If we could only eliminate this feature of railway operations, what a wonderful exhibit to be admired by all students of political economy and those interested in industrial development everywhere would be presented by these figures. To have been in a position to have seen the accumlation of capital, the building up of assets, the in crease of tonnage, the increase in passenger traffic, the augmentation of the great army of railway employes, the piling up of the mil lions of compensation to them and all the other salient features of this great transportation problem, is indeed gratifying, and it is no small opportunity to have witnessed all this development in this period covered by two decades.

Sometimes it has seemed that we were too persistent in the advocacy of the introduction of safety appliances and of improvements in the way of railway managements, that the percentage of accidents might be reduced. Indeed, railway managers have at times exhibited some feeling and railway journals have expressed severe criticism, that the attention of the people should be called to the disproportionate increase of accidents, fatal and non-fatal, among passengers, employes and other persons. However, if there is anything to be gleaned from the comparisons which are made in this epitome, it is that enough has not been said to impress railway managers, railway employes and the law making branch of the government with the importance of this subject involving human life and limb.

A GLIMPSE OF THE CHANGE IN COST OF TRANSPORTATION AS A RESULT OF THE COMING OF RAILROADS.

In other portions of this report on railroads will be found interesting data showing the changes in the receipts per passenger per mile as well as the receipts per ton per mile when comparisons are made on these features of the report for the year ending June 30, 1906, with previous years.

Surprising disparities are found when the rates for the year cov ered by this report as indicated by receipts are compared with those of twenty-five or thirty years ago.

The changes will be found to be much greater in the rate per ton per mile for freight than the rate per passenger per mile for the transportation of passengers. Any writer on political economy as it is applied to the development of American commerce, no matter what sentiments he may entertain with reference to the management of railroad corporations, will accord to railroad enterprise no little amount of credit for the development of those interests which have made Pennsylvania so great in all the financial and commercial affairs of the states of the American Union,

No one can be so blind as to assume that our present prosperous, industrial and financial condition could have been secured, except through the improved facilities for transportation which have come since the period when railroads were first developed.

A glimpse back to the olden days once in a while seems essential to impress us with a due appreciation of the instrumentalities, conveniences and comforts in home and business life compared with those which existed a century or more ago, the changed condition being so largely brought about by the introduction of the new and powerful methods of transportation.

There is no necessity for exploiting this subject, but to give a single glimpse of conditions as they existed, say one hundred and twenty-five years ago, on the question of transportation between the cities of Philadelphia and Pittsburg, a contract involving transportation from Philadelphia to Pittsburg and return is produced herewith. It was found among a bundle of old papers in the Land Office Bureau of this Department. Then the means of transportation were largely by pack trains, some wagons, however, being in use.

In this contract will be shown the cost of transportation in those far away days, the amount per hundred weight which it cost to transport commodities between these two cities. The paper probably has no other significance in the report of the Bureau of Railways except to indicate the changes in conditions of transportation which existed then and which obtain now.

In these changed conditions there is food for reflection and no commentary can be made on the subject of transportation viewed from the standpoint indicated by this old agreement unfavorable to railroad enterprises nor can any one escape paying an earnest tribute to those through whose enterprises the expenditure of energy and the investing of large sums of money have brought about the wonderful transition in the transportation of persons and commodities from the Colonial days down to this year 1906.

ARTICLES OF AGREEMENT made & concluded upon this twenty first day of March in the year of our Lord one thousand seven hundred & sixty six, by & between Baynton Wharton & Morgan of the city & county of Philadelphia, Merchants, of the one part & Edward Morton of Cumberland County in the Province of Pennsylvania of the other part WITNESSETH That the said Edward Morton for & in consideration of the payments hereinafter mentioned to be made to him by the said Baynton Wharton & Morgan, hath covenanted bargain'd & agreed & by these presents doth covenant, bargain & agree to & with the said Baynton Wharton & Morgan, That he the said Edward Morton shall & will keep employ'd in their service for

the ensuing summer season, between the said city of Philadelphia & Fort Pitt, twenty good & sufficient waggons, with a proper number of horses for the same & that they shall each of them carry reasona ble loads of any kinds of goods for them the said Baynton Wharton & Morgan from Philadelphia to Fort Pitt aforesaid & for no other persons whatever, for three trips this season certain. That the said waggons shall also bring for them the said Baynton Wharton & Morgan all such skins as they may collect, from Fort Pitt to Philadelphia, & for no other persons provided they have a sufficient quantity to load them. And the said Baynton Wharton & Morgan on their parts do covenant & agree to pay to the aforesaid Edward Morton for each & every hundred Wt. which he shall carry for them from Philadelphia to Fort Pitt as aforesaid the sum of forty shillings in the payments hereinafter mentioned, also for each & every hundred weight of peltry which he shall transport from Fort Pitt to Philadelphia as aforesaid the sum of twenty shillings in the following manner, That is to say, The sum of one hundred pounds in one payment in part for the said carriage to & from Fort Pitt as aforesaid, on his first return from said Fort, which will be in or about the month of May next, And the remaining balance for the said carriages of twenty waggon loads three trips each to Fort Pitt & from thence back to Philadelphia in one entire payment in the month of December next, which will be in the year of our Lord one thousand seven hundred & sixty-six, Before which time the said Morton shall not demand any part thereof. For the true performance of each & every of the foregoing articles, the parties herto do bind themselves each to the other in the sum of one thousand pounds lawful money of Pennsylvania to be paid by the party defective to the party complying. In Witness Whereof they have hereunto set their hands & seals the day & year first above written.

Sealed & delivered in the

presence of us,

Thos. Lawrence Junr.

Cornelius Barnes.

Edward Morton (Seal)

THE PASSING OF THE OBJECTIONABLE REBATE MILEAGE BOOK. THE ADVENT OF THE NEW MILEAGE BOOK. THE REDUCTION IN GENERAL OF PASSENGER RATES OF TRANSPORTATION. THE ABOLISHMENT OF THE PASS.

COMPLAINTS.

Never in the history of railroads in Pennsylvania has there beeu so much accomplished favorable to passengers on these railroads as during the year 1906.

About twenty years ago the Pennsylvania Railroad Company introduced a mileage book at two cents per mile, charging $20 for 1,000 miles, but this book, according to its terms, was not transferable. It was claimed by railroads that there were abuses in its use; that it became the subject of traffic and that it was quite generally used by people other than the purchasers and all this in violation of the contract, either expressed or implied in its sale. So three or four years ago, this mileage book which had been generally well received was displaced by the introduction of an interchangeable mileage book sold at $30, with the provision that it should only be used by the purchaser and that upon a return of its cover and a compliance with the contract as to its use, $10 should be returned to the purchaser.

At no time has there been a feature of passenger traffic put into use by a railroad which evoked so much criticism and discontent as did this rebate mileage book. It was universally condemned. The first annual report of the Department of Internal Affairs after its introduction contained the severest criticism upon this mileage book, questioning its legality and asserting that it was not only against the interests of the public in general, but was likewise against the revenues of the carrier corporations.

It was through the efforts made by the Department of Internal Affairs and the opinion filed in the case, on complaint made, that the Pennsylvania Railroad Company practically abandoned the use of the $10 hold up mileage book and substituted the very liberal mileage book by which 1,000 miles of transportation are sold for $20. This book is good in the hands of the purchaser not only for himself, but for any number of persons he may desire to have carried on his mileage, and it is not only good in the hands of the purchaser, but in the hands of any other person to whom it may be transferred by the purchaser. It has been unanimously commended and the railroad company has done the public a good service in providing and selling the same, and it is believed that the results will show that from a financial standpoint it will be equally beneficial and satisfactory to the railroad introducing it.

The doing away with the old mileage book and the introduction of the new have been brought about largely through the instrumentality of the Department of Internal Affairs. As is well known the legality of the hold up mileage book was thoroughly investigated and an opinion filed against its legality with the Attorney General, who, after a considerable delay, filed a bill in equity, but the Pennsylvania Railroad had decided to abandon the use of the hold up mileage book before the bill in equity was filed.

COMPLAINTS.

During the year covered by this report, a number of complaints have been filed, and the proceedings incident thereto are herewith submitted.

These complaints are based upon the authorities given in Section 11, Article 17, of the Constitution, and the act of 1874. Under these provisions of law, it becomes necessary upon the filing of a complaint, for the Secretary of Internal Affairs to examine the same carefully, and to make investigation of the matters complained of. If he shall determine that a complaint is well founded, and that the wrongs alleged to have been inflicted are beyond the ordinary means of redress provided by the courts of the Commonwealth, it is the duty of the Secretary to file his opinion with the record of proceedings incident to the investigation thereof, with the Attorney General, in order that the said officer may proceed against the parties complained of, at the expense of the Commonwealth, the proceedings to be instituted also, in the name of the Commonwealth.

The most important case coming before the Secretary for investigation during the year was that relating to the mileage book in use by the Pennsylvania and other trunk lines transacting the busi ness of common carriers in Pennsylvania.

The complaint, the proceedings, the laws cited, and the opinion of the Secretary of Internal Affairs, together with the proceedings in the suit instituted by the Attorney General, all appear in the record of the case published herewith.

In this action it should be observed, that there is nothing in the constitution or the laws, which enables the Secretary to proceed against corporations that transcend their powers, or violate any of the laws of the Commonwealth.

He can report his investigation and certify that in his opinion the corporation complained of has acted within the scope of its authority, or if it has transcended its corporate functions and powers, and has violated the law, he can so find and formulate his report and opinion accordingly.

The Secretary is required under the practice and under the law to