'L I B R.AR.Y OF THE UN IVERSITY or 1LLI NOIS 380 J131t INTERNATIONAL BUSINESS LIBRARY TRANSPORTATION INTERSTATE COMMERCE FOREIGN TRADE — BY — .pi WILLIAM J? XAOKMAN, A. B. Author of "Corporations : Organization, Finance and Management"; formerly Managing Editor of the Chicago Journal. and THOMAS H. RUSSELL, A. M., LL. D. Author of " Business Principles and Methods," etc., etc. V Copyright, 1916, by WHITMAN PUBLISHING CO. Racine - Chicago Copyright, MCMX, by INTERNATIONAL LAW AND BUSINESS INSTITUTE Copyright, MCMXV, by THE HAMMING- WHITMAN CO. "When one considers the immense importance of rail- way transportation to the life of every community — indeed, of every individual — it is not to be wondered at that every one feels privileged to take a hand in the man- agement of the railways. Our whole scheme of civiliza- tion today is dependent upon good and cheap transporta- tion. The food upon our table is supplied from immense distances, and the same is true of all our daily needs."— Frederic A. Delano, President Wabash Railroad, ■;■>'■< ' - ' 0> 6 JL ASSOCIATE EDITORS. Richard Canning, President Northwestern Finance Company, Minne- apolis, Minn. H. M. Coombs, special lecturer on Credits and Collections, International Law and Business Institute. James J. Cbaig, LL. D., special lecturer on Insurance, International Law and Business Institute. C A. Ecklund, special lecturer on Accounting and Auditing and Finan- cial Management, International Law and Business Institute. W. J. Jackman, A.B., former managing editor of Chicago Evening Journal, Sunday editor of The Inter Ocean, etc. G. A. Obth, adjuster, Travelers' Insurance Co. C. N. Smith, special lecturer on Business Systems, International Law and Business Institute. J. T. Thompson, formerly of the Ontario bar. A. C. Wilkinson, special lecturer on Salesmanship and Advertising, International Law and Business Institute. George E. Young, of the Minnesota bar, special lecturer on Commercial Law and Corporations, International Law and Business Institute. C. E. Zimmerman, expert on Publicity and Sales Promotion, Chicago. AUTHORITIES CONSULTED. Herbert Knox Smith, U. S. Commissioner of Corporations. Charles Nagel, Secretary of Department of Commerce and Labor. E. P. Ripley, President Atchison, Topeka & Santa Fe Railway System. W. H. Truesdale, President Delaware, Lackawanna & Western Railroad Company. L. D. Smith, Vice-President Lehigh Valley Railroad Company. W. H. Canntff, President New York, Chicago & St. Louis Railroad Company. J. W. Lee, Jr., Pennsylvania Railroad Company. J. Kruttschnitt, Director of Maintenance and Operation, Union Pacific Railroad Company. W. C. Brown, President New York Central Lines. W. L. Park, Vie«-Presid«nt and General Manager, Illinois Central Rail- road Company. 4 *?? oc AUTHORITIES CONSULTED. 5 W. H. Williams, Third Vice-President Delaware & Hudson Company. Luis Jackson, Industrial Commissioner, Erie Railroad. Paul Morton, formerly Vice-President of the Atchison, Topeka & Santa Fe Railroad. George B. Courtelyou, former Secretary of the Treasury, Washing- ton, D. C. Frederic A. Delano, President Wabash Railroad. Thomas D. O'Brien, Associate Justice of the Supreme Court of Minne- sota. E. S. Conway, Chairman of Deep Waterway Committee of Chicago Commercial Association. Charles M. Hays, President Grand Trunk Railway System. L. E. Johnson, President Norfolk & Western Railroad Company. George Gerard Tunell, of the U. S. Railway Mail Service. J. L. Payne, Comptroller Department of Railways and Canals, Canada. R. Rosevear, former Accountant Pacific Express Company, Chicago. Emory R. Johnson, Assistant Professor of Transportation and Com- merce, University of Pennsylvania, and author of "American Railway Transportation." Walker D. Hines, Attorney-at-Law, Pittsburgh, Pa. Prof. Henry C. Adams, Statistician Interstate Commerce Commission. 0. P. Austin, Chief of Bureau of Statistics, Department of Commerce and Labor. Joseph A. Arnold, Editor and Chief of Division of Publications, U. S. Department of Agriculture. W. J. Ashley, M. A., professor of Economic History in Harvard Uni- versity; author of "An Introduction to English Economic History and Theory." Right Honorable James Bbyce, British Ambassador to the United States; author of "The American Commonwealth." Andrew Carnegie, author of "The Empire of Business," "The Gospel of Wealth," "Triumphant Democracy," etc., etc. A. Hamilton Church, author of "The Proper Distribution of Expense Burden." Dr. Stuart Daggett, University of California, author of "Railroad Reorganization." E. Dana Durand, Director of the Census Bureau, Washington, D. C. Seymour Eaton, Director of the Department of Industry and Finance, Drexel Institute, Philadelphia; author of "How To Do Business." James H. Eckels, former Comptroller of the Currency; author of "The Methods of Banking," etc. David R. Forgan, President of the National City Bank of Chicago. H. L. Gantt, member of the American Society of Mechanical Engineers ; author of "Training Workmen in Habits of Industry and Co-operation," etc., etc. 6 AUTHORITIES CONSULTED. Alexander Dana Noyes, financial editor "New York Evening Post." Adam Smith, LL. D., author of "The Wealth of Nations." Hon. John Wanamaker, Philadelphia. Harrington Emerson, author of "Efficiency as a Basis for Operation and Wages." Hon. W. L. Mackenzie King, C.M.G., M.P., Minister of Labor, Do- minion of Canada. Edwin R. A. Seligman, LL. D., author of "Essays in Taxation." "The Economic Interpretation of History," "Principles of Economics," etc., etc. Hon. J. P. B. Casgrain, Quebec, Canada ; author of "The Problems of Transportation in Canada." TRANSPORTATION INTERSTATE COMMERCE FOREIGN TRADE V TABLE OF CONTENTS. PAGE Associate Editors and Authorities Consulted 4 Introduction 15 Chapter I. The History of Transportation 21 Original Suggestor of Kailroads — What Fulton and Gray Did — First Railway in America — Start of New York Central Lines — Features of Primitive Railroad- ing — Early American Locomotives — Pri- mary Purposes of Eailways — What Rail- ways Have Done — Birth of Trans-Conti- nental Route. Chapter II. Organization of Operating Force 39 Organization of Union Pacific — Duties of General Superintendent and Other Offi- cers — What Division Superintendents Do — Routine of Railway Work — Duties of Gen- eral Freight Agents — Duties of General Passenger Agent — Various Other Depart- ments. Chapter III. Relations of Carrier and Shipper 47 Liabilities of Railroads — When Railroads Are Exempt — What Railway Carriers Must Do — Loss Arising from Fire — Law of Principal and Agent — How the Modern Plan Works — Responsibilities of Shippers — Two Extremes of Liability — Responsi- 9 10 TABLE OF CONTENTS. bility of Carriers by Water — Liability of Vessel Owners Limited — Liability for Im- proper Handling. Chapter IV. Making Rates and Fares 57 Importance of Freight Rates — Freight Classification — Commodity Tariffs — Rate-Making Officials — Making Local Freight Rates — Competitive and Through . Rates — The Percentage Tariff System. Chapter V. Domestic and Foreign Rates 69 Rates on the Pioneer Roads — Rates Now in Effect on Domestic and Foreign Roads — Lower in the United States Than in Any Other Civilized Country — Freight Rates Also Lower and Steadily Decreasing — What a Ten Percent Increase Would Mean. Chapter VI. Classification of Traffic 77 Why Classification is Made — How Dis- crimination is Avoided — Proper Classifica- tion a Hard Problem — Locality a Ruling Factor — Division of Freight Into Classes — Illustration of the System — Deciding On Minimum Capacity — What Classification Does. Chapter VII. Uniform Bill of Lading 85 First of the Uniform Bill — Great Advan- tage to Shipper — Trouble With Old Form — Features of the Uniform Bill — Advan- tages in Banking Deals — Conditions of Modern Bill — How Shippers Are Able to Raise Money — Security Afforded to Bank- ers — Milled-in-Transit and Other Forms of Bills of Lading. Chapter VIII. Private Cars and Fast Freights 97 Rates on Private Car Shipments — Evil of Car Detention — New Per Diem Rate — Pri- TABLE OF CONTENTS. 11- vate Cars Not Detained — One Source of Abuse — The One Great Advantage — Origin of the Private Car — First of Fast Freight Lines-. Chapter IX. Some Transportation Problems 105 Rates Should Be Stable — Pooling and Anti- Pooling — Effects of Keen Competition — Benefits of Combination System — Three Possible Relief Plans — Danger of Unbri- dled Discrimination — To Preserve Reason- able Rates — Unification of Railway Inter- ests. Chapter X. Railways as Industrial Factors 115 Start of American Manufactures — Rail- way Factor in Development — Education of a Foreigner — How Railways Became Inter- ested — Pushing the Rails Westward — Work of Immigration Bureaus — Peopling the Western Country — A Work of Self-inter- est — Why Factories Are Encouraged. Chapter XL Training of Railway Mechanics 131 Benefits of the System — Graduates Get Good Positions — Outline of Curriculum — How Boys Are Rewarded — Prizes for Best Work — Method of Apprenticeship — Exam- ination of Applicants — Advantage of In- denture System . Chapter XIL Railway Situation in Canada 143 Liberal Grants of Land to Canadian Roads — Present Policies of Government — Total of Railway Construction — Total Capital and Average Per Mile — Business Done in 1915— Gross and Net Earnings — Compara- tive Wages of Employes. 12 TABLE OF CONTENTS. Chapter XIII. Eailway Mail Service 155 Railways at First Unreliable — Two Early Speed Contests — When Horse Defeated En- gine — First of Special Mail Service — First of Eeal Mail Service — Old System of Han- dling Mail — The Distributing Office Sys- tem — Abuses In the Old System — The Work of Reform Begun — Railway Post- offices Suggested — Start of the Present System — The First Railway Postoffice. Chapter XIV. Transportation by Express 175 Origin of the Express Business — First of Large Companies — General Terms of Con- tracts With Railroads — Main Source of Revenue — Charges Based on Risk Taken — Responsibility of Express Forwarder — Im- portance of C. 0. D. Business — Money Or- ders. Chapter XV. Railway Crop Report Bureaus 187 System of Union Pacific Reports — How the Territory is Covered — Nature and Method of Compiling the Reports — Purpose of Col- lecting the Information — General Scope of the News — People Who Are Benefited by the Service. Chapter XVI. Fixing Value of Railroads 195 Location of Route Important — Effect of Values on Investors — What Is Fair Valua- tion? — Views of Federal Expert — Sweep- ing Decision by Federal Court — Items to Be Considered in Fixing Valuation. Chapter XVII. Interstate Commerce Act 215 Federal Legislation on Rates — Provisions of Long and Short Haul — Penalties for Discrimination — Carriers Liable for Dam- ages — Punishment of Offenders — Author- TABLE OF CONTENTS. 13 ity of Interstate Commission — Jurisdiction of Courts — Summary of Decisions. Chapter XVIII. Transportation by Water 271 Official Figures of Passenger Traffic — Movement of Freight Traffic — Mileage of Available Routes — Defects of Present Sys- tem — Character of Vessels Engaged — Policy of Federal Improvement — Ship- ping Contracts and Documents — Char- ters and Bills of Lading — Manifests and Government Regulation — What Constitutes Navigable Water. Chapter XIX. Lakes-to-the-Gulf Waterway 309 Why a Waterway Is Needed — Production of Middle West— Great Growth of Manu- factures — Lack of Transportation Facili- ties — Heavy Tax Upon Producers — Water Transportation Cheapest — Competition Brings More Business — Division of Rail- Water Rates — How the Producer Is Af- fected. Chapter XX. Vessels in Foreign Trade 327 System of Federal Control — Importance of Ship's Papers — Vessels Entitled to Reg- istry — Protection Afforded by Registry — How Vessels Are Identified — The "Hus- band" of a Vessel — Method of Ascertaining Tonnage — Reason for Exact Measure- ments. Chapter XXL Work of the Custom House 337 How Vessels Make Clearance — The Ship's Manifest — Routine of Importing Dutiable Goods — Unloading Rules — Passing Through the Custom House — Entry for Warehouse — Penalties for Fraud. 14 TABLE OF CONTENTS. PAGE Chapter XXII. The Bonded Warehouse 34? Scope of Bonded Warehouse — Making En- try of Goods — Punishment for Wrong Valuation — Handling Goods for Re-expor- tation. Chapter XXIII. Electric Railways in the U. S 353 Rapid Development of Electric Sys- tems — Possibilities of Electricity — Steam Railroad Electrification Com- ing — Classes of Electric Railway Serv- ice and Equipment. Chapter XXIV. Transportation by Automobile 371 Growing Use of Motor Vehicles in Transportation of Passengers and Freight. Questions for Review 385 Terms Used in Transportation 407 INTRODUCTION. There is no one field of modern endeavor which af- fects so many people, directly and indirectly, as trans- portation. There is no other single branch of human effort — no one combination of capital and labor — which has such a vitally important bearing on the wel- fare of the civilized world. In 1915 the railways of the United States employed in various capacities the enormous army of 1,848,883 men, to whom was paid $2,915,000,000 in salaries and wages. Similar statistics for the water lines of trans- portation, if obtainable, would increase these figures very materially. Some idea of the immensity of this force of employees engaged in rail transportation work alone may be had by comparison with the numerical strength of the Northern army engaged in the Civil War of 1861-1865. The total number was 2,656,053. But these were not all in service at once. The figures represent the total number of men enlisted or drafted during the entire four years of warfare. It is safe to say that the nearly 2,000,000 human beings engaged in railway operation in 1915 constituted a much larger army than was ever marshaled at one time in the history of the world. Transportation facilities, or the lack of them, espe- cially those afforded by railways, make and unmake communities. Wherever the railway penetrates pros- perous villages spring up, and the terminal and divi- 15 16 INTRODUCTION. sion headquarters assume importance in the business world. The money distributed in the form of salaries and wages is the very life blood of trade. It would be difficult to trace this distribution through its various channels, but the rent, food, fuel and clothing expenses of a million and a half of men and their dependents con- stitute an important factor in the commercial prosperity of the country. Assuming the low ratio of three dependents to one worker as the proper average, we have the enormous number of 5,500,000 people obtaining a livelihood di- rectly from transportation lines. This would make a city larger than Greater New York. If it were possible to effect an even distribution of the $2,915,000,000 of wage money, it would give every one of the 5,500,000 people an average annual income of approximately $500, while three-quarters of them would contribute in no way toward the earning of the money, aside from the possible performance of household services. Astounding as these figures are, it is in the develop- ment of communities that transportation becomes of transcendent importance. There is no way of tabulat- ing the results obtained in a manner which will show the actual money value accruing to each community thus benefited. The best that can be done is to show the gen- eral advancement in population and wealth. In the ten years between 1900 and 1910 the popula- tion of the United States increased from 76,303,387 in 1900 to 93,402,151. The ratio of increase for the few years ending in 1915 has been equally great, and allowing it to be the same, we have now a population of approximately 100,000,000. With this increase in INTRODUCTION. 17 population has naturally come an increase in wealth. The total true value of property in 1915 was $187,739,- 000,000. Population follows the lines of least resistance. It naturally seeks an outlet where means of transportation are the best and most available. Where there are no adequate means of transportation the population will be sparse — in civilized countries at least. In the wake of population comes wealth. This may not be true as to such countries as China and India, but it does apply with full force to enlightened countries like the United States and Canada, where the great bulk of the people are producers, or wealth makers. What influence has made a city of 2,500,000 people (Chicago) out of what was eighty years before a mere frontier trading post? Chicago did not really begin to grow until it got adequate transportation facilities. There was some growth, of course, but it was slow and desultory. It was not until the "iron horse" began to snort its way into town that Chicago really commenced to expand and assume a metropolitan importance. The railway brought people, and the people, in turn, estab- lished industries. The railway again made an outlet for the products of these industries. Finally the size of the traffic attracted other railroads and the process was re- peated, growing in size and importance with each new avenue of transportation. It is in this way that every large community in the United States has been built up. No accurate study of economics in this, or any other civilized country, can be made without a clear under- standing of the part necessarily occupied by transporta- tion facilities. While population might possibly increase I.B.L. Vol. S— 2 18 INTRODUCTION. without modern means of transportation — but even this is doubtful — there would be no outlet for surplus prod- ucts, and consequently no inducement for their produc- tion. Each community would exist upon and within itself and there would be no interchange of the results of labor, no bartering of goods for money. The operation of transportation lines offers to young men of industry and ability a field of certain and profit- able occupation. The man who will start in a modest position, master the details of each task as it comes to him, and show by his actions that he is master of his work, is sure to attract the attention of his superiors and be called up higher. Contrary to general belief, there is no business or profession in which there is less favorit- ism shown than railroading. In more than one instance railroad presidents began their apprenticeships as track workmen, and, while every competent track workman can not reasonably expect to become a railway presi- dent, such attainment is not impossible, and the number who have become division and general superintendents is surprisingly large. Clerks in railway offices, the hard-working men who juggle with tariff sheets and keep the books, attract little attention, and their advancement is slow and lim- ited. It is the men who make possible the moving of freight and passengers who draw upon themselves the compliments of their superior officers and, on doing a good piece of work, are invited to take a better job. The clerical force is essential to the welfare of a railroad, but its members are not so much in the limelight. One successful railway operator summed up the situation as follows: INTRODUCTION. 19 "We are overwhelmed with applications from men who want to keep books or make out freight bills. Wages are low and advancement very slow up to a cer- tain point, where it stops entirely. Brainy men, willing to do rough, hard work, are scarce, and a competent man doesn't work long in a position of this kind before he is found out and promoted." While not absolutely essential, a knowledge of teleg- raphy is of great value to an operating official, and a pronounced aid to advancement. A bright, hard- working station agent who understands telegraphy, or a brainy track walker or section foreman who knows how to pull his road out of an emergency, will come to the front fast; the clerk in the general office will work out his life as an underling. "Maximum" Locomotive — American Locomotive Co., N. Y. CHAPTER I. THE HISTORY OF TRANSPORTATION. Transportation, in some form, has ever been one of the necessities of the human race. Primitive man met his needs in this line by the use of his fellow men as pack carriers, and in some parts of the world, notably the jungle regions of Africa, this method is still in vogue. From the human pack carrier there has been a gradual evolution, through animal pack-carriers and beasts of burden, stage coaches, boats and other con- veyances, which has had its development in the modern railroad with its palace cars and luxurious sleepers, and the monster steamers of the lakes and oceans. Nor should the automobile be overlooked when mod- ern methods of transportation are under consideration. It is in practical use as a means of carrying both pas- sengers and freight and, in its field is fully as important a factor in the world of transportation as the railway or the steamship. Civilization Follows Transportation. Civilization follows modern methods of transporta- tion. Where primitive methods of freight and pas- senger traffic are still in vogue we find the progress of civilization slow, and frequently at a standstill. Where- ever there is adequate modern transportation there we will find the greatest intellectual and commercial pros- 21 22 THE HISTORY OF TRANSPORTATION. perity, thriving and advancing communities, and happy peoples. It would be unfair to attribute all of this develop- ment to the railways, as water craft have had their full share in it and in many sections of the country are in- dispensable, but it has become a custom to consider the railways as first in the order of importance. Developments of Sixty Years. In 1915 there were 251,984 miles of railway in the United States, and 30,000 in Canada, a total of 281,984 miles. It seems incredible that this is the result of only seventy years of effort; in reality of less than sixty years. In 1820 railways were unknown, as were boats propelled by other than sail power or oars. It was in 1820 that the idea of what has since become the modern railway was first suggested — an iron road- bed of ties and rails on which might be hauled, by some means, passengers and freight. The suggestion was laughed to scorn, the idea was denounced by the most learned and influential men of the day as preposterous. And yet there are people living today who were born in that year. First Suggestor of Railroad. Thomas Gray, a native of Leeds, England, and real originator of our railway system, was the first man to suggest the construction of a railroad. Gray, who was born about 1780, began to write and talk on this topic in 1820. The popular verdict was that he was insane. He called his project "A general iron railway." He petitioned Parliament, sought interviews with the lords THE HISTORY OF TRANSPORTATION. 2£ and other great men, and became the laughing-stock of all England. All transportation was then done by stage coaches and carters' vans. The locomotive en- gine was unknown. Gray persevered, and finally Stephenson took up the idea and produced an engine which made Gray's project feasible. But Gray did not benefit by it. What ultimately became of him is unknown, but up to 1846 he had been neglected, and was forced by poverty to sell glass on commission for a living. Fulton Treated With Rudeness. It is a peculiar coincidence that Robert Fulton, the pioneer of steamer transportation, was treated with the same contumely when he was trying to explain to the people of the United States that navigation by steam, propulsion of vessels in a given direction regardless of winds or tides, was possible. The people would have none of Fulton's theories. Neither would the law- makers. When he solicited permission to use the hall of the House of Representatives for the purpose of delivering a lecture explanatory of his theory of steam navigation, he was rudely repulsed on the ground that it would be a discussion of a wildly visionary scheme. Fulton began his experiments and studies in 1793, but it was not until 1807 that he built and navigated successfully the steamer Clermont, on the Hudson River. It was an illustration of dogged persistency in overcoming obstacles that would have discouraged a less resolute man. 24 THE HISTORY OF TRANSPORTATION. What Fulton and Gray Did. These ideas of Fulton as regards steamers, and of Gray as regards railways, were not in any way con- nected with the development of the steam engine itself. These men sought merely an application of steam en- gine power to the purposes of transportation. Up to the time the possibilities of this application were thus demonstrated, the steam engine had been merely a stationary force. As a matter of fact, steam engines of a very primi- tive design, of course, were known as early as 130 B. C. Hero, of Alexandria, describes one of these machines in his Pneumatics. It was called the seolipile, and was a sort of steam reaction turbine. From then until the seventeenth century there was little improvement, and it was not until James Watt, in 1763, made certain additions and improvements, that the commercial worth of the steam engine was fully established. First Railway in America. Some historians, referring to what is called the Granite Quarry Railway at Quincy, Mass., give 1827 as the date of the construction of the first railway in the United States. This is an error, as this road was not what may properly be called a railway. It was a tramway, over which cars were hauled part of the way by horses, and then up a steep incline by a cable drawn by a stationary engine. The main purpose in the construction of this tramway was to furnish a means of transporting stone from Quincy to Boston for the building of the Bunker Hill monument. THE HISTORY OF TRANSPORTATION. 25 The first real railway in the United States, for gen- eral transportation purposes, was the Baltimore & Ohio, construction of which was begun in 1828, and this was at first intended to be operated by horses. England First in the Field. England antedates America in the beginning of actual railway construction by two years, the building of the Liverpool-Manchester line being started in 1826. Up to this time no satisfactory locomotive engine had Transportation of Freight in 1825. been devised, but the results of experiments had been such as to warrant the belief that a satisfactory engine would be ready by the time the roads were completed. This proved to be correct. Railway construction was slow in those days. It was three years — in 1829 — before the Liverpool-Man- chester line was completed, and of the Baltimore & Ohio, begun in 1828, only thirteen miles were ready for operation in 1830. Five years later the entire length of the completed road was only 135 miles. Results of Stephenson's Ingenuity. In the meantime — 1829 — George Stephenson had become the "father of the locomotive." Utilizing the 26 THE HISTORY OF TRANSPORTATION. principle of Watt, he succeeded in producing a loco- motive that would run on rails and draw a train of loaded cars. A trial was made on the Liverpool-Man- chester line in October, 1829, when the first Stephen- son locomotive, the Rocket, attained a speed of twenty miles an hour. The day of doubt was past — the railway of today was assured. Many amusing stories are toM illustrative of Ste- phenson's grim wit and the obstacles he was forced to contend with. Even after he had demonstrated the practicability of his engine, some of the influential men of that day attempted to discourage him. One of them, a lord, said: "This will never do, Stephenson. Your engine goes too fast. Suppose a cow should get on the track?" "That woo' be awkward fo' th' coo, mae laird," re- plied Stephenson. Start of New York Central Lines. Following the demonstration of the practicability of the Stephenson engine, railway projects came thick and fast, especially in this country. The Charleston and Hamburg road, a South Carolina line, had 137 miles constructed in 1834, and was for some time the longest and most important line under one management in America. The Mohawk & Hudson, parent of the New York Central System, was begun in 1830. Numerous small companies, now amalgamated into the mammoth Central, took up the work of building roads between other cities, and by 1842 there was a system of rail communication between New York and Buffalo by way of Albany. THE HISTORY OF TRANSPORTATION. 27 Features of Primitive Railroading. These lines were not operated as one harmonious whole as they are at present. Each company was sepa- rate and distinct from the rest. It ran its cars over its own road only, and the passenger who wished to make the journey from New York to Buffalo was compelled to change cars at the end of each line. Sleepers and diners were, of course, unknown. Freight — there was comparatively little of it in those da5 r s — was handled in the same manner as passengers, a transfer from one car to another being made at the end of each line. Such a thing as sending a car through to the destination of the freight, without "breaking bulk," had not occurred to the men who operated the various roads. Rapid Development of Railways. Railway development in other States was also rapid. Between 1830 and 1835 Pennsylvania constructed and operated 200 miles of road. The Columbia Railroad, the first division of the present Pennsylvania system, was constructed by the State, and by 1834 there was railway communication between Philadelphia and Pitts- burg. In 1837 the Camden & Amboy line, connecting Philadelphia with New York, was finished, and the same year also saw the completion of the Philadelphia, Wilmington & Baltimore road. The Reading was opened in 1838. Massachusetts was the next active State. By 1835 three lines connected Boston with Providence, Lowell and Worcester, and in 1841, what is now known as 28 THE HISTORY OF TRANSPORTATION. the Boston & Albany, made connection with the lines for New York and Buffalo at Albany. Use Home-Made Locomotives. At first the few locomotives in use were imported from England but this policy was soon abandoned. Locomotive Built by Peter Cooper in 1830. The foreign-made engines were not adapted to Ameri- can track conditions, and were also too expensive and difficult to obtain. Little attention was paid in those days to grades and curves by American railway builders. The only desire was "to get there." As a consequence the roads ran up hill and down and swung around sharp curves in reckless manner. The "rails" were often but little more than iron straps. THE HISTORY OF TRANSPORTATION. 29 Under these conditions, aside from the important economies effected in time and money, the building of railway engines adapted to home needs became a neces- sity in America. Out of this has grown one of our greatest industries. In one year the N. Y. Central system alone paid out $31,000,000 for new engines and car equipment. And this in seventy years from the time when people were doubtful whether the expendi- ture of $5,000 in the construction and equipment of an entire road would be a paying investment. Early American Locomotives. Some of the early American locomotives were queer specimens of design and workmanship. Peter Cooper, who made a fortune in glue, and later gave the most of it away in educational enterprises, constructed the "Tom Thumb" in 1830. This was the first real, prac- tical home-made locomotive. It was constructed for use on the Baltimore & Ohio, in the financing of which road Cooper was interested. The "Tom Thumb" did all — and more — that could be expected of it. Weighing less than a ton, it hauled a load of four and one-half tons up steep grades, over poor tracks, at a speed of from 12 to 15 miles an hour. Larger engines of greater power and more substan- tial finish were turned out by the West Point Foundry Works, and by Matthias Baldwin, of Philadelphia, the founder of the great plant now known as the Baldwin Locomotive Works. Baldwin's first locomotive, built in 1832, was called "Old Ironsides," and was used on the Columbia road. 30 THE HISTORY OF TRANSPORTATION. Improvements came fast, and by 1836 Henry It. Campbell and James Brooks, of Philadelphia, the lat- ter the founder of the Brooks Locomotive Works, had constructed the first locomotive with four connected driving wheels (two on each side) and a four-wheel forward truck. Primary Purpose of Railways. It is an interesting fact that our early railway build- ing was almost entirely in the interest of passenger and mail transportation. Mails must be moved with rea- sonable rapidity ; when business, or other reasons, made the moving of individuals from one place to another necessary, this necessity was generally imperative. People did not travel for pleasure in those days. Freight transportation, owing to the expense, was an unknown, almost a negligible quantity. Communi- ties lived almost entirely within themselves, producing about everything they consumed except a few imported articles, and these were looked upon as luxuries. Peo- ple in the seaport towns like New York, Boston, Phila- delphia, etc., used tea; those in the interior, unable or unwilling to pay the high cost of stage coach or carter's van transportation, got along without it. There was very little moving of freight from one place to another. If a resident of city or village needed a wagon, the local wheelwright made it; the butter, eggs, poultry and wheat were teamed in by the neigh- boring farmers. Cordwood for fuel was abundant and close at hand. Such a thing as sending the surplus products of farm or factory to distant markets was THE HISTORY OF TRANSPORTATION. 31 unknown and impossible; the carriage charge made such traffic prohibitive. This was not the fault of the carter; his charges were not extortionate. They were high, higher than the traffic could bear, but this was because his expenses were relatively high. He traveled slowly, his horses "Old Ironsides," Used in 1832. and himself had to be fed, and his wagon capacity was limited. The result was that only a few expensive articles could be carried. The cost of transporting ordi- nary products was more than the selling price of these products when landed at their destination. What Railways Have Done. It was the destiny of the railwaj r s to change this condition. By making intercourse between communi- ties reasonably certain and cheap they gradually brought about an interchange of commodities. The North wanted something the South had, and vice yersa. It became the work of the railways to make the 82 THE HISTORY OF TRANSPORTATION. exchange. The man who was making churns or wagons for his home community of 300 people found that the railways afforded him the means of reaching a larger market. He put up a factory and, instead of working with his own hands to supply the limited needs of 300 people, employed an army of helpers to meet the un- limited requirements of the vast population which he could reach by rail. It was in this way that our present great manufac- turing enterprises were built up. It is this same agency which has made it possible for the farmer in the West to sell his grain in the East at a fair profit, instead of burning it at home for fuel because no market could be reached. Period of Greatest Activity. In 1830 the United States had only twenty-three miles of railway. By 1840 the mileage had increased to 2,818. How rapid the increase has been, and the periods in which there has been the greatest activity, is shown in the following official figures: 1830-1840— 2,818 miles. 1840-1850— 9,021 miles. 1850-1860— 30,635 miles. 1860-1870— 52,914 miles. 1870-1880— 93,296 miles. 1880-1890—163,597 miles. 1890-1900—193,346 miles. 1900-1915—251,984 miles. It is significant of the intimate connection between railway construction and industrial and agricultural de- THE HISTORY OF TRANSPORTATION. 33 velopment that the late years from 1900 to 1915 mark the period of greatest activity in all three lines. The Progress Westward. The year 1862 found railway communication with the Missouri River established, a line tapping that stream at St. Joseph's, which was then the most im- An Old-Time Passenger Coach. portant town on the river. Progress from Buffalo westward was slow. An important link in this system of rail communication was the Pontiac & Detroit line, completed in 1845. Another was the Detroit & St. Joseph Railroad, now the Michigan Central, a portion of which running to Ypsilanti, was opened in 1838. Railroading was not without its tribulations in those days. A grand banquet was given at Ypsilanti when the road was formally opened, a special train conveying many distinguished guests from Detroit. On the re- turn trip the one engine owned by the company broke down, and the train was hauled back to Detroit by relays of horses. I.B.I,. Vol. 8—3 34 THE HISTORY OF TRANSPORTATION. Earnings in the Early Days. The Detroit & St. Joseph was a State road, and the progress of construction, earnings, etc., was watched with great interest. In its issue of May 19, 1838, the Detroit Journal § Courier contains this cheerful an- nouncement : "It is gratifying to know that the freight and travel on this State road are increasing rapidly. The average receipts for several days past have been upwards of $300. On Monday they were $326; Tuesday, $431; Wednesday, $310; and Thursday, $372." In February, 1846, the road was completed to Kala- mazoo; and, notwithstanding the gratifying showing in the way of earnings, the State, in the latter part of this year, having expended $1,954,308.28 on the road, de- cided to sell it to a railroad corporation organized to take it over, for $2,000,000. It required six years of further struggle to complete the road to Chicago. Birth of Transcontinental Route. It was in this manner, piece by piece, that the present great railway system of our country was built up. Small stretches of road were constructed by independ- ent companies after the plan inaugurated in New York and Pennsylvania, and, after these had become reasonably well connected, the various roads were bought up and consolidated. At the time the Missouri was reached in 1862 there were about 32,000 miles of road in operation in all parts of the country. THE HISTORY OF TRANSPORTATION. 85 The Civil War, and conflicts with the Indians in the West, demonstrated the need of a through trans- continental line for the speedy, certain movement of troops and supplies, as well as goods to and from San Francisco in case the seaports of the Atlantic and the Gulf should be effectually blockaded. It was this emergency which led to the building of the Union and Central Pacific roads. How the Pacific Was Reached. Conditions were not inviting for the investment of private capital. The country between the Missouri and the Pacific Coast was peopled mainly by hostile In- dians. Traffic was naturally insignificant. But the exigencies of the time demanded a road, and to secure it the Federal government was forced to extend finan- cial aid. This it did by issuing special bonds, the pro- ceeds of which were used for the construction of the road. The money thus raised was to be paid back to the government in the hauling of troops and supplies, transportation of mails, transmission of telegraph mes- sages, etc. For many years the Pacific roads were far from profitable, but in time the country was settled, an im- mense traffic resulted, and finally the government claim was paid in full. Today there are five great American trunk lines in operation to the Pacific Coast, and one more in course of construction. Canada also has two through lines, and work on a third is being pushed rapidly. 36 THE HISTORY OF TRANSPORTATION. Result of Railway Transportation. Before the development of railway transportation, the great trade centers were naturally on the sea coast or rivers. Water transportation was cheap and easy, and trade followed the cheapest route. The seaports have retained their prominence, but, in many instances, the advantages gained by inland towns which were located on navigable waters have been to a great degree lost. There was a time when St. Louis, by reason of its river trade, far out-ranked Chicago in commercial im- portance, but as the railways began to make the latter city a central headquarters it took on a phenomenal growth, and is today second only to New York in population, wealth, and volume of trade. Rates on the Pioneer Roads. Reference has been made to the rates on the pioneer railways being much lower than those possible on stage coaches or carter's van, and that in this may be found the prime cause of the phenomenal growth of the United States. This is correct, but these rates were only relatively low. The shippers of today would be horror-stricken if asked to pay the same charges for railway transportation as were in effect from 1830 to 1850. During the period named the rates for transporting goods by rail were seven and one-half times greater than those now in force. Where it now costs one dol- lar to transport a given amount of freight from New York to Chicago, the charge, up to 1850 and even later, THE HISTORY OF TRANSPORTATION. 37* was $7.50, and even this was then looked upon as reasonable. Speed in Ye Olden Time. In the matter of speed there also has been a wonder- ful transformation. When the first line from Phila- delphia to Pittsburg was built, in 1834, there was great First Locomotive Built by Brooks in 1836. rejoicing over the fact that the journey could be made in three and one-half days — 84 hours. But this great feat was only possible after the road had been "im- proved," which was in 1837. Today a journey from Philadelphia to San Francisco may be made in the same time. In those days, a person desiring to travel from Philadelphia to Louisville would go to Pittsburg by rail and there take passage in a "packet," a canal boat drawn by horses. Freight was sent over the same route. 88 THE HISTORY OF TRANSPORTATION. Sixty years is a short period, comparatively speaking, but into the past sixty years have been crowded more progress in the matter of transportation by both land and water than can be recorded in the whole previous history of the world. CHAPTER II. ORGANIZATION OF OPERATING FORCE. In the handling of transportation matters, the one prime requisite, aside from necessary equipment, is thorough organization of the operating force. We must, of course, have the equipment first, but unless this equipment is properly made use of the results will be far from satisfactory. In no line of transportation effort is this better shown than in railroading. The modern, well-managed railway or steamship line moves with the regularity and precision of watch mechanism. Its operating department is a huge human machine, composed of human cogs, each interfitting and per- forming a well-defined duty. Organized Like an Army. To secure unity of action toward the desired end the operating department is organized like an army. There is first a general-in-chief, a commander, who is there to carry out the desires of the people in whose service he is employed. The general of an army gets his instruc- tions from the War Department, and the latter from Congress, which is representative of the people. The general manager of a railway or steamship line takes his orders from the president and chairman of the exec- utive board; these represent the directors, and the directors in turn voice the desires of the stockholders. No soldier would think of going over the head of his 39 40 ORGANIZATION OF OPERATING FORCE. general to make suggestion or complaint to the War Department. Neither will a real railroad man dispute or disobey the orders of the general manager. Each official is supreme, so far as operations are concerned, and responsible only to his immediate superiors. Organization of Union Pacific. The method in vogue on the Union Pacific, which is accredited with being one of the best organized rail- way systems in the country, may be taken as illustrative of the latest and most effective plan of organization. Here we find six general departments, the heads of which all report direct to the general manager. These six departments are those of general superintendent, chief engineer, superintendent of motive power, super- intendent of coal service, purchasing agent, and chief surgeon. Each of these officials in turn has under him well- organized departments, each with its responsible head, and these departments are again subdivided. Every- where there is system, system so perfect that a missing coupling-pin can be located. Duties of General Superintendent. Next to the general manager the general superin- tendent is the most important official. He controls six sub-departments, consisting of division superin- tendents, car service agents, special agent, superin- tendent of telegraph, superintendent of dining cars and hotels, scale, fire and sanitary inspector. ORGANIZATION OF OPERATING FORCE. | UNION PACIFic STOCKHOLDERS "" BOARD OF DIRECTORS PRESIDENT AND CHAIRMAN OF 30AR0 lAROI Vice Pres.& Gen.lVlgr, 41 Chief Surgeon "Chief Engineer 5urgeons Stale, fire I San. Inspect Asat. -HEngineer Gen. 5upt. Signal Engineer 4 SupT Wood PresetvWta Special Agent . Su R + - Motive Pwnr Mechanical Engineer Engineer of Test's Genorai Shops , 5upt. Cos' Service Purchasing Agent Car Service Sup »s , Oiv. Engineer jen.Fofeman B.&B B.&B. Carpenter Signal supervisor Signalmen Road Masters Stationer Gsrnjral Slwtkeeper STore) Keepers SupTOining C«s»Hotils it i Su|> ' , V Telegraph " Ass't. Dlv. Supt. Master Mechanic Tram Master Station Agents Yard Masters Operators _ Station Clerks Station Laborers Yard Men Section Foremen _ Chief Dispatcher Dispatchers Dispatching Operators — Enginemen *— Trainmen Traveling engineers Foremen \. Shop Men I "Track" Laborers 42 ORGANIZATION OF OPERATING FORCE. It would be impossible for one man to give personal attention to all the operating details of an entire rail- way of any considerable size, so the road is usually cut up into divisions, at the head of each of which is a division superintendent who reports to the general superintendent, and to him only. To all practical pur- poses, so far as operation is concerned, each of these divisions is a separate and distinct road. The general superintendent, by keeping in close touch with condi- tions on each division, understands the situation on the entire line, and is thus in position to secure the results which his superiors expect. Duties of Other Officials. Before there can be successful operation, the road and its equipment must be in condition to operate. This is the duty of the general superintendent's col- lateral officials — they must get the road in condition for him to run. The engines and cars must be in shape for service — this is the duty of the superintendent of motive power; fuel is needed at convenient points — it is secured and distributed by the superintendent of coal service; the engineering department sees that the bridges, buildings, roadbed, etc., are in proper condi- tion; the purchasing agent looks after the needed sup- plies, etc. All of these services are essential to the success of the general superintendent. As a general rule, he has no direct control over these departments, but at the same time is largely dependent upon them. The heads of these various collateral departments report direct to the general manager. ORGANIZATION OF OPERATING FORCE. 43 What Division Superintendents Do. Each division superintendent is supreme in his terri- tory as to matters of operation, and responsible only to his chief. Under him are the following officials and their employees: Assistant division superintendent, train master, mas- ter mechanic, division engineer, travelling engineers, general foreman, carpenters, station agents, yard mas- ters, chief dispatcher, signal supervisor, signalmen, operators, yardmen, dispatching operators, enginemen, trainmen, road masters, section foremen, station hands, etc. He has control over everybody in any way con- nected with the actual operation of the road on his division. In two instances — enginemen and division engineers — there is a division of authority in some instances, but this is unavoidable. If an engineman is wasteful in the matter of fuel, or careless in the handling of his engine, so as to invite expensive repairs, he will find himself in trouble with the superintendent of motive power. If a work of engineering out of the ordinary is to be done, the division engineer will be under the authority of the chief engineer, rather than of the divi- sion superintendent. Routine of Railway Work. If a track laborer discovers a defect of any impor- tance in the roadbed which he cannot repair, he reports it to the section foreman. If it is beyond the ability of the latter to make good, or requires skilled men or materials, he calls on the road master. In unusually 44 ORGANIZATION OF OPERATING FORCE. serious instances the division engineer is called upon, and from him report may be made to the division super- intendent. Generally the routine ends here, but some- times there are emergencies in which the general superintendent must be consulted. Every man has his place and well-defined duty. Whatever is within the line of this duty he must do. But there is a limit to this duty, beyond which he is not expected to go, except in cases of emergency, with- out consulting the official immediately above him in rank. It is by adhering closely to this system that the roadbed and equipment are kept in good condition, and trains moved with regularity. This is the field of the general superintendent. Ditties of General Freight Agent. At the head of the freight department, and report- ing direct to the general manager, is the general freight agent. It is his work to make rates that will secure traffic for his road and at the same time be remunerative to the company. He is in full charge of everything pertaining to freight, its receiving, forwarding, and delivery. Under the general freight agent, and reporting direct to him, are the numerous sub-officials and clerks in the general freight office, the hundreds of agents who han- dle freight at initial and way stations. If a shipment is lost, delayed, or miscarried, the general freight agent, through some subordinate, must trace and locate it. Should a shipper make claim for an overcharge, it is the general freight agent who must investigate and make refund if the claim is substantiated. The claim ORGANIZATION OF OPERATING FORCE. 45 may never reach him personally — it probably will not — but one of his subordinates will attend to it. Duties of General Passenger Agent. In similar manner the general passenger agent, also reporting to the general manager, is in control of all the passenger business of the company. Every man or woman who sells tickets, or handles ticket money in any form, is subordinate to the general passenger agent. So are all the sub-officials, the clerks in the general office, the travelling and city passenger agents, and the men who get up excursions "to points of unusual interest." Whenever an advertisement is printed in a news- paper, or a poster appears setting forth in big type and dazzling colors the attractions of some particular place or event on the line of the company, it is the work of the general passenger agent — not done by him in per- son, but by one of his most valuable and best-paid assis- tants, the advertising man. Organization Must Be Thorough. Everything connected with the successful operation of a railroad depends upon organization. If the organ- ization is thorough and sound, the results will be good; if it is weak, or lacking in any important respect, disas- ter will follow. The strongest railroad or steamship company in the world can be wrecked by lack of syste- matic effort and conduct of its business. The end may be long delayed, but it will come eventually. Leaks, small at first but gradually increasing, until enormous 46 ORGANIZATION OF OPERATING FORCE. sums of money are lost, will occur; the roadbed will run down and equipment wear out. Patrons will be- come dissatisfied and transfer their business. When these conditions arise the result is easy to foresee. Various Other Departments. On all large transportation lines there are other de- partments, reporting either to the general manager, or some specially delegated vice-president. None of these, however, have anything to do with the operation of the road. They are usually clerical, legal or financial in their nature. CHAPTER III. RELATIONS OF CARRIER AND SHIPPER. There is marked difference in the relations of carriers by water and carriers by rail as regards the shipper. In the case of water transportation the owner of the vessel assumes little or no liability beyond the simple carriage of the goods entrusted to him. He is not responsible for delays, loss by theft, damage in transit, or by the sinking of his vessel by storm, collision or accident, un- less the loss is caused by design, gross carelessness or incapacity on the part of the master or crew. Shippers by water routes therefore almost invariably insure the goods they ship, provided the quantity is large enough to warrant the expense. Liability of Railroads. The common carrier on land, the railroad, is in a different position. By the express terms of the uni- form bill of lading, endorsed by the Interstate Com- merce Commission, a railway becomes responsible to the shipper, with certain reasonable exceptions, for the safe carriage and delivery of goods committed to its care for transportation. The opening paragraph of the official uniform bill of lading says : "The carrier or party in possession of any of the property herein described shall be liable for any loss thereof or damage thereto, except as hereinafter pro- vided." 47 48 RELATIONS OF CARRIER AND SHIPPER. This is broad and explicit enough to remove any doubt as to the liability of the earner in case of loss. The shipper must deliver his freight for transporta- tion in good condition, full weight, and properly packed. Once thus delivered to the custody of a rail- road the responsibility of the shipper ends, and that of the carrier begins, terminating only when the freight is turned over to the consignee at point of destination. When Railroads Are Exempt. It is held that the railroad must protect property committed to its care for transportation, but there are certain conditions under which it can not extend this protection. These conditions of exemption are ex- pressly stipulated as follows: Damage or delay caused by the act of God, such as washout and fire by lightning stroke, confiscation by the public enemy, differences in weight caused by natu- ral shrinkage or discrepancies in elevator weights, loss by strikes or riots, damage by fire when goods have remained uncalled for at point of destination more than forty-eight hours, or loss or damage of any kind on another line to which it may be necessary to transfer goods in order to complete the journey. What Railroads Must Do. With these exceptions the land carrier assumes to- ward the shipper the relation of an insurer. For an agreed upon charge it contracts to not only transport the goods, but to deliver them promptly and in good condition. If the railroad receipts for goods as being in good condition it must deliver them in similar good RELATIONS OF CARRIER AND SHIPPER. 49 condition to the consignee. This extends even to per- ishable commodities, provided they are so marked and ■properly packed. Should delay ensue en route owing to an act of God, a raid by an enemy, a strike or a riot, and the goods be spoiled in the delay, the railroad would not be liable for the loss. This is a chance taken by the shipper. But if the delay is one which might have been avoided by the exercise of due diligence or common sense on the part of the carrier's employees the railroad must settle the loss. Loss Arising from Fire. Should a fire occur from natural causes, either en route, or while the goods are still in the possession of the carrier (with the exception previously noted), the railroad must pay for them, the same as an insurance company would if it had issued a policy on them. To this extent the bill of lading is an insurance policy. A shipped a quantity of baled hay by the B railroad. While being loaded into a car by B employees, it was set on fire by a spark from a pipe a bystander was smoking, and totally destroyed. B settled for the hay at the price then ruling at the point of shipment. C shipped gasolene by the D road and neglected to attach a red warning label as the law requires. One of D's employees threw a lighted match in the vicinity of the gasolene. An explosion and total loss followed. D refused to pay the loss. C sued and was defeated, the courts ruling that he was guilty of contributory negligence in not attaching the warning label. I.B.L. Vol. 8—4 50 RELATIONS OF CARRIER AND SHIPPER. Liability Confined to Own Road. A common carrier by rail is liable only for the safe transportation of passengers and freight over its own line. It frequently happens that, in order to reach the point of destination, a car has to be transferred from one road to another. A car of grain, for instance, is routed from Chicago via the Nickle Plate to some point on the West Shore road in New York. The Nickle Plate receives and receipts for the grain, but can transport it only to Buffalo, where it is turned over to the West Shore, which receives its pro rata of the freight charge. If an accident occurs between Chicago and Buffalo the shipper looks to the Nickle Plate for redress. If the damage is done between Buffalo and the point of destination, the responsibility rests with the West Shore. Law of Principal and Agent. The shipper has had no direct dealings with the West Shore. His transaction has been entirely with the Nickle Plate, and the bill of lading receipt issued by the latter is the only documentary evidence of shipment which the shipper holds. But this does not release the West Shore. In receiving the freight at Chicago the Nickle Plate acts as principal only over its own line. For the transportation from Buffalo to destination it acts in the capacity of agent for both the shipper and the West Shore road. It is well understood in law that a principal is bound by the acts of an agent, provided those acts are within the authority of the agent. RELATIONS OF CARRIER AND SHIPPER. 51 It is by general acceptance of this policy that through shipments are made possible. Should it be abandoned we would have to revert to the old system of making a new shipment at each transfer point, with its annoying delays and confusion. Old Plan Slow and Expensive. Take the case of a shipper in New York who desires to forward a carload of merchandise to St. Paul. If the old system were in vogue, each road operating inde- pendently of the others, the car would be taken over, say, the New York Central to Buffalo. There the Cen- tral would stop its own car, unload it, and turn the merchandise over to the Michigan Central, which would reload it in one of its cars. This operation would again be repeated at Chicago, where the Chicago, Milwaukee & St. Paul would take charge. Thus there would be a breaking of bulk three times, with unavoidable delay and expense, each road into whose charge the merchandise passed issuing a receipt therefor. How the Modern Plan Works. Under the modern plan of having the various roads act as agents for connecting roads, there is no breaking of bulk, and a lot of delay and expense is avoided. The receiving road loads the merchandise into one of its cars, and this car goes through to destination, its seals unbroken, no matter how many different roads it may be necessary to haul it over in completing the journey. The bill of lading first issued is the only one the 52 RELATIONS OF CARRIER AND SHIPPER. shipper receives, but every road over which the car travels in reaching its destination is bound by it, so far as responsibility for safe transit over its own line is concerned. A car might travel in safety over the New York Central, the Michigan Central and the Chi- cago, Milwaukee & St. Paul to St. Paul, and be de- stroyed in the freight yards at St. Paul. In such a case there could be no evasion of responsibility. The Chicago, Milwaukee & St. Paul would have to settle with the shipper. Shippers Have Responsibilities. Claims for damages are settled on the basis of the actual value of the property involved, unless the ship- per in order to secure a low rate has purposely under- stated the value to the railroad, in which event the car- rier is liable for the stated value only. Here comes in the bounden duty of the shipper to deal fairly with the carrier. Should a shipper take out insurance on his own account, and a loss ensue, the carrier will have the bene- fit of this insurance if such carrier settles with the ship- per, unless there is a special agreement to the contrary. When it becomes necessary, through faulty work on the part of the shipper, to repack merchandise in tran- sit, a carrier may have the work done at the expense of the shipper, adding cost of same to the freight charges. Two Extremes of Liability. A railroad was transporting a carload of fruit in the earlv fall when favorable weather conditions might RELATIONS OF CARRIER AND SHIPPER. 53 reasonably be expected. No provision was made to protect the fruit from freezing, as it was at a time of year when frosts were unheard of. During the journey the weather changed suddenly, there was a sharp freeze, and the fruit was ruined. Efforts on the part of the shipper to collect damages from the carrier were defeated in every court, from that in which trial was had to the supreme bench. The rul- ing in all was the same — the frost at that time of year was an unexpected act of God, which could not be pro- vided against. In another instance, fruit, properly packed and marked, was shipped late in the fall when freezing weather was at hand, and was destroyed in transit. It was shown that the employees of the carrier allowed the stove fires to die out en route, and the shipper ob- tained a verdict against the carrier. Liability of Carriers by Water. As a general proposition, wilful design or neglect on the part of the master of a vessel or its crew must be shown before there can be recovery for loss or damage. The broad difference between the liability of rail and water carriers is made because of the supposedly greater risks and dangers attendant upon water travel. It is argued that the shipper by water is conversant with these risks, gets the benefit of low rates for transpor- tation, and if he wishes protection against loss, is in position to obtain it by insurance. Where liability does attach to a vessel, the amount of such liability is limited to the actual value of the vessel and the freight. 54 RELATIONS OF CARRIER AND SHIPPER. Liability of Vessel Owners Limited. It frequently happens that a vessel is owned by sev- eral individuals. In such case no owner can be held liable to a greater amount than his share of ownership bears to the total value of the vessel. If a vessel is worth $100,000 and A owns a $10,000 share, his pro rata of any loss which might occur would be one-tenth of such loss. If the loss were $25,000, A's share would be $2,500. This limitation is fixed by Federal statute. Should an owner or master deliberately wreck or otherwise destroy a vessel in order to collect the hull insurance (as has often been done), or for any other purpose, the owner would undoubtedly be liable for losses which might be sustained by shippers. Incompetency Begets Liability. Aside from this, very little liability attaches to car- riers by water, except that arising from gross careless- ness or incapacity. Should the owners of a vessel send it on a voyage in charge of an incompetent master, or with an ignorant, inadequate crew, "short-handed," as sailors say, there would be liability. But the burden of proof as to this incompetency or inadequacy would rest with those who sought to recover damages. The Federal statute describes how certain dangerous freights shall be packed and marked for transport, and expressly prohibits the transportation of such freights by passenger craft under any conditions. Defined by Federal Statute. How closely the liability of carriers by water is de- fined, may be seen in the following excerpt from the Federal statute governing navigation: RELATIONS OF CARRIER AND SHIPPER. 55 Sec. 3. — That if the owner of any vessel transporting merchandise or property to or from any port in the United States of America shall exercise due diligence to make the said vessel in all respects seaworthy and properly manned, equipped, and supplied, neither the vessel, her owner or owners, agent, or charterers shall become or be held responsible for damage or loss result- ing from faults or errors in navigation or in the manage- ment of said vessel nor shall the vessel, her owner or owners, charterers, agent, or master, be held liable for losses arising from dangers of the sea or other navi- gable waters, acts of God, or public enemies, or the inherent defect, quality, or vice of the thing carried, or from insufficiency of package, or seizure under legal process, or for loss resulting from any act or omission of the shipper or owner of the goods, his agent or repre- sentative, or from saving or attempting to save life or property at sea, or from any deviation in rendering such service. Should the master of a freight-laden craft meet a disabled vessel at sea and the rescue of passengers or crew from the latter be advisable, the master of the rescuing craft would have authority under this clause to dump overboard any part or all of his cargo, if necessary, and the owners thereof could not recover for the loss unless they had the goods insured. Like- wise a master, in case of storm or other disaster, would have the right to jettison (throw overboard) his cargo in an effort to save his ship, and no liability for damages would attach to his act. Liability for Improper Handling. Carriers by water must exercise due care in the han- dling of freights as regards loading, stowing in vessel 56 RELATIONS OF CARRIER AND SHIPPER. and delivery. Loss occasioned in the improper or care- less handling of freights while being loaded or un- loaded, or resulting directly from improper stowage, is recoverable. On this point the Federal statute says: It shall not be lawful for the manager, agent, master, or owner of any vessel transporting merchan- dise or property from or between ports of the United States and foreign ports to insert in any bill of lading or shipping document any clause, covenant, or agree- ment whereby it, he, or they shall be relieved from liability for loss or damage arising from negligence, fault, or failure in proper loading, stowage, custody, care, or proper delivery of any and all lawful merchan- dise or property committed to its or their charge. Any and all words or clauses of such import inserted in bills of lading or shipping receipts shall be null and void and of no effect. [The provisions of this section are not applicable to the transportation of live animals, by section 7 of this act.] CHAPTER IV. MAKING RATES AND FARES. In making railroad rates to meet competitive condi- tions, some localities are certain to receive more favor- able treatment than others. These discriminations, however, between persons, places and different com- modities must be reasonable. The rates must be just to all concerned. The railroads must not so discrimi- nate against any place as to prevent its healthy devel- opment. The Government regulation of rates is designed principally to prevent the competitive struggles of railroad companies from resulting in unreasonable dis- criminations in rates. It is one of the functions of the State to see that all localities and shippers are treated with absolute justice. There is no mathematical formula by which "reason- able" rates may be determined, but it is certain that rates cannot be fixed lower than the extra cost resulting from the performance of the particular services for which the charges are made. If the State, or any other authority, were to fix rates below that point, it would soon destroy the value of the railroad property. Nor can the railroad charges justly be greater than the value of the service to the shipper or traveler. If the railroads made the rates higher than the value of the 57 58 MAKING RATES AND TABES service, the inevitable result would be that traffic would fall off. Thus it will be seen that the minimum rate below which the railroad charges cannot go is determined by the additional cost of performing a particular service; while the maximum beyond which they cannot go is fixed by the value of the service. The "reasonable rate" lies somewhere between these two extremes, and it "must be determined for each class of traffic or each important commodity with reference to measurable costs of service, and with regard to the value of the article." It will be readily seen, therefore, that the actual fixing of rates by traffic officials and their regu- lation by Government authority necessarily depend upon the exercise of human judgment. They are not governed by mathematics. Importance of Freight Rates. The making of freight rates is more important than the fixing of passenger fares, and the conditions gov- erning the two are vastly different. It is much easier to fix and enforce passenger fares than it is to deter- mine freight rates, while the policy of the railroad com- pany with regard to the latter is of the highest im- portance. No less than 70 per cent of the total income of American railroads is derived from the freight services, and only a little over 20 per cent from passenger busi- ness. The other 10 per cent of the revenue comes from the transportation of mail and express and from "other sources." MAKING RATES AND FARES 59 The first step in freight rate making is the classifi- cation of freight. Every railroad company is called upon to transport thousands of different kinds of arti- cles. It is therefore necessary to group these articles into a limited number of classes and to base the rates as far as possible upon classes instead of upon indi- vidual articles. Over one-half (54 per cent) of the great volume of traffic carried by the railroads of the United States is made up of minerals, mainly coal and iron ore. In no other country of the world is the mineral traffic so great as in the United States, and as this traffic must be carried at low freight rates, the average earning of the railroads for carrying a ton of freight one mile is less in this country than elsewhere. Manufactures make up a little more than one-seventh of the total tonnage, forest products one-ninth, and agricultural products one-twelfth. These four commodities consti- tute over 90 per cent of the total traffic, the remainder being made up of animal products, general merchandise and miscellaneous articles. Freight Classification. In these few groups of commodities more than ten thousand distinct kinds of articles are included. It would be impossible, of course, to make a rate for each of the ten thousand articles, and it is therefore neces- sary to group the articles into a small number of classes and to make the rates vary by classes in- stead of by articles. It is also necessary, or at least 60 MAKING RATES AND FAKES desirable, that the railroad should give lower rates on commodities shipped in carloads than when they are handled in less than carload lots. These conditions are met by the freight classifications, which group the commodities into from ten to fourteen classes, giving to most articles a lower classification, and therefore a lower rate, when they are shipped in carload lots. The methods of classification are treated elsewhere. (See chapter on "Classification of Traffic") Commodity Tariffs. There are some articles of freight, however, that are not included in the general classification. These are commodities that are invariably handled in carload quantities, such as coal, lumber, livestock, grain, cement, and other bulky freight. Such commodities are each given what is called a "commodity tariff rate," and they are known in the railroad business as "ex-class freight." The number of commodities thus designated is quite large — about 1,500, taking the country as a whole — but the great majority of articles of freight are in- cluded within the classifications. Rate-Making Officials. The making of freight rates is a task belonging to the traffic department of the railroad, headed usually by a vice-president of the company. Under this official, in a large company, is a freight traffic manager and a passenger traffic manager. The general freight agent Eugene Morris' Freight Tariff No. 116-1. Item No. 1. SECTION No. 1 (See page 19 for application) CLASS RATES Will not "apply on traffic requiring refrigerator space on steamers On shipments for which no commodity rate is named in SECTION No. 2 to points designated below, the fol- lowing Class Rates, governed by Western Classification No. 61, I. C. C. No. 9, issued by F. J. Hoffmann, Agent, supplements thereto and reissues thereof, will apply. FROM ALL POINTS DESIGNATED ON PAGES 7 TO 11, INCLUSIVE OP TARIFF AS TAKING B AND C RATES ARTICLES Minimum weight, Carloads, 30,000 pounds, except as otherwise provided herein. NOTE— When via C. M. & St. P., By., Seattle or Tacoma, Wash., except when otherwise provided through rates named will not apply on pieces weighing over 10,000 lbs. On pieces weigh- ing over 10,000 lbs. export rates shown to Seattle. Tacooia, Wash., will be applied, plus ocean rates named in Note 7. When via M. St. P &. S. S. M. and Canadian Pacific Bys., via Vancouver, B. C, except where otherwise provided, through ratos named will not apply on pieces weighing over 5,000 lbs., or measuring 12 feet by 8 feet, by 5 feet,' when destined to Sydney, Aust.', Suva, Fiji Islands or Auckland, New Zea- land, or will not apply on pieces weighing over 10,000 lbs. or measuring 12 feet by 8 feet, when destined to Yokohama, Kobe, Nagasaki, Moji, Japan; Shanghai, Hongkong, China, or Manila, P.I. On pieces weighing over 5,000 lbs., or measur- ing 12 feet by 8 feet, by 5 feet, when destined to Sydney, Aust., Suva, Fiji Islands or Auckland, New Zealand, and on pieces weighing over 19,000 lbs., or measuring 12 feet by 3 feet, when destined to Yokohama. Kobe, Nagasaki, Moji, Japan; Shanghai, Hongkong, China, or Manila, P I., export rates shown to Vancouver, B. C, will be applied plus ocean rates named in Note 13. RATE3 IN CENTS PEB 100 LBS. (Ei:epta3o:herwl» nftted) When destined to or consign- ed through to ^Yokohama, Kobe, Nagasaki, Moji, Japan, Shanghai, Hongkong, China: Manila, P. I. Export Bates To s! 3 A- S«3 °"9 „~e«< ««..- 3™a as 3 ■" "3 5 g. 2§g Through Bates To _ Yokohama, Kobe, Nagasaki, Moji, Japan; Shanghai, Hongkong, China; Manila, P. I. When destined to or consign- ed through to Sydney, Aus- tralia- ®Suva, Fiji Islands; Auckland, New Zealand. Export Ratal To 1 « S o. -■ II* • s •3 . S | Throufih Bates To Sydney Australia; fa-Suva, Fiji Islands; Auckland, New Zealand *6s «3 (Points in Group A. Four Times First Class jPoints in Group B. (Points in Group C. (Points in Group A. Three and One-Half Times First Class) Points in Group B. [Points in Gr oup C . Three Times First Class. Points in Group A. Points in Group B . Points in Group C. Two and One- Half Times First Class. Points in Group A . Points in Group B. Points in Group C. Double First Class . Points in Group A . Points in Group B. Points in Group C. {Points in Group A. Points in Group B. Points in Group C. Points in Group A. Mist Class ,....-..] Points in Group B. Points in Group C . Points in Group A. Second Class..... {Points in Group B Points in Group C. Points in Group A Third Class \ Points in Group B. Points in Group C Points in Group A Fourth Class \ Points in Group B. Points in Group C ♦ Cane 8 64 8 40 el — Conibina 14 40 14 00 tion rates 9 60 9 33 will apply. 14 40 14 00 ♦ Cane 7 66 7 35 el — Combina 12 60 12 25 rates 8 40 8 17 will apply. 12.60 12 25 ♦Cane 6 48 6 30 el — Combina 10 80 10 50 tion rates 7 20 7 00 will apply. 10 80 10.60 ♦Cane 5 40 6.26 A- Combina 9.00 8 75 tion rates 6 00 6 83 will apply. 9 00 8 75 ♦Cane 4 32 4.20 el — Combina 7 20 7 00 rates 4 80 4 67 ♦Cane 3 24 3 16 el -Combina 5 40 5 25 rates 3 60 3 50 ♦Cane 2 16 2 10 el- ■Combina 3 60 3 60 tion rates 2.40 2 33 ♦Cane 1.86 1 82 -Combina 3 10 3 03 tion rates 2 07 • 2 02 ♦Cane 1 66 1 61 -Combina 2 60 2.52 tion rates 1 73 1 68 ♦Cane 1 32 1.29 el— Combina 2.20 2 16 rates 1 47 1 43 will apply. 7.20 7.00 will apply. 6.40 6 26 will apply. S 60 3 60 will apply. 3.10 3 03 will apply . 2.60 2 62 will apply. 2 20 2 16 ♦Advance. ©At Yokohama, Japan, cargo is unloaded direct into Customs sheds when shipped via Canadian Pacific Royal Mail Steamers, or via Toyo Kaisha Kisen Steamers. @Rates to Suva, F. I., apply via Vancouvei, B. C , in connection with M. St. P. & 8. S. M. and Can. Pac. Rys.. and Canadian Australian Royal Mail Steamship Co., only. For explanation of abbreviations, notes, rules and application of rates, refer to pages 16 to 21 lncl. Sample Page of Joint Export Tariff, Section 1— Class Rates from Stations in Eastern Territory to Pacific Terminals (Western Classi- fication). 62 MAKING RATES AND FARES is a subordinate of the former. In the largest systems the work is subdivided and there are two general freight agents, one in charge of local traffic and the other of through traffic. Sometimes there is a third agent in charge of coal traffic. The general freight agent is the official who actually makes the rates and prepares and issues the rate sheets. These are signed by him and also by the freight traffic manager. The latter controls the general policy of rate making, consulting with the traffic vice-president on im- portant questions of policy. Only the most vital points of traffic policy are brought to the attention of the president and board of directors. The information on which the rates are based is gathered from a variety of sources, including the divi- sion freight agents and freight solicitors. Rate making demands a knowledge of innumerable details regarding the territory to be served and the actual conditions of business therein. Making Local Freight Rates. In making rates on local traffic, that is, traffic local to the lines of any one company, the general freight agent prepares and issues rate sheets without reference to competing carriers. All rates on interstate traffic must be filed with the Interstate Commerce Commis- sion at Washington and they do not become effective until 30 days after being thus filed. In the case of the great coal carriers the making of coal rates is one of the functions of the general coal freight agent, the MAKING RATES AND FARES 63 method of procedure being similar to that used in fix- ing charges for all other kinds of traffic. Making Competitive and Through Rates. In fixing competitive and through rates, the rate sheets are not issued by the general freight agent or traffic manager until after consultation with the traffic officials of competing railroads. Meetings of the va- rious traffic associations afford an opportunity for con- ferences in regard to such rates. All railroad com- panies belong to one or more of these associations. Since 1897, when the United States Supreme Court decided that the fixing of competitive and through rates by the traffic associations themselves was a violation of the anti-trust law, it has been necessary for each rail- road company to act independently in making its rates. But competing and connecting lines are usually con- sulted and the rates are informally fixed at the meet- ings of the associations. These rates are then pub- lished by the individual companies. No attempt is now made, as prior to 1897, to enforce the rate agreements by fines and penalties assessed by the traffic associations against offending members. The Percentage Tariff System. In the Central Traffic Association territory east of the Mississippi and north of the Ohio and the Potomac, the through rates on classified traffic over competing lines are worked out by taking as a basis the rate from Chicago to New York by the shortest line. Under 64 MAKING RATES AND FARES what is known as the "percentage tariff system," east- bound class rates to New York from points other than Chicago are fixed percentages of the rate from Chicago to New York. Similarly, on west-bound class rates, the i ate from New York to Chicago is taken as the basis, and the rates from New York to points other than Chicago are fixed percentages of this base rate. The Basing Point System. Another system of rate making prevails in the terri- tory south of the Ohio and east of the Mississippi. This is known as the "basing point system." The rate to each of the larger cities on competing roads is taken as the basis of the rates to local points adjacent to such centers. The larger cities of the South where com- petition prevails are called "basing points," the rates at these points being fixed subject to the competition of alternate routes. The rule then is that the rate from a distance to local towns near a basing point city is the sum of the rate to the basing point, plus the local tariff from the basing point to the local town. Thus the freight rate from Philadelphia to a town, say twenty-five or fifty miles from Atlanta, Ga., is the rate from Philadelphia to Atlanta, plus the rate from Atlanta to the nearby town ; and should this town be nearer Philadelphia than Atlanta is, the rate is higher than that to Atlanta, although it is a shorter haul. While this seems to be a discrimination against the local point, it has been held to be legal because of the greater competition at Atlanta, the basing point. This system of rate making is the principal feature of MAKING RATES AND FARES 65 the Southern rate policy, and applies to nearly all of the Southern territory. The Blanket System of Rate Making. Competition is keen for traffic taking the long haul between Atlantic Coast territory and the Pacific Coast region, and this competition is of two kinds. The trans- continental railroads actively compete for this business and they also have to meet the competition of steam- ship lines operating between the two seaboards. This competition has been intensified by the opening of the Panama Canal to commercial traffic (August, 1914). The effect upon transcontinental rates is two-fold: First, a lower rate is given from points east of the Mis- souri River to the Pacific Coast states than is given to places on the way west situated in the states like Utah and Nevada, immediately east of the Pacific Coast states. The competition of steamship lines is directly responsible for this lower rate on the longer haul to the Coast. Second, the rate to the Pacific Coast terminals, from Seattle to San Diego, is the same from all points east of the Missouri River. Thus, on nearly all classes of freight the rate from New York to San Francisco is no higher than that from St. Louis or Kansas City. This system of rate making is known as "the blanket system," the entire territory east of the Missouri River being covered, or "blanketed," by the same west-bound rate. In the case of traffic from any point east of the I. B. L. Vol. 8- Eugene Morrle' Freight Tsrlfl No, 118-1. SECTION No. 2— Continued * B K a E FROM ui ronrri disiohated on paq_.s t to ii inclusive 'Except so Noted Below) ARTICLES »n».»i.«. weight, Corloeds, se.ooo pounds, except u otherwise provided herein W OTE-- When rt* C M & 8t P. St., end Seattle or Teeome, Weoh.. except where otherwise prorlded, through retee named will not apply on pieces weighing ortr 10.000 lbs. On pieces weighing o tor 10,000 lbs. export ritoa shown to Seattle, Teeome, Wnt will bt applied plus ocean retee named In Noto 7. Whoa iuM. Itr.OB.S. M qnd Canadian Peeine Rra eta Vancouver. B. C except where ctnerwiee provided, through rsto* named wQJ not apply on ploeta weighing otor 6,0*0 lbs., or measuring 12 foot by 1 foot, by G feet, whon destined to 870007, Aust., Burs, rill Inlands or Auckland, Hew Zealand, or will hot apply on piocoi weighing over 10,000 Ibt., or miuunsi 13 foot by 1 feet, when deetlned to Yoko- hama, Kobe. Nagasaki, afojl, Jopon; Shanghai Hongkong Chins, or M».r> O 03 a o ■a a 3 HA TBS IN CENTS FEB 100 LBS. (Except u otherwise noted) When destined to or consign- od through to ©Yokohama, Kobe, Nagasaki, Hojl, Japan; Shonghel. Hongkong, Chine; Medio. P. I. When destined to or consign- ed through to Sydney. Aua- Lrelia: .-Suia, piji Islonds; Auckland. New Zosiond, Erport Botes To Through Botes To ■ Yokohama, Kobe, Nagasaki Moji, Japan; Shanghai Hongkong, Chine; Manila. P. I. Eiport Botes To Through To Botes Sydney A u_.tr alia; SSun, Fijilslende; Auckland, New Zosiond »0d tf»s f£ 1-1 1- 3 * StW •** IS s 2 00 vo HI i si OoJtJ \h s s S o s p Soj 3 41 eMaei ■11 i 3 ui 01 of 85 Bicycles, bond or crated, mln. wt. 20,000 lbs.. C. L. L C. L 136 120 166 128 4 196 195 2001 203 ' . i 40 45 Book* .. ... „ . : 120 133 183 133 200 200 BooU and Shoes, not otherwise specified, boxed L. C. L 166 276 276 183 275 276 60 ^Bowling Alley Tracks or Floors and Cushions for same and Racks for returning Balls, Auto- matic Bowling Alleys and Ten Pin Spotters, K. D., boied or crated; also Ten Pins, Balls and Score Boards .. . .. ^Provision for Bowling Alley Track will apply on sections of track bolted together^ L. C.L 76 76 126 125 | H Butter, Butterlne, Oleomargarine, Eggs, Cheese and Dressed Poultry In packages, mln wt. 24,000 lbs. When (or refrigerator space on C. L. 4® *% ao Butter and Butterlne, In tins, boxed, mln. wt. 24,000 lbs. When for ordinary stowage on C. L. ♦@ *® 62 65 Carbide of Calcium, in Tin Cans boxed or in iron drums, minimum weight 50.000 ihs C L. 60 ..„, »@70 110 146 Canned Ooods. rls. : Fish, Fruits (not Preserves), Meats (Including Potted or Deviled), Vege- tables, Baked Macaroni and Cheese, Soups Breads and Puddings, in hermetically sealed cans, boxed, mln. wt. 40,000 lbs C. L. L.C. L. 60 110 60 no 95 145 96 146 n 87 83 97 110 145 70 Canned Meats, or Meat In glass, hermetically sealed (Including Potted or Defiled), boxed, straight or mixed C. L., mln. wt. 40.000 lbs C. L. U C. L. 66 110 66 110 90 146 90 145 83 97 83 97 110 145 no! 146 71 Cards, playing, boxed, minimum weight 20,000 C. L. C.L. •100 100 •130 130 . 72 Car Springs, C. L., mln. wt. 70.000 lbs ... . 47 -.-... 60 •XStotrfKl 75 Cash Registers, Cash Register Parts and Auto- matic Carriers, boxed, mln. wt. 24,000 lbs.. . . . Note— Check Paper (for Cash Registers) may be shipped in mixed carloads with Cash Registers. C. L. L C. L. ~id5 ~ioo~ ~176 94 117 94 117 126 176 126 176 176 80 Cereal Breakfast Foods, Including Flake Maize and Shredded Wheat Biscuit, in packages _ C. L. ,. C, I.. ~84 'si" "iio ""iio 76 93 75 93 110 140 100 140 85 Crackers, Matxos and Matzos Meal, Cakes, Fruit Biscuits, Pretsels, and Toast and (g Shredded Wheat Biscuit, in boxes or bar- rels, or in baskets or tubs with right wooden covers, or In tin cans, crated ............ ' C. L. ..C.L 110 170 110 170 160 220 160 220 120 147 120 147 160 220 ISO 220 •Advance. •Reduction. ©At Yokohama, Japan, Cargo is unloaded direct into Customs sheds when shipped via Canadian Pacific* Royal Mail Steamers, or via Tokyo Kisen K&isha Steamers. ® Rates to Suva, Fiji Islands, apply via Vancouver, B. C. in connection with M. St. P. 4 S. S. M. and Can. Pac. Rys. and Canadian-Australian Royal Mail Steamship Co. only. g Rates named in this item will not apply on L. C. L shipments of Shredded Wheat Biscuit; for rates refer to item No. 80. ©Applies only in connection with the Bank Line. (&Rates will only apply to Kobe, Japan, and Manila, P« I , ^Cancel— Class rates will apply. For erplantion of abbreviations, notes, rules and aDpHe-itlon of rates, refer to pi;es 16 to 21 ln'cl. Sample Page of Joint Export Tariff, Section 2— Commodity Rates from Stations in Eastern Territory to Pacific Terminals (Western Classification). MAKING RATES AND FARES G7 Missouri River to an intermediate point, say a town in Nevada east of the Sierra Nevada Mountains, the rate is fixed according to the following rule: To the blanket rate from the eastern point of shipment to the nearest Pacific terminal add the local rate from that terminal to the Nevada town. Thus again we see that the rate for the shorter haul is greater than that for the long haul to the Coast. On east-bound transcontinental traffic the rates are not blanketed over so large an expanse of territory in the East as they are on traffic moving to the West. Local or distance tariff rates prevail from the Pacific terminals to points on the Missouri River, and all places in the territory between the Missouri and Mississippi rivers pay a fixed sum or differential above the rate to the Missouri River. All places between the Mississippi River and Chicago pay the same differential above the rate to the Mississippi. For points between Chicago and Pittsburgh the rate is again increased by a fixed sum, and the rates to points between Pittsburgh and the Atlantic seaboard are a fixed amount above the rate to Pittsburgh. It will therefore be seen that the rates from the Pacific Coast to points east of the Mis- souri River are in reality graduated by the zone sys- tem, with which the country has been familiarized by the operation of the Parcel Post. How Passenger Fares Are Fixed. The making of passenger fares is the function of the general passenger agent of the railroad, who, in 68 MAKING RATES AND FARES large companies, is under the immediate supervision of a passenger traffic manager. The general passenger agent decides upon and issues the schedules of fares. If these apply only upon the local lines of the com- pany, they are usually made without consulting com- peting or connecting lines; but if the fares apply to competitive traffic, in which rival lines are interested, such fares are submitted to the passenger traffic asso- ciation, through which they are considered by all the lines interested. An informal agreement being reached by the members of the association in interest, the gen- eral passenger agent then files the rate sheets for his company with the Interstate Commerce Commission and they become effective at the expiration of thirty days. Thus the action of each company in rate making, while nominally independent, is the approved result of consultation by all the interested lines. Special fares of many kinds, including commutation and excursion fares, are fixed independently by each company where the traffic is local to its own lines. In the case of convention rates, etc., involving competing and connecting lines, the usual course of consultation with the rival companies is followed. CHAPTER V. DOMESTIC AND FOREIGN RATES. There always has, and always will be, dissatisfaction with railway rates for both passenger and freight trans- portation. No man has as yet been able to devise a generally acceptable tariff in either line. In one respect only is satisfaction expressed, and this is because the tendency is ever downward. People do not invest their money in the construction of railroads or other transportation lines from motives of philanthropy. The one all-dominant question prece- dent to investment is "will it pay?" In this connection, it is well to bear in mind that all things, transportation lines as well as babies, are not born fully developed. Railroads have their periods of infancy, in which they require careful nursing the same as children do. For this reason it is impracticable to treat all railroads, the fully developed and the partly developed, alike. Rates on the Pioneer Roads. A railroad which runs through a wild, sparsely settled country cannot possibly thrive on the same rates which another line would find profitable in a populous terri- tory. Ample illustration of this is to be had in the history of American and Canadian railroading, dating from 1830. The initial lines did not make any money on rates that were seven and one-half times higher than those 69 70 DOMESTIC AND FOREIGN RATES. now in effect. Large as these rates were, however, they tended to promote the building up of communities, until the roads not only did a profitable business, but were enabled by reason of this increase of business to keep on making reductions in their rates. Today the trans- portation lines of the United States and Canada give a better service for less money than is to be found in any other part of the world. The charge for the trans- portation of passengers and freight is not only much less, and the accommodations much better, than abroad, but the workmen on American and Canadian railways are much better paid than the toilers on foreign roads. As Regards Passenger Rates. Not long ago William J. Bryan made a trip abroad, and on his return to this country spoke and wrote enter- tainingly on conditions abroad. There was one thing, however, he did not touch upon, and that was railroad rates and wages. In commenting upon this omission, Mr. W. C. Brown, president of the New York Central lines, says: "Mr. Bryan could have told us that on his trip from Liverpool to London, a distance of 200 miles, his fare, including 150 pounds of baggage, was $5.50, while the fare from Boston to Albany, 201 miles, is $3.80. He could have found, by inquiry, that the engineers who pulled the train from Liverpool to London were paid $2.00, while the men who run the engines, Boston to Albany, receive $7.60 for substantially the same mile- age, with firemen, conductors and brakemen all receiv- ing fair proportionate pay." DOMESTIC AND FOREIGN RATES. 71 American Vs. English Rates. Passenger rates in the United States are 24 per cent less, and the pay of trainmen 177 per cent higher, than in England. Here are the figures : Engineer 's Route. Mileage. Fare. Pay. Liverpool-London 200 $5.50 $2.00 Boston-Albany 201 3.80 7.60 London-Edinburgh 400 13.92 6.00 New York-Buffalo 440 11.25 16.40 In Canada the rates vary from an average of 1.054 cents per mile on the Canadian Northern of Quebec (this is the lowest) to 9.427 cents on the British Yukon route. The average, as given by Mr. J. L. Payne, comptroller of the Department of Railways and Canals, is 1.921 cents per mile. Average Rates on Leading Lines. There is a widespread impression, fostered by men who are quoted as authorities, that transportation rates are lower abroad than on the American continent. In no way can this assertion be substantiated except by comparing the first-class service of the United States and Canada with the third-class service abroad. Fol- lowing will be found a fair average of the passenger rates prevailing in various prominent countries: United States — The average passenger rate on the leading railroads is 2% cents a mile. This is for serv- ice on first-class trains. In New York State a flat rate of 2 cents per mile is in force, but in many well-settled portions of the country a 3-cent rate prevails. There are some sparsely settled sections in which 4, and even 72 DOMESTIC AND FOREIGN RATES. as much as 5, cents per mile is charged. On the other hand, many regular patrons of railroads are carried for 1 cent a mile through the use of commutation tickets. English and French Passenger Rates. In England the rates, translated into the equivalent of American money, are 4 cents per mile for first class ; 2% cents second class, and 2 cents for third class. There is a large sale of special rate excursion tickets, but the cheapest regular rate for the lowest class of service is only a fraction less than is charged on the American- Canadian roads for the best. French roads charge 4.7, 2% and 1.6 cents per mile for first, second and third-class accommodations. In both England and France the transportation charge for first-class passengers is nearly double that prevailing in the United States and Canada. In Prussia, Austria and Hungary. Passenger fares in Prussia are lower than in Eng- land or France, and yet considerably higher than in this country. The average is 3.06 cents first class, 2.3 cents second class, and 1.53 third class. There is a still lower rate — 0.77 cents — for what is known as fourth-class service, but it is available only on slow trains. In Hungary and Austria the zone system prevails, and there is no charge by the mile. On through traffic the charge for Zone No. 1 (fifteen miles or less) varies from 16.1 to 48.3 cents, according to class. This would be about 31/5 cents per mile for first-class tickets. In Zone 13, distance up to 140 miles, the first-class charge DOMESTIC AND FOREIGN RATES. 7§ is $6.76. Here we have an increase to nearly 5 cents a mile. The Austria- Hungary tariff is evidently compiled on the theory that people who can afford to travel con- siderable distances must pay more proportionately than the short-haul riders. The carriage of baggage consti- tutes an extra charge. Cheap Fares in India. India offers the lowest rate of passenger transpor- tation in the world — the charge for third-class service is one-half cent a mile. Few civilized people, however, would care to ride on the third-class India trains. They are patronized almost exclusively by the lower classes of natives. The trains move very slowly, and the coaches are overcrowded, without regard for either decency or comfort. In all foreign countries the bulk of the passenger traffic is of the third-class, and the average haul per pas- senger is comparatively short. In the United States and Canada the great bulk of the travel is first-class, and journeys of from 500 to 1,000 miles are made by a larger percentage of the travelers than elsewhere. Freight Rates Also Lower. To even greater degree the same conditions hold good as regards freight rates. In no other part of the world can the service given by the American-Canadian lines be duplicated for speed and cheapness. It is impossible to give comparative figures, as the rates are made solely on classes, and the articles entering into the make-up of these classes vary greatly in different sections of the country. 74 DOMESTIC AND FOREIGN RATES. The first-class freight rate from Chicago to New York, a distance of 1,000 miles, is $15 per ton. This is V/2 cents per ton per mile, which is the highest. Grain is carried the same distance for $3.20 per ton, which is about one-third of a cent per ton per mile. Freight Rates Going Down. Mr. Emory R. Johnson, in his work on "American Railway Transportation," gives the average freight rev- enue per ton per mile received by the United States railroads in 1901 as three-quarters of a cent. The ten- dency is ever downward. The average ton mile charge in 1901 was barely 40 per cent of that in effect in 1871. From 1871 to 1881 there was a decrease of one-third in rates. From 1881 to 1891 the decrease was 25 per cent. The lowest rate ever known was in 1899, when, owing to business depression, the average charge per ton per mile was 0.724 cent. Now, after years of golden pros- perity, it is about 0.750 cent. In England the average is 2 cents per ton per mile; France, 1.55 cents; Germany, 1.42 cents; Prussia, 2.30 cents. Effect of Ten Per Cent Increase. An increase in freight rates is always made the subject of protest by shippers on the ground that it will force them to ask a higher price for their goods than con- sumers can afford to pay. Few people, however, realize what little actual difference a 10 per cent advance really makes. A paper company at Housatonic, Mass., makes a cer- tain grade of paper which sells at $12 per 100 pounds. DOMESTIC AND FOREIGN RATES. 75 Freight rates, by the carload, to the three principal dis- tributing points are: New York, 15 cents; Chicago, 35 cents; St. Louis, 41 cents. Suppose these rates are ad- vanced 10 per cent. The freight charge would then be: New York, 16.50 cents; Chicago, 38% cents; St. Louis, 45.1-10 cents. In other words, a 10 per cent advance in freight would add 1% cents to the price of the $12 pack- age in New York, 3% cents in Chicago, and 4 1-10 cents in St. Louis. Hardly Noticeable to Consumer. Federal statistics show that the average annual ex- penditure for food, clothing and fuel by a family of five persons is $446. Of this $9.90 represents freight paid for transporting the various materials from the produc- ing points. An increase of 10 per cent in freight rates would add 99 cents a year, less than one-third of a cent per day, to the living expenses of this family of five persons. An increase of 10 per cent in freight rates would amount to an extra charge of one cent on any of the following shipments. 22 1-5 lbs. dressed beef, Chicago to New York. 33 1-3 lbs. ham or bacon, Chicago to New York. 33 1-3 lbs. lard, Chicago to New York. 55 lbs. canned fish, Boston to St. Louis. 6 2-3 doz. eggs, Iowa to New York. 12 1-2 qts. milk, northern New York to New York. 8 qts. cream, northern New York to New York. 33 1-3 lbs. sugar, New York to St. Louis. 33 1-3 lbs. coffee, New York to St. Louis. 76 DOMESTIC AND FOREIGN EATES. 111-3 lbs. tea, New York to St. Louis. 55 1-2 lbs. breakfast food, Battle Creek to New York. 3 gals, whiskey, Peoria to New York. 40 lbs. flour, Minneapolis to New York. 11 suits clothes, Boston to New York. 2 suits clothes, Boston to St. Louis. 2 suits ladies' clothes, Boston to Chicago or St. Louis. 13 1-3 pairs gloves, Gloversville to New York. 83 1-3 yards woolen cloth, Boston to New York. 18 yards woolen cloth, Boston to Chicago. 15 yards woolen cloth, Boston to St. Louis. 20 pairs shoes, Boston to New York. CHAPTER VI. CLASSIFICATION OF TRAFFIC. All carriers, water lines as well as railways, classify the freights they handle in transit as much as possible, although the water lines are not so particular in this respect as the rail lines. This classification is made on the bulk and value of the articles to be transported. All freight charges are supposed to be based on the actual weight of the goods carried, but there are in- stances in which strict adherence to one set scale of a certain charge per 100 pounds would be manifestly un- fair. In most cases it would affect the carriers in- juriously by not giving them reasonable pay for the service they perform; in other cases the shippers would suffer by being compelled to pay more than a fair charge for the carriage of their goods. Why Classification is Made. The expense of hauling a freight car is a known, definite quantity. So is the capacity of a car — the aver- age car has a capacity of about 40,000 pounds of grain, say 666 bushels of wheat. There are many commodi- ties, like certain forms of unfinished furniture, for in- stance, that would fill up the entire space of the car and yet not weigh much, if anything, over one-half what the wheat does. If the freight rate were fixed on an un- yielding scale at so much per 100 pounds, the shipper of the wheat would be compelled to pay for the trans- 77 78 CLASSIFICATION OF TRAFFIC. portation of his carload just double what the furniture shipper did, and yet the margin of profit to the pro- ducer on the latter would be much the greatest. How Discrimination is Avoided. If the set schedule of charges per 100 pounds were so arranged as to make a fair rate for the transporta- tion of the carload of furniture, then the shipper of the wheat could justly claim that he was being discrimi- nated against in the matter of rates. If, on the other hand, the charges should be based on the wheat solely and made to apply to all other traffic regardless of weight, bulk or value, the railway would find itself hauling many cars 1,000 miles for one-half what it charged for hauling other cars for the same distance. Here again we would have discrimination in another form. It was to do away with this possibility of dis- crimination, to equalize rates and make them fair to all shippers, that the classification system was adopted. The most radical of railway advocates do not claim that the classification system is perfect; the existence of errors and imperfections is admitted, but these are gradually being weeded out. Proper Classification a Hard Problem. The construction of a classification list that will be fair to all concerned is one of the hardest problems in railroading. In a way, this classification is made on the basis of "what the traffic will stand," and yet this is not a fair way to describe it. A transportation com- pany in making a schedule of rates would consider: CLASSIFICATION OF TRAFFIC. 79 1. The competition of other roads. 2. The total volume of business. 3. The direction — that is, of loaded trains or empty trains. 4. The value of the article. 5. The bulk and weight. 6. The risk of transportation. 7. The facilities for loading and unloading. 8. The special equipment, if any, necessary. Locality a Ruling Factor. Locality is an important factor in classification, the idea being to encourage and develop traffic in some particular product incident to a certain territory. There are now three general and distinct freight classifications, known as the "Official," the "Southern" and the "West- ern," each constructed with a view to building up busi- ness in the territory to which it applies. The "Official" covers traffic from Chicago east and northeast; the "Southern" covers the entire South, and the "Western" all the field west and northwest of Chicago. Division of Freight Into Classes. As a rule, each classification schedule is divided into six classes, known as first, second, third, fourth, fifth and sixth. A commodity rated as first class in one of the three schedules may be second or even third class in the others; it is entirely a matter of local impor- tance. Thus grain is the all-controlling factor in Western classification, while in the South cotton is the chief commodity. In both instances the rate is fixed by special commodity tariffs. 80 CLASSIFICATION OF TRAFFIC. The Matter of Extra Rates. Rates are based on classification, those on first-class freight being the highest and those on sixth class the lowest. In addition to the rates on classification there is often a penalty in the way of extra charge. Manure and fertilizer spreaders, when set up ready for use, are rated as l 1 /^. This means that the charge for trans- portation is one and one-half times the first-class rate. This is because a set-up spreader is very bulky in pro- portion to its weight, and if charged for at the first- class rate only, would not give the company a fair return for transportation. The same spreaders, "knocked down," are carried at third-class rates because more weight can be loaded into the same car space. The difference between first and third-class rates is about 33 1/3 per cent. Illustration of the System. Under the arrangement 100 spreaders, "knocked down," could be shipped a certain distance for say $10. The freight charges on 100 spreaders set up and car- ried the same distance would be fully $22.50. Why? Simply because the set-up spreaders, while weighing no more than those "knocked down," would occupy a great deal more car space. Under this latter condition the transportation company would get no pay for the use of a lot of car space which, under the present classi- fication system, is utilized to advantage. Rates on Carload Lots. All classification rates are, of course, based on car- load lots. In the matter of determining what a carload CLASSIFICATION OF TRAFFIC. 81 is, the matter of weight rules. For certain kinds of goods there is a minimum of 12,000 pounds. For others the minimum runs up to 40,000. The general average is 24,000. Minimum weight means that in order to secure carload rates charges must be paid on the minimum named, regardless of any shortage in weight. It is thus made impossible for a shipper to get car- load rates on a basis of 24,000 pounds to a car, load only 20,000 pounds and pay charges on the actual weight of the shipment. If he obtains a carload rate he must pay on the minimum weight capacity of that car despite the fact that he does not use it. Rates Fixed by Classification. The recent prevailing rates in the Official Classifi- cation of freights between New York and Chicago, per 100 pounds, were as follows: First class, 75 cents. Second class, 65 cents. Third class, 50 cents. Fourth class, 35 cents. Fifth class, 30 cents. Sixth class, 25 cents. Exceptions are made in classification rates where the bulk of traffic warrants this course. Wheat, for in- stance, is in class 4. Instead of charging the full class rate of 35 cents per 100 pounds, however, the lines make a special rate of 16 cents, or less than one-half. Corn and other cereals are handled in the same way. When I.B.L. Vol. 8—6 82 CLASSIFICATION OF TRAFFIC. the grain is intended for export, the rate is still further reduced to 13 cents. How Classification is Fixed. In making up a classification, as already explained, the transportation men keep in mind three vital points, viz. : Weight, bulk and value. In this connection must also be considered ease in handling, risk of loss or dam- age in transit, etc. It would be impossible to give a classification list in detail owing to the volume of space required, but a fair idea may be had from the following items, the rate of transportation per 100 pounds by the carload being for the haul between Chicago and New York. Article. Class. Carload. Bate. Cotton 1 36,000 75c Corn huskers 2 24,000 65c Harrows K. D 3 24,000 50c Harvester wire 4 24,000 35c Metal bedsteads 5 30,000 30c Subdivisions in Classification. All the important items of freight traffic are sub- divided into numerous classes, each taking a different classification and consequently a different rate, and fre- quently varying greatly as to the minimum weight per carload. The item of glass furnishes a good illustration of this subdivision. Article. Class. Weight. Leaded— boxed 3 to 1 24,000 lbs. Plate— boxed 1 24,000 lbs. Rough— N. O. S.* 4 36,000 lbs. Window— boxed 1 36,000 lbs. * Not otherwise specified. CLASSIFICATION OF TRAFFIC. 83 This same subdivision occurs, to greater or lesser ex- tent, in nearly every item in which there is any consider- able amount of traffic. In the handling of furniture there are 290 separate and distinct subdivisions. Many of the articles enumerated are rated in the same class, but they are treated separately. Decision of Minimum Capacity. All calculations as to the minimum weight capacity are based upon the standard car of 36-foot length. Three per cent of this capacity is added for each addi- tional foot of length, and 3 per cent subtracted for each foot of shortage. Fractions of six inches or less are not taken into consideration. All calculations are made on the inside measurement of the cars. The minimum load must not be under 91 per cent of the full capacity. The exact weight of carload capacity depends upon the nature of the freight. All modern 36-foot cars are constructed to carry a maximum load of 30,000 pounds. The minimum load of such a car on a 91- per cent basis would be 27,300 pounds. What Classification Does. There are many goods, however, a full carload of which would not weigh 27,000 pounds, or anything like it. A carload of some materials will not run over 8,000 pounds, and if there was no grading of freights a railway would be hauling cars with the earning ca- pacity of each differing widely. One carload of 30,000 pounds, at 35 cents per 100 pounds, would bring the road $105, while another, travelling the same distance, 84 CLASSIFICATION OF TRAFFIC. but carrying only 8,000 pounds, would earn consider- ably less than one-third of $105. It was to abolish this inequality that the classification system was adopted. Such trouble or discontent as may exist is not due to the classification system, but to misuse of it. Many shippers claim, and justly, that they are compelled to pay exorbitant charges by reason of the wrong classi- fication of their products, but this is a matter which is gradually being corrected. CHAPTER VII. UNIFORM BILL OF LADING. For many years, in fact from the inception of rail- roading in 1830, right up to 1904, there was much dispute between rail carriers and shippers as to the terms upon which freight would be received and trans- ported. Each road had its own bill of lading, and very few of them were alike. These bills of lading, as a rule, were ambiguously worded with the purpose of minimizing the liability of the carriers and throwing responsibility for safe car- riage, as much as possible, on the shipper. This am- biguity gave rise for grave doubt as to the actual mean- ing of some of the important clauses, and expensive actions at law were common. First of the Uniform Bill. By 1904 discontent had become so widespread and assumed such organized form among shippers, that the railroads were forced to yield to the demand for one uniform, clearly worded bill of lading, which would be fair to shipper and carrier alike, and as to the meaning of which there could be no reasonable doubt. Through the instrumentality of the Interstate Com- merce Commission, and by agreement between carriers, shippers and bankers, — these latter being interested be- cause they cash drafts with bills of lading attached — 85 86 UNIFORM BILL OF LADING. adoption of a satisfactory uniform bill was first made in Official classification territory. Since then it has been generally adopted. Great Advantage to Shipper. The advantage in this change to the shipper is greater than to anyone else. Under the old arrangement, the conditions governing the handling of shipments were different, in the Central Freight Association territory, from those current in the Eastern Association. These again differed from those of the New England Associa- tion, and they were all different from the association of rate lines. A shipment going any distance traversed more than the confines of any one of these associations, and it became a general custom to use a receipt stamped or printed with the information that the initial carrier received the shipment subject to the conditions of its own bill of lading only. Trouble With Old Form. These conditions in turn provided that the initial carrrier was responsible for loss only while the ship- ment was in its possession, and that it was authorized by the shipper to turn over the shipment to connecting lines, subject to conditions of that line's bill of lading. When anything happened to the shipment through being lost, destroyed, or damaged in any way, it made it necessary to refer to the contract under which it was being carried. There was great trouble in store for the shipper; first to find out how and where the loss or damage occurred ; in whose hands the responsibility lay ; UNIFORM BILL OF LADING. * 87 and just what the conditions were that governed the responsibility. Removes Opportunities for Delay. Opportunities for delay on the part of the carrier in adjusting were multiplied by these complications, and the outcome of suits, brought to enforce payment of claim, were made doubtful in the extreme. Such was the condition that stirred the various associations of commerce and manufacturers' associations to keep the agitation up until their action was successful in getting the uniform bill absolutely required in the Offi- cial classification territory, where the shippers are strongest, financially and numerically. In order to insure uniformity, the Interstate Com- merce Commission has authorized railroads to make an increase of 10 per cent in carriage charges on shipments presented on forms other than the uniform. Forms in General Use. The straight forms which all railroads now issue to customers are the straight uniform bill of lading, exactly as used in the Official classification territory. The dispensing of rate tickets, freight receipts, etc., was a long step in advance itself. The use of a uniform bill of lading gives the shipper a bill of lading for abso- lutely every shipment he makes, and a specification or complete contract setting forth all the conditions that surround the responsibility for that shipment from the time it starts until it arrives at its destination. It was difficult at first to get the roads to consent 88 UNIFORM BILL OF LADING. to the use of this form, but now that its advantages have been shown it is doubtful whether any of them would willingly consent to its abandonment. Features of Uniform Bill. There is now no room for dispute as to whether a certain bill of lading was issued for a particular ship- ment. Under the new order a bill of lading is always issued for every shipment, the idea being that the origi- nal shall be retained by the shipper, and a copy, which is a complete transcript of the contract under which the shipment is made, sent to the consignee as his memo- randum and record. Every shipper has experienced difficulty in the settlement of claims, because of his inability to present a bill of lading to the claim agent. In the attempt to secure one, much time is wasted, and the shipper often learns that all he gets is a copy of the shipping receipt, so that he must begin over again for a second time to secure a bill of lading, all of which is annoying. This is now obviated by the uniform bill of lading. Advantages in Banking Deals. The new bills are of the utmost importance to bankers who loan millions of dollars annually on shipment of fruit of all kinds, grain, cotton, etc., while on the way to market. In many cases the shipper draws against the shipment, and the new form gives the banker assur- ance that he has good security for his money with- out employing an expert to scan and interpret the dif- ferent forms of bills of lading, as there is only one form, and the banker has a copy of that. UNIFORM BILL OF LADING. 89 thttom n of UOat— Stmotri (om of ftmltot M of U«et WMl M S|M* Conora CaoaMa to 4Mb aa»IT<>IJ Charges Advanced: -Shipper. Ogesi. Per. Per. CTHi BO ox U*bj I. to bo Mmt b» (bo **a* «M VH of to* obiIot Intat ohdo.) Uniform Bill of Lading Now in General Use by All the Railroads. 90 UNIFORM BILL OF LADING. Conditions of Uniform Bill. The terms of the contract thus made between ship- per and carrier are printed in detail on the back of each bill, so that everybody, shipper, consignee, or banker, who has a copy of the bill of lading for any particular lot of freight, knows the exact condition under which shipment was made. These conditions are as follows: Sec. 1. The carrier or party in possession of any of the property herein, described shall be liable for any loss thereof or damage thereto, except as hereinafter provided. No carrier or party in possession of any of the property herein described shall be liable for any loss thereof or damage thereto or delay caused by the act of God, the public enemy, quarantine, the authority of law, or the act or default of the shipper or owner, or for differences in the weights of grain, seed, or other commodities caused by natural shrinkage or discrep- ancies in elevator weights. For loss, damage, or delay caused by fire occur- ring after forty-eight hours (exclusive of legal holidays) after notice of the arrival of the property at destination or at port of export (if intended for export) has been duly sent or given, the carrier's liability shall be that of warehouseman only. Except in case of negligence of the carrier or party in possession (and the burden to prove freedom from such negligence shall be on the carrier or party in possession), the carrier or party in possession shall not be liable for loss, damage, or delay occurring while the property is stopped and held in transit upon request of the shipper, owner, or party entitled to make such request ; or resulting from a defect or vice in the property or from riots or strikes. When in accordance with general custom, on account of the nature of the property, or when at the request of the shipper the property is transported in open cars, the carrier or party in possession (except in case of loss or damage by fire, in which case the liabil- ity shall be the same as though the property had been carried in closed ears) shall be liable only for negligence, and the burden to prove freedom from such negligence shall be on the carrier or party in possession. Limits to Carrier's Liability. Sec. 2. In issuing this bill of lading this company agrees to transport only over its own line, and except as otherwise provided by law acts only as agent with respect to the portion of the route beyond its own line. No carrier shall be liable for loss, damage or injury not occurring on its own road or its portion of the through route, nor after said property has been delivered to the next carrier, except as such liability is or may be imposed by law, but nothing contained in this bill of lading shall be deemed to exempt the initial carrier from any such liability so imposed. See. 3. No carrier is bound to transport said property by any par- ticular train or vessel, or in time for any particular market or otherwise than with reasonable dispatch, unless by specific agreement indorsed hereon. Every carrier shall have the right in case of physical necessity to forward UNIFORM BILL OF LADING. 91 said property by any railroad or route between the point of shipment and the point of destination; but if such diversion shall be from a rail to a water route the liability of the carrier shall be the same as though the entire carriage were by rail. The amount of any loss or damage for which any carrier is liable shall be computed on the basis of the value of the property (being the bona-fide invoice price, if any, to the consignee; including the freight charges, if prepaid) at the place and time of shipment under this bill of lading, unless a lower value has been represented in writing by the shipper or has been agreed upon or is determined by the classification or tariffs upon which the rate is based, in any of which events such lower value shall be the maximum amount to govern such computation, whether or not such loss or damage occurs from negligence. Claims for loss, damage, or delay must be made in writing to the carrier at the point of delivery or at the point of origin within four months after delivery of the property, or in case of failure to make delivery, then within four months after a reasonable time for delivery has elapsed. Unless claims are so made the carrier shall not be liable. Any carrier or party liable on account of loss of or damage to any of said property shall have the full benefit of any insurance that may have been effected upon or on account of said property, so far as this shall not avoid the policies or contracts of insurance. Necessary Repairs and Shipper's Risk. Sec. 4. All property shall be subject to necessary cooperage and baling at owner's cost. Each carrier over whose route cotton is to be transported hereunder shall have the privilege, at its own cost and risk, of compressing the same for greater convenience in handling or forwarding, and shall not be held responsible for deviation or unavoidable delays in procuring such compression. Grain in bulk consigned to a point where there is a railroad, public, or licensed elevator, may (unless otherwise expressly noted herein, and then if it is not promptly unloaded) be there delivered and placed with other grain of the same kind and grade without respect to ownership, and if so delivered shall be subject to a lien for elevator charges in addition to all other charges hereunder. Charges for Storage and Detention. Sec. 5. Property not removed by the party entitled to receive it within forty-eight hours (exclusive of legal holidays) after notice of its arrival has been duly sent or given, may be kept in car, depot, or place of delivery of the carrier, or warehouse, subject to a reasonable charge for storage and to carrier's responsibility as warehouseman only, or may be, at the option of the carrier, removed to and stored in a public or licensed warehouse at the cost of the owner and there held at the owner's risk and without liabil- ity on the part of the carrier, and subject to a lien for all freight and other lawful charges, including a reasonable charge for storage. The carrier may make a reasonable charge for the detention of any vessel or car, or for the use of tracks after the car has been held forty-eight hours (exclusive of legal holidays), for loading or unloading, and may add such charge to all other charges hereunder and hold such property subject to a lien therefor. Nothing in this section shall be construed as lessening the time allowed by law or as setting aside any local rule affecting car service or storage. 92 UNIFORM BILL OF LADING. Property destined to or taken from a station, wharf, or landing at which there is no regularly appointed agent shall be entirely at risk of owner after unloaded from cars or vessels or until loaded into cars or vessels, and when received from or delivered on private or other sidings, wharves or landings shall be at owner's risk until the cars are attached to and after they are detached from trains. Articles of Extraordinary Value. Sec. 6. No carrier will carry or be liable in any way for any documents, specie, or for any articles of extraordinary value not specifically rated in the published classification or tariffs, unless a special agreement to do so and a stipulated value of the articles are indorsed hereon. Sec. 7. Every party, whether principal or agent, shipping explosive or dangerous goods, without previous full written disclosure to the carrier of their nature, shall be liable for all loss or damage caused thereby, and such goods may be warehoused at owner's risk and expense or destroyed without compensation. Sec. 8. The owner or consignee shall pay the freight and all other lawful charges accruing on said property, and, if required, shall pay the same before delivery. If upon inspection it is ascertained that the articles shipped are not those described in this bill of lading, the freight charges must be paid upon the articles actually shipped. Diversion to Water Route. Sec. 9. Except in case of diversion from rail to water route, which is provided for in section 3 hereof, if all or any part of said property is carried by water over any part of said route, such water carriage shall be performed, subject to the liabilities, limitations and exemptions provided by statute and to the conditions contained in this bill of lading not incon- sistent with such statutes or this section, and subject also to the condition that no carrier or party in possession shall be liable for any loss or damage resulting from the perils of the lakes, sea, or other waters; or from explo- sion, bursting of boilers, breakage of shafts, or any latent defect in hull, machinery, or appurtenances; or from collision, stranding, or other accidents of navigation, or from prolongation of the voyage. And any vessel carrying any or all of the property herein described shall have the liberty to call at intermediate ports, to tow and be towed, and assist vessels in distress, and to deviate for the purpose of saving life or property. The term "water carriage" in this section shall not be construed as including lighterage across rivers or in lake or other harbors, and the liability for such lighterage shall be governed by the other sections of this instrument. Sec. 10. Any alteration, addition or erasure in this bill of lading which shall be made without an indorsement thereof hereon, signed by the agent of the carrier issuing this bill of lading, shall be without effect, and this bill of lading shall be enforceable according to its original tenor. Enables Shippers to Get Money. Suppose a Chicago shipper has started a lot of grain for New York and does not want to wait for his money UNIFORM BILL OF LADING. 93 until the grain reaches New York, is sold, and the draft in payment is mailed back to Chicago. In the ordinary course of business this would mean a lapse of nearly two weeks or more. The uniform bill of lading makes possible a much more expeditious process. It is even possible for a shipper to get his money for a shipment on the day it is loaded. Armed with a bill of lading showing the grain is actually in the custody of the railroad, the shipper makes a draft on the consignee in New York for the marked value of the shipment. He attaches this draft to the bill of lading and presents it at his bank, which honors his check against the collateral thus deposited. Bankers Disliked Old Method. While it was possible to do business of this kind under the old system, bankers, as a rule, did not favor is because of the lack of uniformity in the various bills of lading, and the wide difference in the conditions under which they were issued. Where financial accom- modation was extended in this manner, it was more on account of the financial standing and responsibility of the people concerned, than on the actual security of the bill of lading. Where merchandise or grain was shipped over a route composed of two or three different roads with conflicting bill of lading conditions there was too much doubt and uncertainty as to responsibility in case of loss to make the cashing of drafts on this kind of collateral inviting. 94 UNIFORM BILL OF LADING. How Bankers are Secured. When a transaction of this nature is made under the new system the bill of lading is of what is known as the "order" form. Allow that a shipment of grain has been forwarded to the firm of John Peters & Co., New York, a draft against which is to be cashed by the First National Bank of Chicago. The order bill of lading will show that the grain is consigned to the order of the First National Bank, and that the railroad is to notify John Peters & Co. of its arrival in New York. On receipt of this notice Peters & Co. make arrangements with the New York correspondent of the First National Bank to take up the draft. When this is done the bill of lading, properly endorsed, is turned over to Peters & Co., who present it to the railroad company and re- ceive the grain. This gives the bank protection because, until Peters & Co. have paid the draft, the bank holds possession of the bill of lading, without the delivery of which the rail- road will not surrender the grain. Milled-in-Transit Bills. Another form of the uniform bill of lading — the gen- eral conditions are the same in all — is the milled-in- transit bill. To illustrate its operation let us take the following purely suppositious instance : The through rate on grain from Hastings, Neb., to Chicago is 35 cents per 100 pounds. The local rate from Hastings to Omaha, plus the rate from Omaha to Chicago, is considerably more than the through rate. M owns a mill at Omaha. He has bought a lot of wheat UNIFORM BILL OF LADING. 95 at Hastings, which he is under contract to deliver in Chicago as flour. Instead of paying the local rate on the wheat from Hastings to Omaha, and making a new shipment of the flour to Chicago, he ships the wheat from Hastings through to Chicago on a "milled-in- transit" bill of lading. Benefit to the Miller. Under the special terms of this form M, while obtain- ing the benefit of the Hastings-Chicago rate, has the privilege of stopping his wheat at Omaha, grinding it, and then reshipping it to Chicago. If it were not for this privilege of milling in transit M would have to pay- some miller in Chicago for grinding the wheat while his own mill stood idle. The effect of this milled-in-transit privilege has been to build up milling interests along the lines of railway away from the large centers like Minneapolis. If it were not for this milled-in-transit privilege it would be impossible for any of the smaller mills to do anything but a purely local business. Necessity for Bill of Lading. In ordinary mercantile business, the bill of lading rep- resents the culmination of a sale — the receipt for goods shipped, and is naturally an important document. It would be just as reasonable for a merchant to give out money without taking a receipt as to make shipment of goods without a bill of lading. A simple receipt would not, however, be entirely satisfactory, as it would not show the conditions under which the shipment was made, 96 UNIFORM BILL OF LADING. the liability assumed by the carrier beyond that im- posed by common, State or Federal law, nor the charges which might be assessed by the carrier for the service. A bill of lading contains specific conditions showing to a scientific nicety the responsibility of the carrier, terms under which the shipment is accepted, and the rate that shall be charged, and gives in full all terms, requirements or stipulations. In brief, the bill of lading is a contract between the shipper and the carrier. CHAPTER VIII. PRIVATE CARS AND FAST FREIGHTS. Many large shippers, especially those in the slaugh- tering and packing business, find it a convenience to own their own cars. In the prompt handling of fresh meats and similar products this private car system has become a virtual necessity. It does away with doubt as to obtaining a supply of cars when needed, and ren- ders the shipper independent of the railroad in this respect. It also minimizes the opportunity for a rail- road to handicap certain shippers by withholding cars on the plea of shortage, while at the same time favor- ing others by furnishing them with all the cars needed. Before the introduction of the private car system, there were many abuses of this nature, and it was possible to destroy, or greatly injure, the business of any shipper toward whom a railroad might conceive a dislike. Rates on Private Car Shipments. Owners of private cars are supposed to pay the same rates as shippers who use the ordinary railway cars, but, as recompense for the use of their own cars, these owners are allowed a mileage rebate. In the East, the railways allow three-quarters of a cent per mile for the use of a private refrigerator car. In the West the allowance is one cent a mile. On a trip from Chicago to New York the owner of a private car would thus have an advantage of $7.50 in freight charges over a i.B.I,. Vol. 8—7 97 98 PRIVATE CARS AND FAST FREIGHTS. shipper using the ordinary railway car. Against this saving of $7.50 the car owner must figure the interest on his investment, etc. The system has its favorable and unfavorable fea- tures, both as regards carriers and shippers. The strongest protest made against it is that it tends to give a larger shipper with ample capital an undue ad- vantage over his smaller competitor, who cannot afford to own his own cars. While it is true that the owners of private cars get their hauling done at a lower rate than the non-owner can obtain, it is doubtful whether this saving much more than offsets the cost of the in- vestment. The great real economy would seem to be in the increased efficiency of service. Of Benefit to Railroads. Under the old system, when railroads had to furnish all the cars required in the service, investment of an enormously large amount of money in car equipment was necessary. This has been materially lessened by the use of private cars. Not that the roads are spending less for cars than formerly — they are spending far more. But, they are not buying anything like the number of cars they would have to if so many of the large shippers did not own private cars. How large an item this is may be readily estimated from the fact that in Chicago alone there are eight large packing establishments which own their own cars, and send them out in trainloads daily. The same condi- tions prevail in other large cities like New York, Bos- ton, Philadelphia, Cincinnati, Cleveland, Minneapolis, Kansas City, St. Louis, Denver and San Francisco. PRIVATE CARS AND FAST FREIGHTS. 99 Railway statisticians place the total number of private cars in the United States at close to 200,000, which is about 7 per cent of the total engaged in American railway traffic. Evil of Car Detention. The larger the number of private cars in use on a given line of railway the less will that road suffer from car detention by other lines. This matter of car deten- tion is one of the most serious problems railway men have had to contend with. Under the old system, the Erie would send out a car from New York, bound for some point in Ohio. Here it might be impressed into service by an Ohio road and sent to some Southern point, where in turn a Southern road would use it. By persistent "tracing" it might be in time located and recovered. There is such a thing as cars dropping out of sight entirely and never being heard of again. There are other instances in which cars started from New York for Buffalo have been located at obscure stations in Mon- tana. New Per Diem Detention Rate. Railroads which thus impress the cars of another road into use are supposed to pay one-sixth of a cent per mile for their use, but in many instances they don't do it. Missing cars have been found in service as stor- age houses, in which capacity they had served for months. The mileage traveled was comparatively small, so the amount to be collected at one-sixth of a 100 PRIVATE CARS AND FAST FREIGHTS. cent per mile was insignificant and did not begin to pay the owning railroad for the loss of car service. This has led railroads to substitute a per diem, in- stead of a mileage charge, for detained cars. When a road delivers a car into the keeping of another road a fixed charge, generally of twenty cents a day, is made for every day the car is detained. There can be no evasion of this charge by the receiving road. It is re- sponsible for it regardless of where the car may wander, and as a consequence it is to the interest of such roads to return all cars promptly. This per diem charge has also put an effectual stop on the practice of some roads in allowing their patrons to retain the cars of other roads as storage places with- out charge. The roads must pay detention charges, and naturally they are going to get the cars back to their owners as soon as possible. Private Cars Not Detained. Private cars are not subject to detention in this way. The sign of ownership painted on the sides is too promi- nent. Ordinary railway cars are also thus labeled, but to see a car bearing the ownership sign of the Pennsyl- vania road standing at a way station on a far Western line would occasion no comment, as interchange of cars is an unavoidable incident of railroading. The sight of a car bearing the business sign of Ar- mour & Co., in use at some out-of-the-way place, where the firm has no connection, would soon set every tongue in the neighborhood to wagging. Besides this, there would be no chance for diversion of this sort except by PRIVATE CARS AND FAST FREIGHTS. 101 outright theft, as the comity of interchange of car serv- ice between railroads does not extend to private cars. One Source of Abuse. There is one grave danger in the private ownership of cars. It is possible to so manipulate the mileage records as to give the owner of these cars a much lower freight rate, aside from his lawful car mileage, than can be obtained by competitors who use the ordinary cars. If numerous complaints are well founded, discrimina- tion of this kind is not uncommon. The man who owns a private car is entitled to a mile- age rebate for its use. He saves the railroad the use of one of its own cars, thus releasing it for other service. It is therefore no more than right that he should be paid for the use of his own car. But the rate of pay- ment must be equitable; so arranged that, when due allowance is made for the investment, the actual charge for freight haulage shall be the same to car owner and non-car owner. Whether this is accomplished by the present Eastern allowance of three-quarters of a cent per mile is problematical. The One Great Advantage. Aside from the opportunity for favoritism in the mat- ter of freight rates, private ownership of cars has one all-important advantage — it enables a shipper to move his product with certainty. The big packer, with 100 carloads of perishable beef to move, is no longer at the mercy of the freight agent of the P. X. & Z. Railroad, who may feel inclined to say: "Sorry, Mr. Packer, but it is an absolute impossibility to give you 100 cars. I 102 PRIVATE CARS AND FAST FREIGHTS. might be able to squeeze out 10, but even this is doubt- ful." Mr. Packer now ices and loads his own cars, delivers them to the P. X. & Z. road, and the latter has nothing to do except furnish the motive power. There is a time schedule for such trains and they move with the regularity, if not the speed, of the best express trains. There is no stopping at way stations to load or unload freight. No stops of any kind, except for fuel and water and to change engines. Under these conditions it is not uncommon for a train to make the run from Chicago to New York in forty hours, or less. Origin of the Private Car. Private car ownership grew out of the fast freight service. In the early days of railroading, private cars and special trains were unknown. Even when the trans- portation business had grown to such proportions that a shipper occasionally loaded one or more cars with his own product such a thing as making special runs with these cars were unheard of. They were hauled on the ordinary trains, subject to all the delays of way traffic. It was then the practice to load cars promiscuously, without regard to the saving of time en route. One car might contain shipments for a dozen or more sta- tions, and a stop would have to be made at each for unloading, as well as loading, purposes. All freight trains were moved on practically the same schedule, and it was not a very fast one. Finally some genius conceived the idea of sorting the freight, loading it into cars according to destination and, when this destination was reached, dropping the car PRIVATE CARS AND FAST FREIGHTS. 103 there instead of holding the entire train while the freight for that station was sorted out. First of Fast Freight Lines. This was the beginning of the fast freight service. Companies like the Empire, the Merchants' Despatch, and numerous others, were organized. These companies bought their own cars, arranged with the railroads for fast trains, and were thus able to offer shippers of first- class freight advantages in the way of time-saving, etc., which could not be obtained in the ordinary freight serv- ice. The fast freight lines made a good profit by the increased charge which their fast trains warranted, and this profit was increased by the rebate mileage which the railroads allowed for the use of the cars. This fast freight service was popular with the ship- pers from the start. The saving of time was an impor- tant item, and in many instances more than counter- balanced the increased charge for transportation. Where several New York shippers had a lot of mer- chandise for Cleveland it would be loaded into one car and sent through without being held up at the inter- mediate way stations. Victory of Private Car Men. The plan worked so well that the big shippers, men who send out produce by the trainload, became interested, and those who had the business to warrant it and the capital to operate with, began to use their own cars. There was serious objection to this at first. In many instances, the fast freight lines were nothing less than auxiliaries to the railroads, their financial interests being 104 PRIVATE CARS AND FAST FREIGHTS. largely identical. For a time, the railroads, because of their interest in the fast freight lines, were not willing to give the private car owners equal privileges as to mileage rebates and train service, and a merry war re- sulted. It ended in the complete surrender of the rail- roads, the courts holding that, as common carriers, they could not be permitted to discriminate between patrons who tendered exactly the same class of business. Fast Freight Lines Increasing. Despite the large number of cars now owned by ship- pers the fast freight lines are more numerous and offer a more extended service than ever. While the number of privately owned cars is large, the number of shipper- owners is comparatively small. On the other hand, the number of people who are unable to own their own cars, but who desire a similar service, is increasing every year, and it is to these that the fast freight lines cater. There is business enough for all. CHAPTER IX. SOME TRANSPORTATION PROBLEMS. Next to agriculture, the transportation business of this country is first in importance. It has been esti- mated that over one-fifth of the wealth of the United States is invested in railroads. In 1915 they em- ployed directly over 1,848,000 men, and for services alone paid out $2,915,000,000 annually, while the total annual disbursements amounted to nearly twice as much; and yet ninety years ago the locomotive was unknown, and nowhere in the world did a railroad exist. In 1832 there were only 299 miles of railroad in the United States, while today there are over 377,000 miles of track. It is said a man will carry 66 pounds twelve miles per day over bad roads; a horse will carry 440 pounds ; a locomotive will haul 350,000 pounds a greater distance in an hour at a cost of, say, half one cent per ton per mile. One may readily see the strides made in transportation, and almost measure the progress of civilization by it. Rates Should be Stable. The United States, with only one-twelfth the world's population, has fully one-half of all the railway mileage of the globe. One can ship freight and personally travel farther for less money, receive better service, and enjoy more comfort than the people of any other section of 105 106 SOME TRANSPORTATION PROBLEMS. the earth. This is one of the dominant causes of our success commercially. The average rate of freight charged in the United States in 1870 — about fifty years ago — was nearly three times as much as is charged today, or conversely, the average rate per ton per mile now in existence is only a trifle over one-third of what was paid in 1870. American railroad rates generally are more than one- third lower than those in Great Britain. Wise rail- wav men hold that railroad rates should be unfluctuat- ing, and without preference as between individuals and communities. Pooling and Anti-Pooling. From the beginning of railroads until about 1870 there were very few laws, either State or National, for their regulation. About 1872 an agitation began which has generally been referred to as "The Granger Move- ment," and all kinds of railroad legislation was advo- cated. There seems to have been a delirium for regula- tion of passenger and freight rates by statute epidemic at that time. The first National law, however, that was considered, was known as the Reagan bill, and from this sprang the present law known as the Inter- state Commerce Act, which was designed to prevent unjust discriminations in rates; but in the discussion of that measure the feeling against trusts and combina- tions of all kinds was introduced, and pooling was prohibited, which has resulted in a continuation of preferential rates — mostly of a secret nature — all of which are a menace to justice and fair play, and ought to be obliterated. At the time of the discussion of the SOME TRANSPORTATION PROBLEMS. 107 merits of the Reagan bill, Judge Reagan, the originator and introducer of the bill, was against pooling, but after having been chairman of the Texas Railroad Commis- sioners for over ten years, he has changed his mind and now favors such legalized pooling. Effects of Keen Competition. The competition between large carriers is so intensely energetic that it seems impossible to secure a mainte- nance of rates without an apportionment of the busi- ness. The longer the line and the poorer its service between any two competitive points, the more induce- ments it is tempted or obliged to offer to get a share of the traffic; and the more business it is allowed by the stronger or shorter lines to take, the greater the share it is educated in believing itself entitled to; so that it becomes an absolute necessity for the strong lines to recognize the competition of the weaker ones. Large shippers thoroughly appreciate this and are quick to take advantage of it. It is quite remarkable, under existing conditions, that rates have been as well maintained as they have been. The old saying that "competition is the life of trade" does not seem to hold good in the present age. Carried to its logical conclu- sion, unrestricted competition is the death of trade — so far as railroads are concerned. Benefits of Combination System. There have already been tremendous strides made in combining railways. The Atchison, Topeka & Santa Fe Railway system is composed of over one hundred smaller corporations. Rates are now lower, service is 108 SOME TRANSPORTATION PROBLEMS. better, and wages are highei than before the consolida- tions took place. The people expect more from large corporations than from small ones, and they are usually managed more intelligently and are more apt to re- spond to public opinion. The very fact that they repre- sent so much capital makes them anxious to maintain the good will of the community. Three Possible Relief Plans. The best-disciplined and experienced commercial minds of the world are now engaged in trying to work out in all industrial pursuits a plan whereby, through combination, unrestricted competition will cease, labor and capital be protected, and the world generally be more intelligently and better provided for. One of three things in the railroad business is likely to happen : 1. The legalization of pooling, whereby the rail- roads may make enforceable contracts between them- selves for a division of the business based on reasonable rates. 2. The unification of ownership, which, in the ab- sence of the first proposition, is making rapid strides. 3. The taking over of the railroads by the govern- ment, to own and operate them, as is done in Germany and some other European countries. Danger of Unbridled Discrimination. There are many men like Paul Morton, formerly second vice president of the Santa Fe system, who advocate legalized pooling, because they believe it will go a long way toward insuring a maintenance of tariffs, and thereby prevent favoritism and inside rates SOME TRANSPORTATION PROBLEMS. 109 to large shippers and great cities. These men assert that the very foundation of the State itself is threatened by any long-continued discrimination against the small shipper and the small town. We want prosperous vil- lages and towns all over the United States, and in time we will insist that the freight rates of the country shall be as unfluctuating between individuals and communi- ties as the price of postage stamps. To Preserve Reasonable Rates. These men can see no good reason why Congress should not legalize pooling, so long as rates are reason- able. Rates can become unreasonable, and there is as much to fear from their being unreasonably low as from being unreasonably high. They can be so low as to be unremunerative, thereby in time impairing the property and destroying the service. They can be so high as to check the movement of business. The selfisli interest of the carrier generally prevents this. There should be proper supervision to see that they are reason- able, which means neither too high nor too low for increasing and promoting commerce. Unification of Railway Interests. The absence of an arrangement similar to pooling is causing the unification of ownership of railroads. This is now frequently referred to as "the community of interests." Of this, Mr. Morton said: "Personally, I prefer it to pooling, and do not view the ownership of all the American railroads by a single community of interest with the slightest alarm. The benefits the public would receive from such a condition would be 110 SOME TRANSPORTATION PROBLEMS. much greater than any harm that could come from it. Unrestricted competition benefits a few, is disastrous to the manv, and costs too much. There is a vast amount of money wasted every day by American rail- roads which ought to be saved ; and if it could be saved, the railroads of the country would certainly give the shipping and traveling public a fair proportion of it, either in lower rates or an improved service." Improved Service, Lower Rates. Ever since railroads have been in operation rates have been getting lower and the service better. Eighty years ago the large proportion of the travel was by stage, at 25 cents per mile; no baggage was allowed except that carried by hand; passengers rode three in a seat with great discomfort, and made forty miles a day if roads were good. Now one may travel with the greatest of luxury, in Pullman cars and dining-cars, for about 2% cents per mile, and make forty miles in an hour. In other words, the transportation of the country has advanced in speed from forty miles per day to forty miles per hour, and the cost is only one-tenth of what it used to be. And the comforts coined bv American inventors and transportation men are easily more than sixteen to one in the circulation of commodities and persons with certainty, celerity and safety throughout this vast republic. Objections to Government Ownership. If all the railroads should be owned by one syndicate — it is probable this syndicate would be composed of the people generally — there will arrive a time when a SOME TRANSPORTATION PROBLEMS. Ill vehement demand will be made for government owner- ship and operation of the railroads of the United States. It will be phenomenally remarkable if such demand does not come. But it is doubtful if such popular im- portunity will result in the transfer of the railroads from individuals to the government, because it is mani- festly demonstrable that private parties can more effi- ciently and cheaply operate the roads than can the government. There are many things against the ownership and control of railroads by the government. The building up of a great political power would be a sufficient reason for opposing such an ownership and manage- ment, but the simple fact that the government seems unable to do anything efficiently and economically in the way of building or operating properties is a far better reason for confining the government to legitimate functions and keeping it out of all business, except its logical one of protecting the life, liberty, and property of its citizens. Problems that Cause Worry. The problems that a railroad traffic officer has daily to solve are so diversified and interesting that they are always fascinating. His every-day life is made up of all kinds of surprises. He has two groups of citizens always in view, one being his employers — the stock- holders of the company he serves — and the other being his constituency, or the public which the railroad serves and to which he is obliged to cater. He probably finds, from a perusal of his morning mail, that there has been a smash in copper or a labor 112 SOME TRANSPORTATION PROBLEMS. strike which may close up some mining district or shut down some industry; or that a bad frost has destroyed the fruit crop; or that hot winds have burned up the corn ; or that a war declared between two foreign coun- tries has caused a great demand for transport service, thereby taking out of regular channels such a large number of ships that ocean freights are all out of joint. All of these things may make it necessary to readjust rates in order to keep things moving. The traffic offi- cial who serves his constituency best, and thus promotes the prosperity of the people whom his company serves, serves best the company which employs him. Need for Government Control. There is legitimate need for the Interstate Commerce Commission, or some similar body of men appointed by the Federal government with power to supervise rates where there are pooling contracts in existence, and fair-minded railroad operators believe the law should be more comprehensive than it is now. All transportation by rail and water should be declared interstate commerce and subject to the supervision of such a commission. There is not sufficient State traffic by itself anywhere to justify excluding it, and it is irritating to see certain States taking action to protect the people within their own borders by nullifying orders that have been issued in the interest of the country generally by the national Interstate Commerce Com- mission. If we are to have a strong Federal commis- sion, it is best to give it, if possible, full power over all traffic, both State and inter- State, and thus avoid confusion. SOME TRANSPORTATION PROBLEMS. 113 Limit on Railway Construction. In England there is a good custom which makes it necessary to develop reasons for a railroad before it is allowed to be built. Railroads which are constructed for the sole purpose of selling out to lines already existing should not be tolerated. This is a matter that should be passed upon by the National commission, and no railroad should be chartered unless a necessity for it is clearly shown. Duplication and paralleling of railroads is a waste of money. The public finally has to bear the burden of all unnecessary railroads. A rail- road may be likened to a street in a large city; it costs money to build a street and to keep it in order, and the citizens have to pay for it. Therefore, unneces- sary streets, as a rule, are not constructed, and, in view of the control and regulation already partially assumed by the State and National governments, a similar pro- tection to railroad investors and to the people them- selves may be, and ought to be, demanded and accorded. Railroading a Fascinating Profession. The railroad business is a very fascinating occupa- tion, and affords to young men as good a field of labor as any other avocation. It is not regarded as a pro- fession, although without doubt it is just as much of a profession as either law or medicine, and within its boundaries are just as many opportunities for spe- cialists as in either of the professions mentioned. There is now, and always will be, a great demand for capable men, of good judgment; and every branch of the railroad business affords great opportunity to I.B-L. Vol. 8—8 114 SOME TRANSPORTATION PROBLEMS. young men. The best way for the young man who wants to acquire a knowledge of railroading, is to start on as small a road as possible, where he can get a knowledge of all departments. After acquiring more or less knowledge of the workings of the several depart- ments, it will be easy for him to decide which particular department he prefers. Of course, a young man cannot always decide this matter for himself, and under such circumstances he should endeavor to master any work that is given him, with the well-defined idea that good men are scarce, and that there is always room at the top, which can only be reached by intelligence, industry, and integrity. CHAPTER X. RAILWAYS AS INDUSTRIAL FACTORS. The year 1830 witnessed the first operation of rail- ways, in the modern sense of the term, on a compre- hensive scale for the carrying of passengers and freight. In this year the Liverpool & Manchester Railway, thirty-one miles long, was opened in the Old World, and the Baltimore & Ohio, from Baltimore to Ellicott's Mills, a distance of thirteen miles, was opened in the New. About ten years prior to this, namely, in the year 1819, the first steam vessel crossed the Atlantic; while in 1844 Professor Morse opened his telegraph line between Baltimore and Washington — the first practical telegraph system in the world. The steam- ship, the railway, and the telegraph are the gifts of the nineteenth century. They constitute elements new in the history of intercommunication. Start of American Manufactures. It may also be well to remember one other date, and that is the year 1840. About this time manufacturing in the wider sense of the term, began to take place in the United States. It is easy to trace the beginning of manufacturing in this country. It started, of course, in a very small way with the making of some of the immediate necessities, such as woolen goods. The iron- worker commenced to make a few plows. Some one of our forefathers, who had learned the tanning busi- 115 116 RAILWAYS AS INDUSTRIAL FACTORS. ness in Europe, started to tan a few hides. The wheel- wright went in partnership with the man who could make wagon bodies, and so a few woolen mills, plow factories, tanneries, and wagon factories had already made their appearance before 1830; but the bulk of the manufactured goods used in this country was sent over from Europe. Railway Factor in Development. By the year 1835 over a thousand miles of railway were in operation in the country, and at the close of 1915, 250,000 miles, in round numbers, were being oper- ated in the United States. From 1830 to 1915 is 85 years, so that this development of railways is practically within the span of life. That the railways have been factors in industrial de- velopment is a self-evident proposition. It goes without saying that there must be development where there are transportation facilities. Railways can remain passive and freight will, nevertheless, come to them, and more or less development will take place; but railways can also take an active part in development, and it is the policy of most of them to do so. Education of a Foreigner. Some years ago a foreign government railroad official visited this country for the purpose of investigating traffic matters on American railways. He said that the time had arrived when the railroads of his country, as the American railways had already done, would have to take cognizance of commercial conditions. His par- ticular mission was to perfect plans to meet the com- RAILWAYS AS INDUSTRIAL FACTORS. 117 petition of a new route in an adjoining country. He was given information about tariffs, the system of inter- changing freight-cars, and all that he inquired into. He became very much interested in the interest taken by American railways in development, and requested an outline in writing of what had been told him. In his country he said that if a man wanted, at his own ex- pense, a side-track to a mine or to a manufacturing plant, months were taken up with red tape before giving a "yes" or "no" answer. About two years after his visit a statement was published in the official journal of his country, which practically amounted to an adver- tisement. It stated that if any capitalist contemplated starting a sawmill the chief government forester, on application, would detail a deputy, connected with the particular district, to show what timber tracts in the Crown forests were available. How Railways Became Interested. At first the mileage of railways in this country was very small, and they were merely competitors with teamsters. The first railways in the country were ven- tures connecting one town in the East with another. It meant something to build railways in those days. The public had little or no confidence in them, but gradually the idea became popular and railways began to extend in several directions. The men who directed the affairs of the roads unquestionably foresaw develop- ment, but the first thing in hand was to understand the working of the new business and the securing of immediate traffic. Soon came the project of running the rails to a coal field in order to bring fuel to the large 118 KAIL WAYS AS INDUSTRIAL FACTORS. towns. Today this looks like a promising enterprise, but in judging of a past event one must see things as they appeared at the time in question. There was then an abundance of timber near all the larger towns, and cord wood was cheap. Pushing the Rails Westward. Nevertheless, the rails were laid to the coal mines, and still further extensions were made, so that by about 1850 the several lines of railway in operation between New York and Chicago formed an all-rail route. About 1856 lines were completed west to the Mississippi River. In 1867 the Missouri River at Omaha was reached, and in 1869 the railway was completed across the continent. But, though the railway spanned the continent, it must be remembered that between the Alleghenies and San Francisco there was, and is still, plenty of open space. Work of Immigration Bureaus. Building railways in Europe from one thickly set- tled district to another, with abundant capital awaiting investment, is one thing; building lines in a new coun- try, extending them fifty miles beyond the last farm, and calling the terminus "end of track," is another. One of the first things that the railways, and more espe- cially those west of Chicago, had to do, was to secure settlers on the lines. Hundreds of thousands of people now living in the great West are there because they or their fathers read the enticing pamphlets and leaflets published by the railway companies telling all about the new opportunities for farming. Great exertions RAILWAYS AS INDUSTRIAL FACTORS. 110 were made throughout the Eastern States to secure settlers for the West. Some railways even made efforts to secure farmers from the British Isles, Germany, and Scandinavia. The railways have now largely aban- doned making efforts to secure settlers from Europe ; in fact, the governments of Germany and Austria place obstacles in the way of disseminating emigration litera- ture. Effects of the Great War remain to be seen. Peopling the Western Country. But the Western country is still sparsely populated, and the work of securing settlers from the more popu- lous Eastern States has to go on. On some railways a regular immigration bureau is established, with an official in charge, usually called the "General Immi- gration Agent," who co-operates with land companies, land agents, and communities requiring more settlers. The growth of Chicago, the settlement and prosperity of the Western States, and the reflex of this western development on the prosperity of the East all attest the efficient labor performed by the railways in helping to get the country settled. A Work of Self-interest. The railways do all this from motives of self-interest, but where a great enterprise is well directed the com- monwealth is benefited. Millions of acres still await settlement, and this work must go on. The fact that it was ever undertaken on so extensive a scale by the railways will in course of time be forgotten, but the result is permanent. All this is intended to emphasize the fact that, in order to secure a general development 120 RAILWAYS AS INDUSTRIAL FACTORS. of industries, density of population is requisite. It does not mean that excessive density is required, but there must be a fair population. In this connection it may be noted in passing that history shows that anti- railroad legislation is generally identified with States that are sparsely populated. Why Factories are Encouraged. Agriculture is, of course, the basis of the country's wealth. The territory west of Chicago is now recog- nized as one of the principal granaries of the world. This has been made possible only by the extension of railways. A bushel of wheat is now carried by rail a distance of nearly 2,000 miles for 27 cents. To haul this distance by wagon would cost $5.25 per bushel. In the early days of railroads, especially those west from Chicago, wheat and corn were the principal staples carried. If the harvest was good, things went well; but if the farmers had a poor wheat or a poor corn crop, it affected the railways severely. It affects them yet, but if there is diversified farming, the farmer more easily recovers from the effects of a bad year, and if the railway has diversified farming, mines, quarries, and factories on its lines, it also gets over a bad year more easily. The railway managers, therefore, saw that they must not be entirely dependent on one crop, and took steps to bring about a change in conditions. Systematic Work of Development. We have to understand that the railroads always did welcome factories that came to them. But in this new policy they did not wait to welcome them, but RAILWAYS AS INDUSTRIAL FACTORS. 121 went after the business. The railroads said: "We must run our business just as every other manufacturer does — send our travelers to sell goods; advertise; tell what there is on the land; bring the water-powers into use; bring the coal into use; get brickyards to come." Then they thought: "What is the best thing to do?" The freight department might take it in hand, or the passenger department; but at last some one hit upon the idea that it would be better to put one man at the work, to organize it so as to bring about results. In other words, they were in the same condition as the manufacturer or business man is today. It is one thing to make goods and another to manufacture a market for them. This is the theory of modern business. Organization Secret of Success. The first thing in the railroad problem of develop- ment was organization. Take any railroad starting west from Chicago as it was some ten or fifteen years ago. The first thing was to take the territory in hand. The instructions of one man were to "jump on a train and look out of the window for about six months, and study our whole territory." He asked, "When do you expect results ?" The railroad officials replied : "In about three } r ears." "All right," he said; "you have the right idea." Of course he did not merely look out of the window, but commenced to pay attention to business. The first thing was to get around to all the towns and get them to organize business-men's associations. There used to be in most towns a business-men's association. They generally had a billiard-room, and played a little whist, 122 RAILWAYS AS INDUSTRIAL FACTORS. and such things, but this developer said: "Gentlemen, we have got to get right down to business, and live up to your name. You must form a committee among yourselves. One man must find out all about the mineral resources around your town, and one man must find about the timber, and you must post yourselves as to what you have. We want to get all this informa- tion collected." Education of the Business Men. At that time most of the people around their own towns in the country did not know what their resources were in the first place. But at last organization secured the desired information. There are 5,000 or 6,000 towns on the great railways, like the Northwestern, the St. Paul, the Burlington. You can go today to any of these towns and sav to some of the business men, "I want to start a canned-lobster factory," and the smart ones will say: "Xo; you cannot afford to bring the lobsters to the West to can them." But the next man says: "Mine is an excelsior factory." "All right," will be the reply; "you are the man we want. We have cottonwood around here in plenty, and this is the place to locate your excelsior factory." In most towns, thanks to the organization work done by the railroads, there is some one who can tell the resources, whether you can compete, and whether you can get a free site, and what you can do. Publicity a Powerful Factor. After thoroughly organizing the West, there was a lot of advertising in the East. Everything said was RAILWAYS AS INDUSTRIAL FACTORS. 123 taken with 90 per cent discount. The great center of manufacturing was around the Alleghenies. The manufacturers there had no idea that manufacturing could be done in the West. But the railway developers replied: "We can make steel rails in Chicago." That is a good argument, because it implies that coal and labor and iron and limestone and everything needed is there. The first thing done was, for years, to advertise in the East just one plain statement — that the people were moving Westward; that the lands in the West were being settled; that great markets were being formed there, with great purchasing power; that the people were people of enterprise and would buy goods ; that the Eastern man should go West. Advertising on Impressive Scale. One railroad kept that notice in its time-table, and issued forty thousand copies a month, for eight years; and somebody must have read it. Of one circular alone four millions were circulated in the East. You can see the effect. The people at Pittsburg had to sell their implements at a Chicago rate. So at last they began to say: "What is the use of being so far away from the market? The market is West; that is where they are growing wheat." So some of the agricultural implement men commenced to move. They were about the first to go West. Result of Unsuccessful Experiments. A man was experimenting in New York with flax. He had made a great deal of money in the South, and 124 RAILWAYS AS INDUSTRIAL FACTORS. had a fine laboratory in New York. "Why don't you come out West and see our flax?" he was asked. He wired that he would come on the next train. He did so, and started a plant up in Minnesota to make paper. But after trying it for a year, in 1892, he could not make it go. He had spent $60,000, without success, and the World's Fair was coming on, so he turned the whole plant into a furniture-tow factory, and in 1893 they made $20,000 or $30,000 out of furniture-tow, and they are making tow profitably yet. A few years later the same man said he thought he could make mats from slough-grass. A railroad offi- cial took him all over the West to try to find the grass, and finally it was located at a place near St. Paul and also near Oshkosh. At Oshkosh he has employed 400 people for the last four years, and the same number at St. Paul, and is opening another plant now in the North. Building Up a Big Industry. Some years ago, there were a few sewer-pipe fac- tories at Akron, and nothing farther West, and carry- ing the pipe to Chicago was about all the freight it could stand. There must be a limit to carrying cheap material. The people west of the Mississippi could hardly get sewer-pipe at all, except at high prices, be- cause even the railroads could not make rates low enough on it. About this time, a man in Chicago went into a railway office and said: "I want to make a sort of conduit-pipe. We must put the telephones under- ground, and I want to find out from you where we can get a deposit of suitable clay." RAILWAYS AS INDUSTRIAL FACTORS. 125 "We do not think you can get it near Chicago, be- cause vitrified clay does not exist here," said the rail- road officials; "but we will try." So they wrote to 127 agents within a hundred miles from Chicago, ask- ing, "Have you got anything in your locality in the shape of vitrified clay, or any good clay that will make brick? If you are too busy, please hand this to someone interested." Eighty of these agents answered within a week — they had or had not. Some six answered in fourteen days, and about ten laggards answered in about three months. That happens when a man is dealing with large bodies of men. Three of the agents answered by telegraph, "We have blue clay." The manufacturer was invited to look at the clay. Result of Systematic Effort. The railway official thought, "We might as well spread this thing," and he picked up the Chicago directory and saw that there were eighty-nine brick manufacturers in the town. He wrote them all a nice circular letter, saying: "Blue clay has been discovered on the St. Paul road. We intend to run a special train next Wednesday at 10 o'clock; can you send a repre- sentative, or come yourself? If so, we will send a ticket." He received sixty-one answers; thirty-one acceptances, the others giving reasons why they could not go. Some argued that there was no use in putting brickyards out of Chicago. The railroad man notified the station agents to have the farmers dig holes to show the clay. He knew these farmers, and he wrote them: "The train will arrive at 10:15 and will leave vour sta- 126 RAILWAYS AS INDUSTRIAL FACTORS. tion at 10:20, and if the hole is not dug we will pass on to the next station." The result of the trip was that one man was induced to put a yard there, and it is running yet. About a month afterward, W. J. Alsip, a well-known brick man of Chicago who died recently, said: "One of my com- petitors has gone up on your road. I think I will put up a plant there." He sent a man up there, and he found a place just above this other yard, and they put up a yard that has always turned out from ten to twelve cars of brick a day. These men ship the brick to all the little towns around — Janesville, Rockford, etc., — and this led again to other developments. Development of Tannery Industry. The next thing to do was to get timber known. Of course everybody knows that pine will sell, but there were a number of other kinds, like hemlock, which, fifteen or twenty years ago, had no particular market in the West. The tanneries at that time were mostly in the East, though there had always been a few around Milwaukee. The railways could not get northern Wis- consin settled, as the immigration agents said: "We cannot get any settlers, because we have no market for the timber they are clearing off." There was enough hemlock there to run all the tanneries in the United States for fifty years. This fact was adver- tised by the railways. In Pennsylvania the supply of bark was giving out, and would not last more than five or six years. That was twenty years ago, and they have lots of bark yet. But on this idea the investigation was made and all the data about how much hemlock RAILWAYS AS INDUSTRIAL FACTORS. 127 there was in Wisconsin collected. "How can we make this known through the East?" was the next question. It was solved by sending a news story to the Milwaukee Sentinel. Assisted by Newspaper Men. The man at the other end was a smart fellow. He was working for the newspaper, the writer was work- ing for the railroad, but he saw that if they could get these tanners from Pennsylvania into Wisconsin they would sell more newspapers and get more advertising. So he took the article and put on big scare-head lines: "Wisconsin the Coming Place for Tanneries! Penn- sylvania Tan-Bark Giving Out!" Other correspondents and editors took it up and in a short time it was spread all over the country. The result was that a great tannery industry was built up in Wisconsin, to the profit of both people and railways. One man came from Boston and thought he would look at the bark. He had two cars of it shipped East, sampled it, said it was all right, went back, and estab- lished a big tannery at Merrill. Today the United States Leather Co. has its tannery at Warsaw; the American Hide & Leather Co., at Merrill, and the Eastern & Western Tanning Co., at Tomahawk. The Wisconsin Central later put a commissioner at work, and he has more than duplicated the work done by the St. Paul road. Origin of Wisconsin Paper Mills. In 1891 the first paper mill was established on the Wisconsin river. Today there are many paper mills 128 RAILWAYS AS INDUSTRIAL FACTORS. there. Another man tried an experiment, and thought he would make paper with hemlock. He argued: "It's the very thing for me; the tanneries will take the bark and I will take the logs." And that has been done since then. He went up and took the logs that the farmers had peeled. Everybody knows now that the paper industry of Wisconsin is a big thing. The railways "did it." Hotels came next. It was essential in the carrying out of railway development plans that prospective in- vestors should have decent hotel accommodations, so one of the first things the railways had to do was to encourage good hotels through the West. At Mari- nette, before this was done, you could not keep a man twenty-four hours; no Eastern man would stay. The business men were called together, and they said: "We will subscribe $75,000 to a hotel. If we make 6 per cent, all right ; if we make 5 per cent, or 4 per cent, all right; but we will have the hotel" — and they built it. The same was done in other cities. Investors found the "frontier" fairly comfortable. It was a big factor in inducing them to put their money into enterprises, which are yearly growing larger and adding wealth and population to the West. Moved by Selfish Motive. In all this work of development, of course, the rail- ways were governed by a selfish motive — they wanted the increased traffic which development would bring, and they got it. In the securing of this increased, and RAILWAYS AS INDUSTRIAL FACTORS. 129 ever-increasing, traffic, the railroads, perhaps, "builded better than they knew." What if they did? The bene- fits thus obtained are universal. It is not the railroads alone that are reaping the profit. I.B.I,. Vol. 8—9 "In the passing of a generation, as it were, the rail- road and the steamship have transformed the whole realm of industrial and social life. They have enriched every occupation, given multiplied value to each pursuit, added incalculably to the means of human enjoyment, made our vast wealth possible. They are at once the greatest achievement and greatest necessity of our mod- ern civilization. But we do well to remember that this marvelous achievement has been accomplished by pri- vate enterprise and private capital, and that we must look — we certainly should look — to that same source for its further and adequate development. Far distant be the day when any thoughtful man will seriously contem- plate a different national policy." — The Hon. Martin A. Knapp, Chairman of Interstate Commerce Com- mission. CHAPTER XI. TRAINING OF RAILWAY MECHANICS. The problem of effectually supplying the ever- increasing demand for skilled and thoroughly trained mechanics has been constantly in the foreground and for some years past has caused a great deal of anxiety to the heads of all large industrial corporations, and everywhere was heard sighs of regret that the ranks of the good mechanics were being rapidly depleted. Realizing that this was in part correct, the Grand Trunk Railway some years ago endeavored to fill the breach and pioneered a movement which has since been copied on a minor scale by all the great railroads of Canada and the United States, as well as the largest manufacturing firms in both these countries, namely, the technical training of their apprentices. Benefits of the System. The average boy, who from force of circumstances had to leave school in the early stages of his education and take up his life work, had little to look forward to in the matter of education, except by years of unre- mitting toil, unassisted, unrewarded, and finally arriv- ing at a smattering of a few primary subjects imper- fectlv learned. With this problem before it, the Grand Trunk Rail- way started a class for its apprentice boys, who were eager to learn; commenced to teach subjects which at 131 132 TRAINING OF RAILWAY MECHANICS. once aroused interest among the boys, bearing as it did on the every-day needs of mechanics. In a surpris- ingly short time, the desire for knowledge being whetted, it was found necessary to increase the scope of the teach- ing, as the apprentice boy of the day saw within his grasp the very highest position of responsibility in the management and operation of the road. He realized that here was an opportunity to obtain an education little short of a college course, with a minimum exertion on his part and at the same time be independent and self-supporting. Graduates Get Good Positions. From the commencement on a small scale, the system has grown until at the present time these technical schools are spread at all important centers throughout the entire Grand Trunk System and hundreds of schol- ars are enrolled, whilst every large railway system of this continent boasts several of the G. T. training schools as their chief mechanical engineers, and more than one of our largest industrial concerns have graduates as their chief draughtsmen. Outline of Curriculum. The subjects taught are graded to suit the student's ability, and in dozens of cases boys who left school when in the second book can now do problems which would tax the powers of a high school graduate to the utmost. The subjects taught comprise everything from simple arithmetic to higher mathematics, mechanics, machine design and mechanical drawing, and so well has the course been graded that numerous requests from me- TRAINING OF RAILWAY MECHANICS. 138 chanics' institutes and even our largest technical colleges have been received for complete sets of instruction books. The entire cost of education at these training schools is borne by the Grand Trunk System, which furnishes all the equipments and engages the instructors, who must themselves have had a thorough technical and practical training, so as to enable them to anticipate the needs of the apprentices. How Boys are Rewarded. Further encouragement is given the boys to learn by the large number of prizes donated annually, open to competition to all classes on the system, and include free scholarships in engineering at McGill University, as well as handsome cash prizes. These prize competitions are held at different cen- ters, to which the best students at the several centers are invited, free transportation, entertainment and all ex- penses being borne by the company. The appreciation of individual promotions forms one of the strongest features in the system and serves to keep alive the keenest interest in the classes, as the boys realize that as soon as they arrive at a certain standard of excellence increased pay is their reward, and many of our foremost students of political economy see in this system, as it is being carried out, the future supply of skilled mechanics, master mechanics, superintendents, etc., being carefully husbanded, and an effective solution of the labor problem, namely, the prompt recognition of individual merit. Compulsory Classes in Drawing. For two evenings per week during the fall and winter months he must attend mechanical drawing classes, 134 TRAINING OF RAILWAY MECHANICS. study of practical mechanics and elementary electricity, the most competent instructors procurable being pro- vided. On the staff are two graduates of American and Canadian engineering colleges, Purdue and McGill. The work in the drawing class is outlined in a special text book written by the company's chief draughtsman at Montreal, who is also the author of the book used on practical mechanics. During the term frequent examinations are held, and the points gained by each boy are posted so that they may all keep advised as to just what progress they are making, and thereby be able to brush up the weak spots that the examinations have disclosed. Prizes for Best Work. The annual competitive examination is always con- ducted by the company's chief draughtsman from Mon- treal, and occurs at all the large shops along the system. Prizes are awarded to the apprentices obtaining the highest average in their respective years. These prizes amount to $40 for each shop, and are distributed over the different years of apprenticeship. In addition to the prizes as stated above, there is a capital prize offered of $25 for each subject. This is competed for by the apprentices obtaining the highest averages in drawing and practical mechanics at their respective stations. These apprentices are given a trip to some point on the system where the final examina- tions are held, and the one receiving the highest number of points in each subject receives the amount stated. This, in addition to what he has already received at his TRAINING OF RAILWAY MECHANICS. 135 station, will make a total of $29, $33 or $58, if he has been successful in all subjects. After the season has closed, the boys at some of the large shops hold what is termed "Apprentice Night." This is the social event of the season. Each one makes a drawing, which is neatly gotten up and inked in. This is placed on exhibition, and the prizes are awarded for each year of apprenticeship. Method of Apprenticeship. The form of apprenticeship which has been adopted by the Grand Trunk Railway System has been in suc- cessful operation for a number of years and has been the means of supplying that company with skilled mechanics in the most satisfactory manner. All appren- tices are indentured to the machinist's trade for five years, and to the blacksmith's, boilermaker's, or other trades for four years. Five cents per day is deducted from the wages of each apprentice, and the total amount is returned to him at the expiration of his apprenticeship with an addition of $25 as a bonus if his services have been entirely satisfactory. The first requisite in employing an apprentice is to know that he is morally, physically and mentally capable of filling the requirements of a mechanic. To ascertain this the apprentice is required to make his application direct to the master mechanic or the general foreman, and to be not under 15 or over 18 years of age. He is required to undergo a medical examination so as to assure the head of the department that he is healthy and likely to be able to follow up the trade after he has completed the term of apprenticeship. 136 TRAINING OF RAILWAY MECHANICS. Examination of Applicants. This information being satisfactory, he has to pass an examination in the master mechanic's or general fore- man's office. This is usually conducted by the chief clerk or some person specially appointed for that pur- pose, as follows : — To be able to read extracts from instructions from end of employees' train time-table, as, per example, standing thirty inches from same : — All the apprentices of this Company must be able to read the rules readily. Regulations are published from time to time and workmen are expected to acquaint themselves with them. To be able to hear the ticking of an ordinary open- face watch at a distance of four feet. By writing a letter, from dictation, applying for em- ployment in the shops, as, per sample : — Mr. Dear Sir, — I am desirous of entering the service of the Railway as an apprentice in the shops at I am years of age and in good health and free from bodily defects. When I left school at I was in grade (or form). Since then I have been employed as follows: Should you accept this application, I will promise faithfully to conform to the rules and regulations of the Railway, and try to become a first-class mechanic. Yours truly, To be able to work out correctly similar examples to the following: — Multiply 122,983,672 by 527,001. Divide 723,643,978 by 365. TRAINING OF RAILWAY MECHANICS. 137 Books for Further Instruction. The apprentice, after having passed a successful examination, is provided with a text-book for his instruc- tion and guidance. This book contains examinations for the apprentice for each promotion he takes while serv- ing his apprenticeship, and if he fails in any of these examinations he is set back to his old position for another term and the next apprentice in turn is promoted ahead of him, provided the next apprentice passes a satisfac- tory examination. When another promotion is neces- sary the apprentice who failed is given another oppor- tunity to qualify. If he fails the second time he is either dismissed from the service or given some minor position he is capable of filling outside of the trade, as it is con- cluded that he is either not sufficiently intelligent or too indifferent to make a mechanic. After passing the first or entrance examination in the master mechanic's or general foreman's office the ap- prentice is sent out to the boiler, blacksmith or copper- smith shops, or other shop as may be required. He stays there from six to nine months, and is taught to be active and obedient and to prepare himself for future promotions. Questions from Text-Book. Following are a few samples of the contents of apprentices' text-book : — Q. What is the weight of standard shop hammer (machinist's hand) ? A. Two pounds. Q. At what point should hammer be held for effi- cient service? 138 TRAINING OF RAILWAY MECHANICS. A. At the extreme end of handle. Q. What is the standard length of hammer handle? A. 15 inches over all. Q. How many classes of drills are in general use in this shop? A. Two, viz. : Flat and standard twist drills. Q. At what degree is cutting end of twist drill ground ? A. 59 degrees, measuring angle from center line of drill. Q. Name the speeds for drilling brass, cast iron, wrought iron and steel, different size holes, with carbon steel drills, and air hardened steel drills. A. As per table and as much faster as drill and material will permit. Q. Give the correct speeds for a 1-inch carbon steel drill in iron or steel and brass. A. Iron or steel, 115 revolutions equal to 30 feet per minute; brass, 558 revolutions equal to 153 feet per minute. Q. Give the correct speed for a 1-inch high speed steel drill in iron or steel and brass. A. Iron or steel, 191 revolutions equal to 49 feet per minute; brass, 781 revolutions eaual to 204 feet per minute. Q. What lubricant is used for drilling wrought iron or steel? A. A mixture of 1 lb. soft soap, *4 lb. soda, 1 pint oil to 2i/2 gallons water, or such other lubricant as may be furnished. Q. What is a center punch used for? TRAINING OF RAILWAY MECHANICS. 139 A. Marking center of holes for drilling and indi- cating lines on other machine work. Q. What is a round nosed chisel used for at drilling machine ? A. Drawing centers. Q. Which side of a belt should be run next to pulley or cone? A. Smooth or grain side. Q. What are the general rules to be observed re- garding cleanliness and care of machines? A. All cuttings of different materials are to be kept separate. Machine to be thoroughly cleaned once per week in addition to ordinary daily cleaning, and all working parts kept properly lubricated. Marking or defacing machine in any way to be carefully avoided. Q. Explain the reading of an ordinary standard measuring rule? A. Apprentice will explain practically from rule. Q. How many, and what are the names of the dif- ferent classes of calipers in general use on drilling machine ? A. Three, inside, outside, compass or hermaphro- dite. Q. What tools are necessary for laying off and measuring work at drilling machine? A. Inside, outside and compass caliper, dividers, center punch, rule, square and surface gauge. Q. What is a jig? A. A device for standardizing and duplicating parts, and is a casting or plate fitted with hardened steel bushes which form a guide for drilling, slotting, turning or planing. 140 TRAINING OF RAILWAY MECHANICS. Purpose of the Text-Book. The object of the text book is to have the boy theoretically conversant with the work that is going to be done by him after his next promotion. For instance, a boy going from the blacksmith to machine shop has to pass his examinations before he is accepted in the machine shop, which is called "Examination for pro- motion of apprentices from other shops to the machine shop." As he is usually put on a drill to commence with, by studying his text book he learns considerable about it, and also the tools he is to use in connection with it. The same practice is followed throughout the whole term of apprenticeship, and while the apprentice is working at one machine he is studying as much as possible about the machine he is to go on next. One of the great advantages of this system is that it gets the apprentice thinking, and leads him to reading up in line with his work. Advantage of Indenture System. The indenture system has been found of great ad- vantage both to the company and the apprentice. It has a tendency to keep the apprentice satisfied, and steady his energies along the required lines. It also prevents him from being tampered with by outside firms or corporations who desire to obtain the services of the boy as soon as he has become useful to the company which has instructed him. At the completion of his term each apprentice re- ceives a certificate showing that he has served as an apprentice and as a mechanic in the branch of trade that he was apprenticed to. TRAINING OF RAILWAY MECHANICS. 141 An apprentice is required to serve five years at the following rates: 8c, 10c, 12c, 15c and 17c per hour. Before he is granted each year's advance he is required to pass a written examination on shop work, also make a drawing of some detail part of a locomotive, as speci- fied in the apprenticeship book, which examination and drawing must have the approval of the master mechanic and the superintendent of motive power before his advance is allowed. All-Round Competency Secured. This system insures thorough education in all details of the trade, and while some of the work may be spe- cialized it is not done by the apprentice until he be- comes a journeyman. For instance, the apprentice comes from the boiler shop to the machine shop, from the machine shop to motion bench, to the side rod bench, to the axlebox gang, to the steam pipe gang, to the valve gang, and finally to the erecting gang, so that after an apprentice is out of his time he is a specialist in any one of these branches. This system of apprenticeship on the Grand Trunk has also been found to be the means of parents giving their sons who desire to enter the service a better edu- cation than formerly. Before its adoption the only requirement was that the boy had to be 15 years of age. It was found that parents took their boys away from school at 12 or 13 years of age, and put them at some other work until old enough to enter the Grand Trunk shops. When the examinations were first inaugurated, quite a number of the boys were turned down, and had 142 TRAINING OF RAILWAY MECHANICS. to go back to school again before they could qualify to enter the service. Status of Apprentice Improved. This has not only resulted in prospective applicants getting a better education, but has elevated the moral standing of the apprentices' work, and made the system attractive to boys who have passed the high school entrance examination, and who, although well advanced along the lines of school education, adopt the mechanic's trade in preference to other pursuits. In conclusion, the success of the apprenticeship sys- tem is imperatively dependent upon the careful man- agement of the examinations, and the compulsory attendance at the classes provided by the company for their education. CHAPTER XII. RAILWAY SITUATION IN CANADA. Railway transportation in Canada at the present time (1916) is deeply affected by extraordinary conditions arising from the European war. The effects of the great struggle, in which Canada, as an integral part of the British Empire, is an active participant, are ap- parent both in the extent of railway construction and in the results of railway operation. For a number of years prior to the Great War, Canada had been taking giant strides in railway con- struction. In 1914 the addition to operative mileage was 1,491 miles, bringing the total up to 30,795 miles. This is considerably more than the mileage of the United Kingdom, and raises Canada to fifth place among the nations of the world in the matter of railways. The in- crement during the ten years including 1914 amounted to 11,364 miles of line. While the distribution of this new mileage has af- fected all the provinces, the west has had over 70 per cent of it. That is where the need of the Dominion for railways has existed, and still exists, as the result of rapid settlement. It should also be mentioned that dur- ing the last year of which there is an official report 309 miles were added to second track, making the total 2,293, and 583 miles to yard track, the aggregate of which was thereby brought up to 7,518 miles. 143 144 THE RAILWAY SITUATION IN CANADA. Perhaps more striking than the additions to oper- ative mileage in 1914 are the facts with regard to Can- adian lines under construction. The situation on June 30, 1914, compared with the same date in the previous year, was as follows: 1913 1914 New mileage surveyed 6,558 11,472 Under construction 8,591 5,521 Completed 2,956 3,417 In operation 542 2,443 Total 18,648 22,853 The mileage noted as "in operation" refers to mileage which had not in 1914 been taken out of the "under con- struction" classification. It is quite a common thing for the Canadian Railway Commission to permit parts of new lines to handle traffic pending completion of the whole, and also to allow completed railways to be oper- ated for a limited period by the contractors. It is rea- sonable to assume, however, that at least 10,000 miles of new line now in various stages of construction will be added to official operative mileage within the next four or five years. Of course, at this juncture, no one may say what effect the war in Europe will have on the whole railway situation, especially with respect to the availability of capital. Increased Capitalization. Building railways nowadays is an expensive proceed- ing, and it is therefore not surprising that the capitali- zation of the Canadian system was increased by $276,- 990,000 during 1914. This increment consisted of THE RAILWAY SITUATION IN CANADA. I45 bonds, $169,145,686; common stocks, $97,794,137; and debenture stock of the Canadian Pacific Railway, $10,- 050,246. By these additions the aggregate liability of the Canadian roads was brought up to $1,808,820,761. In addition there were stocks amounting to $64,637,500 and bonds totaling $88,669,809 attached to lines offi- cially regarded as being under construction ; so that the final total would be $1,962,128,070. It was definitely ascertained when the last report was made that the in- terest on all outstanding bonds was paid. Dividends for the year ran up to $30,434,601, as com- pared with $27,333,373 in the previous year. The force of these figures is accentuated by the fact that seven years before the aggregate of dividends was $12,760,- 435. The funded debt in 1914 amounted to $23,481 per mile of the lines affected, which cannot be regarded as high. Stocks had an average of $30,138 per mile. Government Aid to Railways. The policy of aiding railway construction continues in Canada, and in 1914 the largest expenditure for that purpose was made since government subventions were begun. Direct cash subsidies amounted to $16,583,059, of which all but $523,260 came from the Dominion treasury. That, however, fell far short of the contri- butions which were made by the Dominion and the provinces in the form of guarantees of bonds. Parlia- ment voted $45,000,000 of guarantees to the Canadian Northern in May, 1914, following very much larger as- sistance to that company in subsidies and indorsements in preceding years. The total account for guarantees having legislative authorization reached $406,259,165 146 THE RAILWAY SITUATION IN CANADA. on June 30, 1914, of which $188,965,063 stood in the name of the Dominion. The western provinces are chiefly involved in connection with the remainder, and as these guarantees are precisely like the indorsements made in everyday life of promissory notes, it will be seen that the situation would be exceedingly serious if default should be made by the railways concerned. These obligations, however, represent, two things: The optimism of the West and the need for transporta- tion facilities. And, as Mr. J. L. Payne, Comptroller of Statistics in the Department of Railways and Canals at Ottawa, said recently in an article for which we are indebted to the leading journal of American transpor- tation, the Railway Age Gazette : "Under normal conditions nothing more will happen than happens when one friend indorses for another. The West will get its railways — has, in fact, already got thousands of miles of new line by that process — and the railway corporations will pay principal and interest. The emphasis is on the word 'normal.' It must also be borne in mind, before the attitude of the Canadian peo- ple in respect of transportation is understood, that the Dominion government is building the eastern section of the Grand Trunk Pacific, and has expended on that ac- count $150,000,000; that it has guaranteed the bonds of the Grand Trunk Pacific for the construction of the western section, and had actually purchased $33,116,000 worth of these bonds up to June 30, 1914, in order to secure par value for the company." Railway Earnings and the War. The great European war is, incidentally, emphasizing THE RAILWAY SITUATION IN CANADA. 147 in Canada the intimate relation between trade and traffic. "Railway earnings are barometric," says Comptroller Payne, "in their reflection of the commer- cial activities of a people. They go up or down with the fluctuations of trade. This is not generally under- stood. It cannot be, or there would be a better and saner appreciation of the functions of our great carry- ing agencies. "When earnings are on the ascendant, there are many who fail to see in that fact the throb of national strength and success. They are apt to cry out that the railways are wringing too much from the people and must be re- strained ; but in a day of adversity, when earnings come tumbling down, they are not sympathetically disposed toward the hard-hit railways. There seems to be lack- ing that judicial view of the case, which recognizes the soundness of balancing good years against bad years." The railways of Canada did not earn quite as much in 1914 as they did in 1913, and in 1915 and 1916 they will inevitably run considerably below the record for 1914. This loss will fall upon the people at large with just as much severity as upon the railways. There is no industry, not even agriculture, which makes such a wide distribution of its prosperity as does the railway industry, and it is equally true that the pinch of railway poverty is as quickly diffused among all classes of the community. Under present conditions, therefore, Can- ada has had to learn a new lesson. Decline in Net Earnings. For more than thirty years, with the single exception of 1909, railway earnings in Canada have mounted up- 148 THE RAILWAY SITUATION IN CANADA. wards. During the past ten years in particular they have made sensational leaps. It came therefore as somewhat of a shock — a disturbing departure from what was accepted as the established order — to find that for the year ended June 30, 1914, there was a decline of $13,619,164, or from $256,702,703 in 1913 to $243,083,- 530 in 1914. Operating expenses, on the other hand, were reduced by only $3,036,431 ; so that net earnings, as represented by the difference between gross earnings and operating cost, fell off by $10,582,733 for the year. This result created a serious jump in the ratio of oper- ating expenses to gross earnings. That ratio in 1912 was 68.7 ; in 1913 it rose to 70.9, and in 1914 to 73.6. Of course, this setback happened, as has been pointed out, after a long period of really remarkable progress. That progress is strikingly demonstrated in the follow- ing statement of gross earnings per mile, which has not been included in the official reports : 1899 $3,608 1909 $6,018 1904 5,158 1914 7,894 The decline for 1914 was equal to $866 per mile. The story is succinctly told in the following comparison of the sources of earnings in 1913 and 1914: 1913 1914 Passenger service $ 74,431,994 $ 72,564,203 Freight service 177,089,373 165,753,731 Station and train privileges 1,566,721 1,044,737 Telegraphs, rents, etc 3,614,615 3,720,868 Total $256,702,703 $243,083,539 The principal falling off was in earnings from freight THE RAILWAY SITUATION IN CANADA. H9 service, which was due to the hauling of 5,598,721 tons less than in 1913. The number of passengers carried was actually some 471,515 more than in the preceding year, yet the volume of earnings from ticket sales de- clined by $2,429,134. The reason for this is found in the fact that the average passenger journey fell from 71 miles in 1913, a comparatively high average, to 66 miles in 1914. That little five miles seems to have cost the railways nearly two millions and a half of dollars. Public Service of the Railways. The following condensed facts with respect to the public service of Canadian railways in 1914 may illumi- nate the whole traffic situation in the Dominion at the present time : Tons hauled > 101,393,989 Passengers carried 46,702,280 Tons one mile per mile of line 716,359 Passengers one mile per mile of line . . . 100,309 Receipts per passenger per mile, cents. 2.007 Receipts per ton per mile, cent .742 Average receipts per passenger $1,328 Average receipts per ton $1,614 Passengers per train 59 Tons per freight train 353 Tons per loaded car 19.18 Cars per freight train 18.4 Average freight haul, miles 217 Railway Interests Centralized There is a continuing tendency in Canada to cen- tralize its railway interests. In 1914, for example, 79 per cent of all traffic and earnings attached to three cor- 150 THE RAILWAY SITUATION IN CANADA. porations — the Canadian Pacific, the Canadian North- ern, and the Grand Trunk. The Grand Trunk Pacific is counted in with the Grand Trunk. If seven other units be taken in, the ratio rises to 92 per cent, leaving but 8 per cent for all the remaining lines, nearly ninety in number. This work of absorbing the carrying trade into rel- atively few hands has been proceeding for a number of years, and has not aroused serious opposition. The conviction obtains in the communities more or less di- rectlv affected that it has contributed to better service, without in any degree causing higher rates. Freight Rates in Canada. Taking up briefly the broad question of freight rates in Canada, it may be noted that the average receipts per ton per mile in 1914, by all the railways of the Domin- ion, were 0.742 cents. There has not been any mate- rial change in this fundamental factor during the pre- vious eight years, and information back of that period is not available. The tendency in rate adjustments has for a long time been downward, and while earnings were rising steadily, as the result of swelling traffic, it would per- haps have been unpopular to permit increases. "Hap- pily," says Comptroller Payne, "Canada escaped the two-cent-per-mile passenger rate agitation which over- whelmed so many of the state legislatures across the boundary, and carried in its train a mass of admittedly meddlesome and restrictive legislation affecting rail- ways." The rate situation in Canada may be summed up in THE RAILWAY SITUATION IN CANADA. 151 this conclusion: While freight rates have not in any direction been increased, there have been numerous specific reductions and also changes of classification; so that, on the whole, there has been a slight impairment of earning power. This was not resisted by the rail- ways while the tide of prosperity was running high ; but the whole matter may assume a different complexion, and properly so, in the face of serious reverses. Since the outbreak of the war, there have been heavy declines in earnings, and no one may say when the trend will turn upward. Of course, the productive potentialities of the Dominion cannot be destroyed, and the return to normal conditions is obviously a matter of time; but, without reference to how and when the volume of traffic will be restored to former levels, fair play demands that the persistent rise in the cost of operation should be recognized in its full bearing on rates. Whereas in 1899 it cost 77.9 cents to run a train one mile in Canada, in 1914 it cost $1.66 — an advance of 113 per cent. During the same period earnings per train mile increased by precisely 89 per cent. Such a dis- parity could only be endured by the railways under very favorable conditions. Should the very unfavorable conditions which have been created by the war and other causes persist for a term of years, it is clear that the railways will be compelled to take broad and compre- hensive measures for either the betterment of earnings or the reduction of operating expenses. The larger not only began in 1915 the cutting down of their working staff where possible, coupled with the elimination of certain trains and other services, but they also an- 152 THE RAILWAY SITUATION IN CANADA. nounced the imperative need for a recasting of the scale of compensation to employees. Vitality of Canadian Roads. The vitality and soundness of a large group of rail- ways may properly be tested by the same standards which are applicable to any one of the units. That is to say, a railway would be regarded as strong and pros- perous, if its operating expenses fell sufficiently far be- low gross earnings to leave a fair balance after fixed charges had been met, provided always — and this is ab- solutely vital — that the balance to profit had not been realized at the expense of physical property. The railways of Canada would not shrink from such a test. Indeed, they appear to advantage when it is applied. In 1914 the ratio of operating expenses to gross earnings was 73.63 per cent, and that result was achieved after more than ordinary expenditures had been made for the upkeep of roadbed and equipment. In other words, net earnings have not been the result of an unsound policy with respect to operating conditions. Expenditures for Maintenance. During the five years ending with the period of the last official report, the outlay of the Canadian railways for maintenance of way and structures averaged 21.92 and 20.42 per cent, respectively, of total operating ex- penses, and that is somewhat better than the average of United States railways during the same period. In 1914, for example, $35,292,227 was expended on way and structures, and $36,375,331 on maintenance of equipment, these outlays being equal to $1,146.07 per THE RAILWAY SITUATION IN CANADA. 153 mile of line in the first case, and $1,181,121 in the sec- ond. It can be fairly said that there has been a per- sistent movement toward the best standards in all serv- ice conditions, and Canadian railways do not in any respect fall below those of the United States in all that makes for general efficiency and comfort. The additions to rolling stock made by Canadian roads during the three years ending 1914 have been as follows: Locomotives, 1,228; passenger cars, 1,849; and freight cars, 77,032. Quite as important as numbers has been the rising scale in capacity of both hauling and carrying units. For example, the average capacity of a car in freight service in 1907 was 27.6 tons. In 1914 it was 33.2 tons. Likewise, the average trainload has been raised from 260 tons in 1907 to 353 tons in 1914. The direct effect of recent large additions to equipment has been to com- pletely silence the general outcry against car shortage which had been heard for many years ; but, owing to per- haps unavoidable, but nevertheless wasteful, marketing conditions, this has been achieved at the expense of load- ing the railways with a heavy surplus of cars during at least four months in the year. Some of this new rolling stock came from the United States. The official return of imports from across the line for 1914 shows that Can- adian railways brought in 166 locomotives, 208 pas- senger cars, 4,596 freight cars and 4,113 other cars from the American side, which made up a total account of $7,987,877. Future Depends on the War. The Great War, following closely upon a lull in high 154 THE RAILWAY SITUATION IN CANADA. pressure traffic conditions — a lull which might have been wholly temporary — has disturbed the fundament- als of commerce in Canada. One does not, however, see the effects very plainly as yet. Production seems to be proceeding. There are not many industrial estab- lishments idle. Business is apparently being carried on as usual. But the railway barometer tells a plain story of de- pression, and it is infallible, as the able Comptroller of the Department of Railways says. "The pinch here and the slackness there are reflected from ocean to ocean in lowered freight earnings. There may not be discouragement — you certainly would not hear any- thing pessimistic in Canada at this time of trial — but everybody realizes that economy is necessary. At the foundation of nearly all great commercial upheavals one may find uncertainty, and that word expresses the sit- uation just now in Canada. "So far as the railways are concerned, they cannot possibly escape the constriction ; and the hard part of it is that, while many begrudged them a reasonable share in the prosperity of the past decade in particular, they will look in vain for general sympathy in any distress which the great European war may force upon them. War is not like any other disturbing influence. Neither its duration nor its consequences can be gauged. Under such abnormal conditions no one may say what will be the position of Canadian railways even in the near future. Everything depends on what happens in Europe." CHAPTER XIII. RAILWAY MAIL SERVICE. At the time our first railroads were opened, the mail was carried on horseback, by sulkies, stages, four-horse post-coaches, packets and steamboats. As the cities which could be served by steamboats were few in num- ber, the expedition that could be given the mail was measured by the speed and endurance of the horse. In favorable weather, when the roads were in good condi- tion, mails were carried with fair dispatch, and delivered promptly at the appointed time. During a portion of the year 1833 the express mail was carried from Philadelphia to New York, a distance of ninety miles, in six hours, at an average speed of fifteen miles per hour. But this, of course, was an extraordinary performance and was only warranted by the disturbed and excited condition of public affairs that then prevailed. This presents one extreme. The other shows the all but impassable roads of the wet seasons, the heavy stages and post-coaches scarcely moving, often down to their very axles in the mud, at the rate of three or four miles per hour. Railways at First Unreliable. Such being the condition of affairs, it would naturally be supposed that the mail would have been wholly trans- ferred to the railways as soon as the latter began opera- 155 156 RAILWAY MAIL SERVICE. tions. But such was not the case. For several vears the railways seem to have been no more expeditious or reliable than the post-riders, stages, and post-coaches. As late as the year 1835, or six years after the success- ful trial of the "Stourbridge Lion" at Honesdale, the postmaster-general threatened to remove the mails from several of the leading railways unless they were for- warded with greater expedition and certainty. Two Early Speed Contests. This threat to remand the mail back to the stages may seem strange in view of the records made in the two famous prize contests of Great Britain and the United States. As early as October, 1829, in the great Rainhill competition, brought about by the Liverpool & Man- chester Railway, Stephenson, with the "Rocket," is said to have attained a speed of twenty-nine miles per hour. This record was soon equaled in our own country. Dur- ing the summer of 1831 there was a contest just outside of Baltimore for the prize offered by the Baltimore & Ohio Railroad. One of the contesting locomotives, "The York," built by Phineas Davis, of York, Pa., was found capable of running a short distance on a straight and level stretch of track at the rate of thirty miles per hour. Speed of Best Modern Trains. The best locomotives now manufactured can attain and hold a speed for a short distance of certainly 90, and perhaps even 110, miles per hour, but the average running-speed of our fastest trains falls far short of even the lower of these figures. The running-speed of RAILWAY MAIL SERVICE. 157 the fastest regular trains of the United States — and, it might be added, of the world, — namely, those between Atlantic City and Camden, is 66.8 miles per hour. This run is, of course, only a dash, the distance by the longer route being but 59 miles, with no stops between the termini. The running-speed of the Empire State Ex- press on its journey of 440 miles from New York to Buffalo, deducting 8 minutes for the four station stops it makes, is 54.2 miles per hour, while the running-speed of the Northwestern and Burlington fast mail trains on their journey of 490 miles from Chicago to Council Bluffs, allowing 35 minutes for thirteen station stops, is 51 miles per hour. When Horse Defeated Engine. It was not until the first railways had been in opera- tion for several years that the locomotive fully estab- lished its superiority over the horse in point of speed and reliability. Shortly after the opening of the first section of the Baltimore & Ohio Railway to Ellicott's Mills, in the summer of 1830, Peter Cooper, running the "Tom Thumb," a locomotive of his own construc- tion, was distanced by a powerful gray horse drawing a car, which, by this victory, became famous and later played a conspicuous role in the public prints and early books on travel. Of course, Cooper's discomfiture was due to an accident, the slipping of the belt that operated the blower. This, however, only emphasizes the point that the locomotive could not at that time be counted on for regular performances. In this contest Stockton & Stokes, the owners of the horse, undoubtedly did their best, for they were the great stage-owners of that day 158 RAILWAY MAIL SERVICE. and were determined not to let their mail contracts slip away from them without a supreme effort to retain them. First of Special Mail Service. On November 24th, 1837, it was ordered by the post- master-general that one Hutchinson be offered $350 for the conveyance of the president's message, on the first Tuesday in December, by express mail from Wash- ington to New York. This mail was to leave Washing- ton at noon and reach New York at 4 a. m. the next day. As the distance was about 230 miles, the average speed stipulated was a little less than 14% miles per hour. On December 12th, 1838, the postmaster-general approved the arrangement of the postmaster at Phila- delphia for carrying the president's message by special mail on the railroad from Philadelphia to New York in five hours for $500. In 1833 the mail was carried between these cities by the post-riders in six hours. As late as 1839 the mail trains on the South Carolina Railroad averaged less than 11 miles per hour in run- ning from Charleston to Hamburg, a distance of 138 miles. Roads Had No Connecting Schedules. The running schedules of the railways in those days seem to have been drawn up with the idea of making the breaks in travel as frequent and as long as possible. The traveler from Washington to New York, on arriv- ing at Baltimore, would be likely to find that the train for Philadelphia had just departed, and on arriving at RAILWAY MAIL SERVICE. 159 Philadelphia he would be likely to find that the train for New York had just gone. Movement of trains dur- ing the night hours was very limited, and on almost all railroads was wholly suspended. As late as October, 1841, some of the railways refused to adopt schedules urged by the postmaster-general which would have very materially expedited the mail between Boston and Charleston, because they called for night running. Shortly before this, one railway offered to carry the mail with night service at $300 per mile per year, and for $200 if the department would so arrange the schedules that the running would fall en- tirely between sunrise and sunset. First of Real Mail Service. By 1850 a few railways for the accommodation of through mail and passengers ran trains at 25 miles per hour. While this would not now be looked upon as rapid running, it represented a material improvement, and was fast enough to win the traffic for the railways. In 1860 the postmaster-general reported that an experi- ment was made with a night mail between New York and Boston. The time between these two cities was reduced to nine hours. The distance being about 230 miles, the average speed maintained was but little more than 25 miles per hour. The service between New York and Washington was not so satisfactory as that between New York and Boston. Twenty miles per hour seems to have been all the department could secure from the railways forming the New York- Washington route. 160 RAILWAY MAIL SERVICE. Old System of Handling Mail. The method of handling the mail in existence anterior to the introduction of the railway postoffices was built up about what were known as distributing postoffices. From the earliest days until the introduction of the rail- way postoffices, the great problem which constantly vexed the postoffice officials was the sorting and pouch- ing of the mails. Before the mail can be started on its journey, it must be pouched. Now, obviously, there cannot be so many pouches as there are places for which the mail is destined, because, among other reasons, the weight of the pouches would be so many times the weight of the mail that the means of transportation would be broken down. In many cases there would be a pouch for one letter. Under such a system the aggregate gross revenues of the Postoffice Department for many years would not suffice to pay for the pouches. That these statements are true becomes apparent on a moment's reflection on the final destination of the enor- mous number of pieces of mail sent out every day from the Chicago and New York postoffices. The Distributing Office System. As the tide of emigration spread over the Mississippi Valley, and the number of postoffices multiplied, dis- tribution became more and more difficult. Direct pouching, from each office to every other office for which there was any mail, became more and more impossible, because of the number of pouches that would be re- quired. To keep down the number of bags the mail was now sent to the distributing postoffices from all RAILWAY MAIL SERVICE. 161 the offices in the territory of which this office was the center. Here the whole mass was sorted and pouched, and then shipped to the various distributing offices scattered about the country, each one of which acted as a distributing center and made up and forwarded the mail to the smaller offices grouped about it. Abuses In the Old System. The emoluments derived by the postmaster at dis- tributing offices consisted of a commission on the letters distributed. Originally, the commission was 5 per cent on letter postage, paid and unpaid. This was after- ward increased by law to 7, and later to 12% per cent. It was thus obviously the interest of the postmasters of these offices to increase their distributing business to the utmost ; and, though expressly forbidden by the depart- ment to invite mail from its legitimate channel, this was nevertheless often done. Letters were frequently sub- jected to so many distributions that the postage paid on them was entirely eaten up. In some cases the com- missions of the postmaster greatly exceeded the entire proceeds of his office, and a balance had to be paid him from outside sources. The Work of Reform Begun. In 1851 and 1852 the postmaster-general made a strenuous effort to correct these evils and abuses. He framed regulations designed to cut off unnecessary dis- tribution, with its train of evils, and even went so far as to remove summarily several conspicuous post- masters for violating his instructions. The work begun by Postmaster-General Hall was carried on with vigor I.B.L. V»l. 8—11 162 RAILWAY MAIL SERVICE. by Judge Campbell, who became postmaster-general in 1853. He caused copies of the distributing schemes used in the distributing offices, which were then about fifty in number, to be sent to Washington for examina- tion. Railway Postoffices Suggested. Mr. Henry A. Burr, the topographer of the depart- ment, to whom they were referred, found nearly all of them grossly defective and productive of unnecessary distribution, with its attendant delays and expense. By direction of the postmaster-general, Mr. Burr prepared new schemes, but in submitting them he expressed the opinion that, so long as the mails were stopped in tran ; sit for separation, no scheme of distribution could be devised which would give dispatch, or prevent passen- gers and express matter from outstripping the mail. The only effective remedy was the abrogation of the distributing postoffices and the transfer of the work of separation to "over the car wheels," as he expressed it. But the force of progress was yet too feeble to take this radical step. Abolition of Distributing Offices Begun. In 1857 another step forward was taken. In this year the number of cities to which there was direct mail- ing was greatly enlarged, and on the trunk lines the mails were placed in charge of what were known as "express agents," who went with the mail and saw that the pouches were properly transferred at junction points. This practice very largely reduced the quan- tity of mail that had to percolate through the distribut- RAILWAY MAIL SERVICE. 163 ing postoffices, and, so far as it extended, prevented passengers and express matter from making better con- nections and thus outstripping the mail. Direct mailing proved successful; it was so far extended by 1859 that thirteen of the fifty distributing offices were found un- necessary and were accordingly abolished. Start of the Present System. In July, 1861, the overland mails began to be carried over the Hannibal & St. Joseph Railroad, this being the first railway to reach the Missouri River. The railroad being new, and the demands upon it being very heavy, the trains were always late. St. Joseph being the most important distributing office in the West, an immense amount of mail arrived there every morning by the railway. The overland stages were scheduled to leave three hours after the train was due. All of this time was required for the distribution of the mail, so when the trains were late, the stages, which seem to have run with greater regularity than the trains, left with only a part or without any of the mail. An in- definite continuance of this state of affairs was not viewed with equanimity by Mr. William A. Davis, who had charge of the distribution of mail at St. Joseph. What Mr. Davis Suggested. The remedy proposed by Mr. Davis was to have the overland mail all ready for the stages when the train arrived. If this were done, the mail would not miss the stage, even though the train was full three hours late and the stage started promptly. To save this three hours he urged the postmaster at St. Joseph, and 164 RAILWAY MAIL SERVICE. through him the officials at Washington, to be allowed to meet the mail on its arrival at the eastern terminus of the railroad at West Quincy and separate the mail as the train proceeded on its journey across the State of Missouri. His requests were granted, and he seems to have lost no time in putting his plans into execution. The First Railway Postoffice. On August 5, 1862, he wrote the second assistant postmaster-general a brief account of his experiment. He said: "One of the clerks and myself left here on Saturday, 26th, so as to be in Quincy on Monday, 28th ultimo, to commence the distribution of the overland mail on the Hannibal & Saint Joseph Railroad. Finding that the mail cars had not been arranged according to prom- ise made instead of going to Quincy I proceeded to Hannibal, and succeeded in getting cars temporarily fixed, in which (though with some incon- venience) I think the work can be done until the new cars are readv. The distribution was commenced on Monday at Palmyra, and I assisted the clerk, going up as far as Clarence, at which place I turned back with the clerk who had come down to go up on Tuesday ; assisted up to the same point on Tuesday; turned back and dis- tributed the mail going up on Wednesday myself. We have now got through with a week's service, and can confidently report that when the accommodations are finished that are promised by Mr. Hayward, superin- tendent of the road, the distribution can be done entirely to your satisfaction." RAILWAY MAIL SERVICE. 165 Improvements Under Supt. Bangs. The next important advance in the railway mail serv- ice was made in 1875, and the credit for it belongs to Col. George S. Bangs, who was then superintendent. Up to the time Mr. Bangs became general superin- tendent of the railway mail service, the officials of the Postoffice Department aimed no higher than to secure for the mail as great expedition as passengers could obtain for themselves. Mr. Bangs was not content with this program. He hoped to obtain greater dispatch for the mail. The mail business had always been looked upon as an adjunct of the passenger business. Mr. Bangs hoped to secure exclusive mail trains, the depar- ture and arrival of which should be timed to suit the wants of the Postoffice Department. First of Special Mail Trains. In 1874 he presented his views to Postmaster- General Jewell, by whom they were favorably received, and he was authorized to open negotiations with the New York Central & Hudson River and the Lake Shore & Michi- gan Southern Railroads for a fast mail service between New York and Chicago. It was the old story of making bricks without straw. The Postoffice Department had no appropriation to pay for such facilities, hence it had to depend at first on the public spirit of the railroad authorities. Commodore Vanderbilt, the president of the companies whose lines were to be used, had had dealings with the Department, and was perhaps not altogether sanguine as to the prac- tical issue of the experiment, or in respect to the coun- tenance it would receive from Congress; but Mr. 166 RAILWAY MAIL SERVICE. William H. Vanderbilt, the vice president, lent a will- ing ear to Mr. Bangs' proposition, and did his utmost to aid him in putting it into effect. Commodore Vanderbilt a Prophet. Colonel Bangs stipulated that if Mr. Vanderbilt would have twenty cars built and the service performed, all matter originating at, or coming into, the New York postoffice, which could reach its destination at the same time by this line, should be sent by this train, and that the railway companies could have the right to demand a weighing of the mail matter at will, all railroads being paid according to weight. When the details of the plan were communicated to Commodore Vanderbilt, he is reported to have said to his son, "If you want to do this, go ahead, but I know the Postoffice Department, and you will, too, within a year." Fulfilment of the Prophecy. Mr. Vanderbilt did go ahead. He constructed and equipped the finest mail train ever seen * * * ran it for ten months, never missed a connection at Chicago, and was always on time at New York. He did not have to wait a year, however, for a realization of the sagacious old Commodore's prophecy. Within three weeks, despite the indignant protest of Colonel Bangs, the mails of three States were ordered to be taken from this and given to another route. This was denounced as a gross and wanton breach of plighted faith, and its results were far-reaching and disastrous. RAILWAY MAIL SERVICE. 167 Mr. Vanderbilt Withdraws Train. The Pennsylvania Railroad, not to be outdone by its rival, also established a fast mail service, and thus there was a double service between New York and Chicago, and the outlook was bright for even wider extensions of the fast mail service, when Congress, in spite of the efforts of the Postoffice Department, passed an act reducing by 10 per cent the compensation to the trunk lines for carrying mail. Very shortly after this act was passed the postmaster-general received a letter from W. H. Vanderbilt which, after reciting the conditions and circumstances under which the fast mail was inaugurated, closed as follows: "Congress, by its re- cent action, has expressed an unwillingness to provide suitable compensation for the service, and I am there- fore obliged to notify you that the fast mail train be- tween New York and Chicago will be discontinued on the roads I have the honor to represent, after Saturday, July 22, 1876." Pennsylvania Road Abandons Service. Mr. Thomas A. Scott, on behalf of the Pennsylvania Railroad Co., sent in a similar communication on Julv 15th. The Postoffice Department being unable to offer any relief, the fast mail service, which began so auspi- ciously on September 16, 1875, came to an end July 22, 1876. Colonel Bangs was greatly disappointed at this abrupt undoing of all his labors, and worn out by never- ending toil and disheartened by the action of Congress, he tendered his resignation and insisted on its accept- ance. 168 RAILWAY MAIL SERVICE. Though then in operation less than ten months, the fast mail trains had been in existence long enough to establish themselves firmly in the esteem of the business world. They ran between New York and Chicago in twenty-six hours, making connections at all important junctions with trains to and from a vast territory, and thus advanced the mail by twelve, twenty-four, even forty-eight hours for some sections of the country. The fast mail on the New York Central and the Lake Shore never missed a single connection, and was late at Chi- cago only three times, and at New York just once. Service Is Finally Restored. As may be easily imagined, the discontinuance of this admirable service caused a great deal of dissatisfaction and unfavorable comment. In the following year an effort was made in Congress to restore the service, and an appropriation of $150,000 was secured on March 3, 1877. This money was to be paid for expedited service, and became known as "special facility pay." With this appropriation the department was en- abled to restore the fast mail trains. In 1884 several more fast mail trains were secured in other parts of the country without the use of special funds, and since the latter year the service has been so widely extended that there is now scarcely an important mail route in the country that does not have at least one fast mail train leaving at the time and run at such speed as will best meet the needs of the Postoffice Department. RAILWAY MAIL SERVICE. 169 Modern Railway Mail Service. From a place in which there was no separation of the mail, the car has become the place in which nearly the whole of the work of separation is performed. The mail is now sent from the stationary postoffices with the least possible separation. Broadly speaking, the mail is dis- tributed for trains rather than for cities. This allows the mails to be kept open at the central office until almost train time, and greatly economizes both space and labor in the central office. The through mails, for the most part, do not even pass through the terminal post- office. Unless the interval between their arrival and departure is a very long one, they are transferred directly from one station to another. Mr. E. L. West, one of the division superintendents of the railway mail service, says that not more than five per cent of the mail passing through Chicago is taken to the central office, the other 95 per cent being transferred directly from one train to another. All In-Coming Mail Is Sorted. Although the mail is always received from the city postoffices undistributed, it is never sent to them from the railway postoffices in this condition if this would involve any delay in ultimate delivery. On the arrival in Chicago of the morning mail trains the letter mail for the business portion of the city is ready for the car- riers, and the letters for the remainder of the city are sorted and are ready to go at once to their respective stations. The postmaster-general recently said: "It is the intention eventually to absorb all the work of city 170 RAILWAY MAIL SERVICE. distribution into the railway mail service whenever the mails can be expedited thereby." The ideal railway mail service of Colonel Bangs is now a reality. On nearly every railroad in the United States mail is the favored traffic. It goes on the fastest trains, and has the right of way; no mail is ever left behind, the railways always furnishing sufficient car space regardless of the suddenness of the demand that may be made; these cars are furnished with the best appliances that art and science afford ; and the railroad employees give the mail their first attention on arrival of trains. The gross revenue of the railroads of the United States from the transportation of the mails in 1915 ap- proximated to sum of $55,000,000. * DISTRICTS ALL TRAINS Cars and Contbnts Contents Gross Tons One Mile Average Tons per train Net Tons One Mile Average Tons per Train This Week Same week last yeal Same week last month 2 3 NEBRASKA DIVISION. Council Bluffs-Grand Island, Grand Island-North Platte, 22,104,216 20,859.713 1.744 1.879 10.216.578 10.141.462 807 913 452 578 558 632 1 2 3 4 Total Main Line 42,963,929 1.807 20.358.040 857 508 592 4 ■5 6 7 S Branches South of Valley, Branches North of Columbus, Branches North of Gr'd Island, Kearney Branch, 1.838,719 636,169 383.993 236,596 490 329 221 254 776.695 181.729 89.235 50,325 207 94 51 64 264 130 70 88 225 98 52 94 5 C 7 8 g Total Branches. 3-.095.477 371 1.097.984 131 183 145 10 11 Total Nebraska Division, Same Last Year 46.059.406 55.676.999 1.434 1.014 21,456.024 24.688,974 668 450 486 674 829 707 731 10 11 12 13 14 IS 18 WYOMING DIVISION North Platte-Sidney. Sidney-Cheyenne, Cheyenne- Laramie. Laramie- Rawlins, 17,328,794 13,099,156 9,287,$18 16,934.404 2.011 2,094 1,575 1.491 8.817.520 7.074.931 4,753,292 8,751,076 1.023 1.131 806 771 698 718 680 563 12 13 14 15 16 17 IS Tdlal Main Line. North Platte Branch 66,649,672 77,350 1,764 328 29,396.819 18.422 916 78 655 729 102 17 18 19 20 Total Wyoming Division. Same Last Year, 56,727,022 68,848,149 1.753 1,293 29,415.241 34.883.854 909 655 727 19 20 21 22 23 24 UTAH DIVISION Rawlins-Green River. Green River-Evanston, Evanston-Ogden 19,333,731 10.288,244 6.625.543 1.560 1.309 1.681 9.899.542 4,578.048 2.938.822 799 582 746 475 409 568 694 520 586 21 22 23 24 25 Total Main Line . 36.247.518 1.499 17,416.412 720 467 620 25 28 27 Superior Branch Park City Branch, 163,060 68,264 1.274 132 90,196 28.638 705 55 284 172 643 75 20 27 28 Total Branches. 231,324 358 118.834 184 197 IS8 28 "9 .0 Total Utah Division. Same Last Year. 36.478.842 50.875.091 1.469 962 17,535.246 24,539,693 706 464 611 29 30 31 32 33 KANSAS .DIVISION. Kansas City Junction City. Junction CHy-Ellis, 8,236,098 5,942.151 1.089 928 3.275.172 2.424.955 433 379 389 341 406 407 31 32 33 34 Total Mam Line 14,178,249 1.016 5.700.127 408 366 407 52 86 349 64 40 111 62 162 34 35 a 37 38 39 40 41 42 .Leavenworth Branch. Topeka Branch, Manhattan Branch. Junction City Branch. Enterprise Branch, Solomon Branch, McPherson Branch, Plainville Branch. 56,776 75.622 1.110,079 312,384 1.832 350,849 106,139 688,166 119 225 844 237" ' 92 440 217 477 18.671 16,810 516,810 83.ZUO 297 129.456 27,904 239,824 39 50 393 oa 15 162 57 166 40 47 357 a* 160 74 14b 35 30 37 38 39 4f) 41 42 43 Total Branches, 2.701,847 436 1,032.977 167 191 163 331 298 373 487 307 43 44 45 Total Kansas Division, Same Last Year, 16.880,096 20.816,738 .837 738 6,733.104 8,914,349 334 316 44 45 40 47 48 49 60 COLORADO DIVISION. Ellis-Cheyenne-Wells. Cheyenne Wells Denver. Cheyenne- Denver. J ulesburg-Denver 3,936,672 4.693,244 4.826,050 4,149.176 746 816 1.131 1,038 1.668,105 2.136.255 2.408,081 1,531,215 316 371 566 383 297 390 520 373 393 46 47 19 SO 51 Total Main Line, 17,605.142 912 7,743.656 401 363 51 52 63 Colby Branch, Boulder Branch. (Inc. St V rains Branch), 256.227 133,640 300 245 78,293 57,395 92 105 80 113 95 139 52 53 54 Total Branches, 389,867 279 135.688 97 87 112 54 65 56 TotalColorado Division, Same Last Year. 17,995,009 23,129,862 870 751 7.879,344 11.4)8,936 381 371 348 M 56 57 86 Total Main Line. Total Branches, 167.644,510 6,495,865 1.479 386 80.615,054 2.403.905 712 143 505 176 576 160 57 58 00 Grand Total. Same Last Year, 174.140.375 219J46.839 1.337 997 83.018,959 104.445,806 638 475 526 59 00 How Weekly Account of Tonnage Handled is Kept by Railroads. How Comparative Accounts of Operations Are Kept on the Union Pacific and Oregon Short Line. UNION PACIFIC R. R. MONTHS ENDING MONTHS ENDING * NC. OH DEC. OREGON SHORT UNE MONTHS ENDING MONTHS ENDINO % INC. OR DEC. AVERAGE MILES OPERATED GftOSS EARNINGS OPERATING EXPENSES NET EARNINGS OPER. EXP.-MAINTENANCE OF WAV OPER. EXP.— MAINTENANCE OF EQUIPMENT ope * Ekr.- T*apeic Expenses OPER. EXP.— CONDUCTING TRANSPORTATION OPER. EXP. -GENERAL EXPENSES RATIO EXPENSES TO EARNINGS FREIGHT TRAIN MILEAGE FREIGHT ENGINES PER TRAIN 'FREIGHT TON MILEAGE FREIGHT-* REV. TO GROSS TON MILEAOE* FREIGHT RATE-COMMERCIAL (CTS.) FREIGHT TRAFFIC UNBALANCED FREIGHT CAR MILES PER CAR PEG OAY FREIGHT— TONS PER LOADED CAR FREIGHT- TONS PER TRAIN FREIGHT EARNINGS PER TRAIN MILE PASSENGER TRAIN MILES PASSENGER ENGINES PER TRAIN PASSENGER ONE MILE INC. SUBURBAN PASSENGER RATE (CTS.) PASSENGER AVERAGE NO. PER TRAIN PASSENGER EARNINGS PER TRAIN MILE MILEAGE AA/D PEIf O'CM SAiAIVCt: CAR Ill fIC A NO RO I TAL O P EQU IPM EN T MILES PER FREIGHT LOCOMOTIVE* GROSS TON MILES PER LB, COAL* GROSS EARNINGS— WATER LINES OPERATING EXPENSES— WATER LINES NET EARNINGS-WATER LINES Lo-lS A\fJD 0.A/HAC£ - P~*£lB»Tl Viw*» coyu fltm. MA'a aunt By this system it is easy to tell at a glance how the business of the roads compares for stated periods. It is a condensed history of the entire business, prepared from the extended reports of each depart- ment. *fH a ■a 1 i a \ 5 ' ft © * I >3 M 8 R 5 tf ; •0 1 5" 3 * « •r * o & % 3 e*T <• " 1 3 S X 1 1 ? 5 1 * « 3 - !T * tf tf CO •A |C ^ A 4 < " ' tf •r * •a a ■1 i rf 5 . 1 rf 1 rf * * t - ?HJ «o ■* « S m " i t. £ 8 ' f 1 ■a o ^3 O t ■•£ S "■ » I ? = * 1 1 f J S 1 B 5 * j; 8. •r. t- J! eo -. * t*. 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CO rt 4-» CO V > • •-I ■■-> rt 1-. rd CU B o "This land is utterly worthless for any present pur- pose, not because it is not fertile, but from the fact that it is inaccessible, wanting all facilities for reaching a market. Now, by constructing this road through the prairie, through the center of the state of Illinois, you will bring millions of acres of land immediately into the market that will otherwise remain for years and years unsalable." — The Hon. Henry Clay, urging the con- struction of the Illinois Central Railroad. CHAPTER XIV. TRANSPORTATION BY EXPRESS. While not directly controlled or managed by railroad or steamship companies, the express service is one of the most important features of modern transportation. It has increased in magnitude despite the wonderful improvements which have been made in the freight service, much of the latter being now better than the express of forty years ago. Instead of this improve- ment in the freight service having the effect of minimiz- ing or retarding the express business, however, it has apparently exerted an entirely opposite influence. First of Express Business. William Harnden was the first person to engage in the express business in the United States. This was in 1839, when he established a regular service between New York and Boston. His agents traveled in the ordi- nary passenger cars, carrying with them packages of goods for which the shippers desired speedier and more certain transit than the pioneer freight service afforded. Prior to this, conductors and baggage agents had carried a lot of packages on their trains, leaving them with station agents to be called for by the parties to whom they were addressed. It was an unorganized traffic, conducted solely as a matter of accommodation. There was no fixed schedule of charges, no receipts were given and, if a package were lost or stolen, the sender had no redress. 175 176 TRANSPORTATION BY EXPRESS. Organization of Big Companies. Harnden inaugurated a systematic, regular service between New York and Boston, then between New York and Philadelphia, and finally to a few of the principal European ports. He had competitors almost from the start. In 1840 Alvin Adams invaded the New England field, and shortly afterwards Thompson & Co., Kinsley & Co., and several other concerns were also in the field. In 1850 the American Express Company was founded by the consolidation of the Livingston and the Wells companies. In 1852 Wells, Fargo & Co. started an overland route to the Pacific coast, and in 1854 Harnden & Co., Adams & Co., Thompson & Co., and Kinsley & Co. united under the name of the Adams Express Company. It was in the same year — 1854 — that the United States Express Company came into existence, its field being in the central West. Business Keeps on Growing. These, with the National Express Company, founded in 1853, monopolized the express service of the country until 1879, when the Pacific Express Company invaded the Southwestern section. In 1886 the Southern Ex- press Company was incorporated and took over the Southern States. Since then, until the advent of the Parcel Post, there has been little change in the business, the companies yearly growing larger and stronger as the lines of rail- way on which they operate expand. As each company has exclusive contracts with the railroads over which TRANSPORTATION BY EXPRESS. 17? it operates, there is little or no chance for competition on way business, except as two lines of road may paral- lel one another. [See pages 185-186.] Eight Large American Companies. Ostensibly the express companies and those oper- ating railway and steamship lines are separate and dis- tinct organizations, but in many instances the same financial interests are prominent in both. This has worked to the benefit of the express companies by as- suring permanency in their business relations with the transportation lines. There are now eight companies engaged in the busi- ness of forwarding goods and valuables by express. They are the Adams, American, National, Northern, Western, Southern, Great Northern and Wells-Fargo. Each has its well-defined territory, and there is a con- cert of action among them which prevents harmful com- petition even at the big competitive points. Several companies, for instance, have entrance to New York over different lines of railroad, but the rate for shipping goods from a given point to New York is the same in all instances. General Terms of Contract. Contracts made between express companies and rail- roads (or steamship lines) stipulate that the express company is to have the exclusive right to handle all the express business conducted over the transportation line. In most instances the cars are furnished by the rail- roads, and in a few by the express companies, in which latter case there is a mileage allowance. The express I.B.I,. Vol. 8 — 12 178 TRANSPORTATION BY EXPRESS. company collects and delivers, handles, loads and un- loads all goods, and assumes all risk of loss or damage, except such as may be caused by the carelessness or negligence of the railroad. The railroad hauls the express cars on its express, passenger or special trains, so as to assure a fair mini- mum rate of speed. In return for this service the ex- press company pays the railroad from forty to fifty per cent, of the gross receipts, binding itself to make its rates from fifty to one hundred and fifty per cent, higher than would be charged by the railroad for trans- porting the same goods as freight. Main Source of Revenue. Express companies will accept anything, from a dia* mond to an elephant, for shipment, but as a general rule their business is largely confined to the transportation of packages. There are certain grades of goods in the handling of which speed is the main essential. The best average speed of fast freight trains is not over fifteen miles an hour, while express trains move at from thirty to forty miles. The shipper who is sending small quan- tities of goods and wants them to land at their destina- tion as speedily as possible naturally forwards them by express, regardless of the increased charges. John Brown, in Chicago, wants to send a suit of clothes to Thomas Jones, in New York, in a hurry. He delivers the package to an express company. Twenty- four hours later it is in New York, and within twenty- six hours it is delivered at Jones' address. Cost, 50 cents. If it was sent by freight, it would take the bet- ter part of a week, and then on arriving in New York TRANSPORTATION BY EXPRESS. 179 would remain in the freight house until Jones called for it. Means of Transporting Valuables. All shipments of actual money, both specie and cur- rency, as well as of valuables like diamonds and jew- elry, are made by express. The carriage charges are based on the value of the package as declared by the shipper, and in event of loss, settlement is made on the same basis. The practice of undervaluing goods sent by express, so as to secure a low rate, is both dangerous and illegal. A certain broker once sent from New York to New Orleans a package which he declared contained $1,000 in currency, and paid for the carriage of $1,000. The money disappeared in transit, and the shipper brought suit against the express company for $20,000, the amount which he swore the package really contained. In this he was corroborated by the teller of the bank where he had obtained the money, and who was with him when it was delivered to the express company. Charges Based on Risk Taken. All the courts in succession ruled against the recov- ery by the broker of more than $1,000, on the ground that the responsibility of the express company was lim- ited by the broker's original declaration, and that its charge was based on that declaration. In fixing upon the charge for the transmission of valuables, the risk assumed by the company is a factor. All ordinary packages are presumed to have a value of not exceeding $50, and the schedule of carriage charges 180 TRANSPORTATION BY EXPRESS. is made upon this basis. Occasionally a shipper is really ignorant as to the value of his package, and in response to the inquiry of the receiving clerk, will say, "I don't know." In such case the receipt will be made out to read, "Value asked, but not given." If such a package is lost, the shipper is limited to the actual value of the contents, which must not exceed $50. If he had given the value at $100, he would have been charged more for the transportation of the package, and in event of loss the company would have been responsible up to $100, provided it could be shown that the contents were actually worth that amount. Loss Limited to Actual Value. But the mere fact that a shipper puts a fictitious value on a package and pays carriage charges on such fictitious value does not entitle him to recover in case of loss. He must prove beyond question that the pack- age actually contained the amount of money or valu- ables as declared when the shipment was made. For the courts to hold otherwise would be to place a pre- mium on rascality. Valuable packages are received only when sealed, and consequently the agents of the express company have no means of knowing what their contents are. In instances of this kind the receipts are marked "Said to contain ." A certain bank official, whom we will call B., was behind in his accounts, and in expressing $15,000 to an- other bank put up a dummy package, receiving from the express company a receipt reading, "Said to con- tain $15,000." The package was stolen en route by an express messenger, who buried it without opening TRANSPORTATION BY EXPRESS. 181 it. The shipper made demand for the money, and the express company was about to settle, when the mes- senger, who was under surveillance all the time, was detected in the act of unearthing his booty. When the package was opened it was found to contain nothing but newspaper cut to the size of bank notes. B. blew his brains out. Why Courts Are Careful. But suppose the messenger had not stolen the pack- age en route, how would B. have benefited by his trick- ery? His plan evidently was to claim substitution of the bogus for the real package by somebody in the employ of the express company. If he could make it appear that he had sent $15,000 out of the bank, his accounts would be all right, and he was willing to put somebody else under suspicion to clear himself. Tricks of this kind were not uncommon in the early days of the express business, and even up to the early 80's. It was the boldness with which some of them were worked that led to the "Said to contain" form of receipt, and also the practice of the courts in making it obligatory, in. case of loss, for the shipper to prove the value of his shipment. Importance of C. 0. D. Business. It is probably in the transaction of the C. O. D. or "Cash on delivery" business that the express service has its most important field. It used to be impossible to transact a C. O. D. trade without the express compa- nies to act as trustees in forwarding the goods and col- lecting and returning the money to the shippers. There 182 TRANSPORTATION BY EXPRESS. are thousands of firms scattered all over the country which do business solely on this basis. One Chicago firm fills C. O. D. orders by express to the amount of $250,000 weekly. There are many other concerns in Chicago doing the same kind of business, and they thrive in everv lame citv. mm ftftB m$\ mm 1**111* |lfl|I tlUilli POSTMASTER If not dolWerad In 10 day* rotom to AUDITOR PACIFIC EXPRESS CO. PACIFIC EXPRESS BUILDING 203) and Clark Ave. ST. LQUiS»f&. M. C. HENLEY, JIANUFACTUBER, RICHMOND, IND. AWTtlEU AT. Face of C. O. D. Envelope. Sb^S^wU^SSSS pacific express company ! li * I • t ■ 2 sii lis C. O. D. Amount of Invoice, • - J Chgs. for Return of Money, S . Total to be Collected, - S . REMARKS & £3- ttpnrtnd!. £-/{-/* jet ik. HMtL ^ r Strwt Reverse of C. O. D. Envelope. H 3 B d ■I * = »* l*m If it were possible to abolish the express business, and the Parcel Post, the C. O. D. trade would die out, because there would be no means of establishing the TRANSPORTATION BY EXPRESS. 183 relationship of trustee between buyer and seller — some- body to act in the capacity of stakeholder, as it were. How C, 0. D. Plan Works. The Banner Company, Chicago, advertise to sell a first-class watch for $10. Nels Nelson, living in Minne- sota, wants the watch, but he doesn't know the Banner Company, and is averse to intrusting his $10 to stran- 190. M to The Pacsfic Express Co., or. For Freight on from ■ 3 Q Entered at port of day of (Importer's signature.) When goods are consigned to the interior of the United States — that is, to cities or towns which are not ports of entry, they can be sent from the port of ship- ment to the port of entry, and then forwarded in bond to the point of destination. The invoice, bill of lading, and other papers are sent to the custom-house broker at a port of arrival where the custom-house entries are made and the goods trans-shipped. The bill of lading WORK OF THE CUSTOM HOUSE. 343 -," wherever the destina- should read, "In bond to — tion may be. Examination of Imported Goods, When the goods are discharged from the vessel, they are sent to what is known as the United States ap- praiser's stores for examination. Here the examiners Entry for Warehouse. Custom-House, , Port of -, . Entry for warehouse of merchandise imported by in the -, master, from on the — day of , . 3 ueof age. Packages and contents. to > > TO (For specifications see ac- >» > u en J* u a 3 .a E 1 companying invoice.) c ro a u - — o > G t— i to • »— » 3 Q u •4-* to 3 P "to O Dutiabl Each (Signature of importer.) have the cases opened and compare the goods to see if they correspond with the invoices, and that the prices are correct. Should the appraiser deem the goods rated wrong, he returns the invoice to the collector's office, where the matter is adjusted, and notice of the addi- tional duty necessary is sent to the importer. Should the importer consider that he has been unfairly treated 344 WORK OF THE CUSTOM HOUSE. he has redress by formal protest to the board of govern- ment appraisers. If this board decides against him he can sue the collector and bring the matter before the United States Court. Entry Blank. Bond No. . District of Port of Entry of merchandise to be rewarehoused and withdrawn for immediate consumption by , which was brought into this dis- trict on the day of , , by from the port of inally imported into from on the -, on the (route or vessel), having been orig- - by , in the , day of *♦* lueo age. ci^i in Packages and Con- tents. >> a c C C r^ ,2 E -4-» c u u u <0 u V 03 .2"5 u rt i* I* i* L. u •4-J ■w rt rt 3 3 while the total horse-power of all the electric motors employed in transportation was 3,665,051. Passengers carried on the electric roads during the last year for which reports are available numbered 12,- 135,341,716, and the gross income of the operating com- panies amounted to $585,930,517. The companies paid dividends amounting to $51,650,117 and reported a sur- plus of $10,260,636. 353 354 ELECTRIC RAILWAYS. This enormous business has been developed since the year 1888, when the first electric motors propelling street cars in Richmond, Virginia, startled the people by the terrifying flashes at the overhead "collector" and from the motor brushes. The improvements made in the various elements were so rapid that soon the electric motors not only displaced horses as motive power, but also led to the extension of the field of city transporta- tion. Then there followed the development of many thousands of miles of interurban electric lines, which have brought the outlying farms close to the cities in al- most every locality east of the Mississippi River. This network is being steadily extended and will eventually cover the entire country as the density of population in- creases. The effect of the inter-communication so af- forded is incalculable, from both an economic and a so- ciological standpoint. It is interesting to know, in these days when so much is heard about the increased cost of living, that such ele- ments in our daily lives as are served by electricity have steadily decreased in cost and today we ride farther for a nickel and have more electric light illumination for less money than ever before. Equipment of Electric Railways. Many varied conditions confront electrical engineers when the question of equipping an electric railway arises for consideration. In general there are at least six dif- ferent classes of service for equipment at the present time, viz., city, interurban, elevated, subway, steam rail- way terminal electrification and main line railway elec- trification. ELECTRIC RAILWAYS. 355 The electrical equipment of city car service may be div'ded into two classes, viz., two and four-motor equip- ments ; of trucks, in general, there are three types, viz., single trucks, maximum-traction trucks, and double trucks. The number of combinations that can be made when applying power to the car with these elements is surprising. The proportion of the total car weight on the driving wheels largely determines the schedule pos- sibilities and the grade-climbing capacity of a car. With the single-truck, two-motor equipment, all the weight is on the driving wheels; so that this combina- tion would be ideal were it not for the fact that the de- mands of seating capacity and riding quality put limita- tions on the single-truck car that usually make it neces- sary to have double-truck equipments. With the double-truck car there are many complica- tions which arise when selecting a distribution of power for the driving axles. A selection which will give uni- form weights on the wheel treads will, of course, give the ideal car, for it will reduce wheel slippage to a minimum under all conditions. With a four-motor equipment and motors "inside hung" it is possible to secure the nearest approach to equalization of the weights on the wheel treads. In addition to the many combinations of motor mounting for a single car, there is trailer operation to consider and also the effect of these trailers on wheel slippage, both on level track and also on grades. An analysis of the weight distribution on single-motor cars indicates clearly the reason for usually selecting four- motor equipments when trailer operation is to be con- sidered. This analysis of weight distribution shows 356 ELECTRIC RAILWAYS. why, when the grades to be negotiated are more than five per cent it is the general practice to use four-motor equipments for double-truck cars. There are at least twelve to fifteen different combina- tions of mounting motors on the different types of trucks in general use. After the question of deciding how many motors are to be used on a car, the next factors to consider are how to get the greatest amount of work out of the motors per pound of weight, how to secure the motor that will use the least power, and at the same time to obtain an equipment at a price that will be justified by the results of these savings. Changes in Car Wheels and Control. Car wheels in city service have been for the most part of 33-inch diameter, but during the last few years there has been an increasing amount of interest exhibited re- garding 24-inch wheel equipments for city service. Motors that are particularly efficient and well con- structed have been designed for use with these equip- ments. Due to the decreased weight of the wheels and trucks as well as to the reduction in the weight of the motors, this subject has engaged active study. In addition to the weight savings there has also been an innovation in control which consists of a change in the standard motor circuit connections so that three running speeds are obtained. With this combination of control there is a considerable saving in power con- sumption. In some cases a saving of seven or eight per cent may be expected. It is necessary, however, in con- nection with this control to carefully analyze the service, ELECTRIC RAILWAYS. 357 for experience has shown that the heating is not equally divided among the four motors of the equipment. Interurban Railway Equipment. In the selection of interurban equipments the same considerations in regard to motor distribution apply as have been mentioned for city cars. Practically all equipments in this class of service employ four motors, and it is the usual practice for the motors to be inside- hung. There has not been a general adoption of field control for interurban work due to the fact that as a rule the stops, as compared with city service, are rel- atively infrequent and therefore the savings which can be made with city equipments are not so apparent in the interurban equipments. Interurban Roads and Carload Freight. Recently it has been found that a large number of interurban roads have practically reached the limit of their earning power, as they are securing all of the busi- ness which there is at the present time, and the only ad- ditional business which can come to them is through the natural increase of business due to the growth of the community. This has led the management of these properties to carefully consider and to estimate the cost of entering into the business of hauling car-load freight. As a result it would not be surprising if a large number of roads purchase electric locomotives in the near future in order to increase their earnings per mile of track. To select the motors for this service, it has usually been the practice to start with locomotives weighing approxi- mately 40 tons. Sometimes these units are of the regu- 358 ELECTRIC RAILWAYS. lar locomotive type and sometimes of the baggage-car type. These units as a rule are equipped with four 125-H.P. motors. On some roads this business has grown to such an extent that it is necessary to use 60-ton locomotives, which are usually equipped with four 225-H.P. motors. Electrification of Steam Roads. The question is often asked, When will our railroads be operated by electricity? In a recent lecture by Dr. Steinmetz, the electrical expert, the statement was made that there is more aggregate horse-power in electric motors operating cars and locomotives today than the aggregate horse-power capacity of all the steam pas- senger locomotives used for transportation in this coun- try. The day has not yet arrived when the universal electrification of our steam railroads can be economically accomplished, but the decreasing cost of power and the lower cost of electric equipment for rolling stock are gradually extending the field where the application of electricity to transportation is justified and will eventu- ally permit electricity to replace steam on all important railroad divisions. At present, said Mr. C. E. Eveleth, an expert engineer of the General Electric Company, in a lecture delivered in New York City, we are using electricity to accomplish results unattainable with steam engines, not- withstanding the magnificent results which the steam- engine designer has achieved with the Mallet locomo- tive, oil-fired boilers, and the use of superheated steam. Of all known agents electricity is the most convenient means of distributing power, and its application to ELECTRIC RAILWAYS. 359 transportation successfully overcomes widely differing conditions of limitation. On some railroad divisions about one-twentieth of the gross ton-mileage is used for hauling the coal to supply the steam locomotives with fuel ; on other sections, the speed on going up-grade is limited by the boiler capacity of the engines. The operation in descending these same grades is frequently hazardous, owing to the possibility of the loss of air for the air-brakes, or danger from overheated brake-shoes and wheel tires. Applying electric locomotives to these conditions, in many instances, eliminates entirely the freight tonnage required to haul fuel. The speed of freight trains up grade can be increased to the maximum safe or economic limit, and by the use of regeneration the electrical engineer can not only lessen the danger from failure of air for the brakes and the heating of tires and brake- shoes, but is also able actually to recover a material por- tion of the energy given up by a train descending a mountain and to utilize this power for ascending trains. Electric engineering can not only overcome the rail- roading difficulties incident to bad water in desert re- gions, but can also transport the suburbanite more quickly to his home. Other limiting conditions which can only be met by electric traction are the elimination of smoke, the bet- ter utilization of space in city terminals by the use of different track levels, the elimination of roundhouses, and turn-tables, and the saving of time required by steam locomotives while going for water and cleaning fires. 360 ELECTRIC RAILWAYS. Science of Electric Railroading. Electric railroading may be considered under two broad divisions, says Mr. Eveleth in an article based on the lecture referred to above. One may be called the "science" and the other the "art" of electric railroading. The "science" has to do with all the fundamental details which enter into the present development and includes the work of improvements and invention, which are necessary to broaden the field of electric traction. This includes developments in insulation, designs of gener- ating, transmission, conversion and rolling stock equip- ment parts, the solution of problems of current collec- tion, the mechanical structure of locomotives for high speeds, and the many elements which go to make up a successful and economical system of control for the electric power from the prime movers to the train wheels. There are thousands of men employed in the development of the science of electric railroading, and it is to these men that we shall be indebted for the final victories of the electrification of our railways. Art of Electric Railroading. The "art" of electric railroading includes the analysis of conditions and the selection and application of the available elements to a specific problem, as well as the operation and maintenance of the finished system. It is the problem of the electrical engineer to select and balance all the elements of power generation, trans- mission and consumption in such a manner as to deliver the required quality and quantity of transportation with the greatest reliability and the lowest cost. As set forth, the problem seems simple, but expe- ELECTRIC RAILWAYS. 361 rience has indicated that very different conclusions arc reached, both as to the methods which should be applied and the anticipated results. The problem is, in fact, extremely complex; so much so that it is almost impos- sible to retain in mind the many elements which must be simultaneously considered to reach a justifiable con- clusion. Frequently one sees results cited, which on analysis are found to disregard entirely elements of the greatest importance. A better comprehension of the situation can be ob- tained by outlining some of the elements which must be equated by the electric railroad engineer. We will as- sume that the problem as to schedules, train capacities, grades, etc., both for the present and the future, has been accurately set forth. For conditions requiring the use of motor-car trains and locomotive operation, there are available for consideration direct current and sin- gle-phase equipments or possibly single-phase for the motor cars and split-phase for the locomotives, with a further possibility of three-phase, if the problem in- volves the use of locomotives only. To reach the proper conclusion, every element from the prime movers to the train wheels must be considered. Considerations of Power Supply. In some sections of the country, in the Carolinas, Michigan, Montana, Washington, Oregon, and Cali- fornia, for instance, we find networks of power distri- bution which range from five hundred to two or three thousand miles of transmission circuits in each system. Generally in such localities, it is more economical for a railroad to buy than to manufacture its own power, since 362 ELECTRIC RAILWAYS. this requires less capital expenditure, and the power companies which have the benefit of the factor of diversi- fied load, can generally manufacture power for less cost. Where such conditions exist the frequency of the primary distribution is established by these systems. Where it is necessary for the railway to build its own power house, the question of frequency of current, with its bearing on the power already available in the terri- tory to be served and the demands of the particular rolling stock selected, must be carefully investigated. Comparisons must be made between single-phase and three-phase power generation, due weight being given to the elements of initial cost, efficiency, power-factor, and protective appliances. Some of the problems, such as the desirable size of power-house units, their overload capacity, etc., are common to all systems. Selection of Distribution System. The distribution system is the simplest element in the chain, and can generally be worked out on its economic merits, as regards the selection of voltage, size of con- ductors, and the character of installation to conform to the distance of transmissions and permissible line reg- ulations for the various systems. Secondary Distribution and Substations. The location and capacity of substations must be con- sidered jointly with the secondary power distributions to the trains. This involves the selection of voltage; the determination of the permissible potential drops; pro- vision for the mitigation of inductive interference with telephones and telegraphs for the single-phase and three-phase systems, or the consideration of the possi- ELECTRIC RAILWAYS. 363 bility of electrolytic difficulties in case of the direct cur- rent, both for normal operation and for conditions of short circuits; the selection of third rail or overhead trolley; the effect of atmospheric conditions such as lightning, snow and sleet ; examination of the reliability of the elements chosen, and decisions regarding the amount of line to be incapacitated when local repairs must be made. The selection of substation apparatus will be different for each system and will further vary with the frequency of power supply. The advisability of using transformers or auto-transformers with ques- tions of capacity and regulation must be considered for the alternating-current systems ; and with direct current there are questions of the relative merits of motor- generator sets, rotary converters qr motor converters, with the determination of their normal and overload capacities and regulation. To make these different elements comparable, the selection of apparatus must be so balanced as to yield the same degree of insurance in case of the failure of individual elements or abnormal congestion of traffic, due to any cause. Selection of Rolling Stock. The item of rolling stock is by far the most impor- tant for consideration, as the proper selection of these elements is vital to the success of the system. Here the engineer is at once confronted with the consideration of the inherent features and costs of the various kinds of apparatus available; and due consideration must be given the relative values of constant versus variable speed, features involving the starting characteristics, efficiency of motors, conversion devices, control and 364 ELECTRIC RAILWAYS. driving mechanisms, effects of inherent characteristics on power-load factors, electrical power-factors, etc.; besides all which, the desirability of regeneration and emergency braking require consideration, if mountain work is involved. After having determined the first costs and rates of depreciation of each of the above elements, there remain two important items for consideration. The first is the analysis of power consumption, which can be carried through with reasonable accuracy for the particular con- ditions under consideration. The second is the problem of the determination of the operating and maintenance costs, which is more difficult. It is in these elements that the results of practice are most often lacking, and the value of an individual engineer's judgment will de- pend on his general experience, and on his ability to de- duce from available data information which can be ap- plied, when properly modified, to meet the specific prob- lem in hand. The Electrical Engineer's Problem. The assembly of all these elements in the order of their respective merits is the problem before the engineer who is called upon to select a system for a particular application. It is not surprising that differ- ent results are reached by different investigators, due to the different weights assigned to the elements or to difference in the degree of optimism toward some of the unproved features. Very often it is surprising to find how little difference there is in the initial costs of the various systems, as some of the elements tend to offset each other. For ex- ELECTRIC RAILWAYS. 365 ample, the high cost of single-phase rolling stock equip- ment frequently offsets the greater cost of direct-cur- rent substations, while the additional weight of the sin- gle-phase equipments offsets the greater conversion losses of the direct-current substations, resulting in both the cost and power consumptions of the two systems being almost identical. Consequently with a greater quantity of rolling stock, the tendency is for the moder- ate voltage direct-current systems to be lowest in cost and cheapest to operate, while with few rolling stock ele- ments the tendency is to relatively favor the higher voltage systems. For suburban electrifications a moderate direct-current voltage is generally the most economical, while for single track infrequent service, higher voltages are desirable. Standardization of Systems. A discussion of electric railway systems in the United States would not be complete without consider- ation of the standardization of systems. There is no doubt that standard third-rail and overhead' trolley clearances are necessary to avoid serious interference with bridge girders, station platforms, and various structures existing along main railway rights of way. About nine years ago, the Germanic countries, headed by Prussia, adopted certain arbitrary standards — that all main railways should be equipped with fifteen thou- sand volt single-phase trolleys, operated at sixteen and two-thirds cycles. At that time there was no experience available to justify such a selection, but it was believed by those in power to be desirable to have all efforts ex- pended in one direction, and, furthermore, it was 366 ELECTRIC RAILWAYS. deemed necessary for military reasons. Since then, it has developed that the limitations imposed are very ad- verse to economical motor car operation, that inductive interference with telephones and telegraphs under cer- tain conditions is extremely serious, the low frequency involves difficult mechanical problems and practically bars out forever an economical design of induction mo- tor for certain classes of service. These limitations have aroused some dissatisfaction in Germany; the Italian engineers have decided that three-phase is better suited to their conditions and the majority of engineers in England, Australia, Canada, France and Russia seem to favor direct current. In this country we have done well to avoid a limita- tion, such as an arbitrary standard system of electrifica- tion would impose, since it leaves us free co work in every direction — whether it be single-phase, three-phase, split-phase, moderate or high voltage direct current, the mercury rectifier systems, or in any other direction which may be entirely unknown to us today. Arbitrary standardization of a system would mean limited develop- ment or stagnation. Electrification of railways is desirable, not only from the standpoint of superior transportation, but on ac- count of improvement in land values and the comfort and safety of travel. Although electrification is eco- nomically justified for many conditions, there are today no known systems sufficiently low in cost to permit uni- versal use of electricity for railroads; and electrical engineers must therefore have a free hand in order to achieve the ultimate general application of electricity to ELECTRIC RAILWAYS. 367 railway transportation, which it is confidently believed will come. Electrification of Puget Sound Lines. A notable example of recent electrification of rail- roads is seen in the case of the Puget Sound lines of the Chicago, Milwaukee & St. Paul Railway. Plans for the initial electrification of the first engine division, con- sisting of 113 miles of main line in Montana, between Three Forks and Deer Lodge, were completed early in 1915, and contracts were let with the General Electric Company for electric locomotives, substation appa- ratus, and line material, and with the Montana Power Company for the construction of transmission and trol- ley lines. This was the first step toward the electrifica- tion of four engine divisions extending from Harlow- ton, Montana, to Avery, Idaho, a total distance of ap- proximately 440 miles, with about 650 miles of track, including yards and sidings. It was expected that the electrification would be extended in the near future from Harlowton to the Coast, should the operating re- sults of the initial installation prove as satisfactory as anticipated. The plans of the Chicago, Milwaukee & St. Paul Railway are of especial interest, as this is the first at- tempt to install and operate electric locomotives on tracks extending over several engine divisions, under which conditions it is claimed the full advantage of elec- trification can be secured. The various terminal and tunnel installations made in the past have been more or less necessary by reason of local conditions, but the elec- trification of the Chicago, Milwaukee & St. Paul is un- 368 ELECTRIC RAILWAYS. dertaken purely on economic grounds, with the expecta- tion that superior operating results with electric loco- motives will effect a sufficient reduction in the present cost of steam operation to return an attractive percent- age on the large investment required. If the savings anticipated are realized in the electric operation of the Puget Sound lines, this initial instal- lation will constitute one of the most important mile- stones in electric railway progress, and it should fore- shadow large future developments in heavy steam road electrification. The success of electric operation on such a large scale will at least settle the engineering and economic questions involved in making such an instal- lation, and will limit the future problems of electrifica- tion to the ways and means of raising the required capi- tal to effect the change in motive power. New Type Electric Locomotives. The electric locomotives manufactured by the Gen- eral Electric Company for the Puget Sound lines are of especial interest for many reasons. They are the first locomotives to be constructed for railroad service with direct-current motors designed for so high a potential as 3000 volts. They weigh approximately 260 tons and have a continuous capacity greater than any steam or electric locomotive yet constructed. Perhaps the most interesting part of the equipment is the control, which is arranged to effect regenerative electric braking on down grades. This feature as yet has never been accom- plished with direct-current motors on so large a scale. The total length of each of these electric locomotives is 112 feet. They are equipped with eight motors and ELECTRIC RAILWAYS. 369 have eight driving axles. The complete locomotive has a continuous H.P. rating of 3,000, a trailing load capacity of 2,500 tons on a one-per-cent grade, or 1250 tons on a two-per-cent grade. The approximate speed at these loads and grades is 16 miles per hour. The freight and passenger locomotives are similar in all respects, except that the passenger locomotives are provided with a gear ratio permitting the operation of 800-ton trailing passenger trains at approximately 60 miles per hour, and are furthermore equipped with an oil-fired steam-heating outfit for the trailing cars. The interchangeability of all electrical and mechanical parts of the freight and passenger electric locomotives is con- sidered to be of very great importance from the stand- point of operation and maintenance. As the electric locomotive needs inspection only after a run of approximately 2,000 miles, requires no stops for taking on coal or water, or layover due to dumping ashes, cleaning boilers, or petty roundhouse repairs, it is expected that the greater flexibility of the locomotive with these advantages will result in considerable change in the method of handling trains now limited by the restrictions of the steam engine. 370 ELECTRIC RAILWAYS. CHAPTER XXIV. TRANSPORTATION BY AUTOMOBILE. As a factor in the transportation of both passengers and freight in the United States, especially for short distances, the automobile or self-propelled vehicle has taken an important place since the dawn of the twentieth centuiy. Its development has been indeed one of the marvels of modern progress in means of transportation, and also in the field of manufacturing industry. In little more than twenty years the gasoline, or in- ternal combustion, motor car has grown from an in- significant object of derision — the "horseless carriage" of the late '90s — to a practical necessity of modern social, business and industrial life. Its use for both business and pleasure transportation has increased so rapidly as to create a new era. The crude carriage that was a curiosity twenty years ago was the beginning of the greatest transportation aid that modern civilization has produced. It has broadened the horizon of many mil- lions and has raised the standards of living among the American people, since its use is no longer confined to persons of wealth, but has been brought within the reach of the most moderate incomes; and the automobile in- dustry is today among the most important industries in the United States, ranking after steel and iron and cot- ton in the list of our manufactures. 371 372 TRANSPORTATION BY AUTOMOBILE. As a popular means of locomotion the automobile now has no rival. The streets and boulevards of our cities, the great highways and rustic roads throughout the country, are all fairly alive with motor cars of all grades and sizes, from the small, light car of trivial cost to the high-powered touring car whose initial cost runs well into the thousands. Between these extremes are to be found many machines of medium cost, capable of transporting from two to a dozen people on their daily trips to and from business, or on business or pleasure tours about the country, at the rate of speed of an ordi- nary railway train. In the field of trade, for local transportation of merchandise, retail deliveries, etc., horse-drawn vehicles are rapidly being replaced by motor trucks and wagons. Great factories for the manufacture of motor vehicles have sprung up, some of these employing many thou- sands of men, and enormous fortunes have been rapidly made in the development of this new industry. In many localities, and among certain classes of the population, the automobile has practically revolution- ized transportation. It has given millions a new out- look upon life. To the farmer and his family it has been a decided boon, enabling them to have easier and more frequent communication with neighboring markets and centers of trade and population; thus making the life of the farm and the ranch more endurable, and probably having its effect in checking the tide of migra- tion from the country to the cities. One of the greatest benefits derived by the public from the increasing use of motor vehicles in town and country is found in the improvement which it has caused TRANSPORTATION BY AUTOMOBILE. S73 in the construction and maintenance of both urban and rural highways. The development of a good roads movement all over the country has resulted in the build- ing of hundreds of miles of improved roads in almost every State ; in a marvelous extension of city boulevard The Pioneer American Automobile. Designed and Built by Elwood Haynes of Kokomo, Ind. First run July 4, 1894. Now in the Museum of the Smithsonian Institution, Washington, D. C. — Photo by Courtesy of Haynes Automobile Co. systems, and in a general betterment of street pave- ments and public highways wherever the motor car is used. This movement has been of inestimable benefit, not merely to the pleasure rider or tourist, but to the agricultural community in every State where the prev- alence of poor roads has hindered access to markets by making the transportation of farm products difficult, tedious, and costly. The Automobile Industry. As the third most important manufacturing industry 374 TRANSPORTATION BY AUTOMOBILE. in the United States, the automobile industry, once re- garded with suspicion by conservative bankers and in- vestors, has won the approval and confidence of the busi- ness world. Its mushroom growth led for several years to reckless speculation and financing by manufacturers who were overwhelmed by the tremendous sudden popularity of the motor car and the excessive demand for a vehicle that was scarcely developed, from an en- gineering standpoint, as a reliable means of transpor- tation. Recklessness of manufacturing methods and finance brought an inevitable result — the reckless manu- facturers were forced out of business; their bankers then took hold to straighten out their tangled finances, and with the conservative element in the industry brought it to its present high standing. From the few rattletrap cars that participated in the first automobile road race in America — held under the auspices of the Chicago Herald in 1895 — the business has so increased that the output of motor vehicles in this country during the present year, 1916, is estimated by authorities in the trade at from 1,000,000 to 1,200,000 and the value of this enormous product is placed at not far from $1,000,000,000. There has been an increase in production by leaps and bounds every year. The number of cars turned out by American factories in 1905 — ten years after the birth of the industry — was 33,896. In 1909 the production went far above the 100,000 mark— 125,593. Sixty thousand more were made in 1910. In 1911 the number was 209,957; in 1912 it jumped to 378,261; in 1913 the number approximated 450,000 and in 1914 there was an increase to 515,000 new cars. TRANSPORTATION BY AUTOMOBILE. 375 The greatest jump in output in any year, however, was made in 1915, when 842,249 passenger automobiles and 50,369 motor trucks were sold in the United States. The retail value of this product was stated by the Auto- mobile Chamber of Commerce as $732,600,000. The European war was responsible for much of the motor truck manufacture in 1915-16, several truck National Touring Car— National Motor Vehicle Co., Indianapolis. manufacturers filling large orders for various sorts of vehicles ordered by the belligerent nations. The in- crease in passenger cars, however, and part of the in- crease in motor truck manufacture, were due to the rapid extension of the use of automobiles in American business. One reason for this increase is that with improved engineering and manufacturing processes and larger production the automobile manufacturers have been able to turn out much better cars than formerly at much lower prices. With a great many users the automobile has passed beyond the luxury stage and become an ab- solute necessity. Exports of American Cars. In the upbuilding of the industry in this country, the 376 TRANSPORTATION BY AUTOMOBILE. foreign trade has had an important bearing. In the early days, American cars did not suit those of unlimited means, who preferred cars of European make, and the French and German manufacturers shipped many cars to this country. But now the situation is different. American-made cars furnish everything that can be de- sired by the most fastidious owner or driver ; the United States is exporting motor cars to nearly every country on the face of the globe, and the value of the cars im- ported is insignificant in comparison with the value of the exports. The value of the automobiles imported by the United States in 1906 was $3,844,000, and the year after it went slightly above $4,000,000. In 1909 the imported cars were valued at only $2,905,000 and the figure sank gradually to $620,000 in 1914. In 1915 it rose to $1,- 372,412. The export figures tell a different story; they travel an ascending line. From a value of $948,500 for the cars shipped out of the United States in 1903 the figure rose to $4,890,000 in 1907, to $9,548,700 in 1910, and to $26,574,000 in 1914; while for ten months of 1915 the value of American automobiles and automobile parts exported was $85,485,000, according to the figures of the Department of Commerce. The total for the year exceeded $100,000,000. England is at present our best buyer of automobiles, taking for the year ending June 30, 1915, cars valued at $21,000,000, including 8,321 pleasure cars and 5,306 trucks. The total value of commercial vehicles exported in 1915 was approximately $63,000,000, and of passen- TRANSPORTATION BY AUTOMOBILE. 377 ger cars $37,000,000. Exports of cars and trucks per month are at the rate of $8,500,000. Extent of the Industry. The birth of the automobile industry is usually dated from 1895, when it was signalized by the first automo- bile race, over the World's Fair course in Chicago. This race was won by J. Frank Duryea and Charles E. Duryea, in a car of their own make. There were eighty- nine entrants, but only six started, while only two fin- ished. The time for fifty-five miles was 10 hrs. 28 min. Compare with this the speed made in the same vicinity in 1915 by Dario Resta, who averaged 97.5 miles an hour, and subsequently raised the record to 105.4 miles an hour for 100 miles. Non-stop records too have jumped recently from 250 miles to 500 miles, new rac- ing track construction being a contributing factor in these remarkable records of speed and endurance, as well as improved motors, mechanism, and tires. The total number of cars in use in the United States demonstrates their importance as a factor in transporta- tion. On July 1, 1915, there were registered, according to state reports, a total of 2,070,000 motor vehicles, while the total registrations for 1915 amounted to 2,400,000. The registrations in New York state on December 1, 1915, were 231,713 cars. Illinois registered nearly 200,000; California had 160,000; and in the lead- ing ten grain states the registrations for 1915 showed a total of 677,000 cars. Iowa leads the states in per capita ownership, having a total registration of 117,407 cars, or one car for every nineteen persons. Automobile factories were reported in 34 states of 378 TRANSPORTATION BY AUTOMOBILE. the Union on January 1, 1916, with a total of 448 manufacturers of passenger and commercial cars. The commercial vehicle manufacturers numbered 257 and there were 27,700 retail dealers, garages, repair shops and supply stores. The chauffeurs registered in New York state number 79,899 and in Illinois 24,100. The proportion of motor vehicles to the population of the United States was 1 to 48, and there was one motor vehicle for every mile of road in the country, or one car to every one and one-third square miles of its entire area. While the automobile production for 1916 is esti- mated at 1,200,000 cars, some of the manufacturers figure that there are 5,000,000 families in the United States with incomes permitting the ownership of a mo- tor car. The demand for automobiles therefore seems a long way from being filled and a continued growth of the industry may be expected. Reduction in Prices. Big production of motor cars in the United States came with the standardization of the most important parts of cars in 1910, when the number of cars made reached 187,000. Scientific engineering, standardiza- tion of parts, skilled manufacturing, big production, and efficient selling brought the passenger car to an average price in 1915 of $672. The most popular low-priced car was marketed at about half that price, and had an enormous sale which caused the authorized capital of the manufacturer to be increased in 1915 from $2,000,000 to $50,000,000, the new stock going to the holders of the old shares as a bonus. TRANSPORTATION BY AUTOMOBILE. 379 The average price of automobiles in 1899 (for steam runabouts) was $1,284. The average price in 1907 went to $2,123. Since then it has been steadily reduced. The retail value of the cars and trucks sold in 1915 was $691,778,950, made up as follows: Passenger cars, $565,856,450; motor trucks, $125,922,500. Freight carloads of automobiles shipped by American manufacturers in 1915 exceeded 200,000. There are 2,273,000 miles of public road in the United States, and largely due to the automobile the great sum of $250,000,000 was spent on highway construction in 1915. Besides improving transportation by road, this also resulted in a tremendous increase in real estate values in the localities affected. In some localities this increase has amounted to from 100 to 400 per cent. The number of miles traveled annually by motor vehicles in this country, estimating an average of 5,000 miles per car, is no less than 12,000,000,000. The amount of gasoline consumed annually, at an average of 400 gallons per car, is 980,000,000 gallons; while the lubricating oil consumed annually, averaging twelve gallons per car, is 28,800,000 gallons. There are 12,000,000 tires used annually on the motor cars of the United States, these being of 125 different brands and of 140 types and sizes. Keen competition in the automobile industry brought failure during the last five years to about 400 manu- facturers. Regulation of Automobiles. Automobiles pay registration fees in all states, and personal property tax, in addition, in all but four states. Many states also require and charge for a driver's li- 380 TRANSPORTATION BY AUTOMOBILE. cense, while others have a wheel tax. More than $7 per car was paid in motor vehicle fees for registration in 1915, or a total for the United States exceeding $14,- 000,000. Laws and ordinances for the regulation of automo- bile traffic exist in the various states, cities, and rural districts. These usually prescribe a limit of speed which shall not be exceeded by drivers, under a penalty, and also set forth rules of the road for motor vehicles. The speed limits vary according to the nature of the locality and the spirit of the community. In the larger cities ac- cidents involving loss of life to pedestrians and motorists are still distressingly frequent, but a recent tendency toward "safety first" is observable in all populous cen- ters, and restriction of motoring to a reasonable and safe speed under all conditions is now strongly urged upon drivers by the automobile clubs and associations, as well as by local authorities in all parts of the country. Features of Up-to-Date Cars. The modern automobile of average cost is lighter, better equipped, more beautiful and more comfortable than its predecessors in the brief process of evolution. Nearly all manufacturers now adhere closely to estab- lished principles of design, motors are more reliable, and valves generally are better. Improved starting and lighting systems, electric gear shifts, etc., have done much to increase ease of operation and the comfort of drivers. Most engines are water-cooled, but the air- cooled motor cars of a great manufacturer are both successful and popular. The "gearless" car has arrived, silent "sliding sleeve" motors are in extensive use, but most of the changes in model now made by manuf actur- TRANSPORTATION BY AUTOMOBILE. 381 ers are in the direction of improving details of con- struction rather than radical changes of design. Automobile engines are now mostly of the four- cylinder and six-cylinder varieties. About 11 per cent of the models shown (not of cars manufactured) in 1916 were of eight-cylinder design, and twelve-cylinder engines appeared for the first time in 1916. The average horse-power of the 1916 models was 28.66. In 1915 it was 29.77. The limit of motor construction for the automobile appears to have been reached, so far as the number of cylinders is concerned. Experimental and research work has fully convinced American engineers that a small-bore, high-speed motor is to be the final answer in motor car construction. European engineers have al- ready adopted this theory. The smaller bore of the cyl- inder permits the use of higher compression, and the higher the compression the more efficient is the burning of the gases at all speeds. Naturally the question arises, to what extent can this be carried out? There are various reasons, according to the experts, why more than twelve cylinders will not be employed in the construction of automobiles. The principal rea- son is that the greatest efficiency is reached with this motor, not only from the engineer's standpoint but from the standpoint of the man behind the wheel. Automobile No Longer a Mystery. The air of mystery which surrounded the automobile in its early days has been dissipated by the simplicity of its operation, and increased knowledge of its construc- tion. There is no longer the impression in the minds of buy- ers and users that the motor car is a complex combi- 382 TRANSPORTATION BY AUTOMOBILE. nation of parts which only one well versed in engineering can safely own. And yet the simplicity of the automo- bile is largely due to the association of numerous smaller machines into a harmonious unit. The motor car of today resembles the original horse- less carriage — which Elwood Haynes placed upon an Indiana highway in 1894 — only in the fact that it is motor driven. (The pioneer Haynes one-cylinder ma- chine is now preserved in the museum of the Smith- sonian Institution at Washington.) The history of every mechanical development has been "from crude direct- ness at the start to extreme and burdensome complexity ; then to a finished simplicity which made the complex designs seem absurd." It was logical that the automo- bile should go through stages of development in that respect, following the general rule of mechanical history and working back to a permanent condition of sim- plicity. The question of the number of cylinders for an auto- mobile engine will be finally settled by the people who buy automobiles, and their decision will be properly in- fluenced by the cost of operation plus depreciation. The simpler any mechanism, the cheaper it is to operate and care for. Therefore it would seem that any tendency to- ward a large number of cylinders in automobile engines is likely to be followed by a return to a policy of fewer cylinders, because of this greater simplicity and the re- sulting economical advantage. Official figures show that close to 2,400,000 motor cars were licensed in this country in 1915, and it is conserv- atively estimated that at least one million persons are driving their own cars. Of these persons probably not one in ten knows much about its mechanism. Such a TRANSPORTATION BY AUTOMOBILE. 383 condition is bound to have an important influence in the future design of motor cars. It is a condition which means a tendency toward greater reliability in automobiles; simplicity in design and construction — the smallest possible number of things to look after and care for. Electric Vehicles Popular. Recent changes and improvements in the electric vehicle industry point to a bright future for the electric in the commercial field and as a passenger car. The popularity of the electric car has been of gradual, steady growth in recent years, and it is now firmly established in public favor. The electric motor car is an especially desirable and economical vehicle for city and suburban transportation. An important recent development in a special field is its adoption for municipal service, in one form or an- other, by many of our most progressive cities. Still an- other development seen in the cities is the electrically driven taxicab. Increasing Use of Motor Trucks. There are now (1916) in use in the United States more than 200,000 motor trucks, or ten times as many as at the beginning of 1912. The present output of Ameri- can factories for American use is at least 75,000 trucks a year, with a value of $120,000,000; and the demand exceeds the supply. In the motor truck market there is a greater range of models and prices than there is in the pleasure car field. Besides the conventional rear-wheel driven types there are front drive and four-wheel drive models, as well as the six-wheel semi-tractor and trailer. 384 TRANSPORTATION BY AUTOMOBILE. A review of the motor-truck manufacturers shows 221 makers of gasoline trucks, twenty- four electric wagon concerns, and two making steam trucks. Be- tween them they list no fewer than 462 different models — 407 gasoline, fifty-three electric, and two steam. A significant sign that the vogue of the motor truck is country-wide is the fact that these manufacturers are located in thirty-one different states, ranging from Massachusetts to Texas in the east and south, from New York to Minnesota in the north, and including Washington, Oregon, and California in the extreme west. Michigan leads with 41 manufacturers of trucks, while Ohio has 31, Pennsylvania 25, Illinois 20, Massa- chusetts 13, Indiana 12 and Wisconsin 11. Motor truck buyers today pay less attention to the engineering details of the machine than they do to its economy and efficiency in the particular kind of trans- portation for which the truck is intended. The ability of the truck to deliver the goods the maximum number of working days under all kinds of road and weather conditions — this is the prime consideration with the well-informed buyer, the merchant who has to move goods. When the lessons of the European war are finally tabulated, not the least important will be the part played by the motor truck. The dependence upon gasoline traction will be emphasized as never before, and the lessons taught by war will be turned to account in improved design and construction of motor wagons and trucks to serve the arts of peace. QUESTIONS FOR REVIEW. TRANSPORTATION— INTERSTATE COMMERCE-^ FOREIGN TRADE. CHAPTER I. The History of Transportation. 1. Who first suggested the building of a railroad, and when? 2. What treatment did he receive? 3. When was the first railway in America con- structed? 4. What railroad was it ? 5. How and when was the present New York Cen- tral system inaugurated? 6. In what year was communication by rail between New York and Buffalo established ? 7. What State followed New York in railway de- velopment? 8. Who were the builders of the first American locomotives? 9. What part have railways played in the develop- ment of the country? 10. Between what years was the greatest amount of railroad building done in America ? 11. What main purpose was involved in the con- struction of the first transcontinental route ? I.B.I,. Vol. 8— 25 385 386 QUESTIONS FOR REVIEW. 12. How did rates on the pioneer railroads compare with those in effect today? 13. In what time could the journey from Philadel- phia to Pittsburg be made by rail in 1837? CHAPTER II. Organization of Operating Force. 1. On what plan is the operating staff of a railroad organized ? 2. Cite the system in effect on the Union Pacific. 3. Who is at the head of the operating staff? 4. How many departments report direct to this offi- cial? 5. What are the duties of a General Superintend- ent? 6. By what means does he keep in close touch with the operation of his road ? 7. To what extent does a Division Superintendent have authority? 8. Is the General Freight Agent subordinate to the General Manager; and if so, how? 9. What are the duties of a General Passenger Agent? CHAPTER III. Relations of Carrier and Shipper. 1. Is there any difference between carriers by rail and water as regards their liability to shippers? 2. Which carrier assumes the greatest amount of responsibility? QUESTIONS FOR REVIEW. 387 3. Under what conditions are railroads exempt? 4. What must a carrier by rail do to protect a ship- per? 5. Is a railroad responsible for losses by fire while goods are in transit? 6. When does the liability of a carrier by rail ter- minate ? 7. What is the difference between the old and the modern system of forwarding goods ? 8. Under what conditions does responsibility attach to shippers? 9. What is the general liability of a carrier by water ? 10. How is this liability limited? 11. Do the Federal statutes define the liability of carriers by water? CHAPTER IV. What Is a Reasonable Rate? 1. Is there any fixed plan by which a reasonable rate may be equitably determined? 2. Is the basis of "a fair rate on the capital invested" satisfactory ? 3. What difficulties, if any, exist in establishing the actual cost of railway construction? 4. Has any practical plan been put into effect? 5. What is the position of the United States Supreme Court on this subject? 6. Can the Federal Supreme Court deal with the legality of rates fixed by the various States? 388 QUESTIONS FOR REVIEW. 7. How would an attempt at a rate-reduction affect the general rate schedule? 8. Is the Constitution violated by making rates so low as to be unprofitable ? CHAPTER V. Domestic and Foreign Kates. 1. Is there a tendency on the part of railroads to reduce freight and passenger rates as business increases? 2. Cite the difference in passenger rates for journeys of similar length in the United States and England. 3. Name the average passenger rates now in effect in the principal civilized countries. 4. What country has the lowest rate, irrespective of class of service? 5. What is the general tendency of freight rates, up- ward or downward? 6. What appreciable effect would there be in a ten per cent increase in freight charges ? CHAPTER VI. Classification of Traffic. 1. Why do railroads classify their freight traffic? 2. Is the plan now in effect entirely satisfactory? 3. On what basis is classification made ? 4. To what extent, if any, is locality a factor in de- termining the classification of freight ? 5. How are rates affected by this classification? 6. Name the rates in effect on each class between New York and Chicago. 7. How is the minimum capacity of a car fixed upon? QUESTIONS FOR REVIEW. 389 CHAPTER VII. Uniform Bill of Lading. 1. In what year and under what conditions was the uniform bill of lading adopted ? 2. Does any particular advantage accrue to shippers under the new system? 3. What was the defect, if any, in the old form? 4. Name the principal features of the uniform bill. 5. Of what particular advantage is it in banking transactions ? 6. What liability does a carrier by rail assume under the uniform bill of lading? 7. How may shippers utilize the uniform bill of lading in raising money? 8. What is a milled-in-transit bill, and of what bene- fit is it to a shipper ? CHAPTER VIII. Private Cars and Fast Freights. 1. What class of shippers own private freight cars, and why? 2. Under what arrangement do the railroads handle these cars ? 3. What advantage is there to a shipper in the own- ership of freight cars? 4. Do the railroads benefit by this system, and if so, how? 5. How did the private car system originate? 6. What was the beginning of the fast freight ser- vice? 7. How is this service operated? 390 QUESTIONS FOR REVIEW. CHAPTER IX. Some Transportation Problems, 1. What is the comparative transportation power of man, horse and locomotive? 2. Which country gives the best and most economic transportation service ? 3. Is there a Federal law against discrimination in rates? 4. When did it originate, and under what circum- stances ? 5. What is the effect of competition between large carriers ? 6. Is there any benefit in the combination system? 7. Name three plans that are suggested by railway men for obtaining relief from the effects of unrestricted competition. 8. Can "pooling" be legalized without advancing rates unfairly? 9. What benefit, if any, is there in unification of transportation interests ? 10. What effect has improvement in our railway ser- vice had upon rates? 11. Cite some of the objections which are raised against government ownership. 12. Is there necessity for government control which does not include government ownership? 13. How does England limit railway construction so as to avoid ruinous competition? QUESTIONS FOE REVIEW. 391 CHAPTER X. Railways as Industrial Factors. 1. When did the manufacturing industry of Amer- ica begin to attract attention? 2. What has been the main factor in the develop- ment of this industry? 3. Have railroads any interest in the development of communities and business interests? 4. How have our American railroads operated to se- cure increase in traffic along their lines? 5. In what way do the immigration bureaus of our railroads assist in developing traffic? 6. Why do railways give particular attention to the development of manufactures? 7. How are business men located along various rail- way lines educated to assist in the development of their communities ? 8. Cite instances in which profitable industries have been established in the West and Northwest through railroad influences. 9. When and how was the first paper mill estab- lished in Wisconsin ? CHAPTER XI. Training of Railway Mechanics. 1. What large railroad system maintains a syste- matic course of instruction for its mechanical employes? 2. Under what conditions are apprentices received? 3. Of what benefit is this system to the road and the apprentices it receives? 892 QUESTIONS FOR REVIEW. 4. Give an outline of the course of instruction, and method of rewarding diligent pupils. 5. Are there any physical and mental qualifications necessary to the acceptance of an apprentice? If so, name them. 6. What is the advantage of the indenture system as maintained by this particular railroad? 7. What is the scale of wages paid to apprentices? CHAPTER XII. Railroad Situation in Canada. 1. What has Canada done toward the construction of railroads? 2. Is the Canadian policy liberal or otherwise? 3. How much money has Canada expended in the construction of government-aided lines up to the present time? 4. By what other means does the Canadian govern- ment aid in the construction of railroads ? 5. Which country has the largest railway mileage — Canada or Great Britain? 6. What was the total Canadian railway mileage on the 1st of January last? 7. Cite an example as to the density of population per mile of railway in Canada, Great Britain and the United States. 8. What is the total capitalization of Canadian rail- ways, and what does it average per mile of road ? 9. How many passengers and how much freight did the Candian railroads carry during last year ? QUESTIONS FOR REVIEW. 393 10. What were the gross earnings of these roads last year, and how did they compare with the preceding year? 11. What were the operating expenses of the roads last year? 12. How many people are employed in railway work in Canada? 13. What is the total amount of their salaries and wages, and how does the rate of pay compare with that prevailing in the United States? CHAPTER XIII. Railway Mail Service. 1. When was carriage of mail first established in the United States? 2. What was the speed per hour? 3. What is the present highest speed of our modern fast mail trains? 4. When was the first special mail service inaugur- ated, and under what conditions? 5. When, and over what route, was the first regular mail service established? 6. What abuses, if any, existed in the old distribut- ing office system? 7. Who was the original suggestor of the railway postoffice? 8. When and between what points was the distrib- uting system now in effect first inaugurated ? 9. Who introduced the fast mail train system, and over what roads were these trains operated? 10. What were the results of the first efforts to establish this svstem? 394 QUESTIONS FOR REVIEW. CHAPTER XIV. Transportation by Express. 1. When, and by whom, was the express business started? 2. What large companies have grown out of the efforts of one man? 3. What are the general terms of the contract under which express companies operate on railroads? 4. What is the main source of express revenue? 5. How do express companies regulate their charges for the transportation of valuables? 6. Is there a limit to the amount for which an express carrier is liable? If so, what is it? 7. Why is care necessary in determining the value of packages? 8. Describe the nature of what is known as C. O. D. business. 9. What makes this business of special value to the express carrier. 10. What particular business, akin to banking, is transacted by express companies? CHAPTER XV. Railway Crop Report Bureaus. 1. What class of railroads make a feature of com- piling crop reports? 2. In what manner is the information obtained? 3. Describe briefly the method of compilation. 4. What is the purpose of securing and tabulating crop news? QUESTIONS FOR REVIEW. 395 5. What classes of people are benefited by this service ? CHAPTER XVI. Fixing Value of Railroads. 1. What constitutes the value of a railroad? Is it the cost of construction, or the earning power of the road? 2. What important things should be kept in mind in determining railroad values? 8. Name the effect of railroad valuation on inves- tors. 4. How may fair valuation be made? 5. Is there any difference between "fair value" and "cost of reproduction"? 6. In what manner have the Federal courts ruled upon the question of railway valuation? Cite an im- portant instance. 7. Name some of the important items usually ig- nored in the appraisal of railroad property. 8. What is the general policy of railroad managers in the betterment of the properties under their charge? CHAPTER XVII. Interstate Commerce Act. 1. In what way does the Interstate Commerce Act affect railway rates? 2. On what basis must common carriers subject to this act regulate their charges? 3. Is discrimination in rates as bttween shippers allowable ? 396 QUESTIONS FOR REVIEW. 4. Is there any legislation as to long and short haul rates? If so, what is the effect? 5. How are schedules of rates to be made public? 6. Must these schedules be adhered to? 7. To what extent are carriers by rail liable for damages, and how may these damages be collected? 8. What is the punishment for violation of the pro- visions of the Interstate Commerce Act? 9. Under what conditions are shippers liable to pun- ishment, and to what extent? 10. Describe the authority and powers of the Com- mission. 11. In what event may recourse be had to the courts ? 12. How often must common carriers by rail report to the Commission, and what should these reports con- tain? 13. What courts have jurisdiction of cases involv- ing violations of the Interstate Commerce Act? 14. What provisions, if any, are there for the use of safety appliances ? 15. Does an employee, injured in consequence of the failure of a carrier to comply with the law, lose his right to damages if he knowingly and willingly assumes the risk thus occasioned? 16. What limitations are there on Federal telegraph franchises granted co common carriers? 17. What is the duty of the Attorney-General in case of violation? 18. Must contracts between railroad and telegraph companies, relating to ownership, possession, control, use and operation be filed with the Interstate Commerce QUESTIONS FOR REVIEW. 397 Commission? What is the penalty for failure to com- ply with this provision? 19. What is the bearing of the act in relation to trusts and combinations? 20. What punishment is provided for engaging in an illegal trust or combination? 21. What courts have jurisdiction of such cases, and to what extent? 22. Can a person injured by an act committed by a common carrier in violation of the terms of the Inter- state Commerce Act recover damages? 23. How is the giving and taking of bribe money punishable? 24. Are common carrier corporations liable for the acts of their agents and other employees? 25. What method of procedure is provided for vio- lation of rate schedules or other acts of discrimination? CHAPTER XVIII. Transportation by Water. 1. Give total number of passengers carried on water routes in the United States in one year. 2. What is the general character of freight transpor- tation by water ? 3. What should be done to improve our present sys- tem of transportation by water? 4. Give the navigable mileage of inland river routes in the United States. 5. Of canals. 6. What is the main drawback of the American canal system? 398 QUESTIONS FOR REVIEW. 7. Describe the policy of the Federal government toward waterways. 8. What is the nature of Federal improvement work? 9. Which is the cheapest for the shipper, water or rail transportation? 10. How are vessels engaged for the carriage of freight? 11. To what extent does the Federal government exercise control over vessels on inland waters? 12. What are the rates for marine insurance? 18. Do the various States tax marine property? If so, in what manner? 14. What constitutes navigable water? 15. What is the Mississippi River problem? 16. Name the principal items and magnitude of lake commerce. 17. What are the four principal Atlantic ports? 18. Give total tonnage of receipts and shipments at the principal Atlantic and Gulf ports for one year. 19. What conditions have enabled railroads, charg- ing higher rates, to displace water transportation? 20. Name the four principal ports on the Pacific coast. 21. What commodity constitutes the largest item of transportation on the Pacific coast? CHAPTER XIX. Lakes-to-the-Gulf Waterway. 1. Is there need for a deep waterway connecting the great lakes with the Gulf of Mexico? QUESTIONS FOR REVIEW. 399 2. What section of the United States would be most directly affected by such a route ? 3. Give reasons why this section is particularly inter- ested in such a waterway. 4. What benefits would be obtained by the construc- tion of a great central deep water route? 5. What class of goods suffer the most from lack of a through deep water route? 6. To what extent does waterway competition affect freight rates by rail? 7. What effect does water and rail competition have on the bulk of business ? 8. How is the producer limited as to market area by lack of water transportation? 9. How would a lakes-to-the-Gulf waterway figure in our trade with Central and South America? 10. What business relation would exist between the Panama Canal and a waterway to the Gulf, provided the latter were constructed? 11. What advantage would such a route have over that now used? CHAPTER XX. Vessels in Foreign Trade. 1. Why does the Federal government keep a record of vessels engaged in foreign trade? 2. What is the significance of a "ship's papers"? 3. What vessels can be registered in the United States? 4. What benefit, if any, attaches to the registration of a vessel? 400 QUESTIONS FOR REVIEW. 5. How is the identity of a vessel established? 6. Under what conditions may a vessel's name be changed? 7. How is registry effected? 8. Can a foreigner command a vessel of American registry? 9. What is "the husband" of a vessel? 10. How is the tonnage capacity of a vessel accurate- ly decided upon? 11. Describe the method of measuring a vessel. 12. Is there any reason for the tonnage of a vessel being accurately stated? What is it? CHAPTER XXI. Work of the Custom House. 1. What routine must be observed by vessels de- parting from ports of clearance? 2. Of what service is the clearance paper? 3. What is a ship's manifest, and what should it con- tain? 4. What course should be taken by the master of a vessel on arriving at a port of entry? 5. Is there any limit to the time allowed for unload- ing vessels? If so, what is the rule? 6. Describe the process of importing foreign goods. 7. What papers is it necessary for an importer to hav i 8. Must duties be paid immediately on inspection of goods? 9. If not thus paid, what course may an importer pursue? QUESTIONS FOR REVIEW. 401 10. In the event of his placing the goods in bond, how long may they remain there before the duty must be paid? 11. What is the penalty for making false return as to valuation of goods? 12. May imported goods be re-exported without payment of duty? CHAPTER XXII. The Bonded Warehouse. 1. Why are bonded warehouses established? 2. Of what benefit are they to shippers? 3. What kind of goods are placed in bond? 4. How is a warehouse entry made? 5. Of what particular value is a warehouse receipt? 6. Is there a punishment for wrong valuation? If so, what is it? 7. What is the duty on imported goods in bond which are withdrawn for re-exportation? 8. How are such goods kept track of after being re- shipped? 9. What is the rate of storage charges? CHAPTER XXIII. Electric Railways of the U. S. 1. How many miles of electric railways are there in the United States? 2. From what year does their period of development date. I. B. L. Vol. 8—26 402 QUESTIONS FOR REVIEW. 3. How many passengers did the electric railways transport last year ? 4. How does the competition of electric railways aff ect the steam roads ? 5. What are the prospects for general electrification of the steam railroads ? 6. What are the chief characteristics, etc., of an electric locomotive? 7. What steam railroad was the first to electrify a large portion of its mileage, and what was the result of the experiment ? 8. Name some of the engineering problems in equip- ping an electric road. 9. What type of passenger car is generally used in city traffic? 10. What type of car is best fitted for interurban service? 11. How do the electric railways of the United States compare with foreign systems? CHAPTER XXIV. The Automobile in Transportation. 1. How many licensed automobiles are there in the State you live in? 2. About how many people are using automobiles daily in the United States? 3. How has this diversion of traffic to automobiles affected railroad and steamboat lines? 4. To what extent has the automobile become more than a pleasure vehicle? 5. Has it received any attention from business men as a vehicle for freight transportation? QUESTIONS FOR REVIEW. 403 6. Cite average cost per ton per mile of operating a two-ton gasolene freight truck. 7. What is the average efficiency of a gasolene motor truck, as compared with horses? 8. What will be the difference in the daily cost of feed for four horses, and fuel for a gasolene truck of four-horse capacity? 9. How many automobiles were made in the United States last year? Mitchell 6-Cylinder 7-Passenger 48 H. P. Motor Car. Mitchell-Lewis Motor Co., Racine, Wis. Detroit Electric Car— 1916 Model— Anderson Electric Car Co., Detroit, Mich. The Galloway Automobile — A Low-priced Car Introduced in 1915 by The William Galloway Co., Waterloo, Iowa. Hudson Six — 40 H. P. Phaeton— Hudson Motor Car Co., Detroit, Mich Moon Six-Cylinder, 40 H. P. Motor Car, 1916 Model. Case 40— 1916— Model T Touring Car— J. I. Case T. M. Co.,— Racine, Wis. Maxwell Touring Car — Maxwell Motor Co., Detroit, Mich. TERMS USED IN TRANSPORTATION. Barge — Water craft which has no means of propul- sion within itself and must be towed. A very consider- able business is done by barges, especially on rivers like the Ohio, Missouri and Mississippi. Bulk Freight — Commodities like grain, iron ore, coal, etc., which are carried in bulk without being put up in containers. Canal — An artificial waterway. Generally a route constructed to either lessen the distance between cer- tain points or to afford water connection where none previously existed. Cargo Insurance — This is generally paid for by the shipper of goods, and always so if the vessel is under charter. Channel — The deepest part of a navigable body of water. Charter — A contract by which the exclusive use of a vessel is secured for a certain purpose. Classification — Division of freight into classes so as to secure equitable rates according to the nature of the goods. The cheaper the goods the lower will be the classification, with a corresponding reduction in the freight rate. CO. D. — A shipment of goods to be paid for on delivery. 407 408 TERMS USED IN TRANSPORTATION. Common Carrier — A corporation, firm or individual engaged in the transportation of people or goods for the benefit of the general public. Commutation — A process by which the patron of a transportation line by agreeing to use a stipulated amount of mileage within a given time secures a rate much lower than the ordinary one-ride charge. Community or Interest — Unification of transpor- tation lines, either by general ownership, or consolida- tion of management, with the purpose of eliminating disastrous competition. Consignee — The party to whom goods are addressed. Consignor — The party who delivers goods to a trans- portation line to be forwarded to another party. Demurrage — Compensation paid by transportation lines to shippers for the delay or detention of goods. Likewise compensation paid by shippers to transporta- tion lines for the detention of cars or vessels. Differential Rates — Special rates made for hauls of approximately the same distance with the purpose of diverting traffic to or from certain points. Differential Routes — An advantage in rates al- lowed to certain roads which, by reason of longer route, poor roadbed or equipment, or other cause, are unable to compete with the first-class lines on even terms. Drawback — Refund of duties on goods which are to be exported, or of excess freight charges. Drawbar — That part of a locomotive or railway car to which the coupling is fastened. A standard height for drawbars is established by law in order to minimize the risk of accident. TERMS USED IN TRANSPORTATION. 409 Dunnage — Frequently used to denote the luggage or baggage of employees and passengers. More prop- erly the packing used to keep a cargo in place while in transit. Gauge — Width of track. There are three gauges in use in the United States and Canada — the narrow, broad and standard. The latter, which is in almost universal use, is 4 feet 8V2 inches wide. This allows of an inter- change of cars by all roads except those of broad and narrow gauge. Head-on Collision — When two trains, moving in opposite directions, collide, the front or "head" end of each engine meeting. Hull Insurance — Insurance on the hull of a vessel. This is taken out by the owners of the vessel. Husband of a Vessel — The managing owner or con- troller of the largest ownership share. Interstate Commerce — Goods passing from one State to another. Traffic wholly within the boundaries of a State is not affected by interstate commerce regu- lations ; but if this traffic crosses the State boundary by the fraction of a foot the interstate commerce regula- tions apply. Joint Rate — Rate made on through shipments by two or more roads, movement over each of which is necessary to complete the journey. Manifest — Invoice of a cargo of goods to be shown at the custom house. Mileage — The basis on which all fares and freights are computed. Milled-in-Transit — Arrangement by which grain may be stopped in transit and ground, and then re- 410 TERMS USED IN TRANSPORTATION. i shipped at the rate prevailing between the points of original shipment and ultimate destination. Minimum Capacity — Minimum of load capacity for which the use of a railway car may be obtained. If a shipper desires the exclusive use of a car he must pay freight on the minimum load capacity, even though he does not use that minimum capacity. Naval Stores — Turpentine, pitch, resin, etc. So called because in the days of wooden hull vessels the greatest use for these materials was in ship building and repairing. Navigable Water — Any stream or body of water on which traffic incident to that particular locality may be conducted. There is no standard of depth, width or capacity. In some instances streams on which logs could be floated have been declared navigable waters because logging was the chief industry on the stream. Non-Competitive Point — Points which can be reached by only one route. If more than one transpor- tation line reaches the same place it is designated as a competitive point. Package Freight — Commodities like flour, sugar, fish, etc., which are put up in containers like barrels, boxes or bags. Physical Property — Actual, tangible effects like vessels, locomotives, railway cars, buildings, machinery, roadbed, etc. The right-of-way and good will of a railway may be of more actual value than its physical property, but they do not count as such. Port of Entry — Seaport at which a customs service is maintained for the purpose of expediting the collection of duties on imported goods. TERMS USED IN TRANSPORTATION. 411 Port of Clearance — Seaport from which a vessel "clears," or starts on its voyage. Propeller — Vessel, the motive power of which is fur- nished by a propeller or "screw" at the stern. Now in almost exclusive use on deep waters. Rear-End Collision — When two trains moving in the same direction collide, the engine of one train run- ning into the rear coach of the preceding train. Registry — Official record by the government (all civilized countries), giving a complete description of a vessel for identification purposes. Revenue — The money earned in the transportation of goods or passengers. Also used to designate the income from investments. Right of Way — Term used by train dispatchers to give certain trains precedence over others when not run- ning on a regular time schedule. Also used in construc- tion work to designate the territory or land secured by a railway for roadbed purposes. Salvage — Goods saved from loss or damage in rail- way or marine disasters. Side- Wheeler — Vessel with propelling wheels on the side. A type now fast disappearing because the more modern propeller or screw craft is easier and more economical to operate. Stern -Wheeler — Form of boat used on shallow streams of tortuous current, like the Mississippi. The motive power is obtained from a large wheel at the stern of the craft. Switchback — A system of zig-zag tracks so arranged that by running forward and backward alternately a train is enabled to climb an otherwise insurmountable grade. 412 TERMS USED IN TRANSPORTATION. Tariff — A schedule of charges for the transportation of goods or people. In the freight line there is generally a special tariff for every commodity in the movement of which there is an unusually large business. Telescoping — When trains or engines meet in col- lision and are forced through, or partly through, one an- other. Terminals — The ends or extremities of a transpor- tation line. New York and Buffalo are the terminals of the New York Central road. Through Freight — Goods bound to the terminal of a transportation line. Goods shipped by the Michigan Central from Chicago to Buffalo would be through freight because Buffalo is a terminal of the road. The same goods shipped to Buffalo over a road running through to New York would be way or local freight. Toll — Charge made for the use of canals. The amount is regulated by the tonnage of the vessel. Tonnage — Generally used to designate the cargo capacity of vessels. Also used to designate their size. There is a great difference in displacement and tonnage capacity. A vessel of 3,000 tons size or displacement, may not have a cargo capacity of 2,000 tons. It depends upon the style of interior construction. Tonnage is also employed by railway men in expressing the amount of freight hauled. The usual expression is, "The ton- nage in February was 10,695." Train Dispatcher — The official who sends out trains and directs their movements while in transit. Train Mileage — The mileage travelled by train in contradistinction to ear mileage. Thus a train of ten TEEMS USED IN TRANSPORTATION. 413 cars would have a mileage ten times greater than one car travelling the same distance. Train Orders — Instructions by wire for the move- ment of trains. These are invariably issued by the train dispatcher. Train Schedule — The time card by which the move- ment of trains is governed. Traffic — Goods or passengers carried by a transpor- tation line. Thus, if an unusually large amount of corn (or other grain), is being shipped it is customary to speak of it as a heavy corn traffic. Transshipment — Reshipment from one carrier to another. Goods bound from Chicago to Liverpool are transshipped from car to vessel at New York, or some other Atlantic seaport. Trunk Lines — The great main railway systems which, with their branches and auxiliaries, are in posi- tion to be operated successfully without depending upon other lines. Such systems as the New York Central, the Pennsylvania, Union Pacific, Santa Fe, Baltimore & Ohio, Erie and Illinois Central are trunk lines. Water-and-Rail Route — A combination of rail and water transportation. The Lackawanna railway, for instance, is a water-and-rail line. It carries bulk cargoes like grain from Chicago to Buffalo by lake steamer, and at Buffalo transfers the cargoes to trains bound for tide- water. Wharfage — Fee charged at most ports for the use of a dock or wharf. Some cities, in order to encourage the shipping industry, give free wharfage* but in most instances the use of docks must be paid for. "Remember that man's life lies all within this present, as it were but a hair's-breadth of time; as for the rest, the past is gone, the future yet unseen. Short, therefore, is man's life, and narrow is the corner of the earth where- in he dwells." — Marcus Aurelius. "There is no man so good who, were he to submit all his thoughts and actions to the laws, would not deserve hanging ten times in his life." — Montaigne. •> UNIVERSITY OF ILLINOIS-URBANA 3 0112 084206686