During this period it will be observed that the most marked increase in the tonnage of products of manufactories was during the year covered by this report.

Where can figures relating to the industries of Pennsylvania be found which will more clearly indicate the magnitude of business within the confines of this State than those above referred to which show the tonnage of products of manufactories to have been 132 millions in a single year with an increase in that year of 25 millions.

Merchandise.

It would be unreasonable to suppose that the tonnage of merchandise had not increased at a pace somewhat commensurate with conditions surrounding the increase of manufacturing interests, for in the increase of products of manufactories there is of necessity an increase in the number of employes, and to some extent a proportionate increase at least in the production of commodities which make up merchandise. This view of the case is sustained in that in 1901 there were 123 million tons of merchandise transported; in 1902 nearly 14 million; in 1903, 15 million; in 1904, 14 million; in 1905 17 million, and in 1906 nearly 19 million tons.

To this may be added miscellaneous shipments amounting to over 33 million tons, while such miscellaneous shipments in 1901 amounted to about 223 million tons.

Total Number of Tons of Freight Earning Revenue.

In the first column of consolidated Table I will be found an assemblage of the different classifications of freight shipped during the year above referred to, showing in detail the amount of such tonnage on each of the operating railroads whose lines are in whole or in part in Pennsylvania.

Of this total tonnage the Baltimore and Ohio has carried about 55 million tons; the Delaware, Lackawanna and Western 18 million tons; the Erie 35 million tons; the Lake Shore and Michigan Southern 34 million; the Lehigh Valley 25 million; the New York Central and Hudson River 43 million; the Pennsylvania 1123 million; the Pennsylvania Company 794 million; the Philadelphia and Reading 44 million, and the Pittsburg, Cincinnati, Chicago and St. Louis 37 million.

These companies of course carried the bulk of the total tonnage carried by all companies reporting to this office, which amounted to 710,829,768. Twenty years ago, the total number of tons carried earning revenue was 216,979,820.

In 1901 the total tonnage was about 478 millions; in 1902, 524 millions; in 1903, 566 millions; in 1904, 563 millions; in 1905, 626 million.

Number of Tons of Freight Carried One Mile.

As it was necessary, in order to make reliable deductions, to reduce the passenger traffic to a single mile basis to show the average receipts per passenger per mile, so in the freight traffic it is necessary to reduce the tonnage to a single mile basis in order that similar deductions may be made with reference to receipts per ton per mile.

Having consolidated the reports of all operating companies, it is found that the tonnage carried by all railroads is the equivalent of carrying 83,168,159,935 tons of freight one mile.

Average Distance Haul of One Ton of Freight.

From a computation made it is found that the average distance of the haul of a ton of freight on the Baltimore and Ohio is 194 miles; on the Delaware, Lackawanna and Western 166 miles; on the Erie 147 miles; on the Lake Shore and Michigan Southern 160 miles; on the Lehigh Valley 170 miles; on the New York Central and Hudson River 197 miles; on the Pennsylvania 159 miles; on the Pennsylvania Company 70 miles; on the Philadelphia and Reading 92 miles; and on the Pittsburg, Cincinnati, Chicago and St. Louis 100 miles.

The average distance of course is greatest upon through or trunk lines of railway and smallest on short lines of railway.

Total Freight Revenue.

The total freight revenue of all roads in the State is $525,579,219. In 1901 the amount was 353 million dollars; in 1902, 379 million dollars; in 1903, 432 million; in 1904, 443 million; in 1905, 469 million.

A comparison of the ten leading railroads as to the total revenue derived from the transportation of freight is of interest. The Baltimore and Ohio received about 60 million dollars; the Delaware Lackawanna and Western 22 million; the Erie 32 million; the Lake Shore and Michigan Southern 28 million; the Lehigh Valley 27 million; the New York Central and Hudson River 53 million; the Pennsylvania 105 million; the Pennsylvania Company 33 million; the Philadelphia and Reading 32 million; and the Pittsburg, Cincinnati, Chicago and St. Louis 23 million.

The figures showing the freight revenue of these ten leading companies are convincing as to the public functions of these corpora

tions in transporting the products of farms, of forests, of manufactories and of other sources of tonnage which make up the freight transported on the railroads in whole or in part in Pennsylvania.

Average Amount Received for Each Ton of Freight.

As before indicated the total number of tons of freight carried during the year was 710,829,768, for which there was received a revenue of $525,579,219, making an average of about 73 cents per ton.

The disparities which are observed in the amounts received per ton of freight by the ten leading companies are not wanting in interest. For instance, the Baltimore and Ohio received $1.08 per ton; the Delaware, Lackawanna and Western $1.22; the Erie 91 cents; the Lake Shore and Michigan Southern 82 cents; the Lehigh Valley $1.06; the New York Central and Hudson River $1.23; the Pennsylvania 93 cents; the Pennsylvania Company 42 cents; the Philadelphia and Reading 72 cents; the Pittsburg, Cincinnati, Chicago and St. Louis 63 cents. The varying amounts received per ton of freight are due to the distance of the haul of freight. In other words, those railroads which show the longest distance of the haul of freight will show the highest average of receipts per ton of freight.

Average Receipts Per Ton Per Mile.

As hereinbefore indicated, it is found that the total freight tonnage is 710,829,765. This reduced to a mileage basis is equivalent to the carrying of 83,168,159,935 tons of freight one mile. Upon such hauling of freight the revenue has been $525,579,219, making an average amount received per ton per mile of .632 of a cent.

In 1901, the average receipts per ton per mile for all roads reporting to this office were .608 of a cent; in 1902, .628 of a cent; in 1903, .640 of a cent; in 1904 .656 of a cent; in 1905 .645 of a cent. The slight changes in these receipts per ton per mile since 1900 may not impress one with their limitless importance, but the change from .608 of a cent in 1901 to .645 of a cent in 1905 means many millions of dollars to the railroad companies for the transportation of commodities. The changes in the last six years, not including the report for 1906, show a considerable increase, the only exception being for the year 1905, when there was a slight falling off, and a further falling off in 1906.

The effect upon the total revenue of large railroad corporations produced by the slight changes in the receipts per ton per mile, as indicated above, is shown in the following calculation. Had the Pennsylvania Railroad Company received this year the same rate per ton per mile that it did last year, its freight revenue instead of being $105,594,764 would have been $108,438,868,

The following table will furnish the means for an interesting study in the changes that are produced by an increase or falling off in the average receipts per ton per mile. This table, as will be seen, relates to the ten leading transportation companies:

TABLE SHOWING THE "AVERAGE RECEIPTS PER TON PER MILE" FOR THE YEARS 1902, 1903, 1904, 1905 AND 1906, ON THE RAILWAYS MENTIONED.

Freight Earnings Per Mile of Road.

The freight earnings of the Baltimore and Ohio per mile are $14,889 for the year covered by this report; of the Delaware, Lackawanna and Western $27,441; of the Erie $17,283; of the Lake Shore and Michigan Southern $19,024; of the Lehigh Valley $19,020; of the New York Central and Hudson River $15,021; of the Pennsylvania $26,888; of the Pennsylvania Company $23,971; of the Philadelphia and Reading $32,649; of the Pittsburg, Cincinnati, Chicago and St. Louis $16,886.

Several of these leading railroads are, generally, single track lines, and upon these it is not expected that the freight earnings per mile of road would be so great as upon those lines having more than one track. The freight earnings per mile of road on some of the smaller lines of railroad are less than $2,000. Of the ten leading roads, the one receiving the greatest amount per mile of road is the Philadelphia and Reading, while of all the railroads in the State the one reported to have received the highest amount is the Monongahela Connecting Railway, which received $123,879. This of course is a short line and its charges for freight are probably beyond the usual rate per ton per mile and are for hauling short distances, no small amount of the same being for the transfer of cars from manufacturing establishments to main lines of transportation.

EARNINGS AND INCOME.

The income of steam railroads is generally classified with reference to the passenger earnings, freight earnings, other earnings from

operation, total earnings from operation, income from other sources including interest on bonds, dividends on stock, rentals, etc. These classifications cover the total earnings of steam railways. Table J, of the consolidated tables relating to steam railways, pertains to the classifications above referred to.

Total Earnings and Income.

The income of the Baltimore and Ohio Railroad, $80,904,240, is made up of $17,029,389 from passenger earnings; $60,362,667 from freight earnings; other earnings from operation $45,812; total earnings from operation $77,437,868; income from other sources including interest, dividends, etc., $3,466,372.

It will be seen from the above that all of the nearly 81 million dollars of this corporation's receipts come from operation except about 3 million dollars which come from rentals, interest and dividends.

The Delaware, Lackawanna and Western has a total income of $33,789,525, but of this $3,508,791 are derived from interest, dividends, rentals, etc., the balance being the total earnings from operation.

The Erie's total earnings and income amount to $47,760,971. All but $2,087,225 have been received as earnings from operation.

Forty-five million three hundred and thirty-four thousand eight hundred and forty-one dollars represent the total earnings and income of the Lake Shore and Michigan Southern, $4,208,663 being the income derived in the way of interest, dividends on stock, rentals, etc.

The earnings and income of the Lehigh Valley amount to $33,598,708, all from operations except $808,852, this being the amount received as interest, dividends, rentals, etc.

The total earnings and income of the New York Central and Hudson River amount to $95,944,066, but of this amount $6,705,901 are derived from interest, dividends and rentals.

The total earnings and income of the Pennsylvania are $154,388,070, but of this amount a goodly percentage comes from interest, dividends and rentals, the amount being $12,635,449.

The Pennsylvania Company has a total earnings and income ac count of $51,522,294, but a still greater percentage is derived from interest on bonds, dividends on stock and rentals, the amount being $9,035,251.

The total earnings and income of the Philadelphia and Reading are $40,608,149, of which amount $1,028,338 are derived from interest on bonds, dividends on stock, rentals, etc.

The total earnings and income of the Pittsburg, Cincinnati, Chicago and St. Louis amount to $33,611,170, all of which comes from