will be found in those figures which relate to accidents among passengers, employes and other persons.

Here is the argument; here is the evidence that can not be refuted, and there need be no further exploiting of the subject to justify additional legislation in the lines indicated and the making of a sufficient amount of appropriation to enable the Bureau of Railways to fully measure up to the possibilities such enlarged powers would furnish.

Second, additional legislation in regard to the construction of new railroads with a view of preventing all grade-crossings, either of steam or street railways, or public highways.

If the returns of the several corporations are carefully analyzed, it will be found that no small portion of the fatal accidents to other persons than passengers and employes on railroads has occurred at grade-crossings. For more than 15 years the present Secretary in the reports of the Bureau of Railways has earnestly advocated the passage of such a law as is indicated herein, and also the passage of a law that would eventually eliminate grade-crossings from the railroads now constructed. For if these two improvements, the preventing of grade-crossings in new construction and the elimination of grade-crossings on the lines already constructed, could be affected the prolific source of fatal and non-fatal accidents among other per sons than passengers and employes would be materially reduced.

On several occasions, legislation looking to the accomplishment of the things herein indicated has been prepared by the present Secretary, but unfortunately the bills which have been prepared and introduced have usually gone to the Committee on Railroads, there to sleep and to know no awakening.

In the reforms which are promised there ought now to be something accomplished for the prevention of grade-crossings in new railroad construction, and the reasonably rapid elimination of gradecrossings in old construction, which will conserve the interests of the railroads and the public save many human lives and prevent many cripples for life.

Third, there should be provision made by law for the employment of experienced engineers to examine the road-beds, the bridges, and the structures in general of railroad companies, with a view of determining their safety. Many hundreds of thousands of dollars are expended by the State for officials who make investigations in the coal mines to ascertain whether or not the law is fully executed, and to see that everything is done that possibly could be, or that the law requires, in regard ot the safety of mine employes.

In the operation of railroads, from the earliest period down to the present time, the State has been oblivious of the condition of roads

and bridges used in the transportation of millions of passengers that each year are carried over these railroad structures. No official record is kept and no knowledge had with reference to these important features, and it is apparent that the State has neglected its duty in this direction.

Most of the greater railroads of the Commonwealth have structures of great strength, and the liability to accidents upon these is therefore reduced to a minimum. There are however railroads whose tracks, structures and even equipment are in a deplorable condition.

It was but a few years ago that a bridge was known to be in an unsafe and even unserviceable condition, but there was no hand empowered by the State to stay the operation and use of such road and bridge, and the result was that twenty-five human lives were sacrificed by a train being derailed while crossing this bridge.

The State of Pennsylvania will never rise to the full measure of its duty to the citizens until such calamities are prevented from such conditions, as they easily can be, and with but little expense.

Fourth, there should be given the Bureau of Railways of the Department of Internal Affairs the power to hear complaints against excessive rates for transportation of persons and commodities. In this recommendation it is not assumed that the rates of transportation in Pennsylvania are in general high. It is believed that they are usually reasonable and that there is but little room for complaint. However, there should be given power to determine reasonable ness of rates which the railroads have established, and when complaint is made against any particular rate, it should be investigated and a report made of the findings, and if the rate is unreasonable then a rate should be substituted and acquiesced in by both shipper and common carrier, subject of course to judicial review.

Fifth, the Bureau of Railways should be empowered to pass upon the necessities for the chartering of new railroads. If a railroad has been constructed through any particular locality of the State, and it is possible and reasonable for that railroad to conserve every interest in that part of the State, it should be compelled to serve such interest at reasonable rates, and the building of parallel lines, simply for the purpose of competition or for the purpose of ruining lines already constructed, should be absolutely prohibited. To this extent at least, there should be power given to approve or disapprove the applications for charters to authorize the construction of new lines of railroads. Competition never settles anything satisfactorily, at least to the public. It results in ruining or exterminating a competitor, or it results in the combining of the affairs of those who have been competitors, and on this account people are com

pelled to pay rates on the combined capitalization of both enterprises, when rates might have been based alone on the capitalization of one of the competitors.

No good can come permanently to the public by building roads in localities that are already served or that can be fully served by railroad lines already constructed and in operation. A good rule would be to require railroads to furnish every facility, instrumentality, and convenience for conserving every interest along or adjacent to its lines, always with the right of the public to supervise or control charges for transportation, that rates may be reasonable and when this is accomplished, then prevent the useless expenditures of millions of dollars in the construction of competing lines, for as above indicated, no good public results can be accomplished by the construction of competing lines, when lines already constructed can be made to serve every interest.

There are perhaps other recommendations which might be made to strengthen the power for accomplishing desirable results by the Bureau of Railways. If the recommendations should be heeded, and effectual and wholesome legislation passed in accordance therewith, the Bureau of Railways would be of still greater service to the State than it is at the present time, and in the opinion of the present Secretary everything desirable could be accomplished with out the organization of a separate department of the government, as has been suggested.

THE AFFAIRS OF RAILROADS OF 1887 IN PENNSYLVANIA COMPARED WITH THOSE OF 1906.

Since 1887 the present Secretary, either as Deputy Secretary, Superintendent of the Bureau of Railways, or Secretary of Internal Affairs, has had immediate charge of the supervision of affairs of railroads in Pennsylvania as authorized by the Constitution and laws of the Commonwealth.

A glance across the twenty years intervening since the discharge of these duties was assumed shows much of interest and value that relates to the development of railway affairs, and of course these developments and the degree of development denote to a very great extent the actual condition of other interests in the Commonwealth. No exploiting of this question is necessary to indicate clearly that the number of passengers carried, the tonnage, the freight from the different sources, marking the business of railroads, also marks the condition of trade, manufacturing and industrial interests everywhere in the State. A high degree of prosperity of railroads indicates a high degree of prosperity in other directions.

For the year covered by this report the volume of business is the

greatest that has ever been known in the Commonwealth, and by this is meant the amount of business done by transportation companies in the hauling of passengers and commodities. This fact therefore indicates that there is a general prosperity in Pennsylvania that never before existed in all those important features that make up

our commerce.

During the last twenty years there have been times when the business of railroads was greatly retarded by stagnation in the business affairs of the country. Manufacturing and other important matters concerning material development seemed to be at a standstill as has been indicated in the falling off of passenger and freight traffic. Probably the years ending June 30, 1903, and 1904 show the worst conditions of any years during the twenty since 1887, but if we make comparison of the results of the operations of railroads in 1887 and in 1906 we shall find food for study and information of a valuable character, and be greatly surprised at the limitless advance that has been made in all lines of industries as indicated by the business done by railroad companies in the year covered by this report as compared with that done in 1887.

The total liabilities, and by this is meant the amount of stock outstanding, the funded indebtedness and the current liabilities of railroads reporting to the Secretary of Internal Affairs for 1887, were $1,559,019,521, while such liabilities for the year covered by this report amounted to $4,304,880,297.

If we pass to the other side of the ledger and make comparison of 1887 with 1906 we shall find that the total cost of roads then was $894,834,301, while now the cost of roads is $2,450,910,596. Then the total cost of equipment was $118,616,439; now $385,996,354. What a rapid advance do these figures indicate in the capitalization and in the assets of common carrier corporations in the twenty years referred to. Here we find the money invested in these corporations to be greater than the assessed valuation of real estate within the limits of Pennsylvania. It is true that a large portion of this capitalization pertains to lines of railroad partly situated outside of this Commonwealth, but it clearly establishes the fact of the great importance of railway investments and these comparisons show the rapidity of growth within the period named.

The mileage of railroads in Pennsylvania in 1887 was about 9,000; now it is over 11,000.

The locomotive equipment in 1887 was 5,737; now it is 15,572. The total number of cars, both passenger and freight, in 1887 was 241,286; now it is 675,726.

The number of employes in 1887 was 161,590; now it is 475,436. In the way of compensation for the year covered by this report

there was paid to railway employes the sum of $299,808,718. A gratifying feature is that the annual average compensation of all grades of employes, as well as the average daily compensation, has been increased materially during the period for which comparisons are made.

The change in the public functions of railroads in twenty years is shown in that in 1887 there were carried $92,252,124 passengers, while in the year covered by this report there were carried $297,271,092, showing an increase of over 200,000,000 in the number of pas sengers carried, and if we turn to the deductions that were made which show the average receipts per passenger per mile, it will be found that the rate per passenger per mile has largely decreased. Then, again, the marked increase in the power of locomotives, in the capacity of cars and the bettering of conditions in every way have inured to the benefit of shippers and passengers in that rates are lower now than they were twenty years ago.

The percentages of increase in the tonnage carried of the the products of agriculture, of mines, forests, manufactories and of merchandise and miscellaneous commodities are nothing less than astounding.

In 1887 there were carried 216,979, 820 tons of freight and for the year covered by this report the amount carried is 710,829,765 tons. Twenty years ago the passenger earnings were $39,819,423; now they are $172,080,775.

Freight earnings twenty years ago were $146,154,537; now they amount to $527,715,751.

Total earnings and income twenty years ago were $199,192,666; now $790,984,377.

The total operating expenses in 1887 were $124,336,503; now $472, 058,200.

An epitome of these comparisons would not be complete without some reference to accidents. Probably some discrepancies exist in the returns for the year 1887, but from the best information obtainable it is found that the total number killed was 1,091. The number killed for the year covered by this report being 3,872. The total number injured in 1887 was 4,627; this year 33,825.

If we go into a calculation of percentages, comparing the percentage of increase in accidents with the percentage of increase in the amount of business done, the number of passengers carried, the number of persons employed, the number of tons of freight carried, the amount of expenditures of money and other comparisons upon which percentages may be based, we shall find evidence of conditions that are nothing less than appalling.

F-9-1906