iron shoes1 into which the rail ends fitted1 were the means of connection4 ,the greatest improvement dates from #ahee1 when the first steel rails were rolled in ,england4 ,ten years later they were experimentally rolled here4 ,in #ahfg1 through the introduction of the ,bessemer process1 which made possible their manufacture at a greatly reduced cost1 began a revolution in track construction4 ,while the decade from #ahhj to #ahij witnessed the greatest rate of railroad building in this country1 it also witnessed the substantial substitution of steel rails on our lines4 ,the earlier rails weighed from #ej to #gj pounds per yard4 ,the increasing weight of equipment brought out a heavier section1 and fifteen years ago there was a large percentage of mileage on which weights of #ij pounds and over--and even #ajj pounds--per yard had been introduced4 ,under special conditions rails weighing as high as #adj pounds per yard are used4 ,with the increasing weights of rails1 and the development of steel manufacture1 greater attention has been paid to details of analysis1 process of manufacture1 shape and laying1 and it may be briefly stated that all these matters are uniformly prescribed at the present time4 ,our rail fastenings1 ties and ballast have kept pace with the development of the rail and equipment4 ,an orthodox part of the rules governing the maintenance of railway property places in the hands of the maintenance force standard plans and specifications1 not only for the elements1 such as rail and ties1 but for the complete make-up of the finished track structure and roadbed1 and these plans are the result of current experience and study of the several railroads1 and of the various associations of engineers1 maintenance officers and manufacturers1 and it is safe to say that these plans1 specifications and standard practices represent the best known state of the art4 ,,grade-,,crossing ,,elimination4 ,in the early days both the railroads and public ways used the natural surface of the ground1 as a matter of economy4 ,the public question then was how they were to get the railroads1 and not how they were to restrict them in the manner of their construction4 ,the districts traversed were sparsely settled and trains were few and slow in their movement2 the highways were little used2 all of which made for freedom from accident where the two crossed4 ,the conditions in ,england were vastly different4 ,there the country was thickly settled and an assured traffic was evident from the inception of the enterprise1 which would warrant expenditures on original construction that could not be entertained by the promoters of our first companies4 ,so it was not through any blindness that made grade crossings grow up in this country1 but it was purely the result of economic conditions which precluded their elimination4 ,with the increase in population and the development of the country came the need of increased transportation facilities4 ,more frequent1 faster and heavier trains were moving up the railroads and a greater number of people came to use the highways4 ,the inevitable result followed1 and at length the great number of accidents occurring at the grade crossings attracted public attention4 ,the ,legislature of ,massachusetts took the first action in #ahfi1 when it provided for the appointment of a ,railroad ,commission1 to investigate and report upon ,safer and ,better ,methods of ,construction and ,operation4 ,they very promptly took up the ,grade-,crossing question4 ,at this time in ,massachusetts there was #a mile of track to #e4dg square miles ,new ,york there was #a mile of track to #ad4ab square miles ,united ,states there was #a mile of track to #df4gb square miles ,great ,britain there was #a mile of track to #h4fj square miles ,this showed that the railroad network in ,massachusetts was more extensive in proportion to the area of the ,state than existed in ,great ,britain4 ,in their report the ,commission suggested the avoidance of future crossings of railroads and highways at grade1 and the propriety of the railroads changing some existing crossings which presented no great difficulty or expense4 ,in #ahgc a law was passed providing for the separation of grade when a town and railroad effected an agreement4 ,the cost was to be apportioned by a ,commission appointed by the ,superior ,court4 ,this law did accomplish something1 but hardly abolished existing crossings as fast as new ones were built4 ,under it the ,fitchburg ,railroad did away with twenty-five between #ahge and #ahij1 bearing varying portions of the expense4 ,in #ahhe an ,act provided that the ,county ,commissioners could order the abolition of a grade crossing on a petition of twenty legal voters if the cost would not exceed #c1jjj4 ,again1 in #ahhh the ,legislature asked the ,governor to appoint another ,commission to investigate and report upon a scheme for gradual abolition and the method of apportioning the expense4 ,in ,february1 #ahhi1 this ,commission1 composed of ,kimball1 ,weber and ,locke1 submitted systematic plans1 with estimates1 etc41 in which they fixed forty years as not an unreasonable length of time for the completion of the work4 ,the next step came in #ahij with the passage of the ,grade ,crossing ,law1 which provided that the directors of a railroad or the authorities of a town or city could petition the ,supreme ,court for a ,commission on the ,abolition of a ,grade ,crossing4 ,this ,commission was to determine the manner of the separation and by whom the work was to be done1 and how the expense was to be divided as between the railroad1 city and ,state4 ,before the report was presented to the ,court for approval it was incumbent upon the ,commissioners to ascertain that the aggregate proportion of the ,state's liability in this connection would not exceed #ejj1jjj per year for ten years4 ,while on the one hand the ,legislature authorized this expenditure of #e1jjj1jjj to abolish the crossings of highways with railroads at grade1 they granted charters indefinitely to electric lines to cross steam roads at grade4 ,the ,new ,york ,state ,board of ,railroad ,commissioners was created in #ahhb and its membership appointed by the ,governor4 ,among the functions which they immediately assumed was the question of public safety in connection with crossings at grade of railroads and highways4 ,the consideration which this received and the complaints of unsafe conditions1 as well as the complications and adjudications involved1 led to the passing of the ,grade ,crossing ,law1 which went into effect ,july #a1 #ahig4 ,not only by the ,new ,york ,state law1 but by the ,massachusetts law1 the method of elimination1 as well as the apportionment of expense1 is specific4 ,the initiative is open to both the railroad and to the community1 and the rapid progress of eliminations in these two ,states may be taken as an endorsement of the wisdom of such legislation1 paving the way1 as it does1 for more progress on the question of eliminations than it is believed would ordinarily take place where no specific rule existed for the undertaking4 ,while the exact conditions throughout the country are not definitely known1 it is believed that progress is being made quite generally in this direction4 ,the influence of grade-crossing elimination upon the safety of operation is of such importance as to deserve serious consideration1 as ,i will further suggest4 ,perhaps the elimination of grade crossings1 thereby separating the public from the railroad except as authorized in connection with their patronage of it1 is one of the most important factors as safety4 ,,human ,,element ,,in ,,operation4 ,notwithstanding the great improvements in roadbed1 track1 bridges1 signals1 equipment and other respects1 all securing increased service and safety in railroad operation1 the human element is a vital factor4 ,with a view of raising the standard of individual service1 a system of physical and educational examinations has been adopted4 ,in the early days of railroads the individual service was possibly less definitely classified and qualified than must prevail under the exactions of modern conditions4 ,in keeping with the progress in mechanical and safety devices and the necessity of a better system1 we have today a preliminary examination1 both physical and as to fitness4 ,employes must pass examinations as to vision1 color sense and hearing1 and their knowledge of the fundamental rules and regulations1 as well as the fundamental knowledge of road1 appliances and equipment4 ,these examinations are repeated from time to time as the class of service and further advancement of the employes may require4 ,many of the large railroads have established schools1 with capable instructors1 where employes may receive instruction upon the performance of their duties1 as well as affording them an opportunity to fit themselves for promotion4 ,beginning with the ,general ,time ,convention some thirty years ago1 the need to standardize railroad practices and systematically qualify employes began to be realized4 ,the ,convention1 largely through the efforts of ,mr4 ,w4 ,f4 ,allen1 saw that1 as time is the term in which railroad schedules are expressed1 it was a fundamental necessity that there should be standard time1 and that the timepieces of employes which should govern their observance of instructions and schedules must conform to the standard4 ,this led to the present system of standard time2 to the system whereby employes must compare watches with standard clocks2 must have watches inspected regularly and record taken of same2 must compare watches and register before trips4 ,the ,general ,time ,convention led to the formation of the ,american ,railway ,association1 consisting of the executive and operating officers of the railroads of the ,united ,states and ,canada4 ,the ,association considers problems of railroad operation1 construction and equipment1 and recommends practices for their solution4 ,their investigations1 conclusions and recommended practices embrace train operation1 dispatching1 block-signal operation1 air-brake operation1 physical and educational qualifications of employes1 regulations for the transportation of dangerous articles1 clearances1 rail manufacture1 safety appliances1 inspection1 car construction1 track gauge1 train heating and lighting1 methods of loading1 etc4 ,marked progress has been made in co-ordinating the work of the various organizations of railroad officers with the work of the ,association1 to secure the benefit of the broadest and most careful consideration of the subjects4 ,assurance1 therefore1 exists that the experience and knowledge of railway management and officers will be brought from time to time into the text and fact of standard practices1 promoting convenience by close interline relationships and uniformity of regulation1 and causing a uniform1 systematic and careful regard for safety4 ,,by ,,way ,,of ,,recapitulation4 ,so1 to recapitulate3 ,from a few miles of crude tramways the world has in a century built #ejj1jjj miles of steam operated and #ajj1jjj miles of electrically operated roads2 instead of spragging the wheels we rely on the automatic high-speed brake2 the coupling of cars has become an imitation of the action of human hands instead of risking their destruction2 each train finds the condition of road ahead and protects itself by the agency of electric circuits and semaphores1 the sequence of whose operation discloses on behalf of safety any obstruction of the route2 four-wheel barrows are replaced by steel cars1 larger than the miner's cabin1 and carrying more than his month's output2 instead of traveling on a tramway stage coach1 the passenger finds available for his comfort a modern hotel on wheels1 with every luxury known to-day--electrically lighted1 steam heated1 weather-proof2 the old strap iron1 which became detached and penetrated the car floor1 frequently impinging passengers to the roof1 is replaced by the bar of steel weighing #ajj pounds to the yard1 whose manufacture1 installation and maintenance is prescribed with every degree of refinement known to the chemist and engineer2 we have learned to treat sub-grade1 drainage and ballast as an architectural science1 and our bridges1 from the single-log span1 now make continuous roadbed for high-speed operation1 even over the continental rivers4 ,some one has said that the builders' art consisted in making the structure proclaim the purpose for which designed1 and to my mind there is nothing which quite so dramatically fulfils this as the modern steam locomotive4 ,how many of you have seen a huge ,pacific locomotive1 drawing a train of #fjj tons at a speed of #gj miles an hour1 yet under control of one man1 just the same as ,stephenson's ,rocket1 which could have been lifted off its track and set on the ground by four strong men1 and which was a world-wonder when for a short distance it attained a speed of twenty miles an hour8 ,we know that our engineman with a ,pacific locomotive and the high-speed train can stop his train with the air brake in a definite distance4 ,these comparisons1 briefly as might be1 between1 we will say1 the beginnings of the nineteenth and of the twentieth centuries1 show how the commercial growth and increase of trade have produced a demand for transportation to be performed1 and with the performance an economic revolution4 ,we have1 in a general way1 though with far less than the thoroughness of which the subject is worthy1 outlined what might be called the state of the art1 of railroad plant and operation1 in a relative sense4 ,progress of a pronounced character has occurred4 ,that this progress has been accomplished by increased safety is demonstrated by common knowledge and confirmed by the records1 both of the railroads and the public authorities4 ,as an illustration1 take the statistics of the ,interstate ,commerce ,commission4 ,the increased safety of railroad operation is indicated in part by the following figures3 ,for the decade following the beginning of the records1 namely1 #ahhh to #ahig1 the fatalities were #a in #de1cjj1jjj2 for the next decade1 bringing it down to the present time1 the fatalities were #a in #ed1ijj1jjj2 the gain in ratio being1 for the nation at large1 fully #bj per cent4 ,looking at the conditions in the ,state of ,new ,york1 where the density of travel is considerably in excess of that of the country as a whole1 we find a report of the ,state ,engineer in the year #ahfb showing ratio of fatalities of #a in #bh1bjj1jjj2 the average for six years1 #aijb to #aijg1 inclusive1 shows #a in #bjj1jjj1jjj2 an increase in relative safety of #hjj per cent4 ,we may assume that never before in the history of railroad transportation was there presented a bigger problem than to-day4 ,the weights are greater2 the distances are greater2 the speed is greater2 the population is more dense2 prices and wages are higher1 and the public service more exacting4 ,a gathering of the official representatives of the nation and of every ,state1 possibly with a desire for uniform and concerted action1 even though it may be unofficial1 points with emphasis to the attitude from which the public contemplates the employment of the railways in their behalf4 ,it is1 ,i believe1 an accepted fact of our political constitution at the present time that the public1 through its authorized representatives and through lawful channels1 has a right to be reasonably assured in this respect4 ,i believe that the co-operation manifested1 as well as the inquiries by the various railway boards1 has in a great sense aided in reaching our present standard of excellence1 to which we can point with pride in comparison with any other national railway system of the globe4 ,we are becoming more familiar--the railroad management and employes--with the standpoint of the public1 and the public is becoming more familiar with the problems of the railroads4 ,the mutual aim is3 ,first1 safety and service2 and1 second1 economy4 ,the public concern for the safety and service is for its own protection1 and the railroad management must give both with economy4 ,so far we have been dealing largely with the progressive safety of railroad operation as furthered by the action of the railways1 either initiatively or responsively1 as the case might be4 ,we have described the improvement in roadway1 equipment and appliances2 the standardizing of regulations for operation2 the selection of employees and their government4 ,with the better understanding of the problem of the railroad by the public through and in connection with the special boards represented here today1 it might not be amiss to express the hope that such needs as cannot be met without the active support of public opinion and perhaps legislation will be clearly brought out4 ,one of the thoughts that occurs to me was suggested by a recent exhibit1 from the records1 of the loss of life1 damage to railroad property1 as well as injury to persons and property conveyed1 due to the presence of unauthorized persons upon railroad property1 whether wilfully or carelessly trespassing4 ,as an illustration of its seriousness3 during last year over #e1jjj trespassers lost their lives on railroads besides a large number injured4 ,numerous mishaps have been traced to acts of trespassers1 which may be the secret of many unexplained casualties4 ,the railroads are a highway for the migration of tramps and unemployed persons1 who commit petty depredations1 jeopardize the safety of trains and the lives of employees and passengers4 ,it seems of no avail that thousands of the worst class are arrested by railroad police forces and convictions secured1 as the sentences in the majority of cases serve rather to aggravate1 than to mitigate1 the evil4 ,one line arrested over #i1jjj trespassers during the past year1 and secured convictions in #ge per cent of the cases2 but in half of them sentence was suspended1 which usually meant that the offender used the railroad to escape from the scene4 ,i do not wish to be understood to asperse the administration of justice1 nor to insist that offences of a serious character are always committed by railroad trespassers1 but the hazard involved is one that should not be permitted to exist1 the railroad property destroyed or damaged bearing no relation to the risk of persons and property transported1 and to the enormous loss of life involved4 ,i feel that the attention of those accustomed to broadly viewing problems of public concern should be brought to bear upon these facts1 with the hope that measures may be taken to insure greater safety in this respect1 as well as to save the waste of life and property now resulting from or incident to the practice4 ,i might venture to suggest that the loss of life is far greater than entailed through decades by boiler explosions or rear-end collisions1 the seriousness of which ,i do not wish to deprecate2 and the situation might warrant special record of the facts being obtained in behalf of the public through the regular channels4 ,wherein lies the increased safety of the future may perhaps be the query in many minds4 ,it is universally sought4 ,it would be mere conjecture on my part1 and1 with your indulgence1 ,i am not inclined to prophesy4 ,as ,i see it1 the great problem is to make our progress sure1 taking no doubtful measures1 adopting no specious devices which may appeal to us at first blush until we have satisfied ourselves that no greater risk is involved by the change4 ,the multiplication of rules enjoining obedience1 together with devices for additional protection1 may yield a false sense of security if fundamental obedience to existing rules and efficiency of existing appliances is one bit impaired by the addition4 ,we must not embrace paper reforms1 even though clamor and pressure be great4 ,an ounce of prevention is better than a pound of cure1 we grant1 but reverse the proverb1 and the pound of prevention may over-whelm us4 ,the public official would seem to be in a judicial position1 mindful of public justice and safety1 basing his judgment and acts upon facts alone4 ,improvement in general safety and character of railroad operation must be the product not only of an enlightened public opinion and the conservative wisdom of public representatives1 but progressive and careful management1 coupled with a sense of discipline and responsibility and industry of railroad employees1 who must jointly share the obligations of the problem4 ,speaking of the compliance we have cheerfully made to the suggestions of the public representatives--the ,commissions--in regard to improvements of service1 facilities and conditions of operation1 etc41 we believe in the long run that these things mean a better standard and greater security for railroad property1 as well as the enormous benefit that accrues to the public by reason of proper and efficient railway service1 and we have only thoughts of admiration for the attitudes of the ,commissions as we have found them4 ,they have a large problem4 ,we are glad to avail ourselves of their wisdom1 and believe it to be the means whereby the responsibility of the carriers to the public is secured1 and through whom the responsibility of the public to the railroads must be voiced4 ,gentlemen1 ,i thank you for your kind attention1 and the favor1 which ,i acknowledge1 of being permitted to address you as best ,i may upon a subject to which we are all devoted4 ,in the absence of a distinct literature on the subject that your worthy ,president assigned to me1 my efforts are perhaps a bit crudely devised1 having no pattern4 ,in another generation we may perhaps evolve a distinct species of railroad statesman and an encyclopedia from which we will be able to point back to the beginnings and the efforts at mutual advice1 and to the growth and knowledge that have ensued1 just as we have seen the day of small things in railroads to be the beginning of a constant growth to the wonders of today4 ,i am sure that the ,american people can congratulate themselves upon an institution of the character of your ,convention and of your several honorable bodies1 and trust that this meeting will be such that you will feel that you have made definite progress in your concurrent aims4 ,,railway ,,mail ,,pay ,,by ,,julius ,,kruttschnitt1 ,,director ,,of ,,maintenance ,,and ,,operation ,,of ,,the ,,union ,,pacific ,,system ,,and ,,southern ,,pacific ,,company4 ,the question of compensation to the railroads of the ,united ,states for carrying the mails has been under review before ,congress at different times during the past ten years4 ,the subject was exhaustively investigated by a ,joint ,commission of the ,senate and ,house of ,representatives in #ahih and #ahii1 which reached the following conclusion after full consideration and taking of a mass of testimony on all sides of the question3 ,upon a careful consideration of all the evidence and the statements and arguments submitted1 and in view of all the services rendered by the railroads1 we are of the opinion that the prices now paid to the railroad companies for the transportation of the mails are not excessive1 and recommend that no reduction thereof be made at this time4 7,see ,report #bbhd1 ,house of ,representatives1 #efth ,congress1 #b;d ,session47 ,this ,commission also concluded as to the pay for railway postoffice cars3 ,taking in view all these facts as disclosed by the testimony filed herewith1 we are of the opinion that the prices paid as compensation for the postal car service are not excessive1 and recommend that no reduction be made therein so long as the methods1 conditions and requirements of the postal service continue the same as at present4 ,since the above recommendations were made1 the operating costs on railroads1 and1 consequently1 the cost of handling the mail1 as hereafter shown1 have been largely increased1 through higher prices for both material and labor1 so that if the railways were not over-paid ten years ago1 the present rates1 being lower than those paid at that time1 would be too low and should really be increased to give the railroads a reasonable return4 ,far from doing this1 legislation enacted in the past few years has had the effect of cutting down the mail pay of the railroads1 whilst the special requirements as to service and equipment have been made more severe and exacting4 ,recent acts of ,congress or orders of the ,postoffice ,department1 which have the force of law1 that have caused reduction of railroad revenues1 are the following3 #a4 ,act of ,congress of ,march #b1 #aijg1 reduced pay on all routes moving in excess of #e1jjj pounds per day4 ,this reduced the pay for handling mails #a1gdj1did4fc1 or #c per cent4 of the total earnings4 ,the same act reduced the rental rates for railway postal cars #ice1igd4ji per annum1 or #af per cent4 ,the total reduction in pay to the railroads under this act was #b1fgf1dfh4gb1 or #f per cent4 of the total compensation for both classes of service4 #b4 ,act of ,congress of ,june #bf1 #aijf1 effective ,july #a1 #aijf1 withdrew from the mails empty mail bags and certain supplies1 to be thereafter shipped as freight or express4 ,it may be conservatively estimated that the annual loss in mail revenue to the railroads by withdrawing these shipments from the mails is at least #a1jjj1jjj1 with practically no reduction in space furnished because of this change4 #c4 ,order of ,postmaster-,general of ,june #g1 #aijg1 changing with each mail weighing thereafter the method of computing average weights on which pay is based from that always previously used and theretofore regarded as the proper interpretation of the law4 ,the effect of this on the mail weighings of #aijg and #aijh was to reduce railway mail pay in two sections of the country1 #b1bbb1ajh4ib1 or #i per cent41 or at the rate of #d1ejj1jjj per annum for all roads of the country4 #d4 ,orders of ,postmaster-,general reducing railway postal car pay by allowing shorter-car pay on certain lines than heretofore authorized and changing certain full lines to half lines2 that is1 reducing pay for return movement1 thus causing an annual loss to the railroads of #cde1bhg4jf4 7,second ,assistant ,postmaster-,general's ,annual ,report #aijh1 page #ac47 ,the effect of all of these reductions on the mail revenue of the railroads aggregate #h1ejj1jjj per annum1 or #ag per cent4 of the total pay received by them in the year ending ,june #cj1 #aijh1 for handling the mail and furnishing railway postal cars4 ,these reductions were made without justification and for the purpose of reducing railroad revenues--and1 incidentally1 the expenses of the ,postoffice ,department1 at a time when the net earnings of the carriers seemed large to the public mind1 although under these favorable conditions the returns to the shareholders approximated but #d per cent41 whilst farmers were receiving #aj per cent41 manufacturers #ae per cent4 and ,national banks #ah to #bj per cent4 ,it is true that there has been a large increase in the gross revenue of the railroads in the last ten years1 but this has accrued from traffic other than carriage of the mails and has been accompanied by great increase in operating expenses4 ,in fact1 were it not for the economies of the carriers1 effected by the use of more powerful locomotives and larger freight cars1 the increase in operating expenses would1 without doubt1 have fully neutralized the growth in revenue4 ,in the months preceding the panic of ,october1 #aijg1 the railroads were quite generally showing decreases in net earnings in face of the largest gross earnings in their history4 ,it was costing them much more than a dollar to handle every dollar increase in gross earnings4 ,since the hasty enactment of ill-considered legislation reducing mail pay1 the revenues of the roads have been seriously affected by a change in business conditions which has reduced traffic without reducing prices of materials and labor4 ,at the same time1 legislation has increased labor costs by reducing hours of service4 ,in #ahih rates for transporting the mails were too low to cover the cost of service1 they are much too low now1 and the losses on the mail service as a whole--there are some routes that pay--are borne by freight traffic entirely4 ,,receipts ,,from ,,mail ,,and ,,other ,,railroad ,,traffic4 ,the latest statistics of operations of all railroads of the ,united ,states are for the year ending ,june #cj1 #aijg1 issued by the ,interstate ,commerce ,commission1 ,july #i1 #aijh4 ,from them we compile the following exhibit comparing results of #aijg with #ahih--when a ,commission of ,congress1 after complete investigation of the subject1 recommended that mail rates be not reduced4 ,pct4 ,pct4 ,year ending ,june #cjth-- #aijg4 #ahih4 ,inc4 ,dec4 ,earnings from passengers #efd1fjf1cdc #bff1igj1dij #aaa -- ,earnings from express #eg1ccb1ica #be1ijh1jge #aba -- ,earnings from mails #ej1cgh1ifd #cd1fjh1ceb #df -- ,earnings from freight #a1hbc1fea1iih #hgf1gbg1gai #ajh -- ,operating expenses #a1gdh1eae1had #hag1igc1bgf #aad -- ,passenger train mileage #eda1dci1agf7;a7 #cda1ebf1gfi #eh -- ,freight train mileage #ffb1ajf1heg7;a7 #ejc1gff1beh #ca -- 7a7 ,including mixed trains4 ,earnings per passenger train mile 7cents73 ,pct4 ,pct4 #aijg4 #ahih ,inc4 ,dec4 ,from passengers #aje4g #gi4d #ca -- ,from express #aj4g #g4g #ch -- ,from mails #i4d #aj4c #aj ----- ---- -- -- ,total #abe4h #ig4d #bi -- ,number passengers carried per train #ea #ci #ca -- ,tons of mail carried per train 4#hf 4#hj #g -- ,earnings per freight train mile 7cents73 ,earned from freight #bgd4j #agc4a #eh -- ,tons of freight carried per train #ceg4ce #bbf4de #eh -- ,operating expenses per total train mile 7cents7 #adg4j #ie4f #ed -- ,net earnings per train mile 7cents73 ,passenger trains #ba4b 7,loss7 #a4h ,freight #abg4j #gg4e #fd -- ,passenger earnings per passenger mile 7cents7 #b4jad #a4igc #b -- ,mail earnings per mail ton mile 7cents7 #aj4ff #ab4eg -- #ae ,freight earnings per freight ton mile #j4gei #j4gec #a -- 7cents7 ,note4--,bear in mind these figures do not1 of course1 show effect of cut of #h1ejj1jjj in mail pay effective ,july #a1 #aijg1 or losses in net revenue through depression in business conditions commencing in latter part of #aijg4 ,as an index of the latter1 the ,commercial and ,financial ,chronicle of ,september #e1 #aijh1 showed that #ada roads1 aggregating #afh1hci miles or #gj per cent4 of all roads in the country1 had suffered a loss of #fc1dhd1ijb1 or #bd4ig per cent41 in net earnings in the first half of the calendar year #aijh1 as compared with same period of previous year4 ,the foregoing statement clearly shows the difference between the revenue obtained from passenger trains as compared with freight trains4 ,the control of the former is largely out of the hands of railroad operating officers1 as to meet competitive and traffic conditions1 heavier and more luxurious passenger cars must constantly be furnished1 which1 of course1 means largely increased expense with very little increase in the paying train load4 ,in fact1 as to the mails1 notwithstanding an increase in tonnage carried on the average train1 the mail earnings per passenger train mile were actually less in #aijg than in #ahih1 due largely to the automatic reduction of railway mail pay per ton mile4 ,considering the freight train mile1 the composition of which is almost entirely within the control of the railroads1 which institute methods for reducing cost of transportation1 it will be observed that by such methods the railroads have been enabled to place #eh per cent4 more tonnage in a train1 bring them #eh per cent4 more earnings1 which can be applied as an offset to the increase of #ed per cent4 in the cost of running a train one mile4 ,this increase in operating expenses per train mile last referred to has been brought about largely because of the increased cost of labor and materials1 which1 as is well known1 has been general throughout the country4 ,comparing results of operation of all railroads of the ,united ,states for the year ending ,june #cj1 #aijg1 with #ahih1 when this question was last up1 it is shown by reports of the ,interstate ,commerce ,commission that gross revenue from operations1 as well as income from investments1 increased #a1chj1jjj1jjj4 ,this is a very large sum1 but let us see what becomes of it4 ,increased wages paid to employes consumed #egg1jjj1jjj1 or #db per cent41 purchase of material included in operating expenses1 #ced1jjj1jjj1 or #bf per cent4 of the increased income1 and these material purchases represented largely labor involved in their production4 ,increases in betterments and miscellaneous deductions consumed #gg1jjj1jjj1 or #f per cent4 of the increased income4 ,larger payments for interest on funded debt and current liabilities consumed #if1jjj1jjj1 or #g per cent41 and larger taxes #b4e per cent41 leaving #bdj1jjj1jjj1 or #af4e per cent4 of the increased income for the owners of the properties1 the stockholders4 ,in #ahih dividends were less than #b per cent4 of the capital stock1 and in #aijg1 even with the large increase noted1 they were only #d per cent4 ,contrast this with the manufacturers' returns of #ae per cent41 the farmers' of #aj per cent41 and the ,national banks' of #ah to #bj per cent4 on their capitalization4 ,reduction in railway mail pay was not justified in #ahih2 it was far less justified in #aijg4 ,on the contrary1 there has been a large fall in mail pay per ton mile1 and conditions under which mails are transported are becoming more and more onerous4 ,the cost of building a railway postoffice car to the present plans and specifications of the ,postoffice ,department is at least #ej per cent4 more than it was in #ahih1 although pay received for handling these cars1 that weigh from #be to #cj per cent4 more than formerly1 has been arbitrarily cut over #af per cent4 by the ,act of ,congress of #aijg1 and has since been further cut through readjustment of routes4 ,for the year ending ,june #cj1 #aijh1 the railroads received gross #dh1aee1cgi1 including railway postoffice pay1 for carrying #hj per cent4 greater tonnage of mails than in #ahih1 a sum #ab1gdg1fbi less than it would have been but for the reduction of rate from #ab4ei cents in #ahih to #i4id cents in #aijh4 ,in face of this1 as we have shown1 arbitrary cuts of #h1ejj1jjj more have been made1 a grand total of over #ba1jjj1jjj less paid now than ten years ago4 ,about eighteen months ago the conclusion was reached that heavier and stronger cars were demanded by changed conditions resulting in heavier trains1 greater speed and increased frequency and consequent risk of accident to clerks and mail in collisions and wrecks4 ,after careful investigation and expert testimony the specifications were revised so that full #fj-;foot cars would weigh about #ajj1jjj pounds instead of #hj1jjj pounds1 and be greatly strengthened by the free use of steel plates and oak timbers4 ,to meet the views of car builders1 east and west1 two plans and specifications1 slightly differing1 were adopted as standard1 and railroads were given the option of conforming to one or the other4 ,the best known anti-telescoping features were adopted in both plans1 producing in the judgment of responsible car builders a car of exceptional resisting and carrying power4 ,when new lines of cars are authorized by the ,department1 or new cars are ordered to take the place of old cars in service1 companies operating the routes are furnished copies of these specifications and the superintendent of division is instructed to see that cars are built in conformity therewith4 ,inspections are made while the car is in the shop1 and when it is completed a full report is made and forwarded to the ,department4 ,a decision is then reached as to whether the car is satisfactory and can be accepted4 7,annual ,report ,postmaster-,general for #aije47 ,this increase in weight of a postal car might not be thought of much moment1 but it means to the railroads the movement of #a1jjj1jjj additional gross ton miles per car per year1 costing them #aj1jjj per annum in operating expenses1 whilst1 as shown1 they receive #af per cent4 less railway postoffice pay now than formerly4 ,united ,states ,postal ,laws and ,regulations1 ,section #aafd1 provide that the average weight of the mails used in fixing rates shall be established by the actual weighing of the mails for a period of not less than thirty days and not less frequently than one in every four years4 ,the construction placed upon this by the ,department has been the one which reduced to the minimum the pay which the railroads receive for services rendered4 ,if mail traffic were stationary1 weighing every four years would not matter much1 but the increase of mail matter throughout the ,united ,states has been very great1 and1 because of the policy of the ,department1 to weigh the mails not more frequently than every four years1 heavy losses have resulted through the railroads having to haul tonnage for three successive years following each weighing for which they receive no pay4 ,as a result of this policy of quadrennial weighings1 the roads in ,interstate ,commerce ,groups #g1 #h1 #i and #aj 7including the territory west of the ,missouri river and the ,mississippi below ,st4 ,louis7 between #ahgh and #aije suffered a loss of #ai1bjj1jjj1 or #ab per cent4 of the aggregate railway mail pay1 compared with what they should have received if the mails had been weighed annually4 ,in other words1 this loss is equivalent to a reduction in the rate received per ton mile in these groups of states of #ab per cent4 ,the loss to roads in the western part of the ,united ,states is most striking1 due as it is to the rapid growth of that section4 ,the same reduction1 though to a slightly less degree1 obtains in other parts of the ,united ,states4 ,,comparative ,,returns ,,to ,,the ,,railroads ,,from ,,conducting ,,mail4 ,,passenger ,,and ,,freight ,,service ,,in ,,the ,,united ,,states4 ,in order to make a fair comparison of operating results from different classes of traffic1 it is necessary to consider them under substantially similar conditions4 ,the best measure of railroad service is work done1 or weight multiplied by distance carried2 in other words1 the ton mileage4 ,a comparison of services differing so widely as the mail1 passenger and freight on the basis of ton mileage of such business is1 however1 unfair1 because in the two former an excessive proportion of dead weight must be transported for each ton of paying load1 whilst with freight traffic the proportion of dead weight is small4 ,the hauling power of a locomotive is measured not by revenue ton miles1 but by ton miles of gross weight1 it making little difference to the locomotive as to what this gross ton mileage is composed of1 the gross tonnage and the speed at which it must be moved being the factors that consume the energy of the locomotive4 ,a computation has been made of ton mileage on each individual mail route by multiplying weight carried by length of route2 to the sum of these we add the dead weight of cars4 ,the report of the ,second ,assistant ,postmaster-,general for year ending ,june #cj1 #aijh1 page #cb1 gives the number of cars engaged in mail service1 which we have multiplied by the average mileage made by the average car1 based on experience of the ,union ,pacific and ,southern ,pacific ,systems1 to ascertain total car mileage for the ,united ,states4 ,multiplying this by the dead weight of a car gives the ton mileage of dead weight1 which1 added to the ton mileage of mails1 gives the gross ton mileage1 measure of work and cost imposed on the railroads in return for the pay they receive for handling the mails4 ,these computations are shown in the following statements1 the results being conservative1 as for want of accurate data it has been necessary to omit some work which the railroads do1 which1 if ascertainable1 would increase the cost4 ,for example1 we have made no charge for the dead weight of that portion of baggage cars devoted to the handling of pouch mail1 such pouch service1 according to the ,postmaster-,general's report1 covering annually on railroads and express trains #abb1jbg1eig miles2 nor for the dead weight of storage mail cars provided by the railroads4 ,neither has any account been taken of the value of transportation given mail clerks1 which1 based on the ,postmaster-,general's report of #aijh1 amounted to #fbi1ggh1ddc miles1 which at #b cents a mile would be #ab1ejj1jjj2 nor for the value of transportation or postal commissions of ,postoffice ,department officials2 nor does it take into account special service rendered by the railroads1 such as delivering mail at stations1 value of space furnished by the railroads and required of them by the ,postoffice ,department at important junction and terminal points for mail distribution and accommodation of government transfer clerks4 ,the statistics of passenger service in the following statements are based on the #aijg ,annual ,report of ,statistics of ,railways published by the ,interstate ,commerce ,commission 7#aijh figures1 which would show higher operating cost1 not available71 with the exception that the average mileage per car per annum run by passenger cars is based on the experience of the ,union ,pacific and ,southern ,pacific ,systems4 ,statistics of freight service are likewise based on the #aijg ,report of ,statistics of ,railways1 freight car mileage being actually reported by the ,interstate ,commerce ,commission1 dead weight per car being computed from all freight cars handled on ,union ,pacific and ,southern ,pacific ,systems4 ,,mail ,,service4 ,year ,ending ,june #cj1 #aijh4 ,paid to the railroads for railway postoffice cars #d1efg1cff ,paid to the railroads for mail transportation #dc1ehh1jac ----------- ,total #dh1aee1cgi ,ton mileage of mails handled by railroads #dhd1fhc1ace ,pay per revenue ton mile1 including railway postal pay car #i4id;c ,pay per revenue ton mile1 excluding railway postal car pay #h4ii;c ,r4,p4,o4 ,apartment4 ,total4 ,number of cars 7,postoffice ,department ,report7 #a1cdb #c1efh #d1iaj ,average length 7special mail weighing #aijg71 feet of mail apartment #ei #bg -- ,equivalent full ,r4,p4,o4 cars #a1cdb #a1fcc #b1ige ,miles run per car per annum 7experience of ,u4 ,p4 ,system and ,southern ,pacific ,company7 #ajj1jjj #fj1jjj -- ,total equivalent ,r4,p4,o4 car miles #acd1bjj1jjj #ig1ihj1jjj #bcb1ahj1jjj ,miles traveled by ,r4,p4,o4 clerks 7miles reported as traveled by crews multiplied by average number of men per crews7 -- #fbi1ggh1ddc ,gross ton mileage-- ,equivalent railway postal clerks1 #bcb1ahj1jjj miles1 at #de tons per car #aj1ddh1ajj1jjj ,ton miles of clerks at #afj pounds per man #ej1chb1bge ,revenue ton miles of mail1 including pouch mail #dhd1fhc1ace -------------- ,total gross ton miles7a7 #aj1ihc1afe1daj ,average weight of mail per equivalent full ,r4,p4,o4 car 7tons77a7 #b4ji ,average weight of clerks per equivalent full ,r4,p4,o4 car 7tons7 4#bb ,average weight of car per equivalent full ,r4,p4,o4 car 7tons7 #de4jj ,rate of mail and ,r4,p4,o4 car pay per gross ton mile 7cents7 #j4dch ,ratio of paying to dead load7a7 #a to #ba4g 7a7 ,no portion of mileage or weight of storage cars or cars handling pouch mail has been considered4 ,,passenger ,,service ,,other ,,than ,,mails4 ,miles run ,total car ,number per car miles run of cars4 per annum4 per annum4 7a7 7b7 ,baggage and express1 excluding #b1ige equivalent postal cars #g1djd #fj1jjj #ddd1bdj1jjj ,sleepers1 diners and parlor cars #b1jjj #ajj1jjj #bjj1jjj1jjj ,coaches1 etc4 #ca1eid #dj1jjj #a1bfc1gfj1jjj ------ ------------- ,total #dj1iih #a1ijh1jjj1jjj ,passenger train miles1 including mixed trains #eda1dci1agf ,cars per train mile-- ,mail #j4dc ,others #c4eb ---- ,total #c4ie ,gross ton mileage-- ,baggage and express cars1 #ddd1bdj1jjjx#cj tons #ac1cbg1jjj1jjj ,sleepers1 diners and parlor cars1 #bjj1jjj1jjjx#ej tons #aj1jjj1jjj1jjj ,coaches1 etc41 #a1bfc1jjj1jjjx#dj tons #ej1eej1djj1jjj -------------- ,total ton miles dead weight #gc1hgg1djj1jjj -------------- ,ton miles of passengers1 #bg1gah1jcj 7a7 passenger miles at #aej pounds per passenger #b1jgh1hia1eeb ,ton miles of baggage and express1 #ddd1bdj1jjj car miles estimated at only #c tons average load in a car #a1ccb1gjj1jjj ------------- ,total ton miles revenue load #c1daa1eia1eeb ,total gross ton miles #gg1bhh1iia1eeb ,total revenue received from passengers and express #fba1ici1bgd ,total revenue received per gross ton mile 7cents7 #j4hje ,total revenue received per revenue ton mile 7cents7 #ah4bc ,ratio of paying weight to dead load #a to #ba4g ,,freight ,,service4 ,total miles run by freight cars 7a7 #ag1abb1bei1ged ,total ton miles dead weight1 each car estimated at #ae tons 7b7 #bef1hcc1hif1caj ,total ton miles revenue freight 7a7 #bcf1fja1cij1dac --------------- ,total gross ton miles #eaj1eeg1edf1dgg ,ratio of paying to dead load #a to #a4a ,total revenue received for transporting freight #a1hbc1fea1iih ,total revenue received per gross ton mile 7cents7 #j4cfi ,total revenue received per revenue ton mile 7cents71 7a7 #j4gei ,tons per car revenue freight 7loaded and empty7 #ac4h ,revenue per car mile 7cents7 #aj4e 7a7 ,statistics of ,railways of ,united ,states1 #aijg4 7b7 ,experience of ,union ,pacific and ,southern ,pacific ,systems4 ,,relative ,,cost ,,of ,,service4 ,to determine the relative costs to the railroads of performing mail1 passenger and freight service1 we must allocate the expenses to freight and passenger service as a whole1 afterwards apportioning the latter to mails and other service4 ,railroad operating expenses apply jointly to both passenger and freight trains1 so that1 with few exceptions1 it is impossible to determine exactly from any published statistics the cost of passenger train service as distinguished from freight4 ,there are some items of train mile expense directly connected with movement which are less for passenger than for freight trains1 whilst1 on the other hand1 many other expenses are greater for passenger than for freight1 such as danger from casualties1 necessity of expensive terminals1 delays to other traffic through preference given to passenger trains1 additional main tracks1 and1 particularly1 higher standards of maintenance of roadbed required for high speed passenger train movement4 ,on account of the impossibility of separating the expenses1 we assume that the above factors about balance each other and that the average cost of running all trains can be taken as either passenger or freight train mile cost1 respectively1 without serious error4 ,we allocate a proportion of the passenger train cost to the mails on the basis of the gross ton miles handled in each class of passenger traffic4 ,the relative revenues and expenses are shown on opposite page1 mail revenues being as shown by #aijh ,report of ,postoffice ,department1 and other statistics as given in the #aijg ,statistics of ,railways of the ,united ,states1 published by the ,interstate ,commerce ,commission1 or are computed therefrom4 ,,all ,,railroads ,,in ,,united ,,states4 ,summary of ,mail1 ,passenger and ,freight ,service4 ,other ,total ,mails4 ,passenger4 ,passenger4 ,freight4 ,gross revenue #dh1aee1cgi #fba1ici1bgd #fgj1jid1fec #a1hbc1fea1iih ,operating expenses #if1cbb1ceg #fgg1fad1fcg #ggc1icf1iid #igd1egg1hbj ,taxes and interest on bonds #bc1ejc1igc #afe1ehb1eeb #ahi1jhf1ebe #bce1dfh1dfg ,total expenses #aai1hbf1ccj #hdc1aig1ahi #ifc1jbc1eai #a1baj1jdf1bha ,surplus -- -- -- #fac1fje1gaa ,deficit #ga1fgj1iea #bba1beg1iae #bib1ibh1hff -- ,ton mileage 7thousands7-- ,revenue weight #dhd1fhc #c1daa1eib #c1hif1bge #bcf1fja1cij ,dead weight #aj1dih1dhb #gc1hgg1djj #hd1cge1hhb #bef1hcc1hif ,total gross #aj1ihc1afe #gg1bhh1iib #hh1bgb1aeg #dic1dce1bhf ,tons dead weight per ton revenue #ba4g #ba4g #ba4g #a4a ,per gross ton mile 7cents7-- ,gross earnings #j4dch #j4hje #j4gei #j4cfi ,operating expenses #j4hgg #j4hgg #j4hgg #j4aig ,earnings over operating expenses -- -- -- #j4agb ,operating expenses over earnings #j4dci #j4jgb #j4aah -- ,taxes and interest on bonds #j4bad #j4bad #j4bad #j4jdh ,surplus -- -- -- #j4abd ,deficit #j4fec #j4bhf #j4ccb -- ,per cent of operating expenses to earnings #bjj #aji #aae #ec ,gross expenses to earnings #bdi #ace #add #fg ,figures exclude dividends1 betterments and additions1 etc4 ,the above shows that whilst passenger service as a whole is unremunerative1 the mail earnings are hardly what they should be to pay a fair share of the railroad operating expenses only1 regardless of taxes and interest4 ,or1 put in another way1 our computations have shown that in each passenger train run the railroads haul an average of #dc_/ajj of a mail car1 and the contents of this car yielded average earnings of #i4d cents for each mile run4 ,the computation just made shows that each freight car run1 loaded or empty1 yields a revenue to the carrier of #aj4e cents per mile4 ,incredible as this may seem1 it is understandable when we reflect that the railroads transport #a4a tons of dead weight for each ton of freight for which they are paid2 with mail they transport #ba4g tons1 or twenty times as much4 ,the freight rate is 4#gei;c per ton mile1 the mail rate #i4id;c1 or only thirteen times as much4 ,arguing in still another way3 ,average number of cars in each passenger train handled in ,united ,states is #c4ie1 of which mail cars amount to #j4dc1 or #aa per cent4 ,eleven per cent4 of the average earnings of a passenger train is #ac4h cents1 but mail contributed only #i4d cents4 ,that is1 it should pay #dg per cent4 more than it does to be made to contribute a fair share to the insufficient earnings of a passenger train4 ,mails are fairly responsible on basis of space used for #aa per cent4 of the cost of running a passenger train1 or #af4ag cents1 and as dead weight per foot of space is greater with mails1 their proportion of train mile cost is even larger4 ,they pay little more than one-half this cost4 ,by building larger capacity cars and larger engines1 the cost of handling freight traffic1 entirely in the control of the carrier1 has been reduced to follow rate reductions and increased expenses4 ,on the other hand1 because methods of conducting passenger traffic are largely--and mail traffic entirely--beyond their control the cost of handling mail and passengers has been steadily increasing1 and1 as revenue has not increased1 the net revenue or margin of profit has been cut to a point where it is unremunerative4 ,the argument advanced by advocates of reduced mail pay1 that increasing density permitted economies and that lower rates would yield more net1 is not applicable when the carriers' hands are tied and measures of economy so successfully applied to handling freight are prohibited4 ,the following will illustrate this3 ,on routes where pouch service is used mail is handled with express and baggage without much increase of cost over other passenger traffic4 ,a somewhat greater mail traffic obliges the railroads to furnish apartment cars1 at increased expense and dead weight for the postoffice feature1 but still permitting the railroads to carry other traffic in the same car4 ,a still further increase in weight means the establishment of full ,r4 ,p4 ,o4 lines for which the railroads receive extra1 but inadequate1 compensation1 these cars being used for no other class of traffic and adding largely to the weight and cost of train service4 ,even after the route has been made an ,r4 ,p4 ,o4 route1 the railroads are not permitted to economize by carrying more mail in the car1 and as traffic density grows the roads must under the requirements of the ,department add more cars1 almost in proportion to the business1 as the loads carried in ,r4 ,p4 ,o4 cars1 as shown by recent special weighing1 average only #b tons1 and many of them return empty--for which empty haul the railroads often receive no pay4 ,when the mail business has assumed very large proportions and the ,r4 ,p4 ,o4 cars have multiplied in ratio therewith1 special trains are then added to carry the bulk of the mail1 being run at very high speed and adding to the railroad expense account in a far higher degree per unit of business than any other class of traffic4 ,in contrast to the above1 baggage and express are very generally hauled in the same and a much lighter and less costly car than the mail car1 and increase in tonnage is accommodated by hauling greater loads per car4 ,in the case of freight1 increased density means larger car and train loads and greatly reduced costs of operating per ton mile4 ,despite these differences in conditions1 the automatic scale has secured to the ,government a larger reduction in mail rates per ton mile in the last ten years than the percentage of fall in freight rates1 despite higher labor and material costs of railroad operating4 ,as a result1 the mail business--which1 according to evidence introduced before the ,congressional ,committee of #ahii1 was unprofitable at that time1 has been made more unprofitable at the present time by the heavy rate reductions of #aijf-g4 ,as the greatest reduction made deals with mail routes on which traffic is heaviest1 a consideration should be given to the following conditions of handling mail on such routes3 ,,heavy ,,traffic ,,mail ,,routes4 ,on very many of the heavy traffic routes where the principal reduction in pay occurred a large part of the mail is now handled in special mail trains run at excessively high rates of speed4 ,such trains introduce the following conditions3 #a4 ,a very much greater liability to accident4 ,a large proportion of the deplorable accidents that have occurred on the ,american railroads in recent years have occurred to excessively high speed trains1 accidents to such trains being almost invariably destructive to life and property4 ,an examination of serious accidents on the ,union ,pacific ,system and ,southern ,pacific ,company for the calendar year #aijf shows that #cf per cent4 of the property damage from all causes1 including negligence1 as traceable to trains not under control and excessive speed1 whilst #cj per cent4 additional damage was due to causes that might prevent inferior trains getting out of their way1 such as keeping main line on time of superior trains1 failure to observe signals or orders1 etc4 #b4 ,mail trains run at excessive high speed are much more expensive to operate than other trains1 for the following reasons3 7a7 ,fuel consumption per traffic unit is very much greater at high speed because of diminished tractive power of locomotives4 7b7 ,a relative greater hauling capacity of locomotives must be consumed in moving trains at higher speeds4 7c7 ,excessive speed requires higher standards of track maintenance1 double-tracking1 block signals1 heavy rail1 better ballasted roadbed1 etc41 etc4 7d7 ,high speed means increased wear and tear on equipment and track4 7e7 ,high speed trains are expensive1 delaying and adding to the cost of other traffic4 #c4 ,speed of trains carrying mails has been constantly increased1 a study made of the speed per hour made on fastest trains on which ,r4 ,p4 ,o4 cars are handled on seventeen of the principal mail routes giving the following results3 ,average of fastest train on seventeen mail routes3 ,speed ,year4 7,miles per ,hour47 ,relative4 #aije #db4ba #acf #ahii #ci4bc #abf #ahij #cd4ce #aaj #ahhe #ca4cd #ajj ,average increase per year #j4ee ,with the above increase in speed1 rates paid the railroads have automatically decreased whilst expenses have largely increased to provide for the above greater speed and because of increase in prices of labor and materials of all kinds in the past five or six years4 ,this increase in speed has been made coincident with growth of freight traffic1 which is the railroads' profitable business1 the non-profitable high speed trains delaying the profitable ones1 increasing their cost and incurring liability to accident4 #d4 ,earnings of mail trains supposedly high are not higher than other passenger trains1 which1 as a whole1 earn very much less per mile run than freight1 relative figures being as shown by last report of the ,interstate ,commerce ,commission--as #ajj is to #bah1 whilst the cost of running passenger trains is as much1 if not more4 ,this is particularly the case with high speed passenger trains1 which is the most unprofitable business in which railroads are engaged4 7,on ,union ,pacific ,system last year earnings per passenger train mile were #a4ga1 per freight train mile #d4ca47 #e4 ,passenger engines in hauling fast passenger trains on principal main lines at the present time have assumed1 on account of increased weight of equipment and excessive speed required1 enormous proportions4 ,we now have in such service on our lines engines weighing exclusive of tender #bbb1jjj pounds1 this power being #fj per cent4 heavier and twice as costly as locomotives used in the same class of service ten years ago1 burning double the amount of fuel4 ,engineers running these locomotives receive higher pay because of the greater size of these engines--to say nothing of recent increases made in their schedules4 ,such heavy power moving at fast speed is extremely destructive to the roadbed1 requiring a much higher standard of maintenance than formerly1 maintenance of way cost in the past few years having gone up #ej per cent4 ,engine failures are largely confined to fast passenger trains1 and1 in general1 expenses are increased all along the line because of their introduction4 #f4 ,as illustrating the additions to expenses because of increased track maintenance on account of fast passenger and mail trains1 we have made a study of statistics1 using the ,interstate ,commerce report of #aijf as a basis1 of seven roads having a large proportion of fast passenger service and seven roads having a moderate speed passenger service1 but with a large proportion of freight service4 ,on the roads first named the average cost of maintenance of way per mile was #b1iea1 and on roads in the latter class #a1efe4 ,the operating expenses per train mile in the former class were #a4dg1 and in the latter #a4cc4 ,the roads in the former class1 on account of large number of excessively high-speed trains1 were obliged to double-track their lines1 which directly increased maintenance expenses4 ,,pay ,,for ,,railway ,,postal ,,cars4 ,the large reduction made by ,act of ,march #b1 #aijg1 in pay for railway postal cars was made in face of large increase in the cost of constructing such cars1 due to higher prices of labor and material and greater cost of meeting the more exacting specifications of the ,postoffice ,department4 ,changing to steel construction1 increases in weight1 and generally heavier operating expenses1 have created an extremely large increase in cost of moving these cars4 ,the standard railway postal car of only a few years ago1 #fj feet long1 weighed #hj1jjj pounds and cost about #e1ejj4 ,the standard railway postoffice cars1 #fj feet long1 of wooden construction1 used on the railroads with which ,i am connected1 weigh over #ajj1jjj pounds each1 or one-fourth more weight1 and costs #dj per cent4 more1 whilst our new standard postal cars of steel construction weigh #ajh1jjj pounds and cost over #i1jjj1 or #fj per cent4 more than the car of a few years ago4 ,an argument sometimes made in favor of a lowering of ,r4 ,p4 ,o4 car pay is that for apartment cars used in runs where mail density does not require a full car1 no additional compensation is allowed4 ,but we feel that a fair consideration of the circumstances under which mail is handled as compared with other traffic will justify the conclusion that this is not an argument in favor of reducing ,r4 ,p4 ,o4 pay1 but rather for allowing the railroad additional compensation for the apartment cars as well4 ,both services require the furnishing of special features in the way of traveling postoffices not required except for the convenience of the ,postoffice ,department to enable it to do work while mail is in transit1 such as ordinarily performed in office buildings4 ,the full postal car is more expensive to the roads1 as it always means additional car service1 whilst in some cases of apartment cars the space not occupied by the traveling postoffice is adequate to take care of baggage and express1 though very frequently this service also means additional car movement that would not be necessary but for the postoffice feature4 ,the saving to the railroads from reduction in car mileage that would be possible if it were not obliged to furnish traveling postoffices1 but could use the space occupied by racks and other postoffice features by loading additional mail in cars1 would be many times the revenue allowed by the railway postal cars4 ,to illustrate3 ,the car mileage of postal cars 7changing apartment cars to full cars on basis of length7 is #bcb1ahj1jjj per annum2 the ton mileage of mail #dhd1fhc1ace1 or #b4ji tons per car4 ,from figures obtained from the ,postoffice ,department1 average car weights shown on page #ei1 table ,,ee1 special mail weighing of #aijg1 it is ascertained that storage mail cars1 which1 of course1 contain no postoffice features1 carry an average of #g4jd tons of mail4 ,at this rate the whole mail business could be carried by the movement of #fh1hdd1jjj car miles1 or #afc1ccf1jjj less than actually employed1 due to the postoffice features4 ,the total railway postal car pay is only #d1efg1cff1 or only #b4h cents per additional car mile1 whilst the operating expenses chargeable to running these #afc1ccf1jjj car miles1 of #gj per cent4 of the total movement1 amount to #fg1jjj1jjj4 ,but for the postoffice feature1 the combined weight of an entire route could many times be handled in a single car such as is used for express instead of several heavy and expensive postoffice cars1 whilst often extra cars for storage mail must be added1 for which no extra pay is allowed1 the cost of running these storage cars also not being included in the computation of cost of service1 as no accurate statistics of their number or car mileage are available4 ,in addition to the furnishing of storage cars1 although many ,r4 ,p4 ,o4 routes are paid for on a basis of #dj foot cars1 it is not economical for the railroads to construct such cars which are not interchangeable with other equipment and which would have to be thrown aside if through growth of traffic larger cars are afterwards required4 ,as a result1 full #fj-;foot ,r4 ,p4 ,o4 cars have for years been furnished on many #dj and #ej-;foot routes1 the railroad getting no credit for this1 whilst on many other routes ,r4 ,p4 ,o4 cars have been run in advance of the fixing of ,r4 ,p4 ,o4 pay for them4 ,on a number of routes postal car pay has been allowed for running full cars in one direction only1 classing such routes as half-lines4 ,this obliges the railroads to move the car in the opposite direction without pay1 the small additional compensation of less than #d cents per mile run received in one direction being entirely inadequate to compensate the road for the empty haul--to say nothing of allowing anything for moving it in direction for which pay is received4 ,to illustrate3 ,the ,union ,pacific ,railroad in one case between ,council ,bluffs1 ,iowa1 and ,ogden1 ,utah1 #a1jjc miles1 receives no pay for handling east-bound a #fj-;foot mail car1 which is paid for west-bound only1 six mail cars being required on this line4 ,the ,r4 ,p4 ,o4 pay per car mile1 including movement in both directions1 is only #b4bd cents1 or about what would be received for transporting a single passenger1 although a standard passenger coach has a capacity for #gj passengers4 ,in connection with the railway postoffice1 an item not often considered is the value of transportation furnished clerks in the railway mail and compartment cars4 ,figuring this at #b cents per mile1 which is about the lowest passenger fare1 the total value of this transportation for clerks in railway postoffice cars would be #h1fjj1jjj per annum1 or #d1jjj1jjj more than the railroads receive for the handling of these cars1 and the value of transportation in the case of apartment cars would be #d1jjj1jjj per annum additional4 ,in addition to this1 a large amount of free transportation is required annually by the ,postoffice ,department for inspectors and other officers of the ,department4 ,the ,postoffice ,department issues annually about six hundred traveling commissions to postoffice inspectors and other postal officials1 and requires railroad companies to honor such commissions for free transportation on all trains on all lines on which mails are carried4 ,in some cases these commissions are issued to ,government officials whose official duties are in no way connected with the transportation of mails on railroads4 ,the railroads have no control whatever over the issuance of these commissions and can not even secure from the ,postoffice ,department a list of them1 the ,department holding that the list is confidential4 ,these commissions are frequently used for personal travel in violation of the rulings of the ,interstate ,commerce ,commission4 ,in brief1 the ,postoffice ,department in effect arbitrarily issued about six hundred annual passes over every mail carrying railroad in the ,united ,states1 which is equivalent to about #bjj1jjj annual passes4 ,,postal ,,deficit4 ,in investigating the subject of railway mail pay1 we have been struck very forcibly with changes which have taken place in the revenues and expenditures of the ,postoffice ,department since #ahii1 when this subject was last reviewed4 ,although postal operations still show a deficit1 it is a fact that its revenues have increased in a remarkable degree1 and the deficit is certainly not due to the amounts paid to the railroads for hauling mail1 as these payments are relatively far less now than formerly4 ,revenues of the ,postoffice ,department have grown from #ajb1jjj1jjj in #aijj to over #aia1jjj1jjj in #aijh1 or #hg per cent41 this increase in revenue in eight years being as great as the entire increase in the previous thirty-five years4 ,but in this same period of eight years there was an increase of #ajj1fjj1jjj1 or #ic per cent41 in ,postoffice ,department expenditures1 of which only #aj1ijj1jjj1 or #aa per cent41 was paid to the railroads1 #cc1ice1jjj1 or #cd per cent41 going to ,rural ,free ,delivery1 #be1jjj1jjj1 or #be per cent41 to postmasters and their clerks1 and the balance to other items4 ,the following statement shows for the year #ahie and for the years #ahii to #aijh1 inclusive1 postal revenue and postal expenditures divided between amounts paid the railroads1 cost of rural delivery and other expenditures3 ,,revenue4 ,,expenditures4 ,paid ,rural ,year4 ,railroads4 ,delivery4 ,other4 ,total4 #ahie #gj1ihc1jjj #ca1ahi1jjj7;a7 -- #eg1fcg1jjj #hh1hbf1jjj7;a7 #ahii #ie1jba1jjj #ce1gge1jjj #aej1jjj #fe1fjg1jjj #aja1fcb1jjj #aijj #ajb1cee1jjj #cg1cae1jjj #dbj1jjj #gj1jje1jjj #ajg1gdj1jjj #aija #aaa1fca1jjj #ch1afa1jjj #a1ggh1jjj #ge1faf1jjj #aae1eee1jjj #aijb #aba1hdh1jjj #ci1eai1jjj #c1iih1jjj #ha1bfi1jjj #abd1ghf1jjj #aijc #acd1bbd1jjj #da1cgg1jjj #h1ajb1jjj #hi1cje1jjj #ach1ghd1jjj #aijd #adc1ehc1jjj #dc1iga1jjj #ab1fhb1jjj #ie1gji1jjj #aeb1cfb1jjj #aije #aeb1hbg1jjj #de1dhb1jjj #bj1hbd1jjj #aja1jic1jjj #afg1cii1jjj #aijf #afg1icc1jjj #df1iec1jjj #bd1ggd1jjj #ajf1edc1jjj #agh1bgj1jjj #aijg #ahc1ehe1jjj #di1hca1jjj #bf1fdc1jjj #aac1ged1jjj #aij1bch1jjj #aijh #aia1dgi1jjj #dh1aee1jjj #cd1cee1jjj #abe1hdb1jjj #bjh1ceb1jjj 7a7 ,includes #a1fdf1gda accrued in favor of ,pacific ,railroads in #ahie1 but not charged to postal expenditures4 ,the railroads are themselves large contributors to the revenues of the ,postoffice ,department4 ,it is ascertained that nine roads1 covering #bg1ejj miles1 pay annually #bfa1jjj for postage stamps1 or at the rate of #b1jjj1jjj for the entire railroad mileage of the country4 ,the next statement shows clearly that the ratio of expenses to receipts of the ,postoffice ,department would in #aijh have been but #ia per cent4 and no deficit but for the expenditures made for ,rural ,free ,delivery1 the amount paid the railroads being now only #be per cent4 of the total revenue as compared with #da per cent4 in #ahie4 ,,ratio ,,of ,,expenses ,,of ,,postoffice ,,department ,,to ,,postal ,,revenues #ahie-aijh4 ,percentage ,percentage ,percentage of ,postal ,rev4 ,paid to ,paid to ,year4 ,paid to ,r'ys4 ,rural ,free ,del4 ,other ,expenses4 ,total4 #ahie #da #j #ge #aaf #ahii #ch #j #fi #ajg #aijj #cf #j #fi #aje #aija #cd #a #fi #ajd #aijb #cb #c #fg #ajb #aijc #ca #f #ff #ajc #aijd #ca #i #ff #ajf #aije #cj #ad #ff #aaj #aijf #bh #ae #fc #ajf #aijg #bg #ae #fb #ajd #aijh #be #ah #ff #aji ,in order to avoid a deficit1 attention has been concentrated on this #be per cent4 of the postal expenditure1 which we contend is at least not an unfair compensation to the railroads for services rendered4 ,though the proportion of the total revenue going to the railroads has fallen one-third in ten years1 the deficit still remains1 and is it reasonable to suppose that any reduction in railway mail pay would not be speedily absorbed in other directions8 ,on the contrary1 ought not efforts be concentrated to bring within reasonable figures the other expenses of the ,department1 which now absorb #hd per cent4 of its revenue as compared with only #fi per cent4 in #aijj--;despite an actual growth in postal revenue in the same time of #hi1jjj1jjj1 or #hg per cent48 ,it will be noted from these figures that a reduction of #aj per cent4 in the ratio of railway mail pay to total revenue can be entirely wiped out by an increase of only #c per cent4 in other postal expenses1 whilst a retrenchment of #aj per cent4 in the latter would have put the ,department almost on a paying basis1 notwithstanding the heavy cost of ,rural ,free ,delivery4 ,from #ahie to #aijh actual totals show that the railroads' pay has increased #ed per cent4 for handling #aad per cent4 more mail tonnage1 whilst in the same period other expenses of the ,postoffice ,department have grown #agh per cent41 revenues increasing #adi per cent4 ,increased mail business means a direct increase in postal revenue1 as postage remains the same regardless of tonnage1 but carrying this increased business on the part of the railroads means less proportionate revenue to them according to volume of tonnage1 so that the proportion of the postal revenue they now receive is very much less than formerly4 ,labor1 material1 and the price of everything sold in commerce have advanced materially1 as we all know1 in the past seven or eight years2 railway mail pay being practically the only thing that has decreased in the face of conditions that should have raised it4 ,as a large increase in mail tonnage means to the ,postoffice ,department about an equal increase in revenue with a decreased payment per ton to the railroads through lower rates1 the avoidance of a deficit would seem not a difficult matter if other postal expenses were kept at least within sufficient control1 so they would not increase faster than the increase in volume of mail handled4 ,the ,postoffice ,department enjoys this peculiar advantage of receiving with the growth of the country an increase in revenue directly in proportion to the increase in business handled4 ,in disbursing this revenue1 it must pay less to the railroads in proportion to the density of business1 thus retaining to apply on other expenses a larger net revenue year by year4 ,it is reasonable to suppose that the cost of many branches of the ,department should not increase in the same ratio as tonnage of mail 7for example1 that expenses of individual postoffices and administrative and general expenses should not grow in this proportion74 ,yet1 regardless of these favorable influences1 expenditures in other directions have absorbed the great net revenues after paying the railroads1 and it is in these directions that the cause of the postal deficit must be looked for4 ,the growth of these expenditures1 which since #aijj has been much faster than the rise in mail tonnage1 is shown in the following comparison of #aijh with #ahih3 #aijh4 #ahih4 ,increase4 ,pct4 ,ton mileage of mails handled by railroads #dhd1fhc1ace #bgb1gad1jag #baa1ifi1aah #gh ,postal revenues #aia1dgh1ffc #hi1jab1fai #ajb1dff1jdd #aae ,less paid to railroads #dh1aee1cgi #cd1cgi1bbg #ac1ggf1aeb #dj ,net applicable to other expenditures #adc1cbc1bhd #ed1fcc1cib #hh1fhi1hib #afb ,other expenditures #afj1aif1ejg #fc1fed1big #if1edb1baj #aeb ,deficit #af1hgc1bbc #i1jbj1ije #g1heb1cah #hg ,per ton of mail handled by railroads 7cents7-- ,postal revenues #ci4e #cb4f #f4i ,paid to railroads #i4i #ab4f -#b4g ---- ---- ---- ,net applicable to other items #bi4f #bj4j #i4f ,other expenditures #cc4a #bc4c #i4d ---- ---- ---- ,deficit #c4e #c4c #j4b ,note4--,the increase in gross postal revenue per unit of mail handled by railroads is no doubt due to increase in city mail not handled by railroads4 ,chicago1 ,ill41 ,march #a1 #aiji4 ,,the ,,diminished ,,purchasing ,,power ,,of ,,railway ,,earnings ,,by ,c4 ,c4 ,,mccain4 ,chairman of the ,trunk ,line ,association1 ,new ,york1 #aiji2 ,formerly ,auditor ,interstate ,commerce ,commission4 ,,introduction4 ,the ten years or more which have elapsed since the resumption of industrial activity that began some time in #ahig have been characterized by changes in rates of wages for substantially all kinds of labor1 and in the prices of most commodities which amount to a profound and material alteration in the value of money4 ,wages of railway labor1 prices of railway materials and supplies and prices of commodities carried by railways and of those produced by the purchasers of railway transportation have rapidly increased4 ,this is equivalent to a decrease in the value of the money in which railway charges are paid for the appreciation of commodities is the depreciation of money4 ,commodities cannot have generally augmented value without money having diminished value4 ,railway rates have not been adjusted to this diminished value of money4 ,the involuntary and unsolicited reduction in railway rates has gone so far as seriously to threaten the stability of railway wages and that of the whole railway industry4 ,some adjustment through compensatory advances in money rates 7i4 e41 nominal rates7 is1 therefore1 absolutely necessary4 ,the extent of the changes which have taken place1 their relation to the problem of railway rates and the adjustments which they have made necessary are set forth in the following pages4 ,,typical ,,unchanged ,,rates4 ,a fifteen-ton car-load of fourth class freight carried all-rail between ,chicago and ,new ,york at any time during the year #ahig would have brought the railways transporting it #aje4jj in gross receipts4 ,there has been no change in the class-rates between ,chicago and ,new ,york since #ahig and the same quantity of freight1 classified in the same way1 produces the same gross receipts now that it did in #ahig4;,e ,the rates between ,chicago and ,new ,york1 as is very well known1 are the basis of all rates in the region north of the ,james1 ,potomac and ,ohio ,rivers1 and east of the ,mississippi ,river and of a large proportion of the rates applicable to traffic originating or destined to any point in that region4 ,without a change in rates between ,chicago and ,new ,york there could have been1 during the continuance of the system of rate adjustment that has been in force since long prior to the year #ahig1 no general change in the rates based upon those in force between those cities4 ,,wages ,,of ,,railway ,,employees4 ,more than forty per cent4 of the gross receipts of the railways of the ,united ,states are expended in the payment of employees1 the sums annually paid out for that purpose since #ahig being as follows3 ,amount paid to ,year4 employees4 #ahig #dfe1fja1eha #ahih #die1jee1fah #ahii #ebb1ifg1hif #aijj #egg1bfd1hda #aija #faj1gac1gja #aijb #fgf1jbh1eib #aijc 7a7#ggf1cba1dae #aijd #hag1eih1haj #aije #hci1idd1fhj #aijf 7a7#ibg1hja1fec #aijg #a1jgb1chf1dbg --------------- ,total #g1gha1fhe1bad 7a7 ,includes #ai1jjj1jjj estimated for ,chicago1 ,milwaukee ,st4 ,paul in #aijc and #bg1jjj1jjj for the ,southern ,pacific in #aijf4 ,it is a matter of common knowledge and of frequent comment that a given sum of money will now buy very much less in labor or commodities than it would in #ahig4 ,the change has been gradual but substantially continuous and the aggregate result has been enormous4 ,the consequence of this change has worked great hardship to those whose incomes have not been adjusted to the changed purchasing power of money but fortunately the rates of wages of nearly all workmen and the prices of practically all products of labor expended upon farms or in factories or otherwise have been raised sufficiently to more or less completely offset it4 ,the principal sufferers are those salaried employees whose salaries have not been readjusted and those whose incomes are received under contracts covering long periods of time or are derived from the marketing of commodities or services at prices more or less effectively controlled by custom or statute4 ,many of the owners of railway bonds are in the second class and all interstate railways are1 as to the disposal of their services1 in the third class4 ,as already noted1 the gross revenue derivable by the railways from the transportation of a carload consisting of fifteen tons of fourth class freight between ,chicago and ,new ,york is the same now that it was in #ahig--;i4 e41 #aje4jj4 ,but #aje4jj is worth much less to any railway now than it was in #ahig for money is worth at any time what it will buy at that time4 ,the reports of the ,interstate ,commerce ,commission show the following increases in rates of average daily wages paid to railway employees3 ,wages per day4 ,class of ,employees4 ------------------------- ,increase1 #ahig4 #aijg4 per cent4 ,station agents #a4gc #b4je #ah4ej ,other stationmen #a4fb #a4gh #i4hh ,enginemen #c4fe #d4cj #ag4ha ,firemen #b4je #b4ed #bc4ij ,conductors #c4jg #c4fi #bj4bj ,other trainmen #a4ij #b4ed #cc4fh ,machinists #b4bc #b4hg #bh4gj ,carpenters #b4ja #b4dj #ai4dj ,other shopmen #a4ga #b4jf #bj4dg ,section foreman #a4gj #a4ij #aa4gf ,other trackmen #a4af #a4df #be4hf ,switchmen1 flagmen and watchmen #a4gb #a4hg #h4gb ,telegraph operators and despatchers #a4ij #b4bf #ah4ie ,employees1 account floating equipment #a4hf #b4bg #bb4jd ,all other employees and laborers #a4fd #a4ib #ag4jg ,the foregoing affords a means of ascertaining the real value of #aje4jj of railway gross receipts in #ahig and #aijg and the decrease from the earlier to the later year4 ,the following table shows the number of days labor of each of the different classes of railway labor which #aje4jj would buy in each of the years indicated3 ,number of days labor purchasable for #aje4jj4 ,class of ,employees4 ------------------------ ,decrease1 #ahig4 #aijg4 per cent4 ,station agents #fj4g #ea4b #ae4fe ,other station men #fd4h #ei4j #h4ie ,enginemen #bh4h #bd4d #ae4bh ,firemen #ea4b #da4c #ai4cd ,conductors #cd4b #bh4e #af4fg ,other trainmen #ee4c #da4c #be4cb ,machinists #dg4a #cf4f #bb4bi ,carpenters #eb4b #dc4h #af4ji ,other shopmen #fa4d #ea4j #af4id ,section #fa4h #ee4c #aj4eb ,other trackmen #ij4e #ga4i #bj4ee ,switchmen1 flagmen and watchmen #fa4j #ef4a #h4jc ,telegraph operators and despatchers #ee4c #df4e #ae4ia ,employees1 account floating equipment #ef4e #df4c #ah4je ,all other employees and laborers #fd4j #ed4g #ad4ec ---- ---- ----- ,average -- -- #af4bg ,the foregoing shows that on the average the gross railway receipts derived from the service assumed as the basis of the calculation would purchase #af4bg per cent4 less of the necessary services of railway employees1 in #aijg than in #ahig and what is true of the receipts from this service is true of every dollar received by a railway--that is1 no railway dollar will pay for more than eighty-four per cent41 on the average1 as much railway labor as it would in #ahig4 ,the change in railway rates necessary fully to offset this decrease in the value of the money in which rates are paid would amount to an apparent advance of #ai4dc per cent1 of the money rates now in force4 ,,cost ,,of ,,fuel ,,for ,,locomotives4 ,next to labor the principal single item of expense incurred in the operation of the railways of the ,united ,states is for the fuel used in their locomotives4 ,the expenditures for this purpose now constitute about eleven per cent4 of the cost of operation and since #ahig have been as follows3 ,cost of fuel ,year4 for locomotives4 #ahig #fe1jdd1fgj #ahih #gb1dfi1ggg #ahii #gg1ahg1cdd #aijj #ij1eic1ife #aija #ajd1ibf1efh #aijb #abj1jgd1aib #aijc #adf1eji1jca #aijd #aeh1idh1hhf #aije #aef1dbi1bde #aijf #agj1dii1acc #aijg #bjj1bfa1ige -------------- ,total #a1cfb1idd1ghf ,thus1 from #ahig to #aijg1 the cost of fuel for locomotives1 in spite of the economies in its use partially suggested by the contemporaneous increase in the train-load of freight from #bjd4fb to #ceg4ce tons1 or #gd4fd per cent41 increased #bjg4hh per cent41 while passenger traffic increased but #abf4ae per cent4 and freight traffic by #adh4fi per cent4 ,thus while there was one dollar spent for locomotive fuel in #ahig for each #ag4be of gross railway receipts the ratio had declined by #aijg to one dollar for locomotive fuel for each #ab4ic of gross receipts--a difference which must plainly be productive of profound changes in the proportion of gross receipts remaining after the payment of necessary operating expenses4 ,the average prices of coal1 per ton of #b1jjj pounds1 at the mines1 in the several states1 in the years #ahig and #aijg1 as given by the ,united ,states ,geological ,survey1 were as follows3 ,price per ton4 ----------------------------- ,increase1 ,state4 #ahig4 #aijg4 per cent4 ,alabama #j4hh #a4bi #df4ei ,arkansas #a4jf #a4fh #ef4di ,california 7a7#b4ee 7a7#c4ha #di4da ,colorado #a4ag #a4dj #ai4ff ,georgia 7b7#a4jc 7b7#a4ch #cc4ih ,idaho 7c7#c4cc 7c7#d4aj #bc4ab ,illinois 4#gb #a4jg #dh4fa ,indiana 4#hd #a4jh #bh4eg ,iowa #a4ac #a4fb #dc4cf ,kansas #a4ah #a4eb #bh4ha ,kentucky 4#gi #a4jf #cd4ah ,maryland 4#gf #a4bj #eg4hi ,michigan #a4df #a4hj #bc4bi ,missouri #a4jh #a4fd #ea4he ,montana #a4gf #a4id #aj4bc ,new ,mexico #a4ch #a4df #e4hj ,north ,dakota #a4jh #a4fa #di4jg ,ohio 4#gh #a4aj #da4jc ,oklahoma #a4cd #b4jd #eb4bd ,oregon #c4ji #b4cd ,decrease ,pennsylvania-- ,bituminous 4#fi #a4jd #ej4gb ,anthracite #a4ea #a4ia #bf4di ,tennessee 4#ha #a4be #ed4cb ,texas #a4eb #a4fi #aa4ah ,utah #a4ai #a4eb #bg4gc ,virginia 4#fg #a4jb #eb4bd ,washington #a4id #b4ji #g4gc ,west ,virginia 4#fc 4#ii #eg4ad ,wyoming #a4ba #a4ef #bh4ic 7a7 ,includes ,alaska4 7b7 ,includes ,north ,carolina4 7c7 ,includes ,nebraska4 ,it will be noted that the cost of coal increased in every state of considerable production4 ,in ,california much of the locomotive fuel used consists of petroleum1 and the same fuel is used to some extent in ,oregon and ,new ,mexico4 ,the number of tons of coal purchasable at the mines in the several states with #aje4jj1 the gross revenue from the typical shipment which has been used for illustrative purposes1 in #ahig and in #aijg1 would have been as follows3 ,tons of coal purchasable for #aje4jj4 ------------------------ ,decrease1 ,state4 #ahig4 #aijg4 per cent4 ,alabama #aai #ha #ca4ic ,arkansas #ii #fb #cg4cg ,california #da #bh #ca4ga ,colorado #ij #ge #af4fg ,georgia #ajb #gf #be4di ,idaho #cb #bf #ah4ge ,illinois #adf #ih #cb4hh ,indiana #abe #ig #bb4dj ,iowa #ic #fe #cj4aa ,kansas #hi #fi #bb4dg ,kentucky #acc #ii #be4ef ,maryland #ach #hh #cf4bc ,michigan #gb #eh #ai4dd ,missouri #ig #fd #cd4jb ,montana #fj #ed #aj4jj ,new ,mexico #gf #gb #e4bf ,north ,dakota #ig #fe #cb4ii ,ohio #ace #ie #bi4fc ,oklahoma #gh #ea #cd4fb ,oregon #cd #de ,increase ,pennsylvania-- ,bituminous #aeb #aja #cc4ee ,anthracite #gj #ee #ba4dc ,tennessee #acj #hd #ce4ch ,texas #fi #fb #aj4ad ,utah #hh #fi #ba4ei ,virginia #aeg #ajc #cd4ci ,washington #ed #ej #g4da ,west ,virginia #afg #ajf #cf4ec ,wyoming #hg #fg #bb4ii ,in this connection it should be noted that the ,united ,states ,department of ,labor reports an increase1 between #ahig and #aijg1 in the price of anthracite of #bi4bc per cent41 and in bituminous coal from the ,georges ,creek region of #he4ed per cent4 ,,cost ,,of ,,railway ,,supplies4 ,bulletin ,no4 #ge1 of the ,united ,states ,bureau of ,labor1 shows average prices for the following articles used by railways1 or1 as raw materials1 for the manufacture of railway supplies3 ,price4 ------------------------------- ,articles4 ,increase1 ,unit4 #ahig4 #aijg4 per cent4 ,axes1 ,m4 ,c4 ,o4 ,yankee ,each 4#ci 4#fh #gd4cf ,coke1 ,connellsville1 furnace ,ton #a4fb #b4hc #gd4fi ,bar iron1 best refined1 from mill ,pound 4#jaa 4#jage #ei4ji ,barbed wire1 galvanized ,cwt4 #a4hj #b4fc #df4aa ,copper wire1 bare ,pound 4#acge 4#bdjb #gd4fi ,doorknobs1 steel1 bronze1 plated ,pair 4#aff 4#dej #aga4jh ,files1 #h-;inch ,dozen 4#ha #a4jj #bc4df ,hammers1 ,magdole1 ,no4 #a ,each 4#ch 4#dg #bc4fh ,lead pipe ,cwt4 #d4cb #f4ga #ee4cb ,locks1 common1 mortise ,each 4#jhcc 4#bj #adj4aj ,nails1 cut1 #h-penny1 fence and common ,cwt4 #a4cc #b4af #fb4da ,nails1 wire1 #h-penny1 fence and common ,cwt4 #a4di #b4ab #db4bh ,pig iron1 ,bessemer ,ton #aj4ac #bb4hd #abe4dg ,pig iron1 foundry ,no4 #a ,ton #ab4aj #bc4ij #ig4eb ,pig iron1 foundry ,no4 #b ,ton #aj4aj #bc4hg #acf4cd ,pig iron1 gray1 forge1 southern1 coke ,ton #h4hj #bj4ii #ach4eb ,steel billets ,ton #ae4jh #bi4be #ic4ig ,steel rails ,ton #ah4ge #bh4jj #di4cc ,steel sheets1 black1 ,no4 #bg ,pound #j4jai #j4jbe #ca4eh ,tin1 pig ,pound 4#aceh 4#chge #ahe4ce ,tin1 plates1 domestic1 ,bessemer1 coke ,cwt4 #c4ah #d4ji #bh4fb ,zinc1 sheet ,cwt4 #d4id #g4di #ea4fb ,brick1 common domestic ,m #d4id #f4af #bd4gj ,cement1 ,rosendale ,bbl4 4#ge 4#ie #bf4fg ,doors1 pine ,each 4#ha #a4hh #acb4aj ,lumber1 hemlock ,m feet #aa4jj #bb4be #ajb4bg ,lime1 common ,bbl4 4#gb 4#ie #ca4id ,linseed oil1 raw ,gal4 4#cc 4#dc #cj4cj ,lumber1 maple1 hard ,m feet #bf4ej #cb4be #ba4gj ,lumber1 oak1 white1 plain ,m feet #cf4be #ee4ba #eb4cj ,lumber1 oak1 white1 quartered ,m feet #ec4hc #hj4jj #dh4fb ,lumber1 pine1 yellow ,m feet #af4dd #cj4ej #he4eb ,lumber1 poplar ,m feet #cj4fg #eh4jh #hi4cg ,shingles1 cypress ,m #b4ce #d4bc #hj4jj ,lumber1 spruce ,m feet #ad4jj #bd4jj #ga4dc ,window glass1 ,american1 single1 firsts1 #f by #h to #aj by #ae inch #ej sq4 ft4 #b4bj #b4ha #bg4gc ,window glass1 ,american1 single1 thirds1 #f by #h to #aj by #ae inch #ej sq4 ft4 #a4if #b4bd #ad4bi ,the bulletin indicates that putty1 ,portland cement and ,ames shovels are about the only exceptions to the general rule of greatly increased prices of railway supplies4 ,it is plain that as to all of the important supplies and materials included in the foregoing list the #aje4jj of gross receipts from the typical shipment heretofore used as an example would show the same1 or a greater1 loss in purchasing power which has characterized the comparisons previously shown4 ,evidence from official sources thus shows that in purchasing the same quantities either of labor or of supplies the railways have now to expend much larger sums than they did ten years ago4 ,the official statistics already quoted are fully supported and their pertinence to the problem in hand is fully proven by the accounting records of the purchasing departments of the several railways4 ,the ,trunk ,line ,association has obtained detailed information concerning purchases in #ahig and #aijg1 by important railways represented in its organization1 and this information has been carefully and accurately tabulated4 ,a table showing the largely increased cost of articles which this tabulation reveals has been made ,appendix ,b and will be found at pages #aid to #aih of this pamphlet4 ,an examination of this appendix and1 particularly of the classes of labor and of the articles shown to have greatly increased in cost1 discloses the unquestionable fact that the increased cost pervades the whole aggregate of operating expenses and that there is no considerable exception to the rule that every item of operating expenditure is now very much greater than it was in #ahig4 ,,other ,,costs ,,of ,,supplying ,,railway ,,services4 ,the cost of railway transportation which must be borne out of the receipts for railway services includes operating expenses1 interest on capital and taxes4 ,before discussing the increase in the rate of interest demanded it is worth while to note that the exactions made by the taxing power upon the railways have also notably increased4 ,the sums annually paid as taxes on railway property since #ahig follow3 ,taxes paid4 ,miles operated ---------------------- and included ,average in reports ,amount4 per mile of taxes paid4 operated4 #ahig #ahc1bhd4be #dc1acg1hdd #bce4cf #ahih #ahd1fdh4bf #dc1hbh1bbd #bcg4cf #ahii #ahg1ecd4fh #df1ccg1fcb #bdg4ji #aijj #aib1eef4jc #dh1ccb1bgc #bea4jj #aija #aie1efa4ib #ej1idd1cgb #bfj4ej #aijb #bjj1aed4ef #ed1dfe1dcg #bgb4ab #aijc #bje1cac4ed #eg1hdi1efi #bha4gf #aijd #bab1bdc4bj #fa1fif1ced #bij4fi #aije #baf1igc4fa #fc1dgd1fgi #bib4ee #aijf #bbb1cdj4cj #gd1ghe1fae #ccf4cf #aijg #bbg1ded4hc #hj1cab1cge #cec4ji ---------- ------------ ------ 99 99 #fbe1afd1cgd 99 99 ,thus in the years from #ahig to #aijg railway taxation per mile of line has increased from #bce4cf to #cec4ji1 or no less than #ej4jb per cent4 ,,cost ,,of ,,regulation4 ,closely akin to taxation of railway property are the additional expenses which have to be met out of railway revenues on account of public regulation4 ,the increased and1 in many cases1 minute regulation imposed by the ,hepburn law of #aijf and the rules and requirements established thereunder by the ,interstate ,commerce ,commission and by various ,state enactments have caused the railways many new and augmented expenditures4 ,among the many purposes for which these expenditures have become necessary are those enumerated below3 #a4 ,preparation1 publication1 filing1 posting1 etc41 of rate schedules4 #b4 ,compilation and tabulation of statistics1 preparation and filing of annual reports of operation and finance4 #c4 ,litigation under regulatory statutes including cases before ,national and ,state commissions and including legal and incidental expenses thereof4 #d4 ,appliances and special equipment required by safety appliance laws4 #e4 ,additional employees and additional wages paid on account of laws regulating the hours of labor4 ,besides these and other positive additions to the expenses of operation there have been considerable reductions in revenue brought about by the various regulative statutes4 ,thus there have been reductions in revenue caused by the following3 #a4 ,orders1 or suggestions having practically the force of orders1 requiring changes in the classification of freight4 #b4 ,orders1 or suggestions having practically the force of orders1 requiring reductions in rates4 #c4 ,statutory reduction in the rates of compensation for carrying the mail4 #d4 ,reduction of compensation for carrying the mail made by executive order4 ,a painstaking effort to secure accurate statistics concerning recent increases in these expenditures and losses has been made and data for that purpose have been supplied by many of the railways operating east of the ,mississippi river4 ,these data are necessarily incomplete and fragmentary1 the accounts of many of the companies not being kept in such form as fully to disclose the items desired4 ,in few cases were the data which could be obtained for any line complete--some companies were able to report particular items while other companies could not give these1 but could supply others4 ,generally speaking1 it should be realized that the tabulation of these reports makes a showing which is incomplete mainly in the form of omissions4 ,a conservative computation discloses that the costs due to increases in expenses or reductions in revenue imposed by statutes or by ,commissions acting under ,federal and ,state regulatory laws costs the railways of the ,united ,states approximately #bjj1jjj1jjj in two years4 ,that this is not an exaggerated estimate will be appreciated by reference to the principal general items of expenditures as enumerated on the preceding pages4 ,until these items shall have been assigned a proper classification in the accounts of the railroads the accurate results may not be ascertained1 but it will at once occur to those in any measure informed that there has been an enormous increase of work and expense placed upon the carriers to conform to the innumerable requirements of ,state and ,federal laws and the rulings of the ,commissions thereunder1 and that this burden has extended to all departments of the carriers4 ,litigation and miscellaneous expenses appear as a large part of these new costs1 and in addition the carriers' revenues have been greatly depleted either directly by the laws1 orders of ,commissions or suggestions having practically the force of orders1 resulting in reductions of freight and passenger charges4 ,,cost ,,of ,,obtaining ,,new ,,capital4 ,in the matter of interest on the capital employed the railways have apparently enjoyed an advantage which would seem to offset the natural tendency of interest rates to rise in response to the stimulus of augmented cost1 in dollars and cents1 of the commodities entering into the budget of expenditures of the average recipient of interest--that is to say1 the advantage growing out of the fact that a large proportion of railway capital is secured under long-time contracts and that many of the contracts now in force unquestionably run back to a time before the extensive depreciation of the ,american dollar began4 ,this advantage is a real one1 but its extent is easily exaggerated4 ,for the purpose of throwing light upon the effect upon the cost of railway transportation of the rise in interest rates which has characterized recent years an analytical study of railway indebtedness 7including guaranteed dividends7 amounting1 in the aggregate1 to #i1dii1jii1jfe has been made4 ,this sum represents indebtedness now outstanding and includes some duplication owing to the fact that certain of the securities represented in the aggregate are themselves based upon other securities deposited as collateral or held in the treasuries of the corporations making the secondary issues2 duplication which could not be eliminated without adding vastly to the difficulty of the inquiry with no corresponding gain in the accuracy of the result4 ,these data are also subject to the qualification necessarily due to the fact that all of the issues included were not sold at par4 ,in some cases a small premium was doubtless obtained and in other cases a slight discount was required1 but1 nevertheless1 it is believed that the data fairly indicate the general change in interest rates on capital loaned to railways4 ,of the total outstanding indebtedness of #i1dii1jii1jfe the portion incurred during the years #ahig to #aijh1 inclusive1 amounts to #e1dff1cdj1beb1 or #eg4ee per cent4 ,the following table shows the amounts incurred at the different rates during each of the years named3 ,rate of ,interest and ,amount ,incurred ,during ,year and ,outstanding4 ,year4 #f per cent4 #f per cent4 #e per cent4 #d per cent4 #ahig -- #aa1jci1jjj #db1abf1jjj #g1gjj1jjj #ahih -- #dhg1jjj #g1dhf1gjj #bjg1jjj #ahii -- #ac1jid1jjj #bi1aig1jjj #ae1hif1jjj #aijj -- #a1acc1jjj #ae1ibf1cea #g1igi1jjj #aija -- #a1ggg1gge #ch1hdj1jjj #cg1hde1cgh #aijb -- -- #dd1idi1ejh #ai1idi1fjj #aijc -- #a1eeb1jjj #ec1eib1jcj #bb1jib1ejj #aijd -- #bef1jjj #fa1aia1efa #cj1bda1gbi #aije -- #a1haj1jjj #ff1cdf1jjj #gc1iif1ajj #aijf #cej1jjj #a1ahj1egi #ada1ghf1eaa #dj1ibb1aha #aijg -- #cj1cbe1jjj #bhi1deh1hib #agg1hje1ifb #aijh7;a7 -- #aad1ejd1igj #dg1edf1che #b1hej1jjj -------- ------------ ------------ ------------ ,total #cej1jjj #agg1aei1cbd #hch1ddf1ich #dcg1dhe1dej ,rate of ,interest and ,amount ,incurred ,during ,year and ,outstanding4 ,year4 #d per cent4 #c per cent4 #c per cent4 #c per cent4 #ahig #bje1hhb1ejj -- #bba1ffc1jjj #d1iih1bge #ahih #ahg1hih1jjj -- #aid1gbd1cbe -- #ahii #bgg1ghd1djj -- #abf1gcd1jjj #dc1bca1bgb #aijj #hc1gce1ejj -- #fb1egg1jjj #dc1fhi1jjj #aija #chb1aca1bej #ccj1jjj #ea1fce1jjj -- #aijb #cdh1jch1jej -- #eh1fda1ejj -- #aijc #cag1idh1jjj -- #bb1cjh1jjj #i1hff1dce #aijd #aic1dii1ejj -- #ci1hij1jjj -- #aije #cfd1ejg1djd -- #aab1fde1aee #af1jjj1jjj #aijf #bea1jcg1fha #dh1bfb1edh #ca1jih1fgj -- #aijg #baj1cii1jge -- #dbc1jjj -- #aijh7;a7 #aja1chj1jjj -- -- -- ------------- ----------- ------------- ------------ ,total #b1ibd1aha1cfj #dh1eib1edh #ibb1cci1fej #aag1ghd1ihb 7a7 ,january to ,july1 only4 ,even a cursory examination of the foregoing statement shows that the average rate of interest demanded by those who supply railway capital has greatly increased4 ,in #ahig and #ahih the largest aggregate of new indebtedness was incurred at the rate of three and one-half per cent4 per annum2 in #ahii1 #aijj1 #aijb1 #aijc1 #aijd1 #aije and #aijf the preponderating portion was at four per cent42 in #aijg the largest aggregate was at five per cent41 while in the months of #aijh for which data are available the greater portion was obtained at six per cent4 ,loans at three and three and one-half per cent41 which supplied a considerable aggregate during all of the years to and including #aijf and particularly in the earlier years of the period1 had substantially disappeared before #aijg and no funds were procured at less than four per cent4 during the portion of #aijh which is included4 ,the increased volume of loans at five and six per cent4 is equally marked4 ,the following table makes this analysis clearer by showing the total borrowings of each year and the percentage at each rate3 ,rate of ,interest and ,proportion of ,total ,indebtedness ,incurred ,during ,year and ,outstanding4 ,year4 ,borrowed4 ---------------------------------------- ------------- #f #f #e #d #d #c #c #c per per per per per per per per cent4 cent4 cent4 cent4 cent4 cent4 cent4 cent4 ---------------------------------------- -------------------------------- #ahig #dic1djh1gge -- #b4bd #h4ed #a4ef #da4gc -- #dd4ib #a4ja #ahih #cij1hjc1jbe -- 4#ab #a4ib 4#je #dh4jh -- #di4hc -- #ahii #eje1icf1fgb -- #b4ei #e4gg #c4ad #ed4ia -- #be4je #h4ed #aijj #bae1jci1hea -- 4#ec #g4dj #c4ga #ch4id -- #bi4aj #bj4cb #aija #eab1eei1djc -- 4#ce #g4eh #g4ch #gd4ee #j4jg #aj4jg -- #aijb #dga1egh1feh -- -- #i4ec #d4bc #gc4hj -- #ab4dd -- #aijc #dbg1ceh1ife -- 4#cf #ab4ed #e4ag #gd4dj -- #e4bb #b4ca #aijd #cbe1jgh1gij -- 4#jh #ah4hb #i4cj #ei4ec -- #ab4bg -- #aije #fce1cjd1fei -- 4#bh #aj4dd #aa4fe #eg4ch -- #ag4gc #b4eb #aijf #ead1fch1agj #j4jg 4#bc #bg4ee #g4ie #dh4gh #i4ch #f4jd -- #aijg #gjh1cea1ibi -- #d4bh #dj4hf #be4aj #bi4gj -- 4#jf -- 7a7#aijh #bff1bha1cee -- #dc4jj #ag4hf #a4jg #ch4jg -- -- -- ---------------------------------------- -------------------------------- ,total #e1dff1cdj1beb #j4ja #c4be #ae4cd #h4jj #ec4di #j4hi #af4hg #b4ae ---------------------------------------- -------------------------------- 7a7 ,january to ,july1 only4 ,the foregoing table shows that while1 in #ahig1 the railways borrowed #hg4ff per cent4 and in #ahih1 #ig4ia per cent4 of the new capital obtained in the form of loans at four per cent4 or better1 they were compelled1 in #aijg1 to promise more than four per cent4 on #gj4bd per cent4 and in the first six months of #aijh to promise six per cent4 on #dc4jj of their borrowings4 ,the significance of these figures is made still more apparent by the following table1 which shows opposite the aggregate borrowings of each year1 the interest charges thereon and the average rate upon the portion of the capital which it represents3 ,year4 ,aggregate interest ,av4 rate ,borrowed4 charges4 interest4 #ahig #dic1djh1gge #ai1beh1eic #c4ij #ahih #cij1hjc1jbe #ad1gdd1ada #c4gg #ahii #eje1icf1fgb #ai1hjd1had #c4ia #aijj #bae1jci1hea #h1jgc1fch #c4ge #aija #eab1eei1djc #bj1hef1eei #d4jg #aijb #dga1egh1feh #ai1aai1ahb #d4je #aijc #dbg1ceh1ife #ag1efa1egg #d4aa #aijd #cbe1jgh1gij #ac1ega1ide #d4ag #aije #fce1cjd1fei #be1geh1fja #d4je #aijf #ead1fch1agj #ba1ifd1bae #d4bg #aijg #gjh1cea1ibi #cb1gbb1jha #d4fb #aijh7;a7 #bff1bha1cee #ac1dca1jfg #e4jd -------------- ------------ ---- ,total #e1dff1cdj1beb #bbf1hhf1dac #d4ae 7a7 ,january to ,july1 only4 ,the foregoing shows an increase1 in the average interest rate demanded upon new loans to railway corporations1 from #c4ij per cent4 in #ahig to #d4fb in #aijg and #e4jd in #aijh4 ,the increase in the rate from #ahig to #aijg was equal to #ah4df per cent4 and from #ahig to #aijh it was #bi4bc per cent4 ,in other words1 one dollar would pay interest on as much of the new capital secured by loans in #ahig as #a4bi would of the loans of #aijh4 ,the gross revenue of #aje4jj obtained in both years from the typical shipment of fourth class freight between ,chicago and ,new ,york1 at the unchanged rate applicable to such a shipment in both years1 would pay interest on #b1fib4ca secured in the earlier year and on only #b1jhc4cc secured in the later year4 ,the loss in power to purchase loaned capital therefore amounts to #bb4fb per cent4 ,in order fully to appreciate the importance of this rise in the cost of capital it is necessary to realize that very great sums of new capital are annually required for the necessary augmentation and improvement of railway facilities4 ,this is made evident by the total yearly borrowings as shown in the foregoing tables1 but it should be borne in mind that further sums1 certainly not less extensive in the aggregate1 have been raised through issues of stock1 which promise no certain rate of interest1 although these sums could not have been obtained unless the subscribers had considered it probable that they would1 in the long run1 receive returns in dividends at least equal to the going rate of interest4 ,it is interesting to note that the aggregate of new capital secured by loans in each year has very largely exceeded the total interest payments to all capital obtained by borrowing4 ,this is shown by the following table1 the data in which1 except those as to the sums obtained by loans1 are from the reports of the ,interstate ,commerce ,commission3 ,per ct4 int4 ,new capital ,interest on paym'ts new ,year47a7 borrowed4 funded debt4 borrow'gs4 #ahih #cij1hjc1jbe #bcg1egh1gjf #fj4gi #ahii #bae1jci1hea #bda1feg1ece #dg4gf #aijj #bae1jci1hea #bdb1iih1bhe #aac4jj #aija #eab1eei1djc #beb1eid1hjh #di4bh #aijb #dga1egh1feh #bfj1bie1hdg #ee4bj #aijc #dbg1ceh1ife #bfh1hcj1efd #fb4ij #aijd #cbe1jgh1gij #bhb1aah1dch #hf4gh #aije #fce1cjd1fei #bid1hjc1hhd #df4dj #aijf #ead1fch1agj #cje1ccg1ged #ei4cc #aijg #gjh1cea1ibi #cbc1gcc1gea #de4gj -------------- -------------- ----- ,total #d1gjf1fej1abb #b1gji1idi1egb #eg4eh 7a7 ,accurate data for payments to capital in #ahig are not available4 ,,from ,,the ,,viewpoint ,,of ,,the ,,purchaser ,,of ,,the ,,services4 ,so far the extent and significance of the changes in the value1 or purchasing power1 of money have been considered from the point of view of those who produce and sell railway transportation4 ,but equally striking changes will appear and similar conclusions are inevitable when recent history is reviewed in the aspect which it presents to those whose earnings are devoted1 in part1 to the purchase of the services which the railways supply4 ,for the important consideration to the wage-earner who wishes to travel by rail or who buys commodities that have been so carried1 or to the producer whose products must go to market over railway routes1 is not1 how much money must be paid for the railway services1 but1 rather1 how much labor must be expended1 or what quantity of his goods must be produced1 in order to obtain that sum of money4 ,if the earnings of a particular wage-earner have increased from fifty to seventy-two cents per hour1 a railway service is cheaper1 to him1 if it costs twelve cents than it was at ten cents when his earnings were on the fifty-cent basis1 for he now procures with the fruit of ten minutes' toil what formerly cost the result of twelve minutes' labor4 ,in ,bulletin ,no4 #gg1 just issued by the ,united ,states ,bureau of ,labor1 the official statistician presents data showing the relative wages per hour of many different classes of wage-earners1 not including railway employees1 in #ahig and #aijg4 ,while these data show that wages have almost uniformly advanced 7there are ten somewhat questionable exceptions among the #cdb classes7 the data supplied by the ,interstate ,commerce ,commission show that during the same period average railway freight rates have declined from #g4ih mills to #g4ei mills per ton per mile1 or #d4hi per cent4 ,a table presenting and based upon these official statistics and showing the relative wages per hour of the various classes of labor1 in #ahig and #aijg1 the percentage increase in wages rates per hour and the increased command over railway freight services which these wage-earners have obtained through the combined effect of higher wages and lower ton-mile rates is given in ,appendix ,c,f4 ,in studying the data presented in this appendix it should be borne in mind that the wages are relative and not absolute4 ,they mean1 for example1 that the average male blacksmith in the agricultural implement industry was paid1 in #aijg1 #a4be for the same quality and period of labor for which he was paid a little less than ninety-six cents1 in #ahig4 ,this increase amounted to #cj4eh per cent4 of the wages rate of #ahig1 and1 combined with a decreased cost of railway freight service of #d4hi per cent41 which made #ie4aa cents go as far in purchasing the latter in #aijg as one dollar would go in #ahig1 gave him #cg4bi per cent4 greater command over railway freight services4 ,in an earlier bulletin1 ,no4 #ge1 published during the current year1 the ,bureau of ,labor continued its index numbers1 which show1 in similar manner1 the average relative wholesale prices of the commodities entering into the ordinary budget of family expenditures4 ,for the purpose of presenting the changes in these prices on a uniform basis the ,bureau represents the averages for the ten years from #ahij to #ahii1 inclusive1 as one hundred per cent4 and reduces the averages for each year to percentages of the averages for the basic period4 ,the following table presents these figures for the year #ahig to #aijg1 inclusive3 ,relative ,wholesale ,prices4 ,cloths ,fuel ,metals ,farm and and and ,year4 ,products4 ,food4 ,clothing4 ,lighting4 ,implements4 #ahij-ahii #ajj4jj #ajj4jj #ajj4jj #ajj4jj #ajj4jj #ahig #he4b #hg4g #ia4a #hf4d #hf4f #ahih #if4a #id4d #ic4d #ie4d #hf4d #ahii #ajj4j #ih4c #if4g #aje4j #aad4g #aijj #aji4e #ajd4b #ajf4h #abj4i #abj4e #aija #aaf4i #aje4i #aja4j #aai4e #aaa4i #aijb #acj4e #aaa4c #ajb4j #acd4c #aag4b #aijc #aah4h #ajg4a #ajf4f #adi4c #aag4f #aijd #abf4b #ajg4b #aji4h #acb4f #aji4f #aije #abd4b #ajh4g #aab4j #abh4h #abb4e #aijf #abc4f #aab4f #abj4j #aca4i #ace4b #aijg #acg4a #aag4h #abf4g #ace4j #adc4d ,lumber and ,house ,building ,drugs and ,furnishing ,miscell- ,all ,com- ,year ,materials4 ,chemicals4 ,goods4 aneous4 modities4 #ahij-ahii #ajj4jj #ajj4jj #ajj4jj #ajj4jj #ajj4jj #ahig #id4d #id4d #hi4h #ib4a #hi4g #ahih #ie4h #ajf4f #ib4j #ib4d #ic4d #ahii #aje4h #aaa4c #ie4a #ig4g #aja4g #aijj #aae4g #aae4g #ajf4a #aji4h #aaj4e #aija #aaf4g #aae4b #aaj4i #ajg4d #ajh4e #aijb #aah4h #aad4b #aab4b #aad4a #aab4i #aijc #aba4d #aab4f #aac4j #aac4f #aac4f #aijd #abb4g #aaj4j #aaa4g #aaa4g #aac4j #aije #abg4g #aji4a #aji4a #aab4h #aae4i #aijf #adj4a #aja4b #aaa4j #aba4a #abb4e #aijg #adf4i #aji4f #aah4e #abg4a #abi4e ,from the data in the foregoing table1 which show advances averaging nearly forty-five per cent41 the following table1 indicating the present purchasing power over railway freight service of each class of articles1 in a manner similar to that adopted to measure the increased power of labor to buy railway freight transportation1 has been derived3 ,increased ,relative prices4 power to pur- ---------------------- chase railway ,commodities4 ,increase freight services #ahig4 #aijg4 per cent4 per cent4 ,farm products #he4b #acg4a #fj4ib #fi4ai ,food #hg4g #aag4h #cd4cb #da4bb ,cloths and clothing #ia4a #abf4g #ci4jh #df4bc ,fuel and lighting #if4d #ace4j #dj4jd #dg4bd ,metals and implements #hf4f #adc4d #fe4ei #gd4aj ,lumber and building materials #ij4d #adf4i #fb4ej #gj4he ,drugs and chemicals #id4d #aji4f #af4aj #bb4jg ,house furnishing goods #hi4h #aah4e #ca4if #ch4gd ,miscellaneous #ib4a #abg4a #ch4jj #de4jj ,all commodities #hi4g #abi4e #dd4cg #ea4gi ,,agricultural ,,products ,,and ,,freight ,,rates4 ,the statistician to the ,united ,states ,department of ,agriculture obtains annually a very large number of reports from farmers as to prices obtained for their products and these are carefully tabulated4 ,the results show the average prices1 at the farms1 of the principal agricultural products4 ,the following table shows the increased prices obtained for such products1 and the increased power which these producers enjoy1 per unit of their products1 to purchase railway freight services3 ,increased power to purchase ,price4 railway ------------------------- freight ,product4 ,value of ,increase service crop of #aijg4 ,unit4 #ahig4 #aijg4 per cent4 per cent4 ,corn #a1ccf1ija1jjj ,bushel #j4bfc #j4eaf #if4bj #ajf4bh ,wheat #eed1dcg1jjj 4#hjh 4#hgd #h4ag #ac4gc ,oats #ccd1efh1jjj 4#bab 4#ddc #ajh4if #aai4gj ,barley #ajb1bij1jjj 4#cgg 4#fff #gf4ff #he4gd ,rye #bc1jfh1jjj 4#ddg 4#gca #fc4ec #ga4id ,buckwheat #i1ige1jjj 4#dba 4#fih #fe4hj #gd4cb ,potatoes #ahd1ahd1jjj 4#edg 4#fah #ab4ih #ah4gi ,hay #ggc1ejg1jjj ,ton #f4fb #aa4fh #gf4dd #he4ea ,cotton #fac1fcj1dcf ,pound 4#jff 4#ajd #eg4eh #fe4fh -------------- ,total #c1icb1efj1dcf ,detailed tables presenting the data from which the foregoing averages for the whole country have been derived and showing prices and purchasing power over freight service are given in ,appendix ,d,g4 ,these tables disclose the uniformity1 throughout the ,united ,states1 of the advance in agricultural prices and of the augmented command of agricultural producers over railway freight service4 ,,farm ,,animals ,,and ,,freight ,,rates4 ,the ,department of ,agriculture of the ,united ,states also collects data concerning the value of farm animals and annually publishes the average values reported for the first day of each successive year4 ,all classes of farm animals have increased in value since #ahig and each represents a great command over railway freight services1 for the sum representing the average value of each animal will now buy much more freight transportation than it would in #ahig4 ,this is shown by the following table3 ,increased power to purchase ,average price1 each4 railway -------------------------------- freight ,january #a1 ,january #a1 ,january #a1 ,increase1 service1 #aijh4 #ahig4 #aijh4 per cent4 per cent4 ,horses #a1hfg1ecj1jjj #ca4ea #ic4da #aif4de #baa4fi ,mules #daf1ici1jjj #da4ff #ajg4gf #aeh4fg #aga4ig ,milch cows #fej1jeg1jjj #bc4af #cj4fg #cb4dc #ci4bd ,cattle1 except milch cows #hde1ich1jjj #af4fe #af4hi #a4dd #f4fe ,sheep #baa1gcf1jjj #a4hb #c4hh #aac4ai #abd4ae ,swine #cci1jcj1jjj #d4aj #f4je #dg4ef #ee4ad -------------- ----- ------ ------ ------ ,total #d1cca1bcj1jjj -- -- -- -- ,in considering the foregoing the fact that the prices relate solely to animals on farms should be borne in mind4 ,they are doubtless somewhat lower than for animals elsewhere located1 but prices of the latter have probably moved in the same direction and in about the same extent4,h ,,railway ,,rates ,,in #ahig ,,and ,,at ,,present ,,measured ,,in ,,money4 ,throughout the foregoing discussion reference has frequently been made to what has been assumed to be a typical shipment1 that is1 a fifteen-ton carload of fourth class freight transported between ,chicago and ,new ,york4 ,the typical service rendered in moving this shipment would have brought the railways gross receipts of #aje4jj1 in #ahig or in any of the intermediate years1 and would bring the same amount now4 ,the period in question1 however1 has witnessed many thousands of changes in railway rates on particular commodities and between particular points1 and1 confining the discussion for the present to the mere expression of rates in terms of money1 it is necessary to inquire whether the general level of all rates has been raised or lowered and how far the change1 if any is discovered1 has gone in either direction4 ,now1 it is manifestly impossible to correlate all rates in a single tabulation1 and1 giving to each its proper weight in the determination of a final average1 thus establish definitely and with complete precision the relation between the money rates of #ahig and those at the present time4 ,the number of different articles shipped and the great number of different points at which each article may enter into the aggregate of traffic movement or to which it may be destined1 as well as the elusive character of the factors which would indicate the relative weight properly to be allowed to each separate rate1 wholly preclude the adoption of such a method4 ,fortunately1 however1 ,american railway accountants long ago adopted a measure of traffic movement1 which was later officially sanctioned by its adoption for the same purpose by the ,interstate ,commerce ,commission1 and which1 when compared with the gross receipts from freight service1 results in an average that throws great light upon the movement or absence of movement in the general level of the rates charged4 ,when the weight of any shipment1 expressed in tons1 is multiplied by the distance which it is carried1 expressed in miles1 the resulting product gives a measure of the service performed1 in units which are designated as ton-miles4 ,when the ton-miles 7or ton-mileage7 of all shipments are aggregated the total represents the sum of all services4 ,the result of dividing the revenue from a particular shipment by its ton-mileage is the average rate per ton per mile for that shipment and if the sum representing the aggregate gross receipts from all railway freight services is divided by the aggregate ton-mileage of those services the quotient obtained is the average ton-mile rate for all services4 ,during the period from #ahig to #aijg these data have been compiled annually by the ,interstate ,commerce ,commission under the direction of ,professor ,henry ,c4 ,adams1 its statistician4 ,the average rates thus established are given both for the ,united ,states as a whole and for each of ten districts or groups4 ,the following table shows these averages as they are given in the successive annual statistical reports of the ,commission3 ,,table ,,legend ,,region3 ,a ,maine1 ,new ,hampshire1 ,vermont1 ,massachusetts1 ,rhode ,island and ,connecticut4 ,b ,new ,jersey1 ,delaware1 ,maryland1 ,new ,york1 east of ,buffalo1 ,pennsylvania1 east of ,pittsburgh1 ,west ,virginia1 ,north of ,parkersburg4 ,c ,new ,york1 west of ,buffalo1 ,pennsylvania1 west of ,pittsburgh1 ,michigan1 lower ,peninsula1 ,ohio1 ,indiana4 ,d ,west ,virginia1 south of ,parkersburg1 ,virginia1 ,north ,carolina and ,south ,carolina4 ,e ,kentucky1 ,tennessee1 ,georgia1 ,florida1 ,alabama1 ,mississippi1 ,louisiana1 east of ,mississippi ,river4 ,f ,illinois1 ,wisconsin1 ,minnesota1 ,iowa1 ,missouri1 north of ,st4 ,louis and ,kansas ,city1 ,south and ,north ,dakota1 east of ,missouri river1 ,michigan1 upper ,peninsula4 ,g ,nebraska1 ,wyoming1 ,montana1 ,north and ,south ,dakota1 east of ,missouri ,river1 ,colorado1 north of ,denver4 ,h ,arkansas1 ,indian ,territory1 ,oklahoma ,territory1 ,kansas1 ,colorado1 south of ,denver1 ,texas1 ,panhandle1 ,new ,mexico1 north of ,santa ,fe4 ,i ,texas1 except ,panhandle1 ,louisiana1 west of ,mississippi ,river1 ,new ,mexico1 north of ,santa ,fe4 ,j ,washington1 ,oregon1 ,idaho1 ,california1 ,arizona1 ,nevada1 ,utah1 ,new ,mexico1 western portion4 ,year and average rate in mills per ton per mile4 ---------------------------------------- ------- ,group4 ,region4 #ahig #ahih #ahii #aijj #aija #aijb ---------------------------------------- ---------------------- ,i4 ,a #ab4jb #aa4gf #aa4bc #aa4eb #aa4ea #aa4gb ,,ii4 ,b #f4ge #f4ag #e4hb #f4ac #f4df #f4fd ,,iii4 ,c #f4je #e4gh #e4bi #e4df #e4fh #e4gf ,,iv4 ,d #f4dh #e4ib #e4id #e4ie #f4da #f4ej ,v4 ,e #h4fd #h4ce #h4jg #h4jh #h4jb #h4af ,,vi4 ,f #h4ee #h4bf #h4ba #h4jf #g4hi #g4hg ,,vii4 ,g #aa4dh #aa4eg #aa4ja #aj4fd #aj4dc #i4id ,,viii4 ,h #aj4gi #i4fa #i4fh #i4fd #i4ga #i4gh ,,ix4 ,i #aj4dj #aj4db #aj4fe #i4ch #aj4ah #i4hd ,x4 ,j #ab4ge #aa4df #aa4cf #aj4fg #aj4ee #aj4cg ---------------------------------------- ---------------------- ,united ,states #g4ih #g4ec #g4bd #g4bi #g4ej #g4eg ---------------------------------------- ---------------------- table continued ,year and average rate in mills per ton per mile4 ---------------------------------------- -------- ,group4 ,region4 #aijc #aijd #aije #aijf #aijg #aijh7;a7 ---------------------------------------- ----------------------- ,i4 ,a #aa4fg #aa4if #aa4gi #aa4gb #aa4de #aa4aj ,,ii4 ,b #f4fg #f4hf #f4fe #f4ej #f4ee #f4dc ,,iii4 ,c #f4jg #f4bj #f4jg #e4id #e4ih #e4id ,,iv4 ,d #g4ad #g4af #f4ia #f4ij #g4jc #f4if ,v4 ,e #h4bg #h4ea #h4ci #h4ac #h4bg #h4be ,,vi4 ,f #g4gd #g4gi #g4ff #g4de #g4dc #g4ce ,,vii4 ,g #i4hj #i4fd #i4jj #h4id #i4cc #i4db ,,viii4 ,h #i4fb #i4ih #i4hh #i4dg #i4ff #i4ec ,,ix4 ,i #i4gd #aj4jj #aj4if #aj4ji #aj4ea #aj4jb ,x4 ,j #aj4je #aj4cf #aj4ih #aa4jc #aa4fc #ab4jd ---------------------------------------- ----------------------- ,united ,states #g4fc #g4hj #g4ff #g4dh #g4ei #g4e ---------------------------------------- ----------------------- 7a7 ,average for #aijh added from #bast annual ,report of ,prof4 ,adams4 ,s4 ,t4 ,the foregoing shows that the average rates per ton per mile1 expressed in money1 were lower in every group but one1 as well as in the whole country1 in #aijg than they were in #ahig4 ,the average for the whole country was lower in #aijg than in any other year shown except the years #ahih to #aijb1 inclusive1 and for three of those years the difference was less than one-tenth of one mill4 ,the decrease in the general average from #ahig to #aijg was #d4hi per cent4 and the increase from #ahii1 the year of the lowest average1 was #d4hc per cent4 ,so far as the quality of the ton-mile unit is affected by changes in the geographical distribution of traffic the tendency between #ahig and #aijg was toward a higher quality1 for traffic movement grew more rapidly in the regions where rates are normally higher than it did in the regions of lower rates4 ,in the following statement the groups used by the ,interstate ,commerce ,commission are arranged with the group in which ton-mileage increased most rapidly from #ahig to #aijg at the top1 the group that increased next most rapidly in the second line1 and so on to the group that increased least rapidly at the bottom3 ,average rate per ton ,tons of freight carried one mile4 ,increase1 per mile in mills4 ,group4 #ahig4 #aijg4 per cent4 ,in #ahig4 ,in #aijg4 ,x #c1acc1fbc1gcd #aa1beb1dej1ddj #bei4ji #ab4ge #aa4fc ,,vii #b1fcc1hfj1ieh #i1cjj1bcd1hdi #bec4aj #aa4dh #i4cc ,,viii #f1ccc1eia1dfc #ag1djf1dcj1iga #agd4hc #aj4gi #i4ff ,,iii #ag1ehg1ccd1fji #dg1iid1iji1jjb #agb4hi #f4je #e4ih ,v #f1hjb1aai1dhi #ag1cig1cba1cfj #aee4gf #h4fd #h4bg ,,vi #ag1cic1dga1dhj #dd1cah1gcd1aee #aed4hj #h4ee #g4dc ,,ix #c1afe1ajh1efa #g1edf1fee1eee #ach4dc #aj4dj #aj4ea ,,iv #d1icf1fce1jdf #aa1dah1bdc1ada #aca4cj #f4dh #g4jc ,,ii #bi1egi1fac1eei #fc1dee1bdc1fei #aad4eb #f4ge #f4ee ,i #c1egc1ffc1cbf #f1eaa1aff1iga #hb4bj #ab4jb #aa4de -------------- --------------- ------ ----- ----- ,u4 ,s4 #ie1aci1jbb1bbe #bcf1fja1cij1ajc #adh4fi #g4ih #g4ei ,it will be noted from the foregoing that the group in which the average rates were highest in both #ahig and #aijg shows the most rapid increase in traffic movement and that1 with few exceptions1 the regions of higher rates show more rapid augmentation of ton-mileage4 ,this is exactly what might have been anticipated1 for the highest average rates are usually to be found in the regions most scantily populated and1 as these regions are filling up and are therefore those most rapidly growing in population and industry1 they naturally show the greatest relative increases in freight tonnage4 ,the only notable exception is furnished by ,new ,england1 a region of high development1 but where traffic movement is largely of a character which imposes higher average rates4 ,in the following table the traffic increase is given for the regions that had ton-mile rate averages above and below the average for the whole country1 in #ahig3 ,ton mileage4 ,increase4 ,in #ahig4 ,in #aijg4 per cent4 ,ton mile rates above the average #dc1jce1dci1jaa #aac1gcb1iid1cja #afd4bh ,ton mile rates below the average #eb1ajc1ehc1bad #abb1hfh1cie1hjb #ace4hb -------------- --------------- ------ ,total #ie1aci1jbb1bee #bcf1fja1cij1ajc #adh4fi ,the region with rates above the average in #ahig had #de4bc per cent4 of the total ton-mileage in that year1 and #dh4jg per cent4 in the year #aijg4 ,of the total increase in traffic movement #di4ih per cent4 was in this region4 ,the precise effect that these changes in the geographical distribution of ton-mileage would have had upon the average ton-mile rate for the whole country is shown by the computation set forth in the following table3 ,product of ton-mileage of ,ton mileage ,ton-mile rates of #aijg and ton-mile ,group of #aijg4 #ahig in mills4 rates of #ahig4 ,i #f1eaa1aff1iga #ab4jb #gh1bfd1bbf4ii ,,ii #fc1dee1bdc1fei #f4ge #dbh1cbb1hid4gj ,,iii #dg1iid1iji1jjb #f4je #bij1cfi1aii4df ,,iv #aa1dah1bdc1ada #f4dh #gc1iij1bae4ee ,v #ag1cig1cba1cfj #h4fd #aej1cab1hef4ee ,,vi #dd1cah1gcd1aee #h4ee #cgh1ibe1agg4jc ,,vii #i1cjj1bcd1hdi #aa4dh #ajf1gff1fif4jg ,,viii #ag1djf1dcj1iga #aj4gi #ahg1hae1cij4ah ,,ix #g1edf1fee1eee #aj4dj #gh1dhe1bag4gg ,x #aa1beb1dej1ddj #ab4ge #adc1dfh1gdc4aa --------------- ----- ----------------- ,united ,states #bcf1fja1cij1ajc -- #a1iaf1gbj1fag4da ,by dividing the aggregate of the products in the last column of the foregoing by the total ton-mileage shown in the second column1 an average is obtained which represents the ton-mile rate that would have resulted in #aijg had the traffic of each group in that year moved in precisely the same volume in which it actually moved and had the average rates in each group been exactly the same as they were in #ahig4 ,this shows that1 under the conditions assumed1 the average ton-mile rate for the whole country would have been #h4aj mills or #j4ab mill higher than in #ahig4 ,this advance of #a4ej per cent4 would have been wholly due to the more rapid growth of traffic in the regions of normally higher rates4 ,the chief significance of so small a change in so long a period is1 really1 to indicate that the ton-mile unit1 so far from being of rapidly changing character1 is actually1 at least as far as it might be assumed to be affected by changes in the location of traffic movement1 a fairly stable unit and thus an excellent measure of the rise or fall in rates4 ,whether the same conclusion is to be derived from a study of the changes in the proportion of the total movement made up of commodities of different grades and naturally taking different rates is now to be made the subject of inquiry4 ,publication of the classified statistics of tonnage necessary for such an inquiry was begun by the ,interstate ,commerce ,commission with the report for the year #ahii4 ,consequently it is not practicable to extend the inquiry to a period prior to that year4 ,the following statement shows the number of tons of freight of each of the classes of commodities named which were received by the railways for transportation in #ahii1 #aijc and #aijg and the proportion of the tonnage in each class to the total number of tons carried3 ,tons4 ,class of commodity4 #ahii4 #aijc4 #aijg4 ,products of agriculture #ej1jgc1ifc #fa1jef1bab #gg1jcj1jga ,products of animals #ac1ggd1ifd #af1hjb1hic #bj1dgc1dhf ,products of mines #bbg1dec1aed #cbi1cce1fba #dgf1hii1fch ,products of forest #dh1abb1ddg #gd1eei1ihj #aja1fag1gbd ,manufactures #ed1dae1bje #ia1ihj1ijc #acg1fba1ddc ,merchandise #ai1hdd1gce #bi1idi1jbb #cd1gah1dhg ,miscellaneous #bc1aig1aee #ce1aaf1jbg #dd1hbd1abc ----------- ----------- ----------- ,total #dda1hha1fbc #fch1hjj1feh #hic1ahd1igb table continued ,percentage of total tonnage4 ,class of commodity4 #ahii4 #aijc4 #aijg4 ,products of agriculture #aa4cc #i4ef #h4fb ,products of animals #c4ab #b4fc #b4bi ,products of mines #ea4dg #ea4ef #ec4ei ,products of forest #aj4hi #aa4fg #aa4ch ,manufactures #ac4de #ad4ci #ae4da ,merchandise #d4di #d4fi #c4hi ,miscellaneous #e4be #e4ej #e4jb ------ ------ ------ ,total #ajj4jj #ajj4jj #ajj4jj ,it should be observed that the foregoing statement represents tons received for shipment regardless of the distance carried and1 in consequence1 does not throw the light upon traffic movement that would be available if it were possible to know the ton-mileage of each class of commodities4 ,nevertheless1 the data undoubtedly convey some information as to the character of the ton-mile unit during the different years and the nature of the changes in its quality which are in progress4 ,this will be made more evident by the following table showing comparisons for the years #ahii and #aijg3 ,tons4 ,increase4 ,class of commodity4 #ahii4 #aijg4 ,amount4 ,per cent4 ,products of agriculture #ej1jgc1ifc #gg1jcj1jga #bf1ief1ajh #ec4hc ,products of animals #ac1ggd1ifd #bj1dgc1hdf #f1fih1ebb #dh4fc ,products of mines #bbg1dec1aed #dgf1hii1fch #bdi1ddf1dhd #aji4fg ,products of forest #dh1abb1ddg #aja1fag1gbd #ec1die1bgg #aaa4af ,manufactures #ei1dae1bje #acg1fba1ddc #gh1bjf1bch #aca4fc ,merchandise #ai1hdd1gce #cd1gah1dhg #ad1hgc1geb #gd4ie ,miscellaneous #bc1aig1aee #dd1hbd1abc #ba1fbf1ifh #ic4bc ----------- ----------- ----------- ------ ,total #dda1hha1fbc #hic1ahd1igb #dea1cjc1cdi #ajb4ac ,obviously the effect of the increases shown in the foregoing upon the quality of the average ton-mile must be in proportion as they have exceeded or fallen short of the average increase shown at the foot of the last column4 ,there is no question that1 in general1 products of agriculture1 animals1 forests and mines are low-grade commodities1 or that1 on the other hand1 the commodities classed as manufactures1 merchandise and miscellaneous are high-grade articles4 ,an increase in excess of the general average increase in the first four classes named would tend to lower the quality of the average ton-mile while the opposite effect1 that is1 a raising of the quality1 would result if the last three classes should increase more rapidly than the increase in all tonnage4 ,adopting this classification1 the following shows the respective increases in high-grade and low-grade tonnage3 ,tons4 ,increase4 ,class of commodity4 #ahii4 #aijg4 ,amount4 ,per cent4 ,high-grade #ajb1deg1jie #bag1afd1jec #aad1gjf1ieh #aaa4if ,low-grade #cci1dbd1ebh #fgf1jbj1iai #ccf1eif1cia #ii4ag ----------- ----------- ----------- ------ ,total #dda1hha1fbc #hic1ahd1igb #dea1cjc1cdi #ajb4ac ,the considerably greater increase in the tonnage of high-grade articles indicated by the foregoing is scarcely within the possible margin of error in the classification1 but1 in any event1 what the figures certainly prove is the absence of any actually far-reaching change in the typical or average unit of traffic4 ,that this conclusion extends to traffic movement is clearly probable4 ,,prices ,,and ,,actual ,,rates4 ,comparisons between actual prices of commodities shipped by rail and typical freight charges on the same articles1 for #ahig and #aijg1 demonstrate the fact that while prices have almost uniformly advanced the greater number of rates have remained stationary while among those which have changed the reductions are as numerous as the advances and exceed the latter in extent and importance4 ,mr4 ,mc,cain here presents a table compiled from reports of the ,bureau of ,labor of the actual prices of commodities and the rates between principal points of shipment1 occupying pp4 #ej-eh of his pamphlet4 ,examination of prices collected and reported by the ,bureau of ,labor1 giving the prices in #ahii and #aijg of #bbi articles1 shows that among these #bjd prices or #hi4jh per cent4 of the total were increased4 ,the rates on forty-nine of these articles were advanced an average of #ac4ad per cent4 and the rates on forty-eight of them were reduced an average of #af4dd per cent4 ,other conclusions are shown in the following summary table3 ,aggregate ,average ,per cent4 percentage changes1 ,item4 ,number4 of total4 of changes4 per cent4 ,prices-- ,advanced #bjd #hi4jh #aa1cdj #ee4ei ,reduced #ac #e4fh #ccj #be4ch ,unchanged #ab #e4bd -- -- ,total #bbi #ajj4jj -- -- ,rates advanced-- ,prices advanced #dd #ai4bb #fjf #ac4gg ,prices reduced #c #a4ca #cj #aj4jj ,prices unchanged #b 4#hg #h #d4jj ,total #di #ba4dj #fdd #ac4ad ,rates reduced-- ,prices advanced #db #ah4cd #gjh #af4hf ,prices reduced #c #a4ca #cc #aa4jj ,prices unchanged #c #a4ca #dh #af4jj ,total #dh #bj4if #ghi #af4dd ,rates unchanged-- ,prices advanced #aah #ea4eb -- -- ,prices reduced #g #c4jf -- -- ,prices unchanged #g #c4jf -- -- ,total #acb #eg4fd -- -- ,the foregoing shows that while prices were advanced for #bjd out of #bbi articles1 or #hi4jh per cent4 of the entire number included in the table1 the freight rates on the same articles1 as expressed in money1 were advanced in but forty-nine instances1 or #ba4dj per cent4 of the total1 money rates were reduced in forty-eight instances1 or #bj4if per cent4 of the total1 and remained stationary in #aah instances1 or #eg4fd per cent4 of the total4 ,of the rates advanced forty-four were in cases in which the prices had also advanced1 and of the rates reduced forty-two applied to articles which had advanced in price4 ,even as to the commodities which had advanced in price1 the average advance being over fifty-five per cent41 money rates were advanced in but forty-four instances out of #bjd and the average advance was but #ac4gg per cent4 and there were forty-two reductions in money rates1 such reductions averaging #af4hf per cent4 ,,significance ,,of ,,the ,,depreciation ,,of ,,money4 ,it has now been fully demonstrated 7first7 that the railways have to pay much more1 probably not less on the average than twenty-five per cent4 more1 for everything they require in the conduct of their business1 including labor1 than they did ten years ago1 7second7 that those who make use of railway services receive much more1 probably not less on the average than twenty-five per cent4 more1 for their labor or for the commodities which they produce than they did ten years ago1 7third7 that average rates per ton per mile for railway freight transportation1 expressed in money1 that is to say1 in dollars and decimal fractions of dollars1 are now somewhat lower than they were in #ahig or formerly1 and 7fourth7 that the ton-mile unit is a highly stable one as to quality and that in consequence of this stability the ton-mile rates accurately answer the question whether rates1 expressed in money1 have remained stationary1 have advanced or have declined4 ,the latter conclusion has been supplemented and re-enforced by data from the classifications and rate schedules which tend strongly to prove the same fact4 ,therefore1 it has been made plainly apparent that there has been a decline in money rates since #ahig4 ,but railways require money only to remunerate the highly skilled labor they employ1 to purchase necessary materials and supplies1 to pay taxes and to compensate the capital they use4 ,consequently money is worth to the railway corporation1 as to the wage-earner1 only what it will buy for the satisfaction of wants4 ,a dollar which will pay for less labor or buy less fuel for locomotives is worth less to the railway just as a dollar that will buy less bread or clothing is worth less to the man who works for wages or receives it as interest on his savings4 ,it has long been realized that any effort to study the question of wages1 throughout an extended period1 which fails to take into consideration the purchasing power of the money received is worse than valueless1 because it is deceptive and misleading4 ,it has been generally recognized also that any effort to consider the condition of particular classes of producers by comparisons of the prices obtained for their products at different periods1 as that of farmers by the prices of corn and wheat1 is similarly dangerous unless these prices are turned into quantities of the commodities which such producers must purchase4 ,in elucidating this obvious point ,mr4 ,mc,cain cites such authorities as ,adam ,smith1 ,john ,stuart ,mill1 ,president ,hadley of ,yale1 ,professor ,frank ,w4 ,taussig of ,harvard1 and then continues4 ,a rapid decrease in the purchasing power of the money they receive has brought about1 within a single decade1 a reduction in railway freight rates that cannot be less than twenty-five per cent4 ,this reduction began almost imperceptibly at a time when ,american railway rates were already lower than ever before in the history of railways and lower than anywhere else in the world4 ,it has proceeded1 concurrently with the fall in the real value 7that is in the purchasing power7 of the ,american dollar1 but in such subtle form that only when its consequences threaten the stability of the ,american railway system1 the wages of railway employes and the prosperity of the great rail-manufacturing1 car-building and other allied industries is its real significance and extent perceived even by those most immediately interested4 ,that such a threat now hangs over the railway industry of ,america and every employe and industry dependent upon it is too plain for argument4 ,the situation is acute and nothing but a prompt adjustment of the rates obtained for the services rendered to offset1 partially1 at least1 the loss in the value of the money received will prevent disaster4 ,that such an adjustment1 if effected now1 will1 at best1 be tardy and belated is evident from the facts herein presented1 which show that prices in every other industry and the wages of all artisans were long ago adjusted to this fundamental condition4 ,,appendix ,b ,statement showing prices of railway supplies purchased in #ahig and #aijg as disclosed by the records of various ,eastern railways4 ,it should be noted that the quality of the supplies1 made the basis of this statement1 may have changed somewhat between #ahig and #aijg1 but in few instances would the allowance for this source of variation materially affect the results4 ,prices4 ,increase4 ,class4 #ahig4 #aijg4 ,per cent4 ,locomotives-- ,mogul #aj1aha4jj #ad1aaa4jj #ch4f #aj-,wheel passenger #aa1jbf4jj #ae1gcd4jj #db4g ,atlantic not built #af1bcf4jj -- ,pacific not built #ai1ehj4jj -- ,prairie not built #af1dfh4jj -- #h-,wheel passenger #aj1bdc4jj #ac1eha4jj #cb4e #f-,wheel switcher #i1cib4jj #ab1jih4jj #bh4h ,cars 7#ahii-aijg7-- ,hopper #dge4jj #a1ahe4jj -- ,box #ghc4jj #a1aaj4jj -- #dij4jj #hdd4jj -- #eai4jj #hig4jj -- ,note4--,the prices of cars shown above are typical prices paid by different roads in the respective years and employed in the same service4 ,as the cars purchased in #aijg are of more modern construction1 better quality and larger capacity than those purchased in #ahii1 no accurate comparison can be made or percentage of increased cost shown4 7#aijb-aijg7-- #ajj1jjj lbs4 ,capacity ,box ,car with ,steel ,underframe and wood superstructure #a1jdc4di #a1adh4hh #aj4ji #ajj1jjj lbs4 ,capacity ,composite ,gondola ,car with ,steel ,under- frame and wood superstructure #a1jba4fb #a1adh4de #ab4db #ajj1jjj lbs4 ,capacity ,composite ,flat ,car with ,steel ,underframe and wood floor #iec4bc #a1jaj4fj #f4jb #ajj1jjj lbs4 ,capacity1 all steel ,hopper ,cars #a1jjb4bb #a1jgf4je #g4dg ,angle ,bars ,cwt4 #a4jb #a4ee #eb4j ,axles-- ,locomotive ,cwt4 #b4ge #b4ie #g4b ,cwt4 #b4gb #b4he #d4g ,tender ,cwt4 #a4dj #b4ce #fg4h ,car ,cwt4 #a4fj #a4ie #ba4i ,cwt4 #a4de #b4bj #ea4g ,cwt4 #a4fh #b4be #cd4j ,bar ,iron ,cwt4 #a4ai #a4gh #di4e ,cwt4 #a4aj #a4hj #fc4f ,cwt4 #a4je #a4ej #db4h ,brick-- ,common ,m #d4ej #f4jj #cc4c ,paving ,m #h4jj #aa4jj #cg4e ,castings-- ,brass ,lb4 #j4aa #j4be #abg4c ,brass ,lb4 #j4ab #j4be #aad4f ,steel ,cwt4 #c4ej #f4jj #ga4d ,m4 ,iron ,cwt4 #b4ej #d4be #gj4j ,cwt4 #b4gj #c4fj #cc4c ,cwt4 #b4ce #b4he #ba4b ,gray ,cwt4 #a4ae #b4jj #gd4j ,cwt4 #a4bj #a4fe #cg4e ,coal ,ton #a4df #a4gf #bj4e ,ton #a4cb #a4hb #ch4j ,ton #a4ag #a4eb #bi4h ,ton #a4hc #b4jg #ac4a ,run of ,mine ,ton 4#fe #a4je #fa4e ,ton 4#ge #a4ae #ec4c ,couplers-- ,freight ,set #ad4jj #ae4jj #g4a ,passenger ,set #bj4ej #bg4jj #ca4g ,tender ,set #ah4jj #ah4ej #b4h ,fencing ,m4 ,ft4 #ab4jj #be4jj #ajh4c ,m4 ,ft4 #aj4jj #ah4ae #ha4e ,flues ,ft4 #j4ac #j4ae #ai4b ,ft4 #j4ad #j4ae #g4a ,forgings-- ,axles ,lb4 #j4jb #j4jc #ej4j ,crank ,pins ,lb4 #j4je #j4aj #ajj4j ,piston ,rods ,lb4 #j4jf #j4aj #ff4f ,main ,rods ,lb4 #j4jh #j4aj #be4j ,side ,rods ,lb4 #j4jh #j4aj #be4j ,lead-- ,white ,cwt4 #d4ie #f4be #bf4c ,lumber-- ,large ,bridge ,timbers ,m4 ,ft4 #ac4ab #be4fb #ie4c ,m4 ,ft4 #bc4jj #ch4jj #fe4b ,m4 ,ft4 #bj4jj #cc4jj #fe4j ,m4 ,ft4 #ag4jj #bh4jj #fd4g ,m4 ,ft4 #bb4ej #ch4jj #fh4i ,m4 ,ft4 #ae4jj #bg4jj #hj4j ,car ,sidings ,m4 ,ft4 #ag4jj #ce4jj #aje4i ,m4 ,ft4 #ah4jj #cc4jj #hc4c ,stringers ,m4 ,ft4 #ah4jj #bh4jj #ee4e ,m4 ,ft4 #af4jj #cd4jj #aab4e ,m4 ,ft4 #ah4jj #bf4jj #dd4d ,m4 ,ft4 #ag4jj #bh4jj #fd4g ,car ,flooring ,m4 ,ft4 #ag4jj #bd4jj #da4b ,m4 ,ft4 #bj4jj #cc4jj #fe4j ,m4 ,ft4 #aa4jj #be4jj #abg4b ,m4 ,ft4 #ad4jj #ai4ga #dj4h ,piles 7,soft7 ,ft4 #j4jh #j4ad #ge4j ,ft4 #j4jh #j4aa #cg4e 7,hard7 ,ft4 #j4ab #j4ag #da4g ,heavy ,planks ,m4 ,ft4 #ad4jj #bb4jj #eg4a ,m4 ,ft4 #ad4jj #cj4jj #aad4c ,m4 ,ft4 #af4jj #bg4jj #fh4h ,cross ,ties 7,hardwood7 ,each #j4dg #j4hj #gj4b ,each #j4fj #j4he #da4g ,each #j4ee #j4ge #cf4d ,each #j4cg #j4gj #hi4b ,each #j4de #j4fj #cc4c ,each #j4de #j4ee #bb4b ,each #j4dh #j4ij #hg4e ,each #j4ch #j4hj #aaj4e ,each #j4ch #j4fg #gf4d ,softwood ,each #j4bb #j4fj #agb4g ,each #j4bj #j4bh #dj4j ,each #j4bc #j4dh #ajh4g ,each #j4dh #j4eh #bj4h ,nails ,cwt4 #a4fj #b4bj #cg4e ,cwt4 #a4cc #b4af #fb4d ,cwt4 #a4aj #b4ae #ajd4e ,wire ,cwt4 #a4bg #a4he #de4g ,cwt4 #a4dh #b4aa #db4f ,oil-- ,kerosene ,gal4 #j4jf #j4ji #eh4c ,signal ,gal4 #j4bh #j4cf #bh4f ,gal4 #j4bj #j4cf #hj4j #cjj degree ,gal4 #j4ji #j4aj #aa4a ,paint-- ,gal4 #j4gg #a4jc #cc4h ,gal4 #j4ej #j4fe #cj4j ,cwt4 #d4ge #f4fb #ci4d ,cwt4 #e4ej #f4ej #ah4b ,pipe-- ,cast ,iron ,ton #af4jj #cd4jj #aab4e ,ton #af4ge #bi4ae #gd4j ,ton #ac4ej #ba4jj #ee4f ,ton #af4jj #cb4jj #ajj4j ,copper ,lb4 #j4ca #j4cd #i4g ,lb4 #j4cj #j4cc #aj4j ,lb4 #j4cj #j4ce #af4g ,rails-- ,steel ,gross ,ton #ai4jj #bh4jj #dg4d ,gross ,ton #ah4jj #bh4jj #ee4f ,gross ,ton #ah4je #bf4fj #dg4d ,rubber ,hose-- #a ,inch ,ft4 #j4cd #j4da #bj4f #a inch ,ft4 #j4dj #j4df #ae4j ,springs-- ,loco4 ,cwt4 #d4je #d4aj #a4b ,switches-- ,comp4 #hj #ca4ij #dj4gg #bg4h ,frogs #hj #ah4ge #bg4ej #df4g ,switch ,lamps ,doz4 #de4jj #fe4jj #dd4d ,tile ,rod #j4dj #j4fj #ej4j ,track ,bolts ,cwt4 #a4gj #b4de #dd4a ,cwt4 #a4fe #b4fj #eg4f ,cwt4 #b4bj #b4ge #be4j ,cwt4 #a4fe #b4de #dh4e ,cwt4 #a4ge #b4gf #eg4g ,track ,spikes ,cwt4 #a4he #b4eb #cf4b ,cwt4 #a4ce #a4gj #be4i ,cwt4 #a4ej #b4fj #gc4c ,cwt4 #a4fe #b4be #cf4d ,cwt4 #a4ej #a4ij #bf4g ,cwt4 #a4de #a4ij #ca4j ,cwt4 #a4ge #b4jj #ad4c ,track ,tools-- ,axes ,doz4 #h4jj #i4jj #ab4e ,drills ,each #j4ce #j4df #ca4d ,ratchets ,doz4 #e4ac #f4fe #bi4f ,shovels ,doz4 #e4jj #e4fe #ac4j ,lamp ,bars ,each #j4eb #j4fe #be4j ,waste-- ,colored ,lb4 #j4jdg #j4jee #ag4j ,white ,lb4 #j4jf #j4jh #cc4c ,wheels-- ,car ,each #e4fj #g4hj #ci4bi ,each #f4jj #h4ce #ci4ag ,each #g4ej #i4cj #bd4j ,each #d4gh #h4df #gf4i ,each #d4ej #i4jj #ajj4j ,each #f4ge #h4jj #ah4e ,each #f4ej #i4jj #ch4e ,each #f4jj #i4je #ej4h #cc-;in ,steel ,each #ej4jj #ef4jj #ab4j ,each #db4ej #dd4ej #d4g #cf-;in4 ,steel ,each #db4ej #ej4ej #ah4h ,each #ed4jj #fj4jj #aa4a ,wire-- ,barbed ,cwt4 #a4gj #b4ej #dg4j ,iron ,cwt4 #a4ej #b4bj #df4g ,copper ,lb4 4#ac 4#bf #ajj4j ,lb4 4#ac 4#ah #ch4e ,,footnotes3 ,e ,a partial list of the articles in each class in #ahjg which are still in the same class1 as shown by ,official ,classifications ,nos4 #af and #cb1 is given in ,appendix ,a to ,mr4 ,mc,cain's pamphlet4 ,there were approximately #c1jjj various articles bearing the same classification or rating in #aijh as in #ahih4 ,f ,appendix ,c occupies pages #hi to #ie of ,mr4 ,mc,cain's pamphlet4 ,g ,appendix ,d occupies pages #if to #aja of ,mc,cain's pamphlet4 ,h ,details from which the table was derived are given in ,appendix ,e to ,mr4 ,mc,cain's pamphlet1 pp4 #ajb-ajf4 ,,the ,,railroads ,,and ,,public ,,approval ,,by ,,edward ,p4 ,,ripley1 ,president ,atchison1 ,topeka and ,santa ,fe ,railway ,company4 ,address delivered at the annual dinner of the ,railway ,business ,association1 ,new ,york1 ,november #aj1 #aiji4 ,circumstances over which ,i had no control caused me to be born with a distinct inability to think consecutively1 or talk coherently1 in a standing position and before an audience4 ,seated on the small of my back with my feet on the desk ,i sometimes think ,i am thinking1 but when ,i get before an audience ,i am like the little steamer plying on the ,sangamon ,river that had a #aj-;foot boiler and a #ab-;foot whistle--when she whistled she stopped4 ,but my weakness1 or rather one of my weaknesses1 is susceptibility to flattery1 and when one of your officers represented in honeyed phrase the importance of your organization and of this meeting1 and laid particular stress upon the importance of my saying something1 ,i weakly yielded4 ,i know the result will be disappointment1 but the responsibility is only partly mine1 and you know we railroad men get so little flattery that when properly administered the result is intoxicating4 ,also1 let me state in extenuation of the crime ,i am about to commit that the subject was not my own selection1 but was chosen for me4 ,my natural disposition in discussing railroads and the public is to growl1 while1 if ,i understand your officers' wishes1 ,i am here expected to purr4 ,but while a better man might have been selected to say it1 there is much to be said as to the railroads and public opinion4 ,in this country the people rule--and in the long run that system1 that method or that personality that does not meet the approbation of the public can not succeed4 ,true1 the public is often fooled2 true1 it gets on the wrong feet1 as often perhaps as on the right2 true1 it has to be guided1 controlled1 and at times abruptly stopped by those authorities which it has selected for that purpose2 yet the fact remains that the government of the people1 that ,congress1 the legislatures and even the courts are keenly alive to public sentiment and anxious not to stray far from the line of public opinion4 ,our forefathers recognized the danger that the majority would not necessarily be right1 but might often be wrong1 and sought to provide safeguards for the rights of the minority4 ,but these safeguards are obviously growing less efficient2 obviously growing weaker2 obviously more sensitive to the public clamor which for the moment stands for public opinion1 and when all safeguards have been exhausted it is to public opinion that we must look at last4 ,there are two things about which the public is most critical--one is the management of the newspaper1 the other the management of the railroad4 ,in his heart the average citizen believes that he could operate either his daily newspaper or the railroad passing through his town much better than it is being operated2 he would perhaps hesitate to announce this opinion1 but his attitude is coldly critical1 and it is to be remembered that the railroad is all out of doors--all out in the weather1 everything about it exposed to the limelight and visible to anybody's naked eye4 ,there is no human activity the operation of which is attended with so much publicity4 ,all our earnings and expenses are published2 all our charges and all our methods the subject of regulation1 intelligent or otherwise4 ,many years ago ,mr4 ,w4 ,k4 ,vanderbilt1 journeying to ,chicago1 was met on the outskirts of the city by an enterprising reporter for a daily paper1 who boarded the train and forced himself into the presence of ,mr4 ,vanderbilt and his party1 and demanded news on behalf of the public4 ,probably ,mr4 ,vanderbilt1 resenting the intrusion1 said something uncomplimentary to the reporter and possibly to the public he claimed to represent1 and the next issue of that paper quoted him in scare headlines as using the phrase1 ,the public be damned4 ,mr4 ,vanderbilt subsequently denied having said it1 but whether he did or not and whatever may have been his provocation1 the phrase has for nearly forty years been used as indicative of the railway man's attitude toward his patrons4 ,many years ago also the late ,george ,b4 ,blanchard1 being on the witness stand at ,albany1 was asked what was the correct basis for making freight rates1 and replied1 ,what the traffic will bear--a most excellent answer1 but a most unfortunate one--for it has passed into history as meaning all the traffic will bear1 which is a very different thing4 ,such things as these1 distorted as they have been1 conspired to inflame public opinion1 but that is not all4 ,it is the custom and privilege of men past middle age to be reminiscent and ,i ask your indulgence for a very brief history of the events that have led us to our present status4 ,my railroad experience began about forty years ago and the railroad business was then much like any other business--it had its price list as did the merchant2 but1 like the merchant1 it had its discounts for large shippers and for special conditions1 and the discounts were irregular and various4 ,the larger shippers demanded concessions as a right1 and the principle was generally admitted4 ,naturally the result was favoritism1 not because the railroads desired especially to favor one as against another1 but because in the nature of things secret rates could not well be given to everybody4 ,nobody regarded these secret rates as criminal or objectionable4 ,but as time passed and these discriminations became more frequent and greater there arose a demand from the less favored portion of the shipping community for legislation forbidding the discrimination and providing for like opportunity for all4 ,this was strenuously opposed by the favored shippers and by those railroad men who believed the railroad to be purely a private institution and not amenable to law as to its charges4 ,it was common enough to hear it seriously argued that the larger shipper was entitled to the lower rate--this view was held by many shippers and1 ,i believe1 by most railroad managers4 ,they argued that the business was like any other business--that each interest must look out for itself1 and that competition between the roads would prevent rates from ever being too high4 ,for myself ,i may say that ,i realized from an early period that discrimination as to rates was unjust and at no time objected to laws forbidding it4 ,the interstate commerce law was passed in #ahhg4 ,it was crude in its provisions and was the result of compromises between radicals and conservatives2 it sought both to foster competition and to abolish it1 and in that respect remains still contradictory and impossible4 ,upon the passage of the law1 that which had been looked upon as perfectly proper and as the working of natural competitive forces became illegal and criminal4 ,the railroads generally accepted the law and made an honest effort to observe it--the mercantile community did not--indeed1 they openly defied it1 soliciting rebates unblushingly and threatening with the loss of their tonnage those roads who would not succumb4 ,the ,interstate ,commission1 new to its duties1 contented itself with comparatively unimportant decisions and practically did nothing to help those railroads who desired honestly to carry out the provisions of the law2 and1 as a result1 within a year of the passage of the law it was quite generally disregarded4 ,a few railroad men were fined1 a few shippers convicted--and almost immediately pardoned--and the law fell into disrepute1 a condition disgraceful alike to the government1 the shippers and the railroads and especially distasteful to the latter1 but exactly what was to be expected4 ,the result was the passage of the so-called ,elkins bill1 and later the ,hepburn bill1 which1 while amateurish and in many ways vicious1 have effectually stopped the rebate system--a result for which we may all be thankful4 ,in all the controversies that have led up to this almost complete control of railroad earnings and railroad policies by governmental agencies1 the railroads have1 as a rule1 acted in active opposition4 ,they have not been unanimous--some of us were willing to accept it long before it became a fact1 but the majority could see nothing in it but disaster--it is too early to say which was right--perhaps an earlier acceptance of control would have made the control more lenient2 perhaps its earlier acceptance would1 on the other hand1 have bound the chains more tightly4 ,but the fact remains that while the basic principle of absolute equality as to rates has been accepted by the railroads gladly and in all good faith1 and they have also accepted the principle of government regulation1 the scars of the conflict remain and a large section of the public still suspects and misjudges us4 ,it is true1 of course1 that in the rapid development of our business and in the exigencies of a most exacting profession there have been abuses and lapses1 but ,i am here to maintain that the standards of fair dealing and commercial honesty in our business have been as high as in any other1 and ,i appeal to you who sit around this table to say if it be not so4 ,but whatever sins may be laid at our door1 however much we may have once believed that ours was a private business to be controlled exclusively by its owners1 however much we have resented or still resent the interference of the public as manifested in the various governing bodies1 it is1 after all1 the public that is master and we must all recognize it4 ,it is1 however1 still our privilege to exercise our right as citizens and members of the body politic to use our efforts to guide it4 ,acknowledging as we must that the public is all-powerful1 the question is1 ,how may we satisfy our masters and thus mitigate our woes and preserve our properties8 ,first4 ,we must realize1 as ,i think we all do 7after a series of very hard knocks71 that the railroads are not strictly private property1 but subject to regulation by the public through its regularly constituted authorities--that the ,government may reduce our earnings and increase our expenses has been sufficiently proved4 ,second4 ,to meet this situation we must endeavor to get in touch with public opinion4 ,perhaps you will smile when ,i say that for years ,i have read every article on railroad matters in each of the papers published along our ten thousand miles of road--not an easy task for a busy man--but while ,i have waded through much chaff ,i am sure it has resulted in some reforms4 ,third4 ,the avoidance of action seriously counter to public opinion1 except for compelling reasons4 ,fourth4 ,the disposition to explain these reasons through officers and employes of all grades4 ,generally1 the loudest criticisms come from those who are not anxious to know the truth4 ,fifth4 ,efforts to improve service in many cases without hope of reward and for the deliberate purpose of winning public approval1 such as better stations1 improved heating and lighting devices1 better equipment1 better terminal facilities1 separation of grades1 etc4--all with due regard to the rights of those whose money we are spending4 ,as we do all these things1 meet us half way4 ,encourage the habit of not rushing into abuse4 ,try to consider the facts and the difficulties--this is for the public interest as well as ours4 ,oppose unnecessary and restrictive legislation and give us a chance4 ,most of our railroads are mere imitations of what a railroad should be1 and what it must be to keep abreast of the country--yet even the poorest serves a useful purpose and can not be spared4 ,an eminent authority has said that five thousand millions of dollars would be required to supply the transportation needs of the next decade1 and ,i do not believe it is an over-estimate4 ,can private capital be found to that amount unless public sentiment is willing to assure it of return8 ,a portion of the public is clamoring for facilities involving great additions to expenses2 another portion for limitation of earnings2 will the investor consent to accept the risks while strictly limited as to his return8 ,since the public may do as it will with us and since we are necessary to the public1 we may properly call attention to the fact that railway investments already pay less than any other line1 and to ask what is to be done--really1 it is quite as much the public's affair as ours4 ,is it certain that the mixture of private ownership and public regulation which is now prevalent will succeed8 ,is it not contrary to all rules of political economy and to all the teachings of history8 ,starting as a purely private industry it has been appropriated in part and other parts are apparently to follow4 ,granting whatever may be claimed for the advantages of regulation by government1 do not equity and ordinary commercial decency require that such close restriction and supervision should be accompanied by some guaranty of return8 ,i have endeavored to sketch briefly what should be the attitude of the railway man as a railway man toward the public4 ,i am sure ,i voice the sentiment of all managing railroad officers when ,i say that our great desire is to please the public and to give it the best possible service for the least possible compensation consistent with reason4 ,discriminations have long since passed away and nobody is better pleased than the railroad man that it is so4 ,there is no desire to escape either responsibility or regulation4 ,we desire to accord only justice and we ask in return only justice4 ,may ,i now1 as a citizen1 appeal to the railway employe1 to the members of this ,association1 and to all other good citizens1 to resist to the utmost of their powers the encroachment of government on private rights8 ,mr4 ,elbert ,hubbard1 of ,east ,aurora1 ,n4 ,y41 recently remarked that when ,god sent a current of common sense through the universe most of the reformers wore rubber boots and stood on glass4 ,our troubles are with this class--well-meaning men who have zeal without knowledge and enthusiasm without sanity2 these we may not reach1 but the great mass of the solid and substantial citizenship may perhaps be induced to stop and consider whither we are drifting and whether this greatest of all the country's industries is being fairly treated4 ,,railroads ,,and ,,the ,,public ,,by ,,hon4 ,,john ,c4 ,,spooner4 ,from the address delivered at the annual dinner of the ,railway ,business ,association1 ,new ,york1 ,november #aj1 #aiji4 ,the topic which has been assigned to me is brief1 but very large3 ,railroads and the ,public4 ,it suggests nothing of humor1 but everything of gravity and involves considerations which affect the prosperity of our whole people4 ,the railroads1 often berated in legislatures and in congresses as leechlike and piratical1 are1 after all1 vital to the happiness of our people and to the progress of our industries and commerce4 ,the people are apt to forget that they have been the greatest factors--,i say the greatest factors--in the development of our resources and the enlargement of our commerce1 both in times of war and in times of peace4 ,if one would stop to think of what would have happened if1 during the war for the preservation of the ,union1 we had been without railroads1 ready and willing to serve the government upon its demand and at prices fixed by it1 how long would the war have continued8 ,and what might not have been its result8 ,they carried troops from the ,north to the places of rendezvous in the fields2 they enabled the government to transfer quickly from the ,east to the ,west1 or the ,west to the ,east1 as emergency demanded1 troops essential to successful military operations4 ,they carried munitions of war1 they carried the mail to our soldiers1 they carried food and raiment to those who were fighting under our flag4 ,and in time of peace1 what would this country have been without the railroads8 ,the railroad has been the advance courier of progress1 of settlement1 of production1 of commerce4 ,it is absolutely1 and has been1 indispensable to the government1 to the commerce and to the happiness and comfort of our people4 ,its mission is not performed or fulfilled4 ,considered solely with reference to construction1 there are new fields to be penetrated by them4 ,today men of courage and men of means are building railways with characteristic ,american energy in far off ,alaska1 to bring the gold mines and the coal mines and the timber and the unknown resources of that distant territory into the markets of the ,united ,states4 ,if there is one instrumentality which above another has been a factor1 appreciable by all thoughtful men1 in making this country what it is1 it is the railroad4 ,and the railroad has kept abreast with the demands of commerce4 ,every device which ingenuity or invention has presented has been promptly adopted by the railway companies of the country4 ,they have kept abreast of invention and improvement1 until today the railway system of the ,united ,states is the most luxurious1 the safest1 the best managed railway system under the bending sky4 ,the first thing that would occur to one from this toast1 the railroads being first mentioned1 is what do the railroad companies owe to the public8 ,that is easily defined4 ,they owe it to the public to furnish safe roadbeds and equipment2 they owe it to the public to furnish prompt service2 they owe it to the public to treat all men1 with obvious limitations1 passengers and shippers under the same circumstances1 equally and without unjust discrimination1 and they owe to the public the duty of1 as far as it is possible1 so maintaining their roads and their equipment as to be able to meet in a fair way all the demands of commerce and traffic at reasonable rates4 ,that excludes the rebate which never had any justification in logic or in fair play4 ,i think those who hated it most were those who felt obliged to adopt it4 ,when one railway company gave rebates it is quite manifest that the competitor was obliged to1 or go out of business4 ,and ,i believe that railway companies of the ,united ,states were glad1 and their officers were glad1 when it was made a penal offense for railway companies to give rebates4 ,i think a railway company owes to the public to be careful in the selection of its employes2 they should be capable1 of course1 and they should not only be capable1 but they should be courteous and polite4 ,to sum it up1 you would say that what the railway in the enlarged sense--which includes details--owes to the public is just and fair treatment4 ,what does the public owe to the railway companies8 ,precisely1 as ,i view it1 the same thing1 just and fair treatment4 ,only that and nothing more4 ,everybody knows that the railway companies of the ,united ,states--,i won't put it that way--that the railway system of the ,united ,states never could have been created without the utilization of corporate entities4 ,partnerships never could have concentrated the capital necessary to that end4 ,only corporations could have achieved it4 ,that was true in the past and it always will be true4 ,now1 why is the railway company different from other corporations1 most other corporations8 ,one trouble with the general public is that they don't seem to understand--and they are not perhaps to be chided for it--their relation to the railway company4 ,they think1 and they are told1 they have been told it in ,congress1 and they have been told it where one would least have expected it1 that railway corporations are public corporations1 and they have been taught to believe that their power over public corporations was supreme1 which is not far from the truth2 but the railway corporation is not a public corporation4 ,the ,supreme ,court has many times decided that a railway company is a private corporation1 that its property is private property1 under the protection and safeguards of the ,constitution of the ,united ,states against the public as well as against individuals who attack it4 ,then1 wherein lies the difference between a private corporation engaged in manufacture and a railway corporation8 ,right here3 ,a railway corporation can not construct its railway without being clothed with a power which is not given to the usual private corporation1 a power which inheres in the sovereignty of the state1 the ultimate power of the people delegated to the railway corporations and very few others1 and that is the power to take your land without your will at a price fixed not by you but by a jury4 ,why8 ,because it is for the public use1 and private interest and private sentiment can not be permitted to obstruct the interest of the state1 and therefore the property of a railway company while it is private property is1 as the ,supreme ,court of the ,united ,states has said1 affected with the public interest4 ,a railway company serves the public1 that is what it is organized to do4 ,those who apply for the corporate franchises do not apply for an altruistic purpose4 ,they wish it because they think they can make profit out of it1 and that is legitimate1 but the state grants it for the public use4 ,and so it comes about that the state has the power to regulate it4 ,mark what ,i say1 to regulate it1 to prevent it from exacting extortionate rates from the people2 to prevent it from putting upon the people abuses in its management1 but that does not mean that the state may take its property4 ,that does not mean that the state may take its management out of the hands of its owners4 ,it means simply that the state may protect the public from any abdication by it or violation by it of its duty as a common carrier1 and this principle is too often forgotten4 ,in these days regulation has apparently achieved a wider field for operation1 and is deemed to be broad enough to regulate not only the property and the management of the property1 but the management of everybody connected with it4 ,that won't do4 ,why1 ,i see it is stated in the report of your ,business ,association that commissions which have been organized by the states and the ,commission organized under the act of ,congress1 have come to stay4 ,of course they have come--we know that1 and we know another thing1 that whenever a governmental commission comes1 it stays4 ,the commissions in the states1 most of the states--,god knows ,i wish ,i could say all the states1 but ,i can not truthfully--have subserved a useful purpose4 ,the state lays down the rule and the commission administers the law4 ,there is one thing about a commission in the regulation under the law of railway carriers which places it in respect of proprietary1 fairness and fitness for that function1 far above ,congress or any other legislative body1 and that is this3 ,that they have time to listen1 to investigate1 to get at the truth1 which a legislative body does not have time to do in the very nature of things4 ,i do not know1 but ,i think nothing added more to the reputation of ,governor ,charles ,e4 ,hughes1 of ,new ,york1 than the fact that he refused to sign a bill1 but vetoed it1 reducing the rates which railway companies might charge1 upon the ground that there had been no investigation which enabled fair judgment as to what was fair treatment to the railway corporations4 ,i was in public life a good many years and ,i am a firm believer in the sober second thought of the ,american people1 for it represents the average judgment of every class of our people2 but they get wrong1 they get wrong about men1 and they get wrong about policies and measures4 ,they are subject1 en masse1 as men are individually1 to moments of passion and excitement1 and they know it4 ,as ,mr4 ,webster said1 and as the ,supreme ,court of the ,united ,states has said1 the fundamental object of a constitution adopted by the people is that they may protect themselves against themselves in moments of excitement and passion4 ,and the ,american people will always give heed to the popular translation of the phrase1 ,due process of law1 that is1 hear before you strike4 ,now the ,commission1 the ,interstate ,commerce ,commission1 was intended by the ,congress which created it to be an absolutely independent body4 ,it was to report to the ,congress1 it was not to be subject to the command of either ,house of ,congress1 or of the ,executive of the ,united ,states4 ,it was intended to be a quasi-judicial body4 ,i know all of its members1 and ,i do not depreciate to the slightest extent the services which it has rendered4 ,the only criticism ,i would have of it1 and that does not arise from its membership1 but it is inherent in the system1 is that it is never satisfied with the powers it has got4 ,it is as insatiable as death for power4 ,it has been proposed that they shall have the power to regulate the issue of stocks and bonds by railway corporations created by the states1 that is1 if the state which creates the railway company authorizes it1 desiring it to utilize its privileges for the construction of a new railroad1 to issue stock1 or issue bonds1 that it shall not be permitted to do that thing until the act of the legislature and the approval of the governor shall have been supplemented by the approval of the ,interstate ,commerce ,commission4 ,now ,i am getting along in years1 and ,i am a little old-fashioned1 and ,i have not yet been able to satisfy myself that where one government creates a stock corporation1 another government shall regulate the amount of its capital stock and its bonded indebtedness4 ,i have seen it proposed lately that the ,commission should have the power to fix a rate1 and that that rate should be final until a final judgment setting it aside was reached4 ,what becomes of the constitution under such a law as that8 ,a railway company1 as ,i have said1 owns its property4 ,it renders a compulsory service to the public over its own property1 with its own equipment1 with its own employes1 and at its own risk1 and is entitled to a fair compensation1 based upon the fair value of the property which it devotes to the public convenience1 and the ,supreme ,court has held that that property can not be taken--because the use of property is the property--can not be taken for the public use without just compensation1 and if the state1 the legislature1 or the ,congress may authorize a commission to fix a rate as reasonable and fair1 beyond which the railway company may not charge for services it renders1 and require it to observe that rate until the final adjudication as to whether the rate is reasonable or not1 and after the lapse of months it is decided that it was unreasonable1 how can the railway company recover the great sum in unreasonable rates which it had lost8 ,it is a taking of a private property for a public use without just compensation1 and ,i deny the constitutional power of ,congress to do that thing4 ,i admit the power1 and the exercise of it to the fullest extent to so far regulate railway corporations as to secure to the public a faithful discharge of all their duties to the public at reasonable rates1 and under fair regulations2 beyond that ,i believe that the owners of the property ought to be permitted to manage the property4 ,the business of railway management has become one of the learned professions4 ,it calls for some of the brightest intellects in the country4 ,it calls for the exercise of powers which1 if devoted to the law or to finance or to any other business1 would place those who exercise it among those at the head4 ,it is one of infinite complication1 and it is not to be supposed that railway commissions can manage railway properties as well as the men who have been trained from boyhood to that business4 ,i have never questioned that the ,interstate ,commerce ,commission1 the ,commission in ,wisconsin1 and other commissions1 earnestly set out to do the just and fair thing1 but the trouble with this whole question is1 and has been through many a year1 that it gets too often into politics4 ,i do not believe myself that questions of business ever ought to find their way into the political platform of the party1 any more than ,i believe that the relations of the employer to the employe1 whatever the business may be1 ought to become the football of party politics4 ,this ,association was born out of a happy inspiration4 ,i think these troublesome problems are approaching solution4 ,the railway companies must obey the law4 ,the people ought to see to it that the law which the railway corporations are obliged to obey is a just law1 and that is to be ascertained only on painstaking inquiry1 and not through the speeches of enthusiastic orators or on the floors of ,congress4 ,it has got to be at times that where there was no other issue upon which a political contest could be fought out1 the easy1 obvious and last resort was let us go for the railroads1 or1 as a ,governor of ,minnesota once expressed it1 ,let's shake the railroads over hell4 ,the truth is that the interest of the railroads is the interest of the people4 ,the railroad company is dependent upon the people for its life and its sustenance1 and the people are no less dependent upon the railway company1 and between the two there should be even-handed justice4 ,they should be dealt with calmly1 and legislation should only follow deliberation and investigation1 and a law once enacted should be impersonally enforced1 not enforced against some and left to fall into innocuous desuetude as to others4 ,,railroad ,,problems ,,of ,,today ,,by ,j4 ,b4 ,,thayer1 ,vice-,president ,pennsylvania ,railroad ,company4 ,address delivered before the ,traffic ,club of ,new ,york1 ,saturday ,evening1 ,february #af1 #aiji4 ,problems--both many and varied--have always confronted the railway manager4 ,particular problems come to the front from time to time that tax all of our resources4 ,they differ with different periods of our history4 ,today one of the most serious depends more for its solution upon our lawmaking bodies1 both ,state and national1 than upon the railroad men1 and for the present1 at least1 we must feel like the old ,arkansas darky1 who said he was in the hands of an all-wise and unscrupulous ,providence4 ,in the early days of railroads the chief problem was that of construction and equipment2 later1 when more railroads had been built than there was traffic to feed1 there came the traffic problem1 and all the abuses which followed in its train4 ,these1 in turn1 led to the legislative problem accompanied by the ,interstate ,commerce ,law of #ahhg1 and through the '#ijs all sorts of problems--including bankruptcy for many4 ,now1 within the past few years has come the great problem of enlargement--the construction period again1 but in a different shape4 ,not experimental1 for we had learned how to build and how to equip2 not the building so much into new country1 but to take care of the traffic which was overflowing our rails4 ,events of the past year have proved the absolute necessity for almost all the large railroads in this country to enlarge their trackage1 their terminals1 and their equipment2 and yet1 here again1 when in considering where to obtain the necessary funds for such purposes1--which must1 of course1 come from the public1--the railroad managers find themselves confronted with great difficulties4 ,this1 of course1 is largely due to the tremendous demands for capital1 in the development that is going on in all parts of the world1 but it is increased1 at the moment1 by the natural timidity of capital to invest its funds in railroad securities1 in view of the violent attacks that are being made against corporations through ,congress and the ,state legislatures4 ,,popular ,,hostility ,,to ,,the ,,railroads4 ,this brings us1 then1 to our greatest and most perplexing problem--that of how to restore a state of reciprocal understanding and fairness between the carriers and the public4 ,many railroad officials believe that so deep-seated is the apparent hostility of the people that the management of the railways will be taken practically out of the hands of their owners1 and that great disasters are to follow4 ,i do not share this view1 principally for the reason that whatever may have been the faults in the past1 the methods and practices of railroad management are now based upon a decent regard for their public responsibilities4 ,sooner or later the people will recognize this--as ,i believe they are already beginning to do4 ,but by no means can we minimize the actual situation of today4 ,it is1 indeed1 a time of great anxiety to all those entrusted with railroad management1 and who have the interests of their country at heart as well4 ,with the old rebates and secret discriminations things of the past1 with all kinds of business in a most prosperous condition1 we all know that within the past three years1 suddenly1 out of an almost cloudless sky1 there has burst forth upon the railroads of this country a torrent of the most bitter and violent attacks--by political orators upon the stump2 in magazines and newspapers2 in ,congress and ,state legislatures4 ,it is fair to say1 ,i think1 that this onslaught had its origin in the agitation of #aijd for changes in the ,interstate ,commerce law4 ,it was based upon a misunderstanding of existing railroad conditions and the position of the railroad in regard to the points at issue1 which ,i shall presently explain4 ,following the agitation surrounding the passage of the rate bill has come a swarm of bills in ,congress and ,state legislatures1 which1 if they become laws1 and are enforced1 will prove disastrous to the railroads1 and1 equally so1 to the public at large4 ,the question is1 ,what is to be done to prevent it8 ,the old method of influence has been abandoned1 and1 ,i hope1 forever4 ,has it left us unequipped to meet the issue8 ,to answer this question let us get a perspective4 ,,railroads ,,not ,,blameless4 ,we must not imagine1 to begin with1 that we are entirely blameless4 ,we are in some respects only realizing the wages of past sins4 ,we have done many of those things which we ought not to have done1 and we have left undone many of those things we ought to have done4 ,most of the evils date back many years and many of them might have been prevented had the government done its duty and enforced the law4 ,yet even in most recent years we can find some mistakes with which to concern ourselves4 ,it is not strange that many men who have suffered loss through delays in their traffic1 or in their personal transportation1 or who saw themselves deprived of profitable business because they could not secure cars1 should have become exasperated and1 not having time to properly analyze the difficulty1 thought that the railroads were lacking in foresight and management4 ,but let us go back a few years4 ,it is a great mistake to hold the railroads responsible for such practices as rebating in those days1 when it would have been impossible to throw a stone in a commercial community without hitting somebody who was taking rebates and wanting more4 ,many men are today running for office on anti-railroad platforms who if you were to say ,rebates would duck their heads very much as ,david ,harum said his ,newport friends would do if he called out ,low bridge6 ,that rebates were wrong nobody questions1 but to pillory a man today for accepting rebates at that time is a farce4 ,many persons believe that the so-called discriminations1 resulting in the secret arrangements1 were largely influenced by the desire upon the part of railroad officials to favor one man against another1 but no thoughtful man who has at all studied the problem believes this4 ,rebates and other forms of discrimination1--whatever may have been the result in specific instances1--had their origin mainly in the competition between carriers for the traffic4 ,incidentally1 in transacting railroad business through secret arrangements1 as became the custom in that period1 there were many cases of discrimination in favor of the strong and against the weak4 ,there was a strong feeling upon the part of many men1 both in and out of railway service1 that the larger shipper1 under the ordinary rules of business1 was entitled to a lower rate1 and they could not conceive the real principle which should govern the making of railroad rates1--which1 however1 has come clearly to be realized since that time4 ,the railroad systems1 generally1 were not more anxious to pay rebates than they were to pay higher prices for their supplies1 and simply pursued the course of their competitors because1 otherwise1 they saw nothing but loss and probable bankruptcy staring them in the face4 ,the railroads were forbidden by law to meet and make formal agreements for the maintenance of rates1 and by another law were required to compete4 ,we all thought that the old plan was competition4 ,had the ,government1 through its ,interstate ,commerce ,commission1 vigorously undertaken to enforce the law--passing if necessary1 long before it did1 the ,elkins ,act--,i think we should have seen a correction of these abuses long before the reform came2 but1 as a matter of fact1 neither the ,government authorities nor many of those managing the railroads had yet reached a clear conception of the significance of the abuses which existed and of the proper legal method of uprooting those evils4 ,,getting ,,away ,,from ,,old ,,abuses4 ,upon the resumption of business activity1 in #ahih and #ahii1 and1 later1 following the passage of the ,elkins ,act1 the opportunity was presented1--and in general accepted by the railroads1--to get away from the old methods4 ,while since then there have been some cases of violation of the law1 in the matter of secret arrangements1 yet ,i think that1 at least within the last four or five years1 it is safe to say that they have been of small importance1 and perhaps1 in many of the cases--while a technical violation of the law--were actually not discriminations4 ,i say this advisedly1 so far as the eastern situation is concerned1 because ,i know that the ,pennsylvania ,railroad ,company has not paid a rebate for years1 and it is fair to believe that as that company held its traffic1--in fact1 largely increased it1--without the necessity for such arrangements1 its competitors must have to a large extent pursued the same policy4 ,but not alone in reference to freight rates was there more or less complicity in evil between the people and the railroads1 but let me ask you to consider1 for a moment1 the question of free transportation1 or passes1--whether political or business4 ,it is only within the last year or two that the public conscience has been awakened on this subject4 ,it is true1 the railroads have been abused for several years by those who did not enjoy such favors1 but is the railroad more responsible for the conditions that existed than the ,government of the people1 either in the ,national ,congress or in the ,state legislatures1 and how could it be expected that the legislators in one ,state could feel that they were doing very wrong in accepting passes1 when the legislators of another ,state enjoyed them by law of the ,state8 ,how could members of ,congress be criticised for accepting such privileges1 or the railroads for extending them1 when the ,presidents of the ,united ,states and member of their cabinets1 and other important officers of the ,government not only accepted them1 but practically exacted them1 and1 further1 expected that private cars and private trains should be furnished without charge8 ,upon one occasion within the past two years ,i called upon the ,interstate ,commerce ,commission to ask its assistance in eliminating the pass abuse1 and was very frankly told that it could make no move1 nor take any interest in the subject1 in view of the fact that important public officials including ,senators and the members of ,congress felt that it was not improper for them to accept them4 ,out of this situation grew a large part of the pass abuse1 because1 following the national government and the legislatures1 the large men of business felt that they could properly accept similar privileges4 ,therefore1 ,i repeat1 that while there were great abuses--especially during the period referred to--embittering a large portion of people1 yet the railroads were no more responsible than the people themselves2 and yet1 without doubt it was during this period that the foundation was laid for the feeling of the present day4 ,,railways ,,welcome ,,just ,,regulation4 ,but1 as ,i stated1 we were forced to bear the brunt of our past sins--and more--in the campaign for increasing the powers of the ,interstate ,commerce ,commission4 ,do not misunderstand me4 ,many thoughtful railroad men believed always1 in the value1 both to the railroads and the public1 of an interstate law1 and1 further1 considered it wise to strengthen the power of the ,commission4 ,the distinction1 however1 between what railroad men did and did not believe in1 is very clear4 ,we felt and we feel now that the government is perfectly justified in regulating railroad practices to the extent of preventing discriminations4 ,indeed1 the government should act as a sort of policeman to see to it that the weak and the helpless are protected4 ,if reasonably administered1 the railroads need the law4 ,but the government should not have the right to interfere with the proper play of the natural commercial forces of the nation4 ,the great distinction between police and commercial powers should never be lost sight of4 ,the danger does not lie in the provisions of the new national law4 ,there is no substantial difference between its provisions and those of the old law1 except in respect to the powers of the ,commission4 ,there was no necessity for the new law1 so far as the prevention of the old abuse of secret rates and discrimination was concerned4 ,the operation of this law does not involve any material change in traffic operations of the railroads2 the only danger is as to how the ,commission may exercise their power in influencing reductions in rates1 but even in that respect the railroads have the right of appeal to the courts4 ,it is from various other bills being presented in ,congress in which the immediate danger lies1 showing possible interference by the national government with the operation of railroads1 with respect to the hours of labor of its employes1 systems of signals1 and other methods of operation1 which should properly be left to the railroads themselves4 ,this threatened interference of the federal government is having a powerful and dangerous influence upon the legislatures of the various states1 who apparently are--in a slang term--,seeing ,congress and going them five or six better--in the bills for reduction of state rates1 both passenger and freight2 for increase in taxation1 and all sorts of measures which tend to reduce the earnings and increase the expenses1 and hamper and delay the actual development necessary4 ,it was unfortunate that in the agitation and discussion following the ,president's recommendations1 until the present law was finally adopted1 there was a total misunderstanding upon the part of the public at large as to this attitude of the railroads4 ,it was most unfortunate in that campaign that the principal point of contest upon the part of the railroads was lost sight of--and that is--the objection upon their part not to reasonable amendments to the law1 and not--if the people wanted it--to some increase of power to the ,commission1 but to the attempt to make a commission of five or seven men--in many respects a political body--the final arbiters as to the rates and fares of the railroads4 ,,difficulties ,,under ,,the ,,present ,,law4 ,yet even with the new law on the statute books1 our traffic problems are still with us4 ,we are forbidden by law to make formal agreements as to rates1 yet it is universally recognized that in order to secure an equitable adjustment of rates1 it is absolutely necessary that the traffic managers of the railroads shall confer frequently4 ,it is well known that such conferences are held and must be held to prevent discriminations1 yet no definite agreements can be made4 ,the present law stipulates that there shall be no discrimination by railroads against persons or communities4 ,right here1 however1 the railroads are face to face with a problem all their own1 which is a very serious one1 and that is3 ,how shall a particular railroad prevent discrimination against a community on its own line by some other railroad seeking to specially favor a community on its line8 ,is it not absolutely essential that there should be both an understanding and a virtual agreement on the part of the two railroads concerned for the purpose of protecting both communities8 ,cases of dispute between railroads as to proper rate adjustments have1 indeed1 been referred to ,interstate ,commerce ,commissioners as arbitrators and their findings have been observed4 ,this shows how absolutely vital to all business is the necessity for that co-operation which can only be secured by agreement and conference between all interested parties4 ,the ,president of the ,united ,states recognized the necessity for this fact in his last annual message and recommended that some legislation be passed which would permit agreements between railroads as to rates4 ,we are thus in the presence of this ridiculous situation2 that on the one hand we are being threatened with prosecution by the ,government for violation of the ,sherman ,act in respect to methods which on the other hand the ,president of the ,united ,states and the ,interstate ,commerce ,commissioners agree must be followed in order to properly discharge our responsibility to the public--in other words1 we are between the devil and the deep sea1 or we are damned if we do1 or we are damned if we don't4 ,so much for the moment1 for our national problem4 ,as to ,state regulation3 while not believing--now that we have a national law--that it is necessary or desirable for the public to establish state commissions and special railroad laws1 at the same time1 if the people desire such commissions1 we have no right to look upon such a demand as anarchistic1 but we feel that the working of such commissions will be unsatisfactory to the business interests4 ,,confidence ,,and ,,justice ,,needed4 ,these are but a few of our problems and difficulties4 ,while ,i do not wish to minimize the dangers of the present situation1 while ,i recognize that it is now to some extent1 by adding to the timidity of investors1 retarding our ability to secure funds necessary to make extensions and buy equipment required for the ever-increasing traffic of the country1 and if continued will make it impossible1 yet ,i am firmly of the opinion that the good sense of the people will prevail and the unjust attacks cease4 ,confidence of investors both here and abroad is needed to furnish funds1 and1 if this is seriously shaken1 the prosperity of the railroads1 which are the keystone of the arch of business1 will be destroyed4 ,to avoid these dangers a regime of confidence and fairness on the part of the public toward the railroads must be restored1 and to accomplish this we must place our case1 as it were1 before the legislators and the people and make clear our difficulties and the complications which beset us4 ,few1 after all1 understand the railroad problem1 and we have not made it plain to the people1 either because it was the fashion not to do so1 or because we could not realize that things simple to us were not understood by the public4 ,we must not stop at one statement1 but discourse upon and elucidate every subject which the public misunderstands4 ,let us be frank and take the public into our confidence as fully as is consistent with the proper conduct of our business4 ,let us approach the subject with the feeling that the railroads are not absolutely perfect1 that we have to some extent brought this condition of affairs upon ourselves1 and that we should govern ourselves in the future accordingly4 ,let us undertake to go frankly before the people and present the actual facts in connection with our affairs4 ,,the ,,pennsylvania ,,as ,,an ,,illustration4 ,let me illustrate3 ,the ,pennsylvania ,legislature is in session4 ,numerous bills have been presented1 of a most radical nature4 ,it is our purpose to appear before every committee that will hear us1 and tell our side of the story4 ,i doubt very much if the average legislator--and certainly not the average citizen--understands whom he is injuring in unjust acts towards the railroads4 ,take our company1 for example4 ,it is not a small group of rich capitalists2 it is not ,mr4 ,mc,crea and myself and a few others2 the ,pennsylvania ,railroad is owned by more than #ej1jjj people1 #cj per cent of whom live in ,pennsylvania4 ,forty-seven per cent of our shareholders are women2 and in many cases the dividend is their only source of income4 ,then there are thousands of bondholders2 beyond them are nearly #ajj1jjj employes in the ,state of ,pennsylvania dependent upon the prosperity of the ,pennsylvania ,railroad for their livelihood4 ,therefore1 by the usual computation1 it is safe to say that approximately half a million people--men1 women and children--are actually dependent upon the welfare of this company in the ,state of ,pennsylvania alone4 ,upon the ,pennsylvania ,railroad's prosperity depends the prosperity of the other lines in its system1 and including the employes of these lines1 there are #bjj1jjj men1 who1 with their families1 constitute an army of a million or more4 ,behind them1 again1 are the thousands of men1 with their families1 who produce the coal and other materials which the railroads use4 ,anything that cripples the railroads injures every one of these people4 ,when we make these and other facts plain1 ,i cannot but feel that no injustice will be done4 ,in the meantime1 let us keep our minds well balanced1 and not allow ourselves to believe that chaos is coming2 let us meet the issue fairly and squarely and frankly4 ,while1 therefore1 necessary for the present1 at least1 to suspend many improvements1 let us keep our courage1 trusting to the ultimate good sense of the lawmakers and the people for that sympathy and support to which we feel that we are entitled4 ,,the ,,relation ,,of ,,railroads ,,to ,,the ,,state4 ,,by ,w4 ,m4 ,,acworth1 ,m4 ,a4 ,delivered before the ,british ,association at ,dublin1 ,ireland1 ,september #b1 #aijh4 ,i propose to treat the subject in two aspects2 first1 the history in outline of the relations between railroads and the state in different countries1 and1 second1 the question of the factors which are of primary importance in any consideration of the matter4 ,ever since the year #ahcj1 when the dramatic success of the ,liverpool ,manchester ,railway first revealed to a generation less accustomed than our own to revolutionary advances in material efficiency the startling improvements in transport that railroads were about to effect1 theorists have discussed the question whether state or private ownership of railroads be in the abstract the more desirable4 ,but it is safe to say that in no country has the practical question1 ,shall the state own or not own the railroads8 been decided on abstract considerations4 ,the dominant considerations have always been the historical1 political and economic position of the particular country at the time when the question came up in concrete shape for decision4 ,,belgium4 ,the ,belgian railroads have belonged to the state from the outset1 because they were constructed just after ,belgium separated from ,holland1 and 7the available private capital being in ,holland and not in ,belgium7 ,king ,leopold and his ,ministers felt that1 if the railroads were in private hands1 that would mean in ,dutch hands1 and the newly acquired independence of ,belgium would be thereby jeopardized4 ,within the last few years this history has repeated itself1 and the fact that the bulk of the ,swiss railroad capital was held in ,france and ,germany was one main reason1 if not the main reason1 which induced the ,swiss people to nationalize their railroads4 ,,germany4 ,in ,germany #gj years ago the smaller states were regarded as the personal property of their respective ,sovereigns1 almost as definitely as ,sutherlandshire is the property of the ,duke of ,sutherland4 ,and it was therefore as natural that the ,dukes of ,oldenburg or ,mecklenburg should make railroads for the development of their estates as that the ,duke of ,sutherland should build a railroad in ,sutherland4 ,,australasia4 ,take1 again1 ,australasia4 ,in that region the whole of the railroads1 with negligible exceptions1 now belong to the different state governments1 and the public sentiment that railroads ought to be public property is today so strong that it is impossible to imagine any serious development of private lines4 ,but at the outset the traditional ,english preference for private enterprise was just as strong there as it was at home1 and it was only the fact that the whole of the available private capital was absorbed in the development of the gold fields and that1 therefore1 if railroads were to be built at all1 public credit must be pledged and ,english capital must be obtained1 that caused the state to go into the railroad business4 ,,italy4 ,take1 once more1 the case of ,italy4 ,in the days when ,italy was only a geographical expression1 the various ,italian states experimented with railroad management of all sorts and kinds4 ,when1 after #ahgj1 ,italy was unified1 it was necessary to adopt a national railroad policy1 and the ,italian government instituted an inquiry whose exhaustiveness has not since been approached4 ,the force of circumstances has indeed already compelled the government to acquire the ownership of the railroads1 but the ,commission reported that it was not desirable that the government should work them4 ,the railroads were accordingly leased for a period of #fj years1 running from #ahhd1 to three operating companies1 and it was provided that the leases might be broken at the end of the #bjth or the #djth year4 ,from the very outset a condition of things developed which had not been contemplated when the leases were granted1 and for which the leases made no provision4 ,constant disputes took place between the government and their lessees4 ,capital for extensions and improvements was urgently needed2 neither party was bound to find it2 and agreement for finding it on terms mutually acceptable was impossible of attainment4 ,in the end the government has been forced to cut the knot1 to break the lease at the end of the first #bj years' period1 and for the last two years the ,italian government has operated its own railroads4 ,but it is safe to say that an a priori preference for state management over private management played but scant part in the ultimate decision4 ,,general ,,increase ,,of ,,state ,,control4 ,it is impossible to review1 even in the merest outline1 the railroad history of all the countries in the world1 but the instances already given will serve to illustrate my proposition that the position in each country depends not on abstract considerations1 but on the practical facts of the local situation4 ,yet one cannot look round the world and fail to recognize that the connection between the railroads and the state is everywhere becoming more intimate year by year4 ,whatever have been the causes1 the fact remains that ,italy and ,switzerland have converted their railroads from private to public4 ,in ,germany the few remaining private lines are becoming still fewer4 ,in ,belgium the process is practically completed4 ,in ,austria it is moving steadily in the same direction2 four-fifths of the total mileage is now operated by the state4 ,in ,russia the story would have been the same1 had it not been for the war with ,japan4 ,even in ,france1 whose railroads have a very definite local and national history of their own1 an act for the purchase of the ,western ,railway by the state was passed last year by the ,chamber of ,deputies1 and has now1 after much contention1 been passed by the ,senate within the last few weeks4 ,but it is not without interest to note that1 though a majority both of deputies and of senators supported the bill1 the representatives of the district served by the company were by a large majority opposed to it1 while the commercial community of the whole of ,france1 as represented by the ,chambers of ,commerce1 were almost unanimously hostile4,i ,so far as can be seen at present1 the purchase of the ,western ,railway by the state is not likely to be made a precedent for the general nationalization of the ,french railroads4 ,still1 the broad fact remains that a series of railroad maps of the continent of ,europe1 constructed at intervals of ten years1 would undoubtedly show an ever-increasing proportion of state lines1 and that the last of the series would exhibit the private lines as very far below the state lines both in extent and in volume of traffic4 ,a word ought to be said of ,holland1 not only because ,holland is a country with free institutions like our own1 but because the railroad position of ,holland is unique4 ,the railroads of that country were built partly by the state and partly by private enterprise1 but the working has always been wholly in private hands4 ,some ten years ago1 however1 the ,dutch government bought up the private lines and rearranged the whole system4 ,the main lines of the country are now leased to two operating companies1 so organized that each company has access to every important town1 and railroad competition is now practically ubiquitous throughout ,holland4 ,so far there are no signs that the ,dutch people are otherwise than satisfied with their system4 ,now compare this with ,france4 ,the ,french government1 though it has hitherto1 except on the comparatively unimportant state railroads in the southwest of the country1 stood aloof from the actual operation1 has always kept entire control of railroad construction and of the allocation of new lines between the several companies4 ,and the ,french government has proceeded on a principle diametrically opposed to the ,dutch principle4 ,in ,france railroad competition has1 as far as possible1 been definitely excluded1 and the various systems have been made to meet1 not1 as in ,holland1 at the great towns1 but at the points where the competitive traffic was1 as near as might be1 a negligible quantity4 ,now that questions of competition and combination are to the fore in ,england1 and seem likely to give very practical occupation to ,parliament in the session of #aiji1 the precedents on both sides are perhaps not without interest4 ,,america4 ,when we turn from the continent of ,europe to the continent of ,america the position of affairs is startlingly dissimilar4 ,the railroads of ,america far surpass in length those of the continent of ,europe1 while in capital expenditure they are equal4 ,state ownership and operation of railroads on the continent of ,america is as much the exception as it is the rule in ,europe4 ,in ,canada there is one comparatively important state railroad1 the ,intercolonial1 about #a1ejj miles in length4 ,though its earnings are quite considerable--about #bj per mile per week--it barely pays working expenses4 ,i may add that in all the voluminous literature of the subject ,i have never seen this line cited as an example of the benefits of state management4 ,there is another small line1 in ,prince ,edward ,island1 which is worked at a loss2 and a third1 the ,temiskaming ,northern ,ontario ,railway1 owned not by the ,dominion but by the ,provincial government1 which is too new to afford any ground for conclusions4 ,the ,federal government of the ,united ,states has never owned a railroad1 though some of the individual states did own1 and in some cases also work1 railroads in very early days4 ,they all burnt their fingers badly4 ,but the story is so old a one that it would be unreasonable to found any argument on it today4 ,in ,mexico1 of which ,i shall have more to say directly1 the state owns no railroads4 ,as for ,central ,america1 ,costa ,rica and ,honduras have some petty lines1 which are worked at a loss4 ,guatemala had a railroad till #aijd1 when it was transferred to a private company4 ,nicaragua has also leased its lines4 ,colombia owns and works at a profit1 all of which is said to be devoted to betterment1 #bd miles of line4 ,in ,south ,america1 ,peru and ,argentina own1 as far as ,i am aware1 no railroads4 ,the ,chilian government owns about #a1fjj miles out of the #c1jjj miles in the country4 ,needless to say private capital has secured the most profitable lines4 ,the government railroad receipts hardly cover the working expenses4 ,the ,brazilian government formerly owned a considerable proportion of its railroad network of nearly #aa1jjj miles4 ,financial straits forced it some years ago to dispose of a large part to private companies1 to the apparent advantage at once of the taxpayer1 the shareholder and the railroad customer4 ,about #a1hjj miles of line are still operated by the government1 the receipts of which1 roughly speaking1 do a little more than balance working expenses4 ,but it may be broadly said that the present ,brazilian policy is adverse to state ownership and in favor of the development of the railroad system by private enterprise4 ,,the ,,united ,,states ,,situation4 ,the question of public ownership and operation was1 however1 raised very definitely in the ,united ,states only two years ago1 when ,mr4 ,bryan made a speech stating that his ,european experience had convinced him that it was desirable to nationalize the railroads of the ,united ,states4 ,for many weeks after1 ,mr4 ,bryan's pronouncement was discussed in every newspaper and on every platform1 from ,maine to ,california4 ,practically1 ,mr4 ,bryan found no followers1 and today1 though he is the accepted candidate of the ,democratic party for the ,presidency1 the subject has been tacitly shelved4 ,to some extent this may have been due to the ludicrous impossibility1 if ,i may say so with all respect for a possible ,president1 of ,mr4 ,bryan's proposals4 ,in order1 presumably1 not to offend his own ,democratic party1 the traditional upholders of the rights of the several states1 he seriously suggested that the ,federal government should work the trunk lines1 and the respective state governments the branches4 ,even if anybody knew in every case what is a trunk line and what is a branch1 the result would be to create an organism about as useful for practical purposes as would be a human body in which the spinal cord was severed from the brain4 ,mr4 ,bryan's proposal was never discussed in detail3 public sentiment throughout the ,union was unexpectedly unanimous against it1 and it is safe to say that the nationalization of the railroads of the ,united ,states is not in sight at present4 ,but though nationalization is nowhere in ,america a practical issue1 everywhere in ,america the relations between the railroads and the state have become much closer within the last few years4 ,canada a few years ago consolidated its railroad laws and established a ,railway ,commission1 to which was given very wide powers of control both over railroad construction and operation and over rates and fares for goods and passengers4 ,argentina has also moved in the same direction4 ,in the ,united ,states1 not only has there been the passage by the ,federal ,congress at ,washington of the law amending the original ,act to ,regulate ,commerce and giving much increased powers to the ,interstate ,commerce ,commission1 besides various other ,acts dealing with subsidiary points1 such as hours of railroad employes1 but scores1 if not hundreds1 of ,acts have been passed by the various state legislatures4 ,with these it is quite impossible to deal in detail2 many of them impose new pecuniary burdens upon the railroad companies1 as1 for instance1 the obligation to carry passengers at the maximum rate of a penny per mile4 ,all of them1 speaking broadly1 impose new obligations and new restrictions upon the railroad companies4 ,not a few have already been declared unconstitutional1 and therefore invalid1 by the law courts4 ,and when the mills of ,american legal procedure shall at length have finished their exceedingly slow grinding1 it is safe to prophesy that a good many more will have ceased to operate4 ,but for all that1 the net result of state and ,federal legislation in the sessions of #aijf and #aijg will unquestionably be that even after the reaction and repeal1 which1 thanks to the ,wall street panic of last year1 is now in progress1 the railroads of the ,united ,states will in the future be subject to much more rigid and detailed control by public authority than there has been in the past4 ,the reign of railroad despotism1 more or less benevolent1 is definitely at an end2 the reign of law has begun4 ,it is only to be regretted that the quantity of the law errs as much on the side of excess as its quality on the side of deficiency4 ,,the ,,mexican ,,situation4 ,apart from its interest as a quite startling example of how not to do it1 the recent railroad legislation of the ,united ,states is only valuable as an indication of the tendency1 universal in all countries1 however governed1 for the state to take a closer control over its railroads4 ,much more interesting as containing a definite political ideal1 worked out in detail in a statesmanlike manner1 is the recent railroad legislation of ,mexico4 ,one may be thought to be verging on paradox in suggesting that ,england1 with seven centuries of parliamentary history1 can learn something from the ,republic of ,mexico4 ,but for all that ,i would say1 with all seriousness1 that ,i believe the relation between the state and the national railroads is one of the most difficult and important questions of modern politics1 and that the one valuable and original contribution to the solution of that question which has been made in the present generation is due to the ,president of the ,mexican ,republic and his ,finance ,minister1 ,seor ,limantour4 ,broadly1 the ,mexican situation is this3 ,the ,mexican railroads were in the hands of foreign capitalists1 ,english mainly so far as the older lines were concerned1 ,american in respect to the newer railroads1 more especially those which constituted continuations southwards of the great ,american railroad systems4 ,the foreign companies1 whether ,english or ,american1 naturally regarded ,mexico as a field for earning dividends for their shareholders4 ,the ,american companies further1 equally naturally1 tended to regard ,mexico as an annexe and dpendance of the ,united ,states4 ,if they thought at all of the interest of ,mexico in developing as an independent self-contained state1 they were bound to regard it with hostility rather than with favor1 and such a point of view could hardly commend itself to the statesmen at the head of the ,mexican government4 ,yet ,mexico is a poor and undeveloped country1 quite unable to dispense with foreign capital2 and1 further1 it was at least questionable whether ,mexican political virtue was sufficiently firm-rooted to withstand the manifold temptations inherent in the direct management of railroads under a parliamentary rgime4 ,under these circumstances the ,mexicans have adopted the following scheme3 ,for a comparatively small expenditure in actual cash1 coupled with a not very serious obligation to guarantee the interest on necessary bond issues1 the ,mexican government have acquired such a holding of deferred ordinary stock in the ,national ,railroad ,company of ,mexico as gives them1 not1 indeed1 any immediate dividend on their investment1 but a present control in all essentials of the policy of the company1 and also prospects of considerable profit when the country shall have further developed4 ,the organization of the company as a private commercial undertaking subsists as before4 ,a board of directors1 elected in the ordinary manner by the votes of shareholders1 remains as a barrier against political or local pressure in the direction of uncommercial concessions1 whether of new lines or of extended facilities or reduced rates on the old lines2 but--and here is the fundamental difference between the new system and the old--whereas under the old system the final appeal was to a body of shareholders with no interest beyond their own dividend1 the majority shareholder is now the ,government of ,mexico1 with every inducement to regard the interests1 both present and prospective1 of the country as a whole4 ,,irrefragable ,,theory ,,of ,,public ,,ownership4 ,public ownership of railroads is in theory irrefragable4 ,railroads are a public service2 it is right that they should be operated by public servants in the public interest4 ,unfortunately1 especially in democratically organized communities1 the facts have not infrequently refused to fit the theories1 and the public servants have allowed1 or been constrained to allow1 the railroads to be run1 not in the permanent interest of the community as a whole1 but in the temporary interest of that portion of the community which at the moment could exert the most strenuous pressure4 ,the ,mexican system1 if it succeeds in establishing itself permanently--for as yet it is only on its trial--may perhaps have avoided both ,scylla and ,charybdis4 ,faced with a powerful but local and temporary demand1 the government may be able to reply that this is a matter to be dealt with on commercial lines by the board of directors4 ,if1 on the other hand1 permanent national interests are involved1 the government can exercise its reserve power as a shareholder1 can vote the directors out of office1 and so prevent the continuance of a policy which would in its judgment be prejudicial to those interests1 however much it might be to the advantage of the railroad as a mere commercial concern4 ,,state ,,control ,,or ,,ownership4 ,the history whose outline ,i have now very briefly sketched shows1 ,i think1 that whereas there is everywhere a tendency towards further state control1 the tendency towards absolute state-ownership and state-operation is far from being equally universal4 ,i shall have a word to say presently as to the reasons why ,america shows no signs of intention to follow the example of continental ,europe4 ,meanwhile it is well to notice that ,american experience proves also the extreme difficulty of finding satisfactory methods of control4 ,sir ,henry ,tyler said some five-and-thirty years ago in ,england1 in words that have often been quoted since1 ,if the state can't control the railroads1 the railroads will control the state2 and ,president ,roosevelt has again and again in the last few years insisted on the same point4 ,the ,american people1 he said in effect1 must work out a satisfactory method of controlling these great organizations4 ,if left uncontrolled1 there will be such abuses and such consequent popular indignation that state-ownership will become inevitable1 and state-ownership is alien to ,american ideas1 and might cause very serious political dangers4 ,perhaps some of my hearers may remember ,macaulay's graphic description of the passion that was aroused by ,charles ,james ,fox's proposed ,india ,bill2 it was described as a ,bill for giving in perpetuity to the ,whigs1 whether in or out of office1 the whole patronage of the ,indian government4 ,the objection felt by ,american statesmen to handing over their railroads to the ,national government--for ,i think it may be taken for granted that if they were nationalized it would have to be wholly under ,federal management1 and that the separate states could take no part in the matter--is in principle the same4 ,there are something like a million and a half men employed on the railroads of the ,united ,states1 say roughly #g or #h per cent4 of the voters4 ,americans feel that rival political parties might bid against each other for the support of so vast and homogeneous a body of voters2 that the amount of patronage placed at the disposal of the executive government for the time being would be enormous2 and that the general interests of the nation might be sacrificed by politicians anxious to placate--to use their own term--particular local and sectional interests4 ,how far this fear1 which is undoubtedly very prevalent in the states1 is justified by the history of state railroads in other countries is a question exceedingly difficult to answer4 ,dealing with state railroads in the lump1 it is easy to point to some against which the charge would be conspicuously untrue4 ,to take the most important state railroad organization in the world1 the ,prussian system1 no one1 ,i think1 can fairly deny that it has been operated--in intention at least1 if not always in result--for the greatest good of the greatest number4 ,but then ,prussia is ,prussia1 with a government in effect autocratic1 with a civil service with strong esprit de corps and permeated with old traditions1 leading them to regard themselves as the servants of the king rather than as candidates for popular favor4 ,an ,american statesman1 ,charles ,francis ,adams1 wrote as follows more than #cj years ago3 ,in applying results drawn from the experience of one country to problems which present themselves in another1 the difference of social and political habit and education should ever be borne in mind4 ,because in the countries of continental ,europe the state can and does hold close relations1 amounting even to ownership1 with the railroads1 it does not follow that the same course could be successfully pursued in ,england or in ,america4 ,the former nations are by political habit administrative1 the latter are parliamentary4 ,in other words1 ,france and ,germany are essentially executive in their governmental systems1 while ,england and ,america are legislative4 ,now the executive may design1 construct or operate a railroad2 the legislative never can4 ,a country therefore with a weak or unstable executive1 or a crude and imperfect civil service1 should accept with caution results achieved under a government of bureaus4 ,nevertheless1 though conclusions cannot be adopted in the gross1 there may be in them much good food for reflection4 ,,control ,,by ,,democracy1 ,,or ,,ownership ,,by ,,autocracy4 ,i am inclined to think that the effect of the evidence is that the further a government departs from autocracy and develops in the direction of democracy1 the less successful it is likely to be in the direct management of railroads4 ,belgium is far from being a pure democracy2 but compared with ,prussia it is democratic1 and compared with ,prussia its railroad management is certainly inferior4 ,popular opinion in ,belgium seems at present to be exceedingly hostile to the railroad administration2 official documents assert that1 while the service to the public is bad1 the staff are scandalously underpaid1 and yet that the railroads are actually not paying their way4 ,there was1 it is true1 till recently an accumulated surplus of profits carried in the railroad accounts1 but the official figures have been recently revised1 and the surplus is shown to be non-existent4 ,the ,swiss experiment is too new to justify any very positive conclusions being drawn from it2 but this much is clear3 the state has had to pay for the acquisition of the private lines sums very much larger than were put forward in the original estimate2 the surplus profits that were counted on have not been obtained in practice2 the economies that were expected to result from unification have not been realized2 the expenditure for salaries and wages has increased very largely2 and so far from there being a profit to the ,federal government1 the official statement of the railroad administration is that1 unless the utmost care is exercised in the future1 the railroad receipts will not cover the railroad expenditure4 ,the ,italian experiment is still newer4 ,it would not be fair to say that it proves anything against state management2 but ,i do not think that the most fervid ,etatist would claim that1 either on the ground of efficiency or on the ground of economy1 it has so far furnished any argument in favor of that policy4 ,if we wish to study the state management of railroads by pure democracies of ,anglo-,saxon type1 we must go to our own ,colonies4 ,my own impressions1 formed after considerable study of the subject and having had the advantage of talking with not a few of the men who have made the history1 ,i hesitate to give4 ,it is easy to find partisan statements on both sides2 for example1 in a recent article in the ,nineteenth ,century1 entitled ,the ,pure ,politics ,campaign in ,canada1 ,i find the following quotation from the ,montreal ,gazette--a paper of high standing--dated ,may #bg1 #aijg3 ,every job alleged against the ,russian autocracy has been paralleled in kind in ,canada4 ,first1 there is the awful example of the ,intercolonial ,railway1 probably as to construction the most costly single-track system in ,north ,america1 serving a good traffic-bearing country1 with little or no competition during much of the year1 and in connection with much of its length no competition at all1 but so mishandled that one of its managers1 giving up his job in disgust1 said it was run like a comic opera4 ,some years it does not earn enough to pay the cost of operation and maintenance 7,i may interpolate that its gross earnings per mile are equal to those of an average ,united ,states railroad71 and every year it needs a grant of one1 two1 three or four million dollars out of the ,treasury to keep it in condition to do at a loss the business that comes to it4 ,when land is to be bought for the road1 somebody who knows what is intended obtains possession of it1 and turns it over to the government at #dj1 #ej and #ajj per cent advance4 ,this is established by the records of ,parliament and of the courts of the land4 ,,african ,,cape ,,government ,,railroads4 ,probably no one outside the somewhat heated air of ,canadian politics is likely to believe this damning accusation quite implicitly2 but even if there were not a word of truth in it--and that the management of the ,intercolonial ,railway is1 for whatever cause1 bad1 appears1 ,i think1 clearly from the public figures--it is bad enough that such charges should be publicly made and apparently believed4 ,let me quote now from a document of a very different type referring to a colony very far distant from ,canada3 ,a memorandum relative to ,railroad ,organization1 prepared at the request of the ,railroad ,commissioners of the ,cape ,government ,railways1 by ,sir ,thomas ,r4 ,price1 formerly general manager of those railroads1 and now general manager of the ,central ,south ,africa 7i4 e41 ,transvaal and ,orange ,river7 ,railways1 dated ,johannesburg1 ,february #bb1 #aijg4 ,the drawbacks in the management of the railroads in the ,cape that call for removal arise from the extent to which1 and the manner in which1 the authority of ,parliament is exercised4 ,they are twofold in their character1 viz43 7#a7 ,the practice of public authorities1 influential persons1 and others bent on securing concessions or other advantages which the general manager has either refused in the conscientious exercise of his functions1 or is not likely to grant1 making representation to the ,commissioner 7as the ministerial head of the ,government71 supplemented by such pressure1 political influence1 or other means as are considered perfectly legitimate in their way1 and are best calculated to attain the end applicants have in view4 7,many members of ,parliament act similarly in the interests of the districts1 constituents1 or railroad employes in whom they happen to be interested4 ,it is by no means unknown for the requests in both classes of cases to coincide somewhat with a critical division in ,parliament--present or in prospect--or otherwise something has occurred which is regarded as irritating to the public or embarrassing to the ,government1 and the desire to minimize the effect by some conciliatory act is not unnatural47 7#b7 ,the extent to which the fictitious1 and often transitory1 importance which a community or district manages to acquire obscures 7under the guise of the ,colony's welfare7 the consideration of the railroad and general interest in the ,colony as a whole4 7,during the earlier period of my railroad service in the ,cape ,colony few things impressed me more1 coming as ,i had from a railroad conducted on strictly business lines1 than the extent to which the conduct of railroad affairs was influenced by certain conditions4 ,nor was this impression lessened afterwards when1 in the course of a conversation on the matter1 ,sir ,charles ,elliott mentioned to me that he had more than once told a late railway commissioner1 ,the ,government is powerful1 but mentioning the town and authority is more powerful still47 ,i do not regard it as open to doubt that the ,colony as a whole has suffered severely in consequence1 the inland portions of the ,colony particularly so2 and that the need for a remedy is pressing if the railroads are to be conducted as a business concern for the benefit of the ,colony4 ,the necessity for the railroads and their administration being removed from such an atmosphere1 and treated as a most valuable means of benefiting the ,colony as a whole1 while not neglecting the interests of a district 7but not subordinating the welfare of the whole ,colony thereto71 is pressing4 ,that there should be an authority to refer to in case of real necessity1 where the decision or action of the general manager is not regarded as being in the public interests1 is also clear4 ,but it is equally manifest that the ,commissioner or the ,government of the day1 with political or party consideration always in view1 is not the proper court of reference4 ,there can be little doubt that in the ,cape ,colony political considerations have influenced the adoption of new lines and their construction--many1 if not most of them of an unprofitable character--without sufficient inquiry or information1 often with scanty particulars1 and possibly contrary to the advice of the officer afterwards entrusted with the construction and working of the line4 ,a material change is imperatively necessary in this respect1 if only to insure the solvency of the ,colony4 ,,victorian 7,,australia7 ,,railroads4 ,it is sometimes conceded that improper exercise of political influence may be a real danger where railroads are managed under a parliamentary rgime by a ,minister directly responsible to ,parliament2 but that difficulty1 it is said1 can be got over by the appointment of an independent ,commission entirely outside the political arena4 ,history does not altogether justify the contention4 ,the last report of the ,victorian ,state ,railways gives a list of seven branches1 with an aggregate length of #df miles1 constructed under the ,commissioner rgime at a cost of #chg1jjj1 which are now closed for traffic and abandoned because the gross receipts failed even to cover the out-of-pocket working expenses4 ,it is not alleged1 nor is it a fact1 that those lines were constructed in consequence of any error of judgment on the part of the ,commissioners4 ,but in truth it is inherently impossible to use a ,commission to protect a community against itself4 ,in theory a ,commission might be a despot perfectly benevolent and perfectly intelligent2 in that case1 however1 it can hardly be said that the nation manages its own railroads4 ,but of course any such idea is practically impossible1 because despots1 however benevolent and intelligent1 cannot be made to fit into the framework of an ,anglo-,saxon constitution4 ,in practical life the ,railway ,commission must be responsible to someone1 and that someone can only be a member of the political government of the day4 ,,competition ,,has ,,ceased ,,to ,,regulate4 ,i have indicated what in ,america1 where the subject is much more carefully considered than here1 is regarded as a great obstacle to a state-railroad system2 but ,i have pointed out also that it is quite possible that statesmen fully alive to the dangers may yet find themselves constrained to risk them unless some satisfactory method of controlling private railroad enterprise can be found4 ,i do not think it can be considered that this has been done in ,england at the present time4 ,in the main we have relied on the force of competition to secure for us reasonable service at not unreasonable rates2 and as ,i still cherish a long-formed belief that ,english railroads are on the whole among the best1 if not actually the best1 in the world1 ,i am far from saying that competition has not done its work well4 ,but competition is an instrument that is at this moment breaking in our hands4 ,within quite a few years the ,south ,eastern ,railway was united with the ,chatham2 the ,great ,southern has obtained a monopoly over a large part of ,ireland2 in ,scotland the ,caledonian and the ,north ,british1 the ,highland and the ,great ,north have in very great measure ceased to compete4 ,if the present proposals for the working union of the ,great ,eastern1 the ,great ,northern and the ,great ,central go through1 competition in the ,east of ,england will be absolutely non-existent from the ,channel to the ,tweed4 ,and one can hardly suppose that matters will stop there4 ,in fact1 since this address was in type a comprehensive scheme of arrangement for a long term of years between the ,london ,north ,western and the ,midland has been announced4 ,we must1 ,i think1 assume that competition1 which has done good work for the public in its day1 is practically ceasing to have any real operation in regulating ,english railroads4 ,,how ,,shall ,,government ,,regulate8 ,for regulation1 therefore1 we must fall back on government2 but how shall a government exercise its functions8 ,regulation may be legislative1 judicial1 executive1 or1 as usually happens in practice1 a combination of all three4 ,but we may notice that1 as ,mr4 ,adams points out1 in ,anglo-,saxon countries it is the ,legislature and the ,judicature that are predominant2 whereas in a country like ,france1 which though a democracy is bureaucratically organized1 it is executive regulation that is most important4 ,now1 the capacity of the ,legislature to regulate is strictly limited2 it can lay down general rules2 it can1 so to speak1 provide a framework1 but it cannot decide ad hoc how to fit into that framework the innumerable questions that come up for practical decision day by day4 ,the capacity of the law courts to regulate is even more strictly limited4 ,for not only is it confined within the precise limits of the jurisdiction expressly conferred upon it by the ,legislature1 but further1 by the necessity of the case1 a court of law can only decide the particular case brought before it2 a hundred other cases1 equally important in principle1 and perhaps more important in practice1 may never be brought before it at all4 ,even if the court had decided all the principles1 it has no machinery to secure their application to any other case than the one particular case on which judgment was given4 ,there was a case decided #cj years ago by our ,railroad ,commission1 the principle of which1 had it been generally applied throughout the country1 would have revolutionized the whole carrying business of ,great ,britain4 ,it has not been so applied1 to the great advantage1 in my judgment1 of ,english trade4 ,further1 the great bulk of the cases which make up the practical work of a railroad3 ,what is a reasonable rate1 having regard to all the circumstances1 present and prospective1 of the case8 ,would it be reasonable to run a new train or to take off an old one8 ,would it be reasonable to open a new station1 to extend the area of free cartage1 and the like8--all these are questions of discretion1 of commercial instinct4 ,they can only be answered with a ,probably on the whole1 not with a categorical ,yes or ,no1 and they are absolutely unsuitable for determination by the positive methods of the law court with its precisely defined issues1 its sworn evidence1 and its rigorous exclusion of what1 while the lawyer describes it as irrelevant1 is often precisely the class of consideration which would determine one way or other the decision of the practical man of business4 ,it seems to me1 therefore1 that both in ,england and in ,america we must expect to see in the near future a considerable development of executive government control over railroads4 ,this is not the place to discuss in detail the form that control should take1 but one or two general observations seem worth making4 ,the leading example of executive control is ,france2 in that country the system is worked out with all the ,french neatness and all the ,french logic4 ,but it is impossible to imagine the ,french principle being transplanted here4 ,for one thing1 the whole ,french railroad finance rests upon the guarantee of the government4 ,the ,french government pays1 or at least is liable to pay1 the piper1 and has1 therefore1 the right to call the tune4 ,the ,english government has not paid and does not propose to pay1 and its claim to call the tune is therefore much less4 ,morally the ,french government has a right--so far at least as the railroad shareholders are concerned--to call on a ,french company to carry workmen at a loss2 morally1 in my judgment at least1 the ,english government has no such right4 ,but there is a further objection to the ,french system2 the officers of the ,french companies have on their own responsibility to form their own decisions1 and then the officers of the ,french government have1 also on their own responsibility1 to decide whether the decision of the company's officer shall be allowed to take effect or not4 ,the company's officer has the most knowledge and the most interest in deciding rightly1 but the government official has the supreme power4 ,the system has worked--largely1 ,i think1 because the principal officers of the companies have been trained as government servants in one or other of the great ,engineering ,corps1 des ,mines or des ,ponts et ,chausses4 ,but it is vicious in principle1 and in any case would not bear transplanting4 ,what we need is a system under which the responsibility rests1 as at present1 with a single man 7let us call him the general manager71 and he does what he on the whole decides to be best1 subject however to this3 that if he does what no reasonable man could do1 or refuses to do what any reasonable man would do1 there shall be a power behind to restrain1 or1 as the case may be1 to compel him4 ,and that power may1 ,i think1 safely be simply the ,minister--let us call him the ,president of the ,board of ,trade4 ,for1 be it observed1 the question for him is not the exceedingly difficult and complicated question1 ,what is best to be done8 but the quite simple question1 ,is the decision come to which ,i am asked to reverse so obviously wrong that no reasonable man could honestly make it8 ,and even this comparatively simple question the ,president would not be expected to decide unaided4 ,he will need competent advisory bodies4 ,railroad history shows two such bodies that have been eminently successful--the ,prussian ,state ,railway ,councils and the ,massachusetts ,railroad ,commission4 ,wholly unlike in most respects1 they are yet alike in this3 their proceedings are public1 their conclusions are published1 and those conclusions have no mandatory force whatever4 ,and it is to these causes that1 in my judgment1 their success1 which is undeniable1 is mainly due4 ,let me describe both bodies a little more at length4 ,there are in ,prussia a number 7about ten ,i think7 of ,district ,railway ,councils1 and there is also one ,national ,council2 they consist of a certain number of representative traders1 manufacturers1 agriculturists1 and the like1 together with a certain number of government nominees2 and the railroad officials concerned take part in their proceedings1 but without votes4 ,the ,councils meet three or four times a year1 their agenda paper is prepared and circulated in advance1 and all proposed changes of general interest1 whether in rates or in service1 are brought before them1 from the railroad side or the public side1 as the case may be4 ,the decision of the ,council is then available for information of the ,minister and his subordinates1 but as has been said1 it binds nobody4 ,the ,massachusetts ,railroad ,commission is a body of three persons1 usually one lawyer1 one engineer and one man of business1 appointed for a term of years by the ,governor of the state4 ,originally the powers of this ,commission were confined to the expression of opinion4 ,if a trade1 or a locality1 or indeed a single individual1 thought he was being treated badly by a ,massachusetts railroad1 he could complain to the ,commission2 his complaint was heard in public2 the answer of the railroad company was made there and then2 and thereupon the ,commissioners expressed their reasoned opinion4 ,the system has existed now for more than #cj years1 and it is safe to say that1 with negligible exceptions1 if the ,commission expresses the opinion that the railroad is in the right1 the applicant accepts it2 if the ,commission says that the applicant has a real grievance1 the railroad promptly redresses it on the lines which the ,commission's opinion has indicated4 ,the success of the ,commission in gaining the confidence of both sides has been so great that of late years its powers have been extended1 and it has been given1 for example1 authority to control the issue of new capital and the construction of new lines4 ,but on the question with which we are specially concerned here1 the conduct of existing railroad companies as public servants1 it can still do nothing but express an opinion2 and it may be added that the ,commission itself has more than once objected to any extension of that power4 ,mr4 ,adams1 from whom ,i have already quoted1 was the first ,chairman of the ,commission4 ,he has described their position as resting on the one great social feature which distinguishes modern civilization from any other of which we have a record1 the eventual supremacy of an enlightened public opinion4 ,that public opinion is supreme in this country1 few would be found to deny2 that public opinion in railroad matters is enlightened1 few would care to assert4 ,but given the enlightened public opinion1 one can hardly doubt that it will secure not merely eventual but immediate supremacy4 ,in truth1 as ,bagehot once pointed out1 a great company is of necessity timorous in confronting public opinion4 ,it is so large that it must have many enemies1 and its business is so extended that it offers innumerable marks to shoot at4 ,it is much more likely to make1 for the sake of peace1 concessions that ought not to be made than it is to resist a demand that reasonable men with no personal interest in the matter publicly declare to be such as ought rightly to be conceded4 ,to sum up in a sentence the lesson which ,i think the history we have been considering conveys1 it is this3 ,closer connection than has hitherto existed between the state and its railroads has got to come1 both in this country and in the ,united ,states4 ,hitherto in ,anglo-,saxon democracies neither state ownership nor state control has been over-successful4 ,the best success has been obtained by relying for control1 not on the constable1 but on the eventual supremacy of an enlightened public opinion4 ,nearly #bj years ago1 in the pages of the ,economic ,journal1 ,i appealed to ,english economists to give us a serious study of what the ,americans call the transportation problem in its broad economic and political aspects4 ,since then half-a-dozen partisan works have appeared on the subject1 not one of them in my judgment worth the paper on which it is printed2 but not a single serious work by a trained economist4 ,and yet such a work is today needed more than ever4 ,let me once more appeal to some of our younger men to come forward1 stop the gap1 and enlighten public opinion4 ,,footnote3 ,i ,further1 it is common knowledge that the ,senate only passed the bill 7and that by a majority of no more than three7 because ,m4 ,clemenceau insisted that he would resign if it was not passed1 and1 though they disliked nationalization much1 they disliked ,m4 ,clemenceau's resignation more4 ,,railway ,,nationalization ,,by ,,sir ,,george ,s4 ,,gibb4 ,a paper read at a meeting of the ,royal ,economic ,society1 on #ajth ,november1 #aijh4 ,railway nationalization has for many years occupied the minds of economic and political students and the practical activities of statesmen in many countries and in ,english colonies4 ,it has been regarded here as a remote possibility which might some day or other come to the front for practical discussion4 ,but quite recently it would have been thought to be as incredible that any responsible politicians should be considering proposals for purchasing our railways for the ,state as that any substantial number of persons could be found who would advocate an abandonment of the fundamental principle that there should be no taxation of imports into ,england except for revenue purposes4 ,in these days1 however1 public opinion moves suddenly and rapidly4 ,the despised fallacy of yesterday rises as the creed of to-day4 ,there are already many indications that1 before long1 there will be a numerous and influential1 though perhaps a somewhat heterogeneous party1 who will urge that immediate steps should be taken to nationalize our railways4 ,the test1 and the only test1 to be applied to proposals for railway nationalization is whether railways owned by the ,state and worked directly by ,government officials would be better and more efficient than railways owned and worked by private corporations1 and whether1 after taking account of all the effects of the change1 upon each class1 each district1 each interest1 the net result would increase the wealth and well-being of the community1 and be a permanent benefit to the public4 ,we may1 ,i think1 start from the assumption that railway proprietors as such have no interest in opposing nationalization4 ,the value of their property1 whether measured in terms of capital value or in terms of future income1 estimated on a fair basis1 would1 it is assumed1 be fully provided for in the gigantic financial operation which railway purchase would involve4 ,there is no legal flaw in the title of railway proprietors4 ,they enjoy the fundamental rights attached by our law to absolute property1 subject only to the performance of obligations definitely prescribed by ,acts of ,parliament4 ,i think1 therefore1 that we may discuss this subject of railway nationalization without apprehension that the change1 if it were adopted by the deliberate judgment of the community1 would be accompanied by anything in the nature of confiscation of existing rights4 ,this might not be the intention or the wish of all who think that our railways should be nationalized4 ,probably some extreme ,socialists would like to transfer railways to the ,state without giving what1 in our judgment1 would be adequate compensation to existing owners4 ,their aim is the substitution of a new social polity for that which exists1 in which antiquated ideas of private property would have no place4 ,but that is only a phase of their creed which condemns it to sterility4 ,it is not the small band of ,socialist zealots1 but the majority of the nation that we have to consider in estimating the risk of anything being done in the nature of confiscation4 ,those who join the party for nationalizing will1 no doubt1 find themselves in strange company4 ,there can be little doubt that the movement up to the present has been mainly ,socialistic4 ,a trader1 who advocates nationalization because he hopes that he might be able to transfer to somebody else1 perhaps he does not very much care whom1 some part of the burden of the charges which he has to pay for railway carriage1 will find that his next neighbor at a meeting of the party is a man who has joined for quite other reasons1 with the object1 indeed1 of ultimately seizing for the ,state some part of his neighbor1 the trader's1 property1 which the latter was reckoning to increase at the expense of1 amongst others1 his neighbor the ,socialist1 through the plan of railway nationalization4 ,but the homogeneity of the party need not concern us1 nor the question whether each and every member of it would be actuated by a single-minded desire for the public good4 ,the forces making for honesty and equity in the treatment of existing interests would1 ,i think1 so overwhelmingly outweigh the influences tending in a contrary direction that we need not complicate the question by importing into it a discussion as to whether adequate compensation should or would be paid to existing owners in the event of the ,state deciding to acquire their property4 ,fair and adequate compensation for existing interests may be taken for granted4 ,but although compensation can be paid for property1 it cannot be paid to the general community who would suffer in the event of the administration and operation of railways under ,state management being less efficient than under private management4 ,if a mistake be made1 all would suffer1 and their sufferings would not1 and could not1 be mitigated by compensation in any form4 ,it may be useful at the outset to consider what has led to the question of railway nationalization in this country being discussed4 ,the origin and the causes of those movements in public opinion which bring about great constitutional and social changes are frequently most difficult to trace1 especially by contemporary observers4 ,for a full understanding of such movements1 it is necessary to wait for the historian's point of view1 and to survey a wider field than is possible whilst the events are occurring1 when much of the material for final judgment as to the causes in operation is concealed in an undisclosed future4 ,that there is a movement in progress tending to the nationalization of railways in ,england is apparent to every thoughtful observer of the times4 ,but whence does this movement come1 and what are its principal causes8 ,we are able to identify some of them1 less able to weigh the relative importance of each1 still less able to foretell the ultimate share which each will have on the future course of development1 which will depend on the direction taken by other movements in public opinion which1 at the moment1 may seem to be entirely independent of all connection with the particular movement we are considering4 ,i will refer to a few of the causes which seem to me to be most prominently at work1 but ,i will not attempt to state them in the order of their importance4 ,i will merely enumerate those which are plainly discernible as existing in some shape or other4 ,the first ,i will name1 though it may not be the most influential1 is the existence of a certain amount of dissatisfaction with the present state of railway administration4 ,i suppose that if railway services were as good as possible1 charges as cheap as possible1 profits as high as possible1 and the management as perfect as it is possible for railway management to be1 and these conditions were generally admitted to exist1 the natural instinct to leave well alone would prevent any proposal for nationalization from obtaining a hearing4 ,it must be conceded that there is a certain feeling of dissatisfaction1 superficial and indefinite though it be1 to which advocates of nationalization1 whose schemes originate in considerations which have no relation either to the excellence or to the imperfections of railway arrangements1 are able to appeal in the pursuit of their aims4 ,it is not that many people really think that our railways do not1 as a whole1 serve the public well1 whatever individuals may say in moments of haste4 ,hut complaints are sufficiently numerous to have a real importance as an influence on public opinion4 ,and1 unfortunately1 their influence is to a large extent independent of their justice4 ,the existence of criticism1 which1 after all1 is only another name for difference of opinion1 is inevitable1 and probably would be inevitable under the most perfect system of railway management which the world has seen or ever can see4 ,state railways would not be immaculate4 ,the nature of railway business lays it open1 to an exceptional extent1 to the unpopularity which unavoidably gathers round every institution on which there is universal dependence4 ,providence itself does not wholly escape unpopularity4 ,no other industry is comparable with the railway industry in the close dependence upon it of the vast majority of the people4 ,the necessity for transport services penetrates more frequently and more deeply into the lives and habits of the people than any of the other prime necessities of civilization4 ,the need for transport is a tyranny4 ,all tyrants are unpopular4 ,and the tyranny of a need is apt to beget1 by an illogical transposition of ideas1 a dislike of those who are responsible for supplying the need4 ,people are conscious of grievances1 or1 let us say1 unsupplied wants4 ,they cannot measure the range of possibility which limits the supply of those wants or remedies for those grievances4 ,they constantly wish for the impossible1 but have not sufficient knowledge to distinguish between the possible and the impossible4 ,defects which cannot be remedied are generally condemned with more emphasis than those which are due to mismanagement4 ,it is irrelevant to consider whether the dissatisfaction to which ,i have referred is justified or not4 ,whether well or ill founded1 it must be set down as one of the causes of the movement for nationalization4 ,the second cause ,i would mention is a belief1 growing from a suspicion into a conviction under the stimulus of repeated failures in control experiments1 that it is impossible for any ,government1 by any legislative or executive action in any form1 to exercise useful and effective control over railways4 ,people turn in despair from ideas of regulation and control to ideas of ownership4 ,the third cause is the prevalence of that feeling which1 for want of a better name1 ,i will call district jealousy4 ,the competition of privately-owned railways undoubtedly does create inequalities4 ,it would be mere affectation to pretend that the railway accommodation and facilities afforded to all places and all districts are equal in merit and value4 ,the less favored districts see other districts enjoying superior facilities4 ,they do not allow for differences in conditions which1 in some cases1 explain and justify the differences of service4 ,i say in some cases1 because it would be impossible to deny that in other cases the comparative inferiority of railway facilities cannot be explained away by inevitable determining conditions4 ,hence district jealousy arises and a desire for uniformity1 such uniformity as it is hoped a ,state system of railways would give4 ,the fourth cause ,i would name is the example of other countries4 ,this is affecting men's judgments with great force4 ,we are slow to be moved by foreign example4 ,but there is an increasing tendency to submit to international influences1 and foreign example in this matter does1 on the whole1 point to national railways becoming the generally accepted system4 ,the fifth cause is the one which1 ,i think1 has more to do with the initiation of the discussion of nationalization schemes than any other cause4 ,this is the general tendency of the time to ,socialistic experiments4 ,if there were no ,socialists1 and no ,socialism in the thought of the age1 there would1 we may safely conclude1 be no talk of nationalization of railways4 ,it is the ,socialistic propaganda1 and the influence which that propaganda has had on many minds1 which more than anything else has brought the question of the nationalization of railways within the range of practical discussion4 ,the sixth cause is the anxious search for more revenue for the ,state4 ,national expenditure has grown to such enormous and alarming dimensions that the provision of revenue to meet it has become a serious and urgent difficulty4 ,a ,chancellor of the ,exchequer on the lookout for cash has not been able to resist the attraction of railways as a source of revenue for the ,state4 ,he has noted the various influences at work which are tending to bring the question of railway nationalization to the front1 has looked with envy at the large revenue which ,prussian railways yield to the ,state1 and has at least gone the length of asking himself the question1 within the hearing of reporters1 whether he ought not to encourage and to take advantage of a state of opinion which might conceivably be worked upon so as to create a majority prepared to approve the principle of ,state ownership of what might be a highly lucrative ,state monopoly4 ,the mileage of railways open for traffic in the ,united ,kingdom at the end of each of the last four decades up to #aijg is shown in the following table3 ,mileage open ,increase in ,average increase ,year4 for traffic4 ten years4 per annum4 #ahgg #ag1jgg -- -- #ahhg #ai1egh #b1eja #bej4a #ahig #ba1dcc #a1hee #ahe4e #aijg #bc1ajh #a1fge #afg4e ,the growth has been slow and decreases with each decade4 ,it is probably true that the period of construction has nearly come to an end4 ,future additions to the mileage are not likely to be either large or of substantial importance4 ,this rather indicates the present as a suitable time for considering a change of system4 ,the considerations which are applicable to what ,i may call the age of construction are very different from those which become most important in the age of operation4 ,it would probably be accepted as indisputable that in a country like ,england1 where capital is plentiful and enterprise active1 the system of leaving the construction of railways to private enterprise is the best system4 ,whatever may be thought as to the respective merits of private and public ownership1 it cannot be denied that private enterprise does take more risk than any ,government is likely to do1 except under pressure of military necessities4 ,the hope of gain is the strongest motive for enterprise1 and this desire operates more strongly on the private citizen than it does on the ,state4 ,the growth of railway mileage during the age of construction in any country is promoted by the constant influence and moving force of those incentives which act on capitalists4 ,the spur of competition is always in active operation4 ,then there are the very powerful professional influences which are constantly at work to induce capitalists to spend their money on works and enterprises which afford professional work1 even if they do not subsequently provide dividends4 ,theoretically2 no doubt1 railways promoted by private enterprise tend to the favoring of particular localities at the expense of other localities4 ,perhaps it is right that the stronger should grow at the expense of the weaker1 but1 at all events1 it is inevitable4 ,you cannot expect private competitors to think of anything but their own interests4 ,and if this be so1 you cannot expect from a system in which private interests predominate the same consideration of general design1 from the point of view of the interests of the whole country1 as from a system which places public in front of private interests4 ,it is difficult to deny that the miscellaneous and unequal activities of private enterprise fail in the absence of some central guidance to produce the best results so far as harmony and completeness of design are concerned4 ,in ,england railway construction has not been1 as in ,america1 almost entirely free from any public control4 ,we have had the control1 ,i think the most salutary and useful control of ,parliament1 so far as it has gone1 both over location and capitalization4 ,but it has not gone far4 ,although there has been a certain amount of control1 there has been practically no guidance4 ,the control1 under the system of private bill legislation1 has been very ineffectual except as regards capitalization4 ,it has been mainly negative2 never constructive4 ,all that ,parliament could practically do was to prohibit the making of particular railways which aroused opposition from some landowning or railway interests powerful enough to oppose and wealthy enough to pay the heavy costs of opposition4 ,private interests have been protected1 but the general interest has1 in the main1 been ignored4 ,but whilst conceding that it would have been a great advantage if the vagaries of private enterprise had been more restrained by some prudent1 general guidance1 ,i think that the chief public requirement during the age of construction is that as much mileage as possible should be constructed2 and ,i submit1 as a true conclusion on the point ,i am discussing1 that1 as regards the age of construction1 at all events1 ,england has derived incalculable benefit from the fact that the railway system has been made by private enterprise4 ,but the problem of working the railway system after it has been constructed is1 ,i admit1 essentially different from the problem of securing its construction4 ,my subject is not one which admits of discussion except on very general lines4 ,our views on it must necessarily be formed under the influence of the opinions we hold as to the legitimate functions of the ,state4 ,it has been truly said that no country has ever adopted ,state ownership of railways from theoretical considerations4 ,in each and every instance there were some practical reasons1 based on military necessities or concrete and pressing economic conditions to meet which ,state ownership was accepted1 not as a system desirable in itself1 but as an expedient which1 in the circumstances1 was considered to be the best practical solution of difficulties which stood in the way of the satisfactory development of railways4 ,but whilst agreeing with this as a true historical statement1 ,i doubt whether theory can be entirely excluded from a statement of the genesis of national railway systems4 ,in a country where ,individualist opinions prevail1 as ,i think at the present time they do in ,england1 no temptations1 no pressure of circumstances short of extreme national emergency1 would induce people to face the evils which the ,individualist knows must result from the intrusion of ,state action into matters of trade4 ,this is theory1 although those who are influenced by it may think that it is founded on practical experience4 ,on the other hand1 those persons who wish to secure trading profits for the ,state even at the cost of taking commercial risks1 or who1 when difficulties and obstacles arise in commercial development1 resort to the powers of the ,state to overcome them1 either by the imposition of taxes on the general community in the interests of a class1 or by handing over to ,state officials the direction of an industry1 instead of relying on the skill1 self-reliance1 enterprise1 energy1 and character of the people1 are ,socialists at heart1 whether they know it or not1 and are actuated by the radical theory of a creed which1 perhaps1 most of them would disavow4 ,but1 after all1 the question is not whether ,state purchase would be a step in the ,socialist direction1 but whether it would be a step in the right direction4 ,why should we change8 ,are we suffering from intolerable evils from which there is no other way of escape1 or is there some great national benefit to be derived from the change8 ,the general case for nationalization1 as put forward by its advocates1 rests on very few arguments1 and it is not1 ,i think1 unfair to describe these as being mainly assumptions1 the accuracy of which it is impossible to verify4 ,i may summarize a few of these3-- 7#a7 ,government management would be more efficient and less costly than private management4 7#b7 ,government management would primarily regard the interests of the community and of the country as a whole1 and the substitution of that condition for the existing system under which the interests of private trading concerns take first place in the thoughts and efforts of those responsible for management would have the effect of securing a more equal and more satisfactory development of the resources of the country1 and1 as one writer expresses it with more than the usual proportion of assumption in his statement1 trade would be stimulated under equitable1 reasonable1 and uniform systems of rates4 7#c7 ,the change would result in the removal of most of the serious complaints made against the existing administration of railways4 7#d7 ,those who refuse to look upon the matter as mainly a commercial problem think and hope that new means would be found for the satisfaction of the social needs of the nation if the railways were at the disposal of the ,government4 7#e7 ,experience of the economy resulting from large combinations in other industries is invoked in support of the proposal to get rid of the separate administrations of private railways4 ,it is said that the advantage of production on the largest scale by a single corporation in place of production by a number of smaller units is being verified by the experience of nearly every important trade and industry4 ,the principle has been recognized in the history of railway development in this country by the amalgamation of large numbers of small railways into the great railway systems which we now see1 and it is argued that a further step should now be taken in the same direction4 ,but a step involving the creation of so great a monopoly as further large amalgamations would involve can only1 it is thought1 be taken by the ,state4 ,in this country the largest railway system under one management is no greater than about #b1jjj miles in length1 whereas in the ,united ,states of ,america railway systems covering about #ae1jjj miles are now under the control of a single ,president and a ,board of ,directors4 ,it is said1 therefore1 that modern methods of administration have made it feasible to direct the #bc1jjj miles of railway in the ,united ,kingdom efficiently and successfully by means of one comprehensive organization1 and probably if there is to be one organization there would be no difference of opinion that the single organization to own1 control1 and manage the railways must be the ,state4 ,most of the principal objections are1 ,i think1 covered by the following list3-- 7#a7 ,state management would be less efficient than management under private enterprise4 7#b7 ,the extension of ,government patronage1 by placing at the disposal of ,government such a vast number of appointments to lucrative offices4 7#c7 ,the risk of political corruption1 not only in connection with the exercise of patronage1 but also in ordinary administration in the settlement of questions relating to charges1 wages1 and services4 7#d7 ,the danger that interested parties would1 by political pressure1 compel the ,state to expend public money on unremunerative lines and unremunerative services4 7#e7 ,the contraction of the available field for private enterprise1 and hence the weakening of the foundation of all individual and national progress4 7#f7 ,the introduction of serious dangers in connection with labor disputes between the ,government and the large body of railway servants4 ,the subject has not been sufficiently long under public discussion to make it easy to state fully the hopes of its supporters and the fears of its opponents4 ,probably both are exaggerated4 ,if one examines the complaints made against the existing railway system1 it is obvious that many of these must exist under any system1 whilst some are the necessary accompaniments of every system into which competition enters4 ,but if competition is discarded in favor of monopoly it does not need argument to show that this merely means a change from the evils of competition to the evils of monopoly4 ,no one would deny that each system contains inherent and characteristic evils4 ,the evil of competition is waste2 the evils of monopoly are stagnation and the restriction of freedom4 ,hitherto1 for the regulation of railways1 reliance has been placed on two factors--competition and control4 ,parliamentary action and public opinion have veered about from one to the other1 and the absence of clear principle in the policy of the ,legislature has introduced evils which a more logical and consistent adherence either to the policy of free competition on the one hand1 or to the policy of strict control on the other1 would have avoided4 ,that some regulation is necessary all would admit4 ,railways sell transportation as a commodity1 but the nature of the business makes it impossible to secure the conditions of absolutely free competition as in the case of other industries4 ,hence the necessity for control1 but every plan of control that has been tried has proved practically inoperative and ineffective mainly because it has endeavored to leave competition in operation1 and it is the evils which necessarily arise from competition which lead to most of the complaints against railways4 ,the inevitable weakness of the dual system of competition and control is that control checks competition just where it would be useful in the public interest1 and competition nullifies control just where it could be advantageously applied4 ,under no system could we expect railways to be free from complaints4 ,they arise equally from the nature of the business and the nature of the customers4 ,but with a view to seeing whether ,state ownership would remedy the complaints that exist1 let us try to understand as clearly as possible what the complaints are4 ,the ,chancellor of the ,exchequer 7,mr4 ,lloyd-,george71 speaking to a deputation of traders in #aijf1 when he was ,president of the ,board of ,trade1 said that he was impressed with the great and growing discontent with the whole system4 ,now what are the causes of the present discontent8 ,is it great8 ,is it growing8 ,these are questions very difficult to answer4 ,but there are some useful data available for the answer4 ,the way has been made plain and easy for complainants against railways4 ,every encouragement and every facility has been afforded to them4 ,a special ,court has been created--the ,railway and ,canal ,commission--the constitution of which was carefully framed so as to encourage anyone with a grievance against railways to hope that he would get a sympathetic hearing of his case4 ,the applications to that ,court were so few that those people who cannot bring themselves to believe that the number of real1 as distinct from imaginary1 grievances against railways are remarkably few1 said that the public were deterred from bringing complaints forward by the expense of litigation before the ,railway ,commissioners4 ,so1 to render the path of the complainant still easier1 a procedure was introduced which is unique for simplicity and cheapness4 ,all1 without distinction1 who had any complaint or grievance of any sort or kind against any railway or canal company1 were invited to come and lay the same before a ,department of ,government1 the ,board of ,trade1 who practically promised to use their influence to secure an amicable adjustment of any differences4 ,this procedure is so simple1 so sweeping1 so all-embracing1 so encouraging to complainants1 and has1 on the whole1 been exercised by the ,board of ,trade with so much tact and success1 that its records should supply the information we are seeking4 ,in view of these efforts to get every aggrieved or discontented person to come forward and disclose his complaint1 is it possible to imagine that there are now any concealed complaints8 ,it is often said that traders will not complain1 that they are afraid of rousing the hostility of those terrible tyrants1 the railways1 whose power in ,england1 at any rate1 whatever it may be in ,america1 is ludicrously exaggerated4 ,it is true that a sensible trader who has a fair case does not fly with it to the ,board of ,trade4 ,he submits it to the railway officers in the ordinary daily course of business1 and almost invariably gets the matter adjusted4 ,but ,i do not believe that there is any trader who would be deterred from submitting a complaint to the ,board of ,trade by any feeling of fear4 ,on the contrary1 traders in these days suffer from an excess of boldness4 ,if a trader is dissatisfied with any railway charge1 he simply refuses to pay1 and only those who have experience of the daily conduct of railway business can know how common1 and unfortunately how effective1 this remedy is4 ,the ,board of ,trade make an annual report to ,parliament of all complaints made to them under their conciliation jurisdiction1 and ,i think the contents of these reports may fairly be relied on as presenting a complete view of the kind of complaints that exist against railways4 ,a useful table is given in the tenth report of the ,board of ,trade1 issued in ,july last1 showing the total number of complaints for ten years1 classified according to their nature as follows3 ,no4 per ,total4 annum4 #a4 ,rates unreasonable or excessive in themselves or which were unreasonably increased #gae #ga4e #b4 ,undue preference #ceb #ce4b #c4 ,sundry complaints #eaj #ea ----- ----- #a1egg #aeg4g ,of the total number forty-eight were complaints against canal companies1 but these are not separated in the classification4 ,surely the above is a remarkable table1 considering the vast aggregate of business and the facilities offered for complaints4 ,only #a1ebi complaints against railways1 or an average of about #aec per annum1 have been found to exist4 ,then look at the results of these complaints4 ,these are given in another table1 and only #egc complaints1 or an average of #eg per annum1 are entered as resulting in the complainants finally expressing themselves as dissatisfied4 ,services for which the aggregate payment amounts to #abj millions sterling per annum are rendered1 and yet there are only an average of fifty-seven cases per annum of dissatisfied complainants to the most open1 most favorable1 and least costly tribunal in the world for hearing complaints against railways4 ,now let us look at the nature of the complaints made4 ,would ,state ownership remedy any of these complaints8 ,i set aside the #eaj cases of miscellaneous complaints about delay in transit and other minor matters1 because it is obvious that complaints about such matters would not disappear under any conceivable system of railway management4 ,practically all other complaints group themselves under two heads3 #a4 ,excessive rates4 #b4 ,undue preference4 ,the complaint that railway rates are excessive generally takes the shape of a comparison of the charges on some foreign railway4 ,now1 ,i confess that it is very difficult to meet such allegations1 because of the difficulty of presenting all the conditions of which account must be taken in order to make a fair and sound comparison1 and also owing to the absence of adequate data or materials in the published statistics of ,english railways4 ,a general allegation that ,english rates are higher than those charged in some countries cannot even be discussed1 because the factors needed for the comparison are not available4 ,are they in fact higher is a question the answer to which must precede discussion as to reasons and explanations4 ,the facts in regard to the average length of haul1 the average rate per ton mile for different kinds of traffic1 or the average charge per passenger mile1 and general information as to the nature of commodities carried1 speed of transit1 and services rendered for the rates charged must be ascertained before any comparison is possible1 and these facts are not ascertainable for ,english railways4 ,my belief is that having regard to the capital expended on construction of railways1 ,english railway rates are not excessive for the services rendered1 and ,i greatly doubt whether1 after making proper allowances for differences in capital cost of railway accommodation1 and for other essentially different conditions1 rates in any country are lower1 comparing like with like1 than railway rates in ,england4 ,this is an issue of fact4 ,it lies at the threshold of any inquiry into the subject of railway rates1 and ,i confess ,i do not see how much progress can be made with any discussion which turns on assertions as to the relative dearness of ,english railway rates until adequate materials are available for a sound comparison4 ,it is true beyond question that ,english railways have cost more to construct than the railways of any other country4 ,the capital expenditure of all railways in ,england is represented by the figure of about #ef1jjj per mile as compared with about #ba1jjj1 which is the corresponding figure for ,german railways1 and about #ab1jjj per mile for ,american railways4 ,railway proprietors in ,england are not responsible for the high capital cost4 ,they were forced by law1 and by custom powerful as law1 to pay monstrously inflated values for their lands4 ,burden upon burden has been heaped upon them by the action of the ,legislature1 by the requirements of ,government departments1 and by the exactions of public opinion4 ,they have borne heavy losses in being compelled to spend capital without regard to their ability to secure adequate return upon it1 and assuredly no reckoning is due from them to the public in this matter4 ,the reverse would be more true4 ,the total capitalization of railways in the ,united ,kingdom in the year #aijg1 as given in the ,board of ,trade ,returns1 was #a1bid millions sterling1 of which #aif millions represents nominal additions4 ,the net earnings 7some of which1 however1 arose from miscellaneous sources independent of the operation of the railways7 amounted to #dd1idj1jjj1 or #c4dg per cent on the nominal capital4 ,out of a total of #a1bid millions sterling1 #acf millions of loan and preferential capital received interest or dividends in excess of #d per cent4 ,this presumably arose from the insecurity of capital1 involving the payment of a high rate of interest or dividend4 ,one hundred and eighty-one millions of ordinary capital received dividends in excess of #d per cent4 per annum4 ,the capital receiving interest or dividends in excess of #d per cent4 per annum is1 therefore1 #cag millions1 or #bd4e per cent4 of the total4 ,it cannot be said on these figures that the interest received by those who provided the capital for the railways is excessive4 ,but would it be possible for ,state railways to reduce the amount included in railway rates for interest and dividends8 ,it cannot be denied that our present system does involve the needless duplication of railway accommodation--the inevitable waste of competition4 ,there is the constant endeavor to divert traffic1 the corresponding effort to keep it4 ,capital is wasted1 but public facilities are increased4 ,the public could certainly secure by monopoly the saving of waste1 but only at the cost of losing the advantages1 such as they are1 of getting more than they pay for4 ,i suspect that on a broad and comprehensive view these advantages are not worth to the community the waste of capital involved in providing them4 ,but it is rather late in the day to adopt this view4 ,enormous waste has already been incurred1 and it must be remembered that this drain on the resources of the nation is not likely to be so serious in the future as it has been in the past1 even if the system of leaving railways to private enterprise is not abandoned4 ,the private ownership of railways provides for the absorption of the wastage of capital in a manner which would be impossible under ,state ownership4 ,eighty-eight millions of the capital expenditure on railways goes without dividend1 and #aea millions has to be content with a return less than #b per cent per annum4 ,although this undoubtedly represents a loss to the community1 the loss is distributed4 ,it falls on those who voluntarily spent their money in the hope of gain1 and lost it4 ,the ,state cannot lose capital in this way4 ,all expenditure incurred by the ,state would be represented by money borrowed on the public credit1 and the interest would have to be paid in full1 whether the expenditure proved remunerative or the reverse4 ,that there would be savings1 and large savings1 under ,state management ,i would not deny1 but that is because the railways would be worked as a monopoly1 and not because they would be worked by the ,state4 ,the same and still larger economies in working could be effected under private enterprise if competition were abandoned in favor of universal combination or monopoly4 ,the whole question depends on the waste of competition4 ,each railway company works for its own route4 ,the result is that unnecessary train mileage is run1 and train loads are lessened4 ,the secret of success1 the foundation of all economy in railway working1 lies in securing the largest possible train loads4 ,this is a simple rule1 but it embodies a universal truth4 ,if those responsible for the handling and carriage of railway traffic could work with a single eye to economical results1 and in all cases forward traffic by the routes which yielded the best working results1 great economies could undoubtedly be effected4 ,this consideration does indicate that a source of improvements in railway results would be open to a railway system under ,government management which is not available for privately owned railways competing with one another4 ,and in fairness one must admit that this source of economy obtainable only under the conditions of monopoly must be set down as a point to the credit of ,state ownership4 ,many of the complaints against railway rates as excessive are really1 when analyzed1 complaints of undue preference4 ,they are based on comparisons with other rates1 and1 in nearly every case1 it is the factor of competition which lies at the root of the difficulty4 ,this is the natural result of our mixed system of competition and control4 ,in principle all would admit that there should be equal treatment on railways4 ,but what is and what ought to be equality are questions in regard to which there is much room for difference of opinion4 ,to what extent does the law really require equality8 ,the ,railway and ,canal ,traffic ,act1 #ahhh1 enacts in substance that a railway company shall not make any difference in the treatment of traders which shall amount to an undue preference4 ,it permits the grouping of places situated at various places from any point of destination or departure of merchandise1 provided that the distances shall not be unreasonable1 and that the rates charged and the places grouped together shall not be so grouped as to create an undue preference4 ,now1 in this legislation there is no definite or tangible principle4 ,the ,legislature has not really made up its mind how traders should be treated4 ,it simply says that any preference given to one trader over another shall not be undue1 but the interpretation of the word undue is left open4 ,the prohibition of undue preference only applies to the actions of one company on its own railway1 and1 therefore1 covers but a small part of the matter4 ,a trader desiring to have his goods sent to some market which is prejudiced by the competition of goods carried to the same market from some other place by some other railway which1 for some reason or other1 good or bad1 gives better treatment to its customers--a prejudice far more likely to happen1 in fact1 than one arising from differences in treatment on the same railway--is not protected or assisted by any legislation4 ,the question may be asked whether national railways would or could cure this somewhat indefinite position8 ,if railways were nationalized1 would it not be necessary1 and would it be practicable to settle the principles to be applied in treating different districts in competition with one another8 ,at present there are no principles if the districts are served by different railways4 ,if one railway serves two districts1 the law provides that such railway shall not mete out unequal treatment so as to constitute undue preference1 whatever that may mean1 but if these two competing districts are served by different railways1 the law shrinks from any interference4 ,now1 in practically every case the favorable treatment complained of1 due or undue1 as the case may be1 is forced upon the railway company by competition in some shape or other4 ,it may be competition of other carriers by sea or by land1 or it may be the necessity for enabling one district to compete with another less favorably situated4 ,such consideration for the commercial needs of districts in relatively advantageous positions is permitted and encouraged when it is afforded by different railways1 though rendered difficult when one railway serves the competing districts4 ,what would ,state railways do8 ,if the law of undue preference now operative within the limits of particular railway systems became1 by reason of ,state ownership1 applicable to all railways1 there would be a stupendous disturbance of existing trading conditions4 ,instead of ,state purchase diminishing the complaints of undue preference1 it would be the signal for the commencement of fierce conflicts between districts4 ,it would be necessary to face the question whether and to what extent geographical advantage of position should be recognized in fixing railway rates4 ,the centers of production and consumption in ,england have been fixed away back in commercial history1 and from a railway point of view these have largely to be taken as facts beyond control4 ,facilities for reaching the populous centers of consumption are of vital importance to producers and importers4 ,would ,state railways be compelled by the pressure of interested landowners and others to fix rates for agricultural produce and manufactured articles and for import and export trade rigidly in proportion to distance8 ,it is probable that a bitter controversy would arise on the question1 and discontent with the railway arrangements which have gradually1 and with very general approval1 been established in ,england1 instead of being lessened1 would be greatly extended if we embarked on the experiment of ,state ownership4 ,would the management of railways by ,government officials be1 on the whole1 better than management by the officers of private corporations working for profit8 ,that is the question which lies at the root of the subject which we are discussing4 ,so far as ,i am concerned1 ,i have no inclination to jibe at the management of those enterprises which are conducted by the ,state and municipal bodies4 ,i do not think that the postal services would be better managed if they were under private control1 probably not so well4 ,municipal tramways show the weakness of public management1 chiefly in the tendency towards fixing charges at figures which sacrifice the interests of ratepayers to the interests of the working classes who possess votes1 but who generally occupy houses in respect of which they do not directly pay rates4 ,that there would be very grave risks in substituting ,state management for commercial management of railways must1 ,i think1 be generally admitted4 ,but some of the principal arguments against municipal trading do not seem to me to apply to the working of railways by the ,state4 ,of course1 the objection of those who think that no public authority should become directly responsible for the management of any commercial undertaking is as valid against ,state working of railways as against municipal working of tramways1 or municipal supply of electricity for light and power4 ,in both cases there is a restriction of the field of private enterprise1 and that is enough for the out-and-out ,individualist4 ,he is convinced1 on general grounds1 that all commercial undertakings should be left exclusively to private enterprise4 ,but those who are not prepared to settle such matters on any general theory1 and who prefer to weigh the advantages and disadvantages in each case1 see that many of the reasons against municipal trading cannot fairly be urged against the national ownership of railways4 ,municipal trading is indefensible because it unfairly competes with private traders4 ,competition in commerce must be fair competition on equal terms1 otherwise it fails to secure any of the economic advantages which do undoubtedly flow from the free competition of private traders4 ,a commercial undertaking must be worked for a commercial profit4 ,a municipality raises money on public credit1 and thus gains an advantage over every private competitor4 ,it also fixes scales of charges and rates of wages without reference1 or1 at all events1 without exclusive reference1 to considerations of profit1 and thus makes it impossible for any competing trader to earn a legitimate commercial profit4 ,and to make it possible to do this it uses the power of taxation1 and levies rates on the competing traders themselves1 so that the municipal business can be carried on without the commercial profit which the private trader must earn in order to live4 ,no one can say that this is fair competition4 ,then municipal bodies are1 from their composition1 unsuitable for carrying on commercial business4 ,their organization cannot be adapted to commercial management4 ,the individuals who serve on these bodies have neither the time nor1 as a collective body1 the capacity for managing the business on which they embark with efficiency and success4 ,the difference in results due to the difference between good and bad management is paid for out of the rates4 ,these considerations do not1 however1 apply with equal force to the ,state management of railways4 ,the ,state would have a complete and universal monopoly4 ,there would be no private competition left1 except1 of course1 competition by sea or by tramway or any other mode of conveyance which can compete with railways4 ,then there would not be1 it may be assumed1 any body like a municipal council who would practically interfere with the management4 ,there might be ,advisory ,councils1 like the ,prussian ,state ,railway ,councils1 and1 of course1 there would be a ,minister of ,state responsible to ,parliament for the railway administration1 and ,parliament itself1 already1 one may remark in passing1 clogged and overburdened with work4 ,but it is certain that whatever the details of the organization adopted might be1 the whole of the management would practically be left to the expert permanent officials of the railways4 ,there is no reason to doubt that railway officers would serve the ,state with as much loyalty and with as great a measure of success as they now serve the proprietors4 ,instead of being responsible to boards of directors and shareholders1 they would be responsible to a certain number of officers of ,state1 probably1 indeed necessarily1 to a large extent recruited from their own ranks1 and ,i do not think that the change would result in much practical difference so far as the work of those who really carry out the duties of management are concerned4 ,the only difference would be that these officers would have in view that they were working for the ,state instead of for shareholders4 ,there can be little doubt that if railways were nationalized they would be used as a field for many kinds of social experiments4 ,the combination of philanthropy with business is generally regarded with suspicion1 but the conversion of the railway manager into a social reformer would1 ,i think1 arouse serious and legitimate alarm4 ,the certainty which we now possess that the action of any railway company1 whether it be wise or foolish in itself1 is wholly commercial in its motives and its aims1 is a valuable safeguard4 ,but if railway policy were to become the medium for the promotion of social or even economic theories under the guidance of politicians1 would not this be a most alarming peril to trading and industrial interests8 ,one group might insist1 by political pressure1 that the standard of wages should be maintained at a higher level than could be commercially justified4 ,another group1 or many groups1 might devote their efforts to securing the construction of railways in districts which could not support them with sufficient traffic1 with the result of burdening the railway system with many unremunerative branches for which either traders1 passengers1 or the taxpayers throughout the country would have to pay4 ,the policy of others would be to make suburban railways at enormous cost1 and run cheap trains to serve the population resident in large cities1 regardless whether such railways or trains were self-supporting or not4 ,in this policy they would have the ardent and influential support of the owners of suburban land1 who would rejoice in the increase of their rents1 brought about by the expenditure of public money in creating railway facilities on uncommercial terms4 ,these are not fanciful dangers4 ,they are the results which we may feel sure would inevitably follow the nationalization of our railways1 and the advantages to be gained from ,state management would need to be very great to compensate for these burdens4 ,another aspect of the question which requires the gravest consideration is that which concerns the position of the ,state as an employer of labor4 ,there are upwards of #fbj1jjj railway officers and servants4 ,the ,state would become the direct employer of that huge army1 and would have to settle all questions relating to hours1 wages1 and other conditions of service4 ,if a railway company is unable to settle differences with its men the ultimate resort of the men is the withdrawal of their labor1 whilst the company are free to employ other men who are willing to accept their conditions of employment4 ,any railway strike on a large scale is a dire calamity to trade and to the public1 but if one were compelled to consider the possibility of a general strike on a national railway system1 even the deplorable results which accompany strikes on privately-owned railways would seem comparatively insignificant4 ,probably a railway department of ,government would not urge the adoption of compulsory arbitration1 if they were themselves concerned1 with as much equanimity as they do in the case of strikes on private railways4 ,it is true that in this matter the advocates of ,state railways can point to the comparative absence of labor conflicts in connection with the services now under ,government control1 but municipal undertakings have not been so successful in avoiding labor disputes1 and in many cases have secured even the degree of immunity from such conflicts which they enjoy by the concession of terms of employment which constitute heavy burdens on the ratepayers4 ,it seems to me that the danger of serious labor disputes cannot be put aside1 and ,i confess that ,i am unable to see any safe way of meeting the objection to ,state ownership on the ground that the ,state ought to limit1 as far as possible1 its liability to become directly concerned in such disputes4 ,in conclusion1 ,i would say that ,i have felt unable to take up a partisan attitude on the question4 ,for many years past both my studies on railway subjects and my practical experience have led me to a convinced belief in the advantages of well-regulated monopoly1 and ,i am unable wholly to disapprove of a scheme which would secure for the country the advantages of a system of well-regulated monopoly in which ,i believe1 even although it should come in the guise of ,state ownership4 ,competition1 in my judgment1 creates more evils than it cures1 especially the half-hearted and imperfect competition which exists in ,england so far as railways are concerned1 which cannot be regarded as free competition on a commercial basis4 ,i recognize that it is impracticable to secure unification or any very extensive or far-reaching combinations of railways under our system of private ownership4 ,the public would not tolerate uncontrolled railways under private management1 and ,i doubt whether any form of control which has yet been devised1 or is likely to be devised1 combined with partial competition1 can give entirely satisfactory results4 ,that there are grave dangers and risks in the public ownership of railways ,i fully admit2 indeed1 so grave are they1 that ,i think he would be a very bold minister who would venture to bring forward1 under ,government sanction1 a proposal for the nationalization of our railways4 ,the existence of such a huge amount of ,government patronage would open the door to political corruption4 ,the existence of such an enormous body of ,government servants possessing the franchise--and ,i confess it seems to me impracticable to hope that any measure could be carried subject to disfranchisement of ,government servants--would imperil the financial stability of the railway system1 and introduce new and very serious sources of weakness and danger into the body politic4 ,the risk of loss from the charging of unduly low rates under pressure from the influential body of traders seeking to enrich themselves at the expense of the general community seems to me a risk which no thoughtful man can ignore4 ,no expedients for checking and restraining political influence so that it could not reach or sway the decision of the officers of ,state responsible for railway management seem to me practicable under our democratic constitution4 ,if the nation owns the railways1 the nation must take all the risks of ,state ownership1 and we could only trust that the existing purity of our politics and the common sense1 honorable character1 and long experience in self-government of the ,english people would suffice to protect the commonwealth from these perils resulting in serious harm4 ,but whatever may be the issue of the consideration of the question of ,state purchase of railways1 ,i am prepared to believe that ,english railways will continue1 whether under ,state management or under private management1 to deserve the praise which ,mr4 ,w4 ,m4 ,acworth expressed in his recent address as ,president of the ,economic ,section of the ,british ,association in ,dublin1 by saying that in his judgment--after1 ,i may remind you1 a fuller study of railway conditions in all countries of the world than has been given to the subject of many men in ,england--that ,english railways are1 on the whole1 among the best1 if not actually the best1 in the world4 ,,concerning ,,advances ,,in ,,railway ,,rates ,,february #h1 #aiji4--,ordered to be printed4 ,mr4 ,,elkins1 from the ,committee on ,interstate ,commerce1 submitted the following ,,adverse ,,report4 ,to accompany ,s4 #dbc4 ,the ,committee on ,interstate ,commerce1 to which was referred ,senate bill #dbc ,to amend section #f of an act entitled ',an act to regulate commerce1' approved ,february fourth1 eighteen hundred and eighty-seven1 and acts amendatory thereof1 respectfully reports said bill adversely1 and recommends its indefinite postponement4 ,the amendment proposed to section #f will be found on page #d1 commencing on line #aj1 and ending on page #e1 on line #h1 of the bill1 as follows3 ,provided further1 ,that at any time prior to the expiration of the notice herein required to be given of a proposed increase of rates1 fares1 or charges1 or of joint rates1 fares1 or charges1 any shipper or any number of shippers1 jointly or severally1 may file with the commission a protest1 in writing1 against the proposed increase in whole or in part1 stating succinctly the grounds of his or their objections to the proposed change4 ,the filing of such protest shall operate to continue in force the then existing rate or rates1 fare or fares1 charge or charges1 proposed to be changed and protested against as aforesaid1 until the reasonableness of the rate or rates1 fare or fares1 charge or charges1 proposed to be substituted shall have been determined by the commission4 ,upon the filing of such protest1 a copy thereof shall be mailed by the ,secretary of the commission to the carrier or carriers proposing the change and thereafter the commission shall proceed to hear and determine the matter in all respects as it is required to do by sections thirteen and fifteen of this act1 in case of a complaint made because of anything done or omitted to be done by any common carrier1 as provided in said section thirteen2 but throughout the proceeding1 the burden of proof shall be on the carrier proposing the change to show that the rate1 fare or charge proposed to be substituted is just and reasonable4 ,an amendment was offered in the committee which would modify the original proposition of the amendment1 by leaving it to the discretion of the ,interstate ,commerce ,commission1 upon the filing of a protest against the proposed increase of rates1 to determine whether the schedule filed should go into effect at the end of thirty days or should be suspended by order of the commission until after final hearing1 upon the question as to whether the advance was reasonable4 ,this proposed amendment to the amendment of the #fth section1 although somewhat modifying its effect1 did not alter the principle upon which the original amendment rested1 or remove the objections that influenced the committee in reporting the bill adversely4 ,the reasons which control the action of the committee may be briefly stated as follows3 ,,review ,,of ,,question ,,before ,,committee4 #a4 ,from #ahhg ,congress1 by the act then passed to regulate commerce through all of its amendments to that act1 including the act of ,june #bi1 #aijf 7which was passed after the most elaborate investigation of the entire subject and the fullest debate71 has adhered to a fixed policy in its legislation upon this subject4 ,it has declared its constitutional right to regulate the transportation of persons and property in interstate and foreign commerce1 while1 at the same time1 it has recognized the right of the owners of the instrumentalities of commerce to control and manage their properties subject to the supervision and limitation imposed by the regulating statute1 that the charges1 fares and rates must be fair1 just1 and reasonable2 that neither discrimination as to person or place must be found in the schedules2 and that no device of any character should result in unlawful preference between shippers4 ,it has in all these acts recognized the right of the responsible managers of the transportation interests of the country to fix the rates for transportation1 as upon its revenue must rest the efficiency of its service to the public and the value of its property to its holders1 subject only to those wise limitations which prohibit the exercise of these property rights to the injury of the public4 ,congress has appreciated the magnitude of the vast interest affected by such legislation4 ,with #bcj1jjj miles of track1 with millions of rates published in accordance with the statute1 with changes of rates numbering between #fjj and #gjj a day1 and reaching the enormous sum of #bbe1jjj a year1 it has1 with the practical experience of twenty-two years1 refused to take the initiation of rates from the carrier and impose it upon its administrative tribunal4 ,congress and the ,supreme ,court have adopted the construction of the act to regulate commerce1 announced by ,judge ,jackson 7,interstate ,commerce ,commission v4 ,b4 ,o4 ,r4 ,r4 ,co41 #dc ,fed4 ,rep41 #cg1 and affirmed1 #ade ,u4 ,s41 #bfc73 ,subject to the two leading prohibitions that their charges shall not be unjust or unreasonable1 and that they shall not unjustly discriminate1 so as to give undue preference or disadvantage to persons or traffic similarly circumstanced1 the act to regulate commerce leaves common carriers as they were at the common law1 free to make special contracts looking to the increase of their business1 to classify their traffic1 to adjust and apportion their rates so as to meet the necessities of commerce1 same principles1 which are regarded as sound1 and adopted in other trades and pursuits4 ,this policy1 we believe1 has been approved by the country during that period4 ,pending the elaborate investigation of this subject prior to the passage of the act of ,june #bi1 #aijf1 no crystallized sentiment was manifested1 either in the press or during the hearings1 that indicated a public sentiment that this policy should be departed from4 ,since this bill has been before your committee no such public sentiment has been shown to exist by those who appeared before it4 ,the conferring upon the commission the power to suspend a rate advanced1 either upon the filing of a protest by a shipper or in the discretion of the commission1 taken in connection with the provision of the statute which gives to the commission the power to fix a rate and to designate the time1 not longer than two years1 that it should remain in force1 would ultimately turn over to that administrative body the function of initiating the rates of the entire country4 ,it would offer a premium to every shipper to enter a protest to the advance of rates1 whether they were reasonable or unreasonable1 even if discretion was vested in the commission4 ,the protest1 prepared by skilled attorneys1 presenting a prima facie case of unreasonable advance of the rate1 with no opportunity for an investigation before it must be acted upon1 an official body1 on which was imposed the responsibility to act would be constrained to suspend the rate until a final determination of the complaint4 ,the existing law permits any shipper to protest any rate that has gone into effect1 the hearing on the protest is made without formal pleadings1 and the commission is authorized then to determine the question whether the rate put in effect by the carrier was a reasonable rate or not1 and1 if not1 to make the rate reasonable4 ,so far1 in the practical operation of the act of ,june #bi1 #aijf1 this provision of law has worked satisfactorily1 and but comparatively few of the decisions of the commission have been contested by the carriers4 ,under existing law both parties are protected4 ,if the decision is that the rate is unreasonable a judgment may be rendered in favor of the protestant for the difference between what the commissioners determine is a reasonable rate and the rate fixed by the carrier1 with #f per cent interest from the date of the overcharge4 ,if1 on the other hand1 this amendment should receive the approval of ,congress and the rate filed by the carrier should be protested and then suspended by the commission 7in the multiplicity of duties imposed upon that tribunal71 considerable time would elapse before a final determination of the question could be reached4 ,during that period the carrier would be receiving only the old rate1 and if the commission finally decided that the advance was reasonable no reparation in any way could be awarded4 ,it was alleged before the committee that this last result would not be very injurious to the carrier1 for the reason that it would be receiving the rate which it had fixed as a fair compensation for the service performed prior to the change4 ,the answer to this seems reasonable1 which was1 that conditions had so changed that it required an advance of the rate to meet those new conditions4 ,otherwise the advanced rate would have no justification4 ,that traffic officials fully appreciate the fact that1 with the watchful eyes of every shipper affected by an advanced rate and the authority of the commission to determine and fix a just and reasonable rate 7as a general rule71 rates would not be advanced by such officials without a belief upon their part that there were sufficient reasons to sustain them1 if protested4 ,the attention of the committee has been called to the attitude of the commission in its rulings upon the advance of rates1 even where the facts have shown that the rates have been lowered with a view of developing a particular industry4 ,in the case of the ,new ,albany ,furniture ,company against ,mobile1 ,jackson and ,kansas ,city ,railroad ,company1 etc41 decided ,june #b1 #aijh1 the commission held3 ,the rates were low before the increase1 but having been established1 after prolonged negotiations1 especially for the purpose of permitting complainant to reach a particular market1 and in preference to making a readjustment in some other direction or territory1 and complainant having adjusted its business thereto1 defendants may not by an arbitrary advance in those rates destroy complainant's business1 there being no evidence that the rates advanced were less than the cost of service4 ,a similar decision was rendered on the #ast of ,june in the case of ,western ,oregon ,lumber ,manufacturers' ,association against the ,southern ,pacific ,company4 ,knowledge of the views held by the commission by the traffic officials and shippers will serve as the most effective check upon the part of the carrier in advancing rates over those which have been in existence for any considerable period of time1 unless they can support the advance by the most satisfactory reasons4 ,,would ,,the ,,amendment ,,proposed ,,be ,,in ,,conflict ,,with ,,the ,,fifth ,,amendment ,,to ,,the ,,constitution8 #b4 ,an objection urged to the approval of this amendment1 even though modified as suggested in committee1 was that it conflicted with the fifth amendment in depriving the carrier of its property without due process of law4 ,the existing law authorizes carriers to make reasonable rates4 ,congress recognizing the right of control by the carrier has provided reasonable regulations to safeguard the interests of the public in the exercise of that right4 ,it authorizes a protest after the rate had gone into effect2 it provides for a full hearing after notice by the commission2 it has further extended the time when the rate shall be made effective to thirty days from the filing of the schedule with the commission4 ,these were held to be reasonable regulations1 but it is claimed that under the amendment proposed to the sixth section1 that if the rate is suspended from going into effect at the end of the thirty days by a protest1 there is no limitation in the act fixing the time when the commission shall determine the question of the reasonableness of the advance2 that the period is therefore indefinite1 depending upon numerous considerations which might extend the time when the rate would be effective1 if it was finally held to be reasonable1 to six months or a year4 ,that the act of suspension either by the operation of the statute or by the commission is without notice or hearing to the carrier2 that ,congress has no greater right to authorize an administrative tribunal to suspend indefinitely the taking effect of a reasonable rate without notice or hearing than it has the right to provide that an administrative tribunal may authorize a rate which would yield less than the cost of the service4 ,it was decided in the case of ,chicago1 ,m4 ,st4 ,p4 ,r4 ,r4 ,co4 against ,minnesota1 #acd ,u4 ,s41 #dah1 that the right to make a reasonable rate was a property right4 ,in the case of ,interstate ,commerce ,commission v4 ,chicago ,great ,western ,ry41 #bji ,u4 ,s41 #aah1 the ,supreme ,court said3 ,it must be remembered that railroads are the private property of their owners2 that while from the public character of the work in which they are engaged the public has the power to prescribe rules for securing faithful and efficient service and equality between shippers and communities1 yet in no proper sense is the public a general manager4 ,justice ,brewer1 in the above case1 page #ajh1 speaking for the court said3 ,it must also be remembered that there is no presumption of wrong arising from a change of rate by a carrier4 ,the presumption of honest intent and right conduct attends the action of carriers as well as it does the action of other corporations or individuals in their transactions in life4 ,undoubtedly when rates are changed the carrier making the change must1 when properly called upon1 be able to give a good reason therefor1 but the mere fact that a rate has been raised carries with it no presumption that it was not rightfully done4 ,those presumptions of good faith and integrity which have been recognized for ages as attending human action have not been overthrown by any legislation in respect to common carriers4 ,it is claimed that the indefinite suspension of the rate until final hearing is to deprive the carrier1 if the rate advanced is reasonable1 of its right of property during the period of suspension1 without having given it any opportunity to be heard prior to the act of suspension4 ,due process of law must precede1 and should not follow1 the suspension4 ,to set aside the carrier's act in fixing the rate pending the investigation required by due process of law is to deprive the carrier1 pro tanto1 of its property right to charge a reasonable rate4 ,the fact that the statute requires an investigation after the suspension of the rate does not avoid the constitutional inhibition1 as that provision can only be satisfied when the investigation precedes any disturbance of property rights4 ,the carrier is entitled to the investigation before it is restrained in the exercise of its property rights2 the theory of the amendment suggested is that the shipper is entitled to an investigation before the carrier can exercise its property rights4 ,those contending for this objection to the amendment assumed that the indefinite suspension without hearing of the act of the carrier which deprived it1 beyond a reasonable time1 of the benefit of the advanced rate1 was in effect the same as that which was condemned by the ,supreme ,court in the case of the ,chicago1 ,m4 ,st4 ,p4 ,r4 ,r4 ,co4 against ,minnesota4 ,under the statute of that ,state1 a carrier had the right to initiate the rate1 and to put it in effect1 and1 under the law1 the commission was authorized to make such changes as it deemed proper in the schedule so filed1 and to direct the carrier to modify or change the schedule in accordance with the decision of the tribunal4 ,in the one case the going into effect of the rate is suspended indefinitely without notice or hearing2 in the other1 the rate is changed or modified without hearing4 ,on page #dah the court condemns this in the following language3 ,no hearing is provided for1 no summons or notice to the company before the commission has found what it is to find and declared what it is to declare1 no opportunity provided for the company to introduce witnesses before the commission1 in fact1 nothing which has the semblance of the process of law4 ,on page #deh the court said3 ,if the company is deprived of the power of charging reasonable rates for the use of its property1 and such deprivation takes place in the absence of an investigation by judicial machinery1 it is deprived of the lawful use of its property1 and thus1 in substance and effect of the property itself without due process of law and in violation of the ,constitution of the ,united ,states4 ,this view of the law as announced in #acd ,u4 ,s4 was affirmed by the ,supreme ,court in the case of ,louisville and ,nashville ,co4 against ,kentucky1 #ahc ,u4 ,s41 #eaj4 ,it was further suggested that if this amendment was incorporated in the sixth section1 that it was so fundamental in its character1 that if the court should hold that it was an unconstitutional exercise of power by ,congress1 that it might have the effect of destroying the entire value of this remedial legislation1 as it would be impossible to separate the clause from those provisions of the law directly controlling the subject of rates4 ,the committee1 without expressing any opinion upon the constitutional questions suggested1 feels that it is of sufficient importance and gravity to cause it to hesitate to incorporate such amendment into the sixth section1 especially in view of the other objections to such legislation4 ,,could ,,the ,,commission1 ,,under ,,the ,,amendment1 ,,fix ,a ,,reasonable ,,rate1 ,,if ,,it ,,held ,,the ,,proposed ,,advance ,,rate ,,unreasonable8 #c4 ,one of the most serious objections to this measure1 if the contentions of those who oppose it are well founded1 is the assertion that the adoption of this amendment would1 in reference to advanced rates that were protested1 deprive the commission of the power conferred upon it by the fifteenth section of the act of ,june #bi1 #aijf1 empowering it1 if on protest and hearing it found a rate to be unreasonable1 to fix a reasonable rate4 ,the authority to the commission proposed in the amendment to hear and determine the matter in all respects as it was required to do by sections #ac and #ae of this act1 can only be construed to refer to the procedure as provided in the thirteenth and fifteenth sections of the interstate commerce law4 ,there is no attempt to amend the provisions of section #ae1 which confers upon the commission the right to declare a rate unreasonable1 and when so declared to fix a reasonable rate4 ,there are no provisions found in the amendment suggested to the sixth section conferring upon the commission the power1 when it finds a rate proposed to be advanced unreasonable1 that it may then proceed to fix a reasonable rate4 ,an examination of section #ae in reference to the power of the commission to fix a rate depends upon a condition precedent that is clearly set forth in said section4 ,it is1 that before the commission has the authority to fix a rate it must first reach the opinion that-- ,the rates1 or charges whatsoever1 demanded1 charged1 or collected by any common carrier or carriers1 99 99 99 or that any regulation or practice whatsoever of such carrier or carriers affecting such rates1 are unreasonable1 or unjustly discriminatory1 or are unduly preferential or prejudicial1 or otherwise in violation of the provisions of this act4 ,when this conclusion has been reached as to existing rates the section then authorizes the commission-- to determine and prescribe what will be the just and reasonable rate or rates1 charge or charges1 to be thereafter observed in such cases as the maximum to be charged2 and what regulations or practice in respect to such transportation is just1 fair and reasonable to be thereafter followed4 ,to leave no doubt of the true construction of this section1 an examination of the order required to be entered by the commission is conclusive of the meaning and intention of ,congress in the enactment of this portion of the fifteenth section4 ,it provides3 ,and to make an order that the carrier shall cease and desist from such violation to the extent to which the commission finds the same to exist1 and shall not thereafter publish1 demand1 or collect any rate or charge for such transportation in excess of the maximum rate or charge so prescribed4 ,an analysis of this order of the commission which requires it to provide that the carrier shall cease and desist from such violation1 to the extent to which the commission finds the same to exist1 recognizes the fact that the rate is an existing rate1 is an effective rate1 is a rate in full operation1 and cannot1 therefore1 be applied under the provisions of the amendment suggested to the sixth section1 as no rate has gone into effect and become operative4 ,the subject we are considering as affected by the proposed amendment and the provisions of the fifteenth section1 do not rest upon any principle of the common law1 but are purely statutory enactments to carry out a policy in reference to interstate commerce deemed wise by ,congress4 ,the construction1 therefore1 of the statute in this respect cannot be aided by any principles of the common law1 and the conclusion as to its meaning must rest entirely upon the intention of the legislature as expressed by the language of the act4 ,if this view of the fifteenth section is correct1 the adoption of the amendment to the sixth section would change one of the most effective provisions of the act of ,june #bi1 #aijf1 and which was contended for with such earnestness in its passage through ,congress4 ,under the amendment to the sixth section1 if adopted1 and a protest was made to the advanced rate1 or the commission under a protest was authorized in its discretion to suspend the advanced rate1 until hearing as to its reasonableness1 the only decision that could be made under that amendment would be1 that the rate proposed to be advanced was either reasonable or unreasonable1 but there would exist no power in the commission1 if they found the rate unreasonable1 to fix what in its judgment would be a reasonable rate4 ,the committee does not believe that it is the desire of ,congress1 in view of the sentiment of the country as expressed in the press and before it1 to pass additional legislation which would invite and suggest such confusion and legal difficulties in the construction of an act which has not yet been put in full operation by the tribunal charged with that duty4 ,,could ,,the ,,decision ,,of ,,the ,,commission1 ,,condemning ,,an ,,advance ,,of ,,rates1 ,,be ,,reviewed ,,by ,,the ,,courts8 #d4 ,it was suggested to the committee that the incorporation of this amendment to the sixth section of the act of ,june #bi1 #aijf1 would deprive the carrier of the right to review by a bill in equity a decision of the commission which denied to the carrier the right to advance a rate4 ,this contention is based upon the ruling of the courts1 that the making of a future rate is a legislative act1 and not a question for judicial review1 and that until the rate is fixed and becomes effective it is purely one within the legislative function1 and presents no subject cognizable by the court4 ,under the amendment proposed a carrier would file a schedule of advanced rates2 a shipper enters a protest to the rate taking effect2 either by operation of the statute or the exercise of discretion by the commission1 the rate is suspended until final hearing2 subsequently there is a notice of the hearing and a decision rendered adverse to the contention of the carrier seeking an advance of the rate4 ,under these circumstances there is no remedy of review of that act of the commission provided for by existing law or under the principles of equity4 ,existing law1 providing for a review of a decision of the commission1 does not by its terms enlarge the subject of equitable jurisdiction4 ,the provision of the statute confers upon the court the right to take jurisdiction of a case against the commission and to review its decision when based upon an existing rate4 ,there is no provision of the statute that contemplates the exercise of a jurisdiction by the courts in a case arising under a provision of law similar to the amendment sought to the sixth section of the act of ,june #bi1 #aijf4 ,in the decision rendered by the commission denying the right to advance the rate1 the question of the reasonableness of the former rate or of any existing rate is not involved in the order to be entered by the commission4 ,under this proposed amendment the carrier submits a proposition to advance the rate1 which has never become effective4 ,the order of the commission would simply approve the proposition or deny the advance of the rate4 ,this1 under the proposed amendment1 would be the extent of the authority and act of the commission4 ,in the case of ,mc,chord v4 ,l4 ,n4 ,r4 ,r4 ,co4 7#ahc ,u4 ,s41 #dhc71 followed by the case of ,l4 ,n4 ,r4 ,r4 ,co4 v4 ,ky4 7#ahc ,u4 ,s41 #ejc71 the court sustains the doctrine announced1 and held that before a court of equity can intervene1 the administrative body must do some act that advances beyond the legislative function4 7,reagan v4 ,farmers' ,loan ,trust ,co41 #aed ,u4 ,s41 #cfb2 ,interstate ,commerce ,commission v4 ,railway ,co41 #afg ,u4 ,s41 #dgi47 ,it is contended that the decision of the commission prohibiting the advance is a legislative act1 and that under the decisions of the courts the order simply prohibiting the taking effect of a proposed advance could not be the subject of equitable cognizance4 ,if this view is not correct1 it is contended that the courts by overruling the order of the commission would in effect be putting in force a future rate4 ,under existing law1 however1 if the rate has taken effect its reasonableness is a matter of judicial review1 and should the commission after protest and hearing declare it to be an unreasonable rate and set the same aside in its order1 that decision is reviewable by the courts1 as it presents a judicial question4 ,the statute conferring upon the commission the power to determine whether an existing rate is reasonable or unreasonable has fixed the standard which must determine the jurisdiction of the administrative tribunal1 and the courts have a right to review the act of the commission1 with a view of ascertaining whether it has acted within the limitations of the power conferred upon it4 ,in the case of the ,state ,corporation ,commission of ,virginia against ,railways1 decided by ,mr4 ,justice ,holmes ,november #cj1 #aijh1 speaking of the power of the commission to fix a rate and the appeal from its decision to the court of appeals of ,virginia1 the court said3 ,a judicial inquiry investigates1 declares1 and enforces liabilities as they stand on present or past facts and under laws supposed already to exist4 ,that is its purpose and end4 ,legislation1 on the other hand1 looks to the future and changes existing conditions by making a new rule to be applied thereafter to all or some parts of those subject to its power4 ,the establishment of a rate is the making of a rule for the future1 and therefore is an act legislative1 not judicial1 in kind4 99 99 99 ,proceedings legislative in nature are not proceedings in a court within the meaning of the ,revised ,statutes1 section #gbj1 no matter what may be the general or dominant character of the body in which they may take place4 99 99 99 ,that question depends not upon the character of the body1 but upon the character of the proceedings4 7,ex parte ,va41 #ajj2 ,u4 ,s41 #cci-cdh47 ,they are not a suit in which a writ of error would lie under ,revised ,statutes1 section #gji1 and act of ,february #ah1 #ahge4 7,c4 #hj ,stat41 #cah47 99 99 99 ,litigation can not arise until the moment of legislation is passed4 99 99 99 ,we may add that when the rate is fixed a bill against the commission to restrain the members from enforcing it will not be bad as an attempt to enjoin legislation or as a suit against a ,state1 and will be the proper form of remedy4 ,the recent decision of the ,supreme ,court in the case of ,public ,service ,commission v4 ,consolidated ,gas ,co4 of ,new ,york1 in which the opinion was delivered by ,mr4 ,justice ,peckham1 in deciding what is known as the ,eighty-,cent ,gas ,case from the southern district of ,new ,york1 is instructive upon the question discussed in this objection4 ,in that case1 the parties had gone to issue upon the question as to whether the rate of #hj cents enjoined by the court from taking effect was confiscatory4 ,after deciding the case upon the merits in favor of the commission1 the court was unwilling1 upon the supposed effect of a rate which had never been in operation1 to bar the parties of their right when the same became effective from asking the protection of the court against its practical results4 ,the memorandum announcing the position of the court upon that question is as follows3 ,as it may possibly be that a practical experience of the effect of the acts by actual operation under them might prevent the complainant from obtaining a fair and just return upon its property used in its business of supplying gas1 the complainant1 in that event1 ought to have the opportunity of again presenting its case to the court4 ,therefore1 the decree is reversed1 with direction to dismiss the bill without prejudice4 ,this case simply illustrates the fact that the court was unwilling to decide the question finally until the rate contested had become effective4 ,this was a suit involving a schedule of rates1 and the question made by the record was that these rates would result in the confiscation of the property of the complainant in violation of the ,federal ,constitution4 ,where that question can be properly made1 the courts have intervened upon clear proof and sustained their jurisdiction to prevent such a violation of the constitutional protection4 ,in this case1 although the court held that the evidence developed the fact that this allegation of the bill was not sustained1 it was so reluctant to give effect to testimony as to what might be the effect of the rates before they were made operative that it preserved the rights of the parties by authorizing a new suit after the rate should become effective4 ,under the act to regulate commerce1 such a constitutional question could hardly be practically raised1 and the rights of the court to intervene must depend upon the limit placed upon the power of the commission by ,congress in the enactment of the law1 in fixing the standard which should guide the commission in its action4 ,,burden ,,imposed ,,on ,,the ,,commission4--,,conflict ,,of ,,jurisdiction4--,,how ,,rates ,,are ,,made4 #e4 ,your committee has deemed it proper that it should report to the ,senate the legal objections to the incorporation of this amendment in the sixth section of the act of the #bith of ,june1 #aijf1 but although giving due weight to these objections1 the committee has been more strongly influenced in its adverse report upon this bill because of the strong and forcible practical objections which have been urged to the adoption of this amendment as a part of the interstate commerce law4 ,should this amendment become a part of the law1 it would be in the power of any shipper1 whether interested or not in the result1 to file a protest against the advance of the rate which under the proposed amendment would at once suspend its going into effect1 and under the amendment offered in committee would place it in the power of the commission to order its suspension1 if a prima facie case was presented in the protest4 ,the shipper in filing a protest assumes no responsibility1 either as to the effect of his action upon the carrier or liability in any way for cost accruing during the proceeding4 ,considering the thousands of articles transported by the carriers of the country1 the hundreds of thousands of rates published for the transportation of these articles1 and the thousands of shippers interested in their movement1 some idea of the number of protests that probably would be filed on the advance of rates can be imagined4 ,the burden that would be thrown upon the commission in its effort to meet this responsibility would1 as ,judge ,cooley well remarked1 require superhuman efforts on its part4 ,he said3 ,moreover1 an adjudication upon a petition for relief would in many cases be far from concluding the labors of the commission in respect to the equities involved1 for questions of rates assume new forms1 and may require to be met differently from day to day2 and in those sections of the country in which the reasons or supposed reasons for exceptional rates are most prevalent the commission would1 in effect1 be required to act as rate makers for all the roads and compelled to adjust the tariffs so as to meet the exigencies of business while at the same time endeavoring to protect relative rights and equities of rival carriers and rival localities4 ,this in any considerable ,state would be an enormous task4 ,in a country so large as ours1 and with so vast a mileage of roads1 it would be superhuman4 ,a construction of the statute which should require its performance would render the due administration of the law altogether impracticable1 and that fact tends strongly to show that such a construction could not have been intended4 ,if the advance of rates was ultimately decided to be reasonable1 the carrier would have been deprived during the period of suspension of the additional earnings to which it was entitled1 and under such a provision of law would be required to maintain1 at enormous expense1 a large force of attorneys to answer and defend these protests4 ,it would confer upon the commission the powers now exercised by the courts1 and the jurisdictions over the same subject by both the courts and the commission would necessarily produce conflict and confusion4 ,the ,supreme ,court in the case of ,texas ,pacific ,r4 ,r4 ,co4 v4 ,abilene ,cotton ,oil ,co4 7#bjd ,u4 ,s41 #dbf71 construing the ninth and twenty-second sections on the right of a shipper to apply to the courts for pecuniary redress for an alleged unreasonable rate held that1 until the protested rate was condemned by the commission1 there was no relief in the courts4 ,this decision avoided a conflict of jurisdiction between the courts and the commission4 ,it would lessen very greatly the value of the amendment of the act of ,june #bi1 #aijf1 which requires thirty days' notice in a change of rate1 which was adopted1 with a view of investing rate conditions with a greater degree of stability than formerly4 ,under existing law1 the shipper is assured of that degree of stability1 and can predicate his sales and purchases accordingly4 ,under the amendment1 shippers would never know whether or not a rate is to become effective on schedule time1 or at any future time4 ,the effect of the amendment would1 therefore1 be to a considerable degree to nullify the permanency which this amendment to the act to regulate commerce sought to impress upon the law4 ,we must remember in considering this question that the majority of advances have resulted from the practice of the roads in the reduction of rates to meet certain commercial and economic conditions at the time1 which have usually been the result of appeals from shippers and suggestions from commercial organizations4 ,we desire to direct attention to the statement filed before the ,committee on ,interstate and ,foreign ,commerce upon a similar bill to this by the chairman of the committee of the ,southwestern ,traffic ,association1 which is as follows3 ,a very small percentage of the changes in freight rates1 either reductions or advances1 is evolved by railroad officials4 ,practically every change in rates is the result of suggestion from one or more shippers1 who find that by some modification in the existing schedules their business in a certain territory can be increased by enabling them to meet competition which they encounter from other sources of supply1 which are in most cases served by rival railroads4 ,their representation is that by the proposed change their profit or business will be increased1 and consequently the railroad serving them will share in an augmented traffic which1 at the time of the suggestion1 is being handled by the rival shipper and carrier4 ,ninety or more per cent4 of these suggestions are for reductions in rates or for changes in rules and regulations beneficial to shippers and classed as reductions4 ,the railroad company is anxious at all times to increase its traffic and gives a keen ear to such pleas of the shipper4 ,the railroad official to whom such requests are made carefully investigates the conditions recited by the shipper and1 by correspondence with such railroad's representatives at the points of origin and destination1 confirms1 if possible1 the views of the shipper and the effect of the proposed change on the tonnage and revenue of the company4 ,the traffic official of the railroad thus being daily engaged in investigations of this kind becomes very proficient in his knowledge of the factors surrounding the movement of the principal articles of commerce and becomes1 after experience1 a ready judge of the merit of such propositions4 ,when thus convinced1 he becomes the agent of the shipper in securing the proposed adjustment4 ,this may take the form of suggesting to a rival railroad that the advantage which its shippers have enjoyed is unjust and that he should be permitted1 without any corresponding reduction on the part of such rival railroad1 to reduce his rate that the complaining shipper may profitably secure an increased share of the competitive traffic in question4 ,being unable to thus persuade the competing railroad of the merits of such a contention he is forced to proceed by reducing his own rate without regard to the possible change which may follow on the part of other railroads as a consequence of his reduction4 ,it will1 therefore1 naturally be seen that the railroad official and the shipper are constantly planning to increase the business in which they are jointly interested1 to the disadvantage of the rival railroad and shipper4 ,sometimes these efforts result in serious rate wars until the point in controversy has been adjusted and the competitive rates placed on a basis which is more nearly equitable to all concerned4 ,in many instances these disputes result in arbitration either by the ,interstate ,commerce ,commission or by individuals who may be agreed upon by the contending interests4 ,bearing in mind1 therefore1 that practically all rate reductions are the result of the effort of the railroad company to serve the shipper1 it can easily be seen what the result will be if no advances in rates can be made without practically the approval of the ,interstate ,commerce ,commission4 ,where it is difficult to restore rates to normal figures1 the carrier will be loath to reduce them in order that the shipper dependent upon such carrier may increase1 for the time being1 his share in the competitive traffic in which he is interested4 ,,adjustment ,,of ,,rates4--,,interrelation ,,of ,,rates4--,,practical ,,operation ,,of ,,amendment4 #f4 ,the subject of rate adjustment1 even upon a single system of transportation1 is one involving great difficulty and perplexity4 ,when this adjustment is considered in its relation to the entire country1 to the diversified commercial conditions1 as affected by commercial competition1 and as controlled by the interrelation of rates1 it stands forth as one of the most difficult of all the problems which must be mastered that the transportation agencies may not be injuriously crippled in the performance of their quasi public functions1 or the prosperity and development of the commercial interests be retarded by the failure to enact proper1 reasonable1 and just governmental regulations4 ,rates which can be considered alone are comparatively few in number4 ,in the large majority of cases they are interrelated with other rates1 and frequently this interrelation exists as between areas widely separated4 ,the rates upon iron and steel from mills within #ej to #ajj miles of ,new ,york1 ,philadelphia and ,baltimore1 whose relations to each other are established by long custom and usage1 are based primarily upon the necessity of preserving a fair comparative charge between the different shipping points and destinations4 ,rates upon coal from central ,pennsylvania to tide water have close relations with the rates upon coal from ,west ,virginia to tide water1 competing as such coal does1 in the same markets4 ,the rates upon lumber from the ,michigan markets must bear some relation to the rates on lumber from ,louisiana and ,georgia to the same market of distribution1 although separated by hundreds of miles4 ,the rates upon grain from western farms to eastern points bear a relation to the other1 and upon export grain the rates to the ,atlantic seaboard bear a close relation to the rates to the ,gulf4 ,the rates upon fruit and vegetable traffic from the various shipping districts1 as ,california on the ,west and ,florida on the ,south1 must be considered in the making of rates4 ,the structure of rates between the territory east of the ,mississippi and north of the ,ohio ,river1 and the territory east of ,pittsburg and ,buffalo1 including ,new ,england1 is closely interrelated2 as an example1 the rates between ,chicago and ,new ,york take a percentage of the ,chicago rate from all points west of ,pittsburg and ,buffalo4 ,the principle of the interrelation of rates has frequently been recognized in the decisions of the ,interstate ,commerce ,commission4 ,in the interest of the manufacturer there is a very important relationship between rates upon different products entering into the manufacture of a given article4 ,in the great steel-producing districts of the ,shenango and ,mahoning valleys and ,pittsburg for many years the rates upon raw material to the furnaces for the production of pig iron have been adjusted upon a basis1 so far as possible1 of making the freight cost of assembling the raw materials that enter into this product the same to each furnace4 ,in the one case the rate upon coke may be higher and the rate upon ore or limestone lower2 in other cases the reverse4 ,the adjustment of rates upon these different raw materials is so made that when assembled at the different furnaces the aggregate cost is relatively the same4 ,this illustrates the contention that such rates cannot be considered separately1 but must be taken as a whole4 ,bearing these facts in mind it is manifest that if an advance in rates is made and the protest of one shipper shall operate as a stay to the advance of a particular rate in which he may be interested the result would be to burden thousands of other shippers who have made no objection4 ,the protesting shipper would thus secure an advantage1 enjoying for a time1 at least1 a rate relatively lower than that to which he was entitled4 ,it might be urged that it would be open to all other shippers to file similar protests1 but under the provisions of the bill1 or of the amendments suggested in committee1 the protesting shipper might wait until the last day of the thirty-day period1 thus giving no opportunity to other shippers1 who would be ignorant of his purpose1 to file their protest4 ,it would be possible if this amendment became a law that many individual shippers would take advantage of their competitors by making contracts upon the basis of a lower rate and at the last moment file the protest1 suspend the advance rate1 and deliver their product under such contracts within the period of the suspension of the advanced rates and thus profit at the expense of their competitors4 ,the effect of this amendment becomes more serious where the relation of rates is between wide areas1 and these relative rate adjustments cannot be made simultaneously4 ,the rates upon grain for export1 from the ,west to the ,gulf1 as compared with the ,atlantic seaboard1 will illustrate this statement4 ,the protest of one shipper between two specific points would not only result in throwing out of relation the rates from all points in that section1 but would also affect the competitive rates from other sections4 ,such a result would necessarily render the rate situation in reference to the grain rates confusion worse confounded4 ,rates in a country like the ,united ,states1 which is comparatively young1 and the development of which attracts the attention of the world1 must1 necessarily1 be elastic1 not only in the interest of the carrier1 but of the shipping public4 ,the principle is sound and has received the approval of the ,interstate ,commerce ,commission1 that rates must be fixed with regard to their relations one with the other1 and not entirely upon the cost of service4 ,this relation is because of the competition between shippers1 between sections of shippers1 and between localities1 and as 7because of the rapid development of our country in the production of new sources of supply1 in the opening up of new grain fields1 flour mills1 mines1 and factories1 etc47 this competition is constantly changing4 ,it is manifest that rates must constantly fluctuate1 so as to be adjusted to the new condition2 it is essential in the development of the country1 even in the older sections1 that rates must be elastic1 which means constant reductions and advances4 ,this is in the interest of communities and the individual shipper4 ,there must be elasticity for other reasons1 in the interest of communities as of the railroads2 in meeting changes in commercial conditions that necessitates reductions in rates for shorter or longer periods1 as an illustration1 to enable our grain and other products of the farm to reach foreign markets1 which would be impossible in one period unless rates were lowered1 whereas in other periods higher rates could be charged without injurious results4 ,understanding the conditions that surround this complex subject1 it is manifest that if a single shipper1 or even the ,interstate ,commerce ,commission1 is to have the power to prevent at any time that elasticity which involves an advance in rates1 the natural result will be that reductions will not be made by the carrier1 and the elasticity will be lost4 ,the fear would be ever presented to the mind of the traffic official that the rate once reduced could not--at least1 until after exhaustive and long-drawn-out hearings before the commission--be advanced4 ,the necessary fluctuation in rates to meet the changing conditions of commerce1 when examined in the light of the reports of the ,interstate ,commerce ,commission1 is startling to one not familiar with the rapid change of commercial conditions in this country4 ,there were #bbe1ihb tariff publications filed with the commission in one year1 all containing changes of rates1 either reductions or increases1 and rules governing transportation4 ,these publications--many of them--contained a great number of different tariffs4 ,the ,pennsylvania lines1 east of ,pittsburg1 issued #b1bjj tariffs and #c1fjj supplements4 ,about #cc-a_/c per cent of these covered advances1 and #ff-b_/c per cent were reductions4 ,as the law exists today1 there was no special inducement to the shipper to file protests against the advances4 ,suppose1 however1 that this amendment had been a part of the act to regulate commerce1 how many protests would have been filed1 and what length of time would it have taken the commission to have disposed of them8 ,what uncertainty would have resulted to the commercial interests while waiting for the adjudication of these questions8 ,,opportunity ,,for ,,fraud ,,and ,,discrimination ,,under ,,the ,,amendment4 #g4 ,one of the most serious objections urged to the passage of this amendment is the opportunity which such a law would present for the perpetration of frauds under it1 and in the case of even honest protest to the advance of rates1 where rates rest on a differential basis1 in producing thousands of instances of unfair discrimination4 ,an example under the first proposition may be stated briefly1 as follows3 ,there are two men engaged in the same line of trade2 they are both called upon to bid on a contract involving a large amount of a given commodity in which both deal4 ,the carrier has given notice of an advance in rate1 effective thirty days from the filing and publication of the schedule2 the commodity is not to move for some days2 one of the bidders files his bid1 based upon the advanced rate1 assuming that the notice of the carrier will be made effective2 the other shipper and bidder waits until two or three days before the date the rate is to be made effective1 files a protest1 confident that it will take three or four months to have the matter adjudicated1 files his bid against his competitor1 based on the current rate1 and being the lowest1 secures the contract4 ,an example under the second proposition would be in case of a rate published from ,st4 ,louis to be followed differentially from ,chicago by a number of competing roads4 ,a shipper on one of the lines1 just prior to the taking effect of the rate1 would file his protest as to the rate east of ,chicago4 ,the differential adjustment that has been made by all these roads will at once be destroyed1 and the shipper on the road against which the protest was filed would have the advantage over all of his competitors on the other lines in shipping east4 ,these discriminations between shippers would be the direct result of the power placed by ,congress in the hands of shippers and would have received the sanction of legislative approval1 and1 therefore1 be lawful4 ,the statute has taken it out of the power of the carrier to meet such a condition and to prevent the discrimination4 ,it cannot change its rate under thirty days without a special order of the commission1 and that order1 it must be assumed1 cannot be granted without a reasonable hearing4 ,congress since #ahhg has sought by the most stringent measures of legislation to prevent discrimination and preserve equality among shippers4 ,the original act was demanded more to accomplish that purpose than for any other4 ,the ,elkins ,act was confined almost entirely to the subject1 and the act of ,june #bi1 #aijf1 increased the penalties for the violation of these provisions4 ,should this policy1 which has been followed for more than twenty years1 be modified and an act passed1 the tendency of which is to tempt the cupidity of the shipper to accomplish results which it has earnestly and vigorously fought to stamp out8 ,,would ,,prevent ,,reductions1 ,,as ,,well ,,as ,,advances1 ,,in ,,rates1 ,,and ,,destroy ,,their ,,flexibility4 #h4 ,on the face of this amendment1 it seems only to give to the commission the authority to prevent an increase in rates1 but the practical result of such a law would be far more reaching4 ,such a law would mean a rigid freight tariff in place of the present flexible and elastic system of rates which exists alone in this country4 ,stability of freight rates is important1 but not to the extent that the carrier shall not feel warranted in promptly applying remedies for the relief or assistance of shippers who find themselves no longer able to compete1 due to advantages which other shippers have secured1 or changes which have occurred in the conditions surrounding the marketing of their products4 ,a law which tends to minimize the commercial or competitive conditions existing at the present time will necessarily result to the disadvantage of shippers1 to the carrier1 and to the communities they serve4 ,it is not necessary here to again refer to the presentation of the importance of the flexibility of rates1 which is so clearly shown in the discussion of the influences which control in making reductions1 as well as advances of rates by the chairman of the ,southwestern ,traffic ,committee1 as quoted under section #e of this report4 ,the more the committee has reflected upon the probable tendency of the principle announced by this amendment1 if incorporated into the law1 the more definite has become its conviction that it would ultimately result in destroying that important factor in ,american railroad management1 the flexibility of their tariffs--their adaptability to the changing commercial and economic conditions4 ,one of the most distinguished and skilled traffic officials in the country1 ,mr4 ,henry ,fink1 in considering this amendment uses the following language3 ,railroad officials are constantly engaged in the work of adjusting rates so as to meet as far as practicable the requirement of their patrons4 ,in times of depression of business they make reduction in rates in order to enable shippers to send their commodities to certain markets1 and keep industrial establishments from being closed4 ,these reduced rates are often so low as to barely cover the cost of transportation4 ,but they are meant to be temporary in their operation1 and to be advanced when business conditions have become more favorable4 ,it must be obvious that when the restoration of such rates is obstructed1 so that railroad officials are not permitted to advance rates except by permission of a government bureau after an investigation which must consume considerable time1 railroad officials will naturally hesitate1 and often decline1 to make reductions in rates which involve considerable loss of revenue without any compensating benefits to their companies1 either in the present or future4 ,it is easy to see the effect of this4 ,railroads would no longer be able to afford the desired assistance to shippers1 however anxious they might be to do so4 ,the rates would in a large measure lose their elasticity1 and become rigid1 and a condition similar to that existing in ,france would be created1 where state controlled rates prevent railroads from building up the territory4 ,in considering this question1 we must not forget that when we destroy elasticity and flexibility in our rates1 we prevent reductions of rates1 as well as the raising of rates4 ,its tendency is not only to prevent the reduction in particular instances that has resulted in great advantage to the shippers and the country in the past1 but it prevents the lowering of the general average of rates4 ,there have been comparatively few complaints1 as to the unreasonableness of the rates of this country per se4 ,the vast majority of complaints1 against the reasonableness of rates1 is the claim that they are relatively unreasonable4 ,under the ,american system of rate adjustment1 with its freedom to meet commercial and economic conditions1 the general average of rates per ton per mile has voluntarily been reduced by the carriers of the country from #ahgj2 not so strikingly since #ahif as previously1 but substantial reduction as follows3,j #ahif #hjb #ahig #ghi #ahih #gec #ahii #gbd #aijj #gbi #aija #gej #aijb #geg #aijc #gfc #aijd #ghj #aije #gff #aijf #gdh #aijg #gei ,the leaders of railroad management and the ablest experts on railroad economics in foreign countries have approved in the most enthusiastic language1 the wisdom which has preserved to the ,american railway system its freedom of management and its flexibility of rates1 subject only to the limitations of reasonable rates1 equality among shippers1 and the avoiding of all devices that might result in discrimination among those who use these public means of transportation4 ,the view of ,m4 ,emile ,heurteau1 president of the ,orleans ,railroad1 speaking of the ,american system of roads1 said3 ,we would be only too glad to adopt the ,american system of fixing the lowest rates proper1 and making up the loss of profit on each shipment out of the increased volume of business they make the railways available to1 which is the only economically and commercially right and sensible way of doing4 ,we would be glad to build up our territory as the ,american railways do1 by encouraging its industries1 by opening its markets1 by enabling it to compete with other territory contributing to the same markets4 ,but we can not do that2 the state-controlled rates prevent it1 however strong our desire or the people's may be4 99 99 99 99 99 ,railroads under government supervision must set their rates close to the maxima then1 and maintain them there1 for their own salvation4 ,there are many times when1 if it were possible1 we would like to lower freight charges to meet some special emergency1 such as the necessities of a district suffering from a crop failure1 for example4 ,that is not philanthropy1 but commercial sense1 to help the man who creates business for you1 when he is hard pressed1 and to increase the volume of traffic that is falling because people have not the money to pay the price they have been accustomed to pay easily4 ,but if we should once lower our rates--possibly to the point of loss1 as ,american railways have done frequently in crises--we would not be allowed to restore them later1 when they could be fairly restored4 99 99 99 99 99 ,the wonderful growth and development of the ,united ,states is the admiration of the whole world4 ,i have no doubt it is to be attributed largely to the freedom you have always enjoyed in your commercial and industrial life4 ,opportunity is given here for railways and communities to be mutually helpful1 and splendid use has been made and is being made of it4 ,the few cases of complaints against your railways1 the expansion of trade through the opening of ,european markets to the producers of your ,central and ,western ,states1 who are enabled to deliver their products abroad1 the low cost of transportation that enables them to compete there with the foreign producer near at hand1 whose railways are in no position to help him--all these things seem to me sufficient evidence of the success and desirability of the ,american practice in the management and regulation of railway matters4 ,any economist1 any business man1 any transportation manager will tell you that the present ,american method of fixing freight rates is the only logical and rational one4 ,in the investigation of railways by the ,senate committee in #aije1 ,mr4 ,w4 ,m4 ,acworth1 who is regarded as one of the leading experts in ,england on railroad transportation and railroad economics1 was invited to appear before the committee1 with the request to give a review of the historical facts bearing on the control and management of the railways of ,england4 ,after complying with the request of the committee1 certain questions were asked him that were of great importance at that time in the consideration of the questions then being investigated by the committee4 ,one of these questions involved the effect of the provision of the new canal and traffic act of ,parliament1 which for the first time embodied the provision that railway companies must make no increase except for good cause1 if anybody objects1 and which1 as construed by the courts1 prevented any increase of a rate where objection was made1 until after hearing by the board of trade4 ,his examination will be found in the third volume of the hearings of that investigation1 pages #ahdh1 #aheb1 #ahec and #ahed1 and was as follows3 ,since it has been decided that no rate can be put up once it has been put down1 without appeal to the law courts1 the railway companies have practically arrived at the conclusion that they will not put them down because they do not know whether they will have an opportunity to put them up again4 ,senator ,,cullom3 ,do you think it works to the advantage of the people that the railways will not put the rates down for fear they will not get a chance to put them up again8 ,mr4 ,,acworth3 ,personally1 ,i have no doubt it does not4 ,it is fair to remember always that it may protect the weaker in commercial strife4 ,it is rather hard on the weaker man to be crowded to the wall by a wholesale concern in any walk of life4 ,but if it be true in ordinary business that1 on the whole1 the public gains by the wholesaling method1 it is probably true in railway business also4 ,i think that1 so to speak1 the heart has been taken out of the railway man4 ,the railway men understand this business2 they know how to manage it in their own way4 ,the railway men think 'the responsibility has ceased to be ours2 we must maintain the status quo1' and that is what they do4 ,the ,,chairman3 ,you think that dividing responsibility impairs the administrative power of the officials of the roads as well as the service they render to the public8 ,mr4 ,,acworth3 ,from the operating point of view1 ,i do not think our railways have been sufficiently interfered with to prevent them developing the goodness of the service4 ,but as to rate making1 ,i have no doubt that the interference of ,parliament1 the courts1 and the ,executive has all tended to stereotype and keep rates at an unnecessarily high level4 ,the ,,chairman3 ,would you say that1 on the whole1 the power to make rates generally and primarily should be left to the railroads and to the free play of the forces of the business world8 ,mr4 ,,acworth3 ,speaking as an individual student1 ,i have no doubt that that is the process that will arrive at the best results for the community1 with this exception3 ,that ,i fully think it is necessary that the community in some way should interfere to protect all customers from unfair treatment4 ,the ,,chairman3 ,you think that the power should reside somewhere to correct excessive and extortionate rates by summary and proper proceedings8 ,mr4 ,,acworth3 ,i am not sure that ,i should go so far as to say excessive rates regarded as excessive in themselves4 ,i am myself inclined to think that excessive rates will correct themselves4 ,the wise men will discover that it does not pay to charge excessive rates4 ,but ,i think the law should interfere to prevent unfair rates to ,a as compared with the rates given to ,b4 ,it seems to me that the ,state is bound to insist that the rates shall be public1 and that practically will settle it1 for if they are public they have got to be fair2 ,i am inclined to think the law should confine itself to securing that1 where there is a difference made as between ,a and ,b1 the difference should be a difference for a commercial reason1 and not for any reason of personal favoritism4 ,senator ,,foraker3 ,and ,i understand you to say that the effect of fixing maximum rates is to lessen the tendency to reduce rates1 which railroads had practiced before this legislation was enacted8 ,mr4 ,,acworth3 ,i am not quite sure that the maxima have really had very much effect at all4 ,it has been a tendency1 but ,i do not think an important tendency4 ,but the interpretation by the courts of the undue preference law1 and the recent limitation that having once reduced you can not subsequently increase1 have had that effect markedly1 ,i believe4 ,senator ,,foraker3 ,so that the rates for the transportation of freight on railroads in ,england have not been declining1 ,i take it from your statement1 in recent years1 but have remained practically stationary8 ,mr4 ,,acworth3 ,i do not know what the average rate is1 because there are no statistics in ,england2 but my own impression would be that it had probably not declined to an appreciable extent1 whereas in an earlier period it certainly did decline pretty fast4 ,the effect of a similar law1 passed in ,england1 as shown by the testimony of ,mr4 ,acworth1 confirms the views of the committee which have been expressed in this report1 that with such a provision embodied in the present interstate commerce law1 there would be few reductions or advances in ,american rates4 ,if it had the effect in ,england of destroying the flexibility of the rates of the carrier and interfered with the development of ,england's commerce1 as well as her railroads1 how much more serious would be the result in this country1 that is in the process of rapid development1 both as to its commerce and territory8 ,it has been credibly stated that the ,board of ,trade of ,england is now seriously considering a recommendation for the repeal of that provision of the statute4 ,,an ,,analysis ,,of ,,the ,,communication ,,to ,,the ,,commission--,,many ,,of ,,its ,,objections ,,apply ,,to ,,the ,,amendment ,,offered ,,in ,,committee4 #i4 ,when this bill was referred to your committee for its consideration the chairman addressed a letter to the ,interstate ,commerce ,commission1 inclosing the bill1 and requested the opinion of the commission as to the wisdom of incorporating the amendment into the interstate commerce law4 ,the chairman replied in the following communication3 ,,interstate ,,commerce ,,commission1 ,washington1 ,january #bi1 #aijh4 ,,hon4 ,,stephen ,b4 ,,elkins1 ,chairman ,committee on ,interstate ,commerce1 ,united ,states ,senate1 ,washington1 ,d4 ,c4 ,,dear ,,sir3 ,the ,interstate ,commerce ,commission has the honor to submit the following in response to your communication of #bdth instant1 transmitting a bill 7,s4 #dbc7 to amend section #f of the act to regulate commerce1 introduced by ,senator ,fulton ,december #d1 #aijg1 and requesting the commission to 'advise the committee before its next meeting1 ,january #ca1 their opinion of said bill and what action they would suggest thereon4' ,whilst the views of the entire commission can not be definitely ascertained within the time named1 because of absences on official business1 a majority of the commissioners and probably all of them would not be disposed to favor the enactment of this measure4 ,to give to the protest of a single shipper the effect of preventing the advance of any rate until the reasonableness of that advance was affirmatively determined by the commission would establish a hard and fast rule of doubtful fairness to the railroads and questionable advantage to the public4 ,under existing conditions we are of the opinion that it would be unwise to adopt the arbitrary limitation which this bill proposes1 whatever may be found desirable or necessary in this regard in the future4 ,it is further to be observed that the passage of such a bill at this time would impose a burden upon the commission which it ought not to be asked to undertake4 ,if every proposed advance had to be investigated by the commission and officially sanctioned before it could take effect1 the number of cases to be considered would presumably be so great as to render their prompt disposition almost impossible4 ,in instances of justifiable increase the necessary delay resulting from the probable volume of cases would work injustice to the carriers4 ,until conditions become more stable and the substantive provisions of the act are more completely observed in railway tariffs and practices we entertain the belief that a wider latitude of discretion on the part of carriers than this measure allows should be permitted4 ,it is also suggested that the practical effect of the proposed amendment might be to prevent voluntary reductions of rates by the carriers4 ,if no rate could be increased without the approval of the commission after affirmative showing by the carrier it might happen that many reductions now voluntarily accorded would not be made4 ,this subject of rate advances was discussed in our recent annual report to the ,congress1 and that portion of the report is transmitted herewith for the information of your committee4 ,it concludes with a recommendation relating to the matter in question in which the entire commission concurred1 and that recommendation is now respectfully renewed4 ,very respectfully1 ,,martin ,a4 ,,knapp1 ,chairman4 ,it will be observed by an examination of this communication from the commission that it deemed it unwise to recommend the adoption of the amendment to the sixth section as offered in ,senate bill #dbc1 but the letter refers to its former report as expressive of its views upon this subject1 which recommended a somewhat similar provision1 but differing in this respect4 ,in ,senate bill #dbc the filing of a protest would suspend the taking effect of the rate until after full hearing as to the merits of the advance4 ,the recommendation of the commission in its former report1 referred to in the communication1 recommended the adoption of a provision that would confer upon the commission1 upon the filing of a complaint1 the discretion to suspend the rate until final hearing4 ,the amendment to the bill before your committee offered during its consideration1 and which has been fully discussed in this report1 was in substance the recommendation of the commission4 ,an analysis of the letter of the chairman of the commission1 stating the objections to the enactments of the proposed amendment into law1 sustains many of the reasons which have been urged in this report against the approval of the principle announced by that amendment4 ,the committee quotes from the letter1 as follows3 7a7 ,to give to the protest of a single shipper the effect of preventing the advance of any rate until the reasonableness of that advance was affirmatively determined by the commission1 would establish a hard and fast rule of doubtful fairness to the railroads and questionable advantage to the public4 7b7 ,under existing conditions we are of the opinion that it would be unwise to adopt the arbitrary limitation which this bill proposes4 7c7 ,if every proposed advance had to be investigated by the commission and officially sanctioned before it could take effect the number of cases to be considered would presumably be so great as to render this prompt disposition almost impossible4 7d7 ,it is further to be observed that the passage of such a bill at this time would impose a burden upon the commission1 which it should not be asked to undertake4 7e7 ,in instances of justifiable increase all necessary delay resulting from probable volume of cases would work injustice to the carriers4 7f7 ,until conditions become more stable and the substantive operations of the act are more completely observed in railway tariffs and practices1 we entertain the belief that a wider latitude of discretion on the part of carriers than this measure allows would be permitted4 7g7 ,it is also suggested that the practical effect of a proposed amendment might be to prevent voluntary reductions of rates by the carriers4 7h7 ,if no rate could be increased without the approval of the commission after affirmative showing by the carrier1 it might happen that many reductions now voluntarily accorded would not be made4 ,the nine reasons suggested by the commission why the original amendment offered to section #f should not be adopted1 fully sustain the committee in reporting the bill adversely1 and to a great extent1 fully justify the views which it has expressed in this report as influencing the actions of the committee in its adverse report upon the amendment proposed in the committee4 ,the committee is unable to appreciate the force of the suggestion of the modification proposed to the original amendment1 as in any way changing the principle embodied in it1 or the practical results which would flow from its adoption4 ,if the power was conferred upon the commission1 when a rate was advanced1 upon complaint to suspend the going into effect of that rate until a final hearing1 every objection urged by the commission to the adoption of the bill1 but the first two1 would be applicable to the modification proposed by the commission to the original amendment4 ,under the modification suggested by the commission the burden imposed upon it would be greater1 if possible1 than under the original amendment4 ,under the original amendment1 by force of the statute1 the filing of the protest would suspend the advanced rate1 and the hearing upon the merits would take place after the thirty days had expired4 ,under the suggestion of the commission conferring upon it the discretionary authority upon complaint to determine whether the rate should go into effect at the time prescribed by law or be suspended1 there is imposed an official quasi judicial duty upon the commission1 which it should not perform except upon proof that probably the rate sought to be advanced would ultimately be determined to be unreasonable4 ,remembering the large number of changes of rates daily1 and the fact that under the law the complaint could be filed at any time within the thirty days1 would it not be an impossible undertaking for the commission to hope to perform this official act with justice to the public or to the carrier8 ,in the multiplicity of duties now demanding its most earnest attention1 would not the practical operation of such a law compel it to enter a pro forma order of suspension until the final hearing1 when the commission1 upon an examination of the complaint1 is satisfied that it presented a prima facie case of unreasonable advance8 ,an official tribunal charged with the duty of preventing an unreasonable advance in rates would be constrained1 on the presentation of such a complaint1 to issue the order of suspension4 ,if the slightest doubt was raised in its mind as to the reasonableness of the advance1 its official obligation would require it to enter the order of suspension4 ,is there any question that such a prima facie case could be made where the consideration of the protest would1 of necessity1 be ex parte8 ,the committee is not1 therefore1 able to draw a distinction between the original amendment and that proposed in committee4 ,in the opinion of the committee the reasons stated in the letter of the chairman of the commission1 and the reasons given in this report1 not only justify it but compel an adverse report4 ,,conditions ,,confronting ,,congress4 #aj4 ,the act of ,june #bi1 #aijf1 took effect ,august #bh1 #aijf4 ,it has been operative only about twenty-eight months4 ,during half of that period of time the country has experienced the effects of a severe commercial panic2 business has been prostrated2 transportation paralyzed2 thousands of cars have been stored on the sidings1 and hundreds of engines have been placed in the shops1 awaiting the revival of business4 ,from conditions existing today1 we have a right to assume that before many months we shall be approaching normal conditions4 ,the commission has not had sufficient time to interpret and construe the recent law and to promulgate its orders in reference to the action of the carriers under it4 ,many of the traffic questions involved1 under the provisions of that law1 are yet to be construed and put in force by orders of the commission4 ,is it wise1 under these conditions1 to begin amending that statute by introducing provisions inconsistent with the basis of the act8 ,it has been shown that under the power conferred by that recent enactment1 the commission is vested with the power to change an existing unreasonable rate and to fix for the future a reasonable rate4 ,it has also the authority conferred upon it to award reparation to the extent of any injury resulting to a shipper1 by reason of the existence of an unreasonable rate4 ,attention has been called to the opinion of the commission1 as expressed in its decisions1 narrowing very greatly the right of the carrier to advance a rate that would meet with its approval upon hearing4 ,the committee must assume1 in considering this question1 that both the shippers and traffic officials1 with knowledge of the views entertained by the commission upon the question of an advance of rates1 will in the one case be prompt to avail themselves of that attitude of the commission1 and in the other that they will seek to so adjust their rates as to bring their schedules within the rulings of that tribunal4 ,the committee believes the highest duty of the commission is to bring together shippers and carriers1 to the end that each may see that neither can be permanently prosperous at the expense of the other4 ,it further believes that in many instances this effort has been made by the commission1 and successfully made4 ,it cannot be accomplished by statutes causing rigidity of rates4 ,the most sensitive spot in the great business dealings of the country is the railroad rate4 ,this rate must be raised or lowered1 not in obedience to a rigid statutory law1 but in obedience to the varying conditions of trade and commerce4 ,the ,national ,board of ,trade1 one of the most important commercial organizations in the country and one of the most influential1 met in ,washington on ,tuesday1 ,january #ai1 #aiji4 ,two proposed resolutions were submitted to that convention4 ,first1 by the ,philadelphia ,press ,league1 urging an amendment to the interstate commerce law1 to permit railroads engaged in interstate traffic to enter into the making of agreements under the supervision and control of the ,interstate ,commerce ,commission4 ,the second proposition was submitted by the ,scranton ,board of ,trade1 embodying the provisions of the amendment offered in the committee upon the consideration of ,senate bill #dbc1 and approved in the report of the ,interstate ,commerce ,commission as to the advance of rates4 ,these resolutions were referred to the committee on resolutions having charge of interstate commerce matters4 ,that committee1 through its chairman1 made the following report1 which was unanimously indorsed by the convention of the ,national ,board of ,trade3 ,the committee on interstate commerce law respectfully reports that1 in its judgment1 the ,national ,board of ,trade ought not at this time to recommend any change in the laws relating to interstate commerce4 ,the convention was not satisfied with the passage of this resolution1 but the chairmen of the several committees of that association were subsequently authorized and directed by resolution to urge the conclusions of the board in its name whenever possible4 ,the country is now demanding repose in its industrial upbuilding4 ,it is not a time to experiment and to change the basis upon which the former acts to regulate commerce have been predicated4 ,the recent law passed by ,congress so greatly enlarging the authority of the commission should1 before changes are sought1 have the opportunity of at least a fair trial as to the value of its provisions in the regulation of interstate commerce4 ,when trial has been given and normal conditions have been restored1 any defect in the regulating statute can then1 in the light of experience1 be promptly remedied4 ,,footnote3 ,j ,the average rate per ton mile in #aijh was #g4ed mills4 ,,statistics ,,of ,,american ,,railways ,,for ,,the ,,year ,,ending ,,june #cj #aiji ,,prepared ,,by ,,slason ,,thompson ,,manager ,,of ,,the ,,bureau ,,of ,,railway ,,news ,,and ,,statistics ,,introduction ,the function of accounts is to record facts4 ,true accounting is nothing more1 nor nothing less1 than the correct statement of what in fact has taken place1 and the measurement of that fact in an appropriate figure4--,prof ,henry ,c4 ,adams4 ,to be of the highest value1 statistics must be accurate1 uniform and continuous4 ,nothing in the nature of statistics under official authority more confusing and misleading has ever been issued from the government printing office than those portions of the ,twenty-third ,annual ,report of the ,interstate ,commerce ,commission for the year ending ,june #cj1 #aiji1 purporting to deal with the financial results of the railways of the ,united ,states for the fiscal years #aijh and #aiji4 ,on the first page of the ,report the financial results of the last two fiscal years are set down thus3 ,operating ,operating ,operating ,revenues ,expenses ,taxes ,income ---------------------------------------- ----------------------- #aijh #b1dfa1eba1cde #a1gba1cbg1aee #hc1gge1hfi #fee1dah1cba #aiji #b1did1aae1ehi #a1ffb1ajb1agb #hi1jbf1bbf #gdb1ihg1aia ---------------------------------------- ----------------------- ,the mileage operated in #aijh is stated as #bbh1afd4hj and in #aiji as #bcc1jjb4fg miles4 ,on page #ed of the report the summary compiled from the monthly reports gives the following comparative figures for the same years3 ,total ,total ,operating ,operating ,net ,revenue ,taxes ,revenues ,expenses #aijh #b1dba1edb1jjd #a1fhg1add1ige #gcd1cig1jbi #hc1gge1hfi #aiji #b1ddc1cab1bcb #a1fae1dig1bcc #hbg1had1iih #hi1jbf1bbf ---------------------------------------- ----------------------- ,the mileage is the same as above1 with the added information that the mileage operated at the end of the fiscal year #aijh was #bbi1ieb4cf2 and at the end of #aiji1 #bcd1ahb4gj4 ,it will be observed that the taxes in both summaries are identical1 but in one they are subtracted from net revenues and in the other they are not4 ,an insert facing page #ed1 giving the details of the monthly reports from which the table on that page is compiled1 reveals the common source of both sets of returns and gives the key to the discrepancy between them4 ,this is no less than the inclusion in the former of the revenues and expenses from outside operations1 which are excluded from the summary on page #ed1 in which the net revenue only from such outside source is mentioned and added to the net revenue from rail operations4 ,the impropriety and inaccuracy of such accounting becomes manifest when its effect is seen to vary the ratio of operating expenses to earnings from #fi4fg to #fi4ic in #aijh1 and from #ff4ab to #ff4fd in #aiji4 ,on pages #fd and #fe appears another set of income figures for the year ending ,june #cj1 #aijh4 ,this is compiled from the annual reports of the carriers operating #bcj1did miles of line1 from which the mileage of switching and terminal companies is excluded4 ,it supplies the following summary3 ,,year ,,ending ,,june #cj1 #aijh4 ,rail operations3 ,operating revenues #b1cic1hje1ihi ,operating expenses #a1ffi1edg1hgf ,net operating revenue #gbd1beh1aac ,taxes #gh1fgc1gid ,net revenue from outside operations #e1igg1bfh ,operating income #fea1efa1ehg ,ratio of operating expenses to earnings #fi4gb ---------------------------------------- -------------------- ,as these figures are compiled from the only returns which furnish data respecting all the various phases of railway operation in the ,united ,states1 they will be accepted in subsequent pages as the official returns for #aijh4 ,the above figures are exclusive of returns from switching and terminal companies1 whose earnings1 according to the monthly reports in #aijh1 were #bc1jbh1ggc2 expenses1 #af1chc1dha1 and taxes1 #a1bde1bfa4 ,,grossly ,,exaggerated ,,dividends4 ,but these are venial variations compared to the deliberate misrepresentation as to dividends on page #fb of the report1 where it is stated3 ,the amount of dividends declared during the year was #chf1hgi1cfb1 being equivalent to #g4ii per cent on dividend-paying stock4 ,for the year ending ,june #cj1 #aijg1 the amount of dividends declared was #cjh1jhh1fbg4 ,this statement is the more reprehensible because the inaccuracy of the reference to dividends in #aijg was exposed a year ago1 and #aae1eej1iji of the #aijh total is proved to be fictitious by the line in the condensed income statement of the report 7page #fe7 reading3 ,dividends declared from current income1 #bga1chh1dec4 ,it takes dividends from surplus1 dividends by leased companies1 and dividends from surplus of leased companies to make up that gross deception as to the dividends declared in #aijh4 ,and all these several dividends are only made statistically possible by including in current income #bgd1dej1aib other income ,,not derived from transportation4 ,it is impossible to overestimate the harmful popular effect of exaggerating the dividends paid by the railways by #hj1fic1ffe in #aijg and #aae1eej1iji in #aijh4 ,the public mind does not stop to distinguish between dividends declared1 dividends paid out of income and net dividends actually paid out of net earnings of railway traffic4 ,this whole statistical structure of fictitious dividends has been built up in successive reports upon the false premise of including intercorporate payments on both sides of the income account4 ,what the public is entitled to know is the disposition of the gross sum paid by it for transportation services--those services which the ,act to ,regulate ,commerce was passed to regulate4 ,,bewildering ,,changes ,,in ,,nomenclature4 ,scattered through the official reports for #aijh the student is confronted with numerous changes in terminology1 many of which are for the better1 but nearly all impair that continuity of names and phrases which is so desirable in comparative statistics4 ,for instance1 the public has been taught1 by official practice1 to speak of the revenues of the railways derived from the transportation of passengers1 freight1 mail and express1 as ,gross earnings from operation4 ,the phrase is descriptive1 definite and clear4 ,for this the ,commission has substituted ,rail operations1 operating revenues4 ,former reports spoke of ,income from operation1 which now gives place to ,net operating revenue4 ,to this is added the net revenue from outside operations1 making a ,total net revenue1 from which ,taxes accrued are deducted1 the remainder being ,operating income4 ,it will be perceived that this last phrase1 which covers revenues from which operating expenses and taxes have been deducted and to which the net revenues from outside operations 7sometimes they involve a deficit7 have been added1 comes perilously near the ,income from operation of preceding reports4 ,the exclusion of the reports from switching and terminal companies in some instances1 while they are included in others1 introduces an element of perplexing uncertainty at every turn and really vitiates all comparisons with former reports4 ,the ,commission itself seems to realize the bog into which the official statistician has plunged its accounts1 when it says3 ,the changes in the income account submitted in the report under consideration are so far reaching in their results1 in a number of instances1 as to impair direct or close comparison with figures for similar items in previous statistical reports4 ,and now it is proposed to throw all the accumulated statistics of twenty-two years out of consecutive gear by substituting the calendar for the fiscal year4 99 99 99 99 99 ,the writer has deemed the foregoing comments necessary to clear the atmosphere before proceeding to the introductory summary showing the salient features of the railway industry in #aiji compared with similar items in #ahii and #ahhi4 ,the data for #aiji is compiled from the annual reports to this ,bureau covering #bba1acb miles of operated line1 together with the monthly reports to the ,commission of earnings and expenses of all classes of roads for that year1 covering an average operated mileage of #bcc1jjb4 ,,summary ,,of ,,railway ,,results ,,in #aiji1 #ahii ,,and #ahhi1 ,,with ,,percentages ,,of ,,increase ,,for ,,each ,,item ,,by ,,decades4 7m #a1jjj2 d decrease47 ,item #ahhi #ahii ---------------------------------------- -------------------- ,miles of line #aec1che #ahg1ecd ,miles of all track #aie1ieh #bej1ghd ,net capitalization 7m7 #g1cff1gde #i1dcb1jda ,net capitalization per mile of line #dh1jba #ea1gfd ,net capitalization per mile of track #cg1eic #ch1ebg ,gross earnings from operation 7m7 #ifd1haf #a1cac1faj ,gross earnings per mile of line #f1bij #g1jje ,expenses of operation 7m7 #fdd1gjf #hef1ifh ,expenses of operation per mile of line #d1bjd #d1egj ,net earnings from operation 7m7 #cbj1aja #def1fdb ,net earnings per mile of line 7m7 #b1jhf #b1dce ,ratio of expenses to earnings #ff4ha #fe4bd ,receipts from freight 7m7 #bed1jda #bia1aac ,receipts from passengers 7m7 #fdb1ffb #iac1gcg ,receipts from mail 7m7 #ba1ija #ce1iii ,receipts from express 7m7 #ai1ggh #bf1gef ,passengers carried 7m7 #dgb1aga #ebc1agf ,passengers carried one mile 7m7 #aa1eec1hbj #ad1eia1cbg ,receipts per passenger per mile 7cents7 #b4afe #a4igh ,freight tons carried 7m7 #eci1fci #iei1gfc ,freight tons carried one mile 7m7 #fh1gbg1bbc #abc1ffg1beg ,receipts per ton per mile 7mills7 #i4bb #g4bd ,locomotives1 number #bi1jcf #cf1gjc ,locomotives1 weight 7tons7 #a1afa1ddj #a1ide1bei ,passenger cars 7number7 #bd1ehf #cc1hej ,freight cars1 number #hbi1hhe #a1bie1eaj ,freight cars1 capacity 7tons7 #af1eig1gjj #cd1igh1ggj ,average tons in train #agi #bdc ,employes1 number #gjd1gdc #ibh1ibd ,employes1 compensation #chi1ghe1ffdebb1ifg1hif ,proportion of gross earnings #dj4dj #ci4hj ,proportion of operating expenses #fj4df #fa4jb ,taxes #bg1eij1cid #df1ccg1fcb ,per mile of line #ahj #bdg ,proportion of gross earnings #b4hf #c4ec ---------------------------------------- -------------------- table continued ,increase,increase ,item #aiji over over #ahhi #ahii ---------------------------------------- -------------------------- ,miles of line #bcd1ahb #eb4g #bd4i ,miles of all track #cdj1jjj #gc4e #ce4e ,net capitalization 7m7 #ac1ejh1gaa #hc4c #dc4b ,net capitalization per mile of line #eg1ifb #bj4g #aa4i ,net capitalization per mile of track #ci1gcj #e4f #c4a ,gross earnings from operation 7m7 #b1ddc1cab #aec4b #hf4j ,gross earnings per mile of line #aj1dhf #ff4g #di4g ,expenses of operation 7m7 #a1fae1dig #aej4e #hh4d ,expenses of operation per mile of line #f1icc #fd4i #ea4g ,net earnings from operation 7m7 #hbg1had #aeg4i #ha4b ,net earnings per mile of line 7m7 #c1eeb #gj4b #de4h ,ratio of expenses to earnings #ff4ab d #b4c #a4j ,receipts from passengers 7m7 #efd1cjb #abb4a #ic4h ,receipts from freight 7m7 #a1fhb1iai #afa4h #hd4a ,receipts from mail 7m7 #ej1ice #acb4f #da4e ,receipts from express 7m7 #fc1ffi #bba4i #acg4i ,passengers carried 7m7 #hhj1gfd #hf4e #fh4c ,passengers carried one mile 7m7 #bi1deb1jjj #aed4h #aja4h ,receipts per passenger per mile 7cents7 #a4iaf d #aa4e d #c4a ,freight tons carried 7m7 #a1dhf1jjj #age4c #ed4h ,freight tons carried one mile 7m7 #bbb1ijj1jjj #bbd4c #hj4b ,receipts per ton per mile 7mills7 #g4ee d #ag4j #d4b ,locomotives1 number #eg1bbj #ig4j #ee4i ,locomotives1 weight 7tons7 #d1aeh1jjj #beh4j #aac4g ,passenger cars 7number7 #df1jbf #hg4b #ce4i ,freight cars1 number #b1aac1dej #aed4f #fc4a ,freight cars1 capacity 7tons7 #gc1abf1cgj #cdj4e #aji4j ,average tons in train #chh #aaf4i #ei4f ,employes1 number #a1ebd1jjj #aaf4b #fd4j ,employes1 compensation #a1jjc1bgj1jjj #aeg4d #ia4h ,proportion of gross earnings #da4jj #a4d #c4j ,proportion of operating expenses #fb4aj #b4g #a4g ,taxes #ia1bhj1jjj #bcj4h #if4i ,per mile of line #cij #aaf4f #eg4i ,proportion of gross earnings #c4gc #cj4d #e4f ---------------------------------------- -------------------------- ,there is not a line or figure of this table1 with its percentages of increase1 that does not testify at once to the amazing growth of ,american railways and to the equally amazing economical basis upon which they render incalculable services to the ,american people on terms that challenge the admiration of less favored peoples4 ,,review ,,of ,,the ,,last ,,three ,,calendar ,,years4 ,where the ,twenty-second ,annual ,report of the ,interstate ,commerce ,commission minimized the loss inflicted on the railways by the business depression of #aijh1 the ,twenty-third ,annual ,report naturally1 and by reason of the same cause1 minimizes the substantial recovery of #aiji4 ,where the former showed a loss in gross earnings of only #afd1dfd1ida below the preceding year1 when the actual result of the depression was nearly #cjj1jjj1jjj 7#bih1deg1egf71 the latter shows a recovery of only #ba1ggj1bbh1 when it was approximately #bhb1jjj1jjj 7#bha1icd1icb74 ,the explanation of this discrepancy is1 of course1 the ,commission's adherence to its own fiscal periods of statistics1 which do not happen1 in this instance1 to coincide with the ebb and flow of adversity and prosperity4 ,the true movement of railway traffic before1 during and after the recent business depression is more nearly reflected in the following figures for the calendar years #aijg1 #aijh and #aiji1 compiled from the monthly returns to the ,interstate ,commerce ,commission1 divided into periods of six months3 ,,summary ,,of ,,gross ,,earnings ,,of ,,the ,,railways ,,during ,,the ,,calendar ,,years #aijg1 #aijh ,,and #aiji1 ,,by ,,months ,,and ,,half-,,yearly ,,divisions4 #aijg #aijh #aiji ---------------------------------------- ----------------------------- ,january #aii1jjj1jjj #agc1faa1hji #ahc1aci1dai ,february #agh1cjj1jjj #afa1jhe1dic #agd1dbe1hcb ,march #baa1gjj1jjj #ahc1eji1ice #bje1gjj1jab ,april #bad1hjj1jjj #age1jga1fjd #aif1iic1ajd ,may #bbd1hjj1jjj #agd1ebg1ach #bja1egb1jgb ,june #bbc1jjj1jjj #ahd1jdg1baf #baj1cef1ife ---------------------------------------- ------- ,half year #a1bea1fjj1jjj #a1jea1hec1aie #a1agb1ahe1djd ---------------------------------------- ------- ,july #bbh1fgb1bej #aie1bde1fee #bai1ifd1gci ,august #bda1cjc1dfi #bjf1hgg1jad #bcf1eei1hgg ,september #bcd1chf1hii #bai1jac1gjc #bdf1jfe1iee ,october #bej1ege1geg #bcc1aje1jdb #bfj1fac1jec ,november #bbj1dde1dfe #baa1bha1ejd #bdg1cgj1ied ,december #aid1cjd1ifi #bje1dee1agj #bbb1jjf1ahc ---------------------------------------- ------- ,half year #a1cfi1fhh1hji #a1bgj1igh1jch #a1dcb1ehj1gfa ,total #b1fba1bhh1hji #b1cbb1hca1bcc #b1fjd1gff1afe ,average mileage #bbg1jjj #bca1ehd #bcd1iej ,earnings per mile #aa1edh #aj1jcj #aa1jhf ---------------------------------------- ----------------------------- ,,summary ,,of ,,operating ,,expenses ,,of ,,the ,,railways ,,during ,,the ,,calendar ,,years #aijg1 #aijh ,,and #aiji1 ,,by ,,months ,,and ,,half-,,yearly ,,periods1 ,,with ,,ratios ,,to ,,gross ,,earnings4 #aijg #aijh #aiji ---------------------------------------- ----------------------------- ,january #acd1bbe1jjj #acb1ejb1hcj #acb1fei1jcg ,february #aba1ejj1jjj #abc1ggc1ijf #abe1bbi1jga ,march #adb1dbe1jjj #abh1bjj1jfe #acf1jhf1bii ,april #add1iij1jjj #abd1bhd1afd #acd1fab1egf ,may #aea1gdj1jjj #abc1icb1efh #ace1hdf1cja ,june #aej1ebe1jjj #abd1bjh1efa #acf1afj1gge ---------------------------------------- ------- ,half year #hde1dje1jjj #gef1ijb1jid #hjj1eid1jei ,ratio #fg4g #gb #fh4c ---------------------------------------- ------- ,july #aeb1iib1dde #abg1igh1cjd #ada1fac1ifg ,august #aef1hcg1iad #aca1eeg1dge #adf1age1cch ,september #aef1fca1ghj #acg1aee1adc #aej1fba1iii ,october #aff1iii1bff #add1aie1ccj #aef1fbh1eac ,november #aed1aej1dfh #acf1hji1dba #aec1jdc1eii ,december #adb1fca1jjh #acf1hfg1fbb #aec1fii1egh ---------------------------------------- ------- ,half year #icj1bdb1hha #had1efc1bie #ija1ghb1iid ,ratio #fh #fd4a #fb4i ---------------------------------------- ------- ,total #a1gge1fdg1hha #a1ega1dfe1chi #a1gjb1cgg1jec ,ratio #fg4h #fg4g #fe4d ---------------------------------------- ------- ,net operating revenue #hde1fdj1ibh #gea1cfe1hdd #ijb1chi1aac ,taxes #hc1aef1ahh #hf1hgb1hhe #ib1ifd1eaj ---------------------------------------- ------- ,net operating income #gfb1dhd1gdj #ffd1dib1iei #hji1dbd1fjc ---------------------------------------- ----------------------------- ,through these tables the reader is able to trace the upward course of railway receipts in #aijg to their culmination in ,october of that year2 their rapid drop to ,february1 #aijh2 through the hard summer following to the gradual recovery of #aiji1 until in ,october last they reached the highest monthly total on record4 ,concurrently with this story of the depression of #aijh1 the tale of railway distress and of the drastic measures adopted to meet the emergency can be read in the half-yearly ratios4 ,the ratio for the fiscal year #aijf-'jg was #fg4ec1 and the shadow of approaching trouble was shown in an increase of this ratio to #fg4g for the first six months in the table4 ,by ,december this ratio had risen to #gc4dj4 ,the enormous receipts of the autumn months held the ratio for the six months down to #fh4 ,in ,february1 #aijh1 it marked the high and ruinous figure of #gf4hd1 and from that point the trend1 due to severe retrenchments1 was steadily downward until it touched #fj4aj in ,october1 #aiji4 ,the ratio of #fd4a for the second half of #aijh is the true measure of the ability of the railways to cut their expenditures to fit the times4 ,but they were on bed rock1 as the succeeding months of small receipts proved1 when the ratio went up to #gb4dc in ,january1 and averaged the high figure of #fh4c for the first six months of #aiji4 ,the heavy receipts of ,october and ,november without a corresponding expansion of expenditures resulted in the phenomenally low ratios of these months4 ,but the severity and necessities of operating conditions in ,december1 #aiji1 ran the ratio of expenses up to #fi4bc4 ,the net earnings for the three years under consideration are apt to lead to erroneous conclusions as to the effect of the depression4 ,neither the loss in #aijh nor the recovery in #aiji reflects the true swing of the pendulum4 ,the one minimizes the loss1 because it conceals the cessation of all constructive work1 the curtailment of betterments and improvements1 and the postponement of all purchases for replacements except of the most immediate and imperative nature2 the other exaggerates the recovery because of heavy receipts without the resumption of the concurrent expenditures that should attend them4 ,the railways in the fall of #aiji were simply doing business on the margin of facilities provided during the fat months of #aijg in anticipation of a continuation of prosperous times4 ,some idea of the extent of this margin may be gained from the parking of #djj1jjj freight cars in the yards with #bjj1jjj in the shops in ,april1 #aijh4 ,at no time since has this margin been wholly exhausted4 ,but a continuation of traffic on the scale of the past six months will necessitate an immediate expenditure of #ajj1jjj1jjj to #aej1jjj1jjj for the replacement of freight cars alone4 ,,income ,,account ,,for ,,the ,,calendar ,,year #aiji4 ,the monthly summaries issued by the ,interstate ,commerce ,commission from time to time afford the details for the construction of the following statement of the transportation revenues and expenses of the railways for the calendar year #aiji1 from which the averages per mile and the ratios have been computed on the basis of #bcd1iej miles of operated line4 ,,statement ,,of ,,operating ,,receipts ,,and ,,expenses ,,of ,,the ,,railways ,,of ,,the ,,united ,,states ,,for ,,the ,,calendar ,,year ,,ending ,,december #ca1 #aiji1 ,,with ,,amounts ,,per ,,mile ,,and ,,ratios4 7,average miles of line operated1 #bcd1iej47 7a7 ,ratio to ,amount ,per ,mile ,gross ,earnings ---------------------------------------- ----------------------------- ,receipts from3 ,freight #a1gif1beh1cad #g1fde #fh4if ,passengers #fja1gbb1iei #b1efa #bc4aj ,other transportation revenues #ahb1gjf1jij #ggg #g4ja ,non-transportation sources #bd1jhj1hjb #ajc 4#ic --------------------------------- ,total revenues #b1fjd1gff1afe #aa1jhf #ajj4jj ,expenses3 ,maintenance of way and structures #cci1afg1fff #a1ddh #ac4jf ,maintenance of equipment #chg1aee1jhj #a1fdd #ad4hc ,traffic expenses #ec1beg1djh #bbc #b4ja ,transportation #heg1cci1jcg #c1fej #cb4ib ,general expenses #fe1dda1jec #bhj #b4eb ,unclassified #af1hji -- -- --------------------------------- ,total expenses #a1gjb1cgg1jeb #g1bde #fe4ce ,net operating revenues #ijb1chi1aab #c1hda #cd4fe ,profit from outside operations #c1cfg1gac #ad --------------------------------- ,net revenues #ije1gef1hbe -- -- ,taxes #ib1ifd1eaj #cie #c4ef ---------------- ,net income #hab1gib1cae #c1dfj ---------------------------------------- ----------------------------- 7a7 ,at the close of the year the reports covered #bcf1aff miles of operated line4 ,unfortunately there are no similar figures for the calendar year #aijg with which comparisons may be made1 but the official returns for the year ending ,june #cj1 #aijg1 when railway earnings reached their maximum before the panic of that year1 afford the following instructive comparisons3 ,year to ,year to ,june #cj1 #aijg ,dec4 #ca1 #aiji ---------------------------------------- ---------------------------- ,gross earnings #b1ehi1aje1egh #b1fjd1gff1afe ,per mile #aa1chc #aa1jhf ,operating expenses #a1gdh1eae1had #a1gjb1cgg1jec ,per mile #g1fhg #g1bde ,ratio #fg4ec #fe4ce ,net revenues #hdj1ehi1gfd #ijb1chi1aab ,per mile #c1fif #c1hda ,taxes #hj1ajh1jjf #ib1ifd1eaj ,per mile #cfg #cie ---------------------------------------- ---------------------------- ,it will be perceived that while the earnings in #aiji exceeded those of #aijg by over #ae millions they were almost #cjj less per mile1 while the operating expenses were actually #ddb less per mile4 ,the decreased operating ratio in #aiji bears unmistakable testimony as to where the increase in net revenues came from4 ,with an increase of nearly #i1jjj miles of line only #cci1afg1ffe was spent on maintenance of way and structures in #aiji against #cdc1edd1ijg in #aijg1 and the urgent demands of returning activity made the expenditures on this account liberal in comparison with those for the year ending ,june #cj1 #aiji1 i4 e4 #caa1cfh1jhc1 or #a1ccf per mile4 ,it will be years before the railways recover from the economies forced on them by the loss of #cjj1jjj1jjj in revenues in #aijh4 ,,unregulated ,,regulation ,,of ,,american ,,railways4 ,today the railways of the ,united ,states are cribb'd1 cabin'd and confined in their services to the ,american people1 not so much by the laws for their regulation as by the spirit in which those laws are administered4 ,to the general tenor and purposes of statutory regulation the railways have become largely reconciled2 but from the spirit in which the laws are sought to be enforced1 there has to be continuous appeal to the courts and to the public sense of justice4 ,regulation of railways has been persistently interpreted by political ,commissions to spell reduction of rates and exacting conditions that would drain the purse of ,fortunatus4 ,between #ahhi1 when the ,interstate ,commerce ,commission's statistics first became a valuable index of railway operation1 and #aiji1 the average rate per ton mile has fallen from #i4bb to #g4ee mills4 ,on the freight tonnage of #aiji this meant a reduction of over #cgb1jjj1jjj in the yearly revenues of the railways4 ,the railways suffered that loss from their income when they needed every cent of it to maintain the people's highway in a condition to transport the people's ever-growing traffic4 ,the railways lost it1 but who got it8 ,the people8 ,search the market reports of the land1 from ,eastport to ,san ,diego1 and you will find incontestable proof that not one cent of these millions reached the pockets of the people1 in whose name all regulation of railways is demanded and for whose benefit all reductions are claimed4 ,the average rate on all commodities has gone down1 the price of every commodity transported by the railways has gone up4 ,who has pocketed the difference8 ,there can be only one answer--the producers1 the shippers and the traders4 ,today nine-tenths of the increased cost of living in the ,united ,states is chargeable to this ever vigilant and aggressive coalition4 ,for everything the railways must buy--labor1 supplies1 money--they have to pay the advanced prices of the day4 ,but the protests of the shippers and the rulings of the ,commission forbid their raising a rate or adopting a money-saving economy4 ,they attempted to readjust freight rates in #aijj one-fiftieth of a cent per ton mile above a ruinously low average and the outraged shippers secured the passage of the ,hepburn ,act6 ,how the federal ,commission and shippers work together for the so-called regulation of the railways is evidenced in the unbroken tenor of the decisions handed down by the ,commission4 ,out of #ceg decisions printed during the year #aijh-ji1 no less than #bai1 or #fa4c1 were orders granting reductions of rates or reparation for charges found comparatively excessive or unreasonable4 ,in not one case in a score was the rate found excessive or unreasonable per se4 ,in only one case out of the #ceg was an increased rate ordered1 and this was done reluctantly and as unavoidable4 ,although the decisions are for the most part the unanimous finding of the ,commission1 the following table distributes the opinions of the year among its members into dismissals and reductions or reparations among the ,commissioners writing them3 ,granting ,opinion by ,dismissing ,reductions or ,complaints ,reparation ---------------------------------------- ------------------- ,chairman ,knapp #ba #bj ,commissioner ,clement #af #bi ,prouty #ac #dj ,cockerill #bj #bj ,lane #bj #db ,clark #bi #bh ,harlan #ai #dj -------------------------- ,total #ach #bai ,per cent #ci4g #fa4c ---------------------------------------- ------------------- ,some of the cases upon which the ,commission is called on to pass are so trivial as to be beneath the notice of a justice's court1 while others involve issues so momentous as to threaten the whole structure of railway rates by which the unparalleled prosperity of the country has been made possible4 ,but the number of cases reaching the ,commission for adjudication is insignificant compared with the grist of informal reparation orders that runs an endless stream through its regulating rollers4 ,in the twelve months from ,december #a1 #aijh1 to ,november #cj1 #aiji1 these aggregated no less than #b1bbc separate orders involving amounts all the way from #dg cents to #ad1gag4fd1 as seen in the following orders3 #gajj4 ,larabee ,flour ,mills ,company v4 ,atchison1 ,topeka ,santa ,fe ,railway ,company4 ,september #aa1 #aiji4 ,refund of #j4dg on shipment of cotton bags from ,kansas ,city1 ,mo41 to ,hutchinson1 ,kas41 on account of excessive rate4 #cfbi4 ,lackawanna ,steel ,company v4 ,central ,railroad ,company of ,new ,jersey4 ,june #bf1 #aiji4 ,refund of #ad1gag4fd on shipments of spiegeleisen from ,newark1 ,n4 ,j41 and ,hazard1 ,pa41 to ,buffalo1 ,n4 ,y41 on account of excessive rates4 ,multiplying these awards by the number of orders enables the reader to imagine the range of their respective pettiness or portentous possibilities4 ,it is doubtful if the ,american people1 or even the ,interstate ,commerce ,commissioners themselves1 realize how the formal decisions and informal orders of the ,commission are slowly but surely whittling away the safe margin of ,american railway profits4 ,at the rate of two decisions every three days and forty informal orders per week1 the work of incipient confiscation proceeds with remorseless enthusiasm4 ,with the best intentions in the world the present ,interstate ,commerce ,commission is so enmeshed in its own anti-railway traditions1 so enamored of the administrative control theories of its statistician1 so covetous of unbridled1 irresponsible authority to tear down where it has no constructive capacity1 that anything like co-operation between the ,commission and the railway management for the public good seems out of the question4 ,to the writer it appears that only blind rejection of facts can find any conserving element in the regulation of railways as at present administered4 ,signs of a helpful disposition in official acts are entirely lacking4 ,the ,senate and ,house calendars groan under bills for the further regulation and restriction of the railways1 but not one contains a promise of relief4 ,for not one is there a genuine public demand4 ,and what is the situation as this is written8 ,it can be stated in a few lines4 ,as a consequence of the drop of #cjj1jjj1jjj in gross earnings in #aijh1 the railways in #aijh and #aiji cut #bgg1jjj1jjj out of their expenditures4 ,this was done mainly at the expense of maintenance of way and structures and in a cessation in the purchase of equipment1 but the so-called economies of postponed expenditures permeated every line of railway extension1 operation and replacement4 ,in #aijh1 with #f1jjj more miles of track to maintain1 #ah1ghh1bag less was spent for maintenance than in #aijg1 and in #aiji with #ab1jjj more miles of track #cb1agf1hbd less was expended4 ,between #ahig and #aijg the expenditures for maintenance of way increased from #aei1dcd1djc to #cdc1edd1ijg1 or over #aae4 ,this means an increase of approximately #h a year1 or at least #be1jjj1jjj on present plant4 ,therefore at least #dc1jjj1jjj was withheld from this essential line of railway maintenance in #aijh and fully #hb1jjj1jjj in #aiji1 a total of #abe1jjj1jjj4 ,the saving on equipment was nearly as great and is dealt with in the body of the report4 ,a comparison of the income accounts for the month of ,october1 #aijg and #aijh1 corroborates the foregoing statement as to the economies forced on the railways by the adverse winds of regulation and business depression4 ,month of ,october #aijg #aiji ---------------------------------------- --------------------- ,earnings from operation #bej1ege1geg #bfj1fac1jec ,operating expenses #aff1iii1bff #aef1fbh1eac ---------------------------- ,net earnings #hc1egf1dia #aac1ihd1edj ,operating ratio #ff4fd #fj4aj ---------------------------------------- --------------------- ,the canker worm in this1 the most promising flower of returning prosperity1 is revealed in the abnormal ratio of #fj4aj for ,october1 #aiji1 or nearly #g below the ,american average4 ,now this #g on the revenues of last ,october means that in some way over #af1jjj1jjj less than normal was expended on ,american railways in that month alone4 ,and ,october1 #aiji1 was only a sample of how railways had cut expenses for #bd consecutive months4 ,that this should be so1 with no reduction in the scale of wages or the price of supplies1 is1 in the view of the writer1 a situation of serious national concern4 ,happily he is not charged with any commission to suggest how or where the deferred debt of nearly #cjj1jjj1jjj to efficient railway road and equipment is to be met4 ,but that it must be met1 to place the railways in as good condition as they were before the panic of #aijg1 when the cry was for more1 not less facilities1 does not admit of question4 ,if it1 together with the advance in wages now being adjusted1 is to be met out of income1 only an advance in freight rates can take care of it4 ,if out of fresh capital1 it can only be coaxed from the pockets of shrewd investors by rates of interest that discount the risk attendant on the unregulated and irresponsible regulation of railway revenues1 resources and responsibilities4 ,and it is proposed to make an irresponsible ,commission1 unfamiliar with the necessities of the situation and unversed in the ways and means of raising capital arbiters of these necessities1 ways and means4 ,all attempts to meet such a situation by legislation1 unless it be directed to a reform of the instrumentalities of regulation1 must prove ineffectual4 ,in a broader1 saner1 more helpful administration of the laws already on the federal and state statute books lies the hope for the future of the great ,american transportation industry4 ,whate'er is best administered is best4 ,,the ,,bureau',s ,,statistics ,,for #aiji4 ,thus far what has been written has related almost wholly to the financial aspect of the transportation industry as presented through the monthly reports of the railways4 ,while these in their way serve as an admirable barometer in keeping the public informed as to general business conditions throughout the ,union1 they throw little light upon the railway operations behind the financial results4 ,they are absolutely dumb on the main question upon which all railway legislation and regulation should hinge--adequate and efficient public service4 ,in the following pages the ,bureau attempts to remedy this omission1 in the essential particulars for the year ending ,june #cj1 #aiji4 ,the reports from which its summaries have been compiled were received almost a month earlier this year than last1 but the publication of the ,bureau's statistics has been delayed in order to make the usual comparisons with the ,official ,statistics for #aijh4 ,the writer is advised from ,washington that the fault for this unusual delay rests with the ,government printer--whose office is overwhelmed with ,congressional and departmental work--and not with the ,interstate ,commerce ,commission or its ,bureau of ,statistics and ,accounts4 ,for the first time1 the reports to this ,bureau cover the division of freight movement into the seven chief commodities2 the separation of revenues from ,mail and ,express2 the distribution of expenses for injuries and damages1 and the summaries of expenses for maintenance of way and equipment1 traffic expenses1 transportation expenses and general expenses4 ,it is believed that with the addition of these accounts the annual report of the ,bureau has become so comprehensive as to warrant its publication hereafter at an earlier date1 without waiting on the publication of the official statistics for the preceding year4 ,this year the ,bureau has received reports from #cfh roads operating #bba1acb miles of line or approximately #id4d of the mileage and carrying over #ig of the traffic of the country4 ,last year reports were received covering #baf1dfj miles4 ,the increase of #d1fgb miles fairly represents the actual increase of railway mileage in the ,united ,states for the twelve months4 ,in presenting these statistics1 the writer has endeavored to make them as colorless summaries of facts as an earnest desire to arrive at the truth permits4 ,such comment as accompanies them will be confined to comparisons and elucidation and not to the furtherance of any personal theories4 ,for the sake of brevity1 the ,interstate ,commerce ,commission will be referred to herein as the ,commission2 the ,commission's ,statistics of ,railways in the ,united ,states as ,official ,statistics and the year ending ,june #cjth will be implied before the year named unless otherwise specified4 ,the statements as to foreign railways are compiled from the latest official sources available4 ,here the writer wishes to record his personal appreciation of the assistance rendered by the executives and accounting officials of the railways1 whose co-operation has made this report possible4 ,in the midst of increasing burdens imposed on them in reporting to federal and state commissions and legislatures1 the requests for information from this ,bureau might have seemed excusably negligible4 ,the completeness of the report itself testifies to the cordiality with which the ,bureau's work is viewed4 ,acknowledgments are also due to ,federal and ,state officials for their uniform courtesy in responding to the many requests from this ,bureau1 and the writer has been much gratified to receive from the chief government railway official of one foreign country the assurance that he considers its ,annual ,report one of the most comprehensive and useful compilations of statistical matter relating to railways that has come into his hands4 ,,slason ,,thompson4 ,,chicago1 ,april #cj1 #aiaj4 ,i ,,mileage ,,in #aiji ,according to the preliminary income report of the ,interstate ,commerce ,commission for the year ending ,june #cj1 #aiji1 compiled from the monthly returns1 the average railway mileage operated in the ,united ,states during the year was #bcc1jjb4fg miles2 and the total mileage operated at the end of the year was #bcd1ahb4gj4 ,the former total is made up of3 ,large roads operating #bea miles or more #bad1iaf4hf miles ,small roads #bej or less #af1hja4eb ,switching or terminal companies #a1bhd4bi ----------------- ,total #bcc1jjb4fg miles ---------------------------------------- --------------------- ,the returns to this ,bureau1 compiled from the annual reports for the same year1 cover #bba1acb miles1 against #baf1dfj in #aijh1 an increase of #d1fgb miles4 ,reports to the ,commission for ,december1 #aiji1 showed a total operated mileage of #bcf1aff miles4 ,in its report dated ,december #ba1 #aiji1 the ,commission stated that for the year ending ,june #cj1 #aijh1 substantially complete returns had been received for #bcj1did miles of line operated1 including #h1ffa4cd miles used under trackage rights4 ,these are the official figures of mileage for #aijh1 which will be used in all subsequent comparisons with the ,bureau's figures for #aiji--the latter1 however1 may include some switching and terminal mileage excluded from the former4 ,of the mileage reporting to this ,bureau1 #h1ibg miles were operated under trackage rights1 leaving a net of #bab1bje miles of line covered by capitalization and rental4 ,assuming that the total operated mileage in the ,united ,states at the close of the fiscal year #aiji was #bcd1ahb1 the complete returns to this ,bureau cover approximately #id4d of the mileage and #ig of the traffic of all the railways in the ,united ,states4 ,no attempt has been made1 or will be made1 to segregate the returns of switching and terminal companies from the ,bureau's figures1 of which they are an integral part4 ,the first summary under this table presents the operated mileage reported to this ,bureau in #aiji and #aijh1 classified by states and territories in comparison with the official figures of mileage owned in #aijh1 with relation to area and population of the respective territorial divisions3 ,,summary ,,of ,,railway ,,mileage ,,in ,,the ,,united ,,states ,,by ,,states ,,and ,,territories ,,in #aiji1 #aijh ,,and #aijg ,,and ,,its ,,relation ,,to ,,area ,,and ,,population4 ,bureau's ,figures ,miles of ---------------- #aijg7;a7 ,line ,inhabitants #aiji #aijh ,owned per #ajj per ,operated,operated7,official7,sq4 ,miles of ,mile of ,miles ,miles ,miles ,territory ,line ---------------------------------------- ------------------------- ,alabama #d1iag #d1fdd #d1hdj #i4gg #djf ,arkansas #c1iif #c1geh #d1hfa #i4ba #cja ,california #f1cgf #f1bea #f1ffd #d4ch #bdc ,colorado #e1bbi #e1jif #e1bie #e4aa #aad ,connecticut #icj #icf #a1jaf #bj4if #iii ,delaware #cdb #cdc #ccf #ag4ad #fae ,florida #c1aag #b1ifj #c1igj #g4ci #adh ,georgia #f1dhe #f1bic #f1ghc #aa4fe #cfa ,idaho #a1fea #a1efh #a1gca #b4ji #ajb ,illinois #ac1baf #ab1gif #ab1acg #ba4hj #ddb ,indiana #g1ggd #g1cbf #g1bei #bj4bd #chh ,iowa #i1ibc #i1hfe #i1hfg #ag4hg #beb ,kansas #i1abe #i1age #h1icf #aj4id #ahd ,kentucky #c1bbi #c1bje #c1dda #h4ga #fij ,louisiana #c1hfj #c1hje #d1eeh #aj4dc #cbf ,maine #a1ihd #a1gej #b1jic #g4ai #cfa ,maryland #a1cbe #a1bgh #a1dcb #ad4ij #ijf ,massachusetts #b1jgi #b1jgi #b1aab #bf4de #a1dib ,michigan #h1chd #h1cab #h1ida #ae4fc #cjb ,minnesota #h1beh #h1ajj #h1bdf #aj4df #bcf ,mississippi #c1ede #c1bha #d1jha #i4jj #daf ,missouri #h1bjj #h1ada #h1jci #aa4gi #dbi ,montana #c1ecg #c1djf #c1cjg #b4bh #ia ,nebraska #f1jii #f1jhc #e1icb #g4gf #bjj ,nevada #a1fba #a1edj #a1gjj #a4ee #bh ,new ,hampshire #a1baa #a1baa #a1bdh #ac4hf #cfi ,new ,jersey #b1jdf #b1jdf #b1bej #cj4ei #iag ,new ,york #h1ajf #g1ihi #h1dgb #ag4hf #ieg ,north ,carolina #c1efg #c1ccb #d1che #i4ba #dgc ,north ,dakota #d1jbf #d1jbe #c1ijf #e4ef #aah ,ohio #h1iea #i1jda #i1bfa #bb4ge #ejb ,oklahoma #e1egb #e1ecb #b1hba #g4hd #bjb ,oregon #a1fhg #a1fjj #a1ici #b4jg #bcg ,pennsylvania #aj1ecb #aj1bbd #aa1bei #be4be #fba ,rhode ,island #aib #aij #bjh #bj4aa #b1bfb ,south ,carolina #b1hib #b1ige #c1bga #aa4jb #dea ,south ,dakota #c1fdf #c1efh #c1gjc #d4hb #abb ,tennessee #c1bhc #c1ebh #c1gbe #i4ja #fjj ,texas #ab1hdg #ab1icb #ab1icb #d4ie #bfc ,utah #a1hbj #a1ggb #a1ieg #b4db #aef ,vermont #ida #ibf #a1jga #aa4ih #cea ,virginia #d1jii #c1ijj #d1jef #aj4dc #die ,washington #c1cec #c1bjg #c1gfg #e4fi #aeb ,west ,virginia #b1hdf #b1ggg #c1bfd #ac4fb #cbj ,wisconsin #g1jci #f1ijj #g1dei #ad4ja #cjd ,wyoming #a1dbi #a1dad #a1ebf #a4ef #gj ,arizona #a1gje #a1fhd #a1ibh #a4ga #ga ,new ,mexico #b1ghb #b1eba #b1ife #b4db #gd ,district of ,columbia #ea #db #ca #ec4ec #i1gji ,canada7b7 #a1cdc #a1bgc ---------------------------------------- --------- ,united ,states #bba1acb #baf1dfj #bbg1fga #g4gd #cgj ---------------------------------------- ------------------------- 7a7 ,official mileage by ,states not available for #aijh4 7b7 ,mileage operated in ,canada by ,american roads4 ,,summary ,,of ,,railway ,,mileage ,,in ,,the ,,united ,,states ,,by ,,states ,,and ,,territories ,,in #aiji ,,and #aijh ,,and ,,its ,,relation ,,to ,,area ,,and ,,population--,continued4 #aijh ,miles of ,owned ,line ,inhabitants 7,official7 per #ajj per ,miles ,sq4 ,miles of ,mile of ,territory ,line ---------------------------------------- --------------------------- ,united ,states1 #aiji #bcd1ahb #g4hh #cgi #aijh #bcj1did #g4gf #cgh #aijg #bbg1fga #g4gd #cgj #aijf #bbb1ege #g4ee #cgc #aije #bag1jah #g4cd #cgh #aijd #bab1egg #g4bj #cgi #aijc #bjg1ahg #g4jj #chd #aijb #bja1fgc #f4hb #chh #aija #aif1jge #f4fd #cia #aijj #aib1ida #f4ea #cic #ahii #ahh1bgg #f4cg #cie #ahih #ahe1cga #f4bh #cid #ahig #ahb1ibj #f4ba #cij #ahif #aha1aed #f4ae #chd #ahie #agi1agf #f4jh #chb #ahid #agf1fjc #f4jb #cgi #ahic #agj1ccb #e4id #cgg #ahib #afe1fia #e4gh #chj #ahia #afd1fjc #e4fg #chj #ahij #aei1bgb #e4ea #chd ---------------------------------------- --------------------------- ,the column of operated mileage in #aiji testifies to the comprehensive character of the reports to this ,bureau1 while the last two columns demonstrate how railway extension has kept pace with the growth of the country4 ,territorially the ,united ,states now has #dc more railway mileage than it had in #ahij1 and the last column proves that the mileage is greater proportionately to the population than it was twenty years ago4 ,the contrast in the density of population per mile of line between ,rhode ,island and ,nevada is illustrative of the startling diversity of conditions under which railways are operated in the ,united ,states4 ,,railways ,,built ,,in #aiji4 ,the new mileage reported as constructed in #aiji tallies more nearly than usual with the increase in mileage for which operating reports are received4 ,as reported in the ,railway and ,engineering ,review1 ,february #ai1 #aiaj1 the new mileage by states was as follows3 ,,miles ,,of ,,line ,,constructed ,,during ,,the ,,calendar ,,year #aiji ,,by ,,states ,,and ,,territories4 ,miles ,state ,built #aiji -------------------------------------- ,alaska #dh ,alabama #ce4fb ,arkansas #aee4bj ,arizona #dh4jb ,california #bdh4fj ,colorado #ih4ac ,district of ,columbia #c4ha ,florida #ajb4ha ,georgia #ach4gj ,idaho #ej4di ,illinois #bc4de ,indiana #aj4hb ,kansas #hg4ba ,kentucky #aja4eb ,louisiana #aca4eg ,maine #hg4jj ,maryland #d4fh ,michigan #gg4eh ,minnesota #afd4gj ,mississippi #cf4fj ,missouri #aa4hd ,montana #abe4jh ,nebraska #ac4ae ,nevada #cjd4ej ,new ,hampshire #a4ee ,new ,jersey #cc4ie ,new ,mexico #ce4jj ,new ,york #eb4bj ,north ,carolina #aaa4ib ,ohio #ah4da ,oklahoma #afc4bj ,oregon #aeh4ch ,pennsylvania #ajf4ff ,south ,carolina #ff4ad ,tennessee #id4bf ,texas #fej4fa ,utah #bh4jj ,virginia #he4ge ,washington #bji4hd ,west ,virginia #aca4gh ,wisconsin #fh4cj ,wyoming #ae4eg -------------------------------------- ,total #d1jdj4fj ,second track1 sidings1 etc4 #a1eae4jg -------- ,total all tracks #e1eee4fg -------------------------------------- ,,railway ,,mileage ,,of ,,foreign ,,countries4 ,the ratios of railway mileage to area and population in the table on page #ai may be compared with those of foreign countries for #aijg in the following statement3 ,,summary ,,of ,,the ,,world',s ,,railways ,,and ,,ratio ,,of ,,the ,,mileage ,,to ,,the ,,area ,,and ,,population ,,of ,,each ,,country ,,in #aijg4 ,from ,archiv fur ,eisenbahnwesen1 ,may-,june1 #aiji4 ,miles of ,inhabitants ,miles ,line per per ,countries #aijg #ajj ,square ,mile of ,miles ,line ---------------------------------------- --------------------------- ,europe3 ,germany #cf1jfe #ag4b #a1efc ,austria-,hungary #be1heb #aj4j #a1hah ,great ,britain and ,ireland #bc1jhd #ai4j #a1ghe ,france #bi1gaf #ad4b #a1caf ,russia in ,europe and ,finland 7#b1jeg miles7 #cf1bgi #a4h #b1ida ,italy #aj1cab #i4c #c1abe ,belgium #d1hgd #db4h #a1cgj ,netherlands and ,luxemburg #b1bcj #ae4j #b1efd ,switzerland #b1gfc #ab4b #a1bje ,spain #i1bbg #d4h #a1ibc ,portugal #a1fhi #d4g #c1bbf ,denmark #b1ada #ad4c #a1aej ,norway #a1fjf #a4c #a1cij ,sweden #h1cba #d4h #fag ,servia #cgi #b4a #f1fff ,roumania #a1iid #c4b #b1ida ,greece #gga #c4a #c1abe ,turkey in ,europe1 ,bulgaria and ,rumelia #a1ifg #a4i #e1jjj ,malta1 ,jersey and ,isle of ,man #fh #af4a #e1bgc -------------------------------- ,total for ,europe1 #aijg #aii1cde #e4c #a1hhg #aijf #aif1dcg #e4b #a1iic #aije #aib1ejg #e4a #b1jhd #aijd #ahi1hjf #e4j #b1jhd #aijc #ahf1fhe #e4j #b1jhd #aijb #ahc1ihi #d4i #b1abg #aija #ahj1hag #d4h #b1agd #aijj #agf1cif #d4g #b1bbj #ahii #agb1iec #d4f #b1bbj #ahih #afg1fad #d4d -- #ahig #afc1eej #d4c -- #ahif #afj1jcj #d4b -- -------------------------------- ,increase in eleven years #ci1cae -- -- ,other ,foreign ,countries in #aijg3 ,canada #bb1ddg #j4f #cgc ,mexico #ac1fab #a4h #cba ,brazil #aj1gac 4#cb #a1djh ,argentine ,republic #ac1fgc #a4c #cef ,peru #a1ccb 4#cb #c1ddi ,uruguay #a1baj #a4h #gfi ,chili #b1ici #a4j #a4abc ,central ,russia in ,asia #b1hjh #a4c #b1ggg ,siberia and ,manchuria #e1ffd 4#aa #a1jbj ,japan #e1jab #c4a #i1jij ,china #d1afb #j4a #he1hbj ,british ,india #bi1hib #a4d #aj1jjj ,new ,zealand #b1egj #b4d #cbd ,victoria #c1dbh #c4i #cea ,new ,south ,wales #c1dga #a4a #cid ,south ,australia #a1ibd #j4af #ahh ,queensland #c1djd #j4e #adb ,egypt #c1dde #a4j #b1hfj ,cape ,colony #c1hjd #a4c #dfc ,natal #igf #c4e #gic ,transvaal #a1cfa #a4a #fcf ,recapitulation3 ,total for ,europe #aii1cde #e4c #a1hhi ,america #cjb1ibg #b4c #ebd ,asia #ef1bhc #j4ch #ae1edj ,africa #ah1eaf #j4af #h1jad ,australia #ag1gff #j4f #bgi the whole world #eid1hcg -- -- ---------------------------------------- --------------------------- ,of the above total railway mileage for the whole world1 no less than #ccb1cfj miles1 or nearly #ef1 is operated in ,english speaking countries1 the mileage of the ,united ,states alone being over #ce of the whole4 ,to the most casual student the disparity between the density of population to railway mileage in the ,united ,states and ,europe of one to five1 is as apparent as it is significant of our necessity for so much greater provision of transportation facilities per capita4 ,if our per capita mileage were relatively the same as that of ,europe1 the ,united ,states would be set back to the transportation facilities of #ahfi1 when the completion of the ,union ,pacific raised its total mileage to #dg1bed miles4 ,but even then it had a ratio of one mile of railway to #haj inhabitants1 which was higher than ,europe's ratio today4 ,clearly there is nothing in the statistics of the railway mileage of the world to account for the epidemic of railway phobia that periodically convulses the people and legislatures of the ,united ,states of ,america4 ,,mileage ,,of ,,all ,,tracks ,,in #aiji4 ,of almost equal importance to the mileage of ,american railways are the auxiliary tracks upon which the extent and efficiency of their public service so largely depends4 ,as the next statement shows1 these continue to increase more rapidly than the miles of line4 ,,summary ,,of ,,mileage ,,of ,,single ,,track1 ,,second ,,track1 ,,third ,,track1 ,,fourth ,,track ,,and ,,yard ,,track ,,and ,,sidings1 ,,in ,,the ,,united ,,states1 #ahig ,,to #aiji4 ,total ,single ,second ,third ,fourth ,yard ,mileage ,year ,track ,track ,track ,track ,track ,operated and 7all ,sidings tracks7 ---------------------------------------- ------------------------ #aiji 7#id4d7 ,bureau #bba1acb #bj1fcg #b1ahf #a1dia #hj1ffi #cbf1aae #aijh ,official 7a7#bcj1did #bj1bji #b1jha #a1dji #gi1deb #ccc1fdf #aijg #bbg1dee #ai1dba #a1ifj #a1cij #gg1gdi #cbg1ige #aijf #bbb1cdj #ag1cif #a1gff #a1bgi #gc1gfj #cag1jhc #aije #baf1igc #ag1jef #a1fji #a1bae #fi1ida #cjf1gif #aijd #bab1bdc #ae1hbd #a1dfg #a1jdf #ff1dib #big1jgc #aijc #bje1cac #ad1fha #a1cjc #ifc #fa1efj #bhc1hba #aijb #bjj1aed #ac1gbj #a1bjd #hie #eh1bbj #bgd1aie #aija #aie1efa #ab1hde #a1aec #hgf #ed1iad #bfe1ceb #aijj #aib1eef #ab1aea #a1jid #hbi #eb1aec #beh1ghd #ahii #ahg1edc #aa1edf #a1jdg #gij #di1bbc #bej1adb #ahih #ahd1fdh #aa1bic #a1jji #gic #dg1ehi #bde1ccc #ahig #ahc1bhd #aa1jah #iie #ghj #de1icd #bdb1jac ---------------------------------------- ------------------------ 7a7 ,to the figures for #aijh should be added the #a1fbf miles of main track and #b1jhe of yard track and sidings of switching and terminal companies1 excluded by the ,official ,statistician1 raising the total of all tracks to #ccg1ceg4 ,by adding the auxiliary trackage reported to this ,bureau for #aiji to the #bcd1ahb miles of operated line reported to the ,interstate ,commerce ,commission for ,june #cj of that year1 it appears that the total of all tracks on that date was upwards of #cdj1jjj miles4 ,it will be observed that in every instance the mileage of second1 third and fourth track and yard track and sidings reported to this ,bureau in #aiji1 the year of comparative stagnation in railway construction1 exceeded the complete mileage of these tracks in #aijh reported to the ,commission4 ,the above table 7with the ,commission's figures for single track7 shows that where there has been an increase of only #ej1gih miles of single track1 or #bg4g1 in twelve years1 all trackage has increased over #ih1jjj1 or #db1 during the same period4 ,it also shows that during the same twelve years second track has increased #hg2 third track #abj2 fourth track #ia1 and yard track and sidings #gf4 ,,mileage ,,and ,,track ,,of ,,british ,,railways4 ,as ,english railways are so often brought into comparison with ,american railways1 it is well to know the total of all tracks in the ,united ,kingdom as well as the mileage4 ,both are given in the following statement1 compiled from returns to the ,british ,board of ,trade for the years ending ,december #ca1 #aijd to #aijh3 ---------------------------------------- -------------------------- ,description of ,track #aijh #aijg #aijf #aije #aijd ---------------------------------------- -------------------------- ,single track 7miles7 #bc1bji #bc1aab #bc1jfc #bb1hgj #bb1fja ,second track #ac1jdh #ab1ifc #ab1icd #ab1hai #ab1fib ,third track #a1dce #a1che #a1cfc #a1cbd #a1bga ,fourth track #a1ada #a1ajc #a1jia #a1jfg #a1jcj ,fifth track #bjh #aie #ahf #agj #aec ,sixth track #abb #aag #aaa #ig #he ,seventh track #ei #ea #dg #dj #ce ,eighth to twentieth tracks #id #hg #ge #dd #cd ,sidings #ad1cec #ad1ade #ad1jcb #ac1hia #ac1gcc --------------------------------------- ,total trackage #ec1ffi #ec1ahi #eb1ijd #eb1cbb #ea1fcd ---------------------------------------- -------------------------- ,here it will be perceived the mileage of ,british roads increased only #fjh miles and the trackage only #b1jce miles in four years4 ,during the same period1 as shown in the preceding table1 the mileage of ,american railways increased #ah1bea miles and their total trackage #cf1edc4 ,it is this continuous demand for increased mileage and trackage in the ,united ,states1 to say nothing of equipment1 that differentiates the problem confronting ,american railway management from ,british4 ,in the ,united ,states we need more railways and still more railways1 and the problem is to get the capital on reasonable terms to provide the facilities4 ,in railroad mileage alone we have over ten times that of the ,united ,kingdom and we have more than six times as many miles of track4 ,we have enough trackage in our yards and sidings to double track all the ,british railways1 with enough over to put four tracks where they have only two tracks now4 ,,ii ,,equipment ,,an ,,object ,,lesson ,,in ,,equipment4 ,no car shortage occurred to interrupt the orderly movement of railway traffic during the fiscal year #aijh-ji4 ,on the contrary1 there was an unprofitable surplus of cars throughout the year1 ranging from #aaj1iab in ,september1 #aijh1 to #ccc1jai in ,january1 #aiji4 ,from this high figure the surplus was slowly reduced by the demands of traffic until subsequent to the close of the fiscal year1 in ,september last1 it reached a practical level of shortages and surpluses4 ,during the year there was an average of #aej1jjj freight cars in the shops1 where in times of ordinary activity the mean would be in the neighborhood of #ajj1jjj4 ,these conditions1 which prevailed since ,november1 #aijg1 account for the greatly reduced purchases of rolling stock during the years #aijh and #aiji shown in the following record of locomotives and cars built in the ,united ,states during the past eleven years3 ,,eleven ,,years' ,,output ,,of ,,cars ,,and ,,locomotives4 ,from the ,railroad ,age-,gazette4 ,number ,year ,locomotives ,passenger ,freight ,cars ,cars ---------------------------------------- ------------------ #aiji7;a7 #b1hhg #b1hdi #if1dai #aijh7;a7 #b1cdb #a1gaf #gf1eee #aijg7;a7 #g1cfb #e1deg #bhd1ahh #aijf7;a7 #f1ieb #c1afg #bdc1fgj #aije7;a7 #e1dia #b1eea #afh1jjf #aijd #c1dda #b1add #fj1hjf #aijc #e1aeb #b1jjg #aec1aie #aijb #d1jgj #a1idh #afb1eii #aija #c1chd #b1jee #acf1iej #aijj #c1aec #a1fcf #aae1fca #ahii #b1dge #a1cje #aai1hhf ---------------------------------- ,total #df1gji #bf1hce #a1fag1ije ---------------------------------------- ------------------ 7a7 ,includes ,canadian output4 ,between #ahih and #aijh the ,interstate ,commerce ,commission reported an increase of #ba1dfd locomotives1 #aa1fig passenger cars1 and #hef1iii freight and company cars4 ,allowing for the ,canadian output in the above table1 this would show #bb1gdb more locomotives1 #ac1hba more passenger cars1 and #fgd1jbc more freight cars built in ten years than are accounted for in the official returns4 ,roughly speaking1 these last figures represent the number of locomotives and cars worn out beyond repair or destroyed that have to be replaced annually4 ,it means that provision has to be made every year for the purchase of new equipment amounting to approximately #e of locomotives and passenger cars and #d of freight cars in order to maintain the equipment numerically1 irrespective of the sums spent on maintaining the remainder in serviceable condition4 ,on the equipment reported by the ,commission for #aijh this would necessitate the following outlay for replacement alone3 ,number ,needed for ,average ,total ,replacement ,cost ,cost ---------------------------------------- ---------------------------- ,locomotives #eg1fih #e #b1hhd #ae1jjj #dc1bfj1jjj ,passenger cars #de1bib #e #b1bad #f1jjj #ac1bhd1jjj ,freight cars #b1ajj1ghd #d #hd1jca #a1jjj #hd1jjj1jjj ,company cars #ih1bha #c1ica #ejj #a1ife1ejj ------------- ,total cost for replacing equipment #adb1eji1ejj ---------------------------------------- ---------------------------- ,it is probable that the computed percentage for the replacement of locomotives and passenger cars is too high and that for freight cars too low4 ,this is the opinion of operating officials4 ,if so1 it would amount to a set off and the aggregate would still be approximately #adb1jjj1jjj to be expended annually for new equipment to take the place of old1 worn out and discarded rolling stock4 ,conditions forbade the expenditure of any such sum in #aijh and #aiji4 ,,number ,,and ,,capacity ,,of ,,locomotives ,,for ,,eight ,,years1 #aiji ,,to #aijb4 ,next follows a summary giving the number and capacity of locomotives for the seven years since the ,commission has included capacity in the published returns3 ,weight ,tractive without ,average ,year ,number ,power ,tender ,weight 7,pounds7 7,tons7 7,tons7 ---------------------------------------- ---------------------------- #aiji 7#id4d represented7 #ee1die #a1dba1aad1gih #d1jcc1cji #gb4g #aijh ,final returns #eg1fih #a1eai1efh1eea #d1jga1eed #ga4e #aijg #ee1chh #a1dbi1fbf1feh #c1hbh1jde #fi4a #aijf #ea1fgb #a1bgg1hfe1fgc #c1dei1jeb #ff4i #aije #dh1ceg #a1ada1ccj1jhb #c1jgi1fgc #fc4f #aijd #df1gdc #a1jfc1fea1bfa #b1hhi1dib #fb4a #aijc #dc1hga #iec1gii1edj #b1fjf1ehg #ei4d #aijb #da1bbe #hci1jgc1ggi #b1cbc1hgg #ef4c ---------------------------------------- -- ,increase seven years to #aiji #cd4f #fi4d #gc4f #bi4a ---------------------------------------- ---------------------------- ,complete returns will raise the totals for #aiji approximately to #eg1gjd locomotives of #a1dfe1jgj1jjj pounds tractive power and #d1aeh1jjj tons weight1 exclusive of tenders4 ,these figures bear out the conclusion expressed above that the purchase of new locomotives in #aiji was barely sufficient to replace those abandoned or destroyed during the year4 ,the loss1 however1 was in a measure made good by the greater weight of the new engines4 ,as the average weight of locomotives in #ahii was approximately #ec tons1 the figures just given indicate an increase of nearly #aad in the weight of all locomotives during the decade4 ,in connection with the estimate of #ae1jjj put on locomotives in this report1 it is of interest to reproduce the return to the legislature of ,new ,south ,wales of the cost of engines built in the railway shops at ,sydney recently4 ,the figures refer to #f-wheel-coupled heavy mail and express engines weighing1 with tender1 #afc1abh pounds1 as published in the ,railway ,age-,gazette1 ,december #c1 #aiji3 ,,details ,,of ,,locomotive ,,costs4 #aj ,engines ,cost ,per ,per ,engine ,ton7a7 ---------------------------------------- ----------------------------- ,direct charges3 ,materials #aag1dfb4gg #aa1gdf4bh #afa4bi ,wages #gf1dhd4bc #g1fdh4db #ajd4ii --------------------------------- ,total #aic1idg4jj #ai1cid4gj #bff4bh ,indirect charges3 ,percentage of shop charges 7exclusive of superintendence7 on wage basis in each shop1 #cg4hd #bh1idc4gi #b1hid4ch #ci4gd ,superintendence1 on wage basis1 #c #b1bid4ea #bbi4de #c4aj ,interest on capital cost of new shop and machinery1 including land #d1hej4eb #dhe4je #f4fc ,proportion of interest on capital cost of old shops on locomotive work produced for new engines #e1ddi4ec #edd4ie #g4de ,depreciation of machinery and plant1 #b on capital cost #e1adi4ii #eae4jj #g4jc --------------------------------- ,total indirect charges #df1fhh4cd #d1ffh4hc #fc4ie ,total charges #bdj1fce4cd #bd1jfc4ec #ccj4bc ---------------------------------------- --------------------------- 7a7 ,ton of #b1bdj lbs4 ,applied to a ,mallet articulated compound locomotive1 such as that built for the ,erie weighing #daj1jjj pounds on the drivers1 the rate per ton paid by the government of ,new ,south ,wales would make it cost over #fj1jjj4 ,it did not cost any such sum1 but the ,australian experience is a straw which shows how the cost of locomotives is soaring4 ,american railways find it necessary economy to build engines whose average weight is well above that built in the government shops at ,sydney4 ,,passenger ,,and ,,freight ,,cars4 ,during the same period1 #aijb to #aiji1 covered in the table relating to locomotives1 for which alone full data is available1 the increase in the number of passenger cars and freight cars1 and in the capacity of the latter1 is shown in the following statement3 ,freight ,service ----------------------- ,company's ,year ,passenger ,number ,capacity ,average ,service ,service 7tons7 tons ,number ---------------------------------------- --------------------------- #aiji 7#ig represented7 #dd1ffe #b1jej1jdi #ga1jbh1bff #cd4f #if1gci #aijh 7,final returns7 #de1bib #b1ajj1ghd #gc1ebf1ddj #ce #ih1bha #aijg #dc1igc #a1iia1eeg #fg1baf1add #cd #ia1jfd #aijf #db1bhb #a1hcg1iad #ei1aif1bcj #cb #gh1gcf #aije #dj1gac #a1gca1dji #ec1cgb1eeb #ca #gj1gdi #aijd #ci1geb #a1fib1aid #ej1hgd1gbc #cj #ff1fae #aijc #ch1adj #a1fec1ghb #dh1fbb1abe #bi #fa1dfg #aijb #cf1ihg #a1edf1aja #dc1daf1igg #bh #eg1jig ---------------------------------------- -------- ,seven years' increase7a7 #bj4h #ce4i #fd4j #bc4e #fi4f ---------------------------------------- ---------------------------- 7a7 ,final returns for #aiji will raise these percentages materially4 ,it is in the increased capacity of locomotives and cars rather than in their numbers that the seeker after truth will find the explanation of how ,american railways have been able to handle freight traffic that has increased in volume over #hj in ten years where numerically the increase of equipment has been less than #fj4 ,during that period the average capacity of the freight car has increased from #bg to nearly #ce tons1 accounting for an aggregate increase of #aji4f4 ,between #ahii and #aiji the population of the ,united ,states increased from #gd1cah1jjj to #hh1hjf1jjj1 or #ai4e4 7,on ,april #a1 #aiaj1 the treasury estimate was an even #ij1jjj1jjj47 ,in the same ten years the number of passenger cars increased over #cf1 accompanied by a steady advance in their size1 strength and conveniences4 ,between #aijb and #aijg the ,official ,statistics furnish the following information showing the gradual transformation taking place in the number and capacity of freight cars3 ,,number ,,and ,,capacity ,,of ,,different ,,sizes ,,of ,,freight ,,cars1 #aijb-aijg4 ,capacity ,increase or ,class ,pounds #aijb #aijg ,decrease ,per ,cent ---------------------------------------- ------------- ,i #aj1jjj #e1abb #d1bgg ,dec4 #af4e ,,ii #bj1jjj #ae1fae #g1bdd #ec4e ,,iii #cj1jjj #df1cec #aj1acb #gh4a ,,iv #dj1jjj #cbg1cdb #bjd1ehc #cg4e ,v #ej1jjj #bdf1fhd #agh1hbg #bg4e ,,vi #fj1jjj #fcd1fbf #hjb1ahg ,inc4 #bf4d ,,vii #gj1jjj #bb1dic #cd1feb #ec4f ,,viii #hj1jjj #aeh1agi #deb1jgj #ahe4i ,,ix #ij1jjj #caj #e1jed #a1ebg4a ,x #ajj1jjj #dh1hcd #bhe1bda #dhd4c ,,xi #aaj1jjj #chi #a1dgf #bgi4d ,,xii #abj1jjj #dc #fj #ci4e ,all over #abj1jjj #b #bad ---------------------------------------- ------------- ,the line of cleavage between former and modern railway methods of handling freight is clearly shown in the above table to lie between cars of #be and #cj ton capacity4 ,the former and all of less capacity are on the decline1 whereas the latter and all of greater capacity are on the increase4 ,numerically the #cj-ton cars still exceed those of #dj and #ej tons1 but already they are exceeded by the combined capacity of the latter4 ,,the ,,surplus ,,of ,,freight ,,cars4 ,for two years 7#bh months as this is written7 the reports of the ,committee on ,car ,efficiency of the ,american ,railway ,association show that the supply of freight cars has been in excess of the demand4 ,in other words1 the railways during that period were paying interest on a considerable percentage of unremunerative equipment1 besides the cost of its maintenance4 ,the rise and fall of this surplus of freight cars is set forth below3 ,,freight ,,car ,,shortages ,,and ,,surplus ,,by ,,months ,,from ,,january1 #aijg1 ,,to ,,april1 #aiaj4 #aijg #aijh #aiji #aiaj ,month ,shortage ,surplus ,surplus ,surplus ---------------------------------------- ----------------------- ,january #aaj1jjj #cdb1ehj #ccc1jai #eb1cji ,february #aej1jjj #cbb1eac #cja1ega #de1eac ,march ,no data #big1jdb #bia1dah #de1fgb ,april #ajj1jjj #dac1fje #bhb1cbh #hd1hhg ,may #fj1jjj #djd1ecd #bgc1hij -- ,june #dj1jjj #cdi1iid #bfb1idd -- ,july7a7 #bj1jjj #cjh1fhj #bdc1ced -- ,august7a7 #ae1jjj #bec1jjc #aei1dbd -- ,september #fj1jjj #acc1gib #gh1gih -- ,october #ij1geg #aaj1iab #ce1igg -- ,november #eg1jjc #acb1hbi #ci1ebh -- ,december 7surplus7 #bji1caj #bbb1jgg #eh1ced -- ---------------------------------------- ----------------------- 7a7 ,in ,july and ,august1 #aijg1 there was a net surplus4 ,at the date of one report in ,october1 #aiji1 a surplus of cars in one territory was practically offset by a shortage in another territory4 ,,freight ,,car ,,performance4 ,according to ,statistical ,bulletin ,no4 #eh of the ,committee on ,relations between ,railroads of the ,american ,railway ,association1 the average performance of the freight cars of ,american and ,canadian railways during the year ending ,june #cj1 #aiji1 including and excluding surplus cars1 was as follows3 ,average ,miles ,average ,ton ,miles per ,day per ,car per ,day ---------------------------------------- --- ,month ,including ,excluding ,including ,excluding ,surplus ,surplus ,surplus ,surplus ,cars ,cars ,cars ,cars ---------------------------------------- --------------------- ,july1 #aijh #bj4j #bd4h #bge #cdb ,august1 #bj4h #be4a #bib #ced ,september1 #bb4j #be4b #cbj #cfg ,october1 #bc4h #be4i #cdf #cgf ,november1 #bc4e #be4h #cda #cge ,december1 #bb4c #be4b #ccb #cgf ,january1 #aiji #bj4i #be4c #bic #ced ,february1 #ba4g #be4i #cjf #cfe ,march1 #bb4g #bg4b #ccj #cic ,april1 #bb4d #bf4h #caj #cga ,may1 #bb4e #bf4h #cjd #cfb ,june1 #bb4d #bf4e #cad #cga ---------------------------------------- --------------------- ,these figures of the average miles per day of freight cars are the delight of demagogues and other detractors of ,american railways who ignore1 or have never been able to comprehend1 that the average performance of a car per day depends from six to nine times more on the time allowed for shippers to load and unload cars than on its speed in transit4 ,this speed runs all the way from ten to forty miles and over an hour4 ,but if freight trains averaged #dj miles an hour it would make little impression on the per day average of cars so long as #dh hours has to be allowed as a minimum at either end for loading and unloading and almost as much more for placing notices and disposing of cars1 to say nothing of time consumed in making up trains4 ,the salient and significant feature of this table is the proof it affords that each car of those in commission averages the movement of one ton #cfg miles per day4 ,this means an average load of #ad tons per car4 ,it would take at least three ,english or ,european freight cars to average such a load4 ,,safety ,,appliances4 ,of all the locomotives and cars in railway service in #aijh1 aggregating #b1cjb1jee1 less than #d were not fitted with train brakes1 and less than three quarters of #a were unprovided with automatic couplers4 ,,block ,,signals4 ,while the gain in mileage protected by some form of block signals in #aiji is only slightly more than half the increase in #aijg1 it shows a healthy revival of this most important constructive work4 ,at the close of the last calendar year1 according to the ,railroad ,age-,gazette1 the mileage on which some system of block signals had been installed was as follows3 ,system ,single ,track ,two or ,total ,total ,more ,tracks #aiji #aijh ---------------------------------------- ----------------------- ,automatic block signals 7miles7 #f1dcf #g1ihc #ad1dai #aa1icb ,non-automatic block signals 7miles7 #dj1cbc #h1eic #dh1iaf #dh1ggg ---------------------------------------- ---- ,total miles #df1gei #af1egf #fc1cce #fj1gji ---------------------------------------- ------------------------ ,miles of line operated by the companies1 #aiji #aeh1ich ,the second annual report of the government ,block ,signal and ,train ,control ,board shows that little advance has been made in the search after the perfect system of automatic mechanical operation4 ,since the organization of the board in #aijg no less than #hce plans and descriptions of inventions designed to enhance the safety of railway operation have been submitted for its consideration4 ,of these #ahd were examined and reported upon in #aijh and #ab were found worthy of further investigation4 ,during the past year #cbg others have been reviewed with a net result that again #ab have been found to possess enough merit to warrant the ,board in conducting further tests4 ,it finds that the vast majority of the proposed devices are unsound either in principle or design4 ,with regard to some form of automatic stop1 the ,board says that it is not yet prepared to make a definite and positive recommendation1 but it thinks it reasonable to expect that several forms of automatic train controlling devices will be found available for use4 ,in this connection it very sensibly concludes3 ,it is not to be expected that trials or tests conducted by the government will1 independently of extended use by railways1 result in the production of devices or systems fully developed to meet all the exacting conditions of railway operation4 ,,iii ,,employes ,,and ,,their ,,compensation ,,number #a1ebd1djj ,,compensation #a1jjh1bgj1jjj ,the #cfh railway companies reporting to this ,bureau had #a1dfc1dbi persons in their employ ,june #cj1 #aiji1 and their pay roll for the twelve months to that date amounted to #igc1agb1dig4 ,experience has shown that these roads employ over #if of the labor and pay #ig of the compensation earned by railway employes4 ,from which it appears that the employes of all the railways in #aiji numbered #a1ebd1djj1 whose compensation for that year was approximately #a1jjc1bgj1jjj4 ,this would show an increase of #ff1gef men employed and a decrease of #dh1cfb1bbe in compensation--a discrepancy accounted for by the fact that the pay roll in ,june1 #aijh1 was numerically at low tide while the aggregate compensation was swelled by the large pay rolls of the first six months of the fiscal year4 ,the conditions were nearly reversed in #aiji1 for the pay roll was at the ebb during the first half of the year whereas the number on it did not begin to show the demands of increasing traffic until the very close of the fiscal year4 ,these statistics would be more enlightening if the number of employes was determined by the average from the monthly pay rolls throughout the year and not as at present from the pay rolls on ,june #cj4 ,the discrepancies noted are liable to increase if the ,commission succeeds in getting the permission of ,congress to substitute ,december #cast for ,june #cjth as the end of its statistical year4 ,under the present practice1 the summary which follows reflects the improvement of business in the increase of employes1 while their aggregate compensation continues to show the effect of the depression that prevailed throughout the greater part of the year4 ,when1 however1 that compensation comes to be divided by the ,aggregate number of days worked by all employes during the year1 the daily average which results is found to be within a fraction of a cent the same as for the preceding year4 ,the aggregate number of days worked by the employes of the roads reporting to this ,bureau was #dcd1cbh1jbf days in #aiji against #dec1jjb1bbh for the preceding year4 ,the first summary under this title gives the number1 compensation and average pay of the several classes of employes of the roads reporting for the year #aiji1 together with the aggregates as reported to the ,interstate ,commerce ,commission for the preceding years3 ,,summary ,,of ,,railway ,,employes1 ,,compensation ,,and ,,rates ,,of ,,pay ,,by ,,classes ,,in #aiji ,,and ,,aggregates ,,from #ahhi ,,to #aiji4 ,class #aiji ,per #ajj ,average,per ,cent 7#bba1acb ,miles ,number ,miles ,compensation ,pay of ,gross ,represented7 of ,line per ,day,receipts ---------------------------------------- ------------------------- ,general officers #c1cab #a4f #ae1dhd1jjh #ad4hb #j4f ,other officers #g1dae #c4c #af1hdg1ged #f4ec #j4g ,general office clerks #fg1bbb #cj #ea1ide1bca #b4ca #b4b ,station agents #cd1gfe #ae #bd1idd1ajj #b4aj #a4j ,other station men #ace1jef #fa #gh1bhi1jci #a4ha #c4c ,enginemen #ee1gdg #be #gg1gfb1aeh #d4df #c4c ,firemen #eh1ibg #bg #dg1eia1iec #b4fg #b4j ,conductors #db1cbe #ai #ej1bfi1eha #c4gf #b4a ,other trainmen #aab1cih #ea #hh1gea1gec #b4fj #c4g ,machinists #dg1fbi #bb #da1cha1jed #b4ih #a4g ,carpenters #ei1dgg #bg #db1ied1iic #b4dc #a4h ,other shopmen #aib1ghd #hg #aah1hia1fgi #b4ac #e4j ,section foremen #ci1iec #ah #bf1cgg1chj #a4if #a4b ,other trackmen #cjh1cfi #adj #ajg1gcd1dai #a4ch #d4e ,switch tenders1 crossing tenders and watchmen #dd1aee #bj #bf1jai1aje #a4gh #a4a ,telegraph operators and dispatchers #ch1fef #ag #bi1fee1iaf #b4cj #a4c ,employes1 account floating equipment #h1fcb #d #f1ecg1aif #b4cb #j4c ,all other employes and laborers #bjf1fjg #ic #aba1gce1agh #a4ih #e4b ---------------------------------------- - ,total 7#id4d mileage represented7 #a1dfc1dbi #ffa #igc1agb1dig #b4bd #da4jj #aijh ,official figures #a1deh1bdd #fcb #a1jea1fcb1bbe7;b7#b4be #dc4ch #aijg #a1fgb1jgd #gce #a1jgb1chf1dbg #b4bj #da4db #aijf #a1eba1cee #fhd 7a7#icj1hja1fec #b4ji #dj4jb #aije #a1chb1aif #fcg #hci1idd1fhj #b4jg #dj4cd #aijd #a1bif1aba #faa #hag1eih1haj,no data #da4cf #aijc #a1cab1ecg #fci #gge1cba1dae,no data #dj4gh #aijb #a1ahi1cae #eid #fgf1jbh1eib,no data #ci4bh #aija #a1jga1afi #edh #faj1gac1gja,no data #ch4ci #aijj #a1jag1fec #ebi #egg1bfd1hda,no data #ch4hb #ahii #ibh1ibd #die #ebb1ifg1hif,no data #ci4ha #ahih #hgd1eeh #dgd #die1jee1fah,no data #ci4gj #ahig #hbc1dgf #ddi #dfe1fja1eha,no data #da4ej #ahif #hbf1fbj #ded #dfh1hbd1eca,no data #dj4gg #ahie #ghe1jcd #dda #dde1ejh1bfa,no data #da4dd #ahid #ggi1fjh #ddd ,no data ,no data -- #ahic #hgc1fjb #eae ,no data ,no data -- #ahib #hba1dae #ejf ,no data ,no data -- #ahia #ghd1bhe #dhf ,no data ,no data -- #ahij #gdi1cja #dgi ,no data ,no data -- #ahhi #gjd1gdc #dei ,no data ,no data -- ---------------------------------------- ----------------------- 7a7 ,includes #cj1jjj1jjj estimate pay-roll of ,southern ,pacific1 whose records were destroyed in the ,san ,francisco disaster4 7b7 ,bureau computations4 ,this table brings out clearly the effect of the depression of #aijh on railway labor4 ,while there was a decrease in numbers employed in #aijh of #bac1hcj or nearly #ac1 coincident with a proportionate decrease in gross revenues1 the reduction in compensation amounted to less than #b4 ,this anomaly was due to the fact that the increased scale of pay adopted in the winter of #aijf-jg was only effective during six months of the fiscal year #aijg1 whereas it was in full operation throughout #aijh1 as it still is1 with demands1 negotiations and arbitrations regarding wages all tending upward4 ,,unremunerative ,,expenditures4 ,last year attention was called to the unremunerative burdens imposed on the railways by the multiplying demands of legislatures and commissions for reports on every conceivable feature of their multifarious affairs4 ,this year with the compensation of every other class showing the effects of the enforced retrenchments of the period1 that of the several classes especially affected by these requirements and the enactments relating to the hours and conditions of employment continue to be the only ones marked by advances over the record figures of #aijg1 as appears from the following comparison3 ,,compensation ,,of ,,classes ,,especially ,,affected ,,by ,,multiplying ,,demands ,,of ,,commissions ,,and ,,legislatures ,,in #aijg ,,and #aiji4 #aijg #aiji ,class #bbg1dee ,miles #bba1acb ,miles ,represented ,represented ---------------------------------------- ------------------------- ,other officers #ae1jab1bbf #af1hdg1ged ,general office clerks #dh1cdj1abc #ea1ide1bca ,station agents #bd1hca1jff #bd1idd1ajj ,telegraph operators and dispatchers #bi1jeh1bea #bi1fee1iaf ,employes1 account floating equipment #f1jce1dae #f1ecg1aif ---------------------------- ,total #abc1bgg1jha #abi1icj1aig ---------------------------------------- ------------------------- ,add #d for unreported mileage1 #aiji #e1aig1bjg ,total #ace1abg1djd ,increase over #aijg #aa1hej1cbc ---------------------------------------- -------------------------- ,moreover1 had the aggregate compensation of these five classes followed the general trend of all other railway compensation1 the expenditure on this account would have been at least #bb1jjj1jjj less than it was4 ,this sum represents only a part of what the railways have to pay for a system of accounting and reporting out of all proportion to its published results4 ,the public has no idea of the onerous and unprofitable burdens imposed on the railways by the impractical theory of administering railways through the medium of arbitrary and theoretical accounts4 ,,average ,,daily ,,compensation #aiji-ahib4 ,where the data in regard to total compensation of railway employes has been kept since #ahie1 that of their daily average pay runs back to #ahib1 thus covering the period of the last preceding severe panic4 ,under instructions of the ,official ,statistician1 these averages are computed by dividing the compensation paid by the actual days worked throughout the year in the several classes as nearly as it has been practicable to do so4 ,although the formula is more or less arbitrary1 the system has been continuous and so the results are reliable for comparative purposes4 ,in the statement following1 figures for #ahie1 #ahif and #aije have been omitted to economize space1 and because they present no significant variations from the years preceding them4 ,,comparative ,,summary ,,of ,,average ,,daily ,,compensation ,,of ,,railway ,,employes ,,for ,,the ,,years ,,ending ,,june #cj1 #aijh ,,to #ahib4 ,class #aiji7;a7 #aijh7;a7 #aijg #aijf #aijd #aijc #aijb ---------------------------------------- ---------------------- ,general officers #ad4hb #ae4ah #aa4icaa4haaa4faaa4bgaa4ag ,other officers #f4ec #f4db #e4ii #e4hb #f4jg #e4gf #e4fj ,general office clerks #b4ca #b4ce #b4cj #b4bd #b4bb #b4ba #b4ah ,station agents #b4aj #b4aj #b4je #a4id #a4ic #a4hg #a4hj ,other station men #a4ha #a4hb #a4gh #a4fi #a4fi #a4fd #a4fa ,enginemen #d4df #d4df #d4cj #d4ab #d4aj #d4ja #c4hd ,firemen #b4fg #b4fe #b4ed #b4db #b4ce #b4bh #b4bj ,conductors #c4gf #c4hc #c4fi #c4ea #c4ej #c4ch #c4ba ,other trainmen #b4fj #b4fd #b4ed #b4ce #b4bg #b4ag #b4jd ,machinists #b4ih #b4ie #b4hg #b4fi #b4fa #b4ej #b4cf ,carpenters #b4dc #b4dj #b4dj #b4bh #b4bf #b4ai #b4jh ,other shopmen #b4ac #b4ac #b4jf #a4ib #a4ia #a4hf #a4gh ,section foremen #a4if #a4if #a4ij #a4hj #a4gh #a4gh #a4gb ,other trackmen #a4ch #a4de #a4df #a4cf #a4cc #a4ca #a4be ,switchmen1 flagmen and watchmen #a4gh #a4hb #a4hg #a4hj #a4gg #a4gf #a4gg ,telegraph operators and dispatchers #b4cj #b4cj #b4bf #b4ac #b4ae #b4jh #b4ja ,employes account floating equipment #b4cb #b4cg #b4bg #b4aj #b4ag #b4aa #b4jj ,all other employes and laborers #a4ih #a4ih #a4ib #a4hc #a4hb #a4gg #a4ga ---------------------------------------- ---------------------- table continued ,class #aija #aijj #ahii #ahih #ahig #ahid #ahic #ahib ---------------------------------------- ---------------------- ,general officers #aj4igaj4deaj4jc #i4gc #i4ed #i4ga #g4hd #g4fb ,other officers #e4ef #e4bb #e4ah #e4ba #e4ab #e4ge -- -- ,general office clerks #b4ai #b4ai #b4bj #b4be #b4ah #b4cd #b4bc #b4bj ,station agents #a4gg #a4ge #a4gd #a4gc #a4gc #a4ge #a4hc #a4ha ,other station men #a4ei #a4fj #a4fj #a4fa #a4fb #a4fc #a4fe #a4fh ,enginemen #c4gh #c4ge #c4gb #c4gb #c4fe #c4fa #c4ff #c4fh ,firemen #b4af #b4ad #b4aj #b4ji #b4je #b4jc #b4jd #b4jg ,conductors #c4ag #c4ag #c4ac #c4ac #c4jg #c4jd #c4jh #c4jg ,other trainmen #b4jj #a4if #a4id #a4ie #a4ij #a4hi #a4ia #a4hi ,machinists #b4cb #b4cj #b4bi #b4bh #b4bc #b4ba #b4cc #b4bi ,carpenters #b4jf #b4jd #b4jc #b4jb #b4ja #b4jb #b4aa #b4jh ,other shopmen #a4ge #a4gc #a4gb #a4gj #a4ga #a4fi #a4ge #a4ga ,section foremen #a4ga #a4fh #a4fh #a4fi #a4gj #a4ga #a4ge #a4gf ,other trackmen #a4bc #a4bb #a4ah #a4af #a4af #a4ah #a4bb #a4bb ,switchmen1 flagmen and watchmen #a4gd #a4hj #a4gg #a4gd #a4gb #a4ge #a4hj #a4gh ,telegraph operators and dispatchers #a4ih #a4if #a4ic #a4ib #a4ij #a4ic #a4ig #a4ic ,employes account floating equipment #a4ig #a4ib #a4hi #a4hi #a4hf #a4ig #a4if #b4jg ,all other employes and laborers #a4fi #a4ga #a4fh #a4fg #a4fd #a4fe #a4gj #a4fg ---------------------------------------- ---------------------- 7a7 ,averages for #aiji and #aijh are calculated from the returns to the ,bureau of days worked and compensation of the several classes of roads representing #ig of the traffic4 ,the average pay of general officers for #aiji and #aijh in this summary is out of proportion1 for the reason that the returns to the ,bureau cover only #fj of the class numerically and include all the larger systems4 ,before #ahid1 this class included ,other officers1 so the returns for #ahic and #ahib are not comparable with those for this class in subsequent years4 ,comparing the average daily compensation of the four great classes most intimately associated in the public mind with railway operations in #ahii and #aiji1 it appears that during the decade the average wages of enginemen increased approximately #bj2 of firemen #bg2 of conductors #bj2 and of other trainmen1 including switchmen1 brakemen and baggagemen--the most numerous body--#cd4 ,an estimate based on the number employed and their aggregate compensation in #ahii1 allowing #caj working days to the year1 would place the increase for all employes during the decade at #bc4 ,the relation of the compensation of railway employes to the gross earnings of the railways1 which furnish the fund from which they are paid1 and also to the sum of the expenses incurred in producing those earnings for the past ten years1 is shown in the next summary1 in conjunction with the operating ratio3 ,,summary ,,showing ,,proportion ,,of ,,compensation ,,of ,,employes ,,to ,,gross ,,earnings ,,and ,,operating ,,expenses1 ,,and ,,of ,,operating ,,ratio ,,ten ,,years1 #ahii ,,to #aiji4 ,ratio ,ratio ,ratio of ,compensation ,compensation ,operating ,expenses of ,labor to of ,labor to to ,gross ,earnings,operating ,expenses ,gross ,earnings ---------------------------------------- ------------------------- #aiji #da4jj #fb4jf #ff4ab #aijh #dc4ch #fb4cc #fi4fg #aijg #da4db #fa4da #fg4ec #aijf #dj4jb #fj4gi #ff4jh #aije #dj4cd #fj4dj #ff4gh #aijd #da4cf #fa4jg #fg4gi #aijc #dj4gh #fa4fe #ff4af #aijb #ci4bh #fj4eh #fd4ff #aija #ch4ci #ei4bg #fd4hf #aijj #ch4hb #fj4jd #fd4fe #ahii #ci4ha #fa4jd #fe4bd ,increase #ahii to #aiji #c4jj #a4fe #a4ce ---------------------------------------- ------------------------- ,the significance of this statement is that in spite of all the labor saving devices and economies of operation--reduced grades1 modified curves and more efficient equipment--adopted by the railways during the past decade1 the proportionate cost of labor to earnings and to expenses has increased4 ,it reached an abnormally high ratio in #aijh because of the unprecedented recession in revenues during the second half of the year4 ,the fact that it has been above #dj persistently since #aijb proves that labor continues to receive its full proportion of the receipts of ,american railways4 ,,pay ,,of ,,employes ,,on ,,british ,,railways4 ,although the statistics of ,british railways are singularly barren of details respecting the compensation of ,british railway servants1 as they are termed1 the reports of ,boards of ,conciliation afford data as to the rates of pay of several classes as follows3 ,,scale ,,of ,,wages ,,of ,,drivers ,,and ,,firemen ,,on ,,north ,,british ,,railway1 #aiji4 ,rate per ,day of #ab ,hours -------------- ,drivers,firemen ---------------------------------------- ---------------------------- ,passenger engines1 main line1 long road #a4ef #j4hh ,passenger engines running into chief terminal station #a4dd 4#hd ,passenger engines1 branch lines #a4cb 4#hj ,goods engines1 main line1 long road1 trip men #a4dd 4#hh ,goods engines1 main line1 other than long road #a4cb 4#hd ,goods and mineral engines running into depots and terminal stations #a4bj 4#hj ,goods and mineral engines working branch lines and collieries #a4ad 4#gf ,mineral pilot1 pilot and shunting engines #a4jd 4#gb ---------------------------------------- ---------------------------- ,in his award in the case of the ,north ,eastern ,railway1 ,sir ,james ,woodhouse fixed the following scales3 ,firemen4--,first year1 #hd cents per day2 #b;d year1 #ij cents2 #c;d year1 #if cents2 #dth and #eth years1 #a4jb2 #fth year1 #a4jh2 #gth year1 #a4ad2 #hth year1 and subsequent years1 #a4bj4 ,firemen to pass for drivers during the #hth year4 ,cleaners4--,age #af to #ag years1 #b4dj per week2 #ag to #ah years1 #b4fd2 #ah to #ai years1 #c4ab2 #ai to #bj years1 #c4fj2 #bj to #ba years1 #d4jh2 and an advance of #bd cents per week for each subsequent year up to a maximum of #d4hj per week4 ,that the wages of all goods and mineral guards be increased as follows3 7a7 ,the wages of those who have been in receipt of #g4bj 7the maximum of the existing scale7 for not less than two years shall be increased to #g4dd per week4 7b7 ,the wages of those who have been in receipt of the said maximum for not less than five years shall be increased to #g4fh per week4 ,the bonus for working with large engines on freight trains discontinued when any guard becomes entitled to the maximum wages of #g4fh per week4 ,men working in the ,london district get from #f to #ab cents more per day than those in outside districts4 ,the award in the case of the ,great ,northern made an addition of #bd cents to the weekly scale of the following grades3 ,signalmen #d4cb1 #d4ef1 #d4hj and #e4jd2 passenger guards and brakemen #e4bh up to #f4jj2 goods guards and brakemen #e4jd up to #f4bd2 ticket collectors #e4jd up to #e4eb2 horse shunters #d4ef up to #e4jd2 parcels porters #d4cb to #e4jd2 carriage cleaners #d4jh to #d4cb2 plate layers1 second men and under men #d4cb and less up to #e4jd2 ballast train guards1 flagmen and greasers rates less than #e4jd per week4 ,an additional allowance of #bd cents per week is made to men stationed in the ,london district4 ,from these figures a fair idea is gained of the average pay of ,british railway labor4 ,they support the statement that there are over #ajj1jjj railway men in the ,united ,kingdom working for less than one pound 7#d4hg7 a week4 ,the total compensation paid ,british railway employes in #aijh was #aej1bdh1jjj against #afb1ddj1jjj for the preceding year4 ,but whether the decrease was due to a reduction in pay or in numbers employed cannot be told1 as there has been no census of railway servants since #aijg4 ,the average pay may be safely approximated at #bfj per year per man1 boy and porter1 who two years ago numbered #fba1cda4 ,in #aijg1 ,special ,agent ,ames1 of the ,interstate ,commerce ,commission1 reported wages on the railways of the ,united ,kingdom as follows3 ,enginemen #i4cb per week ,firemen #e4gf ,conductors #f4bf ,brakemen #f4dd ,shunters #e4hj ,examiners #e4hj ,signalmen #e4ff ,trackmen #e4eh ---------------------------------- ,,pay ,,of ,,railway ,,employes ,,in ,,other ,,countries4 ,the contrast between the wages of ,american and ,european railway employes is emphasized by those paid on the continent4 ,the official statistics of the empire show an increase of #e in the average yearly compensation of ,german railway employes in #aijh4 ,their number and pay for that year to ,december #cast in the four main classes into which they are divided were as follows3 ,,number ,,and ,,pay ,,of ,,german ,,railway ,,employes ,,by ,,principal ,,divisions ,,for ,,the ,,year ,,ending ,,december #ca1 #aijh4 ,division ,employes ,compensation ,average ,increase ,number 7,total7 per yearover #aijg ---------------------------------------- --------------------------- ,general administration #ca1iif #be1afg1bdj #ghg #cd ,maintenance and guarding road #agg1fcc #db1hia1gec #bda #e ,station service and train crews #cjb1cdc #aaf1bai1feg #chd #bd ,switching crews and shops #ahg1ahc #ge1cbh1jhd #djb #ah ---------------------------------------- - ,total #fii1aee #bei1fjf1gcd #cga #ai ,increase over #aijg #c1eih #ad1baf1hge -- -- ---------------------------------------- --------------------------- ,combined with a falling off in revenues and an increase in the cost of materials this increase in the compensation of employes had the effect of raising the operating ratio of ,german railways from #fi4ja in #aijg to #gc4ef in #aijh4 ,it also increased the proportion of wages to gross earnings from #cg4be to #dj4a and had the effect of reducing the net revenues from #e4fj to #d4ea on the cost of construction4 ,how railway labor fares under government ownership in a republic as compared with its pay in an empire may be judged from a comparison of the following statement as to the number and pay of the railways of ,switzerland with the like classes in the preceding table for ,germany4 ,,number ,,and ,,pay ,,of ,,swiss ,,railway ,,employes ,,by ,,principal ,,divisions ,,in #aijg4 ,division ,employes ,compensation ,average ,number 7,total7 per ,year ---------------------------------------- --------------------------- ,general administration #a1fca #ghj1gae #dgh ,maintenance and inspection of way #aj1cjh #a1dei1igg #adb ,transportation and train service #ag1hae #f1hbi1dbf #chc ,porters and laborers #ab1bai #c1bji1haj #bfb --------------------------------- ,total #da1igc #ab1bgi1ibh #bib ---------------------------------------- --------------------------- ,the wages paid the employes of ,swiss railways in #aijg amounted to only #ca4i per cent4 of the gross earnings1 and yet they added enough to the cost of operation to help increase the telltale ratio of expenses to revenues from #fd4ii in #aijf to #fg4bi in #aijg4 ,the result was increased operating expenses per mile and a decrease in the amount available for interest in dividends from #c4bf in #aijf to #c4bc in #aijg4 ,as the ,swiss republic has to pay #c on government loans its investment in railways does not appear to be a very profitable one4 ,,employes ,,of ,,french ,,railways4 ,the employes of the railways of ,france are divided into the following classes3 ,general administration #c1aai ,transportation and traffic #abh1hbc ,traction and material #hj1gcb ,way and structures #ha1hig ,auxiliaries #hb1hji ,female employes #bi1agh --------- ,total #djf1eeh ---------------------------------------- ---------- ,the official statistics only give the compensation of employes in the division of traction and material1 where the #hj1gcb men employed get an average of #ahg per year4 ,on the state railways of ,belgium1 firemen receive from #ae4bj to #bb4hj per month1 the higher wage only after #ae years' service2 enginemen begin at #bb4ej per month and at the end of #bd years' service work up to #ch4jj per month2 conductors earn from #ae4ig per month up to a maximum of #cd4gj2 brakemen1 beginning as shunters 7switchmen7 at #de cents a day1 when promoted get a minimum of #ag4aj per month1 from which they are slowly advanced to a maximum of #bb4jj4 ,the average railway worker in ,belgium gets #b4bb francs 7#dc cents7 a day4 ,whole classes of ,american railway employes get more in a month than ,belgian railway employes average in a year4 ,,the ,,cost ,,of ,,living4 ,what and how great the virtue and the art1 ,to live on little with a cheerful heart4--,pope4 ,not because it has any legitimate place in fixing the standard of railway wages1 which should be relative to the part capacity1 intelligence1 industry1 loyalty and experience play in railway service1 but because in recent years the steady increase in the cost of living has been made the fulcrum on which every lever to advance wages works1 is it proper to refer to the subject in this report4 ,now there is nothing in the whole wilderness of economics so utterly illusive and misleading as this same cost of living4 ,it is as incapable of statistical expression as the airy imaginings of a dream and yet it broods over the domestic happiness of nations with all the disquieting effects of a nightmare--and like every nightmare it comes from eating too much and wanting to eat more4 ,in economics1 beyond the barest subsistence1 the cost of living is not ruled by necessity but by individual choice4 ,each person and family settles it along the lines of abstinence or indulgence4 ,it ranges from the dinner of herbs where love is and the virtues of self-denial are nourished1 to the feasts of ,lucullus and ,pompeian profligacy in whose indulgence whole peoples have perished4 ,in every discussion of the subject first consideration is given to the price of food4 ,this amounts to measuring the cost of living with an elastic string4 ,the proportion of the cost of food to the cost of living varies in every land1 in every occupation and in every household4 ,it amounts to less than #dj in an average ,american family1 but each family fixes it for itself4 ,following certain well recognized economic laws the percentage for subsistence increases as the income decreases4 ,for instance1 in ,france families with an income of under #d4hj per week spend #fc of it for food alone1 whereas those with #i4fj a week spend #ec4 ,in ,england1 families averaging #e4ab a week spend #fg on food1 while those of #i4fj spend #eg or less4 ,in ,germany1 a similar inquiry showed that families with an average income of #d4bc per week spent #fh4g on food 7excluding beer71 or #fi4e 7with beer72 whereas families with an income of #i4fj per week spent less than #eg on food excluding beer4 ,the exhaustive investigation made by ,commissioner ,carroll ,d4 ,wright when head of the ,bureau of ,labor in #aijc anticipated for the ,united ,states these results of more recent ,european inquiries1 as appears from the following table showing the per cent of total expenditure made for various purposes in normal families according to classified incomes3 ,,per ,,cent ,,of ,,expenditure ,,for ,,various ,,purposes ,,in #aa1aef ,,normal ,,families1 ,,by ,,classified ,,incomes1 #aija4 ,classified income ,rent ,fuel ,lighting ,food ,clothing,sundries ---------------------------------------- ------------------------- ,under #bjj #af4ic #f4fi #a4bg #ej4he #h4fh #ae4eh #bjj or under #cjj #ah4jb #f4ji #a4ac #dg4cc #h4ff #ah4gg #cjj or under #djj #ah4fi #e4ig #a4ad #dh4ji #aj4jb #af4ji #djj or under #ejj #ah4eg #e4ed #a4ab #df4hh #aa4ci #af4ej #ejj or under #fjj #ah4dc #e4ji #a4ab #df4af #aa4ih #ag4bb #fjj or under #gjj #ah4dh #d4fe #a4ab #dc4dh #ab4hh #ai4ci #gjj or under #hjj #ah4ag #d4ad #a4ab #da4dd #ac4ej #ba4fc #hjj or under #ijj #ag4jg #c4hg #a4aj #da4cg #ac4eg #bc4jb #ijj or under #ajjj #ag4eh #c4he #a4aa #ci4ij #ad4ce #bc4ba #ajjj or under #aajj #ag4ec #c4gg #a4af #ch4gi #ae4jf #bc4fi #aajj or under #abjj #af4ei #c4fc #a4jh #cg4fh #ad4hi #bf4ac #abjj or over #ag4dj #c4he #a4ah #cf4de #ae4gb #be4dj ---------------------------------------- - ,all classes #ah4ab #d4eg #a4ab #dc4ac #ab4ie #bj4aa ---------------------------------------- ------------------------- ,while it is scarcely believable that many ,american families with incomes under #bjj spent less than #ajj a year on food--the ,european percentage in such cases being more credible--there is no reason to question the general economic law reflected in this table1 that the proportion of income spent on food diminishes as the income increases4 ,but it is governed more by individual tendencies1 character and taste than by any rule or principle4 ,each family works out the problem on its own account4 ,according to the evidence presented at recent arbitration hearings in this city1 ,american switchmen1 as a body1 belong in the classes whose family expenditures are #a1jjj or over4 ,irrespective of the incomes of other members of their families1 the arbitrators found that the actual monthly earnings of switchmen in the ,chicago district1 for those who worked full time runs from about #hj to #ajj per month4 ,this means over #a1jjj yearly compensation4 ,therefore they are in the class which spends less than #ci of its income on food4 ,the average income for all railway employes engaged in train service1 that is1 enginemen1 firemen1 conductors and other trainmen1 is probably above the highest figure in the foregoing table and therefore the proportion of their income spent for food would be approximately #cf4 ,but accepting #dj as approximately the proportion of the pay of all railway employes spent on food1 it follows that it takes only two-fifths of one per cent increase in wages to take care of an increase of one per cent in the price of food4 ,with this in mind it becomes instructive to follow the retail prices of the various articles of food as selected by ,mr4 ,wright in his inquiry into the cost of living in #aija and adopted by the ,bureau of ,labor in subsequent ,bulletins4 ,these for thirty articles of food for the eighteen years #ahij to #aijg1 as given in ,bulletin ,no4 #gg of the ,bureau of ,labor1 and for the two years #aijh-aiji as computed from ,bradstreet's index and other sources of commodity prices1 are given in the following statement relatively to the average price for #ahij to #ahii #ajj3 ,,relative ,,retail ,,prices ,,of ,,the ,,principal ,,articles ,,of ,,food ,,in ,,the ,,united ,,states1 #ahij ,,to #aiji4 7,average price for #ahij-ahii #ajj4j47 ,chickns 7year ,apples,beans1,beef1 ,beef1 ,beef1 ,bread1,butter,cheeseor more,cof- ,year ,evapo- ,dry ,fresh1,fresh1,salt ,wheat old7 fee rated ,roasts,roasts dressed ---------------------------------------- ------------------------- #ahij #aji4j #ajc4c #ii4e #ih4h #ig4e #ajj4c #ii4b #ih4h #aja4c #aje4d #ahia #aaj4c #ajf4b #ajj4j #ii4d #ih4c #ajj4c #ajf4dajj4c #ajd4j #aje4b #ahib #ii4c #ajb4d #ii4f #ii4c #ii4e #ajj4c #ajf4haja4e #ajc4h #ajc4h #ahic #ajg4j #aje4j #ii4j #ii4f #ajj4c #ajj4a #aji4iaja4h #ajd4b #ajd4h #ahid #aje4h #ajb4h #ih4c #ih4b #ih4i #ii4i #aja4gaja4f #ih4f #ajc4c #ahie #ig4d #ajj4e #ih4f #ii4a #ii4f #ii4g #ig4j #ii4b #ih4d #aja4g #ahif #hh4f #ib4g #ii4a #ii4e #ii4h #ii4i #ib4g #ig4i #ig4a #ii4f #ahig #hg4h #ia4e #ajj4c #ajj4b #ajj4i #ajj4j #ic4a #ii4j #id4j #id4f #ahih #ie4d #ie4i #aja4g #ajb4j #ajb4a #ii4h #ie4a #ig4e #if4h #ia4a #ahii #ii4e #ii4g #ajc4g #ajc4i #ajc4b #ii4f #ig4gajb4d #aja4h #ij4e #aijj #ie4b #aaj4j #ajf4e #ajf4d #ajc4g #ii4g #aja4dajc4i #ajj4h #ia4a #aija #if4h #aac4i #aaj4g #aaa4j #ajf4a #ii4d #ajc4bajc4c #ajc4j #ij4g #aijb #ajd4d #aaf4h #aah4f #aah4e #aaf4j #ii4d #aaa4eajg4c #aac4b #hi4f #aijc #ajj4h #aah4a #aac4a #aab4i #ajh4h #ajj4b #aaj4haji4d #aac4e #hi4c #aijd #ii4b #aaf4h #aab4h #aac4d #ajh4c #ajc4i #aji4jajg4d #abj4g #ia4h #aije #ajf4j #aaf4c #aab4b #aab4i #ajg4i #ajd4e #aab4gaaj4i #abc4f #ic4f #aijf #aae4f #aae4b #aae4g #aaf4e #aaj4h #ajb4c #aah4baae4e #abi4a #id4g #aijg #abd4f #aah4h #aai4a #abj4f #aad4a #ajd4e #abg4fabc4b #aca4d #ie4j #aijh #abf4d #ach4i #abf4b #aca4e #aaf4d #abd4e #abc4eaba4c #abh4f #id4g #aiji #abh4f #ada4b #acb4f #acd4a #abh4b #abd4e #acd4hadb4j #aej4b #ajh4f ---------------------------------------- ------------------------- ,milk1 ,year ,corn ,eggs ,fish1 ,fish1 ,flour ,lard ,fresh1,mola- ,mutton,pork1 ,meal ,fresh ,salt ,wheat unski- sses ,fresh mmed ---------------------------------------- ------------------------- #ahij #ajj4j #ajj4f #ii4c #ajj4g #aji4g #ih4b #ajj4eajd4g #ajj4g #ig4j #ahia #aji4g #ajf4i #ii4f #aja4g #aab4e #ii4h #ajj4eaja4g #ajj4f #ih4g #ahib #aje4b #ajf4h #ajj4a #ajb4b #aje4a #ajc4f #ajj4faja4b #aja4j #ajj4e #ahic #ajc4a #ajh4a #ajj4a #ajc4d #if4a #aag4i #ajj4dajj4f #ii4i #ajg4j #ahid #ajb4b #if4c #ajj4d #aja4e #hh4g #ajf4i #ajj4bajj4c #ig4h #aja4h #ahie #ajj4h #ii4c #ii4h #ih4i #hi4j #ajj4a #ajj4j #ii4j #ih4g #ii4g #ahif #ie4j #ib4h #ajj4b #ig4e #ib4g #ib4e #ii4i #ih4g #ih4g #ig4d #ahig #ic4g #ia4d #ii4h #ie4b #ajd4c #hi4h #ii4g #ig4g #ii4f #ig4f #ahih #ie4j #if4b #ajj4e #ih4h #ajg4d #ic4i #ii4d #ig4i #ajj4d #ih4f #ahii #ie4a #aja4a #ajj4b #ajj4b #id4f #ig4a #ih4i #ih4b #ajb4f #aja4g #aijj #ig4d #ii4i #ajj4d #ii4a #id4c #ajd4d #ii4iajb4b #aje4f #ajg4g #aija #ajg4a #aje4g #aja4d #ajj4i #id4d #aah4a #aja4aaja4c #aji4j #aag4i #aijb #aah4h #aai4a #aje4j #ajb4h #id4i #acd4c #ajc4cajb4a #aad4g #abh4c #aijc #abj4g #abe4c #ajg4c #ajh4d #aja4b #abf4g #aje4hajc4h #aab4f #abg4j #aijd #aba4e #acj4i #ajg4i #aaa4g #aai4i #aag4c #ajf4cajd4j #aad4a #abd4j #aije #abb4b #aca4f #aji4i #aac4h #aai4i #aaf4f #ajg4jajd4d #aag4h #abf4f #aijf #abc4b #acd4b #aaf4b #aaf4h #ahj4a #abh4j #ajh4iaje4c #abd4a #acg4g #aijg #aca4f #acg4g #abj4f #aba4f #aag4g #acd4b #aaf4hajg4g #acj4a #adb4e #aijh #aed4j #adj4b #aaf4b #aah4d #adj4j #acb4a #aae4dajb4b #abf4d #ada4f #aiji #afj #adb4b #abj4d #abb4f #aed4d #aec4h #ada4fajf4d #acd4h #afh4b ---------------------------------------- ------------------------- ,pork1 ,pork1 ,pork1,potat- ,year ,salt1 ,salt1 ,salt1 oes1 ,prunes ,rice ,sugar ,tea ,veal ,vine- ,bacon dry or ,ham ,irish gar pickled ---------------------------------------- ------------------------- #ahij #ie4h #ie4c #ih4g #aji4c #aaf4h #aja4c #aah4f #ajj4j #ih4h #ajb4i #ahia #if4f #ih4i #ii4c #aaf4f #aaf4e #ajb4e #ajb4g #ajj4d #ii4f #aje4e #ahib #ii4a #ajj4e #aja4i #ie4g #aac4e #aja4c #if4b #ajj4b #ajj4j #ajb4g #ahic #aji4j #ajh4g #aji4c #aab4c #aae4f #ih4d #aja4e #ajj4a #ajj4j #ii4e #ahid #ajc4f #ajc4d #aja4i #ajb4f #ajj4i #ii4j #ic4h #ih4g #ih4g #ii4h #ahie #ii4d #ii4b #ih4h #ia4h #id4b #ih4h #ia4h #ih4e #ih4e #ih4i #ahif #if4g #ie4e #ig4f #gg4j #hf4h #if4g #if4f #ih4h #ii4e #ig4b #ahig #ig4d #ig4c #ih4b #ic4j #hd4c #ig4i #ie4g #ih4e #ii4i #ig4d #ahih #ajj4b #ii4a #ie4a #aje4d #hf4c #aja4g #aja4c #ajj4g #aja4b #ig4i #ahii #ajb4i #aja4h #ii4b #if4a #he4a #ajb4d #aja4g #ajd4d #ajc4g #ih4c #aijj #aji4g #ajg4g #aje4c #ic4e #hc4j #ajb4d #ajd4i #aje4e #ajd4i #ih4e #aija #aba4j #aag4e #aaj4b #aaf4h #hb4f #ajc4e #ajc4j #ajf4g #ajh4h #ih4i #aijb #ace4f #acb4e #aai4d #aag4j #hc4d #ajc4e #if4a #ajf4j #aad4i #ii4a #aijd #acg4i #abe4h #aah4d #aba4c #gi4f #aja4f #aja4i #aje4h #aae4e #ih4i #aije #ach4h #abf4j #aah4e #aaj4b #ha4d #ajb4f #ih4b #aje4e #abc4b #ajb4f #aijg #aeg4c #ada4b #acj4g #abj4f #hh4d #ajh4e #ii4f #aje4c #abe4j #ajd4e #aijh #adb4d #acg4d #aab4j #ach4d -- #aje4a #ajj4j #ajh4f #abd4b #aab4d #aiji #ahj4j #aea4b #ade4j #abj4j -- #ajc4c #aje4j #aji4j #acj4b #aac4j ---------------------------------------- ------------------------- ,no authority is claimed for the prices in these tables for the years #aijh and #aiji4 ,they merely represent the tendencies in those years1 as found in official and unofficial wholesale prices of the several commodities1 and there are often striking divergences between wholesale and retail prices over short periods4 ,eventually they follow the same course1 although not always in the same proportion4 ,now let us see how the average retail price of these #cj articles of food compares with the average daily pay of the four representative classes of railway employes in train service for the ten years #ahii to #aiji4 ,average ,daily ,compensation ,relative -------------------------------------,pr ices of ,other ,food1 ,year ,enginemen ,firemen ,conductors ,trainmen#ahij-ahii #ajj ---------------------------------------- --------------------------- #ahii #c4gb #b4aj #c4ac #a4id #ii4f #aijj #c4ge #b4ad #c4ag #a4if #aja4e #aija #c4gh #b4af #c4ag #b4jj #aje4e #aijb #c4hd #b4bj #c4ba #b4jd #aaj4i #aijc #d4ja #b4bh #c4ej #b4bg #aaa4f #aije #d4ab #b4ch #c4ej #b4ca #aab4e #aijf #d4ab #b4db #c4ea #b4ce #aaf4b #aijg #d4cj #b4ed #c4fi #b4ed #abj4g #aijh #d4df #b4fe #c4hc #b4fd #aag4g #aiji #d4df #b4fg #c4gf #b4fj #abg4g ---------------------------------------- ------ ,per cent4 increase #ai4i #bg4a #bj4a #cd4j #bh4b ---------------------------------------- --------------------------- ,here it will be observed the percentage of increase in the average daily compensation of ,other trainmen exceeds the relative increase in the price of food1 that of firemen almost equals it1 while that of enginemen and conductors is below it by approximately #h points4 ,but1 as demonstrated in the table from the ,eighteenth ,annual ,report of the ,commissioner of ,labor 7#aijc71 a smaller percentage of the income of enginemen and conductors is spent on food than of those employes receiving lower pay4 ,moreover as only two-fifths of all expenditures is spent on food an increase of #bj in wages would take care of a #ej advance in the average price of food--provided the increase in wages was not attended by a corresponding increase in every other item entering into the cost of living4 ,and right here's the rub with any attempt to measure wages by the cost of living4 ,which is the egg and which is the hen1 in the matter of precedence4 ,does the cost of living lay the income or does the income hatch the cost of living8 ,economically and theoretically it is not up to the railways to solve this world old conundrum4 ,practically they are called on to meet every advance in the cost of living of their employes to which in twenty years they have not added a nickel1 and they are denied the privilege1 enjoyed by every other employer of labor1 to add its increased cost to the price of their only commodity or service--transportation4 ,today the advances in the scale of railway wages awarded1 proposed and demanded mean an increase of from #fj1jjj1jjj to #ge1jjj1jjj in the annual cost of living of the railways4 ,the advance made in #aijf-jg added #abj1jjj1jjj to the pay roll of #aijh4 ,combined1 these two advances within three years mean an increase of approximately #bjj1jjj1jjj a year to the operating expenses of the railways without adding a single unit to efficiency of the labor factor in railway operation4 ,this is equal to an annual first charge of #e on #d1jjj1jjj1jjj6 ,imagine the hue and cry from the press1 the immediate injunctions from ,washington1 the despondent wail from ,wall ,street1 if the railways proposed to pour that much water into their own cost of living without getting a mile of track1 a single engine1 car1 or coach1 a cubic yard of ballast1 one untreated tie or any semblance of improvement or new facility to show for the vast expenditure6 ,and yet the railways have their increased cost of living to meet just as the rest of us4 ,nothing they need and must have can be purchased at the prices of a few years back4 ,when you mention steel rails you have named about the only railway necessity that has not advanced its cost of living in recent years1 and the railways have to buy #ajj-pound rails where five years ago #hj-pound rails sufficed1 and ten years ago #gj pounds was heavy enough for the lighter cars and engines of the time4 ,but at the first suggestion of advancing rates to meet advancing prices of commodities the ,commissions were overwhelmed with protests from shippers and the paring of freight rates down went on as the prices of the goods they carried went up4 ,in ten years the price of lumber advanced nearly #ej4 ,as a cheap bulky commodity it had enjoyed a low rate in order to move it and it was moved at the expense of other commodities4 ,when it was able to pay a little more toward the cost of getting it to market the proposal of an advance was met with indignant protests from lumber shippers and dealers and reversed thumbs by the sympathetic commissions4 ,the railways pay more for their lumber and other material today than they did ten years ago but they will have to fight for any advance in rates to meet this part of their cost of living4 ,it is said to be a poor rule that will not work both ways--but the cost of living seems to have only one way of working so far as railway economics are concerned4 ,just as a straw to indicate that high prices of food are the result and not the basis of high wages the following table of comparative prices in ,london and ,new ,york from the ,new ,york ,times of ,march #bg1 #aiaj1 is instructive3 ,,comparative ,,retail ,,prices ,,of ,,articles ,,of ,,food ,,in ,,london ,,and ,,new ,,york ,,in ,,march1 #aiaj4 ,london4 ,new ,york4 ,cents4 ,cents4 ---------------------------------------- ---------------------- ,apples1 #a lb #d to #f #aj ,bread1 #a lb #d #e ,butter1 #a lb #bd to #cb #cj to #ce ,cheese1 #a lb #ad to #af #ah to #bb ,cocoa1 #a lb #af to #cf #be to #ej ,coffee1 #a lb #af to #cj #bj to #ej ,currants1 #a lb #d to #h #h to #ab ,eggs1 #ab to #af #be #f to #ab--be ,codfish1 #a lb #h to #ab #ae to #bi ,fish 7general71 #a lb #d to #ab #aj to #be ,flour1 #c lbs #i to #aj #ab ,meats3 ,bacon1 #a lb #af to #bd #be to #cj ,beef1 #a lb #af to #bj #bb to #cj ,pork1 #a lb #ab to #af #bj to #bd ,milk1 #a pint #d #d to #e ,oatmeal1 #a lb #d to #f #e to #aj ,onions1 #a lb #b #d ,oranges1 #a doz #aj to #ab #ah to #ej ,potatoes1 #a lb #a to #b #c to #d ,prunes1 #a lb #h to #ab #aj to #ah ,raisins1 #a lb #f to #aj #aj to #af ,rice1 #a lb #d #f ,syrup1 #a lb #f #aj ,sugar white1 #a lb #f #f ,sugar1 yellow1 #a lb #d #e ,tapioca1 #a lb #h #aj ,tea1 #a lb #bj to #fj #cj to #a4ej ,tomatoes1 #a lb #h #ab ---------------------------------------- ---------------------- ,the amazing feature of this statement is that the ,united ,states produces and exports to the ,united ,kingdom enormous quantities of breadstuffs1 meat and provisions1 which constitute the chief articles of food in ,london and which are sold there at prices from #bj to #be lower than in ,new ,york4 ,clearly it is the high scale of wages that fosters the high cost of living in the ,united ,states and there can be little question but it breeds the high wages it feeds on4 ,it is humanly certain1 though economically unsound1 that wages will continue to advance with the cost of living and will not recede proportionately as prices of food fall4 ,but both will decline together when for any considerable period there is a surplus of efficient labor for the requirements of ,american industry4 ,even railway labor in the most stable of all employments yielded to this influence in #ahic and #ahid2 and the prices of food receded to the low mark in the following years #ahie1 #ahif and #ahig4 ,not until wages took their upward turn in #ahih did the cost of food begin to show above the index average of #ahij-ahii4 ,,iv ,,capitalization ,according to the ,twenty-third ,annual ,report of the ,interstate ,commerce ,commission the amount of railway capital1 including stocks and bonds outstanding in the hands of the public on ,june #cj1 #aijh1 was #ab1hdj1jia1dfb1 which1 if assigned on a mileage basis1 shows a capitalization of #eg1bcj per mile of line4 ,in the face of all the fustian about over-capitalization of ,american railways1 this is a most remarkable admission1 not only of their moderate1 but of their decreasing capitalization per mile4 ,in its report on the ,intercorporate ,relationships of ,railways1 dated ,march #aj1 #aijh1 the ,commission found that as the result of its investigation the figure for railway capital outstanding in the hands of the public1 ,measuring the claim of railway securities on railway revenues1 reduced the amount from #fg1icf per mile of line 7#aijf7 to #eh1jej per mile of line4 ,of course there was never any justification for using the larger sum as a true measure of railway capitalization1 for it was known to contain at least #ae duplicated capital4 ,in its ,statistics of ,railways for the year ending ,june #cj1 #aijg1 the ,commission gave the net amount of railway capital outstanding in the hands of the public at that date1 assigned on a mileage basis as #eh1bih per mile of line1 or #a1jfh more than the figure reported for #aijh4 ,as the computation for #aijh was made on a basis of #bbd1cfc miles of line1 this would indicate a shrinkage of no less than #bci1faf1dhj in the par value of railway capital4 ,it is needless to say there was no such shrinkage4 ,,net ,,capitalization ,,in #aiji4 ,following the earlier judgment of the ,official ,statistician1 this ,bureau seeks to arrive at a fair approximation of the capitalization of the railways of the ,united ,states through the reports of operating roads and the capitalization of the rentals paid for leased roads4 ,this1 in the more recent language of the ,statistician1 furnishes the only capitalization that measures the claim of railway securities on railway revenues4 ,applied to the returns received by this ,bureau from #bba1acb miles of operated line1 this formula yields the following result for the year ending ,june #cj1 #aiji3 ,,summary ,,showing ,,capitalization ,,of #cfh ,,companies ,,operating #bba1acb ,,miles ,,of ,,line ,,for ,,the ,,year ,,ending ,,june #cj1 #aiji4 ,capitalization #aiji 7#ahb1jdf ,miles ,owned7 ---------------------------------------- ------------------------------ ,capital stock #f1aii1iai1eea ,funded debt #h1jae1hda1hje ,receivers' certificates #bj1dig1ddg ---------------- #ad1bcf1beh1hjc ,rental of #ci1jhf miles1 #abj1ghd1ihb1 capitalized at #e4 #b1dae1fii1fdj ---------------- ,total #af1fea1ieh1ddc ,deduct37a7 ,railway stocks owned 7actual value7 #a1hhi1aeg1bad ,other stocks owned 7actual value7 #bjf1dfa1dbc ,railway bonds owned 7actual value7 #a1jed1jie1ije ,other bonds owned 7actual value7 #adj1bhb1gbh ---------------- #c1bhi1iig1bgj ,net capitalization1 #aiji #ac1cfa1ifa1agc ,net capitalization per mile operated #fj1dbe ---------------------------------------- ------------------------------ 7a7 ,the par value of these stocks and bonds owned is given as #d1gci1bca1hcb4 ,an estimate of #be1jjj per mile for the #aa1hgj miles of line not reporting to this ,bureau would add #bif1gej1jjj to the above total4 ,from this should be deducted #aej1jjj1jjj for the sum assigned by the ,official ,statistician to other properties1 and we arrive at the following close approximation of the true measure of the capital employed in the transportation industry of the ,united ,states3 ,net capitalization1 #bcc1jjb miles operated line1 #aiji #ac1ejh1gaa1agc ,net capitalization per mile of line #eg1ifb ,net capitalization per mile of track #ci1gcj ---------------------------------------- ------------------------------ ,in computing the average capital per mile last given1 no allowance has been made for the #h1ibg miles operated under trackage rights for the sufficient reason that the rental paid therefor is represented in the total capitalization just as fully as if so much capital had been expended in the construction of that many miles of line4 ,it is worthy of note that the net capitalization thus arrived at through a straightforward analysis of the returns of the operating companies is in substantial agreement with the ,commission's report on the ,intercorporate ,relationship of ,railways in #aijh4 ,the construction of #aa1jjj miles of line since #aijf would undoubtedly account for the difference between #eh1jej and #eg1ifb per mile of line4 ,,summary ,,showing ,,net ,,capitalization ,,of ,,the ,,railways ,,of ,,the ,,united ,,states1 #aiji-aijd4 ,year ,net ,per ,mile ,capital of ,line ---------------------------------------- ----- #aiji #ac1ejh1gaa1agc #eg1ifb #aijh #ac1jjg1jab1efc #eh1hfd #aijg #ac1jfd1bgi1cjc #ei1fjj #aijf #ab1fbh1jjj1jjj #eg1iff #aije #aa1afg1aje1iib #ec1cbh #aijd #aj1gaa1gid1bgh #eb1jii ---------------------------------------- ----- ,owing to the intercorporate ownership of stocks and bonds and the consequent intercorporate payments of interest and dividends1 it is no easy matter to make an entirely satisfactory estimate of the return paid to capital out of the purely transportation revenues of the railways4 ,but the persistent reiteration by the ,official ,statistician of the fictitious aggregate of all the dividends paid by operating and non-operating companies1 covering in #aijh1 by his own admission1 #c1ibg1dec1cfe duplicated capital1 justifies the attempt4 ,the operating income of the roads reporting to this ,bureau for the year #aiji is arrived at thus3 ,gross earnings 7#bba1acb miles operated7 #b1cge1ada1gff ,operating expenses #a1efh1jjh1chi --------------- ,net earnings from operation #hjg1acc1cgg ,less taxes #hb1fej1bad --------------- ,net operating income #gbd1dhc1afc ---------------------------------------- ---------------------- ,this #gbd1dhc1afc is the balance in the hands of the #cfh companies of the moneys received by them from transportation1 or1 as the ,official ,statistician now calls it1 rail operations1 for the payment of interest1 rent1 other deductions1 dividends1 additions and betterments1 reserves1 surplus and deficits4 ,but before proceeding to this distribution these companies received #bjj1gbe1fif income from other sources1 principally interest and dividends on stocks and bonds owned and for rent of track1 and a net balance of #e1daj1cch from outside operations4 ,the total of these two sums1 #bjf1acf1jcd1 may be arbitrarily applied first to offset the item of rent1 #abj1ghd1ihb1 paid for leased lines and track1 and the balance in payment of interest and dividends in proportion to the value of bonds and stocks owned as above1 viz43 #cf and #fd1 respectively4 ,this enables us to make the following distribution of the net operating income of the railways reporting to this ,bureau1 as follows3 ,net operating income1 as above #gbd1dhc1afc ,disposition of same3 ,interest on funded debt #cbd1aha1eba ,less paid from other income #cj1hdc1daf #bic1cch1aje ,interest on current liab- ilities #bb1edf1ggi ,other deductions #gj1agd1dgc ,dividends preferred stock #ej1ahc1gci ,dividends common stock #agf1fjg1eej ------------- #bbf1gia1bhi ,less paid from other income #ed1hcb1gdb #aga1ieh1edg ------------- ,dividends on other securities #gfi1bbb ,additions and betterments charged to income #bd1hjg1edf ,appropriations to reserves #af1ihd1ddg ,miscellaneous #e1fjb1gfa ,deficits of weak lines #d1iif1aie ,surplus available for adjust- ments and improvements #aac1bje1jhh #gbd1dhc1afc ---------------------------------------- ----------------------------- ,this table shows the actual disposition made of the net income from operation of the roads reporting to this ,bureau1 representing #ig of the railway business of the ,united ,states1 except that #abj1ghd1ihb of the income from other sources has been eliminated from the account and applied to offset the rental paid by the reporting roads4 ,it will be observed that the gross dividends declared were only #bbf1gia1bhi1 which is #c4fd on the par value of the stock of the #cfh reporting companies4 ,,misrepresentations ,,as ,,to ,,dividends4 ,the discrepancy between this condition and the official statement as to dividends declared in #aijh calls for an analysis of the latter4 ,this reads1 ,the amount of dividends declared during the year 7#aijh7 was #chf1hgi1cfb1 being equivalent to #g4ii on dividend-paying stock4 ,for the year ending ,june #cj1 #aijg1 the amount of dividends declared was #cjh1jhh1jbg4 ,two income accounts--one of operating roads and the other of leased roads--for the year ending ,june #cj1 #aijh1 give a clew as to how the ,official ,statistician more than doubles the dividends actually paid out of transportation revenues4 ,the gross total is made up of these four items3 ,operating roads3 ,dividends declared from current income #bga1cbh1dec ,dividends declared out of surplus #eg1gcc1hjh ,leased roads3 ,dividends declared from current income #cc1hdc1egg ,dividends declared out of surplus #bg1eej1eif ------------- ,total #cij1def1dcd ---------------------------------------- ------------------------ ,as these income accounts show that the operating companies received #bhj1dbg1dfj other income from outside operations and sources other than transportation1 and the leased roads received #aaa1aec1jac income from lease of road1 the source of the major part of this fictitious dividend is revealed4 ,the #bhj1dbg1dfj from other sources would pay the entire income of the leased roads and leave nearly #agj1jjj1jjj to extinguish so much of the dividends declared by the operating roads4 ,modified as to details1 this is what actually occurs every year4 ,in the year #aijh the total amount paid out of transportation revenues on account of capital of the #ig of the railways of the ,united ,states reporting to this ,bureau was represented in the sums3 ,net interest on funded debt #bhb1ced1jjj ,interest on current liabilities #ca1hce1gjh ,rent paid for lease of roads #aac1ebi1bfa ,net dividends #ajd1jgd1jjf ------------- ,total #eca1gib1ige ---------------------------------------- ------------------------ ,this total was equivalent to #d4ae on the net capitalization of the roads represented4 ,the rental paid the lessor roads constituted the fund from which those roads paid their interest and dividends4 ,further remark on the misleading and harmful statement of the ,official ,statistician as to dividends declared in #aijh is unnecessary4 ,v ,,cost ,,of ,,construction ,incomplete as are the figures of the cost of the railways of the ,united ,states1 and exclusive as they are of the millions put back into the properties out of income for additions1 betterments and reconstruction in the process of operation1 yet the statistics of the cost of construction and equipment afford a complete answer to all charges that ,american railways are over-capitalized4 ,upon the question of the cost of road and equipment in #aiji1 the returns of the #cfh roads reporting to this ,bureau furnish the following data3 ,,summary ,,of ,,cost ,,of ,,road ,,and ,,equipment ,,covering #bba1acb ,,miles ,,of ,,operated ,,line ,,for #aiji4 ,item ,amount ---------------------------------------- ----------------------------- ,cost of road 7#ahb1jdf miles owned7 #f1fjc1ejd1dfc ,cost of equipment #a1abb1dji1hac ,undistributed cost of road and equipment #c1jhj1jfd1ifj ,cost of #ci1jhf miles leased lines rental capitalized #b1dae1fii1hgf ---------------- ,total #ac1bbj1fgh1hgf ---------------------------------------- ----------------------------- ,adding to this #bij1gej1jjj to represent the #aa1hgj miles of road not reporting to this ,bureau at #be1jjj per mile1 we obtain #ac1dag1dch1hgf as the cost of road and equipment of the #bcc1jjb miles of line employed in the transportation industry of the ,united ,states in #aiji1 or #eh1jca per mile of line4 ,this is an underestimate by reason of the failure of a few lines to furnish even approximate figures on the accumulated cost of their properties4 ,averaging the cost of locomotives at #ae1jjj1 of passenger cars at #f1jjj1 of freight cars at #hjj1 and of company's cars at #ejj apiece--their present cost rates much higher--the equipment of ,american railways represents an investment of over #c1jjj1jjj1jjj1 and its bare maintenance alone involves an expenditure of nearly #djj1jjj1jjj annually4 ,,physical ,,valuation ,,of ,,the ,,railways4 ,it is worthy of passing note that just as the railway companies have shown their indifference to a physical valuation of their property1 the clamor of regulators and agitators in its favor has subsided4 ,the proposal lost its attractiveness to them the moment they became convinced that such an investigation would put a valuation on the roads so high as to take not only the wind out of their sails but the last drop of water out of their mouths4 ,to-day the only insistent demand for this futile undertaking comes from quarters interested in the distribution of the appropriation of several millions it would cost4 ,credit for the reversal in the popular and political attitude on this subject is largely due to the valuations attempted by the states of ,minnesota1 ,washington and ,wisconsin4 ,the results in these states may be briefly summarized as follows3 ,miles ,capitalization ,valuation by of ,line per ,mile ,state1 per ,mile ---------------------------------------- ---------------------------- ,minnesota1 #aijg #g1eif #dd1bjf #ed1bja ,washington1 #aijh3 ,great ,northern #hjf #dd1jgh #gc1ijj ,northern ,pacific #idb #gj1bgh #ajf1ejj ,oregon ,r4 ,r4 ,navigation ,co #eja #dc1jab #ch1ijj ,wisconsin1 #aijf #g1ace #cc1dbd #cd1fcj ---------------------------------------- ---------------------------- ,even ,senator ,albert ,b4 ,cummins of ,iowa has seen such a bright light on this subject that in his speech before the ,traffic ,club of ,chicago last ,february he said that he would not be willing to make a present valuation of railroad property a basis for determining rates1 for the reason that it was more than probable that the present capitalization of between fifteen and sixteen billions would be increased to twenty billions4 ,in the ,bureau's ,statistics for #aijh it was said3 ,if the valuations in ,minnesota and ,washington1 made by none too friendly commissions1 are any criterions of what a national valuation made under presumably unbiased federal authority would be1 the present cost to reproduce the railways of the ,united ,states would be nearer #bj1jjj1jjj1jjj than any sum within the anticipations of those agitating for such valuation4 ,,capitalization ,,of ,,foreign ,,railways4 ,with both sides of the balance sheet testifying to a capital investment in ,american railways of under #fj1jjj1 and official valuation abandoned because it would demonstrate that they could not be reproduced for less than #hj1jjj per mile1 the reader is asked to compare the ,american figures with those of the capitalization1 or cost of construction1 of the principal foreign countries set forth below4 ,these have been compiled from the latest available official returns4 ,,summary ,,of ,,railway ,,capitalization ,,of ,,the ,,principal ,,foreign ,,railways ,,from ,,latest ,,data4 ,year ,country ,miles of ,capital or ,cost ,per ,line of ,construction ,mile ---------------------------------------- ----------------------------- ,europe3 #aijh ,united ,kingdom #bc1bje #f1chb1bif1gdb #bge1jdj #aijh ,germany #ce1eeh #c1ijc1hdh1djj #aji1ghh #aijg ,russia in ,europe 7excl- usive of ,finland7 #cb1ijj 7a7#c1agj1hgf1cfj #hj1ihe #aijg ,france 7b7#bd1gcj #c1ddg1cff1jjj #aci1cij #aijg ,austria #ac1dbg #a1eae1egf1hhe #aab1hgi #aijg ,hungary #aa1gfi #gda1ehf1cia #fc1jaj #aijg-h ,italy 7,state roads only7 #h1fii #a1jhf1jjj1jjj #abd1gcj #aije ,spain 7#ac roads7 #f1hdj #ehc1fcb1jjj #he1cbg #aijf ,sweden #g1ich #beg1djh1dej #cb1dbg #aijg ,belgium 7,state only7 #b1ecg #dcj1hjj1jjj #afi1hjf #aijg ,switzerland #b1gdj #bih1gji1baj #aji1jjj ,other ,countries3 #aiji ,canada #bd1ajd #a1fjh1iij1fef #ff1geb #aijh ,british ,india #cj1egf #a1cfd1ffi1cge #dd1fcb #aijg ,argentine ,republic #ac1fij #hbj1dcc1gif #ei1icj #aijh ,japan #d1ddd #aij1agc1gbh #db1hjj #aiji ,united ,states of ,america #bcc1jjb #ac1ejh1gaa1agc #eg1igf ---------------------------------------- ----------------------------- 7a7 ,russian capitalization1 including railways in ,asia1 covers a total of #ci1bgg miles1 from which the capital per mile is computed4 7b7 ,this is exclusive of #d1bei miles of local interest4 ,the most striking feature in this table is the steady advance it shows in the capital cost of ,german railways4 ,in ten years this has increased from #bea1eig marks per kilometer in #ahih to #bhc1fjh in #aijh1 i4 e4 #ca1gca marks per kilometer or #ab1bhb per mile4 ,this means an increase of #iia1fhg1ddj in capital cost for an increase of only #e1ebe miles of line4 ,,vi ,,ownership ,,of ,,american ,,railways ,returns to this ,bureau place the number of stockholders of record at the date of the last election of directors prior to ,june #cj1 #aiji1 of the #cfh roads reporting at #cbj1fif4 ,as only #ahb1jdf of the #bba1acb miles operated by these roads was covered by the capital stock1 this would show #a stockholders for each mile of road and would indicate that there are at least #dae1jjj stockholders in all the railways of the ,united ,states4 ,owing to the incompleteness of the returns on this subject and the fact that large blocks of stock are held in the names of associations and trustees1 it is safe to estimate that the actual ownership of railway stock is distributed among at least #ddj1jjj persons4 ,in #aije the ,commission reported the number of stockholders of record prior to ,june #cj1 #aijd1 as #cbg1hea1 but has given no later figures4 ,it may be of interest to compare these figures with the partial reports to this ,bureau since then4 ,year ,number ,number of ,reporting ,stockholders ---------------------------------------- ---------- #aijd #a1ahb roads #cbg1hea #aijf #bhd #bbf1ihf #aijg #cag #bdj1eed #aijh #cae #cae1gbg #aiji #cdj #cbj1fif ---------------------------------------- ---------- ,if the ownership of railway bonds1 which is even more widely distributed than that of stocks1 could be traced1 it would be found that over a million investors are interested in the financial welfare of the railways4 ,this would give to each an interest of #ac1jjj1 from which the average income is not over #ebj a year4 ,the attempt of the ,commission in #aijh to secure evidence that the control of the railways was concentrated in a few hands by calling for a statement of the ten largest holders of voting securities of the reporting companies having established that nowhere did they own a majority or an approach to a majority of the controlling stock1 inquiry along that line was dropped in #aiji4 ,in railways1 as in any republic1 the latent power is widely distributed among the many1 while the administrative responsibility is necessarily entrusted to the few4 ,,vii ,,public ,,service ,,of ,,the ,,railways ,it is the reproach of our system of government statistics of railways that their first concern is financial results1 which the government takes no thought to improve1 and the harrowing roll of accidents1 and not the adequacy of the service and the steady development of the means of transportation4 ,every month1 almost every week1 the public is informed of the volume of traffic1 and every quarter the record of casualties is told in sensational head lines4 ,it is left for belated annual reports to record the public service of this great industry upon whose progressive efficiency every other industry in the ,united ,states depends4 ,it is not upon what the railways earn1 but upon what they ,,do that the whole industrial fabric of the republic rests4 ,it is not upon the dividends they pay but upon the traffic they carry1 the net income withheld from dividends and put into improvements1 that their success as carriers depends4 ,,the ,,passenger ,,traffic4 ,in considering the public service of the railways it is customary to give first attention to the passenger traffic4 ,this is not because it is the most important branch of the service but because passengers are numbered by millions1 where thousands suffice in the enumeration of the shippers1 who frequently mistake themselves for the entire ,american people4 ,in twenty years between ,june #a1 #ahhi1 and ,june #a1 #aiji1 the population of the ,united ,states increased from #fa1bhi1jjj to #hh1hjf1jjj1 or nearly #de4 ,in the meantime the passenger cars provided by the railways increased from #bd1ehf to #df1jbf1 or over #hg4 ,but this does not measure the liberal provision made by the railway for the travelling public1 which is more fully and accurately expressed by the amazing growth of the number of passengers carried one mile from #aa1eec1hbj1dde in #ahhi to approximately #bi1deb1jjj1jjj in #aiji1 or nearly #aee4 ,here is shown an increase of cars not far short of double the increase in population and an increase in passengers carried proportionately greater than the numerical increase in cars4 ,in the meantime the average receipts of the traffic have declined from #b4afe cents per passenger mile in #ahhi to #a4iaf in #aiji--;a decline of over #aa1 although every item involved in the service1 locomotives1 cars1 track1 stations1 labor1 etc41 cost more4 ,the passenger service1 except as precursor to the freight service1 and in certain densely populated sections1 was unremunerative in #ahhi and is more so now4 ,it is maintained at the expense of the freight service by what the ,railroad ,commission of ,wisconsin has characterized as a species of piracy practiced upon the shippers of freight4 ,the salient features of the passenger service reported to this ,bureau for the year #aiji1 as compared with the final official returns for the preceding year1 are shown in the following statement3 ,item ,bureau ,figures ,official ,figures #aiji #aijh ---------------------------------------- ------------------------------ ,miles of line represented #bba1acb #bcj1did ,passengers carried4 #hed1bee1ccg #hij1jji1egd ,passengers carried #a mile #bh1ghh1hee1jjj #bi1jhb1hcf1idd ,passenger revenue #eea1fcd1bgh #eff1hcb1gdf ,mileage of passenger trains #dia1ijc1ajg #eje1ide1ehb ,average number of passengers in train #eh #ed ,average cars to a train #e4c ,passenger car miles #b1eid1ejh1ihg #b1gje1fei1iid ,average passenger journey 7miles7 #cc4ga #cb4ff ,average receipts per passenger mile 7cents7 #a4iaf #a4icg ---------------------------------------- ------------------------------ ,according to the monthly reports to the ,interstate ,commerce ,commission covering an average of #bcc1jjb miles of line1 the passenger revenues in #aiji were #efd1cjb1ehj1 or #a1idc1jgg less than the above revenues for only #bbh1afd miles of line in #aijh4 ,the average receipts per passenger mile in #aiji are the lowest ever reported for ,american railways4 ,taken in connection with the official returns covering the period since #aijj1 the above figures afford evidence of the confiscatory effect of the #b-;cent passenger laws on railway revenues1 as appears from the following statement3 ,,summary ,,of ,,passenger ,,mileage1 ,,revenue ,,and ,,receipts ,,per ,,passenger ,,mile1 #aijj ,,to #aiji4 ,increase ,passengers ,over ,receipts ,year ,carried ,preceding ,passenger per ,one ,mile ,year ,revenue ,passenger 7,per ,cent7 ,mile ---------------------------------------- ----------------------- #aijj #af1jch1jgf1bjj #cbc1gae1fci #b4jjc #aija #ag1cec1ehh1ddd #h4b #cea1cef1bfe #b4jac #aijb #ai1fhi1icg1fbj #ac4d #cib1ifc1bdh #a4ihf #aijc #bj1iae1gfc1hha #f4b #dba1gjd1eib #b4jjf #aijd #ba1ibc1bac1ecf #d4h #ddd1cbf1iia #b4jjf #aije #bc1hjj1adi1dcf #h4f #dgb1fid1gcb #a4ifb #aijf #be1afg1bdj1hca #e4g #eaj1jcb1ehc #b4jjc #aijg #bg1gah1eed1jcj #aj4a #efd1fjf1cdc #b4jad #aijh #bi1jhb1hcf1idd #d4i #eff1bde1feg #a4icg #aiji #bi1deb1jjj1jjj #a4c #efd1cjb1ehj #a4iaf ,increase1 per cent #hc4g -- #gd4f -- ---------------------------------------- ----------------------- ,here it is shown that the passenger service rendered has increased #ab more than the passenger revenues4 ,but more significant than this is the column of yearly increases in service by percentages4 ,this utterly explodes the theory that passenger travel is greatly stimulated by low fares--aside from some positive incentive to increased travel1 such as periodical expositions1 the ,louisiana ,purchase ,exposition for instance1 the effect of which is clearly traceable in the increased service in #aije1 which includes the heavy travel during the months of heavy attendance1 ,july #a to ,december #a1 #aijd4 ,the #b-;cent passenger laws were passed so as to become generally effective ,july #a1 #aijg1 and their effect on passenger receipts during the following year was such that these receipts were actually less in #aiji than in #aijg1 although the service performed by the railways was over #f greater4 ,had the railways received the same rate in #aiji that they did in #aijg their revenue from passengers would have been nearly #bi1jjj1jjj more than it was4 ,,passenger ,,traffic #aiji-ahhh4 ,in the next statement the salient facts in regard to the passenger traffic since the ,commission began collecting the data is passed under review4 ,average ,passengers,passengers,mileage,average ,average,pass4 ,receipts ,year ,carried ,carried ,pass4 ,pass4 ,journey,revenue per 7,millions7 ,one ,mile ,trainsin ,train ,miles 7,mill47,pass4 7,millions77,mill47 ,mile 7,cents7 ---------------------------------------- ---------------------- #aiji #hhh #bi1deb #ejg #eh #cc #ejd #a4iaf #aijh #hij #bi1jhb #ejj #ei #cc #eff #a4icg #aijg #hgc #bg1gah #eji #ea #cb #efd #b4jad #aijf #gig #be1afg #dgi #di #ca #eaj #b4jjc #aije #gch #bc1hjj #dei #dh #cb #dgb #a4ifb #aijd #gae #ba1ibc #ddj #df #ca #ddd #b4jjf #aijc #fid #bj1iae #dbe #df #cj #dba #b4jjf #aijb #fdi #ai1fhi #dje #de #cj #cib #a4ihf #aija #fjg #ag1cec #che #db #bi #cea #b4jac #aijj #egf #af1jch #cfc #da #bh #cbc #b4jjc #ahii #ebc #ad1eia #cdg #da #bh #bia #a4igh #ahih #eja #ac1cgi #ccd #ci #bg #bfg #a4igc #ahig #dhi #ab1bef #cce #cg #be #bea #b4jbb #ahif #eaa #ac1jdi #ccb #ci #bf #bff #b4jai #ahie #ejg #ab1ahh #cag #ch #bd #beb #b4jdj #ahid #edj #ad1bhi #cbf #dd #bf #bhe #a4ihf #ahic #eic #ad1bbi #cce #db #bd #cja #b4ajh #ahib #efj #ac1cfb #cag #db #bd #bhf #b4abf #ahia #eca #ab1hdd #cjh #db #bd #bha #b4adb #ahij #dib #aa1hdg #bhe #da #bd #bfj #b4afg #ahhi #dgb #aa1eec #bgg #db #be #bed #b4aii #ahhh #dab #aj1aja #beb #dj #bd #bcg #b4cdi ---------------------------------------- ---------------------- ,increase #ahhh to #aijg #aae #aia #aja #de #ch #ach ,decrease #ah4d ---------------------------------------- ---------------------- ,the several increases shown in the first1 second1 third and sixth columns of the table reflect the general advancement in passenger traffic4 ,that of #de in the average passengers to a train marks the progress in density of that traffic which may eventually place it on a profitable basis4 ,in ,massachusetts1 where this density yields an average of #gi passengers to a train there is no demand for a two-cent rate statute1 for the conditions have made a rate of #a4fd cents profitable4 ,in the group of states consisting of ,ohio1 ,indiana1 ,michigan1 ,illinois1 ,iowa1 ,wisconsin and ,minnesota1 where the density of traffic yields only #df passengers by train1 a statutory two-cent fare becomes confiscatory because it costs at least one dollar to operate a passenger train one mile and #df times two cents is only #ib cents4 ,moreover the #df passengers per train is only an average and there are as many trains that average less as more4 ,the average has to be raised above #ej to yield any margin of profit on passenger traffic4 ,if it were not for the density of traffic in the ,new ,england and ,north ,atlantic group of states the average for the entire ,united ,states would be well below #df passengers per train4 ,the steady increase in the distance traveled per passenger reflects the effect of trolley competition in diverting the short haul passenger traffic4 ,the most noteworthy feature of the seventh column is the decline of #ih_/ajjjths of a cent in the average receipts per passenger mile between #aijg and #aiji1 making a new low record after hovering around the two cent mark for fourteen years4 ,as noted above1 this reduction in the average cost the railways nearly #bi1jjj1jjj on the passenger traffic of #aiji4 ,in this connection it is interesting to recall that between #ahhh and #ahic the ,official ,statistician1 then as now ,professor ,adams1 made the following computation of the average cost of carrying one passenger one mile for the whole ,united ,states3 #ahhh #ahhi #ahij #ahia #ahib #ahic ---------------------------------------- ------------------------ ,average cost of carrying a passenger one mile1 cents #b4jdb #a4iic #a4iag #a4iaj #a4ici #a4iee ---------------------------------------- ------------------------ ,it will be observed that the average receipts per passenger mile in #aiji are below the computed cost in every one of the years above named1 except #ahia4 ,when the advance in the cost of everything necessary to the service--track1 labor1 equipment1 conveniences1 speed1 terminal facilities--is considered1 the practical coincidence of average cost and receipts leaves no margin for legitimate profits4 ,,receipts ,,from ,,mail ,,and ,,express4 ,closely associated with the passenger traffic of the railways are the mail and express services4 ,although principally carried by passenger trains1 each has a special service of its own by mail and express trains4 ,but all are included under the passenger service4 ,the receipts from these two branches of the service during the last decade are shown in the following statement3 ,,summary ,,of ,,receipts ,,from ,,mail ,,and ,,express1 #ahii ,,to #aijh4 ,mail ,express ---------------------------------------- - ,year ,revenues ,percent- ,revenues ,percent- age of age of ,earnings ,earnings ---------------------------------------- -------------------- #ahii #ce1iii1jaa #b4gd #bf1gef1jed #b4jd #aijj #cg1geb1dgd #b4ed #bh1daf1aej #a4ia #aija #ch1dec1fjb #b4db #ca1aba1fac #a4if #aijb #ci1ifc1bdh #b4ca #cd1bec1dei #b4jg #aijc #da1gji1cif #b4ai #ch1cca1ifd #a4ih #aijd #dd1dii1gcb #b4be #da1hge1fcf #b4ab #aije #de1dbf1abe #b4ah #de1adi1aee #b4ag #aijf #dg1cga1dec #b4jd #ea1jaj1icj #b4ai #aijg #ej1cgh1ifd #a4id #eg1ccb1ica #b4ba #aijh #dh1eag1efc #b4jc #eh1fjb1jia #b4de #aiji #ej1ice1jjj #b4jh #fc1ffi1jjj #b4fj ,increase1 per cent #da4e -- #ach4j -- ---------------------------------------- -------------------- ,aside from the striking contrast in the percentages of increase of revenues from these two sources1 the most significant feature of this table is the reversal it shows in their respective importance from the railway revenue point of view4 ,prior to #aije1 carrying the mails brought larger1 if not more profitable1 returns to the railways4 ,since then the returns from express have increased so much more rapidly that they are now nearly #bc more than those from mails4 ,if proof were needed of the absolute falsity of the charge that the railways are receiving an exorbitant rate for carrying mail1 the above table of their receipts from the service in connection with the following statement of mail handled and revenues in view of the finding of the ,joint ,commission of ,congress in #ahii would furnish it4 ,after a thorough investigation of the subject lasting from ,august1 #ahih1 to ,july1 #aijj1 the ,commission came to the following conclusion3 ,upon a careful consideration of all the evidence and the statements and arguments submitted1 and in view of all the services rendered by the railroads1 we are of the opinion that the prices now paid to the railroad companies for the transportation of the mails are not excessive1 and recommend that no reduction thereof be made at this time4 ,the increase in the railroad service since this report was made is shown in the following statement of miles of mail transportation by railroads1 the postal revenues and the number of clerks in the railway mail service since #ahii3 ,annual ,transportation ,number of of ,mail ,postal ,railway by ,railroads ,revenues ,mail 7,miles7 ,clerks ---------------------------------------- --------------------------- #ahii #bhg1eia1bfi #ie1jba1chd #h1chh #aijj #big1bef1cjc #ajb1ced1egi #h1fie #aija #cjb1fac1cbe #aaa1fca1aic #i1aje #aijb #cab1eba1dgh #aba1hdh1jdg #i1fbg #aijc #ccc1dia1fhd #acd1bbd1ddc #aj1dah #aijd #cec1jch1cig #adc1ehb1fbd #aa1fba #aije #cfb1fde1gca #aeb1hbf1ehe #ab1dgd #aijf #cga1ffa1jga #afg1icb1ghc #ac1eih #aijg #chg1eeg1afe #ahc1ehe1jjf #ad1ceg #aijh #djg1gii1jci #aia1dgh1ffc #ae1bie #aiji #bjc1efb1chc #ae1hff ,increase in #aj years1 per cent #ej4e #abd4g #hi4a ---------------------------------------- --------------------------- ,compared with the increase of only #da4e in the revenues from mail received by the railways during the same period1 each one of the above percentages testifies to a positive reduction in the rate received by the railways for the service4 ,and if the increase in weight of mail carried in #aiji were known1 the contrast between the service and the pay would be more striking4 ,in #ahii the total weight of all mail was reported as #fce1ahj1cfb pounds4 ,in #aijg the estimates made from the special weighing placed the weight of mail carried that year at #a1bij1ceh1bhd pounds1 or an increase of nearly #aje in eight years4 ,by reference to the above table it will be seen that the railway revenues from mail between #ahii and #aijg increased only #dj4 ,the contrast is illuminating4 ,in its light the charge that the railways are in any way responsible for the postal deficit is grotesque4 ,,freight ,,traffic ,according to the monthly returns to the ,interstate ,commerce ,commission1 the proportion of revenues from freight of the railways of the ,united ,states to total earnings from operation1 for the years #aijh and #aiji1 receded to the unusually low figures of #fh4ea and #fh4hh respectively4 ,the official summary for #aijh1 based on the annual returns1 shows a proportion of #fi4ag for that year1 which probably is nearer the mark4 ,the annual reports to this ,bureau for #aiji yield a proportion of #fi4ah for last year4 ,accepting this proportion taken from the annual returns as being based on the same character of reports as those from which former ratios were derived1 the preponderance of freight traffic is shown in bold relief in the following statement of the ratio of its revenues to total earnings from operation1 #ahii to #aiji3 ,proportion of ,freight ,revenues ,year to ,total ,earnings ---------------------------- #ahii #fi4ee #aijj #gj4ef #aija #gj4da #aijb #fi4ic #aijc #gj4ci #aijd #fi4hb #aije #fi4fg #aijf #gj4ed #aijg #gj4dd #aijh #fi4ag #aiji #fi4ah ---------------------------- ,the average proportion for the nine years preceding #aijh is seen to be slightly above #gj1 and the fact that it was almost one point below #gj in #aijh and #aiji indicates that it was the freight traffic that bore the brunt of the business depression which curtailed railway revenues during those years4 ,in no other of the leading countries of the world does the freight traffic assume the overwhelming relative proportion that it does in the ,united ,states4 ,in the ,united ,kingdom it amounts to #ej4ce2 in ,france to #ec4fd2 and in ,germany1 including express and mail1 to #fe4 ,if these were classed with freight in the ,united ,states1 it would raise the proportion for that traffic here to over #gd4 ,,freight ,,traffic #aiji ,,and #aijh4 ,the next statement presents the significant items of the freight traffic in #aiji for the roads reporting to this ,bureau compared with those of the final official returns for the preceding year4 ,item #aiji #aijh ,bureau ,figures ,official ,figures ---------------------------------------- ------------------------- ,miles operated #bba1acb #bcj1did ,number of tons carried #a1dda1jab1dbf #a1ecb1iha1gij ,tons carried #a mile #bag1gef1ggf1jjj #bah1cha1eed1hjb ,freight revenue #a1fdc1jbh1efd #a1fee1dai1ajh ,mileage of freight trains #efj1fjb1eeg #ehg1bah1ded ,number of cars in train #bi4g #bh4c ,average number of tons in train #chh #cea4hj ,average haul per ton 7miles7 #aea4a #adc4hc ,average receipts per ton mile 7mills7 #g4ed #g4ed ---------------------------------------- ------------------------- ,experience has shown that in comparing these statements of averages for passenger and freight traffic1 allowance has to be made for the fact that the ,bureau's figures include all the great systems and are exclusive of some #ac1jjj miles of minor lines4 ,it is difficult to estimate the effect of these discrepancies with anything like exactness4 ,but complete returns invariably show a shorter mean haul and journey for the entire country than the ,bureau's figures indicate and also a less train load of passengers and freight1 the result being a slightly higher average for passenger and freight ton receipts per mile4 ,last year from its returns the ,bureau computed the passenger mile receipts at #a4icc cents and the ton mile receipts at #g4ec mills4 ,the ,commission's final figures were #a4icg cents and #g4ed mills respectively4 ,,freight ,,traffic #aiji ,,to #ahhh4 ,in the next summary is presented a condensed statement of the significant data relating to the freight traffic for the twenty-two years that the ,commission has been compiling statistics4 ,,summary ,,of ,,tons ,,carried1 ,,ton ,,mileage1 ,,mileage ,,of ,,freight ,,trains1 ,,average ,,tons ,,in ,,train1 ,,freight ,,revenues ,,and ,,average ,,receipts ,,per ,,ton ,,mile4 ,tons ,mileage ,average ,receipts ,tons ,carried ,freight ,average,haul per,freight per ,ton ,year ,carried ,one ,mile ,trains ,tons in ,ton ,revenue ,mile 7,millions77,millions77,mill47 ,train 7,miles7 7,mill47 7,cents7 ---------------------------------------- ------------------------ #aiji 7a7#a1dhf #bbb1ijj #egi #chh #aea #a1fhb 4#gee #aijh #a1ecb #bah1cha #eig #cfj #adc #a1fee 4#ged #aijg #a1gif #bcf1fja #fbi #ceg #aca #a1hbc 4#gei #aijf #a1fca #bae1hgg #eid #cdd #acb #a1fdj 4#gdh #aije #a1dbg #ahf1dfc #edf #cbb #acj #a1dej 4#gff #aijd #a1cji #agd1ebb #ece #cjg #acc #a1cgi 4#ghj #aijc #a1cjd #agc1bba #ebf #caj #acb #a1cch 4#gfc #aijb #a1bjj #aeg1bhi #dii #bif #aca #a1bjg 4#geg #aija #a1jhi #adg1jgg #dia #bha #ace #a1aah 4#gej #aijj #a1jha #ada1eif #dib #bgj #acj #a1jdi 4#gbi #ahii #idc #abc1ffg 7b7#ejg #bdc #aca #iac 4#gbd #ahih #hfc #aad1jgg #ejc #bbf #acb #hgf 4#gec #ahig #gbh #ie1aci #dfd #bjd #acj #ggb 4#gih #ahif #gfe #ie1cbh #dgi #aih #abd #ghf 4#hjf #ahie #fif #he1bbg #ddi #ahi #abb #gbi 4#hci #ahid #fch #hj1cce #ddf #agi #abe #fii 4#hfj #ahic #gde #ic1ehh #ejh #ahc #abe #hbi 4#hgh #ahib #gjf #hh1bda #dhe #aha #abd #gii 4#hih #ahia #fge #ha1jgc #ddf #aha #abj #gcf 4#hie #ahij #fcf #gf1bjg #dce #age #aai #gad 4#ida #ahhi #eci #fh1gbg #chc #agi #abg #fdd 4#ibb #ahhh #dhj #fa1cbi #cdh #agf #abh #fac #a4jja ---------------------------------------- ------------------- ,increase #ahhh to #aiji #bji #bfc #ff #abj #ah #agd ,decrease #bd4j ---------------------------------------- ------------------------- 7a7 ,figures for #aiji computed on basis of returns to this ,bureau4 7b7 ,includes #ge of mixed train mileage1 that being the practice prior to #aijj4 ,mark the one column which shows a decrease4 ,this means a remission of almost exactly a quarter of a cent per ton mile in the average receipts from freight4 ,on the tonnage carried in #aiji it meant a saving of over #edj1jjj1jjj to the shippers4 ,in the presence of the present high price of everything carried by the railways1 there is no ground for assuming that any portion of this half billion dollars withheld from the railways ever reached the ultimate consumer4 ,on the contrary the presumption is unavoidable that it has been absorbed by the shippers and consignors1 whose profits are greater than ever4 ,,proportion ,,of ,,commodities ,,moved #ahii-aiji4 ,referring to the movement of different classes of commodities in his report for #aijd1 the ,official ,statistician said3 ,a slight change in the ratio of freight carried for any one of the classes named may have decided results1 not only upon the earnings of the roads1 but upon the average rate per ton mile4 ,but without knowing the length of the haul of the respective classes1 any estimate of the effect of such variation must be largely speculative4 ,in #aiji1 for the first time the ,bureau undertook to collect the information as to the tonnage of the main divisions of commodities carried4 ,its inquiries were limited to the tonnage originating on the several roads1 and the next statement presents the results in comparison with the official figures for #aijg1 which are the last available3 ,,tonnage ,,and ,,proportion ,,of ,,different ,,classes ,,of ,,commodities ,,moved #aiji ,,and #aijg4 #aiji #aijg ---------------------------------------- ---- ,class of ,commodity ,tonnage ,tonnage ,reported as ,per ,cent ,reported as ,per ,cent ,originating of ,originating of on ,line ,aggregate on ,line ,aggregate ---------------------------------------- --------------------------- ,products of agriculture #gf1iee1aca #i4di #gg1jcj1jga #h4fb ,products of animals #ba1hjg1dhf #b4fi #bj1dgc1dhf #b4bi ,products of mines #ddi1ich1bdh #ee4ej #dgf1hii1fch #ec4ci ,products of forests #hc1fgi1agi #aj4cc #aja1fag1gbd #aa4ch ,manufactures #aji1fbe1ffi #ac4eb #acg1fba1ddc #ae4da ,merchandise #ce1ejj1hcc #d4ch #cd1gah1dhg #c4hi ,miscellaneous #cc1cah1bgb #d4ji #dd1hbd1abc #e4jb ---------------------------------------- ---- ,total #haj1ghd1hah #ajj4jj #hic1ahd1igb #ajj4jj ---------------------------------------- --------------------------- ,,note4--,these tables fail to include nearly #bjj1jjj1jjj tons unassigned4 ,the most significant feature of this statement is the marked decrease1 absolutely and relatively1 in the tonnage of manufactures carried4 ,great as was the decrease in the tonnage of animals carried there was an increase relatively4 ,the next statement shows the percentages of commodity tonnage moved since the ,commission has compiled the information divided between low and high rate freight4 ,,summary ,,showing ,,percentage ,,of ,,freight ,,traffic ,,movement ,,by ,,classes ,,of ,,commodities1 #aijg ,,to #ahii4 ,table headings3 ,col ,a3 ,products of ,agriculture ,col ,b3 ,animals ,col ,c3 ,mines ,col ,d3 ,forest ,col ,e3 ,total ,col ,f3 ,manufactures ,col ,g3 ,merchandise ,col ,h3 ,miscellaneous ,col ,i3 ,total ,low ,rate ,freight ,high ,rate ,freight ,percentage of ,aggregate ,percentage of ,aggregate ,year ---------------------------------------- ------------------- ,a ,b ,c ,d ,e ,f ,g ,h ,i ---------------------------------------- ------------------------ #ahii #aa4cc #c4ab #ea4dg #aj4hi #gf4ha #ac4de #d4di #e4be #bc4ai #aijj #aj4ce #b4hg #eb4ei #aa4fa #gg4db #ac4da #d4bf #d4ia #bb4eh #aija #aj4gf #b4ia #ea4fg #aa4fg #gg4ja #ac4ge #d4af #e4jh #bb4ii #aijb #i4bc #b4fd #eb4cf #aa4fd #ge4hg #ad4di #d4cg #e4bg #bd4ac #aijc #i4ef #b4fc #ea4ef #aa4fg #ge4db #ad4ci #d4fi #e4ej #bd4eh #aijd #i4ei #b4gd #ea4ef #ab4ec #gf4db #ac4da #d4hc #e4cd #bc4eh #aije #i4jc #b4ed #ec4ei #aa4bd #gf4dj #ac4fj #d4cb #e4fh #bc4fj #aijf #h4ef #b4cb #ec4ji #aa4bd #ge4ba #ad4ha #d4jf #e4ib #bd4gi #aijg #h4fb #b4bi #ec4ci #aa4ch #ge4fh #ae4da #c4hi #e4jb #bd4cb #aijh #h4gd #b4df #ee4gb #aa4ce #gh4bg #ac4ae #d4jd #d4ed #ba4gc #aiji #i4di #b4fi #ee4ej #aj4cc #gh4ja #ac4eb #d4ch #d4ji #ba4ii ---------------------------------------- ------------------------ ,it will be observed that the percentage of low rate freight carried in #aiji was greater than for any other year covered by these statistics4 ,this was due more to the falling off in manufactures and miscellaneous freight than to any increased movement of low class freight4 ,,car ,,service ,,operations4 ,what the ,department of ,commerce and ,labor calls a convenient index to the traffic activities of the country is found in the following comparative statement of cars handled by the various car service associations and demurrage bureaus1 #aije-aiji4 ,,number ,,of ,,cars ,,handled ,,by #cf ,,car ,,service ,,associations ,,and ,,demurrage ,,bureaus ,,during ,,twelve ,,months ,,ending ,,december1 #aije-aiji4 ,twelve ,months ,ending ,december ----------------------------------- ,names of ,associations and ,bureaus #aije #aijf #aijg ---------------------------------------- --------------------- ,alabama #geb1ihb #gdd1edh #ggi1djb ,central ,new ,york #faa1fja #fed1hfa #gec1bfi ,central 7,st4 ,louis7 #hfc1ghh #ijh1jif #iai1acj ,chicago #b1aff1iaj #b1bea1gfc #b1bhb1aia ,cincinnati #fge1aag #gdh1gfc #gga1iij ,cleveland 7a7 #fdj1cfd #gif1fhg #a1jaf1jjc ,colorado #dbe1adj #dee1edj #dde1ijj ,columbus #cid1aeb #ddc1fch #dfi1ggc ,east ,tennessee #cbj1hee #ceh1gcc #chh1jff ,indiana #iab1hbg #ifb1ida #a1ajd1hee ,intermountain #aaf1ecc #aeh1bca #ahd1egg ,lake ,superior #ccb1fcc #cga1cab #dae1fdb ,louisville ,car #die1jie #eda1ide #ejf1ebh ,memphis #bce1efi #beh1caf #bee1afi ,michigan #fhg1dbh #gff1iej #hch1ibh ,missabe ,range #cj1bda #cg1fac #db1ghf ,missouri ,valley #a1ech1jhg #a1ffe1hhb #a1iaj1aci ,nashville #cjj1fjb #ccf1aaj #cea1egb ,new ,york and ,new ,jersey #iig1cjd #a1ajj1jfg #a1dji1afa ,north ,carolina #ceg1dgd #cgd1gaj #djg1beg ,northeastern ,pennsylvania #hjb1jgb #hcf1ddc #iag1icf ,northern #a1dfg1jda #a1gbb1cde #a1gcf1iha ,pacific #gfa1chb #igb1cih #a1aff1hhf ,pacific ,northwest #fdg1gbf #gbg1dgd #hhh1jic ,philadelphia #b1jef1gdd #b1bah1gee #b1cbf1gbc ,pittsburg #c1cge1ecj #c1bie1dfc #b1ice1bii ,southeastern #hac1ddd #hfb1cgi #hec1gbj ,southern #bgc1bgc #cja1bgc #dib1iad ,texas #icb1iib #igg1fcj #ihf1dge ,toledo #bfb1hge #cab1cbi #ecj1fag ,virginia and ,west ,virginia #hah1iae #hff1hfa #hic1ije ,western ,new ,york #hab1dji #hha1fdj #ihf1ifb ,western 7,omaha7 #fbb1hfh #gah1hgb #ggj1dgj ,wisconsin #a1aeg1jcf #a1aai1cbf #a1aah1gbj ----------------------------------- ,total reported by #cd associations and bureaus 7b7 #bg1fei1jji #bi1gdi1hid #ca1heh1jci ------------------------------------ ,baltimore and ,washington ,demurrage ,bureau 7c7#gba1dbh 7c7#gdj1ijc 7c7#gce1ajc ,illinois and ,iowa ,demurrage ,bureau 7d7 #c1jed1cae #c1beh1ggj ---------------------------------------- ----------------------- table continued ,twelve ,months ,ending ,december ----------------------- ,names of ,associations and ,bureaus #aijh #aiji ---------------------------------------- --------- ,alabama #fca1dhg #gjj1cic ,central ,new ,york #gch1jed #hjd1dai ,central 7,st4 ,louis7 #hch1jag #a1jja1acf ,chicago #b1afa1gfg #b1gij1hja ,cincinnati #fce1cfe #gab1ade ,cleveland 7a7 #gae1gfd #hdc1fji ,colorado #che1bfj #dbh1gfj ,columbus #cfc1acj #dja1fif ,east ,tennessee #bic1eig #ccj1jee ,indiana #a1jgg1ghf #a1baa1gic ,intermountain #aec1hhe #bja1jgg ,lake ,superior #cch1aji #cgj1dij ,louisville ,car #eah1iee #efe1gdh ,memphis #bci1aef #bbd1fdh ,michigan #fif1ibf #hei1hab ,missabe ,range #db1icj #ed1icd ,missouri ,valley #a1fjf1geh #a1hfc1jeb ,nashville #cbf1che #ccg1bcd ,new ,york and ,new ,jersey #a1bdh1fji #a1daf1hca ,north ,carolina #djd1ccd #dde1cih ,northeastern ,pennsylvania #fcc1fee #eid1bca ,northern #a1eae1gjf #a1fcf1ehh ,pacific #a1adg1cde #a1cij1idh ,pacific ,northwest #hde1dje #ihg1aae ,philadelphia #a1iba1adb #b1ejh1bjd ,pittsburg #a1igg1hia #b1hjg1bef ,southeastern #hbc1idh #iha1gcg ,southern #eac1dcg #fdi1chd ,texas #a1aah1fbb #a1cjb1baa ,toledo #chc1hgj #dib1abg ,virginia and ,west ,virgini #ggh1idj #idb1bca ,western ,new ,york #hjf1dhh #ica1ahe ,western 7,omaha7 #gcc1cdf #gge1hbh ,wisconsin #a1jbb1bgj #a1jjf1jej ----------------------- ,total reported by #cd associations and bureaus 7b7 #bg1fch1cci #cb1efi1aef ----------------------- ,baltimore and ,washington ,demurrage ,bureau #ehh1icj #fgb1ied ,illinois and ,iowa ,demurrage ,bureau 7d7 #c1efa1gdj ---------------------------------------- ---------- 7a7 ,cleveland reported #aj1jaf lake coal cars for ,december1 #aiji4 7b7 ,the ,butte ,terminal ,association was superseded by the ,montana ,demurrage ,bureau in ,may1 #aijh4 ,the returns of the new bureau for the twelve months ending ,december1 is #ddh1cha cars4 7c7 ,figures apply to larger territory2 change and revision of #aijg1 #aijh and #aiji figures made ,october #a1 #aiji4 7d7 ,not reported4 ,,viii ,,earnings ,,and ,,expenses ,having in the preceding pages given the facts as to the provision made by the railways for fulfilling their obligations as common carriers1 it is now in order to present a brief review of their receipts and expenditures in relation to their public service4 ,for the second successive year the ,bureau has to warn the reader that innovations in the forms of keeping railway accounts prescribed by the ,commission preclude the making of strictly accurate comparisons of the returns for #aiji with those of any preceding year4 ,in submitting its report for #aijh the ,commission made the following explanation3 ,a number of important changes have been made in the annual report forms for #aijh1 particularly in the grouping of certain items in connection with the ,income ,account and the ,profit and ,loss ,account4 ,the figures which follow do not include returns applying to carriers classed as switching and terminal4 ,the changes in the income account submitted in the report under consideration are so far reaching in their results1 in a number of instances1 as to impair direct or close comparison with figures for similar items contained in previous statistical reports4 ,in the comparative ,income ,account below1 which aims to present the situation as it would result from the actual operations had such operations been conducted by a single corporation1 the ,bureau has sought to make the returns for #aijh and #aiji conform as nearly as possible to previous statistical reports4 ,it should be premised1 however1 that the official figures for #aijh exclude the returns from switching and terminal companies1 whereas the ,bureau's figures for #aiji include some portion of these returns1 which are as much an integral part of the transportation service of ,american railways as any they perform4 ,the official figures for #aijh do not correspond absolutely to the preliminary figures for the same year compiled from the monthly reports as reviewed in the ,introduction to this report4 ,with this by way of explanation1 the comparative ,income ,account for the years #aiji and #aijh is submitted3 ,,comparative ,,income ,,account ,,of ,,the ,,railways ,,in ,,the ,,united ,,states ,,considered ,,as ,a ,,system ,,for ,,the ,,years ,,ending ,,june #cj1 #aiji ,,and #aijh4 ,amount ,item #aiji #aijh 7#bba1acb miles 7#bcj1jjb miles operated7 operated7 ---------------------------------------- ---------------------------- ,passenger revenue #eea1fcd1bgh #eff1hcb1gdf ,mail revenue #di1ejh1igb #dh1eag1efc ,express revenue #fa1hhc1fie #eh1fib1jia ,freight revenue #a1fdc1jbh1efd #a1fee1dai1ajh ,other earnings from operation #fi1jhf1beg #fd1cdd1dha ----------------------------------- ,gross earnings from operation #b1cge1ada1gff #b1cic1hje1ihi ,operating expenses #a1efh1aaa1bgb #a1ffi1edg1hgf ,taxes #hb1fej1bad #gh1fgc1gid ----------------------------------- ,total #a1fej1gfa1dhf #a1gdh1bba1fgj ----------------------------------- ,net earnings from operation #gbd1chj1bhj #fde1ehd1caj ,net revenue from outside operations #e1daj1cch #e1igg1bfh ,operating income #gbi1gij1fah #fea1efa1ehg ,disposition3 ,net interest on funded debt #bic1cch1aje #bhb1ced1jja ,interest on current liabilities #bb1edf1ggi #ca1hce1gjh ,rent paid for lease of road #abj1ghd1ihb #aaa1aec1jac ,additions and betterments charged to income #bd1hjg1edf #bh1jhf1ded ,appropriations to reserves and miscellaneous items #bb1ehg1bjh #ba1fcf1ahb ,other deductions #gj1agd1dgc #fd1ffi1edf ----------------------------------- ,total deductions #eed1bci1jic #eci1gcd1ijd ----------------------------------- ,surplus available for dividends1 adjustments and improvements #age1eea1ebe #aaa1hbf1fhc ,net dividends #aga1fjg1eej #ajd1jgd1jjf ----------------------------------- ,balance to profit and loss #c1idc1ige #g1geb1fgg ---------------------------------------- ---------------------------- ,in #aiji the ,income ,account of the railways was swelled and confused by including therein #bjj1gbe1fif of intercorporate payments1 while that for #aijh includes #bgd1dej1aib ,other ,income which1 as has been formerly noted by the ,official ,statistician1 swells the totals to a fictitious figure4 ,it is out of this fictitious income that fictitious interest and dividends are paid1 fictitious deductions made1 and fictitious surpluses accumulated4 ,if ,other deductions in the above statement had been charged against ,other income instead of being deducted from earnings from operation the balance to ,profit and ,loss for each year would have been so much larger4 ,what becomes of the rent paid by operating roads for leased roads is well shown in the statement included in the ,commission's preliminary report of statistics for #aijh in which the amount received by the latter mentioned in the table just submitted is disposed of4 ,,condensed ,,income ,,account ,,and ,,profit ,,and ,,loss ,,account ,,of ,,leased ,,roads ,,for ,,the ,,year ,,ending ,,june #cj1 #aijh4 ,income ,account ---------------------------------------- ------------------------------ ,gross income from lease of road #aaa1aec1jac ,salaries and maintenance of organization #cij1hda ,taxes accrued #e1hha1ceb ------------- ,net income from lease of road #ajd1hhj1hbj ,other income #e1dcf1abi ------------ ,gross corporate income #aaj1caf1idi ,deductions from gross corporate income #fb1bcb1ejh ------------ ,net corporate income #dh1jhd1dda ,disposition of net corporate income3 ,dividends declared from current income #cc1hdc1egg ,additions and betterments charged to income #a1jhh1jjb ,appropriations to reserves and miscellaneous items #beh1ehj ------------- ,total #ce1aij1aei ,balance carried forward to credit of profit and loss #ab1hid1bhb ---------------------------------------- ------------------------------ ,profit and ,loss ,account ---------------------------------------- ------------------------------- ,credit balance in ,profit and ,loss ,account1 ,june #cj1 #aijg #de1heb1jca ,credit balance brought from ,income ,account1 ,june #cj1 #aijh #ab1hid1bhb ------------ ,total #eh1gdf1cac ,dividends declared out of surplus #bg1eej1eif ,other profit and loss items--debit balance #b1jjf1egc ------------ ,balance credit ,june #cj1 #aijh1 carried to balance sheet #bi1ahi1add ---------------------------------------- ------------------------------- ,included under the blind item of ,deductions from gross corporate income1 #fb1bcb1ejh in this statement may be mentioned rents of other roads and facilities of which these leased roads are the lessees1 interest on funded debt and other interest1 sinking funds chargeable to income and other deductions not specifically provided for elsewhere4 ,in case of operating roads this item also includes the balance of hire of equipment1 to which1 of course1 there is a credit with other operating roads4 ,the significant feature in this statement is the decrease in the profit and loss credit balance of #af1ffb1hhg4 ,but this does not alter the fact that what becomes of rent paid for lease of road is no more a concern of interstate commerce than what becomes of the rent paid for warehouses or office space in any terminal4 ,the operating roads pay all the cost of maintenance of way and equipment4 ,the leased roads are not common carriers in any sense4 ,they are simply distributing mediums of the rents paid them--this rent being the equivalent of interest on so much capital4 ,as appears from the foregoing table1 the expense of maintaining the organization of these leased properties amounted in #aijh to #ce_/ajjths of #a per cent4 ,,distribution ,,of ,,gross ,,earnings4 ,how the gross earnings of the railways reporting to this ,bureau in #aiji 7#b1cge1ada1gff7 were distributed is shown in the next statement in comparison with a similar division of earnings in #aijh and #aijg4 ,,statement ,,of ,,distribution ,,of ,,gross ,,earnings ,,of #bba1acb ,,miles ,,of ,,line ,,in #aiji ,,compared ,,with ,,the ,,percentages ,,for #aijh ,,and #aijg4 7,,gross ,,earnings #aiji1 #b1cge1ada1gff47 ,item ,amount ,per ,cent,per ,cent,per ,cent #aiji #aiji #aijh #aijg ---------------------------------------- --------------------------- ,operating expenses3 ,maintenance of way and structures #bii1geg1jgg #ab4fb #ac4da #ac4bg ,maintenance of equipment #ceh1gdg1cga #ae4aj #ae4db #ad4bb ,traffic expenses #dh1dec1gjg #b4jh #b4jj ,transportation expenses #gii1fij1aid #cc4fg #cf4bd #cg4ej ,general expenses #fa1dfb1ibc #b4eh #b4eh #b4ed -------------------------------------- ,total #a1efh1aaa1bgb #ff4jc #fi4fg #fg4ec ,disposition of same3 ,pay of employes #igc1agd1dai #da4jj #dc4dc #da4db ,fuel for locomotives #ahd1cei1aab #g4gf #g4gd ,oil and water for locomotives #ai1iea1ahd 4#hd 4#hh ,material and supplies #bai1dfc1jbh #i4bd #aa4ha ,hire and rent of equipment and facilities #ed1fch1bdc #b4cj #b4df ,loss and damage #ef1cgi1jdb #b4cg #a4hc ,miscellaneous7a7 #fj1adf1bdb #b4eb #a4ci -------------------------------------- ,total expenses #a1efh1aaa1bgb #ff4jc #fi4fg #fg4ec ,taxes7b7 #hh1eca1eff #c4gb #c4ec #c4aj ,rentals of leased roads #aad1ijc1fcj #d4hd #d4fd #d4fi ,interest on funded debt and current liabilities #cae1hhd1hhd #ac4cj #ac4cd #ac4ad ,dividends #aga1fjg1eej #g4bc #d4db #h4gh ,deficits of weak companies #bj1bbc1bdf 4#he #a4bd 4#ai ,betterments1 reserves and sundries #dg1did1ged #b4jj #b4jg #a4ej ,surplus #dh1chd1hfd #b4jc #a4ji #a4jg -------------------------------------- ,total 7gross earnings7 #b1cge1ada1gff #ajj4jj #ajj4jj #ajj4jj ,gross earnings #aijh #b1cic1hje1ihi ,gross earnings #aijg #b1ehi1aje1egh ---------------------------------------- --------------------------- 7a7 ,legal expenses1 advertising and insurance are included under ,miscellaneous2 stationery and printing under ,material and ,supplies4 7b7 ,includes taxes paid by leased lines and deducted from rent4 ,owing to the fact that interest on funded debt and dividends are paid out of the common fund derived from operation and investments1 the amounts devoted to these items in the above statement are necessarily computations4 ,that they are not underestimates is proved by the fact that the surplus would not permit of larger charges for interest and dividends paid out of net earnings4 ,any interest or dividends materially greater than the amounts stated above1 not paid out of the rents accruing to leased roads as given1 must necessarily be derived from other sources than transportation revenues1 and has no place in railway accounts coming under the provisions of the ,act to ,regulate ,commerce among the several states4 ,,ix ,,taxes ,so far as taxes are concerned1 seasons of prosperity1 depression and marking time are alike to ,american railways4 ,the burden of their taxation knows no recession but mounts steadily1 absolutely1 per mile and in proportion to gross earnings4 ,the #cfh roads reporting to this ,bureau owning #ahb1jdf miles of line and operating #bba1acb miles1 of which #ci1jhf miles were leased1 paid #hb1fej1bad taxes in #aiji4 ,the ,commission's report for #aijh shows that the leased roads paid #e1hha1ceb taxes out of their rents4 ,putting a conservative estimate of #bjj a mile on the #aa1hgj miles of line not represented in this report would add #b1cgd1jjj to the above figures and bring the aggregate taxes paid by the railways of the ,united ,states in #aiji up to the striking total of #ij1ije1eff4 ,how railway taxation has increased absolutely and relatively to earnings and mileage during the past twenty-one years is shown in the following statement3 ,,taxes ,,annually ,,and ,,relatively1 #ahhi ,,to #aiji4 ,percentage ,year ,taxes ,paid ,per ,mile of ,earnings ---------------------------------------- ---------------------- #aiji 7,official figures7 #hi1jbf1bbf #chb #c4gc #aijh #hd1eee1adf #cfg #c4ec #aijg #hj1cab1cge #cec #c4aj #aijf #gd1ghe1fae #ccf #c4ba #aije #fc1dgd1fgi #bib #c4jd #aijd #fa1fif1ced #bij #c4ab #aijc #eg1hdi1efi #bha #c4jd #aijb #ed1dfe1dcg #bgb #c4ae #aija #ej1idd1cgb #bfj #c4bj #aijj #dh1ccb1bgc #bej #c4bd #ahii #df1ccg1fcb #bdg #c4ec #ahih #dc1hbh1bbd #bcg #c4ea #ahig #dc1acg1hdd #bce #c4hd #ahif #ci1igj1gia #bai #c4dh #ahie #ci1hcb1dcc #bbd #c4gj #ahid #ch1abe1bgd #baf #c4ef #ahic #cf1ead1fhi #bae #b4ii #ahib #cd1jec1die #bji #b4ij #ahia #cc1bhj1jie #bjf #c4jd #ahij #ca1bjg1dfi #aii #b4if #ahhi #bg1eij1cid #agi #b4hf ---------------------------------------- ---------------------- ,in this table the figures for #aiji are based on the monthly reports to the ,commission and are subject to revision1 but they are in substantial agreement with the estimate on the returns to the ,bureau4 ,observe that the highest ratio of taxes to gross earnings shown in this table was #c4hd per cent in #ahig1 when everything relating to railways1 except taxes1 was prostrated under the reign of receiverships that followed the panic of #ahic4 ,it was of #ahig that the ,official ,statistician recorded the fact that #gj4aj per cent of outstanding stock paid no dividends1 and #af4ei per cent of outstanding bonds1 exclusive of equipment trust obligations1 paid no interest4 ,there is instruction and warning behind the remarkable increase in the ratio of taxation shown in the figures for #ahid to #ahig4 ,there is the reflection of similar conditions in the rising ratios of #aijh and #aiji4 ,x ,,damages ,,and ,,injuries ,,to ,,persons ,there are two items in railway accounts connected with the expense of operation that give the management most serious concern1 because no means has been devised to limit or control them4 ,in a leaflet issued by this ,bureau in ,september last1 it was estimated that the payments of ,american railways on account of ,injuries to ,persons and ,loss and ,damage for the year #aijh would approximate #ef1gjj1jjj1 or more than #b4c per cent of their gross earnings4 ,the ,commission has not yet made public the final figures for #aijh1 but the returns on these accounts of the #cfh roads reporting to this ,bureau for the year #aiji1 aggregate #ef1cgi1jbd1 or #b4cg per cent of their gross earnings4 ,divided according to the new system of accounting adopted by the ,commission1 these returns show the following figures3 ,,summary ,,of ,,payments ,,on ,,account ,,of ,,injuries ,,to ,,persons ,,and ,,loss ,,and ,,damage ,,during ,,the ,,year #aiji4 ,per ,cent ,account ,amount of ,earnings ---------------------------------------- ------------------------- ,injuries to persons #bc1def1jch 4#ii ,maintenance of way #b1gjb1jff ,maintenance of equipment #b1cae1aai ,transportation #ah1dch1hec ,loss and damage #cb1ibb1ihf #a4ch ,to freight #bd1gfh1dec ,to baggage #cjj1hfi ,to property #d1dfi1dif ,to live stock1 etc4 #c1chd1afh ---------------------- ,total #ef1cgi1jbd #b4cg ---------------------------------------- ------------------------- ,unlike many of the other expenses of ,american railways1 the burden of this cost of operation does not fall heaviest on the large systems4 ,in the case of one road of moderate importance payments on these two accounts amounting to #d4h per cent of gross earnings were enough to tip the balance into a deficit after paying interest on funded debt2 one minor but prosperous road1 after paying #ad per cent of gross receipts to meet these two accounts1 had nothing left for dividends after paying interest1 which amounted to less than #aj per cent of its earnings2 and a small third road after being called on to pay #ba4e per cent of its earnings for injuries and damages had only #f per cent of its operating revenue left to pay interest on funded debt1 which called for #bj per cent of the earnings1 and taxes reduced the net operating revenue to less than #d per cent4 ,these are extreme cases but they illustrate how the ,injury and ,damage claims strike roads that can ill afford to pay them as well as the great systems which are the common prey of every claimant with enough of a grievance to interest an attorney who scents a contingent fee4 ,that the claims behind these expenses are largely meretricious is indicated1 if not proved1 by their disproportionate increase in the past ten years1 during which the railways have expended millions in providing safeguards for their trains and employes4 ,this increase absolutely and relatively to gross earnings is shown in the following statement3 ,,payments ,,on ,,account ,,or ,,loss ,,and ,,damage ,,and ,,injuries ,,to ,,persons ,,during ,,the ,,decade #ahii ,,to #aiji ,,and ,,proportion ,,to ,,gross ,,earnings4 ,loss and ,damage ,injuries to ,persons ---------------------------------------- --- ,year ,per ,cent ,per ,cent ,amount of ,amount of ,earnings ,earnings ---------------------------------------- ------------------------- #ahii #e1igf1jhb 4#dee #g1aaf1bab 4#eda #aijj #g1jee1fbb 4#dgd #h1dje1ihj 4#efe #aija #h1aji1fcg 4#eaj #i1jad1add 4#efg #aijb #aa1jcd1fhf 4#fci #aa1fhb1gef 4#fgf #aijc #ac1gbf1ejh 4#gbb #ad1jeb1abc 4#gci #aijd #ag1jjb1fjb 4#hfa #ae1hch1agi 4#hjb #aije #ai1ghb1fib 4#idf #af1jcd1gbg 4#ggj #aijf #ba1jhf1bai 4#ijg #ag1dff1hfd 4#gea #aijg #be1gif1jhc 4#iif #ba1dfb1ejd 4#hbi #aijh -- -- -- -- #aiji #cb1ibb1ihf #a4chf #bc1def1jch 4#ihh ,increase in #aj years1 per cent #dej4e #bjd4f #bbi4f #hb4f ---------------------------------------- ------------------------- ,startling as are these increases absolutely1 those relatively to earnings present a condition truly alarming1 for which there is no apparent relief except through a revulsion in the popular tolerance of blackmail at the expense of the railways4 ,in no other country in the world are the railways held up on bogus claims for damages to the extent they are in the ,united ,states4 ,under the strict laws of the ,united ,kingdom1 as to compensation for damages and injuries1 the ,british railways paid less than #g_/ajths of #a per cent of their earnings for all damages1 losses and injuries1 or less than one-third the proportion paid by ,american railways on the same account4 ,,xi ,,locomotive ,,fuel ,despite the continuous improvements in the steam-producing capacity of railway locomotives per ton of coal1 the steady advance in the cost of coal during the past ten years has more than offset the economies of locomotive construction4 ,this is shown in the next statement1 which gives the cost of locomotive fuel and its relative proportion to gross earnings and operating expenses1 and also the average price per short ton of coal in the ,united ,states since #ahii3 ,,summary ,,of ,,cost ,,of ,,locomotive ,,fuel ,,and ,,proportion ,,to ,,earnings ,,and ,,expenses ,,of ,,american ,,railways1 #aiji ,,to #ahii1 ,,with ,,price ,,of ,,bituminous ,,coal ,,per ,,ton ,,during ,,the ,,same ,,period4 ,proportion,proportion,price of ,miles of ,cost of to to ,coal at ,year ,line ,locomotive ,operating ,gross ,mines ,fuel ,expenses ,earnings per ,ton7a7 ---------------------------------------- ------------------- #aiji #bba1acb #ahd1cei1aab #aa4geg #g4gg -- #aijh #bcj1did #aig1che1eac #ab4jih #h4be #a4ab #aijg #bbg1ded #bjj1bfa1ige #aa4dga #g4gd #a4ad #aijf #bbb1cdj #agj1dii1acc #aa4aai #g4cd #a4aa #aije #baf1igc #aef1dbi1bde #aa4bgh #g4ea #a4jf #aijd #bab1bdc #aeh1idh1hhf #aa4hic #h4je #a4aj #aijc #bje1cac #aaf1eji1jca #aa4fge #g4gj #a4bd #aijb #bjj1aed #abj1jgd1aib #aj4ggf #f4if #a4ab #aija #aie1efa #ajd1ibf1efh #aj4fjb #f4fa #a4je #aijj #aib1eef #ij1eic1ife #i4hji #f4ji #a4jd #ahii #ahg1ecd #gg1ahg1cdd #i4dgh #e4hh 4#hg ---------------------------------------- ------------------- 7a7 ,these figures are from the latest report of the ,united ,states ,geological ,survey4 ,the significance of this table is that it cost the railways almost one-third more for fuel per dollar earned in #aiji than it did in #ahii1 the increase in the proportion of fuel cost to gross earnings having been #cb1 due to the advance of #ca in the price of coal at the mines during that period4 ,the effect of the anthracite coal strike and the ,commission's award of date ,march #ah1 #aijc1 upon the cost of bituminous coal is seen in the sharp advances in #aijb and #aijc4 ,the railways have not escaped the advance in their cost of living due to the increased price of fuel any more than the public at large1 and so far they have not been able to shift any portion of that cost1 as manufacturers and shippers have done4 ,,xii ,,the ,,safety ,,of ,,american ,,railways ,never before in the history of railways has such a record for comparative safety been made as that recorded of ,american railways during the year ending ,june #cj1 #aiji4 ,following its custom the ,interstate ,commerce ,commission has published the report of accidents4 ,it remains to set forth here the more remarkable record of safety4 ,,of ,,the #cfh ,,companies ,,reporting ,,to ,,this ,,bureau1 ,,no ,,less ,,than #cdg1 ,,operating #aei1feg ,,miles ,,of ,,line ,,and ,,carrying #egj1fag1efc ,,passengers1 ,,went ,,through ,,the ,,year ,,without ,a ,,single ,,fatality ,,to ,a ,,passenger ,,in ,a ,,train ,,accident4 ,of the remaining #ba companies1 no less than #aj1 operating #bg1fha miles and carrying #ahe1ddg1ejg passengers1 only missed such perfect immunity by a single fatality each in accidents to trains4 ,this leaves #aa roads whose misfortune it was to bear the burden of train accident fatalities to passengers during the year4 ,the invariable rule of the ,bureau precludes the publication of the honor roll of safety4 ,and it is well so1 for it would lead to invidious comparisons1 where1 in such matters as accidents1 all comparisons are as irrelevant as they are invidious4 ,but it may be stated that the roll of immunity includes roads in every section of the union1 from ,maine to ,california1 several great systems operating over #g1jjj miles of line each1 as well as little branch lines of below ten miles of single track2 lines operated with all the safety appliances known to twentieth century progress and lines operated under as primitive conditions as prevailed on this continent more than half a century ago4 ,,this ,,record ,,of ,,complete ,,immunity1 ,,stretching ,,over #aei1feg ,,miles ,,of ,,operated ,,line1 ,,represents ,a ,,mileage ,,nearly ,,seven ,,times ,,that ,,of ,,all ,,british ,,roads1 ,,and ,,equals ,,the ,,aggregate ,,of ,,all ,,europe1 ,,excluding ,,russia ,,but ,,including ,,the ,,british ,,isles4 ,what immunity to fatalities to passengers over such a vast mileage means may be partly realized from the fact that only twice in half a century has it occurred on the #bc1jjj miles of ,british railways1 and never1 to the writer's knowledge1 so far as statistics reveal1 on the railways of any of the great divisions of ,europe4 ,certainly it has never occurred on the aggregate railways of ,europe4 ,it would take seven consecutive years of immunity from fatalities to passengers in train accidents on ,british railways to equal this phenomenal record of ,american roads4 ,in presenting similar returns for #aijh1 it was said that considering the myriad units of risk involved1 the record for immunity from fatal accidents to passengers is without parallel in the history of railway operation4 ,how that record has been not only equalled but surpassed is shown in the following statement for the last two years3 ,,summary ,,of ,,mileage ,,and ,,traffic ,,of ,,roads ,,on ,,which ,,no ,,passenger ,,was ,,killed ,,in ,a ,,train ,,accident ,,during ,,the ,,years #aijh ,,and #aiji4 #aiji #aijh ---------------------------------------- ------------------------------ ,number of operating companies #cdg #caf ,mileage of these companies #aei1feg #abd1jej ,passengers carried #egj1fag1efc #dee1cfe1ddg ,passengers carried #a mile #ah1iec1jbe1jjj #ad1ggf1cfh1jjj ,tons of freight carried #a1aaf1hgg1jeb #iaf1abc1daj ,tons of freight carried #a mile #aea1igd1die1jjj #aba1ehi1cii1jjj ,passengers killed in train accidents ,none ,none ,passengers injured in train accidents #b1ehe #b1fie ---------------------------------------- ------------------------------ ,this table proves that the area of perfect safety1 so to speak1 was extended over from #bb to #bf more units of risk in #aiji than in #aijh1 which already held the palm for immunity in train accident fatalities to passengers4 ,the figures given above as to passengers injured in train accidents are equally illuminating as to the safety of ,american railways1 for they demonstrate that with the multiplication of risks in #aiji the number of injured was less by #d4 ,the fact that no passenger is killed in train accidents is more or less adventitious1 but a reduction in the number injured testifies to a reduction in the opportunities for fatalities4 ,during the past ten years the average of passengers injured in train accidents on ,british railroads has been #ehj1 which1 considering the difference in the units of risk1 is #ajj higher than the above record for #aei1feg miles of ,american railway in #aiji4 ,the following table1 which includes no less than six great systems of over #b1jjj miles each1 presents similar data in respect to the ten roads whose record for safety to passengers in train accidents is marred by a single fatality3 ,,summary ,,of ,,mileage ,,and ,,traffic ,,of ,,roads ,,on ,,which ,,only ,,one ,,passenger ,,was ,,killed ,,in ,a ,,train ,,accident ,,during ,,the ,,year #aiji4 #aiji ---------------------------------------- ---------------- ,number of operating companies #aj ,mileage of these companies #bg1fha ,passengers carried #ahe1ddg1ejg ,passengers carried #a mile #e1ggh1fba1jjj ,tons of freight carried #bac1jhf1fab ,tons of freight carried #a mile #dj1agg1hha1jjj ,passengers killed in train accidents #aj ,passengers injured in train accidents #ggh ---------------------------------------- ---------------- ,these figures show a mileage of #d1dha miles greater than all the railways of the ,united ,kingdom1 approximately one-half the passenger mileage1 and over three times the ton mileage1 with only #aj passengers killed in train accidents1 to an average of #bj on ,british railways during the past ten years4 ,further analysis of the returns to the ,bureau1 since data along this line has been compiled1 affords the following statement of the number of roads and their mileage that have records of entire immunity from fatalities to passengers in train accidents of from one up to six years3 ,,statement ,,showing ,,number ,,of ,,railways ,,and ,,mileage ,,on ,,which ,,no ,,passenger ,,has ,,been ,,killed ,,in ,a ,,train ,,accident1 #aijd ,,to #aiji4 ,number of ,miles of ,companies ,line ---------------------------------------- ------------------- ,six consecutive years1 #aijd-aiji #ag #i1fda ,five #aije-aiji #ie #dd1hid ,four #aijf-aiji #agg #eg1cca ,three #aijg-aiji #bbh #fi1gac ,two #aijh-aiji #bhg #ajh1gaj ,one year1 #aiji #cdg #aei1feg ---------------------------------------- ------------------- ,gratifying and remarkable as was the immunity from fatalities of the class under consideration in #aiji1 the fact that for a period of five years #ie ,american roads with a mileage practically double that of all ,british railways have carried hundreds of millions of passengers without a fatality to one of them is so at variance with the popular impression regarding the dangers of ,american railway travel as to seem little short of marvelous4 ,the impressive character of this showing will be better appreciated when it is understood that the immunity from fatalities in train accidents represents consecutive years counting back from #aiji4 ,no road has been admitted to the list where the immunity has been interrupted by a single accident4 ,with this fact in mind1 the clean slate of the #ag roads for six years challenges admiration1 especially as the ,bureau's reports in #aijd covered less than two-fifths of the operated mileage of the ,united ,states4 ,,railway ,,accidents ,,in #aiji4 ,having thus shown the gratifying immunity from fatalities to passengers in train accidents during the year #aiji1 and on #i1fda miles of line since #aijd1 it remains to present the reverse side of the picture1 which is so invariably thrust forward in official documents4 ,accident ,bulletin ,no4 #cb of the ,interstate ,commerce ,commission furnishes the following data as to the number killed and injured on the railroads of the ,united ,states during the last two fiscal years3 ,,summary ,,of ,,casualties ,,to ,,persons ,,in ,,railway ,,accidents ,,for ,,the ,,years ,,ending ,,june #cj1 #aiji ,,and #aijh4 #aiji ------------------------------- ,class of ,accident ,passengers ,employes ----------------------------- ,killed ,injured ,killed ,injured ---------------------------------------- --------------------- ,collisions #id #c1jcc #bdh #b1cfb ,derailments #cg #b1gag #bbg #a1ddh ,miscellaneous train accidents1 including locomotive boiler explosions -- #aae #de #a1jfg ----------------------------- ,total train accidents #aca #e1hfe #ebj #d1hgg ----------------------------- ,coupling or uncoupling -- -- #afa #b1cec ,while doing other work about trains or while attending switches -- -- #ic #ad1cae ,coming in contact with overhead bridges1 structures at side of track1 etc #b #cf #gf #a1bbi ,falling from cars or engines or while getting on or off #acg #c1jgf #dha #aj1bei ,other causes #fe #c1aci #a1abe #ah1gga ----------------------------- ,total 7other than train accidents7 #bjd #f1bea #a1icf #df1ibg ----------------------------- ,total 7all classes7 #cce #ab1aaf #b1def #ea1hjd ,totals in #aijg3 ,in train accidents #daj #i1jgj #a1jaa #h1ibd ,in other than train accidents #bcg #d1ebg #c1cdb #ec1gfe ----------------------------- ,all classes of accidents #fdg #ac1eig #d1cec #fb1fhi ---------------------------------------- --------------------- table continued #aijh ------------------------------- ,class of ,accident ,passengers ,employes ----------------------------- ,killed ,injured ,killed ,injured ---------------------------------------- --------------------- ,collisions #aaa #d1bhd #cjc #c1dbh ,derailments #ed #c1jeg #bfj #b1jfe ,miscellaneous train accidents1 including locomotive boiler explosions -- #hi #gi #a1cbe ----------------------------- ,total train accidents #afe #g1dcj #fdb #f1hah ----------------------------- ,coupling or uncoupling -- -- #bci #c1aba ,while doing other work about trains or while attending switches -- -- #bjf #ae1iia ,coming in contact with overhead bridges1 structures at side of track1 etc #d #cg #aaj #a1cec ,falling from cars or engines or while getting on or off #aei #b1eja #ffh #aa1gce ,other causes #gh #b1fgg #a1dic #ag1cbf ----------------------------- ,total 7other than train accidents7 #bda #e1bae #b1gaf #di1ebf ----------------------------- ,total 7all classes7 #djf #ab1fde #c1ceh #ef1cdd ,totals in #aijg3 ,in train accidents #daj #i1jgj #a1jaa #h1ibd ,in other than train accidents #bcg #d1ebg #c1cdb #ec1gfe ----------------------------- ,all classes of accidents #fdg #ac1eig #d1cec #fb1fhi ---------------------------------------- --------------------- ,the same cause which accounted for the remarkable recession of railway casualties in #aijh was still operative in a more marked degree throughout #aiji1 as evidenced in the above table4 ,here is shown a reduction from #aijg of #fh in fatalities to passengers in train accidents and of nearly #ej in those to employes4 ,even in all classes of accidents the decrease is almost as striking4 ,a drop from #fdg to #cce in fatalities to passengers and from #d1cec to #b1def in fatalities to employes1 resulting from whatever cause1 should be a matter for national congratulation and thanksgiving4 ,that the facts herein set forth should have no lesson for national authorities beyond moving them to appeal for additional control of safety appliances is nothing short of a national scandal4 ,as for safety devices1 the railways in #aijg were practically as well equipped as in #aiji4 ,the percentage operated under the protection of block signals was #bg4a in #aiji against #bf4b in #aijg1 a difference inappreciable as compared with the recorded difference in fatalities4 ,the government inspectors reported the equipment in better condition in #aijg than for any previous year by fully #cj1 and yet that was the worst year in the annals of railway accidents4 ,an ,english writer 7,h4 ,raynor ,wilson71 his vision unobscured by the propinquity of patent devices1 has placed his finger on the true cause of the reduction in railway accidents in the ,united ,states in #aijh and #aiji when writing in ,the ,safety of ,british ,railways he says3 ,experience in ,america during the period of depression that has prevailed since the summer of #aijg shows that fewer accidents occur during such times4 ,there are not so many goods trains1 the men are less 'pushed1' they work fewer hours1 and the careless and indifferent are weeded out4 ,but we do not have to go to ,england for a convincing analysis of the causes of the remarkable decrease in accidents on ,american railways in #aijh and #aiji4 ,in the presence of similar conditions ,statistician ,adams in his official report for #ahid penned the following3 ,another explanation may be suggested for this decrease in casualties to railway employes4 ,the character of equipment used during the year covered by this report was undoubtedly of a higher grade than in previous years4 ,a large number of old cars of abandoned type were destroyed during the year1 while there was an increase in the better grades of cars equipped with train brakes and automatic couplers4 ,this1 however1 is a suggestion merely1 there being no statistical proof of any relation between a higher grade equipment and the decrease of accidents to employes4 ,it is also probable1 in view of the fact that liability to accident is increased by the employment of the shiftless and unskilled1 that the grade of labor was raised through the discharge of so large a number of employes4 ,this latter suggestion finds support in the fact that the ratio of casualties in the ,southern ,states1 where the grade of labor is somewhat inferior1 has for a series of years been higher than in the ,northern and ,eastern ,states4 ,with a continuation of similar conditions as to traffic and labor throughout #ahie1 the ,official ,statistician1 having not yet accepted the theory that violation of rules1 carelessness and negligence are amenable to patent appliances1 emphasized the concluding suggestion of his #ahid report in these terms3 ,from the above comparative statement it is clear that the year ending ,june #cj1 #ahie1 is more satisfactory1 so far as accidents are concerned1 than any previous year4 ,reference was made in last year's report to the fact that the marked reduction in the pay roll of the railways1 by which the incompetent and inefficient were dropped from the railway service1 and the consignment to the scrap heap of equipment worn out or out of date1 were largely responsible for the greater safety in railway travel and railway employment shown by the statistics of the year4 ,the result of raising the character of the railway service and grade of railway equipment is yet more marked during the present year1 and to this must be added the fact that the demands upon the passenger service during the present year have been somewhat decreased4 ,it is also worthy of suggestion1 although the facts yet at command are not adequate for confident assertion1 that the fitting of equipment with automatic devices is beginning to show beneficial results4 ,from that year to this the fitting of equipment with automatic devices has proceeded with uninterrupted despatch4 ,where in #ahie only #bg4g of it was equipped with train brakes and #ca4c with automatic couplers1 in #aijg the ,commission reported #id4d equipped with train brakes and #ii with automatic couplers4 ,in every form of mechanical safety device the railway equipment of #aijg was incomparably better than in #ahie1 and yet the number of fatal accidents to employes in #aijg exceeded those in #ahie seven to three and to passengers three and four-fifths to one4 ,in the matter of deaths in coupling accidents alone are beneficial results traceable to automatic safety devices4 ,the character of the men in the service1 their automatic observance of regulations1 intelligence and alert devotion to duty are the best preventives of railway accidents1 and the conditions prevalent after the panics of #ahic and #aijg are conducive to these conditions4 ,it is not likely1 however1 that the ,american people will welcome experiences1 even in homeopathic doses1 such as we knew in #aijd1 as the cure for railway accidents4 ,but from the lessons of every depression1 as read in the statistics of railway fatalities1 the ,american people have a right to expect their representatives in federal and state legislatures to learn that the prevention of railway accidents rests on the intelligence1 vigilance and experience of the man and not with the multiplication of devices4 ,automatic obedience to rules will prevent more accidents than all the safety devices that cumber the shelves of the ,patent ,office at ,washington4 ,invention1 however1 is easier to the average ,american than plain everyday observance of rules4 ,besides the selling of devices to railways is a profitable business4 ,,accidents ,,increase ,,in #aiji-aj4 ,accident ,bulletin ,no4 #cc for the first quarter of the current fiscal year shows the unfavorable turn in casualties always attendant on reviving business4 ,given in brief the figures are as follows3 ,,casualties ,,to ,,persons1 ,,july1 ,,august ,,and ,,september1 #aiji4 ---------------------------------------- ----------- ,killed ,injured ---------------------------------------- ----------- ,to passengers3 ,from accidents to trains #ef #b1cbe ,by accidents from other causes #dh #b1jhh ,to employes3 ,from accidents to trains #acg #a1dbg ,by accidents from other causes #faa #ac1dja ---------------- ,total classes #ai1bda ,corresponding quarter #aijh #af1ede ---------------------------------------- ----------- ,as this report goes to press1 the ,commission1 through the ,associated ,press1 has issued a summary of ,accident ,bulletin ,no4 #cd which states that there were #a1jgc persons 7#aje passengers and #ifi employes7 killed and #ba1hdi injured on the steam railways of the ,united ,states during the three months ending ,december #ca1 #aiji4 ,this shows an increase over the corresponding quarter last year of #bge killed and #e1jjc injured4 ,for the same quarter in #aijg the killed were #a1jib2 in #aijf1 #a1dcj2 and in #aije1 #a1aji4 ,as the quarter ending ,december #ca1 #aiji1 saw railway traffic at its highest pressure1 it shows an improvement over the records of #aijg1 '#jf and '#je4 ,the number injured is the highest ever recorded for three months1 surpassing the quarter ending ,september #cj1 #aijg1 however1 by only #abf4 ,but as explained elsewhere1 injuries is too elastic a term for comparative statistics4 ,,accidents ,,to ,,other ,,persons4 ,where the quarterly ,bulletins of the ,commission make no mention of the accidents to persons other than passengers and employes1 the annual reports of the carriers supply the missing data as to ,other ,persons4 ,these include casualties at highway crossings1 to trespassers1 persons walking1 standing or sleeping on the track1 workmen in railway shops and all other accidents directly or indirectly connected with the transportation industry4 ,accidents to ,other ,persons cover over #fj of all fatalities charged to the railways and of these over #hj are to trespassers4 ,the returns to this ,bureau show the following casualties to persons other than passengers and employes during the year ending ,june #cj1 #aiji3 ,class ,killed ,injured ---------------------------------------- ---------- ,trespassers 7including suicides7 #d1iai #e1fig ,not trespassing #hbj #c1jfi ---------------- ,total other persons #e1gci #h1gff ---------------------------------------- ---------- ,these figures warrant the estimate that the total number of trespassers and other persons killed and injured in the ,united ,states in #aiji through the operation of railways was approximately #e1igh and #i1acb respectively4 ,this marks a decrease from #aijh1 but not nearly so great as in the case of passengers and employes4 ,,fatalities ,,in ,,railway ,,accidents ,,since #ahhh4 ,we are now enabled to present a complete statement of the fatalities connected with the transportation industry since the ,commission began compiling casualty statistics in #ahhh4 ,the figures in this summary are confined to fatalities1 for the reason given by the ,commission that it is well known the term 'injury1' as used in statistics of this character1 is elastic4 ,as a matter of fact the terms injury and casualty are so individually or locally indefinite and variable as to have little or no statistical value4 ,,passengers1 ,,employes ,,and ,,other ,,persons ,,killed ,,in ,,railway ,,accidents ,,from #ahhh ,,to #aijh4 ,other ,persons ,year ,passengers,employes -------------------------- ,total ,trespassers,not ,trespassing ---------------------------------------- --------------------- #aiji #cce #b1def #e1abd #hed #h1gfi #aijh #djf #c1ceh #e1efj #idj #aj1bfd #aijg #fdg #d1cec #e1fab #a1jdd #aa1fef #aijf #cei #c1ibi #e1cha #idi #aj1fah #aije #ecg #c1cfa #d1hfe #idj #i1gjc #aijd #dda #c1fcb #e1aje #hfh #aj1jdf #aijc #cee #c1fjf #e1jjj #hgi #i1hdj #aijb #cde #b1ifi #d1djc #hga #h1ehh #aija #bhb #b1fge #d1fja #hig #h1dee #aijj #bdi #b1eej #d1cdf #ffj #g1hfe #ahii #bci #b1baj #d1jdj #fcd #g1abc #ahih #bba #a1ieh #d1jfc #fag #f1hei #ahig #bbb #a1fic #c1iai #fjc #f1dcg #ahif #aha #a1hfa #c1haa #eie #f1ddh #ahie #agj #a1haa #c1fca #ebd #f1acf #ahid #cbd #a1hbc #c1gbj #ehj #f1ddg #ahic #bii #b1fbg #c1fgc #fdg #g1cdf #ahib #cgf #b1eed #c1fjc #fad #g1adg #ahia #bic #b1ffj #c1dfe #faa #g1jbi #ahij #bhf #b1dea #c1jfb #ecf #f1cce #ahhi #caj #a1igb ,not 7a7#c1eda #e1hbc #ahhh #cae #b1jgj given 7a7#b1hig #e1bhb ---------------------------------------- --------------------- 7a7 ,includes trespassers4 ,to the most casual student this table illustrates how railway accidents increase and decline with periods of business activity and recession4 ,the effect of the panic of #ahic-id is seen in the decrease in accidents in #ahie and #ahif4 ,the temporary slowing up in #aijd is reflected in fewer fatalities in #aije1 and a drop of #aa in the business of #aijh was followed by a decreased death roll of #ab for that year and #be in #aiji4 ,,relation ,,of ,,accidents ,,to ,,passenger ,,traffic4 ,the relation of railway accidents to passenger travel is most accurately measured in the following statement of the number of passengers carried one mile to one killed in train accidents during the years for which these statistics have been compiled3 ,,passengers ,,carried ,,one ,,mile ,,to ,,one ,,killed4 ,passengers ,killed ,passengers ,carried ,passengers ,carried ,year in ,one ,mile ,one ,mile ,train ,accidents to ,one ,killed ---------------------------------------- ---------------------------- #aiji #aca7;a7 #bi1deb1jjj1jjj #bhh1gde1ajj #aijh #afe7;b7 #bi1jhb1hcf1idd #aif1eje1fdh #aijg #daj #bg1gah1eed1jcj #gb1hjb1fjj #aijf #ahb #be1afg1bdj1hca #ahc1gjb1dhh #aije #cej #bc1hjj1adi1dcf #fh1jjj1dbg #aijd #bgj #ba1ibc1bac1ecf #ha1aig1jhg #aijc #afd #bj1iae1gfc1hha #abg1ece1gde #aijb #agj #ai1fhi1icg1fbj #aae1hbc1afb #aija #aaj #ag1cec1ehh1ddd #aeg1gei1hid #aijj #ic #af1jch1jgf1bjj #agb1dfc1ahc #ahii #hc #ad1eia1cbg1fac #age1gii1abg #ahih #gd #ac1cgi1icj1jjd #ahj1hji1hfd #ahig #if #ab1bef1ici1fdg #abg1fgf1ded #ahif #da #ac1jdi1jjg1bcc #cah1bfh1dfi #ahie #cj #ab1ahh1ddf1bga #djf1bha1edb #ahid #afb #ad1bhi1dde1hic #hh1bjf1def #ahic #ajj #ad1bbi1aja1jhd #adb1bia1jaj #ahib #aie #ac1cfb1hih1bii #fh1ebb1eee #ahia #aaj #ab1hdd1bdc1hha #aaf1gfe1hec #ahij #aac #aa1hdg1ghe1fag #ajd1hdg1ffj #ahhi #afa #aa1eec1hbj1dde #ga1gfb1hei ---------------------------------------- ---------------------------- 7a7 ,of these only #ajb were passengers in the ordinary sense of the term4 7b7 ,of these only #adh were passengers in the ordinary sense of the term4 ,the student has to go back to the years of continued business paralysis1 #ahie and #ahif1 to find any record of immunity to passengers from fatalities in train accidents at all comparable with the conditions that prevailed in #aiji4 ,,decreased ,,hazard ,,to ,,train ,,crews4 ,never in the history of ,american railways has the occupation of the men directly engaged in the operation of trains been as free from fatalities as during the year #aiji4 ,this is proved by the following statement showing the number of trainmen killed in all descriptions of accidents since the figures have been compiled1 with the ratio to the number employed3 ,,summary ,,showing ,,number ,,of ,,trainmen ,,killed ,,in ,,railway ,,accidents #ahhi ,,to #aiji1 ,,with ,,ratio ,,to ,,number ,,employed4 ,yard ,number of ,trainmen ,trainmen ,trainmen ,all ,trainmen in ,yards ,switching ,trainmen for ,one ,crews ,killed ---------------------------------------- --------------------- #ahhi #a1agi #a1agi #aag #ahij #a1dei #a1dei #aje #ahia #a1ecc #a1ecc #ajd #ahib #a1ejc #a1ejc #aac #ahic #a1efg #a1efg #aae #ahid #a1jbi #a1jbi #aef #ahie #a1jag #a1jag #aee #ahif #a1jgc #a1jgc #aeb #ahig #igf #igf #afe #ahih #a1ada #a1ada #aej #ahii #a1aee #a1aee #aee #aijj #a1cif #a1cif #acg #aija #a1ecg #a1ecg #acf #aijb #a1ejg #a1ejg #ace #aijc #b1jba #b1jba #abc #aijd #a1aha #dhg #dhh #b1aef #abj #aije #a1aee #chf #dic #b1jcd #acc #aijf #a1cfj #djj #ege #b1cce #abd #aijg #a1ejg #dei #fcj #b1eif #abe #aijh #a1jig #cfb #dif #a1iee #aej #aiji #ghi #bgj #cac #a1cgb #bjb ---------------------------------------- --------------------- ,the figures of the ,interstate ,commerce ,commission have only made the division of trainmen shown above since #aijd4 ,here again the last column proves the relation of accidents to the ebb and flow of traffic4 ,,freight ,,traffic ,,and ,,accidents4 ,the preponderating part played by the immense freight traffic of ,american railways as a cause of accidents is shown in the following analysis of the sixty prominent collisions described in the ,commission's quarterly ,accident ,bulletins for the year #aiji3 ,kind of ,train in ,accident ,number of ,killed ,injured ,collisions ---------------------------------------- --------------------- ,passenger and passenger #h #cj #bbe ,freight and passenger #ah #fh #cgd ,freight and freight #cd #dg #ia ---------------------------- ,total #fj #ade #fij ---------------------------------------- --------------------- ,here it will be observed freight trains were involved in #hf4f of the prominent collisions of the year and shared in responsibility for #gi4c of the fatalities4 ,the proportion of injured in accidents to freight trains is not so great for the obvious reason that the number of persons exposed in collisions involving only freight trains is generally limited to train crews4 ,,causes ,,of ,,train ,,accidents4 ,an examination of the causes given for the prominent collisions and derailments in the ,accident ,bulletins of the ,commission since the passage of the ,act of ,march #c1 #aija1 requiring the railway companies to make full monthly reports of all accidents affords the following general statement3 ,cause ,number of ,accidents ---------------------------------------- --------------------------- ,negligence1 error or forgetfulness of some member of #bda train crew ,recklessness1 carelessness1 overlooking or disregarding #bcc orders or taking chances ,disobedience #ec ,incompetence or inexperience #bj ,defect of equipment1 tires1 wheels1 etc4 #fd ,defect of roadway #bd ,malicious acts #bg ,misadventure1 washouts1 landslides1 cyclones1 etc4 #ia ,undiscovered #da ---------- ,total #gid ---------------------------------------- --------------------------- ,among the prominent derailments charged against the railways in the ,bulletin for ,april1 ,may and ,june1 #aiji1 is the following1 resulting in one killed and three injured4 ,automobile running on track1 derailed by running over a dog1 one guest killed4 ,through the inclusion in these ,bulletins of accidents on trolley lines1 their value as records of railway accidents is being greatly impaired4 ,without any information as to the number of passengers carried by the electric cars it is impossible to arrive at an accurate idea of the relation of accidents to traffic1 and without this the mere record of accidents has little information value4 ,,accidents ,,on ,,british ,,railways4 ,for a second time in their history1 in the year ending ,december #ca1 #aijh1 ,british railways went through a twelvemonth without killing a single passenger in a train accident1 thus paralleling their record of #aija in this respect4 ,in the matter of passengers injured1 the year #aijh showed a remarkable improvement1 not only over #aija but over any other year in the history of ,british railways4 ,when it comes to the totals of casualties1 however1 #aijh shows little variation from the average record4 ,the following table shows the total number of persons killed and injured in the working of ,british railways1 as reported to the ,board of ,trade for the calendar year #aijh as compared with #aija3 #aijh #aija ,class ----------------------------- ,killed ,injured ,killed ,injured ---------------------------------------- --------------------------- ,passengers3 ,in accidents to trains -- #bhc -- #dgf ,by accidents from other causes #ajg #c1aje #ace #b1bfi ------------------------------ ,total passengers #ajg #c1chh #ace #b1gde ,employes3 ,in accidents to trains #f #afd #h #aef ,by accidents from other causes #dbf #bd1jag #efh #ad1ebb ------------------------------ ,total employes #dcb #bd1aha #egf #ad1fgh ,other persons3 ,accidents to trains -- #g #c #e ,while passing over railways at level crossings #ea #dd #ee #bf ,while trespassing on line 7including suicides7 #dgi #aah #dbf #aga ,not coming under above classification #ei #gdg #hb #gej ------------------------------ ,total other persons #ehi #iaf #eff #ieb ,grand total all classes1 #aijh #a1abh #bh1dhe #a1bgg #ah1cge #aijg #a1baa #be1ige #aijf #a1beb #bj1ddd #aije #a1ahj #ah1bcf #aijd #a1aeh #ah1hjb #aijc #a1bfb #ah1eeg #aijb #a1aga #ag1had #aija #a1bgg #ah1cge #aijj #a1cbe #ai1egb #ahii #a1cdj #ai1aee ------------------------------ ,total1 ten years #ab1bid #bje1dae ---------------------------------------- ---------------------------- ,as one year of traffic on ,american railways approximates ten years on ,british railways1 the above totals for ten years on the latter may be compared with #hgfi killed and #gc1jeb injured on the former last year1 or with #aa1hci killed and #aaa1jaf injured in #aijg1 the darkest year in the annals of ,american railway accidents4 ,attention is asked to the apparently startling increase in injuries on ,british railways since #aije4 ,the increase is absolutely fictitious1 having resulted from a change in the definition of a reportable accident1 and not from any greater hazard in the working of ,british roads4 ,this confirms the objection1 expressed in the report of the ,british ,board of ,trade in #aijc1 to any changes in the form of tables extending over a long series of years that admit of comparisons1 which any change of form would invalidate if not destroy4 ,it will be perceived that the mere change in the definition of what constitutes a reportable accident increased the number of injuries reported against ,british railways fully #ej4 ,this justifies the writer's view that comparisons of injuries in railway accidents are of little value4 ,even the same injury does not affect two persons in the same degree4 ,one hollers and cries for a doctor where the other whistles and goes on with his work4 ,the inquiries of the ,board of ,trade into the causes of ,british railway accidents in #aijh confirm former findings that1 exclusive of train accidents1 in the case of passengers they mostly arise from carelessness of the passengers themselves1 and the same is true of the vast majority of accidents to employes4 ,,overwork ,,and ,,railway ,,accidents4 ,at last the statistics of the ,british ,board of ,trade furnish what well nigh amounts to demonstration that long hours play very little part as an actual cause of railway accidents4 ,under the statute the ,board requires reports of all instances of periods of duty in excess of twelve hours worked on ,british railways4 ,for the month of ,october1 #aijh1 the returns show #ca1jeb excess hours worked out of #b1ggc1hia2 and for ,october1 #aiji1 #bd1dhf out of #b1fie1jcf1 or an excess of #a4ab in #aijh and 4#ib1 in #aiji4 ,now1 out of #hfa accidents investigated in #aijh1 only #af1 or #a4he1 occurred to men working in excess of #ab hours2 and out of #hjd investigated in #aiji only #i1 or #a4ab4 ,this bears out the opinion of a high ,english official1 that experience does not show any close connection between long hours and accidents4 ,the following statement shows the relation of accidents to the hours the persons involved have been on duty on ,british railways for a period of five years3 ,,hours ,,when ,,british ,,accidents ,,occur4 ,hours on ,duty when ,accidents ,occurred ,three months ,off ---------------------------------------- to duty #ast #b;d #c;d #dth #eth #fth #gth #hth #ith#ajth ---------------------------------------- ------------------- ,sept4 #cj1 #aijh #a #bj #ah #ai #ag #ae #bc #ai #aa #aa #ag ,dec4 #ca1 #aijh #e #ab #bb #cd #ad #bc #bc #af #ad #ai #ac ,march #ca1 #aiji #d #ad #af #bi #bh #af #ag #ah #ai #aa #ab ,june #cj1 #aiji #a #ae #af #aj #ai #ae #ad #ae #af #bd #ab ---------------------------------------- ------------------- ,year #aiji #aa #fa #gb #ib #gh #fi #gg #fh #fj #fe #ed ,year #aijh #f #fj #ajc #hc #he #gg #ha #gb #gj #fc #eg ,year #aijg #a #gj #hf #gh #gh #ga #fd #ei #dh #fh #fb ,year #aijf #f #eb #fd #gj #hf #fc #ha #fh #gj #ga #fa ,year #aije #c #eb #gd #fe #ed #ga #ff #ei #dh #ec #ef ---------------------------------------- ------------------- ,five years #bg #bie #cii #chh #cha #cea #cfi #cbf #bif #cbj #bij ---------------------------------------- ------------------- table continued ,hours on ,duty when ,accidents ,occurred ,three months ,off ----------------------------------- to duty #aath #abth #acth #adth #aeth #afth #agth ---------------------------------------- -------------- ,sept4 #cj1 #aijh #a #ad #ag #c #j #j #a #j ,dec4 #ca1 #aijh #e #aa #h #e #j #j #j #j ,march #ca1 #aiji #d #ae #g #j #j #j #j #j ,june #cj1 #aiji #a #aa #e #j #j #j #j #j ---------------------------------------- -------------- ,year #aiji #aa #ea #cg #h #j #j #a #j ,year #aijh #f #ec #ce #h #h #j #j #j ,year #aijg #a #dc #ce #ad #ab #e #c #a ,year #aijf #f #db #ci #g #d #c #j #b ,year #aije #c #da #cg #g #c #c #j #a ---------------------------------------- -------------- ,five years #bg #bcj #ahc #dd #g #aa #d #d ---------------------------------------- -------------- ,it will be observed that out of these #c1ide accidents investigated and reported on by ,british inspectors during the years #aije to #aiji1 inclusive1 a majority happened during the first half of the twelve hours for which the men were booked and #b4bh when they were working overtime4 ,in no instance was the accident attributed to long hours4 ,,railway ,,accidents ,,in ,,europe4 ,excluding the returns of injured1 for the reason that no two countries have a common definition of a reportable injury1 the accidents on ,european railways1 according to the latest reports1 resulted in the following fatalities3 ,,killed ,,in ,,european ,,railway ,,accidents4 7,total mileage represented #ahb1dei47 ---------------------------------------- -------------------------- ,country ,year ,passengers,employes ,other ,total ,preceding ,persons ,year ---------------------------------------- -------------------------- ,united ,kingdom #aijh #ajg #dcb #ehg #a1abh #a1baa ,germany #aijh #aje #fjd #fdd #a1cec #a1eeh ,russia in ,europe #aije #bca #dgh #a1adi #a1heh #a1fcb ,france #aijg 7a7#cf #cbb 7b7#cja #fei #fbg ,austria #aijg #aa #adg #ade #cjc #bac ,hungary #aijg #cb #ach #agb #cdc #cai ,italy #aijg-h 7c7#db #aje #aae #bfb #bgg ,spain #aijg #be #fd #bac #cjb #bai ,portugal #aijd #ee ,sweden #aijf #aj #de #eg #aab #aje ,norway #aijh #a #d #f #aa #i ,denmark #aijg-h 7c7#a #bj #i #cj #bb ,belgium #aijg #d #gb #gj #adf #abe ,holland #aijg #c #ah #be #df #fj ,switzerland #aijg #ad #de #cf #ie #gh ,roumania #aijg-h #h #db #ej #ajj #ajc ---------------------------------------- -------- ,totals #fcj #b1ecf #c1ehj #f1hjc #f1eie ---------------------------------------- ------------------------- 7a7 ,train accidents only2 other accidents to passengers included under ,other ,persons4 7b7 ,excluding suicides4 7c7 ,statistics cover ,state railways only4 ,these figures1 representing a ,european mileage of #ahb1dei1 may be compared with those of the ,united ,states in #ahig when it had #ahc1bhd miles of line and an accident record of #bbb fatalities to passengers1 #a1fic to employes and #d1ebb to other persons2 or even with the ,american record for #aiji1 when with a mileage #bg greater the record stood #cce fatalities to passengers1 #b1def to employes and #e1igh to other persons4 ,the excess of fatalities to other persons in this country is due to the notorious indifference to danger and law of all classes of citizens in using railway right of way as a common thoroughfare for adults and playground for children4 ,despite the elevation of the tracks in ,chicago1 the writer has seen scores of youngsters scarcely able to walk playing on those raised tracks and laughing at the locomotives as they went shrieking by4 ,in all comparisons of accidents on ,american railways with those on foreign roads1 it should be remembered that our excess of mileage and freight traffic more than balance their density of passenger traffic and that nowhere else on earth is railway right of way common to foolhardy pedestrians and creeping children4 ,the ,railroad ,commission of ,indiana is to be commended for its efforts to enlist public sentiment against trespassing on railway tracks4 ,,xiii ,,railway ,,receiverships ,,in #aiji ,only five railway companies1 operating #hei miles of line1 went into the hands of receivers during the calendar year #aiji1 as compared with #bd companies1 operating #h1jji miles1 for the preceding year4 ,the capitalization of these five roads was #gh1jie1jjj1 against #eif1cei1jjj for those financially involved in #aijh4 ,the following statement gives the names1 mileage1 funded debt and capital stock of the roads for which receivers were appointed in #aiji3 ,mileage ,funded ,debt ,stock ---------------------------------------- ------------------------- ,atlanta1 ,birmingham ,atlantic #egb #ah1ecc1jjj #ce1jjj1jjj ,alabama ,terminal -- #b1dde1jjj #c1jjj1jjj ,georgia ,terminal -- #c1jjj1jjj #a1ejj1jjj ,yellowstone ,park #cb #fif1jjj #fif1jjj ,chicago1 ,peoria ,st4 ,louis #bee #e1hge1jjj #g1cej1jjj ---------------------------------------- ------------------------- ,total #hei #cj1edi1jjj #dg1edf1jjj ---------------------------------------- ------------------------- ,the number1 mileage and capitalization of the railways that have failed since #ahge are as follows1 the figures being from the ,railroad ,age ,gazette3 ,,receiverships ,,since #ahgf4 ,bonds and ,roads ,miles ,stock -------------------------------- #ahgf #db #f1ffb #dfg1jjj #ahgg #ch #c1fcg #bbj1bid #ahgh #bg #b1cbj #ib1che #ahgi #ab #a1ajb #ci1cfg #ahhj #ac #hhe #adj1bfe #ahha #e #aaj #c1gdb #ahhb #ab #iab #ci1jgd #ahhc #aa #a1iij #ajh1dgj #ahhd #cg #aa1jch #gad1gee #ahhe #dd #h1hcf #che1dfj #ahhf #ac #a1gii #gj1cdf #ahhg #i #a1jdf #ij1cah #ahhh #bb #c1bgj #ahf1had #ahhi #bb #c1hjc #ii1ffd #ahij #bf #b1ifc #aje1jjg #ahia #bf #b1aei #hd1dgi #ahib #cf #aj1ejh #ceg1fib #ahic #gd #bi1cdj #a1gha1jdf #ahid #ch #g1jbe #cie1gia #ahie #ca #d1jhi #cfi1jge #ahif #cd #e1dda #bge1eig #ahig #ah #a1ecg #ib1iji #ahih #ah #b1jfi #ach1gja #ahii #aj #a1jai #eb1bhe #aijj #af #a1afe #gh1bcd #aija #d #gc #a1fbg #aijb #e #bgh #e1hce #aijc #i #bbi #ah1hbc #aijd #h #gdd #cf1jfi #aije #aj #c1eic #agf1cba #aijf #f #bjd #ee1jdb #aijg #g #cag #ac1ehe #aijh #bd #h1jji #eif1cei #aiji #e #hei #gh1jie -------------------------------- ,total1 #cd years #gab #abh1dih #g1cgj1ebf -------------------------------- ,three figures omitted in bonds and stock column4 ,,xiv ,,cost ,,of ,,railway ,,regulation ,nothing in the record of railway development in the ,united ,states has increased with the rapidity of the cost of their regulation under the act creating the ,interstate ,commerce ,commission4 ,since the first ,commission1 composed of ,judge ,thomas ,m4 ,cooley1 of ,michigan1 chairman1 ,william ,r4 ,morrison1 of ,illinois1 ,augustus ,schoonmaker1 of ,new ,york1 ,aldace ,f4 ,walker of ,vermont1 and ,walter ,l4 ,bragg1 of ,alabama1 ,commissioners1 and ,edward ,e4 ,moseley1 ,secretary1 and ,prof4 ,henry ,c4 ,adams1 ,statistician1 to date the yearly expenditures on its account have been as follows3 #ahhh ,five ,commissioners #ig1hfg #ahhi #adi1dec #ahij #ahj1ddj #ahia #bad1hdd #ahib #bba1gde #ahic #bag1gib #ahid #bji1bej #ahie #baf1bjf #ahif #bcd1ida #ahig #bcd1iji #ahih #bcg1ceh #ahii #bch1abe #aijj #bdc1fbd #aija #bee1igi #aijb #bga1gbh #aijc #bih1hdb #aijd #cba1ecc #aije #ccj1gci #aijf #chb1ada #aijg ,seven ,commissioners #ech1hbg #aijh #gcf1ecj #aiji #ihh1icf ------------------------------------ ,from this it appears that the cost of regulating ,american railways has increased tenfold in twenty years4 ,of this only #cd1jjj is chargeable to the increase in number and compensation for the ,commission under the ,hepburn ,act4 ,of the balance it was charged by ,representative ,adair of ,indiana in a speech in ,congress last ,january that #dej1jjj annually was for ,interstate ,commerce ,detectives4 ,,xv ,,statistics ,,of ,,foreign ,,railways ,in the following review of the mileage and traffic statistics of the principal divisions of ,europe and other countries1 the information has been derived from the latest official sources wherever available1 and where estimates have been resorted to as noted they have been computed from ascertained facts4 ,miles ,covered ,capitalization ,passenger ,country ,year by or ,cost of ,revenues ,capitalization ,construction ---------------------------------------- -------------------------- ,united ,kingdom #aijh #bc1bje #f1chb1bif1gdbbjg1eci1jjd ,german ,empire #aijh #ce1eeh #c1ijc1hdh1djj #agh1ajj1djj ,france #aijg #bd1hag #c1dee1dcf1jjj #ade1cee1ddh ,russia in ,europe #aije #ca1ede 7b7#c1agj1hgf1cfj #eh1hac1ejj ,austria #aijg #ac1dbg #a1eae1egf1hjj #da1gaf1hjj ,hungary #aijg #aa1gfi #gda1ehf1bjj #bj1hcf1hjj ,italy7a7 #aijg-h #h1gfb 7c7#a1jia1fjh1jjj #ca1adi1hhf ,spain #aije #h1dcb #fdi1iai1faj #af1bae1hff ,portugal #aije #a1dbe #afb1che1bhj #d1jad1aif ,sweden #aijf #g1ich #bfg1djh1dej #aj1ffe1bgj ,norway #aijh #a1fjh #fa1hda1faj #b1bec1dbj ,denmark7a7 #aijg-h #a1aia #ei1hjf1fbj #e1aaa1iaj ,belgium #aijg #b1hga 7d7#dea1eib1ihj #ah1cdj1gij ,holland #aijg #b1bbe #aia1hba1jjj #aj1igh1djj ,switzerland #aijg #b1gdj #cjc1dbf1gdg #af1bbb1dbb ,roumania #aijg-h #a1igi #ahc1dib1jgd #e1jhi1aia ,canada #aiji #bd1ajd #a1fjh1ifc1ccg #ci1jgc1dhh ,argentine #aijg #ac1fij #hbj1dcc1bhj #ai1hec1gfj ,japan7a7 #aijh #c1ihb #aij1agc1gbh #ah1ghf1hie ,british ,india #aijh #cj1hji #a1ccf1jje1gfj #ee1acb1afj ,new ,south ,wales #aiji #c1fbc #bca1hgj1ddj #h1chj1gdd ---------------------------------------- --------- ,total #bee1gjj #bf1ghj1cfi1dahiac1fcj1cej ,united ,states #aijh #bcj1did 7e7#ab1hdj1jia1dfb #eff1hcb1gdf ---------------------------------------- -------------------------- 7a7 ,state only4 7b7 ,including ,siberian4 7c7 #aijf-g4 7d7 ,state only4 #b1edc miles4 7e7 ,exclusive of switching and terminal companies 7#a1fbf miles74 table continued2 part #b ,freight ,other ,total ,country ,year ,revenues ,revenues ,earnings ---------------------------------------- ----------------------- ,united ,kingdom #aijh #bhf1ghf1bdi #hi1efj1aae #ehc1hhe1cga ,german ,empire #aijh #dab1fce1gfj #ef1gae1bjj #fdg1dea1cfj ,france #aijg #agf1ffd1bae #f1dba1jaj #cbc1ddj1fgc ,russia in ,europe #aije #bba1ifg1ejj #ci1fgh1ejj #cbj1dei1ejj ,austria #aijg #abb1bad1bjj #e1fib1hjj #afi1fbh1hjj ,hungary #aijg #ed1fej1djj #c1cbg1jjj #gh1had1bjj ,italy7a7 #aijg-h #ea1bff1igf #f1ibi1igi #hi1cdf1hda ,spain #aije #cd1fid1eee #f1aij1bga #eg1ajj1fib ,portugal #aije #e1cbb1hge #dbc1icf #i1gfa1jjj ,sweden #aijf #ba1jea1cfj #hae1fgj #cb1egb1cjj ,norway #aijh #c1jbi1ibj #ajh1haj #e1cib1aej ,denmark7a7 #aijg-h #e1bff1cej #fhj1djj #aa1jeh1ffj ,belgium #aijg #ch1ecb1dej #heh1bga #hi1gca1eaa ,holland #aijg #aj1ffd1djj #a1cjj1jjj #bb1idb1hjj ,switzerland #aijg #ba1bjd1cca #a1fgg1eef #ci1aad1caj ,roumania #aijg-h #aj1bfi1ecj #fbi1cgc #ae1ihh1jid ,canada #aiji #ie1gad1ghc #aj1bfh1jfe #ade1jef1ccf ,argentine #aijg #ef1eig1gfj #g1egh1bdj #hc1jbi1gfj ,japan7a7 #aijh #ad1fea1hjh #a1ddh1hha #cd1hhg1ehd ,british ,india #aijh #hd1bbe1bhj #d1jhh1fdj #adc1ddf1jhj ,new ,south ,wales #aiji #ad1dcg1iha #a1ffi1hbf #bd1dhh1eea ---------------------------------------- ------ ,total #a1gda1hdh1fhcbdf1jfb1edcb1ibg1eif1egc ,united ,states #aijh #a1ffe1dai1ajh #aga1eed1ace #b1cic1hje1ihi ---------------------------------------- ----------------------- 7a7 ,state only4 table continued2 part #c ,per ,cent ,country ,year ,operating ,expense ,average ,expenses to ,passengers,journey ,revenue ,carried ,miles ---------------------------------------- -------------------------- ,united ,kingdom #aijh #cgb1ajc1iij #fc4g #a1gbe1fca1fbj #g4h ,german ,empire #aijh #dgf1bij1jhj #gc4f #a1cfa1fee1aej #ad4a ,france #aijg #ahc1ddd1ejc #ee4i #dgd1cce1cjf #ai4i ,russia in ,europe #aije #baf1ihg1ejj #fg4h #aaf1dda1jjj #gc4b ,austria #aijg #abj1ajc1hjj #gj4h #bbc1gag1cjb #ai4a ,hungary #aijg #ec1cji1jjj #fg4f #ajg1aga1jjj #ba4d ,italy7a7 #aijg-h #gc1gce1jga #hb4f #fd1bgf1eja #be4j7;f7 ,spain #aije #bg1gej1icf #dh4f #da1hdf1bdi #bf4j7;f7 ,portugal #aije #d1dbf1bcf #de4c #ac1ddf1jdc #bj4j7;f7 ,sweden #aijf #ba1fbd1hdj #ff4c #df1deb1dde #af4h ,norway #aijh #c1gbg1fbj #fi4a #aj1fgi1gcb #ae4e ,denmark7a7 #aijg-h #i1cdd1dcj #hd4e #bj1hah1fci #ba4g ,belgium #aijg #ch1dbh1hji #fd4d #aha1baf1cad #ad4j ,holland #aijg #ai1agd1djj #hc4f #db1cai1jjj #ah4d ,switzerland #aijg #bf1caa1hhc #fg4c #ig1geb1dfe #ab4h ,roumania #aijg-h #i1ehg1dfh #fj4j #h1aic1jcg #db4b ,canada #aiji #ajd1fjj1jhb #gb4a #cb1fhc1cji #fb4j ,argentine #aijg #ef1aih1jhj #fg4g #da1iaa1eab #be4b ,japan7a7 #aijh #ag1hge1iga #ea4b #aja1aae1gci #bc4c ,british ,india #aijh #hf1djh1jjj #fj4b #cba1afi1jjj #cg4g ,new ,south ,wales #aiji #ad1chj1beb #eh4g #eb1jea1eef #aa4a ---------------------------------------- --------- ,total #a1ice1hab1iea #ff4a #e1jhd1hhb1iai #af4eb ,united ,states #aijh #a1ffi1edg1hgf #fi4ge #hij1jji1egd #cb4ff ---------------------------------------- -------------------------- 7a7 ,state only4 7f7 ,estimated4 table continued2 part #d ,per ,cent ,country ,year ,freight ,tons ,average ,net ,carried ,haul ,revenues 7,miles7 to ,capital ---------------------------------------- ------------- ,united ,kingdom #aijh #dia1eie1jef #be4j #c4cb ,german ,empire #aijh #dfa1bif1gei #fa4f #d4ea ,france #aijg #aef1ejd1cec #gh4h #d4ah ,russia in ,europe #aije #aef1abi1hge #aea4a #c4gc ,austria #aijg #aea1ida1acb #ec4g #c4bg ,hungary #aijg #fa1dhc1jjj #fi4e #c4f ,italy7a7 #aijg-h #cb1fce1gfc #ff4j7;f7 #a4d ,spain #aije #bb1ffb1edh #fi4d #d4e ,portugal #aije #c1gge1eei #ed4j7;f7 #c4c ,sweden #aijf #ca1ifa1bdd #dc4d #d4bd ,norway #aijh #d1eja1dee #ce4d #b4ee ,denmark7a7 #aijg-h #d1gbf1geg #ee4a #b4ib ,belgium #aijg #gb1did1jgc #dc4e #d4gb ,holland #aijg #ae1ibd1fjj #ec4h #a4ic ,switzerland #aijg #ag1daa1gaa #fi4e #c4g ,roumania #aijg-h #f1gif1cae #ee4i #c4ed ,canada #aiji #ff1hdb1beh #aig4j #b4ea ,argentine #aijg #bg1icc1hbh #aae4i #c4ie ,japan7a7 #aijh #ah1cab1bbc #gh4g #h4i ,british ,india #aijh #fb1cih1jjj #aei4a #d4cc ,new ,south ,wales #aiji #i1bih1ibi #fh4d #d4cf ------------------------------------ ,total #a1hgf1fbe1dch #ff4g #c4ga ,united ,states #aijh #a1ecb1iha1gij #adb4e #d4ag ---------------------------------------- ------------- 7a7 ,state only4 7f7 ,estimated4 ,from the data here furnished it is possible to arrive at a close approximation of the passenger and freight rates in the countries named4 ,the average passenger journey and freight haul in the ,united ,states is nearly twice as long as the average for the rest of the world4 ,in comparing net results it should be remembered that rentals and taxes should be deducted from the ,american figures4 ,for further details of the railways of ,canada1 the ,united ,kingdom and the ,german ,empire1 for which complete statistics are available1 the reader is referred to succeeding pages4 ,here the writer would acknowledge the courtesy of the ,railway ,department of ,canada for advance copies of the ,dominion railway statistics for #aiji4 ,,railways ,,of ,,canada4 ,,statistics ,,of ,,the ,,railways ,,of ,,the ,,dominion ,,for ,,the ,,years ,,ending ,,june #cj1 #aijg1 #aijh ,,and #aiji4 #aijg #aijh #aiji ---------------------------------------- ----------------------------- ,miles of line operated #bb1fjh #bb1iff #bd1ajd ,second track #a1jif #a1baa #a1dfd ,yard track and sidings #d1jib #d1edf #d1gfa ---------------------------------------- ---- ,all tracks #bg1gif #bh1gbc #cj1cbi ,capital cost3 ,stock #ehh1efc1eia #fjg1dbe1cdi #fdg1ecd1fdg ,funded debt #ehc1cfi1bag #fca1hfi1ffd #ffj1idf1gfi ,government railways #ajj1ieh1djb #aji1dbc1ajd #aaa1ede1ijc ,subsidies #afb1jag1aeg #aff1bia1dhb #ahh1ifc1ccg ---------------------------------------- ---- ,total capital cost #a1dcd1ijh1cfg #a1eae1jji1eii #a1fjh1iij1fef ,per mile of line #fc1iaj #fe1ifh #ff1geb ,passenger traffic3 ,passengers carried #cb1acg1cai #cd1jdd1iib #cb1fhc1cji ,pass4 carried #a mile #b1jdi1edi1hac #b1jha1ifj1hfd #b1jcc1jja1bbe ,average journey 7miles7 #fd #fa #fb ,average pass4 per train #ef #ed #ea ,mileage of pass4 trains #cj1bbj1dfa #ca1iej1cdi #cb1bie1gcj ,mileage of mixed trains #e1iga1dad #f1baj1hjg #g1jfa1ehj ,receipts from pass4 #ci1ahd1dcg #ci1iib1ejc #ci1jgc1dhh ,receipts per pass4 mile 7cents7 #a4iaa #a4ibj #a4iba ,freight traffic3 ,tons carried #ef1dig1hhe #fc1jai1ijj #ff1hdb1beh ,tons carried #a mile #aa1fhg1gaa1hcj #ab1ifa1eab1eai #ab1ifa1eab1eai ,average haul 7miles7 #ahc #bjf #aig ,freight train mileage #ch1ibc1hij #dj1dgf1cgj #dj1cjd1ijf ,average tons per train #bfj #bgh #bgh ,receipts from freight #id1iie1jhg #ic1gdf1fee #ie1gad1ghc ,receipts per ton mile 7mills7 #h4ab #g4bc #g4bg ,miscellaneous receipts #ab1eeh1fhi #ac1agi1aee #aj1bfh1jfe ,total receipts #adf1gch1bad #adf1iah1cac #ade1jef1ccf ,expenses of operation3 ,way and structures #bj1hhg1jib #bj1ggh1faj #ba1aec1bgd ,maintenance of equipment #ba1fff1cgc #bj1bgc1fbf #ba1eaj1cjc ,conducting transportation #eg1cbe1edc #fb1dhf1bgj #ed1bhd1ehg ,general expenses #c1hfi1ffd #c1gfe1fcf #c1hec1jid ,traffic expenses -- -- #c1gih1hbd ---------------------------------------- ---- ,total expenses #ajc1gdh1fgb #ajg1cjd1adb #ajd1fjj1jhb ,ratio to earnings #gj4gb #gc4jd #gb4aa ,net receipts #db1ihi1eeb #ci1fad1aga #dj1def1bea ,percentage to capital cost #c4jj #b4fa #b4ea ,gross receipts per mile #f1ece #f1cih #f1jah ,gross expenses per mile #d1fba #d1fgb #d1cci ,number of employes #abd1jab #ajf1djd #abe1aie ,compensation #eh1gai1dic #fj1cgf1fjg #fc1baf1ffb ,prop4 of gross earnings #dj4jb #da4aj #dc4eh ,prop4 of operating expenses #ef4fa #ef4bg #fj4dc ,average per employe per year #dgc #efi #eje ---------------------------------------- ----------------------------- ,,railways ,,of ,,the ,,united ,,kingdom4 ,,statistics ,,of ,,mileage1 ,,capitalization1 ,,and ,,traffic ,,for ,,the ,,years #aijg ,,and #aijh4 #aijg #aijh ---------------------------------------- ------------------------------ ,length of railways3 ,double track or more 7miles7 #ab1hde #ab1ibf ,single track #aj1bfc #aj1bgi ------------------------------ ,total length of line #bc1ajh #bc1bje ,total length1 all tracks1 sidings1 etc4 #ec1aeh #ec1ffi ,total capitalization 7paid up7 #f1cjb1jii1ggc #f1chb1bif1gdb ,capitalization per mile of line #bgb1gbc #bge1jdj ,passenger traffic3 ,passengers carried #a1bei1dha1jjj #a1bgh1aae1jjj ,season ticket journeys #dde1aja1ief #ddg1eaf1fbj ,passengers carried one mile #ac1bie1gdg1jeh #ac1dei1ibf1fcf ,average journey 7miles7 #g4h #g4h ,receipts from passengers #bje1jcf1gdj #bjg1eci1jjd ,average receipts per passenger per mile 7cents7 #a4ed #a4edb ,mail and other passenger train receipts #dc1bac1fcb #dd1jfg1jdc ,freight traffic3 ,minerals1 tons carried #djg1fjb1agg #chh1dbd1eda ,general merchandise #ajh1bhd1ici #ajc1agj1eae ,total freight1 tons #eae1hhg1aaf #dia1eie1jef ,tons carried one mile #ab1hig1agg1ijj #ab1bhi1hgf1djj ,average haul 7miles7 #be #be ,receipts from freight #bih1jeh1faj #bhf1ghf1bdi ,average receipts per ton mile 7cents7 #b4ca #b4ccc ,miscellaneous receipts #de1fcd1fdh #de1dic1jge ------------------------------ ,total receipts #eia1idc1fcj #ehc1hhe1cga ,expenses of operation #cgc1jhe1hdj #cgb1ajc1iij ,ratio of expenses to earnings #fc4j #fc4ge ,net receipts #bah1heg1gij ,percentage to total paid-up capital #c4dg ,gross receipts per mile #be1faf #be1afb ,gross expenses per mile #af1afe #af1jce ,number of employes #fba1cda 7a7#fba1cda ,total compensation #aeh1aaf1efj #aef1cdh1iae ,proportion of gross earnings #bf4g #bf4gh ,proportion of operating expenses #db4d #db4jb ,average per employe per year #bed4dg #bea4gh ---------------------------------------- ------------------------------ 7a7 ,no enumeration of employes has been made since #aijg1 the last preceding1 in #aijd1 gave a total of #eha1ffd4 ,,railways ,,of ,,germany4 ,,statistics ,,of ,,mileage1 ,,cost ,,of ,,construction1 ,,and ,,traffic ,,for ,,the ,,years #aijf1 #aijg ,,and #aijh4 #aijf #aijg #aijh ---------------------------------------- ----------------------------- ,length of ,state railways 7miles7 #cb1jej #cb1cfg #cb1ibb ,length of private railways #b1eac #b1fac #b1fcf ---------------------------------------- -- ,total #cd1efc #cd1ihj #ce1eeh ,cost of construction #c1fac1dic1gjfc1gfg1bbj1gggc1ijc1hdh1djj ,cost per mile #ajd1edh #ajg1fid #aji1ghh ,passenger traffic3 ,passengers carried #a1bji1bbd1jgb #a1bid1hha1ibc #a1cfa1fee1aej ,passengers carried 7one mile7 #ag1ahi1ccf1idjah1cgb1fdd1cbgai1bjb1ice1 abj ,average journey 7miles7 #ad4ba #ad4ah #ad4aj ,receipts from passengers #agj1afe1jjb #agb1cci1eic #agh1ajj1djj ,receipts per passenger per mile 7cents7 #j4ii #j4id #j4ic ,freight traffic3 ,fast freight and express3 ,tons carried #c1gia1gfi #c1ice1ech #d1jac1igj ,tons carried #a mile #bfe1aae1gbj #bgb1hih1bga #bfi1gbf1jdj ,average haul 7miles7 #fi4ia #fi4cd #ff4if ,receipts from same #af1ibd1jhj #ag1bie1ifi #ag1jae1jdj ,receipts per ton mile 7cents7 #f4ch #f4cd #f4cb ,all freight3 ,tons carried #dee1add1chb #dhd1adg1cbe #dfa1bif1gei ,tons carried one mile #bh1aah1fbj1fhjbi1gjb1iha1adibi1dbj1fhj1 cdj ,average haul 7miles7 #fa4gh #fa4ce #fa4fj ,receipts from freight #cig1ehj1gch #dah1jba1jeb #dab1fce1gfj ,receipts per ton mile 7cents7 #a4da #a4da #a4db ,miscellaneous receipts #fc1aea1jfj #fh1dac1iji #ef1gae1bjj ---------------------------------------- -- ,total receipts #fcj1gif1hjj #feh1ggd1eed #fdg1dea1ejc ,expenses of operation #djg1agd1djj #ded1faj1jcb #dgf1bij1jhj ,ratio expenses to earnings #fd4e #fi4a #gc4f ,net receipts #bbc1fbb1djj #bjd1fde1ebb #aga1bfa1jdj ,percentage on cost of construction #f4ah #e4db #d4ea ,gross receipts per mile #ah1bea #ah1hcc #bh1agc ,gross expenses per mile #aa1ghj #ab1iif #ac1dhi ,number of employes #fdh1dcg #fie1eeg #fii1aee ,total compensation #bai1cij1icb #bde1chi1hei #bei1fjf1efj ,prop4 of gross earnings #cd4gh #cg4be #dj4aj ,prop4 of operating expenses #ec4hh #ec4ih #ed4ej ,average per employe per year #cch4ce #ceb4hb #cga4jj ---------------------------------------- ----------------------------- ,mark the increased capital cost per mile and in proportion of wages to earnings1 and the increased ratio of net earnings to cost of construction4 ,then figure how long it will take at this rate before the ,german people are taxed to support their railways or by increased rates because the railways have been run for politics and not for the people4 ,,xvi ,,growth ,,of ,,railways ,in three-quarters of a century ,american railways1 from small beginnings in ,pennsylvania in #ahbg1 ,maryland in #ahbh1 ,south ,carolina in #ahcj1 and ,new ,york and ,massachusetts in #ahca1 show the following remarkable growth by decades3 ,,progress ,,of ,,railways ,,in ,,the ,,united ,,states ,,since #ahce4 ---------------------------------------- ------------------------- #aiji ,states #ahce #ahdj #ahej #ahfj #ahgj #ahhj #ahij #aijj ,incom- plete ---------------------------------------- ------------------------- ,alabama #df #df #ge #gdc #a1dbi #a1hea #c1adh #d1bai #e1jcg ,arkansas #ch #bef #hif #b1aac #c1cda #d1hhc ,california #bc #ibe #b1bbj #d1adh #e1gdd #f1hce ,colorado #aeg #a1eca #d1aed #d1ehg #e1bie ,connecticut #ajb #djb #fja #gdb #ied #a1jjg #a1jbc #a1jae ,delaware #af #ci #ci #abg #bbd #bhj #cbh #cdf #cdb ,florida #ba #djb #ddf #ecj #b1cij #c1bgb #d1jaj ,georgia #ahe #fdc #a1dbj #a1hde #b1ece #d1aje #e1fci #f1hfh ,idaho #bbj #ida #a1bfa #a1gfc ,illinois #aaa #b1gii #d1hbc #g1iee #i1hdcaj1iigac1baf ,indiana #bbh #b1afc #c1agg #e1ded #e1hia #f1dfi #g1ggd ,iowa #fee #b1fhc #e1bce #h1cdg #i1ahj #i1ibc ,kansas #a1eja #c1dci #h1hjf #h1gai #i1abe ,kentucky #ae #bh #gh #ecd #a1jag #a1eih #b1fid #c1jei #c1dhd ,louisiana #dj #dj #hj #cce #dgi #fcc #a1feh #b1hbd #d1gcg ,maine #aa #bde #dgb #ghf #a1jac #a1cac #a1iae #b1aej ,maryland and ,d4,c4 #aag #bac #bei #chf #fga #a1jab #a1afh #a1djg #a1dfh ,massachusetts #aac #cjaa1jce #a1bfd #a1dhj #a1hic #b1jid #b1aah #b1abf ,michigan #ej #cdb #ggi #a1fch #c1ica #f1ghi #h1aic #h1igf ,minnesota #a1jgb #c1ajh #e1dff #f1idb #h1bhe ,mississippi #ge #hfb #iij #a1ahc #b1bib #b1iai #d1afi ,missouri #hag #b1jjj #d1jaa #e1hig #f1hfg #h1bjj ,montana #dh #b1aha #c1jaj #c1ecg ,nebraska #a1hab #b1jjj #e1bgd #e1fhd #f1jii ,nevada #eic #gfi #ibe #iji #a1fii ,new ,hampshire #ec #dfg #ffa #gcf #a1jae #a1acc #a1bci #a1bdh ,new ,jersey #ii #ahf #bjf #efj #a1abe #a1gja #b1jcd #b1bcg #b1cjb ,new ,york #ajd #cgda1cfa #b1fhb #c1ibh #f1jai #g1dfb #h1aba #h1ejd ,north ,carolina #ec #aed #icg #a1agh #a1dii #b1ijd #c1hjh #d1dgf ,north ,dakota #ce #fce #a1idj #b1gca #d1jbf ,ohio #cj #ege #b1idf #c1ech #e1iab #g1gai #h1ggd #i1bgd ,oklahoma #bge #a1bac #b1aej #e1egb ,oregon #aei #ehb #a1bfi #a1gbc #a1ici ,pennsylvania #cah #geda1bdj #b1eih #d1fef #f1bdc #h1cjgaj1bggaa1ceg ,rhode ,island #ej #fh #ajh #acf #baj #bab #bab #bab ,south ,carolina #acg #acg #bhi #igc #a1aci #a1dbi #b1jif #b1gie #c1cbd ,south ,dakota #cj #fcj #b1dhe #b1hej #c1gjc ,tennessee #a1bec #a1dib #a1hbd #b1gaj #c1abd #c1gfa ,texas #cjg #gaa #c1bic #g1iaa #i1hgcab1ihg ,utah #beg #ggj #a1jij #a1edg #a1ihf ,vermont #bij #eed #fad #iab #iac #a1jab #a1jid ,virginia #ic #adg #chd #a1cgi #a1dhf #a1hbf #c1adb #c1gbi #d1ahg ,washington #bgd #a1fii #b1hij #c1hjf ,west ,virginia #chg #fid #a1cjf #b1aih #c1cee ,wisconsin #bj #ije #a1ebe #c1acj #e1dfh #f1dif #g1fbf ,wyoming #dgb #ida #a1bbh #a1ebf ,arizona #chd #a1jfa #a1eaa #a1icj ,new ,mexico #fdc #a1bhd #a1geb #b1ifg ---------------------------------------- ------------------------- ,total #a1jihb1hahi1jbacj1fceeb1ibbic1fgaaei1bg a #aib1idj -- ---------------------------------------- ------------------------- ,the most striking feature of this statement is the number of states devoid of railway mileage previous to #ahgj1 which since then the railways have converted into mighty commonwealths whose resources have been multiplied some thirty fold1 some sixty and some an hundred4 ,and those to which the railways have made the greatest prosperity possible are the states whose politicians today are trying the hardest to muzzle the ox that treads out the corn for their people4 ,,growth ,,of ,,railways ,,of ,,the ,,world4 ,in the following table is given the mileage of the principal countries in the world from the earliest date available to the latest3 ,miles of ,road ,completed ,country ---------------------------------------- -------------- ,opened #ahdj #ahej #ahfj #ahgj #ahhj #ahhi #ahii #aiji7;b7 ---------------------------------------- -------------------------- ,great #ahbe #a1hegf1fbaaj1dccae1ecgag1icc #ai1idcba1fff #bc1bje ,britain ,united #ahbg #b1hahi1jbacj1fbfeb1ibbic1bifafj1edd #bcd1ahb ,states ,canada #ahcf #af #ff #b1jfe #b1fag #g1aid #ab1eheag1bej #bd1ajd ,france #ahbh #a1gad #e1gjjaa1adbaf1bge #ba1hiibf1bbi #bi1cfd ,germany #ahce #cdac1fcg #f1igiaa1gbibj1fic #bd1hdeca1chf #ce1eeh ,belgium #ahce #bjg #eed #a1jgd #a1gii #b1cii #b1ggf #b1hcc #b1hga ,austria #ahcg #hag #a1hac #c1gij #g1jhc #i1cdeaa1iba #ac1dbg 7proper7 ,russia in #ahch #caj #ihh #g1jihad1jbf #ag1ecdbf1hhi #ca1ede ,europe ,italy #ahci #ac #bfe #a1aag #c1hbe #e1cdj #g1hcj #i1ggj #aj1cab ,holland #ahci #aj #aaj #bjh #hgd #a1adc #a1fcb #a1iff #b1bbe ,switzerland #ahdd #ae #fec #hhe #a1eif #a1hfi #b1cdb #b1gdj ,hungary #ahdf #acg #a1jjd #b1aeg #d1dba #f1geaaj1fai #aa1gfi ,denmark #ahdg #bj #fi #dgj #ige #a1bag #a1gfd #b1ada ,spain #ahdh #ag #a1aij #c1djj #d1eej #e1iea #h1beb #h1dcb ,chili #ahea #abj #deb #a1ajj #a1hja #b1gia #b1ici ,brazil #ahea #acd #ejd #b1agd #e1edf #i1aie #aj1gac ,norway #ahed #db #fib #igj #igj #a1bca #a1fjh ,sweden #aheh #cge #a1jhi #c1fed #d1hii #f1ffc #h1cba ,argentine #aheg #fcg #a1ecf #d1ejfaj1jac #ac1fij ,republic ,turkey in #da #cib #gbg #a1jbd #a1ijj #a1ifg ,europe ,peru #dg #bdg #a1agi #iic #a1jce #a1ccb ,portugal #db #ddd #gaj #a1ahh #a1dge #a1fhi ,greece #ahfi #f #g #daf #fjd #gga ,uruguay #ahfi #fa #bfh #cii #iig #a1baj ,mexico #ahfh #bae #fee #e1jab #h1ejc #ac1fab ,roumania #aeb #hei #a1ecg #a1ibj #ai1idb ,australia7a7 #ghi #d1hejaa1aaa #af1ejb ,japan #ahgd #ge #edb #c1fcb #e1gee ,british #ahec #hch #d1gga #i1afb #ae1hhgbc1ebc #cj1egf ,india ,china #ahhc #abd #dja #d1afb ,africa #ehc #b1hgc #e1cec #ah1eaf ---------------------------------------- -------------------------- 7a7 ,including ,new ,zealand4 7b7 ,or latest figures4 ,,recommendations ,in conclusion ,i would reiterate the following recommendations3 ,,railway ,,statistics4 ,that the ,bureau of ,railway ,statistics and ,accounts1 now a division of the ,interstate ,commerce ,commission1 be transferred to the ,department of ,commerce and ,labor4 ,that its statistics be confined to the affairs of operating railway companies1 the only carrier companies engaged in ,interstate ,commerce4 ,that its inquiries be confined to the data necessary to furnish the public with a comprehensive knowledge of railway conditions and operations in the ,united ,states from year to year4 ,that these statistics be devoted to publicity and not to the promotion of personal or official theories4 ,,accidents4 ,that ,congress provide for an official investigation of all railway accidents in the ,united ,states along the lines so successfully adopted in the ,united ,kingdom1 and not in a spirit of hostility to the railways1 as proposed in pending legislation4 ,this investigation should be through a ,bureau of the ,department of ,commerce and ,labor1 composed as follows3 ,one ,chief ,inspector4 ,ten ,district ,inspectors1 one for each ,interstate ,commerce group1 appointed from ,engineer service of the ,united ,states ,army1 with the rank of ,major4 ,this would insure fitness and impartiality for the work and valuable experience in regard to railway operations to the ,army ,engineers4 ,three ,deputy ,inspectors for each group4 ,three ,assistant ,inspectors for each group4 ,several groups might require four inspectors of each class1 and as many could get along with two4 ,enough money could be deducted from the ,interstate ,commerce ,commission appropriation to pay these officials liberally1 so as to secure competent service1 without crippling the legitimate work of the ,commission4 ,respectfully submitted1 ,,slason ,,thompson4 ,,index ,page ,abuses1 old1 reformed1 #bad ,accidents1 decrease in #aiji1 #cga ,accidents1 effect of freight traffic on1 #cgh ,accidents1 fatalities in1 since #ahhh1 #cge ,accidents on ,british railways1 #cgi ,accidents on ,european railways1 #chb ,accidents1 overwork seldom cause of1 #cha ,accidents1 train1 causes of1 #cgi ,acworth1 ,w4 ,m41 on relations of railroads to the state1 #bbj ,acworth1 ,w4 ,m41 testimony before ,senate committee1 #bhc ,additional lines1 little room for1 #dg ,advances in railway rates1 concerning1 #bfa ,african ,cape government railroads1 #bca ,agricultural implements1 freight rates on1 #ajh ,agricultural products and freight rates1 #ahc ,air brakes1 introduction of1 #aai ,allegheny ,mountains1 elevations1 #ca ,american railways by states1 #ahce to #aiji1 #cia ,area1 number of miles to1 in #ahfi1 #acd ,australian railways under government ownership1 #bba1 #bcb ,automatic couplers1 #abj ,automatic mechanical stop1 #cbj ,automatic signaling1 #abd ,bacon1 ,lord1 on the necessity of easy transportation1 #e ,bananas1 relation of freight rate to price1 #ig ,beaulieu1 ,leroy1 on ,american railways1 #gi ,belgian railroads owned by the state1 #bbj ,bills1 multitude of1 affecting railways1 #fh ,block signaling1 evolution of1 #abc ,block signals1 miles protected by1 #aijh1 #aiji1 #cbj ,brewer1 ,judge1 on the right to change rates1 #bff ,british railway commission discussed1 #bdh ,british railways1 slow growth of1 #bdc ,british railways1 statistics of1 #chi ,brown1 ,w4 ,c41 on the freight rate situation1 #ajg ,business suit1 freight rates on a1 #aaj ,butter1 freight rates on1 #aaa ,butter1 price of1 little affected by freight charge1 #ia ,canada railways1 statistics of1 #chh ,canals1 beginnings of ,american1 #aj ,canal construction1 revival of1 #ag ,canals1 scarcity of capital for1 #ah ,capital expenditure of ,british1 ,german and ,american railways1 #bea ,capital for improvements the railway problem of to-day1 #baa ,capital1 increased cost of1 #agf ,capital needed for ,southern railways1 #fa ,capital1 private1 develops river traffic1 #ab ,capitalization1 #aiji1 #ccg ,capitalization1 foreign railways1 #cdd ,capitalization1 net1 #aijd-aiji1 #cci ,capitalization of turnpikes1 #af ,capitalization1 ,pres4 ,roosevelt rejects claims of over1 #ajg ,car construction1 #abh ,car service operation1 #cef ,cars1 number and capacity1 #aijb to #aiji1 #cag ,chicago1 ,burlington and ,quincy ,r4 ,r41 condition of1 #gb ,civil war1 importance of railways during1 #aah ,class rates1 no change in certain1 since #ahig1 #afe ,coastwise commerce first developed1 #ae ,clothes we wear1 freight rates on1 #ajh ,commission1 ,interstate ,commerce1 its creation and purpose1 #bjh ,commissions have advantages over legislatures1 #bjh ,commodities1 proportions of various1 moved1 #cee ,comparison of ,american and ,english loads1 #hb ,competition has ceased to regulate1 #bcc ,competition1 public facilities increased by1 #beb ,conflict between competitive and uniform rates1 #hc ,congress1 conditions confronting1 in #aiji1 #bhh ,construction1 cost of1 #cdb ,control by democracy1 #bbi ,cooking utensils1 freight rates on1 #ajh ,cooley1 ,judge1 on superhuman task of fixing rates by ,commission1 #bgc ,cost of ,american and foreign railways compared1 #ej ,cost of living1 #cbi ,cost1 original1 of ,penn ,r4 ,r41 ,harrisburg to ,pittsburg1 #cf ,corporate entities necessary to railway construction1 #bjf ,cotton1 effect of freight charge on1 #ie-ii ,cotton1 freight rates on1 #aaj ,crackers1 relation of freight charge to price1 #ii ,cummins1 ,senator1 on physical value of railways1 #cdc ,daily compensation of employes1 average1 #ahib to #aijh1 #cbd ,damages and injuries to persons1 #cfe ,dead weight hauled in mail service excessive1 #adi ,decisions of ,i4 ,c4 ,c4 reducing rates1 #cja ,depreciation of money1 significance1 #aib ,development of railways1 #de ,depression1 #aijh1 effect of1 #bif ,depression of #aijh1 effect on ,c4 ,b4 ,q4 pay roll1 #fg-ga ,difficulties under the present law1 #baf ,diminished purchasing power of railway earnings1 #afe ,discriminations once the rule without objection1 #bja1 #bac ,distribution of gross earnings1 #aiji1 #cfa ,dividends1 #aijh1 exaggerated1 #bib1 #cdj ,dollar purchases less labor or commodities now than #ahig1 #aff ,dressed beef1 freight rates on1 #aaa ,early history of railroads1 #aaf ,early methods of travel1 #f ,earnings and expenses1 #aijh-aiji1 #ceh ,earnings1 gross1 calendar years #aijg1 #aijh1 #aiji1 #bif ,eggs1 freight rates on1 #aaa ,eggs1 price slightly affected by freight charge1 #ia ,employes1 average daily compensation1 #ahib-aiji1 #cbd ,employes1 number and compensation1 #aiji1 #cba ,employes1 pay of foreign1 #cbf ,enlightened public opinion the hope of the railways1 #bcg ,equipment cost1 #ahig-aijg1 #aid ,equipment of ,american railways1 #aiji1 #cad ,equipment1 output1 #ahii to #aiji1 #cad ,equipment requirements for replacement1 #cae ,erie railroad completed to ,lake ,erie1 #aag ,ethics of railroad operation high and just1 #bjb ,european wars1 effect on ,american development1 #aa ,expenses1 calendar years #aijg1 #aijh1 #aiji1 #big ,express1 receipts from carrying1 #cej ,farm animals and freight rates1 #ahd ,farms better investments than railways1 #gg ,fatalities1 proportion of1 to traffic1 #ach ,fink1 ,henry1 on the right to increase rates1 #bha ,flour1 effect of freight charge on price1 #if ,flour1 freight rates on a sack of1 #aaj ,food stuffs1 relation of freight charge to price1 #aja ,foreign railways1 mileage of1 #caj ,foreign railways1 ratio to area and population1 #caj ,foreign railways1 statistics of1 #chf ,freight car performance1 #aijh-aiji1 #cai ,freight car shortages and surplus1 #aijg-aiaj1 #cah ,freight cars1 number and capacity1 #aijb-aiji1 #cag1 #cah ,freight moved ten miles for three cents1 #di ,freight rate primer1 #ajg ,freight rates decrease in #ahig-aijg1 #ahj ,freight rates1 low1 encourage production1 #ij ,freight service compared with mail service1 #aea ,freight traffic1 #aijh-aiji1 #ceb ,freight traffic1 statistics of1 #ahhh to #aiji1 #ced ,french railway employes1 number of1 #cbi ,french system vicious1 #bce ,fuel1 cost of1 #ahii to #aiji1 #cfg ,fuel1 cost of1 in several states1 #agj ,fuel for locomotives1 cost of1 #afh ,german railway employes1 number and pay of1 #cbh ,german railways owned and operated by the state1 #bbj ,germany1 railway statistics of1 #cij ,gibb1 ,sir ,george ,s41 on ,railway ,nationalization1 #bch ,government assistance sought1 #ab ,government may not usurp management of railways1 #bjg ,government ownership must assume all risks1 #bei ,gradients on first ,pennsylvania railroad1 #bb-bf ,grade crossings1 elimination of1 #acc ,growth of the railways1 #acg-cia ,harbors insignificant compared to railroad yards1 #eb ,harrisburg to ,pittsburg1 location of road from1 #ba ,hazard1 decreased1 to train crews1 #cgg ,heating cars1 #abi ,heurteau1 ,emile1 on ,american railway system1 #bhb ,hides1 relation of freight rates to price1 #ih ,high grade tonnage1 increase in1 #aij ,highways in the #ahth century1 #i ,hill1 ,james ,j41 speeches at ,seattle and ,tacoma1 #de ,home markets1 ,americans turn to1 #aa ,hostility to railroads1 reasons therefor1 #bda ,household furniture1 freight rates on1 #aji ,human element in operation1 #ace ,improvements1 demand for1 imperative1 #bjc ,improvements1 postponement of1 #fh ,income account1 #aijh1 #bib ,income account1 calendar year #aiji1 #bih ,income account of leased roads1 #cfj ,increasing cost of railway maintenance and operation1 #fg ,injuries to persons and damages1 #cfe ,interrelation of rates1 #bge ,interlocking signals1 #abe ,interstate ,commerce ,law contradictory1 #bja ,iron ore1 relation of freight charge on1 to industry1 #ajj ,isolation of interior settlements1 #g ,italian railways owned by the state1 #bba ,knapp1 ,chairman ,i4 ,c4 ,c41 letter to ,senate committee1 #bhe ,knapp1 ,chairman ,i4 ,c4 ,c41 analysis of same1 #bhf ,knapp1 ,chairman ,i4 ,c4 ,c41 on fair returns for railway investments1 #aac ,kruttschnitt1 ,julius1 on railway mail pay1 #adb ,land grants unremunerative to railways1 #gf ,lane1 ,commissioner ,i4 ,c4 ,c41 on relation of capitalization to rates1 #hd ,leather belting1 freight rates on1 #aab ,legislation adds to expense of railways1 #gd ,lighting cars1 #acj ,lincoln1 ,abraham1 in ,mississippi bridge case1 #aca ,living1 cost of1 #cbi ,living1 cost of1 for normal families1 #aija1 #ccj ,locomotives1 cost1 #ahig-aijg1 #aid ,locomotives1 cost to build in ,australia1 #caf ,locomotives1 development1 #abi ,locomotives1 hauling power measured by weight1 not revenues1 #adi ,locomotives1 number and capacity1 #aijb to #aiji1 #cae ,low freight rates1 how made possible1 #ajd ,lumber1 relation of freight charge to price1 #ajj ,mail carrying made unremunerative1 #adc ,mail cars stronger and cost more1 #adf ,mail pay1 railway1 #adb ,mail1 receipts for carrying1 #cej ,mail1 receipts from1 compared with other receipts1 #add ,mail routes1 effect of heavy traffic on1 #aee ,management1 railway1 a learned profession1 #baj ,manufactures earn more than railways1 #gg ,margin between earnings and expenses narrow1 #aad ,massachusetts railroad commission commended1 #bcf ,meat1 effect of freight charge on price1 #ib ,mexican railway situation1 #bbf ,mileage by states1 #aijg1 #aijh and #aiji1 #cjg ,mileage of ,american railways1 #aiji1 #cjf ,mileage1 ratio to area and population1 #cjg ,mileage1 #ahij to #aiji1 #cjh ,miles built in #ahij-aiji1 by states1 #cjh ,mississippi river1 first bridge across1 #aca ,money for improvements must be earned or borrowed1 #ej ,municipal bodies unfitted for business enterprises1 #bef ,mc,cain1 ,c4 ,c41 on diminished purchasing power of railway earnings1 #afe ,mc,pherson1 ,logan ,g41 on transportation charge and prices1 #ij ,national aid for internal improvements1 #ai ,national ,board of ,trade opposes changes in ,i4 ,c4 ,law1 #bij ,national development and the railways1 #aab ,nationalization1 arguments for1 #bdf ,nationalization1 arguments against1 #bdg ,nationalization of the railways1 #bch ,nationalized railways a field for social experiments1 #beg ,new ,england1 early railways of1 #h ,nomenclature1 changes in1 #bic ,ores1 relation of freight rates to values1 #ih ,ownership of ,american railways1 #cde ,ownership of the ,great ,northern1 #ih ,owners of railways not opposed to nationalization1 #bch ,pacific ,northwest1 railways of1 #de ,panic of #ahcg1 effect on railways1 #aag ,passenger cars1 number1 #aijb-aiji1 #cag ,passenger service compared with mail service1 #aea ,passenger traffic1 #aiji1 #cdf ,passenger traffic1 relation of accidents to1 #cgf ,passenger traffic1 statistics concerning1 #ahhh to #aiji1 #cdh ,pay1 increase in average daily compensation1 #ccd ,pay of ,british railway employes1 #cbf ,pay of foreign railway employes1 #cbg ,pay roll1 proportion to gross earnings1 #ahii-aiji1 #cbe ,pennsylvania ,r4 ,r4 ,co41 first report of engineer1 #ba ,pennsylvania ,r4 ,r4 ,co41 how located1 #bd ,pennsylvania ,r4 ,r4 ,co4 in #ahdh and #aiji1 #dd ,pennsylvania ,r4 ,r4 ,co4 owned by #ej1jjj people1 #bah ,petroleum1 relation of freight charge to price of1 #ii ,physical valuation and rate making1 #hc ,physical valuation1 ,senator ,cummins on1 #cdc ,policy of fairness and liberality needed1 #fb ,popular hostility to the railroads1 #bab ,postal cars1 increasing cost of1 #aeh ,postal cars1 pay for1 #aeg ,postal deficit1 cause of1 #afj ,potatoes1 effect of freight charge on price1 #ib ,poultry1 freight rates on1 #aaa ,preference1 undue1 would increase under nationalization1 #bee ,pre-railway era in ,america1 #e ,pre-railway era in ,england1 #e ,prices and actual rates1 #aia ,prices1 relative1 wholesale1 #ahb ,prices1 retail1 ,london and ,new ,york1 #ccf ,prices1 retail1 of principal articles1 #ahij-aiji1 #chb ,priestley1 ,neville1 on ,american railways1 #gh ,private capital1 dependence on1 #hg ,private corporations1 railway companies are1 #bjg ,private property1 railways are1 #ge ,problems confronting railways1 ,daniel ,willard on1 #ff ,problems of construction and operation essentially different1 #bdd ,problems1 railroad1 of to-day1 ,j4 ,b4 ,thayer on1 #baa ,property rights involved in fixing rates1 #bff ,proportion of pay roll to gross earnings1 #ahii-aiji1 #cbe ,prosperity of the country depends on prosperous railways1 #aae ,public and the railroads1 ,john ,c4 ,spooner on1 #bje ,public approval and the railroads1 ,e4 ,p4 ,ripley on1 #aii ,public be damned1 origin of saying1 #bjj ,public control and private ownership1 are they compatible81 #bjd ,public sentiment rules in the ,united ,states1 #bjj ,public service of ,american railways1 #cdf ,rails1 their evolution1 #acb ,railway mail pay in #ahii reported not excessive1 #acb ,railways1 ,american1 are private property1 #ge ,railways essential to happiness of ,american people1 #bje ,railways1 situation of1 to-day1 ,frank ,trumbull on1 #hj ,rates before the era of railways1 #e ,rates by ,i4 ,c4 ,c41 groups1 #ahig-aijh1 #ahf ,rates1 discussion of how made1 #bgb ,rates in ,united ,states must be elastic1 #bgg ,rates made to get the business1 #gd ,rates measured in money1 #ahig-aijg1 #ahd ,rates must fluctuate to meet conditions1 #bgh ,rates1 true principle of making1 recognized from the first1 #dc ,raw materials1 how rates are adjusted on1 #ajd ,reasonable rates1 right to make1 fundamental1 #bfe ,rebates past1 #bjb ,receiverships1 railway1 since #ahgf1 #chd ,reduction in railway mail pay not warranted in #ahii1 #adf ,reductions1 no1 without the right to advance1 #bhj ,relations of railways to the state1 #bbj ,relative cost of mail1 freight and passenger service1 #aeb ,refrigerators1 freight rates on1 #aji ,regulate1 how shall government1 #bcc ,regulation1 cost of1 #agd ,regulation1 cost of1 increase since #ahhh1 #che ,regulation of ,american railways1 #cjj ,regulation1 just1 welcomed by the railways1 #bae ,results1 comparative1 #ahhi1 #ahii and #aiji1 #bie ,retrospect of four years1 #hj ,returns from mail1 freight and passengers compared1 #adh ,revolution1 highways before and after1 #h ,right of railways to fix rates recognized1 #bfb ,ripley1 ,e4 ,p41 on the railways and public approval1 #aii ,risk in railway investments1 #df ,roosevelt1 ,president1 rejects over-capitalization theory1 #ajg ,safety appliances1 #cbj ,safety in railway operation progressive1 #aaf ,safety of ,american railways1 #cfh ,seattle1 ,james ,j4 ,hill at1 #de ,senate committee concerning advance in railway rates1 #bfa ,shareholders1 number of railway1 #cde ,ship subsidy criticised1 #ea ,shippers protected under existing law1 #bfc ,shoes1 effect of freight charge on price of1 #ic ,signaling1 development of railway1 #abb ,smith1 ,a4 ,h41 on progressive safety in railway operation1 #aaf ,socialistic aspect of nationalization of railways1 #bci ,southern products increase in #be years1 #fj ,southern railways and their needs1 #eh ,southern railways crippled by the civil war1 #eh ,southern railways1 mileage of1 #ei ,spooner1 ,john ,c41 on railroads and the public1 #bje ,stage line1 first1 between ,new ,york and ,philadelphia1 #f ,state control or state ownership1 #bbh ,state ownership by autocracy1 #bbi ,state ownership not favored in ,america1 #bbc ,state ownership widely extended1 #bbb ,standard time1 adoption of1 #acf ,statistics of ,american railways1 #aiji1 #bia ,statistics of foreign railways1 #chf ,steamboat1 when first a commercial success1 #ac ,sugar beets1 relation of freight rate to industry1 #ig ,sugar1 effect of freight charge on price of1 #ig ,supplies1 cost of railway1 #aga-aid ,supreme court gives control of rates to carriers1 #bfc ,surplus of freight cars in #aijh-aiji1 #cah ,swiss railway employes1 number and pay of1 #cbh ,tacoma1 ,james ,j4 ,hill at1 #ed ,tacoma waking up1 #dh ,taxes1 #ahhi-aiji1 #cfc ,taxes1 increase1 #ahig-aijg1 #agd ,terminals1 increased cost of1 #dg ,thayer1 ,j4 ,b41 on railroad problems of to-day1 #baa ,tobacco1 effect of freight charge on price of1 #if ,tolls on turnpikes1 #ag ,tonnage1 classified1 #ahi ,tonnage1 water1 at ,duluth leads the world1 #ec ,tracks1 all1 mileage of1 in the ,united ,states1 #cab ,tracks1 all1 mileage of1 in the ,united ,kingdom1 #cac ,train despatching1 #abf ,transportation charge and prices1 ,logan ,g4 ,mc,pherson on1 #ij ,transportation needs anticipated in ,america1 #ei ,trespassers1 fatalities to1 #aci ,trumbull1 ,frank1 on railroad situation of to-day1 #hj ,turnpikes1 capitalization of1 #af ,turnpikes1 the early ,american1 #aj ,united ,kingdom railways1 statistics of1 #chi ,valuation1 physical1 #cdc ,vastness of railway industry1 #aah ,wages1 effect of increase on ,c4 ,b4 ,q41 #fi ,wages1 railway1 in the ,united ,states and abroad1 #gf ,wages1 railway employes1 #ahig-aijg1 #aff ,wages1 railway1 per day1 #ahig-aijg1 #afg ,wages1 railway1 #aiji1 #cbb ,wages1 railway1 per day1 #ahib-aiji1 #cbd ,wagon roads into interior of ,america1 #ad ,wallace1 ,john ,f41 on needs of ,southern railroads1 #eh ,watered ,stock discussed by ,james ,j4 ,hill1 #df ,watermelons1 relation of freight charge to the industry1 #aja ,wearing apparel1 effect of freight charge on price1 #id ,what the traffic will bear misconstrued1 #bjj ,wheat margin between production and consumption1 #ee ,wheat1 the problem of1 discussed by ,james ,j4 ,hill1 #ed ,willard1 ,daniel1 on ,american railway problems1 #fe ,world railways1 mileage of1 #ahdj to #aiji1 #cib ,,transcriber',s ,,note ,italic text is denoted by underscores4 ,bold text is denoted by equal signs4 ,fractions have been left in the form a_/b except for 4 ,a dozen or so occurrences of 'nn a-b' have been changed to 'nn-a_/b'1 mainly on pages #bg-dj1 for consistency4 ,footnote anchors in a table are of the form 7a7 and the corresponding ,footnote is placed at the bottom of that table4 ,other ,footnote anchors are of the form ,a with placement at the end of that ,chapter4 ,to save table space some column headings use the following abbreviations3 ,pass4 for ,passenger ,mill4 for ,millions ,prop4 for ,proportion ,many wide tables have been split into two or more parts4 ,each part after the first is labelled at the top with table continued4 ,obvious typographical errors and punctuation errors have been corrected after careful comparison with other occurrences within the text and consultation of external sources4 ,the ,table of ,contents has been expanded to include the seventeen sections under the ',statistics' chapter at page #bia4 ,except for those changes noted below1 all misspellings in the text1 and inconsistent or archaic usage1 have been retained4 ,for example3 employes1 employees2 pay roll1 pay-roll2 reconnoissance2 asperse4 ,pg #ae1 'would built' replaced by 'would build'4 ,pg #ai1 'incontestible' replaced by 'incontestable'4 ,pg #ch1 column headings1 copied from the earlier similar table on pg #cf1 have been added to this table for clarity4 ,pg #db1 'transhipment' replaced by 'transshipment'4 ,pg #ig1 ',oamha' replaced by ',omaha'4 ,pg #ig1 'remainding' replaced by 'remaining'4 ,pg #acc1 'uniformily' replaced by 'uniformly'4 ,pg #aej1 ',r4 ,p4 ,o4' in the ,table replaced by ',r4,p4,o4' to save space4 ,pg #aec1 some signs removed from the ,table to save space4 ,pg #agg1 missing ,table ,footnote '7a7 ,january to ,july1 only4' added4 ,pg #aha ,footnote ,f1 '#hi and #ie' replaced by '#hi to #ie'4 ,pg #bjj1 'correst' replaced by 'correct'4 ,pg #bje1 'leachlike' replaced by 'leechlike'4 ,pg #baj1 'inocuous' replaced by 'innocuous'4 ,pg #bbf1 'parlimentary' replaced by 'parliamentary'4 ,pg #bgb1 'is practical' replaced by 'its practical'4 ,pg #bie1 '7m #a1jjj47' replaced by '7m #a1jjj2 d decrease47'4 ,pg #bih1 'phenomenonally' replaced by 'phenomenally'4 ,pg #caf1 'direct charges' replaced by ',indirect charges'4 ,pg #caf1 '#bej1fce4cd' replaced by '#bdj1fce4cd'4 ,pg #cah1 ,table #aath row1 ',,xii' replaced by ',,xi'4 ,pg #cca1 'arbitraters' replaced by 'arbitrators'4 ,pg #cce1 'desponding' replaced by 'despondent'4 ,pg #ceg1 ,table note 7b71 ',bureau #ii' replaced by ',bureau in'4 ,pg #ceg1 ,table note 7b71 ',december1 in #aj' replaced by ',december1 is'4 ,pg #cei1 to save space in the ,table1 the two columns with totals have been merged into the columns with their constituent data4 ,no data has been omitted4