CAPITALIZATION OF RAILWAY PROPERTY.

Under "Capitalization of railway property" are included all forms of negotiable railway securities. It covers the various kinds of stock that are used, and all sorts of obligations, excluding only current or temporary liabilities. It is not claimed that the par value of these securities measures in any way the real value of railway property.

The amount of railway capital outstanding on June 30, 1901, was $11,688,147,091. This amount, on a mileage basis, represents a capitalization of $61,531 per mile of line. Of the total capital stated, $5,806,566,204 existed in the form of stock, of which $4,475,408,821 was common stock and $1,331,157,383 preferred stock. The amount which existed in the form of funded debt was $5,881,580,887. This amount comprised the following items: Mortgage bonds, $5,048,811,611; · miscellaneous obligations, $545,780,485; income bonds, $218,872,068, and equipment trust obligations, $68,116,723. The amount of current or temporary liabilities, which is not included in the foregoing figures, was $620,401,849, or $3,266 per mile of line.

The amount of capital stock paying no dividends was $2,828,991,025, or 48.73 per cent of the total amount outstanding. Omitting equipment trust obligations, the amount of funded debt which paid no interest was $361,905,203. Of the stock-paying dividends, 8.82 per cent of the total amount outstanding paid from 1 to 4 per cent, 13.38 per cent paid from 4 to 5 per cent, 10.46 per cent paid from 5 to 6 per cent, 8.70 per cent paid from 6 to 7 per cent, and 6.67 per cent paid from 7 to 8 per cent. The amount of dividends declared during the year was $156,735,784, which is equivalent to a dividend of 5.26 per cent on the amount of stock on which some dividend was declared. The amount of dividends declared in 1900 was $139,597,972. The amount of mortgage bonds paying no interest was $198,675,968, or 3.94 per cent; of miscellaneous obligations, $78,072,489, or 14.31 per cent, and of income bonds, $85,156,746, or 38.91 per cent.

PUBLIC SERVICE OF RAILWAYS.

The number of passengers carried during the year ending June 30, 1901, as shown by the annual reports of railways, was 607,278,121, showing an increase for the year of 30,412,891. The number of passengers carried 1 mile—that is, the passenger mileage-was 17,353,588,444, there being an increase in this item of 1,314,581,227. There was an increase in the density of passenger traffic, as the number of passengers carried 1 mile per mile of line in 1901 was 89,721, and in 1900, 83,295.

The number of tons of freight carried during the year was 1,089,226,440, a decrease of 12,453,798 being shown. The number of tons of freight carried 1 mile-that is, the ton mileage-was 147,077,136,040.

The increase in the number of tons carried 1 mile was 5,477,978,770. The number of tons carried 1 mile er mile of line was 760,414. These figures show an increase in the density of freight traffic of 25,048 tons carried 1 mile per mile of line.

The report contains a summary of freight traffic analyzed on the basis of a commodity classification, and also a summary indicating in some degree the localization of the origin of railway freight by groups of commodities. A summary giving the mileage of loaded and of empty freight cars in 1901 appears for the first time in this report.

The average revenue per passenger per mile for the year ending June 30, 1901, was 2.013 cents. For the preceding year it was 2.003 cents. The revenue per ton of freight per mile was 0.750 cent, while for 1900 it was 0.729 cent. An increase in earnings per train mile appears for both passenger and freight trains. The average cost of running a train 1 mile also increased. The percentage of operating expenses to earnings was 64.86 per cent.

EARNINGS AND EXPENSES.

For the year ending June 30, 1901, the gross earnings from the operation of the railways in the United States arising from the operation of 195,561.92 miles of line were $1,588,526,037, being $101,481,223 more than for the fiscal year 1900. The operating expenses were $1,030,397,270, having increased in comparison with the year preceding $68,968,759. Gross earnings were in detail as follows: Passenger revenue, $351,356,265-increase, as compared with the preceding year, $27,640,626; mail, $38,453,602-increase, $701,128; express, $31,121,613-increase, $2,705,463; other earnings from passenger service, $8,202,982—increase, $41,960; freight revenue, $1,118,543,014— increase, $69,286,691; other earnings from freight service, $4,065,457— increase, $719,545; other earnings from operation, including unclassified items, $36,783,104-increase, $385,810. Gross earnings from operation per mile of line were $401 more than for the year ending June 30, 1900, being $8,123.

The operating expenses of the railways already stated were distributed among the four general divisions, as follows: Maintenance of way and structures, $231,056,602-increase, $19,836,081; maintenance of equipment, $190,299,560-increase, $9,125,680; conducting transportation, $565,265,789-increase, $36,149,463; general expenses, $42,566,553-increase, $3,237,788; undistributed, $1,208,766. The operating expenses amounted to $5,269 per mile of line, or $276 more than for the year immediately preceding. The report contains an analysis of the operating expenses for the year, in accordance with the 53 accounts embraced in the official classification of such expenses, with a statement of the percentage of each item of the classified expenses for the years 1895 to 1901.

The income from operation, or the amount representing the difference between gross earnings and operating expenses, commonly termed net earnings, was $558,128,767, this item showing an increase as compared with the previous year of $32,512,464. The average amount of net earnings per mile of line for the year ending June 30, 1901, was $2,854, and for 1900, $2,729. The amount of income received from sources other than operation was $179,746,449. Included in this amount are the following items: Income from lease of road, $111,637,907; dividends on stocks owned, $28,822,788; interest on bonds owned, $12,055,312, and miscellaneous income, $27,230,442. The total income of the railways, $737,875,216—that is, the income from operation, increased by income from other sources-is the item from which fixed charges and analogous items are deducted in order to ascertain the amount available for dividends. The total deductions of this character amounted to $496,363,898, leaving $241,511,318 as the net income for the year available for dividends or surplus.

The amount of dividends declared during the year (including $10,752 other payments from net income) was $156,746,536, leaving as the surplus from the operations of the year ending June 30, 1901, $84,764,782. The surplus for the year 1900 was $87,657,933. In the amount stated for deductions from income, $496,363,898, are embraced the following items: Salaries and maintenance of organization, $532,299; interest accrued on funded debt, $262,094,838; interest on current liabilities, $5,526,572; rents paid for lease of road, $112,644,822; taxes, $50,944,372; permanent improvements charged to income account, $31,938,901; other deductions, $32,682,094.

In the statistical report for the year 1900 was inserted a new summary of the taxes paid by railways, showing the taxes in gross and per mile of line as assigned to each State and Territory. In the present report this summary has been continued, and a second summary is introduced, showing taxes classified on the basis of payment according to the various laws under which railways are taxed. It is remarked that the task of classifying taxes according to the laws of the several States is a most difficult one, and that the general fact, to be read from the classification presented, is that ad valorem taxation instead of specific taxation is still the rule in the American system of taxing railways, and that in the application of this rule real and personal property rather than the valuation of stocks and bonds is made the basis for computation.

It is perhaps appropriate to explain that the foregoing figures relating to the income and expenditures of railways are compiled from the annual reports made to the Commission by two classes of railway corporations. Operating reports are filed by such companies as maintain full operating accounts, and financial reports by such companies as have leased their property to others for operation, their own income,

apart from that derived from investments, being the annual fixed or contingent rentals paid to them by their lessees, from which they make their own disbursements. In consequence, certain items of income and of expenditure are necessarily duplicated in comprehensive summaries which are compiled from reports of both classes. The source and extent of such duplications are clearly indicated in the report, which contains also an income account of the railways of the United States, considered as a system. Intercorporate payments are eliminated from the account presented in this form by making use, where appropriate, of balance amounts. The income account as represented in this form

is here repeated.

Comparative income account of the railways of the United States, considered as a system, for the years ending June 30, 1901 and 1900.

The number of railways in the hands of receivers on June 30, 1901, was 45, from which it appears that there was a net decrease of 7, as compared with the corresponding date of the year previous. The number of railways placed in the charge of receivers during the fiscal year 1901 was 10, and the number of railways taken from the management of receivers was 17. The roads under receivers operated a mileage of 2,497.14 miles, of which 2,028.57 miles were owned by them. the roads managed by receivers 2 had an operated mileage in excess of 300 miles, 4 between 100 and 300 miles, and 31 less than 100 miles. Returns for all roads in the custody of the courts are not always available, but as nearly as ascertained it appears that the capital stock rep

Of

resented by the railways in the charge of receivers on June 30, 1901, was $49,478,257, funded debt $54,748,662, and current liabilities $14,183,230. These figures show a decrease in capital stock represented, as compared with 1900, of $58,618,598 and in funded debt of $52,644,360.

RAILWAY ACCIDENTS.

The summaries of railway accidents contained in the report for the most part differ from those appearing in reports for prior years, being presented in greater detail, and especially for the reason that accidents are classified under the general heads of "Accidents resulting from the movements of trains, locomotives, or cars," and "Accidents arising from causes other than those resulting from the movement of trains, locomotives, or cars." Accident statistics are of peculiar interest because they bear a close relation to State and national legislation for the protection of railway employees and the public.

The total number of casualties to persons on account of railway accidents, as shown for the year ending June 30, 1901, was 61,794, the number of persons killed having been 8,455, and the number injured, 53,339. Of railway employees, 2,675 were killed and 41,142 were injured.

The casualties occurred among three general classes of employees, as follows: Trainmen, 1,537 killed, 16,715 injured; switchmen, flagmen, and watchmen, 175 killed, 1,190 injured; other employees, 963 killed, 23,237 injured. The casualties to employees resulting from coupling and uncoupling cars were: Employees killed, 198; injured, 2,768. The corresponding figures for the year 1900 were: Killed, 282; injured, 5,229. The casualties connected with coupling and uncoupling cars were assigned as follows: Trainmen killed, 163; injured, 2,377; switchmen, flagmen, and watchmen killed, 25; injured, 284; other employees killed, 10; injured, 107. The casualties due to falling from trains, locomotives, or cars in motion were: Trainmen killed, 376; injured, 3,147; switchmen, flagmen, and watchmen killed, 26; injured, 222; other employees killed, 61; injured, 452. The casualties due to jumping on or off trains, locomotives, or cars in motion were: Trainmen killed, 65; injured, 1,983; switchmen, flagmen, and watchmen killed, 11; injured, 144; other employees killed, 60; injured, 423. The casualties to the same three classes of employees from collisions and derailments were: Trainmen killed, 464; injured, 2,508; switchmen, flagmen, and watchmen killed, 11; injured, 81; other employees killed, 60; injured, 566.

The number of passengers killed during the year was 282, and the number injured 4,988. The corresponding figures for the previous year were 249 killed and 4,128 injured. As a result of collisions and derailments 110 passengers were killed and 2,208 injured. The total number of persons other than employees and passengers