operation except $157,642 derived from interest on bonds, dividends on stock, etc.

With a view of contributing to the convenience of those who may desire to study the total earnings and income of the ten leading companies, and with a view also of increasing the facilities for making quick comparisons, the following table will be found to be useful:

TABLE SHOWING "TOTAL EARNINGS AND INCOME FROM ALL SOURCES" OF THE TEN LEADING CORPORATIONS NAMED FOR THE YEARS 1902, 1903, 1904, 1905 AND 1906.

The total earnings and income of all railroads reporting for the year ending June 30, 1905, amounted to $790,984,377. Of this total $172,080,775 were from passenger earnings; $527,715,751 from freight earnings; $13,634,752 from other earnings from operation, while $77,553,099 came from interest on bonds, dividends on stock, rentals, etc. The reports of some of the leading companies disclose the fact that there is a large ownership in the stocks and bonds of other corporations from which no small amount of the total income of railroad companies in the State is derived.

In 1901 the total income from all sources of railroads now contributing to this report was $534,214,627; in 1902 the amount was $587,018,587; in 1903, $654,588,618; in 1904, $675,008,355; in 1905, $712,188,875. In other words, from 1901 to 1906 inclusive there has been an increase in the total income of railroads reporting to this office of $256,769,750. Looking back across two decades it is found that the total passenger earnings were $39,819,423; the freight earnings $146,154,537; the earnings from other sources $4,590,643, or a total of earnings from operation of $190,564,603, to which may be added the miscellaneous income from bonds, stocks, etc., of $8,628,063, making a total of $199,192,666 as against $790,984,377 for the year ending June 30, 1906. What a story of advancement, development and prosperity is found in these figures that relate to the increase of receipts during the period named.

EXPENSES.

As before indicated, the total earnings and income of these transportation companies during the year has been $790,984,377. Maintenance of way and structures and expense of operations have absorbed no small percentage of this substantially large sum. In consolidated Table K, relating to the affairs of steam railways, classifi cations of expenditures are as follows: Maintenance of way and structures; maintenance of equipment; conducting transportation; general expenses; total operating expenses; other expenses as per deductions from income; total expenditures for the year.

With a view of facilitating the comparison of data as to railroads with the ten leading companies, two brief tables are herewith submitted showing total expenditures for the years named, including also average daily compensation paid to employes and percentage of operating expenses to earnings.

TABLE SHOWING "TOTAL EXPENDITURES FOR THE YEARS" (NOT INCLUDING DIVIDENDS PAID) OF THE TEN LEADING CORPORATIONS NAMED FOR THE YEARS 1902, 1903, 1904, 1905 AND 1906.

TABLE SHOWING "PERCENTAGE OF OPERATING EXPENSES TO EARNINGS" AND "AVERAGE DAILY COMPENSATION PAID TO EMPLOYES" BY THE TEN LEADING CORPORATIONS NAMED FOR THE YEARS 1902, 1903, 1904, 1905 AND 1906.

Looking at the totals of expenditures under the classifications indicated above, we find that the cost during the year of the maintenance of way and structures on all roads has been $85,809,875; maintenance of equipment $112,717,795; conducting transportation $257,847,200; general expenses $15,683,330; total operating expenses $472,058,200.

In 1901, the total operating expenses were $315,311,907; in 1902 $345,957,108; in 1903, $396,774,146; in 1904, $418,653,081; in 1905, $431,233,508, and in 1906, as above indicated, $472,058,200.

The increase in the cost of maintenance, operation, and general expenses seems to have kept a fair pace with the increase in the total income of transportation companies during the years mentioned.

Other Expenses as Per Deductions from Income.

In addition to the expenses of operation and general expenses there have been large amounts paid out as interest on funded debt, interest on interest bearing current liabilities, interest on real estate mortgages, rents paid for lease of roads, taxes, permanent improvements, etc. These payments appear in consolidated Table K, in one of the columns opposite each company, the total amount being $287,612,586.

Of corporations paying large amounts under this caption the Baltimore and Ohio has an expense item of this kind of about 16 million dollars; the Erie 13 million; the Lake Shore and Michigan Southern 14 million; the New York Central and Hudson River 22 million; the Pennsylvania 34 million; the Philadelphia and Reading 13 million. It is apparent therefore that of the expenditures of railroads no small amount is made up of fixed charges the payment of which must be made independent of expenses of operation and with which the administration of affairs of a railroad and its operation is not particularly chargeable. In other words, the general superintendent of a railroad is not usually responsible for the amount of taxes that are levied and paid, and not altogether responsible for the permanent improvements or betterments, or for the amount of interest paid on bonds, or the dividends on stocks, and yet these items are usually paid and deductions made from the total income of railroad companies from operation.

Total Expenditures During the Year.

To recapitulate in regard to expenditures, it is found that maintenance of way and structures has cost during the year $85,809,875; maintenance of equipment $112,717,795; conducting transportation $257,847,200; general expenses $15,683,330; other expenses as fixed

charges, taxes, etc., $207,612,586, or a total of $679,670,786, which deducted from $790,984,377 leaves a surplus from which to pay dividends, etc., of $111,313,591.

TOTAL AMOUNT OF DIVIDENDS PAID DURING THE YEAR.

The companies that have paid over a million dollars in dividends are as follows: Baltimore and Ohio, $6,137,402; Central Railroad of New Jersey, $2,194,424; the Delaware, Lackawanna and Western, $5,240,000; the Erie, $2,555,696; the Lake Shore and Michigan Southern, $4,010,670; the Lehigh Valley, $1,624,022; the New York Central and Hudson River, $7,036,195; the New York, Ontario and Western, $1,162,296; the Northern Central, $1,375,468; the Pennsylvania, $18,242,069; the Pennsylvania Company, $3,800,000; the Philadelphia and Reading, $6,000,000; the Pittsburg, Cincinnati, Chicago and St. Louis, $1,841,596; the Pittsburg, Fort Wayne and Chicago, $3,784,136; the Pittsburg and Lake Erie, $1,000,000.

During the year covered by this report the total dividends paid by all companies amounted to $76,797,738, leaving a surplus of $34,515,853.

In 1901, the total amount of dividends paid was $38,610,816; in 1902, $50,362,063; in 1903, $50,124,433; in 1904, $59,318,906; in 1905, $72,703,735.

ACCIDENTS.

In Pennsylvania there is little room left to criticise the affairs of steam railroads with reference to the facilities and conveniences for the transportation of persons and commodities. As has been heretofore stated, there are undoubtedly chances for improvement and improvements will continue to be made, as they have been in the past, from which greater attainments will be had in the way of transportation facilities, but whatever opportunities there may be for advancement, Pennsylvanians may feel a just pride in the unquestionable fact that the most advanced positions in the way of improvements are occupied by the great trunk lines that are wholly within, or that pass through the territory of this Commonwealth.

For years railroad managers have largely realized the fact that the interests of the people, the shippers and the railroads are in parellel lines; that whatever conserves the interests of the people will inure to the benefit of the railroads and that which will advance the standard of the railroads, will generally inure to the benefit of the passengers and the shippers.

In so far, therefore, as conveniences, facilities and instrumentalities of transportation are concerned in Pennsylvania, but little just criticism may be made beyond those features of discrimination which are alleged still to exist, but turning from this favorable

picture which is so commendatory of conditions on our Pennsylvania railroad lines, the report for the year cannot be closed without some reference to the frightful losses of life and limb to passengers, employes and other persons, which have occurred in the conduct of the. business of our common carriers during the year ending June 30, 1906.

It is not a pleasant task to emblazon before the people of Pennsylvania or this country the frightful losses which have occurred. It is not cheering to proclaim the fact that fatal and nonfatal accidents are greater in number on the lines of railways in this country than they are in foreign countries, yet according to statistics which seem to be of a reliable character, the comparisons are unfavorable to American railway managements.

If we shall compare our American railway equipment with that in use in European nations; if comparison be made with reference to rapidity of transportation of passengers and commodities or with reference to the stability of road beds, bridges and other structures; the power of locomotives; the conveniences and comforts of passenger equipment; the capacity of freight equipment, and the possibilities and instrumentalities which relate to transportation in all its phases, the censensus of opinion, both at home and abroad is commendatory of American railway management, and of course therefore, cannot in any way reflect otherwise than favorably upon the railways of Pennsylvania, as they are generally conceded to be the best in this country. However, for some reason or other we seem to be on the black list with reference to fatal and non-fatal accidents among passengers, employes and other persons.

Congress for years, guided by the wisdom of the best thought of the country with reference to safety appliances, has placed upon the railroads obligations which they must perform with reference to the introduction of appliances looking to the reduction of accidents, especially among railway employes. Many of the states of the union have been moving along parallel lines and in their proper spheres have attempted, either through legislation or administration to improve the unfavorable conditions which are everywhere found on lines of transportation with reference to accidents.

Here in Pennsylvania a deplorable condition has existed for many years. Accidents have occurred in the midst of populous cities, two or more involving the destruction of scores of lives under the shadow of the State Capitol. So throughout the Commonwealth these accidents have occurred from some cause or other, and yet no wholesome laws have been passed by the Legislature to enable any public official to exercise any reasonable supervision over safety appli ances or administration of operations, or indeed to furnish any