Some Economic Aspects of Fuel Conservation By JULIUS H. PARMELEE i Director, Bureau of Railway Economics INTERNATIONAL RAILWAY FUEL ASSOCIATION Chicago, May 9, 1928 Some Economic Aspects of Fuel Conservation By J. H. PARMELEE, Director, Bureau of Railway Economics In addressing; this body of technical fuel men, who are especially expert in the use of railway fuel, let me make it clear at the outset that I am a layman in these matters. My approach to the question of the utilization and conservation of railway fuel is that of an econo¬ mist. That is, it will be my effort to apply the known principles of economics to various problems, important to the railway industry and relating in particular to the use of coal and oil in railway locomo¬ tives. Taking up the general subject of fuel conservation from this angle, it lias seemed to me that a number of points of interest suggest them¬ selves which may be worthy of development at this time. With this introductory explanation, let me offer a few comments on the consumption of railroad fuel during the past seven years. I say seven years, because it is difficult to secure reliable and com¬ parable statistics that will supply a basis for study and analysis over a longer period. Fuel consumption statistics, computed on a gross „tonnage that includes the weight of locomotive and tender, are avail¬ able in summarized form since January 1, 1921. Even this short period of seven years, or from the beginning of 1921 to the end of 1927, has been so full of development and progress that a whole vol¬ ume could be written around it. My exposition will necessarily limit itself to only a few of the high spots. Seven Year Achievement In 1921, the average number of pounds of locomotive fuel consumed in freight service per 1,000 gross ton-miles (including locomotive and tender) was 162 pounds. With the exception of a slight rise in 1922, each year from 1921 to 1927 showed a reduction in fuel consumption, the number of pounds of fuel per 1,000 G. T. 31. dropping steadily from a maximum of 163 pounds in 1922 to a minimum of 131 pounds in 1927. This was a reduction in five years of 32 pounds per 1,000 G. T. 31., while the six years from 1921 to 1927 showed a net reduc¬ tion of 31 pounds, or 19.1 per cent. The following table shows the consumption during each year from 1921 to 1927, and the percentage of reduction each year: Lbs. per 1,000 G. T. M.—Freight Service Year Amount Yearly Reduction 1921 162 1922 163 *0.6% 1923 161 1.2 1921 119 7.5 1925 ' 110 6.0 1926 137 2.1 1927 131 1.1 The greatest reductions, both in amount and in percentage, occur¬ red in 1921, when the average consumption declined 12 pounds under 1923, or 7.5 per cent. The year 1927 also made a very satisfactory showing in this re¬ spect. The average consumption, which stood at 137 pounds per 1,000 G. T. M. in 1926, fell to 131 pounds in 1927. This reduction of six pounds was equivalent to 1.1 per cent, which greatly exceeded the relative reduction of 1926, and slightly exceeded the average annual reduction of the previous five years. You will recall that President Aisliton of the American Railway Association, in his address before the International Railway Fuel As¬ sociation in 1921, made the striking statement that the saving of a pound of fuel per 1,000 gross ton-miles was equivalent to saving 562,- 000 tons of fuel per year in the freight service alone, and represented a reduction of more than three million dollars in the! total fuel bill of the roads. With this statement in mind, we can realize the impor¬ tance of the work of the fuel men on the railways, in achieving a re¬ duction in the single year 1927 of six pounds, and during the six years since 1921 a total reduction not of one pound, nor of ten pounds, nor twenty, nor even thirty, but actually of thirty-one pounds per 1,000 G. T. M. Your reduction during the past year alone was six times as great as that saving of one pound for which Mr. Aishton pleaded so eloquently four years ago. On the basis of his estimates, this sav¬ ing of six pounds was equivalent to an actual physical economy of more than three million tons of fuel in 1927, and a saving in fuel costs upwards of eighteen million dollars. Turning for a moment to the passenger service, we find also an ex¬ cellent record. The following table shows the number of pounds of fuel per passenger train car mile, for each year from 1921 to 1927, in¬ clusive, with the percentage of reduction from year to year. * Increase. 4 Lbs. per passenger train car-mile Year Amount Yearly Reduction 1921 . 17.7 1922 17.9 *1.1% 1923 18.1 *1.1 1924 17.0 6.1 1925 16.1 5.3 1926 15.8 1.9 1927 15.4 2.5 As in the case of the freight service, there was a slight increase of passenger service fuel consumption in 1922, while another small in¬ crease occurred in 1923. From that date down to 1927, there was a consistent reduction year by year. The net reduction during the six- year period from 1921 to 1927 amounted to 2.3 pounds of fuel per car mile, or 13.0 per cent. The reduction in 1927 alone was equivalent to 2.5 per cent, which was greater than during the next preceding year, and also slightly exceeded the average annual reduction of the previous five years. In this connection it is well to keep in mind that a ton is a fairly standard and uniform measure, while a car is not. When we refer to fuel consumption in the freight service per thousand ion-miles, we are using the same basic measure in the different years. When we speak of consumption in the passenger service per car-mile, however, we are utilizing a unit of measure—the passenger car—which may and does vary considerably in weight and character from year to year. This is indicated by the fact that the average gross weight per pas¬ senger car-mile increased from 64.8 tons in 1921 to 72.1 tons in 1927, or 11.3 per cent. Even between 1926 and 1927 the gross weight per passenger car-mile increased nearly one ton. This makes the fuel achievement in the passenger service much more striking than appears from the fuel statistics, and places it on a basis closely corresponding to the sterling accomplishment attained in the freight service. It will be recalled that fuel consumption in the freight service was reduced 19 per rent between 1921 and 1927. The apparent consump¬ tion in the passenger service declined 13 per cent, but when the in¬ creased weight of 11 per cent per car-mile is taken into account, the real reduction considerably exceeded 13 per cent. Thus the fuel consumption statistics for 1927 show record-break¬ ing achievements in both the freight and passenger service, and mark another step forward in the long series of progressive improvements *Inerease 5 in tlie purchase, distribution, utilization, and conservation of railway locomotive fuel. The Real Achievement of 1927 Percentage reductions are important, of course, but I find it diffi¬ cult to visualize what they mean. To get a clear picture of the rec¬ ord-breaking fuel performance of the railways in 1927, I do not de¬ pend wholly on the statement that it meant a reduction of so many percentage points, so many tons of coal, or so many millions of dol¬ lars. Referring again to Mr. Aisliton's address of 1921, we all remember how vividly he emphasized the importance of a pound of coal, when he said: