ed Published every Saturday by the Simmons-Boardman Publishing Company, 34 North Crystal Street, East Stroudsburg, Pa., with execu- tive offices at 30 Church Street, New York All communications should be ad- dressed to the New York office, 30 Church Street, or to the Chicago office, 105 West Adams Street SaMvuEL O. Dunn, Chairman of Board Henry Lee, President Lucius B. SHERMAN, Vice-Pres. Cecit R. Mitts, Vice-Pres. Roy V. Wruicut, Vice-Pres. and Sec. Freperick H. Tuompson, Vice-Pres. Georce Suate, Vice-Pres. Extmer T. Howson, Vice-Pres. F. C. Kocn, Vice-Pres. Joun T. DeMortt, Treas. CHICAGO 105 West Adams St. WASHINGTON 17th and H. Streets, N. W. CLEVELAND Terminal Tower SAN FRANCISCO 215 Market St. Editorial Staff SaMueEt O. Dunn, Editor Roy V. Wricut, Managing Editor Etmer T. Howson, Western Editor H, F. Lane, Washington Editor B. B. Apams C. B. Pecx W. S. LacHer ALFRED G. OEHLER F. W. KRrakrGerR E. L. Woopwarp J. G. Lyne J. H. Dunn D. A. STEEL R. A. Doster Joun C. Emery Marion B. RICHARDSON H. C. Witcox Neat D. Howarp Cuartes Laync Georce E. Boyp WattTerR J. Tart GarpNner C. Hupson M. H. Dick S. R. Hamitton The Railway Age is a member of the Associated Business Papers (A. B. P.) and of the Audit Bureau of Circulations (A. B. C.). Subscriptions, including 52 regular weekly issues, payable in advance and postage tree; United States and Possessions, 1 year, $6.00, 2 years, $10.00; Canada, including duty, 1 year, $8.00, 2 years, $14.00; foreign ee 1 year, $8.00; 2 years, Single copies, 25 cents each. Railway Age With which are incorporated the Railway Review, the Railroad Gazette and the Railway Age-Gazette. Name Registered U. S. Patent Office Vol. 92 April 30, 1932 No. 18 In This Issue “Plosting Power” Wins on E. 1 GE. .................555. Page 721 Tells how this road has effected big savings in material handling by replacing narrow-gage methods by lift trucks and tractors. Control of Truck Rates Is Essential ...... SOE eee 725 P. J. Neff, assistant vice-president, Missouri Pacific Lines, points out that the present chaos in the transportation situation injures taxpayers, railways, shippers and truckers alike. M-K-T Constructs Longest Lift Span ........................ 729 A description of this road’s new Missouri river bridge at Boonville, Mo.,- which is also distinguished by extensive use of silicon steel and a special design of electrical operating and control machinery. EDITORIALS Friends and Enemies of Railway Employees ................-.0000055 Sondiees, , ; 715 Common Sense Needed in Reducing Public Outlays ...........0 2.00... cc cece eee 717 GENERAL ARTICLES C. & O. Inaugurates “George Washington” Train ..............0e cc eeeees ania talon 718 “Ss ee” WR I, Be, he ee os thee e ernie ena densa cena nes ; 721 Freight Rates 6.77 Per Cent of Commodity Values ................c eee eeeeee ' 724 Control of Truck Hates Ig Honential, Gy PB. 5. TRG onc cccccccsecacccceseevsecss ‘ ; 725 Scope and Character of Pennsylvania A. C. Electrification, by J. V. B. Duer ...... 727 RP TEND IE, ops 0.09: orc wig Rao gine Gop rain oooh wren te los eleven inva Oia alelele e ete are ule : 728 Manne SEU SURE Te I inn. oe diver aneieniscanceatel shebilenneat esiecess cg 729 Water Tremeport Committee PRs 86 AGree q...oc. nico cccacccvccccceseseaseces ae 733 Grain Rate Case Reopened ............ Mipavevsis aiaiva tras Aaaede eaten stad) eeu oe : 735 Disastrows Crossing Collision Not Haplaimed ........-.cccccscccccessscccceveses wi 737 House Committee Completes Railroad Bile 2.0... ccciccccscccccscsvcecsceeces 738 Wracteenee “Cia amram Te oa ago oes 55 5 essing oa Sei owlows avienwisierine os ees ade 739 COMMUNICATIONS AND BOOKS .....................0.... : 740 Nl 55. od a wake aed Se aa Re TR Re aks cee ae) | ee sk iroce cts be +satanpe ea ewe ene beeen ET EE TT a ANNUAL REPORTS és re eS re I a cao bw pia wn wapodzsie/giarersinial wari Wecnsdia'4 4a. ie/Seiwle ae eel 754 The Baltimore and Obie- Ratisoad COMGGAY « .....c cc civcsccccescsccosccecsceees cae 755 ee ee INS otros cc cc wcmm ete waa se owed se vealee see's ; 757 The Railway Age is indexed by the Industrial Arts Index and also by the Engineering Index Service RAILWAY AGE April 30, 1932 THE PORT OF ALBANY CHOSE G-E EQUIPPED GAS-ELECTRICS The power plant of each locomotive includes two 160-hp. gasoline engines. These engines drive two G-E generators, which supply the electric power for four G-E traction motors. The trucks are also of General Electric design and manufacture. Total weight of locomotive, 48 tons MONG the first requirements of the new 300-acre Port District development at Albany, N. Y., were two locomotives for general switching and short-haul service. G-E equipped gas-electrics were chosen because of their inherent availability, over-all economy, and quiet, smokeless operation. These 320-hp. locomotives utilize General Electric transmission equipments with gasoline engines, a combination of power units that has won wide acceptance throughout the railroad industry. We urge you to investigate this type of motive power. Note, especially, 2 the coordinated design of the General Electric equipment — the gen- erator, motors, control, and air compressor are integral parts of a | transmission unit, which conforms to the characteristics of the engine and meets all service and operating conditions. The G-E office joi tue “c-e circie”—sunpays at $330 P.M. E.S.T. ON N. B.C. NETWORK OF 54 ( nearest you will gladly send complete information. General Electric STATIONS—WEEK-DAYS (EXCEPT SATURDAY) AT NOON Company, Schenectady, N. Y. aan | 355-2 ( GENERAL@ ELECTRIC | =_—_—S ———— 1°] RAILWAY AGE Friends and Enemies of Railway Employees A keen student of mankind and human. affairs has said, in substance, that very few people think, a larger number think they are thinking, while a large majority would shoot anybody who tried to make them think. The fact that many “leaders” in public affairs rely for their success upon the assumption that most people won’t think is well illustrated by an incident that occurred recently in the United States Senate. On April 18 C. E. Johnston, president of the Kansas City Southern, wrote a circular letter to all employees of that railway pointing out that it is necessary to balance the federal government budget, that “government employees from the highest to the lowest are paid by taxes collected from the people’, that “practically all industry has been forced to cut the compensation of its officers and employees”; and suggesting that “if you and the leading citizens oi your community or among your acquaintances feel that it is right that government employees should take a fair reduction in compensation, wire or write and tell your Congressman.” On April 22 Senator Long of Louisiana sent a copy of this letter to the desk of the Senate and had it read. Thereupon Senator Shipstead of Minnesota made a speech in which he said: “I think it comes with poor grace for those who represent the railroads and the banks now to come and talk about the (gov- ernment) deficit. Five hundred million dollars has been appropriated out of the federal treasury to help the banks and the railroads. * * * I think it comes with very poor grace for the presidents of railroad corporations and banks, after having received all they asked for at the hands of this Congress, to come now and repeat and repeat and repeat that the great mass of the people shall now be compelled to contribute to the hat that is being passed to make up the existing deficit.” Senator Long added that, “if senators will notice the letters that are received”—urging reductions of government expenditures—“they will find that they track the words of these railroad executives who came here and got the better part of two billion dollars of government money and are using their tim: and the government money to send out form letters to their employees to urge Congress to press down the wages of federal employees.” Of course, this statement was untrue, but why bother with the truth when falsehoods may serve better? Railway and Government Employment Why did Congress create the Reconstruction Fi nance Corporation, to whose loans to the banks and railroads these senators referred and what has its loans to do with reductions of government expendi- tures? It has been made clear repeatedly by President Hoover, General Charles G. Dawes, president of the Reconstruction Finance Corporation, Secretary of the Treasury Mills and others that these loans are not being made to help the banks and the railroads. They are being made in an effort to improve the general credit situation of the nation by stopping bank failures and preventing railroad receiverships and thereby to help to revive business and increase employment. Everybody concedes that there would have been no justification whatever for making these government loans merely to help the banks and railroads, and the fact that they are being ‘made is tortured by Senators Long and Shipstead into an answer to a railway presi- dent’s advocacy of a reduction of government ex- penditures entirely for the purpose of creating sentiment against needed reductions of government expenditures. “Labor” is the weekly political organ of the “Asso ciated Recognized Standard Railroad Labor Organi- zations.” In its issue of April 19 it published an editorial attacking proposed reductions in governmen: expenditures under the heading “Workers Are Hard- est Hit by ‘Economy’ Plan.” It also published promi- nently a statement by William Green, president of the American Federation of Labor, opposing reductions in the wages of government employees. No better example could be afforded of the thoughtless thinking 715 716 RAILWAY being done by many who in this crisis should be doing real and constructive thinking on behalf of those who have given them the duties and responsibilities of leadership. Regardless of whether the wages per day or hour of government employees should be reduced, let us see whether it is or is not to the interest of railway employees that all government expenditures, national, state and local, should be reduced. In 1913 the total earnings of the railways were about $3,200,000,000, while in 1931 they were about $4,300,000,000, an in- crease of about 33 per cent. From these earnings the wages of railway employees were and had to be paid because there was no other source from which to pay them. In 1913 the total cost of all government in this country was about $2,900,000,000—slightly less than the total earnings of the railways—while in 1931 it was about $14,000,000,000, an increase of about 400 per cent. The increase in the government expendi- tures from which the wages of government employees were paid was about twelve times as great as the increase in railway earnings from which railway wages were and had to be paid. The railways in 1913 had 1,800,000 employees, and in 1931 about 1,300,000, a reduction of 500,000. The national, state and local governments in 1931 had several times as many employees as in 1913. Why Has Railway Employment Declined? Why did the railways in 1931 have about 500,000 less employees than in 1913, and about 400,000 less than in 1929? Because they did not have enough traffic and earnings in 1931 to employ more. Why did the governments in 1931 have more employees than in 1929, and several times as many as in 1913? Because all these governments greatly expanded their activities from 1913 to 1929, and did not contract them after 1929. How did these governments get the money with which to expand their activities up to 1929 and to maintain them during 1930 and 1931, the worst period of depression in all the history of the world? By taxation levied directly or indirectly upon every piece of property, every business and every individual in the United States, including rail- ways and railway employees. Did this vast increase, and this maintenance, of government expenditures and taxation help railway employees? It has been one of the principal causes of the present depression and probably has been the principal cause of its pro- longation and deepening, as a result of which the railways have lost a vast amount of traffic. Another influence adversely affecting the railways has been that a large part of the increased expenditures of government have been so made upon highways and waterways as to divert a large amount of traffic from the railways. Owing to the depression and to this diversion of business to highways and waterways, the railways in AGE April 30, 1932 the first quarter of 1932 had about 45 per cent less traffic and earnings than in the first quarter of 1929; and that is the reason why they employed 31 per cent fewer men, or about 500,000 less, than in the first quarter of 1929. And why did President Johnston of the Kansas City Southern send a circular letter to the employees of that railway urging them to use their influence in behalf of a reduction of government ex- penditures? “The sooner we meet this situation and face it courageously”, he said, “the sooner we will get back to normal’”—in other words, the sooner we will end the depression and thereby increase the traffic and earnings of the railways and enable them to employ more men. The Crime of Mr. Johnston The crime, therefore, for which Senators Long and Shipstead pretended to indict Mr. Johnston was that of seeking a reduction in the wages of government em- ployees similar to that made in the railroad and almost every other industry, while the crime for which they actually indicted him was that of trying to get rail- way employees to use their influence to so change con- ditions as to increase their own employment and pro- tect themselves from further reductions in wages. In other words, he committed the same crime which, in another way, is being committed by railway employees all over the country, who are participating in the or- ganization of citizens and taxpayers associations to reduce the subsidization and increase the regulation of carriers by highway and waterway. His objective was the same as theirs—to restore traffic to the rail- ways and increase employment by them. The most important economic problem before the American peo- ple, including railway employees, is that of ending the depression and reviving genéral business. Only by reviving general business will the traffic of the rail- ways increase enough to enable them largely to increase the number of their employees. One of the essentials to reviving private business and railroad traffic is a drastic reduction of government expenditures. The more the governments spend the more taxes they must collect from private industry and commerce, including the railways. The more taxes they collect from pri- vate industry and commerce, the less money private industry and commerce, including the railways, have left with which to give employment. Mr. Johnston showed he is a good friend of railway employees by urging them to do something in their own interest. Our “Friends”, the Senators How good a friend of railway employees are the senators who criticized him? Senator Shipstead is the principal advocate in Congress of a bill for the issu- ance of $500,000,000 in bonds the money raised dy which would be spent upon the development of inland waterways for the purpose of diverting more traffic from the railways and further reducing the number of -—_ Tal eo a -—_—s- ~~, Co FSO 6 —, A FH 46 — ay Tr >. —e —_-—" > es, ite ve on by the the su- ind ffic of Vol. 92, No. 18 men they can employ. Senator Long is an advocate of the same policy. So these two senators who criticized Mr. Johnston show they are “friends” of railway employees in at least two ways—by advocating maintenance of government expenditures to prolong the depression and unemployment in private business, and by advocating huge expenditures upon inland waterways to deprive more railway men of their jobs; and “Labor”, the political organ of the railway labor organizations, shows how it thinks it is thinking for railway employees by also advocating the former policy. The true friends of railway employees are those who are trying to get traffic back on the railroads, be- cause upon the amount of traffic they handle and the amount of earnings they make depends the wages they can pay and the number of men they can em- ploy. Whoever in any way, like Senator Shipstead with his waterway bill, opposes getting traffic back on the railways is an enemy of every railway employee, no matter how unctuously he may profess to be their friend. Railway executives obviously want to get traffic back on the railways, and as in that vitally im- portant respect they are the best friends of railway employees they should be supported by railway em- ployees in their efforts for that purpose. Common Sense Needed in Reducing Public Outlays The revolt of the American people against bur- densome taxation, we are glad to observe, is growing in extent and intensity. There is, however, much confusion of thought about the matter, the principal difficulty lying in the failure of many persons to dis- tinguish between legitimate and necessary govern- mental functions, on the one hand, and unusual and unwarranted enterprises, on the other. Tax reduc- tion enthusiasts in one section of the country, for ex- ample, are reported to be so determined upon their program that they are threatening to make large re- ductions in the expenditures for the education af- forded their own children in the public schools, while at the same time they are insisting upon early com- pletion of the Mississippi waterway improvement in order to provide “cheap” transportation. If anyone has ever voiced an inconsistency more complete than this, it has never come to our notice. At the Senate committee hearings recently on Senator Shipstead’s bill calling for a half-billion dollar bond issue to complete the Mississippi waterway, one wit- ness appearing in favor of the measure pictured Iowa farmers as requiring the “cheap” transportation which the waterway would furnish because of their present poverty ascribable in large part to heavy taxes. In RAILWAY AGE 717 other words, the way to relieve persons overburdened by taxation is to plunge the government still deeper into tax-supported transport. The first principle of a sound policy of public finance is that the taxing power be not used to destroy the enterprise that yields the tax. Yet that canon is violated with every scoop of mud dug from the Missis- sippi and with every yard of paving paid for by the general taxpayers which is laid to accommodate heavy trucks. The railroads are one of the richest sources of revenue the various governments have. It is not going to do the farmers much good to get “‘cheap” transport by water if, as a result, their local govern- ments ultimately lose the tax revenue they now collect from the railroads, or if they have to pay higher transport charges on the goods which must continue to move by rail. Neither highway nor waterway transport yield one cent in net taxes (i.e., taxes over and above the expense the government is put to in their behalf). Public bankruptcy is the one and only outcome which can result from the continuance and extension of a policy which destroys the industries which pay taxes while building up those which ab- sorb them. Police protection, education, the courts, national de- fense,. sanitation, a certain amount of research and statistical compilation—all these are legitimate func- tions of government. Payment of somebody’s freight bill out of the public purse is not. In times of stress like these there must be economies in legitimate and normal activities of government as in everything else, but it is ridiculous to make no distinction between such functions and those which clearly are neither normal nor necessary. The Railway Age was among the first to raise its voice against the overwhelming burden of taxation and we yield to no one in our enthusiasm for bring- ing governmental costs within the bounds of reason. But economy, like everything else, needs to be ap- plied with some show of sense—and from this point of view it is perfectly obvious that the use of govern- ment money for subsidies to the detriment of its own taxpaying citizens ought to be lopped off completely as the first step in any program of economy, before we attempt to trim on necessary and legitimate public services. It is well to bear in mind also that motor transport operators are using the hue and cry against higher taxes as an excuse against higher taxation for them. The obvious answer to this contention is that they do not yet on the average pay any taxes, prop- erly speaking, at all (the direct expenditures of the government in their behalf being much greater than their contributions). Only when the sums they pay the government cover all road expenses attributable to them and leave something over for education, na tional defense and other governmental functions can their pleas for lower taxes be anything but artful camouflage. Dining Room of the Gadsby’s Tavern C. & O. Inaugurates “George Washington. Train Luxurious appointments a feature of thirty new air- conditioned and air-cooled cars service a new air-cooled and air-conditioned train known as the “George Washington,” oper- ating between Washington, D. C., Cincinnati, Ohio, and Louisville, Ky., and by arrangement with the Pennsyl- vania between New York and Washington, and with the New York Central by means of through-car serv- ice to Indianapolis, Ind., Chicago and St. Louis, Mo. The C. & O. main line section of the George Washing- ton, westbound, leaves Norfolk, Va., at 2:20 p. m., ar- riving at Charlottesville, Va., at 8:35 p. m., making connections at that point with through cars which leave New York at 12:30 p.m. and Washington at 6.01 p. m. At Ashland, Ky., the Louisville cars are taken out and the train runs to Cincinnati, arriving there at 8:45 a.m. West of Cincinnati the train operates over the New York Central Lines by way of Indianapolis to Chicago and St. Louis, arriving at the latter points at 3:00 p. m. and 4:15 p. m., respectively. On the east- bound runs the George Washington leaves St. Louis at 9:04 a. m.; Chicago, 10:05 a. m.; Cincinnati at 5:45 p. m., and arrives at Charlottesville, Va. at 5:40 a. m. The Louisville cars, leaving at 1:00 p. m. are placed in the train at Ashland, Ky. East of Charlottesville, the Virginia section runs by way of Richmond, arriving at Norfolk at 11:30 a.m. The New York cars, operat- ing over the Pennsylvania, arrive at Washington at 8:30 a. m. and New York (Pennsylvania station) at 1:30 p. m. O: April 24 the Chesapeake & Ohio placed in 718 All of the passenger carrying cars of the new George Washington are equipped with air-conditioning equip- ment. The rolling stock for the train consists of 22 Pullman sleepers and lounge cars, three C. & O. dining cars and three C. & O. “Imperial Salon” cars of the type introduced on the C. & O. when the deluxe train, “The Sportsman,” went into service some months ago. The air-conditioning system embodies a _ complete method of pressure ventilation, air cleaning, air cooling in summer, air heating in winter and humidifying or dehumidifying the air as required. The Sleeping Cars Every car on the George Washington bears a name related to some person or place associated with George Washington’s part in the making of the United States. They are named Yorktown, Valley Forge, First Citizen, Potomac, Mount Vernon, Williamsburg, Von Steuben, Fairfax, Rochambeau, Lafayette, Cornwallis, Ferry- Farm, Pohick Church, Monmouth, Monticello, Mary Washington, etc. The interior of each car is decorated with a reproduction of some famous painting or the likeness of an historical personage or event suggested by the name of the car itself. For example, the rooms in the car named Valley Forge, instead of being let- tered or numbered as has been the custom, are named Anthony Wayne, Nathaniel Greene and Light Horse Harry Lee, three commanders who served under Wash- ington in Revolutionary days. The decorations of these lame orge rates. ‘jzen, ben, erry- Mary rated r the ested ‘ooms 4 let- amed Torse N ash- these Vol. 92, No. 18 rooms suggest events in the careers of these men. Each berth or section in the Pullman cars is so decorated that the surroundings suggest something of the person, place or event for which the car has been named. The library observation lounge cars have been named the Commander-in-Chief and American Revolution. In these two cars the principal decorative features are the painting of Washington Crossing the Delaware and the historically famous scene of the Signing of the Declara- tion of Independence. The furnishings and decora- tions are radically different than are ordinarily the cus- tom in Pullman cars, suggesting the atmosphere of the period, with such modern luxuries as buffet, valet serv- ice, magazines, daily papers, telephone and radio. The Restaurant Cars The air-cooling and conditioning system has made possible, in the restaurant cars, the maximum of com- fort and convenience. Heat and odors from the kit- chen do not reach the dining room. The dining cars, in harmony with the idea of the George Washington, have been named after three celebrated Colonial taverns—Gadsby’s Tavern, Raleigh Tavern and Michie’s Tavern. Every effort has been made to inject into the decorations, as much of the Colonial tavern atmosphere as was practicable in the construction of railway equip- ment. The carpets suggest old colonial rugs on a tav- ern floor, the chairs are a copy of a famous design by Duncan Phyfe who made some of the furniture for Mount Vernon. Each of the different cars has its walls illuminated by a series of old colonial color prints. Many of these prints are rare editions and possibly may have adorned the walls of the various taverns for which the cars have been named. The Imperial Salon Cars The Imperial Salon cars on the George Washington have been designed to provide the maximum of comfort | hire te Lk gg mate. fk, , i $ 8 i ge . } \S Interior of the C. & O. De Luxe Coach Showing Seating Ar- rangement and Interior Decorative Treatment—The Air Outlets of Grilles Are in Ceiling RAILWAY AGE Lounge Section of Pullman Cafe-Lounge Car, with the Dining Room in the Background—This Car Serves the Ashland-Louisville Branch and convenience for those travelers who do not desire Pullman accommodations. These cars were originated for service on the C. & O. Sportsman which went into service a little over a year ago.* To the luxury and comfort of the Imperial Salon cars, as originally de- s.zned, has now been added the personal comfort made possible by air cooling and conditioning. The salon cars, while of the same size as the conventional car, have been arranged to seat a maximum of 45 persons. Richly upholstered individual seats are provided which may be turned around at will. There is a deep pile carpet on the floor and individual reading lights for each chair. [Elaborately furnished rest rooms and smoking rooms are part of these cars. The Air-Cooling and Conditioning System The major equipment of the air-conditioning system is that required for cooling the air and consists of a four-cylinder compressor and an air cooled condenser underneath the car,-with a cooling coil overhead in the roof, the latter in s¢ries with blower fans, air filter, in- take ducts for fresh and re-circulated air and outlet ducts for distribution of the conditioned air into the car. The refrigerant used is known as Freon or F-12 (technically termed Dichlorodifluoromethane), and is non-toxic, non-explosive and non-inflammable. The refrigerant passes through the compressor and is then discharged into the condenser coil where the heat is removed .by means of air circulated around the coil by fans. The‘refrigerant enters the condenser coil in the form of a gas,'keaves.as a liquid and enters the receiver tank. It is thef&cartied to a special valve which allows a pre-deternginedamount of liquid re- frigerant to enter the overhead tooling coil or evapora- tor, at which point the pressure*is lowered, the liquid evaporated and the temperature of the refrigerant re- * A description of the C. & O. Imperial Salon cars appeared in Railway Age for December 6, 1930, page 1210. Underside View Showing the Electric Speed Control and V-Belt Drive from the Stand-By Motor of the Air Conditioning System duced. Fresh air and re-circulated air in the propor- tions of approximately 25 per cent and 75 per cent respectively, are drawn up through the air filter and then passed over the cooling coil to be cooled and de- humidified. The air is then forced into the main dis- tribution ducts from which it enters the car through grilles located in the upper deck of the car. The re- frigerant is carried back from the cooling coil as a gas, to the compressor and the cycle is repeated. A heating coil is also embodied in the overhead air conditioning series of units and its functioning is con- trolled by the thermostat. When heat is required in the car, the refrigerating machinery ceases to function and steam vapor from the steam train line is circulated through the overhead heating coil and the filtered warm air is forced over this heated coil into the distribution ducts. A small supply of steam vapor liberated in the Lounge Section of Pullman Buffet-Lounge Car RAILWAY AGE April 30, 1932 filtered air passage adds the necessary humidification, The regular heater pipes near the floor of the car are also thermostatically controlled so that there will be two sources of heat when required. This floor heat also protects the water pipes against freezing. The power for operating the cooling system when the cars are running is obtained from belts connected from the compressor to a special electric speed control, the latter driven, through a universal drive shaft, from a gear drive on the adjacent truck axle. The electric speed control functions on the principle of electric in- duction and starts the compressor when the train speed reaches 5 m.p.h. and then increases the speed of the compressor up to a maximum of 420 r.p.m. Regard- less of high train speeds thereafter, the compressor con- tinues at its predetermined speed. For power when the cars are standing, a separate motor is provided. This is belted to the speed control. The features of the air-conditioning system are unusual in a number of ways. There is no water in the system so that no trouble from freezing can be encountered; the power for operating the system when the cars are running is transmitted directly from one of the truck axles without the employment of indirect electrical features; the only type of power required when cars are standing is electricity; the air distribu- tion throughout the interior is uniform and without drafts owing to the method of installing ducts and outlets; the added weight per car for this air condi- tioning installation is minimized due to the compact- ness of the equipment, absence of liquid for condenser cooling and absence of indirect electrical power fea- tures. The use of the proper proportion of fresh air results in a good quality of circulated air. This air conditioning arrangement provides a pres- sure inside of the car slightly greater than that on the outside and results in a clean interior, free from ditt. This cleanliness will undoubtedly mean longer life and less upkeep on the painted finish, window curtains, up- holstery fabrics and carpets. The absence of noise is another advantage which is made possible because of fresh air being furnished through the ducts, eliminating the necessity of raised windows. NEW INDUSTRIES ESTABLISHED on the lines of the New York Central (12,050 miles) in 1931, numbered 380, and the annual gross earnings received from new traffic thus brought to the lines amounted to $3,063,575 (estimated). In addition, new facilities were added by 61 industries; and also the company secured 40,000 carloads of freight by the aid of temporary facilities provided for 229 industries. CoNSTRUCTION OF A NEW RAILWAY from Fredheim, on 2 branch of the Sognefjord, to Myrdal, a station on the Oslo- Bergen line, is under way in Norway, according to a recent issue of the American-Scandinavian Review. The new line, believed to be one of the most difficult pieces of railway con- struction ever undertaken, starts at the level of the Aurlands- fjord at Fredheim, and runs on an incline along the sides of the valley as far as Kjosefoss. No bridges will be used, but at three points where the route crosses a river tunnels will be provided to guide the river under the railway. There will also be several railway tunnels; the longest, at Naali, being approximately 4,200 ft. in length. Another—the 3,600-ft. Vatnahals tunnel—is to be S-shaped, that unusual type of construction being required to reach the height of the Myrdal station in the limited area available. The new line will be electrically operated, as there is ample power in the immediate vicinity; its entire length will be 20.1 kilometers (12.5 miles), and its estimated cost $4,020,000. Construction is expected to take from five to eight years. a Sk: . 2 eee a _s—S i > one the Toa As w ASSrau8 WOMR— OUD Hee DD alr es- the irt. und up- » 1S of ing 7 ork nual the new yany rary yn a )slo- scent line, con- inds- 25 of , but ill be will being 00-ft. e of yrdal il be >diate iles), ed to Tractor Equipment Used at Joliét for All General Service diture of $66,159 sums up the experience of the Elgin, Joliet & Eastern with its investment in trackless equipment for handling material around its storehouses, shops and car-repair facilities, an invest- ment which includes the cost of roadways as well as equipment. It means that the road received back all the money that it spent for its improvement in the first year’s operation, with $6,000 to spare, after which time Senne reduction in expenses was largely clear profit. The savings are the result of diligent efforts made over a period of years to apply modern methods to the every-day supply and shop work at Joliet, Ill., and Gary, Ind., and reflect, for the most part, the road’s success in reducing labor costs by conserving the time of skilled labor and eliminating much of the common labor previously required. During 1917, when the stores began to deliver materials direct to the shops, the facilities, besides two small auto trucks, consisted of several small locomotives and cars operating over nar- tow-gage tracks, serving all the shops and repair tracks. About ten years ago, when the road built its new car shops at Joliet, it was completely equipped with these narrow-gage tracks. Significant of the road’s progress in handling material is the fact that with the introduc- tion of lift trucks and tractors and the building of con- crete roads throughout the shop and repair plant, all narrow-gage operations have been abandoned except one unit of the equipment which is employed to carry heavy materials and forgings between the car shop and the storehouse, a distance of a quarter of a mile. More Than Twenty Machines A SAVING of $72,367 per year with a total expen- The material-handling equipment now in use on the toad is as follows: Department Power Capacity 2 Auto trucks.......... Stores Gas 3 tons 1 Auto truck........... Stores Gas 1% tons t Ante track.......0.-.. Bridge and building Gas 2 tons Narrow-gage engine... Stores Electric arrow-gage cars..... Stores Pe RNMOMNIN So ose cniesians Stores Gas 20 hp. 2 Crane trucks......... Mechanical Electric 3,000 Ib. 1 Lift truck......cseses Stores Gas-electric 4,000 Ib. Lift trucks with boom Stores Gas-electric 6,000 Ib. 3 Crane trucks with mag- OREO ES Stores and mechanical Gas-electric 3,000 Ib. 3 Jack hand lift trucks. Stores 3,500 Ib. umber carts 38 Tractor trailers 8,000 Ib. 390 Steel skid platforms 185 Steel stock boxes “Floating Power” Wins on E.J.&E. Lift trucks and trac- tors succeed narrow- gage methods for handling material— Big savings effected With this equipment, mechanics no longer go to the storehouse for material. That for locomotive repairs is offered by a foreman on stores orders, which desig- nate the locomotive or machine for which the material is required. The orders are picked up at stated inter- vals by stores men, and the material is delivered direct to the job on platforms and in boxes, by crane truck or trailers hauled by tractors. Crane trucks with extended booms are used in the roundhouse for removing and applying locomotive parts and also for hauling material to the machine and forge shop and for loading locomotive scrap into special cars located adjacent to the roundhouse. At a smaller ter- minal, this type of crane handles all large items of ma- terial for the locomotive, car and stores departments. Six Men Supply 200 Inspectors or supply men on light-repair tracks do not start before regular working hours. Gangs of two men are assigned 8 to 10 cars, according to the class of work to be performed, and while the defective material is being removed, a checker orders the new material. Tractors and trailers deliver the required material by the time the defective materials are removed and then Several Kinds of Equipment are Used 722 pick up the parts requiring repairs and carry them to the forge, machine or wood shop. With this arrange- ment, an average force of six material men is capable of serving 200 men who apply material to cars on the light-car-repair tracks. Wheels and other heavy parts are handled by crane trucks equipped with magnets. These machines deliver two parts of new wheels at one time and return the old wheels to the wheel shop. Wheels for outside stations are loaded by a crane, and scrap is loaded by the same equipment into cars placed at convenient points on the repair tracks. The cranes also prove useful on the re- pair tracks in the handling of material on shifted loads. Cut Handling 50 Per Cent Lumber from the storage yard is loaded on special carts and placed in the shops by tractors; the same carts and trailers are used in distributing lumber to cars on the repair tracks, reducing the man-hours for handling this commodity. Welding gases are distributed to the shops each morning on trailers, and all filled or par- tially-filled cylinders are picked up approximately 15 to 20 minutes before closing time each night and returned to the gas storage. Tractors are also used in spotting cars undergoing heavy repairs or rebuilding. This method effects a great saving over the old method of having car men move cars by “pinching” and pushing them to the desired location. A 2,200-lb. Wheel Center Han- dled by Skid In the storehouse, material is handled with the aid of hand lift and crane trucks. All scrap brass is shipped to the foundry; springs for repairs are forwarded to the manufacturers in containers and new material is re- turned in the same containers. In handling other car- load material, the containers are placed in the cars and the material loaded onto or into these platforms or boxes and placed in the storehouse or on material stor- age platforms by lift trucks. Compared with the old way, the new way saves 6 of 13 movements: Old Way New Way 1—Loading trucks at shops 1—Loading trucks at shops 2—Moving from. shops to stores 2—Moving from shops to stores 3—-Unloading truck at stores 4—-Loading truck at stores 5—-Moving from stores to car 6—Loading car from truck 7—Car movement between stores 8—Unloading car to truck 9— Moving hen car to incoming 5—Moving from car to incoming stores stores 10—Unloading truck at incoming stores 11—Loading truck from incoming stores 12—Moving from stores to shop 13—-Unloading truck at start of work 3—Moving from stores to car 4—Car movement between stores 6—Moving from stores to shop 7—Unloading truck at start of work Savings Exceed Expectations Compared to previous methods, the new method has produced savings in excess of expectations. The elim- ination of three laborers in the Joliet stores department effects an annual saving of $3,672. When this equipment was installed in June, 1930, at RAILWAY AGE A 6,000-Ib. Load of Tires Han- dled by Lift Trucks April 30, 1932 Gary, it released four laborers at the storehouse and al- so dispensed with 112 man-hours per day in the car de- partment, bringing the total labor saving to $2,367 per month. The 112 hours saved the car forces at Gary include 74 hours’ work of car repairers previously required in taking wheels by hand from a car to the wheel shop and returning with new wheels. Now a magnet crane delivers two pairs of wheels in 10 min. and eliminates all danger of accidents, as the crane takes the old wheels off the rails and places the new wheels on the rails un- der the truck. The car men do not handle the wheels until they are on the rails ready to roll under the trucks. Cut Wheel Costs $12,000 at Joliet Wheels are handled in a similar way at Joliet, using a gas-electric crane equipped with a magnet, costing $5,275. On his first trip each day, the crane operator consults with the rip-track foreman as to the wheel re- quirements, and the approximate time for each deliv- ery. He then proceeds to the wheel shop, informs the foreman and sees that the wheels are delivered to the different locations on time. One operator with this crane handles from 16 to 20 pairs of wheels daily at Joliet, which were previously handled by car men, thus reducing the labor cost of han- dling wheels at the rate of $12,696 per year at this point and giving the car men more time to work on cars. Jack Trucks are Used at the Store- house This crane also handles pipe and tubing that have shifted on cars, thereby saving per diem and delays to cars. One of the photographs shows a magnet crane han- dling a dump door weighing 1,188 lb. Previously, it re- quired 6 hours’ work by car repairers and 1 hour’s work by helpers, while the work now requires 30 min. labor by a truck operator, 30 min. by a car helper and 20 min. by a car repairer. In a similar manner, the work of handling and plac- ing one end gate on a gondola car has been reduced from 1% hours’ time of a car repairer and 1 hour’s time of a helper to 10 minutes’ time of a truck operator and 10 minutes’ time of a tractor driver. This is the result of studies at the Gary yard. Rip-Track Work Aided At Joliet, one operator with a gas-electric magnet crane costing $5,275, which is employed on the rip tracks for putting up end gates on cars and picking up scrap, saves $6,216 per year, by releasing two car men and four scrap men for other work. Truck bolsters weigh 858 Ib. each. At Gary, it pre- viously took 4 hours’ time of a car repairer and 1 hour’s time of a car repair helper to handle one bolster by hand, while a magnet crane operator now does the work in 20 min. ser thi: eng out iS IS or e- V- 1e 1e iced ur’s ator the gnet rip g up men pre- our’s r by ; the Vol. 92, No. 18 4 Crane Truck Handling End Gates Saves Truck sides weigh 445 lb. each. A magnet crane re- duces the labor from 1 hour’s time of a car repairer and 14 hour’s time of a car repair helper to 20 minutes’ time of a truck operator, and also reduces the work of collecting scrap from 32 hours’ work of laborers to 3 hours’ work of a truck operator. Two tractors and trailers costing $5,500, which han- dle material on the rip tracks at Joliet and move all sup- plies, including lumber and material, from the store- house to the rip tracks, have reduced the labor from 20 supply men and the part time of a narrow-gage opera- tor and helper, to 2 tractor drivers. Another lift truck, gas-operated and costing $2,186, is effecting a labor saving of $1,128 per year at Joliet in delivering material to the rip tracks, round house, air- brake shop, and oil-house, releasing for other work a narrow-gage operator and helper. This lift truck also unloads car brass, journal bearings and brass locomo- tive castings which are received from the foundry in skids which are then reloaded at the Joliet storehouse with scrap brass and returned to the foundry. It also handles shipments of new and reclaimed springs in the same way and also delivers arch brick and miscel- laneous castings in skid boxes to the roundhouse, and air hose, triple valves, angle cocks, etc., to the air room. Handling material to and from the steel car shop at Joliet is still performed by a narrow-gage engine cost- ing $2,400, but a reduction in labor costs has been effected by loading the material into containers and buggies and moving it to and from the narrow-gage system with a gas-operated lift truck. Further Savings in Shops In delivering material to and from the machine shop at Joliet, one operator with a gas-electric lift and crane truck costing $3,854 does the work previously per- formed by narrow-gage equipment which required the services of an operator and helper. The operator with this truck also handles front deck castings, trailer tires, engine springs, side rods and other heavy articles with- out assistance, saving approximately two hours of labor A Magnet Crane Handling Wheels RAILWAY Handling Fire Wood on Skids Placing Car Wheels by Magnet also Speeds the Work Handling Gas Tanks on Skids Has Proved Safer per day for loading. This crane also handles con- tainers loaded with scrap brass, which are accumulated in the machine shop and brought to the storehouse. The new method is also much safer and quicker than the old method. A big saving is effected at Gary in the handling of engine wood. Prior to January, 1931, the mechanical department always had two laborers cutting and chop- ping wood for starting fires in locomotives. This scrap wood is now picked up from the car-repair tracks, loaded on trailers, and sent to the wood shop for cut- ting. The wood is cut during spare time in the wood shop, where it is loaded on trays and delivered every night by a lift truck to the roundhouse for use, the empty trays being returned to the wood shop the next morning. Previously, the wood was picked up on the repair tracks, placed on a push car and then loaded into a gondola car, which was switched to the wood saw where the wood was unloaded, sawed to size, and then piled. When needed, the wood was again loaded in a car and switched into the roundhouse. The use of skids eliminated all of this extra handling of engine wood. By storing 2,200-lb. wheel centers on a platform skid ready for delivery so that they can be handled by a lift-truck operator, the work has been reduced from 6 hours of labor expenditure to 10 min., producing a labor saving and eliminating the danger of injuring men. A set of six locomotive tires, weighing 6,000 Ib., are now placed on a platform skid ready for delivery. This has reduced the work from 10 hours of effort to 10 minutes, producing 'a labor saving and eliminating the danger of men getting hurt. Expedite Snow Handling During the snow storms last winter, excellent results were obtained with snow plows pushed by tractors. During one of the most severe storms, the plows were tested on the repair tracks. Within one hour after starting work, all the roadways were opened and the When the snow work of delivering material begun. One Man with a Lift Truck Handling Dump Doors 724 RAILWAY AGE Snow Work— 108 Man-Hours by Hand 8 Man-Hours by Tractor was shovelled, it took half a day to set the material- handling work in full motion. Hand methods of clear- ing the roadways on the repair tracks of snow required 12 laborers, 7 painters and 8 painter helpers, while the tractor methods required only 2 hours’ time of the operator and 6 hours’ time of a laborer. The full saving of labor, with this equipment, can- not be estimated, but the measurable savings, in the aggregate, are as follows: Gary Joliet Total cost of all equipment............ $16,244 $27,430 ES EEE Eee 10,935 11,550 ih ee Sethe a bab aewewes $27,179 $38,980 Gross annual savings..... scecceerecess $39,823 $46,428 Less 10 per cent depreciation......... $2,717 $3,898 Less 5 per cent maintenance, taxes and insurance on investment.........-.-- 1,358 1,949 Less 6 per cent on interest on invest- DEE cnivatintebeseteueketirneaeenenyta 1,630 2,338 Total depreciation, maintenance, etc..... 5,705 8,185 Net saving for one year.............. $34,1f8 $38,243 While these savings do not take into consideration the cost of gasoline and electricity for operating the trucks, it will be seen that the annual savings, even with these deductions, more than exceed the cost of the initial investment, including the concrete roadways. ; mee) ==> iam? OF ta ME HEAVY costs cK ,; ~ <m—e — _ tty o ene MEET competion BY vame we, TUBUC [MH HIGHWAYS, LIKE EVERYBODY ELSE DOES. 5 Aol [A } B all ea e™ From the Columbus (Ohio) Dispatch © Wouldn’t the Trucks Yell? April 30, 1932 Freight Rates 6.77 Per - Cent of Commodity Values HE Bureau of Statistics of the Interstate Commerce ; Commission has made a study of the relation be- tween freight revenue and the value of commodi- ties transported by Class I railways in 1930, showing that the freight revenue of $4,206,496,000, or $3.65 per revenue ton originated, was 6.77 per cent of the aggre- gate value at destination, $62,090,176,000, an average of $53.84 per ton. A similar study for 1928 had shown an aggregate value of $68,261,054,000, of which the freight revenue was 7.08 per cent, but an explanatory statement by M. O. Lorenz, director of the bureau, says that, aside from the general downward trend of - prices, numerous changes in value per ton from those shown in the 1928 study have been made. The most important of these is the value of $350 a ton for l. c. 1. freight and miscellaneous carload manufactures in place of $200 used in the 1928 study. The results of the study are given in a table showing for each of the commodity classes for which statistics are reported by Class I steam railways, the revenue re- ceived by the railways in comparison with the market value of the commodities moved. The values are, so far as practicable, computed as averages for the year 1930. The wholesale prices on which the values in the present study are based have been selected with care, Dr. Lorenz says, but when it is considered that over 3,000 kinds of commodities moving on railways are grouped in 157 classes, without any indication of the proportions of the components within each class, it is apparent that only a rough approximation of the true average value in each class can be achieved. The highest percentage of revenue to value shown is that for fresh grapes, on which the freight was $34.54 a ton or 65.02 per cent of the value per ton, $53.13. The lowest percentage was for leather, on which the freight revenue, $9.64 a ton, was only 1.16 per cent of the average value, $827.86 a ton. For bituminous coal, the most important item from a tonnage standpoint, the freight revenue, $2.23 a ton, was 56.03 per cent of the average value, $3.98 a ton. By commodity groups the table shows the following: Freight Revenue Value at Per Ton Destination Per Cent Products of Agriculture............ $6.09 $52.83 11.53 Animals and Products.............. 9.69 279.99 3.46 CE ee 1.87 4.10 45.75 ee eee 3.64 19.94 18.26 Manufactures and Miscellaneous (CL) 5.12 127.32 4.02 Grand total carload traffic.......... 3.36 46.02 7.30 (ee | eee ee 14.47 350.00 4.13 EE SS a sree eee ccc bead cans 3.65 53.84 6.77 Where the price used referred to point of produc- tion, the average freight revenue per ton for the class was added so that values at destination might be uni- formly obtained. The price per ton was multiplied by the number of tons reported by the railways as origi- nated in each class to get the total value for the class. “It is obvious that such a total is exaggerated to the extent that there is duplication in the reports of tons originated,” says Dr. Lorenz. “Such duplication occurs when traffic is reshipped on new bills of lading. [or this reason, also, the average freight revenue per ton is understated, if, for example, one has in mind the aggregate revenue paid by a ton from farm to the ultimate point of consumption or export. “As shown by a footnote in the table, the average freight revenue per ton is uncorrected for length of (Continued on page 734) P<» Til om tin an tl 4; i aca. ae ee Control of Truck Rates Is Essential Present chaos injures everybody—Taxpayers, railroads, shippers and truckers— Highway expenditure should be made to yield fair return By P. J. Neff Assistant Vice-President, Missouri Pacific Lines VAST majority of the people of the United States A are confused in regard to our transportation sys- tems, and many no doubt feel that a war of ex- termination is being wee between the railroads and the trucking industry/ Fuel is being added to the fire of this belief by innumerable newspaper and magazine editorials and public addresses, many of which are in- spired by partisan viewpoints or founded upon incom- plete and inaccurate understanding of either the eco- nomic or practical phases of the Situation, Bias and prejudice should be laid aside and the subje¢t should be viewed in the light of what is best for the three great interests involved, i. e., the public, the railroads and the motor transportation industry. Much has been said about the amount of money in- vested in the railroads and in the automotive business, and in connection with the latter the amounts invested in highways. In such discussions it should be force- fully brought out that, because of the vast sums involved and the necessity for the continued existence of all of our transportation facilities, the public should be the mediator in determining the future of these investments. With the exception of the money invested in our farms, there is no business in existence which collects and dis- burses as much money, or means more to our civilization than our transportation, It would be disastrous to the progress of our country to have either the railroads or the motor vehicles pass out of the picture. The job to be done at this time is to determine in what manner each can be most economically fitted to the needs of the people and to do all things which are necessary to bring about such a condition. From the mass of suggestions which have already been made, no doubt the answer is available, but the views of a sufficient number of people must be crystallized to bring about the desired result. My purpose in this dis- cussion is to show the essential things which should be dorie and to clear the atmosphere, if possible, of some of the non-essential propaganda. Will History Repeat Itself? We are accustomed to say that history repeats itself. We thoroughly believe this and, therefore, should look to the history of our transportation business as a guide in the present situation. Many of the present generation remember the development of our railroads and the abuses which existed prior to the passage of the Inter- state Commerce Act. Cities were built and abandoned, industries grew up and disappeared, depending upon or im consequence of the cost of transportation. Before rates were fixed by lawful authority, there was nothing to prevent the wiping out of investments, no matter how large, either in terms of communities or industries, by the selfish interests of one competitor against another ; and it became absolutely necessary that such a condition be remedied. Some of our most disastrous depressions have been traced directly to unregulated transportation. The same situation exists today by the creation of the 725 national highway system with the resultant operation of many millions of motor vehicles over it, a large per- centage engaged in carrying commerce. If history does repeat itself, then it is evident that, until lawful authority fixes the rates which shall be charged for transportation of commerce on the highways, there will be chaos in industry, timidity in development and dissipation of capital already invested in our railroads. The develop- ment of transportation on the highways has reached such magnitude that to fail to do this would be com- parable to the building of two railroads side by side and permitting one railroad to make any rates it desired while fixing the rates of the other. This is the key to the whole situation. The questions of taxes, certificates of convenience and necessity, contract carriers and all other phases of the discussion can be given undue prominence, which tends to cloud the main issue and to befuddle the public-as to what should be done to bring order out of chags“ Proper taxation is a part of the cost of conducting any legitimate business and is an important factor in considering a compensatory rate for transportation service. _Certifi- cates of convenience and necessity, or perkaps only a permit to transport commerce on the highways, are es- sential in the proper policing and orderly regulation of such transportation. If it was in the public interest that the movement of commerce by railroads should be regu- lated, it seems no less essential that the movement of commerce by highway should be regulated, and it fol- lows that the regulation should extend to all classes of carriers, whether private, contract, common carrier, or otherwise; but in all this detail, the main question must not be lost sight of—that to permit competition in rates invites disaster to the trucking industry itself, the users of the industry and the railroads. Demoralizing Competition in Rates There are many examples of demoralization in indus- try, partly or wholly in consequence of inadequate regu- lation of rates. Perhaps one of the most outstanding examples is the competition which has existed between the truck lines and the railroads in Texas and Louisiana for the past three years, where several million bales of cotton have been trucked annually over the highways of those states to the Gulf ports. The truck lines originally fixed their rates below those of the rail lines in order to secure the business, forcing the rail lines in turn to lower their rates to meet this competition; and this practice has continued until the cost of transporting cotton in that territory has decreased from 20 to 35 per cent. At first thought it might be assumed that the benefits at- tendant upon lowered transportation costs would be for the public good, but the actual result has been that rail- road revenues have been depleted in those states until the railroads are almost bankrupt, forces have been laid off by the thousands and railroad cars are idle, and there is no evidence to indicate that the cotton grower received any more for his product in consequence. The high- 726 ways of these states were strewn with the wrecks of / these great cotton trucks and many citizens were killed and injured. The public clamored for relief from the danger of driving on their own highways, and with it all the truck lines reported many thousands of dollars net: loss in transporting the business. Interior compresses of Texas and Louisiana were practically wiped out of existence, destroying millions of dollars of investments. In the final analysis, therefore, the failure to regulate the rates on cotton is responsible for destroying the rail- roads, the compresses and the highways, the killing and maiming of citizens of the states in which the business is transacted, and has much to do with the general de- moralization of business. One does not have to be an economist to see that this condition should be corrected for the common good. Effects of Rate Competition Another outstanding example of the effect of rate competition may be seen at St. Louis where several hundred truck loads of coal are hauled daily from nearby Illinois mines over the congested Free Bridge across the Mississippi river, in an attempt to furnish delivered coal at a price lower than when it is transported by railroad. Tangible results have been to deny the public generally the use for which the bridge was built and the closing of many mines in Illinois which formerly shipped their products by rail to St. Louis. It has also forced many well-paid miners out of employment or caused them to go to work in the mines patronizing the trucks, at wages on which they cannot make ends meet. Switch crews are idle, truckers from established coal yards in St. Louis are out of employment and many railroad coal cars are idle. It is obvious that the number who may benefit from cheap coal are small in comparison with those who suffer from lack of employment, reduced earnings and destroyed investment. Value of Property Used I am not making the assertion that the rates charged for transportation on the highways should be the same as those charged for traxsportation on the railroads, but merely asserting that fates must be fixed in each in- stance so that the public or the shipper will know whet the cost of transportation is going to be, not only to each shipper individually but to his competitors, so that they will be able to develop their business upon a solid ae, Seen passing, however, from the subject of rates—highway vs. railroads—it should be emphasized that in each instance the rates should consider the value of the property used for transportation purposes as well as the cost of conducting the business. Apparently the public has only recently become alive to the fact that the construction of highways may become a tre- mendous burden on the taxpayers and that the tax- payers are entitled to some return on their investment if the program is to be continued and the privilege of using the highways is to be passed to carriers of com- merce. Short-sighted interests in the automotive industry have continually referred to motor trucks and buses as paying a fair share of taxation. The use of the word “fair” implies a mathematical proportion, based upon the rights of ownership. The facts are, of course, that the highway system of the country was built to provide private transportation and was not pro- moted for the purpose of supplying a right-of-way for commercial use, except upon such terms as would be equitable to the people who furnished the capital. In other words, the use of the highways for commercial RAILWAY AGE April 30, 1932 transportation is granted as a privilege and not as a right; and certainly the economic conditions in our country have never made it desirable for the public to construct and donate roads free of cost for the trans- portation of commerce or to provide an unnecessary duplication of transportation facilities. It has become apparent, however, that there is a definite and useful sphere for such transportation, and so long as it is conducted upon sound business principles it will be a developing influence, just as the railroads were a de- veloping influence when their rails were first extended across the land. For the same reasons that a curb was placed upon railroad extensions where wasteful, it is equally important that a curb should be placed upon wasteful transportation on the highways in competition with the railroads. Return on Highway Investment The business of carrying commerce on the highways should, therefore, pay a reasonable return on the money invested in the construction of these highways if the privilege of using them is to be granted. Much has been said of the testimony of Thomas H. MacDonald, chief of the Bureau of Public Roads, Department of Agriculture, in I. C. C. Docket No. 23400, in which he is quoted as saying: “In my judgment, the heavy trucks and the buses, by the higher taxes which they are paying, and particularly through the collection of gasoline taxes, are fully meeting all excess costs of highway construction due to the increased thickness made necessary by those heavier loads.” We fail to find where the taxpayer has been returned any of this money, and it is to be noted that Mr. MacDonald does not go so far as to say that the truck or bus user paid anything in the way of interest on the capital invested in the highways. It is of further interest to note that the public investment in the highways is increasing at the rate of $500,000,000 per annum in excess of any plan for retiring the indebtedness. Certainly a large part of this is for the extra cost of the heavier slabs, stronger bridges and lower grades made necessary by the operation of the larger vehicles of commerce. The taxpayer should be reimbursed for this currently, or the burden will become unbearable. uy ighway indebtedness is now estimated at twelve billion dollars, or nearly equal to Our national ebt. Is this additional half billion dollars a year being expended wisely, without some plan to amortize it? Shall we disregard our future and leave it to other generations to bear the burden? Our present program seems to head our country toward highway bankruptcy. Capital invested must receive an adequate return or it will eventually be wiped out. It makes no difference whether the enterprise is privately or publicly con- ducted. The answer seems plain that the public should avail itself of compensation from commerce moving over these highways, both for their maintenance and for interest on its investment in them. We would not deny the use of the highways for trans- portation of commerce, because we think it is highly necessary for the development of the country that they should be so used. But that privilege should be on such a basis that the industry will pay its way, and to that end should be regulated either under the same authority as is applicable to the railroads, or in a way comparable therewith, so that it will not destroy itself or the rail- roads, the industries or the communities of this country in the process. Failure to do so invites national disaster. This program is what our railroad presidents mean by “equality of opportunity”. and it is essential to our national prosperity. ay ee a> ae teed Oe oe | 6D As e™ 645 ert ee oe onal eing it? ther ram ptcy. or it ence con- ould ving 1 for rans- ighly they such that ority rable rail- untry aster. mean > our Scope and Character of Pennsylvania A. C. Electrification’ By J. V. B. Duer Electrical Engineer, Pennsylvania Railroad New York and Washington which is now being electrified for freight and passenger service is 230 miles in length, consists of stretches of two, four, and six tracks, and serves the cities of New York, N. Y., Philadelphia, Pa., Baltimore, Md., and Washington, D. C., as well as the many other large and important cities and towns lying between them. In addition to the main line tracks, there are important receiving and dispatching yards at these cities at which trains are re- ceived, handled and dispatched. Over this piece of railroad there will be a daily elec- trified train movement in normal times of 60 freight trains and 830 passenger trains, included in which will be 492 multiple-unit trains. This movement represents annually a freight trailing gross ton mileage of 10,030,- 000,000, a passenger car mileage of 133,575,000 and T HE section of the Pennsylvania Railroad between y is 8 an electric locomotive mileage of 17,787,000. 1 ¢ \% Bt } L . . ° . Vv The multiple unit trains will serve the suburban ter- | » 12 ehilg | . . . . Cf > ritory around Philadelphia, as well as the suburban | Boe B ‘e/g DN service out of New York and Jersey City and some Bates ¥; 4 sit ° e ° =s se YSunnySi suburban service out of Baltimore and Washington. | a 25 <<a“ The electric locomotives will handle freight and pas- ¥ Te Wsrsey RS ot . = . i) - senger service between New York and Washington, as i organi 5° 6 ISLA ° y c c Pot Vi 2°43 well as the other through passenger trains between New ‘ 3 = J Vay 9 ease sate ® ¢ % oe 2 4 tA * Abstract of a paper presented before the New York Railroad Club on a = in 3 ‘ Ve eth Amboy March 18, 1932. The figures given concern only the Pennsylvania a. c. 2 3 t= hh SUT Arey electrification and do not include the Long Island Railroad. : Noa “ = @ 5 4 Fs | an | - act s | | YN } r-- 458 cat * ae ae aa" Pt 1 ---22.8-—2| e i < I} | S | % #¢ |e of 4 \$ fomsgpens Sy, > > =. 5 2 7 | | OU & £ +2 Bi: ' | P Ta S 2 ez | e ° J ' | i e 1; Be 5 $Fjs s—~ PS e.J| 5 -4 ” ® ; os 4 ¢ BY - ) _ | . 2 ~~ — : We Bordentown £ 5 E ry nN 3 \. ¢ £ 2 Y 7 % Ns ENG 3 1 § : ie SA j t/ | ' i ] ATLANTIC ! => ~ Z } e rs A ‘2 ) UY . : | r ¢} aN 2 8 w= 8 Ue Delaire : OCEAN | = west 7 » amden 7 \ ~~ eases i : "| | ' MECalls 6 ay Ferry \ +t? gE Bo | NEW JERSEY | 1 | | as ra 3) Fe iii --.-—jpennsyivana i NS ig gg ols e309 a] BOs aif oh28 MARYLAND Conowingd® a |S" £ £ : -/ fas et & i ' 3 \. 1} - | ( | ny 2 , &£ R\ yi en be, ° z SD * ve | hn: a On | iy * o> 8 | “wa gid = Loudon Park 2 oly c € * 2 Map of New York-Washington &® & x PWindns red District, Showing Diagrammatic J £& > & gsevern | ais ms Arrangement of Tracks Included On, £ 38 | 3 & in Electrification Program 3 'S 5 & fr \ NSS NS ‘= ~ a \ at © a y r : i?) | "a Pot, ) ) q 1 Yord fl 1 ¢ | | h \ | | | ly Y ! WV ; SS = = SR ss A ns nt maga after York and Philadelphia. In addition to this movement, there will be over some portions of the electrified zone a daily movement of 130 interdivisional freight trains, which movement will be electrified as the electrification is extended westward. The yard freight switching and pick-up movements to non-electrified territories and sidings will not, at the present time, be electrified. In this territory, on account of the total density of traffic, requiring its fairly definite arrangement, as well as because of the nature of the freight handled, a large portion of which consists of articles or merchandise upon which the delivery time is guaranteed, the freight traffic is almost entirely moved by timed or scheduled trains. There are very few extra freight trains. The 2 ane —e 13.6 ay 728 Miles 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 0 o + ee T T T T T T T T T T T TT T T © $200} adibee =: if t Vv.i- 0 go! = = =< 3° >. Cc , 400). —_ = ——— ea il £ o300 J — ary) -— 0100 ———— i g So y GY, YU, Yt YY To oY, thy, Y Yi Yj, Yy at) = w 400 oe B_ 300 aie 35 L, 35° , Y 7 2 100 pee tg 4h tp a 0 WY fu“ PJP Uy U/ My Yywqwpe@— YU ~ wg * £4 C ye , @ : +#| oO ¢| cil % slg S| 's £13 e2 2 gba ees el 2 xt? ais Sic = gio & s&s c}/ S| 5 = x| Sic se Ere } 6 gS See £/ 8) S| $] Se is =e c =| 2 sIt5 o).£) 3] £ Fabs sis oe 6g «68S EISE El S| Si Sl SS Diagram Showing Traffic Density Distribution Between New York and Washington Upon Completion of Electrification number and time of the scheduled freight service is ar- ranged from season to season, Spring and Summer, Fall and Winter, in such manner as it is expected will best serve the traffic it is anticipated will be offered dur- ing that season. The different classes of traffic offered are studied and the freight schedules are arranged as far as possible to meet the varying requirements of these different freight classifications. It is apparent that in the electric operation of this arranged traffic, in which the slack times of passenger traffic are filled by freight traffic, the load factors will be better and more nearly uniform, day by day, than could be expected with a more hap-hazard movement. To provide for this electrification, 1,082 miles of track are being electrified, necessitating the erection of 8,000 steel poles with their foundations; the string- ing of 1,082 miles of overhead catenary construction ; 855 circuit miles of transmission line for the high ten- sion circuits, as well as the construction or extension of 33 step-down substations ranging in capacity from 9,000 kva. to 27,000 kva. and the necessary step-up substa- tions to supply electric current to the transmission cir- cuits. The total substation capacity of the New York- Washington section will be 1,196,500 kva. In addition, 111 to 118 new passenger electric loco- motives, 71 to 88 new freight electric locomotives, 14 to 65 new switcher locomotives, and 86 to 114 new multiple unit passenger cars must be provided. Thirty- six existing locomotives will be altered for use in this service. Included in the material necessary for the project are 68,000 tons of steel; 38,000,000 pounds of copper ; 120 transformers of 4,500 kva. or over; 100 smaller transformers; 530 circuit breakers largely in the 1,000,- 000 or 2,000,000 kva. rupturing capacity classes. When the electrification to Washington is completed, it will require approximately 816 millions of kilowatt hours per year to operate the total P.R.R. a.c. traction territory. Winpows IN Upper Bertu.—A Pullman car with windows in the upper berth and arm rests which drop down from the back of the seat so as to give the passenger more comfort while reading has been placed in service on the Rocky Mountain Limited of the Chicago, Rock Island & Pacific operating between Chicago and Denver. The car is the “Island Rose.” RAILWAY AGE April 30, 1932 Freight Car Loading WasuincrTon, D. C. EVENUE freight car loading in the week ended April 16 amounted to 566,729 cars, an increase of 21,923 cars as compared with the week be- fore, although a decrease of 192,765 cars as com- pared with the corresponding week of last year and of 325,977 cars as compared with 1930. Increases as com- pared with the previous week were shown as to all commodity classifications except merchandise, 1. c. 1; and the increase in miscellaneous freight amounted to 8,663 cars. The summary, as compiled by the Car Service Division of the A.R.A., follows: Revenue Freight Car Loading Week Ended Saturday, April 16, 1932 1932 Districts 1931 1930 aR my: swine e-tus dr a ee eee 8 134,402 177,355 200,610 AEN eee eee re 114,396 155,849 184,035 EE TREE SR Ee ree 35,470 42,590 52,320 I ck dik ce was bower cw 0 bere 86,626 121,025 142,704 I. aio Ss. 5. 5 4'a 0-40 Se aes 64,116 87,306 107,423 Ce NE onset de nee nse 85,048 108,085 128,083 DE Ghidinewksee sion weweces 46,671 67,284 77,531 Total Western Districts............. 195,835 262,675 313,037 TO Fee Sin nb doce ee eicas veces 566,729 759,494 892,706 ommodities Grain and Grain Products.......... 31,839 39,641 37,405 SS SR ee 20,137 22,024 23,290 GERRI SS Gy Sy SC eer Ora 94,354 110,947 125,061 IE REP SESE ay Soy ee eee 4,065 6,382 9,464 SEPT Ee eer re 20,014 34,096 56,759 a re an ark as was ahiah aece haw 4,320 7,418 13,450 eS Sa ere 186,924 225,373 249,480 I gid. Sivicic sch wedverkeess 205,076 313,613 377,797 a, Soe 566,729 759,494 892,706 i Bee ere eer 544,806 737,272 911,316 I Macao dang wa wiste nu ele side ate 544,961 727,852 908,059 I a ONS col ilar olan Gal iia eae 561,118 738,880 885,324 DE, aie d-kie sum ols nch-binr dee a WOARwis ee 584,634 741,253 875,385 Cumulative total, 15 weeks........ 8,452,368 10,868,876 13,205,510 Car Loading in Canada Car loadings in Canada for the week ended April 16 amounted to 41,509 cars which was an increase over the previous week’s loading of 77. The Western Divi- sion was up 1,286 cars with a total of 15,202, grain showing an increase of 1,687 and miscellaneous freight an increase of 574 cars, but the Eastern Division, with a total of 26,307 cars, was down by 1,209. After ad- justment for seasonal variations, the index number for total loadings in Canada was 72.38 as against 72.39 the previous week. The index number for total merchan- dise loading dropped from 83.90 to 80.98, which is the lowest reached this year. Total Total Cars Cars Rec’d from Loaded Connections Total for Canada - 2 Sree ee 41,508 21,637 oS ES ae er ee 41,432 21,586 April NER tere ere re 41,391 23,152 SE, GEL FEE itensecet erie sosace 49,714 27,704 Cumulative Totals for Canada a Ss Se rr eee 616,557 325,579 I sah 05s cxees enon 702,872 419,222 fee ere 855,761 553,226 Tue Ono VALLEY Suppers’ Apvisory Boarp has organized a freight claim prevention committee and has taken initial steps to reduce loss and damage. The committee plans to send circulars to the membership, offering constructive suggestions in the packing, loading and handling of freight. The contact committee will compare practices generally in vogue in the handling of certain commodities and may suggest changes. THE TELEPHONE is to replace the telegraph for all official purposes on the Swedish State Railways, by order of Director General Axel Granholm. After thorough tests, the railway authorities have found, according to the American-Scandt navian Review, that the use of telephones will save 250,000 kronor (approximately $67,000) annually; that messages will be clearer, and that the number of employees will be reduced. rv ided ease be- 249,480 377,797 892,706 911,316 908,059 885,324 875,385 205,510 April > over Divi- grain reight , with ar ad- er for 39 the rchan- is the 1 Cars d from ections ganized | initial to send yestions contact in the ges. official irector- railway .Scandi- 250,000 ges will reduced. M-K-T Constructs Longest Litt Span Additional features of new bridge are extensive use of silicon steel and a_ special design of electrical oper- ating and control machinery more than 1,200 tons, the longest lift span ever built for railway loading; an extensive use of silicon steel in both the movable and fixed spans; a novel design of electrical lifting and automatic-leveling machinery, developed expressly for this structure; and provision for offsetting the track to accommodate a future gauntlet, are among the features of a new single- track bridge over the Missouri river which the Missouri- Kansas-Texas has completed recently at Boonville, Mo. This structure, which consists of three 300-ft. and one 247-ft. fixed through trusses, one 60-ft. through plate girder span and the 408-ft. lift span, was completed at a cost of $1,000,000. The substructure consists of five concrete piers extending to rock at a maximum depth of 59 ft., and two abutments resting on pile foundations, which also extend to rock. A VERTICAL lift span, 408 ft. long, weighing Old Bridge Gave Long Service The structure which the new bridge replaces was built in 1872. Although the superstructure had been replaced twice since that date, the substructure remained in service until it was dismantled following the opening of the new bridge. The old bridge consisted of five fixed through-truss spans, varying from 220 ft. to 254 ft. in length, a 360-ft. swing draw span and a short span of timber stringers at the south end over the Missouri Pacific tracks. The substructure consisted of four stone piers, three iron twin-cylinder piers and one abut- ment, all of which were sunk to rock, except the north pier which rested on a pile foundation. The old spans involved in the latest replacement were erected in 1894- 1896, and were designed for the equivalent of Cooper’s E-30 loading. While it had been necessary to reinforce certain members, particularly the counters, these spans remained in service until the new bridge was opened. For several years, however, owing to the increasing weight of motive power and cars, it had been necessary ANI INV Nie a gated Vee Down-Stream View of the Completed Structure—The Old Bridge in the Background 729 Fixed, Cantilever Gantry Crane Used in Erecting the Counterweight Cable Sheaves to restrict the speed of trains over the bridge. l*urther more, the heavier loading which the structure was re- quired to carry, combined with the natural effect of weathering, had resulted in a gradual disintegration of the stone masonry in the piers. Jl or these reasons, it became evident by 1929 that the entire structure must be replaced shortly. Low-Level Type with Movable Span Selected Preliminary investigation indicated that it would be more economical to build the new bridge on an offset alinement, which also had the advantage of permitting the old structure to be used without interference during the construction period. [Turther studies were then made to determine the relative economy of a high-level bridge which would not require a draw span and one of the low-level type with a movable span. These studies developed that a bridge of the high-level type would require extensive line changes on both sides of the river, while only minor changes would be necessary for a low-level bridge. +% Gy ~s OAS DAs XU IRA iN TAIN BRN = nk ' ] nx \ b, ‘f KS 730 RAILWAY AGE Two Derricks Were Used to Erect the Lift Span On the south side of the river the line passes approxi- mately through the center of Boonville, a city of 6,500, where the cost of the property necessary to accom- modate these changes would have been quite high. In addition, the construction of a bridge at the high level would have involved heavy grading, particularly across the low-lying bottoms north of the river. Neither the present nor the prospective traffic was of sufficient magnitude to justify the added expense of a high-level bridge, as compared with one of the low-level type, so the latter was selected. The new bridge is parallel to the old one and is located 65 ft. downstream from it. An act of Congress authorizing the construction of the new bridge was approved on March 10, 1930. Plans were presented to*the war department at once and were approved on June 23. substructure was awarded on July 9 and the equipment necessary to prosecute the work was all assembled on the site by the latter part of that month. The first caisson, that for pier No. 3 at the north end of the lift span, was landed on August 22, and the entire sub- structure was completed on November 25, four months after actual construction began. Construction of the Piers and Abutments In building the four channel piers, steel caissons topped with wooden coffer dams on steel framing were used. All of these piers were sunk by the pneumatic process, passing first through a light layer of silt and sand, and then through clean sand to bed rock, which was overlaid with about one foot of coarse gravel. The rock at this point is a hard, well-bedded limestone, which required only a minimum amount of excavation. Bed rock reaches a maximum depth of 59 ft. below standard low water at pier No. 1 and rises gradually to the south, until at pier No. 4, at the south end of the lift span, it reaches an elevation 28 ft. below low water. From this point it rises more rapidly to pier No. 5, which is located on the south bank of the river, the footing of which is only 3 ft. below low water. This latter pier was constructed in an open coffer dam, as were the two abutments, which rest on piles which were driven to rock. A central mixing plant was set up on the north bank of the river and the concrete for the piers was handled from this plant to the point of delivery by means of tram cars which operated over a temporary tramway that was bracketed to. the bottom chord and stringers of the old bridge. Aggregates were stocked separately, being unloaded by means of a locomotive crane which also served the loading hoppers at the mixer. The docks at the four channel piers were driven and the caissons handled by means of derrick barges. The contract for the April 30, 1932 While the piers and abutments were under construc- tion, plans and specifications for the superstructure were being prepared, and the contract for fabrication and erection was awarded on March 4, 1931. During the spring and summer the grading and track work for the new approaches were completed to give the erection forces access to both ends of the bridge. Erection of the fixed spans was started in August and completed about November 15. Since it was impracticable to erect the lift span without blocking the channel, this part of the work was left until the close of navigation, after which the swing span could be closed permanently. Falsework was driven immediately after navigation closed, beginning on December 7. Erection was started at once, and, together with the installation of the lifting machinery was completed in time to permit the bridge to be opened for traffic on February 1, 1932. Falsework and Erection Methods Erection was accomplished in the conventional man- ner by means of pile trestle falsework. The piles were set in place and the driving done from the track level by one of the erection derricks equipped with swinging Penetration up to 40 ft. was obtained for the leads. Close-Up of the Completed Lift Span and the Operating Towers piling under the three fixed spans north of the lift span. Under the south fixed span and the lift span, however, the maximum penetration was only 5 ft. while it was necessary to set many of the piles on the bare rock at the bottom of the channel. As the steel was received, it was unloaded by a loco- motive crane, assisted by one of the derricks for such members as were beyond its capacity, and sorted for convenient handling. The sorting yards were located in the spaces between the old and new lines at each end of the bridge. Erection was started at the north end of the bridge and completed progressively to the lift span, after which the girder span and the fixed through truss south of the draw span were erected. Speed of Erection Was Important Speed was of the utmost importance in the erection of the lift span. Ice and high water are common in the Missouri at the season when this work was in progress, so that this probability, combined with the lack of lateral support for the foot of the piles, made it desirable to be prepared to swing the span free from the falsework at the earliest possible date. To accomplish the erec- tion as quickly as possible, two derricks were used, one working from each end. By December 27, the assembly ame ams tt a =* © © ehh 8s = be = = ial ed Vol. 92, No. 18 of the steel was completed and riveting had been ad- vanced to the point where the span was self-supporting, but it was not swung entirely free for several days thereafter. Silicon steel was used in the truss spans, except for the floor system and top laterals, which are of open- hearth steel. The spans were designed for Cooper’s E-70 loading for single track, with a permissible stress in tension members of 24,000 lb. a sq. in. The design also provided for an offset from the center line to permit the future installation of a gauntlet, although for the present the single track over the bridge will occupy the center line of the structure. All members of the towers are open-hearth steel except the lower half of each of the front legs, which are of silicon steel. This feature permitted the use of the same section throughout the length of these columns. Longest Vertical-Lift Span As has already been mentioned, the vertical-lift span has a length of 408 ft., giving a clear opening of 400 ft., and is the longest lift span ever built for railroad loading. The vertical rise of this span is 30 ft. and it has a clearance when fully seated of 39.4 ft. above low water and of 27 ft. above high water. The weight of the structural steel is 2,110,000 lb. or 1,055 tons, while the total weight requiring counterbalance is 2,- 409,500 Ib., or slightly more than 1,200 tons. The total weight of the structural steel in all of the spans is 3,524 tons. The lift span is counterbalanced by means of counter- weights which are suspended from 64 cables running over four sheaves at the tops of the towers. These counterweights are constructed of concrete and pig iron in steel boxes, each containing approximately 50 tons of structural steel, 150 tons of concrete and 400 tons of pig iron. For the reason that the construc- tion and loading of these boxes required a considerable period, which was not available after the erection of the lift span, they were built and filled before the channel was blocked by the falsework. To accomplish this, the boxes were hung on tem- porary links from the tower girders, and were com- pleted and filled by December 1. It is interesting to note that no equalizers were employed to assure a uniform tension in the counterweight suspension cables. On the contrary, the cables were cut to exact length and applied without provision for initial adjustment. After the span had been erected, the unstretched cables were connected to the counterweights, but in this position they lacked 21 in. of connecting with the lift span. The span was then raised on hydraulic jacks high enough to make a <0 1,638-1" Face ioface of back walls > 1] TulES (2 i —— 27 —a —_——— 408:4" _ ——360°8" Draw * A 1 Cable lines. / ‘ \ jlo Parsons Piet 5 3 Sou aby ment we Flev.584.15 high water- ane 249'-6" 414-1" _-Cable lines ‘Elev. 571.75 low 303-7" S—— 30412" RAILWAY AGE 731 Operator’s Table and Control Panel the connections, after which it was lowered to trans- fer the load to the cables, thus releasing the temporary links which had supported the counterweights, and allow them to stretch. An ingenious method was devised for placing the four counterweight sheaves in position at the tops of the towers. Each sheave carries 16 of the 2%-in. steel-wire cables which suspend the counterweights, is 13 ft. 1 in. in diameter and weighs 36 tons. To in- sure the safe erection of these heavy and bulky mem- bers a special design of fixed, cantilever gantry crane was employed, which was operated by the derrick car that was used to transport the sheaves from the storage yard. By means of this device the average time of landing a sheave on its bearings after it was picked up in the yard was 25 min. Lifting and Control Mechanisms Not the least interesting feature of this structure is the machinery which raises and lowers the movable span and at the same time automatically controls its move- ments. This is the second vertical-lift bridge in which independent haulage lines for raising and lowering the span have been eliminated and these movements ac- complished by direct drive from motors to the counter- weight sheaves. Since this method of operation re- quires independent power units at each end of the span, there is a strong probability that because of the length and weight there will be unequal travel of the two ends. To overcome this tendency, a novel method of control was specially designed, which automatically 300-0" >I(* 300-0" — od — 300-0 244°2'Vertical -+050% Grade To St.! > '- Sand and silt North c 304°6 ‘Approx. rock line Diagram Showing Relative Locations of the Old Bridge and the New Structure 732 RAILWAY AGE keeps the span level or stops the movement if it be- comes seriously out of level. Duplicate power drives are located in each of the towers, the only difference between them being that the positions of the several units are reversed in the op- posit towers. The prime mover in each tower is an 80-hp. slip-ring induction motor which is directly con- nected through reducing gears to the counterweight sheaves. Coupled to the same shaft is a duplicate of this motor, which is utilized as a synchronizing motor. The two synchronizing motors in the opposite towers are cross-connected electrically by having their secondaries connected together, opposing each other, and under normal operation each one generates exactly the same voltage, so that no current flows between them. If either operating motor begins to run at a higher speed than the other, however, so that it tends to raise or lower its end of the bridge too fast and thus bring it out of level, the balance between the synchronizing motor secondaries is upset and current begins to flow from the motor which is running at the higher speed to the motor in the opposite tower. The result is that the latter immediately begins to increase in speed due to the additional current supplied. Again, if either motor fails from any cause, the synchronizing motor in the opposite tower may be used to feed current into the synchronizing motor in the first tower, thus converting it into an operating motor to handle its end of the bridge until the trouble is remedied. This is the first time that a synchronous tie has ever been used to control the movement of a lift span or provide for emergency operation in the event of the failure of one of the operating motors. As a precaution against out-of-level condition due to breakdown of the synchronous tie, an auxiliary system of automatic control has been installed which functions independently of the synchronous tie between the oper- ating motors. In this system, which has been designated the Selsyn system of control, Selsyn generators, driven by a shaft from the reduction unit, operate to throw resistance in and out of the secondaries of the driving motors, thus slowing down the leading end. This sys- tem is independent of the synchronous-tie control and cannot be used with it. A hand control, however, is provided for leveling through the motor secondaries with the same system the Selsyns use, in case the Selsyns fail to function. These latter two features may be operated at the same time without damage. A similar Selsyn system, driven by a sprocket chain, one end of which is attached to the lift span and the other to the counterweight running over suitable drive sprockets independent of both other leveling systems, has been provided for use in the event that the first Selsyn unit ceases to function, and may be utilized by throwing a switch in each tower house. Other Functions of the Selsyn Control One unit of the Selsyn equipment actuates an indica- tor on the operator’s table, which shows the relative ele- vations of the ends of the span. If the difference in elevation reaches a maximum of six inches, power is shut off automatically and the brakes applied. By tak- ing the necessary action, the operator is then able to apply power to either end separately and thus bring the span level. Another unit operates through limit switches for con- trolling the extremes of span travel. As the limit of travel is approached, this unit throws in resistance to slow down the motors and still later cuts the current off entirely. At this point the operator is able to reapply the power for slow-speed movement and the April 30, 1932 span completes its travel with a minimum of impact. In cases of emergency, such as failure of one or both of the synchronizing motors and Selsyn generators, the operator is able to control the operation manually as described above, and with the aid of the Selsyn in- dicator he can know at all times the relative elevations of the ends of the span. All of the electrical machinery is arranged for normal operation, using the synchronizing motors. Switches governing emergency methods of operation, as well as the control cabinets in the towers, are kept sealed with standard car seals. To perform any operation other than those of routine normal procedure, the attendant must break a seal and must then report promptly with full explanation the reasons for change from the normal operation. Further provisions for the safety of operation in- clude a system of interlocking, whereby power cannot be applied to the motors unless the track across the bridge is clear and all signals and derail switches are set against approaching trains. Side and end guides are provided at each end of the span to keep it in proper longitudinal and lateral alinement while in motion. In addition, brakes are applied automatically at any stage of the movement whenever the power is cut off. There are also the usual provisions for protection against overload, no load, and low voltage, and for phase reversal. Unbalanced Load As was stated, the weight of the span is counter- balanced by the counterweights. There is, however, a maximum unbalanced weight of 9,000 Ib. which is created by the cables when the span is at either the upper or lower limit of travel. In addition, the fric- tion load amounts normally to about 60,000 lb. for each end of the span, while inertia imposes an addi- tional load at starting. For these reasons, although a lock has been provided to guard against longitudinal drift when the span is in full seated position, a lock to prevent vertical movement was considered unnecessary, since the combination of inertia, friction and the un- balanced weight of the cables provide forces of suffi- cient magnitude to prevent such movement without the application of power. Furthermore, when the bridge is in the fully raised or fully seated position, the power is off and the brakes are applied, as already explained. In addition, the motors remain in gear with the sheaves, so that the resistance to movement provided by the operating machinery is multiplied many times through the reduction gears. Power for operating the bridge and supplying the necessary lights, including navigation lights, is obtained from a commercial supply at 2,300 volts, 3 phase, 60 cycles. This current is stepped down in a transformer station, which is located near the south end of the bridge, to 440 volts for operating the bridge and to 110 volts for the lighting circuits. All communication and power wires are carried on brackets outside of the trusses, thus obviating the necessity for submarine cable. The track on the bridge and approaches is laid with 110-Ib. R.E.-section rail, with GEO fastenings. The inside guard rail is a 90-Ib. section and is fastened with cut spikes. The entire construction was carried out under the direction of F. Ringer, chief engineer. The general plans and specifications were prepared by the late R. M. Stubbs, bridge engineer, who also supervised the con- struction of the substructure and the initial stages of the superstructure. S. M. Smith, bridge engineer, ith ‘he ith the ral on- of eT, Vol. 92, No. 18 supervised the completion of the work and G. L. Staley, assistant bridge engineer, was in direct charge on the ground. The substructure was constructed by the Kansas City Bridge Company. The American Bridge Company had the contract for the fabrication and erection of the superstructure and for the dismantling of the old bridge, but sublet the erection and the removal of the old bridge to the Kansas City Bridge Company. The electrical equipment was designed by the General Elec- tric Company in co-operation with the railway and the American Bridge Company, and the latter made the installation of this equipment. Water Transport Committee Fails to Agree WasuincrTon, D. C. Al HE Special Committee on Water Transportation of the Chamber of Commerce of the United States, i after a series of meetings, has been unable to reach agreement on a single report. Two reports, designated as Report A and Report B, were accordingly prepared, each representing the views of seven members of the committee whose signatures are attached and the board of directors has ordered that both be published and distributed for the information of the membership. The full committee has expressed itself in favor of the ultimate sale of the publicly-owned barge lines to private parties and believes that fully satisfactory opera- tion can be secured only through private enterprise. The members of the committee signing Report A be- lieve that the demonstration as to the practicability of inland water common carrier transportation for which the Inland Waterways Corporation was created “is now sufficiently advanced so that definite steps compatible with the public interest can and should be taken to bring about the sale to private interests of at least a sub- stantial part of the government-owned barge lines.” Those signing Report B believe that until the condi- tions of the law providing for the transfer of the lines to private operation have been complied with no further action by the Chamber is desirable. “Steps, however, might well be taken,” they say, “‘to hasten compliance with law and thus automatically bring about the trans- fer of these lines to private operation. Meanwhile, the Chamber of Commerce of the United States should not be placed in the position of opposing water transporta- tion of any kind by urging the transfer of these lines in advance of the creation of the very conditions essential to the success and permanency of private operation.” In view of the division, both reports were referred to the Transportation and Communication Department Committee for recommendation as to further procedure. In recommending to the board of directors that both be distributed as information, on the sole authority of the respective signers that committee recorded its approval of Report A, which is signed by the chairman of the special committee, H. I. Harriman, chairman of the board of the New England Power Association, and by Harry A. Black, W. C. Cowling, S. O. Dunn, Jens P. Jensen, Fred W. Sargent, and A. R. Smith. Report B is signed by William R. Dawes, Marshall N. Dana. George C. Lambert, B. F. Peek, Albert L. Reed, M. J. Sanders, and T. G. Woolford. The. findings and recommendations of Report A are summarized as follows: RAILWAY AGE 733 It is believed that no expenditure for the improve- ment of an inland waterway for navigation purposes should be made until— (1) The project shall have been thoroughly surveyed and the probable future annual charges to navigation, including interest, obsolesence, maintenance and operation determined; the kinds and amounts of traffic which will ultimately use the completed waterway shall have been estimated; and the expected savings in transportation costs to this probable traffic shall have been determined; (2) The Chief of Engineers shall have reported that the transportation benefits will exceed the estimated annual charges by a reasonable surplus to cover construction and other con- tingencies, and should also take into account the fact that no taxes are assessed on the government expenditures for the improvement. It is recommended relative to joint rates: (1) That.carriers and shippers join in studying the possi- bilities of a sliding scale of differentials for different com- modities moving over the same joint rail-and-water route. (2) That divisions of joint rates should be such as will not impose upon participating rail carriers the burden of absorbing any part of the differential. To summarize relative to the government barge lines, it is recommended— (1) That the Warrior service be promptly offered for sale. (2) That the Denison Act be modified to permit the sale at any time of barge line units to responsible purchasers will- ing to guarantee continuous and adequate service for the neces- sary periods of years. (3) That the modification of the Act recognize the lower Mississippi operation, that on the upper Mississippi and that on the Illinois as separate units for purpose of sale, similarly safe-guarded to assure continuation of adequate service and coordination with other waterway services as well as rail carriers. . “The improvement of an inland waterway is justifi- able,” Report A says, “when the estimated value of the resulting transportation benefits exceeds the charges upon the government for establishing, maintaining and operating the waterway. To apply such a test the prin- cipal elements involved—charges and transportation benefits—must be defined and reduced to a common basis, preferably an annual basis. “The total construction cost will be the sum of the out-of-pocket expenditures on the improvement, includ- ing the interest during construction and proper interest charges during the period of development of the antici- pated traffic. The annual charges will include the in- terest on this sum at the normal rate which the gov- ernment pays for sums borrowed, a proper allowance for obsolescence and estimated expenditures for mainte- nance and operation. “It should be noted, however, that in the development of an inland waterway other elements than transporta- tion will frequently enter into consideration, such as flood control, power development, irrigation and rec- lamation. In such cases, only those costs and operating expenses which are properly chargeable to transporta- tion should be taken into. account, and transportation should not be charged with the costs incurred for other purposes.” Report B expresses the conclusion that “the law pro- vides adequate safeguards for the adoption of projects and the expenditure of public moneys in the improve- ment of waterways, and that no further legislation on that subject is needed at present. So much cannot be said, however, for the archaic methods of financing these projects still employed by Congress. There is room here for the adoption of business methods which will save the taxpayers hundreds of millions of dol- lars, and give the public the beneficial use of these improvements within a reasonable period of time. Con- servative calculations disclose that piecemeal methods 734 of the past increase the cost at least forty per cent over original estimates and authorizations—witness the Ohio River, which was estimated to cost $63,000,000, and actually cost, after 20 years of piecemeal work, in ex- cess of $100,000,000. “While the present law invites consideration of capital cost in its relation to public benefits, it does not compel a rate of interest or return which would con- template liquidation of the entire expenditure by the present generation. The cost of these improvements has, in practically all cases, been defrayed from current budget appropriations just as appropriations are made for public buildings and public highways, the cost of which is not witnessed by bonds or other interest bear- ing obligations. And the rivers are highways, under the exclusive control of Congress, and dedicated to the perpetual use of the public. There is no sound reason why, in their construction, the public should be bur- dened with a rate of interest higher than that which the Government is obliged to pay. “That barge line services owned by the Government should be transferred to private operation is generally conceded. Shippers in the territory where these lines operate are especially insistent on that point, and are therefore anxious that the conditions be speedily created which will insure the success and permanency of pri- vate operation. Here again Congress has formulated a definite policy. “It must be noted that the Government barge line services cannot, under the law, be discontinued until there shall have been completed in the rivers where the corporation operates, navigable channels, as au- thorized by Congress, adequate for reasonably depend- able and regular transportation services thereon. The corporation operates on the Mississippi river and on the Warrior river. Channel projects, as authorized by law on these streams, are practically completed with the exception of that portion of the Mississippi river between St. Louis and the Twin Cities. The only legal and effective way, therefore of hastening the transfer of these lines to private operation is to hasten the com- pletion of the channel authorized by Congress.” An appendix to Report A sets up a comparison by years of the operating income of the government barge lines as reported by the Inland Waterways Corporation for the twelve years ended with 1929, showing a net of $495,160 for the period for the Lower Mississippi division, but a deficit of $4,944,178 for the system in- cluding the Upper Mississippi and Warrior divisions. Compared with this is another table taking into account interest on the investment at 5 per cent and taxes at 1% per cent for the six years ended with 1929 showing a total six-year deficit of $5,521,000. The year 1930 was not included in the tables because the corporation’s report for that year does not break the figures down as between divisions. It indicates a profit for the three divisions amounting to $46,767 according to the cor- poration’s method of accounting, but “taking into con- sideration interest and loss of taxes” the report says. “this apparent profit would be converted into a deficit of approximately $1,275,000.” FIFTY-FOUR NEW LOCOMOTIVES are to be built during the cur- rent year in the shops of the London & North Eastern (Great Britain). Included in this number will be five high-pressure express locomotives of the 4-6-2 type for main line traffic; six of the three-cylinder 4-6-0 “Sandringham” class; 10 heavy 2-8-2 tank locomotives for mineral traffic in the Nottingham area, and two booster-equipped switching locomotives of the 0-8-4 tank type for Whitemoor yard RAILWAY AGE April 30, 1932 Freight Rates 6.77 Per Cent of Commodity Values (Continued from page 724) haul. The fact that one class shows a higher freight revenue per ton than the average for another class, or for all classes, does not necessarily indicate that the freight rates are out of line. The variation may result from a difference in length of haul or from a differ- ence in other conditions of transportation. Load per car and length of haul, not shown here, are items that relate to the cost of the service performed. If one is interested simply in what the traffic will bear, the haul and load need not be considered. From the stand- point of what the traffic will bear, it is the total freight burden per ton that is of importance. The last column in the table, showing the percent which the freight revenue is of the value at destination, thus has signifi- cance only with respect to one of the elements usually considered in rate-making. But even in this connec- tion it may be noted that what the traffic can bear is affected by the extent to which the shipper who pays the freight can shift the burden to his customers and on whether or not the traffic is suitable for haulage by other than railway transport agencies. “It is obvious that the freight burden is not generally adjusted in proportion to commodity values. Of the values at destination, the freight paid represents a much larger element in some cases than in others. A high ratio of freight charge to value at destination is not on its face an evidence of injustice. In some cases the haulage to market may cost as much as getting the commodity out of the ground ready for transport, and the market value at destination may barely cover the sum of the two costs. Freight charges are a large factor in the destination prices of bituminous coal, gravel and sand, stone, cement, brick, lime, ice, hay, straw, and fresh fruits and vegetables, but are a relatively small factor in the prices of wool, leather, tobacco, and cloth. The average percentage for all commodities for 1930 was 6.77. This figure can not properly be compared directly with the corresponding figure of 7.08 per cent shown in the 1928 study because of the revisions in the 1930 study of some of the values per ton for reasons other than those resulting from the downward trend of prices. If such revisions had not been made, or if the 1928 study were re-worked with the revisions .in- cluded, a somewhat larger percentage would appear for 1930 than for 1928 because the freight rates -did not decline in proportion to the decline in the value of the commodities. Changes in the ratios of various classes of commodities to the total in 1930 compared with 1928 had only a slight effect, as is shown by the fact that when the 1930 values per ton are weighted by the 1928 tons, the average ratio of revenue to value is 6.56 per cent compared with 6.77 when the 1930 tons are used as weights. “The total value of the freight transported by Class I railways in 1930 is shown as $62,090,176,000, of which $10,383,352,000 is for 1. c. 1. freight and $35,364,- 915,000 for carload manufactures and miscellaneous, leaving only $16,341,909,000 for products of agricul- ture animal husbandry, mines, and forests. For the $45.7 billions of value in the first two items, $1.85 billions of freight revenue was collected, while for the $16.3 billions of value, $2.36 billions of freight revenue was collected, the percentages being 4.05 and 14.42.” Data for this study were compiled under the direction of Mr. Edward Crane, a statistical analyst in the bureau. Wi m M ati We ing irc ae ee eee Ee ee -_ — ass ich 4, us, cul- the |.85 the nue tion eau. Grain Rate Case Reopened Carriers’ witnesses present revenue statistics before Interstate Commerce Commission at Chicago HE western grain rate case was reopened at | Chicago on April 20, when witnesses for western carriers seeking increases in rates on grain and grain products testified before Examiners Arthur R. Mackley and George J. Hall of the Interstate Commerce Commission. The re-opening of the case followed a decision handed down by the Supreme Court of the United States on January 4 setting aside the Inter- state Commerce Commission’s downward revision of western grain rates on the ground that the commission had denied the railroads’ application for a re-hearing in spite of the fact that drastic changes had occurred in economic conditions and in railroad earnings between the close of the hearings in the case and the date of the commission’s order in 1931. The decision was rendered on the appeal taken by the Atchison, Topeka & Santa Fe and other western roads from the decision of the district court for the Northern district of Illinois last July which court, after first temporarily enjoining the rate reduction, later held the commission’s order to be within its powers. It had been hoped that the highest court would find occasion to pass upon the power of the commission to reduce rates on a major class of freight throughout a wide territory in the face of a specific finding that the railroads, as a group, had never earned the fair return contemplated by Section 15-A. Instead, however, the court ordered the case remanded to the lower court with directions to grant the injunction on the funda- mental ground that the commission had refused, in March, 1931, to grant the re-hearing and reconsider- ation repeatedly asked by the carriers. The original order of July 1, 1930, reducing rates, was to go into effect on October 1, 1930, but because of mechanical difficulties in the preparation and print- ing of the tariffs, the effective date was postponed from time to time. In September, 1930, the carriers asked for a re-hearing, which petition was denied in November, 1930. Prior to its denial a statement was submitted to the commission on behalf of the Western Association of Railway Executives, directing attention to the serious financial condition of the railways. A further petition for a re-hearing was presented to the commission on February 18, 1931. In this petition the carriers alleged that since the closing of the record before the commission in September, 1928, there had been material and important changes in operating, trafic and transportation conditions in the western district which affected adversely the revenues of the carriers, and that regardless of the question of the validity and propriety of the order when made, it would no longer be valid and proper in the light of existing circumstances. The roads offered to show that if the order became effective, it would reduce the gross and net operating revenues of the carriers in the western district not less than $20,000,000 annually. The commission denied the application for re-hearing on March 3, 1931 and on April 10, made its supple- mental report and order, modifying and supplementing in certain particulars its original report and order and provided that the order as thus modified should become 735 effective on June 1, 1931. Thereupon, suits were brought in the federal court at Chicago. Hearings To Be Held in Other Cities Because of the sudden opening of the hearing at Chicago without provision for hearings at other points, interested parties contended that by reason of lack of time in which to prepare exhibits, their evidence could not be presented at the Chicago hearing and, therefore, petitioned the commission for hearings at various points throughout the West. State railroad commissions of Minnesota, Iowa, Missouri, Arkansas, Kansas, Ne- braska, Oklahoma, Texas, Wyoming, North Dakota and South Dakota requested that a second hearing be held at Kansas City, Mo. In addition, agricultural and steamship interests, shippers and farmers petitioned the commission to hold additional hearings at Hutch- ison, Kan., Ft. Worth, Tex., Minneapolis, Minn., Seattle, Wash., and Los Angeles, Cal. On April 25 Examiner Mackley announced that within two or three days after the conclusion of the hearings at Chicago, they would continue at Kansas City, Mo., and would then move to Ft. Worth, Minneapolis, Seattle and Los Angeles. The hearing will probably be concluded at Chicago in the fall unless the commission decides to hear testimony during the summer months. At the opening of the hearing Clyde Reed, former governor of Kansas, asked for permission on behalf of farm interests in his state to introduce records from the previous investigation, bearing on the changed economic conditions. A. B. Enoch, general attorney for the Chicago, Rock Island & Pacific, and in charge of the presentation of testimony for the western rail- roads, objected to the proposal to throw the inquiry “wide open,” contending that if rates were fair, the economic plight of agriculture should not be stressed. The examiners, however, gave both sides full latitude to introduce whatever testimony they wished on eco- nomic conditions as a means of bringing the record down to date. This decision resulted in great freedom in cross-examination, the carriers’ witnesses being asked questions by opposing interests on many matters not included in their testimony. Typical of this was the cross-examination of L. C. Fritch, vice-president of the Chicago, Rock Island & Pacific, who had testified that the financial plight of the railroads was due to reduced revenues and various forms of competition. Mr. Reed objected to the testimony because Mr, Fritch showed a drop in revenues, while fixed charges remained about the same. He asked Mr. Fritch, “Is it not true that for several years the roads have been making heavy capital expenditures in the face of decreasing traffic, which may partly account for these fixed charges?” While Mr. Enoch objected to the question, since Mr. Fritch’s testimony did not include capital expenditures, Examiner Mackley ruled that the witness might answer the question. Mr. Reed also suggested that operating efficiency might have some bearing on the expenses of the road and sought to question Mr. Fritch along this line. During the hearing at Chicago the railroads en- 736 RAILWAY AGE deavored to show that because of decreased revenues, the carriers are entitled to increases in rates on grain and grain products. Opposing interests endeavored to bring out through cross-examination that the railroads are not endeavoring to meet the competition from other forms of transportation, that in many cases the carriers have not established maximum rates and that net earn- ings have been concealed. Throughout the hearing the examiners showed interest particularly in testimony concerning reduced revenues resulting from the gen- eral depression and from other forms of competition and endeavored to ascertain which of the two causes was of major importance. Witnesses Show Extent of Revenue Decline The first witness, L. E. Wettling, statistician for the western carriers, introduced an exhibit comparing by years the property value and operating income of Class I railways in the United States and in the dif- ferent districts, gross expenditures for additions and betterments, the effect of declining railway revenues on average revenues per ton-mile, freight and passenger traffic, employees and their compensation, cars of revenue freight loaded weekly, indices of railway oper- ating efficiency, freight and passenger service operating statistics, freight traffic density, funded obligations maturing in the six years between 1932 and 1937, Mississippi River traffic on government-owned barges, federal barge line tonnage by divisions and commodities and Panama Canal traffic. His exhibits showed that while the rate of return on the total property invest- ment for all Class I railroads in the United States dropped from 4.96 in 1926 to 1.96 in 1931, it dropped from 4.30 to 1.83 in the western district during the same period, He also illustrated how other forms of transportation have cut into railroad traffic, stating that the traffic moving on the Mississippi river in government-owned barges increased from 849,503 tons in 1924 to 1,171,173 tons in 1931, while at the same time the total cargo through the Panama Canal in- creased from 4,888,454 cargo tons in 1915 to 25,082,- 800 cargo tons in 1931. To further indicate the present situation of the rail- ways, he stated that the revenue freight ton-miles in 1931 for all Class I railroads were 24.6 per cent under 1920 and 19.3 per cent under 1930, while in the western district the decreases were 23.3 and 20.2 per cent, respectively. Also, while the revenue passenger miles in 1931 were 53.3 per cent under 1920 and 18.3 per cent under 1930 for all Class I railways in the western district, they decreased 63.4 per cent under 1920 and 20.2 per cent under 1930. His exhibit also showed that of the total freight car-miles of all Class I rail- ways, 67.9 per cent were loaded in 1920, as compared with 60.8 per cent in 1931. At the same time the efficiency index, using the years 1920-1924 as a basis of 100, increased from 96.8 per cent in 1920 to 121.8 per cent in 1931. Mr. Wettling also included in his exhibits a record of the funded obligations maturing between 1932 and 1937, showing that the Class I roads of the western district have maturities totaling $86,323,957 in 1932, $144,937,870 in 1933, $192,488,573 in 1934, $96,452,- 515 in 1935, $199,201,000 in 1936 and $28,392,000 in 1937. J. A. Brown, assistant vice-president of the Missouri Pacific, testified to the effect of waterway, highway and pipe line competition on that railroad. He stated that during 1931 southwestern railroads lost between $75,000,000 and $100,000,000 in revenues which were April 30, 1932 diverted to other forms of transportation. To show the loss of business that has been suffered by the rail- roads in this territory as a result of Mississippi barge and Panama Canal traffic, he introduced a statement showing the traffic actually handled by water carriers in 1930 and the approximate rail revenue on such traffic. The revenue that would have accrued to the roads if they had carried the traffic that actually moved by water between Houston, Tex., and other gulf ports amounted to $5,025,916, he said, while the traffic mov- ing locally on the Houston ship channel would have earned for the roads a total of $1,382,224 and traffic moving by way of barge lines between points in Louisiana cost the roads $238,164. H. W. Press, assistant to the controller of the St. Louis-San Francisco, analyzed the transit shipments of grain and grain products on that road from Kansas City to certain destinations during the months of August, September, November and December, 1930. He then showed that while the net income of this road increased from $7,162,552 in 1925 to $10,192,073 in 1929, it then declined to $5,621,536 in 1930, to a deficit of $3,255,763 in 1931 and to a further deficit of $2,258,- 560 for the first two months of 1932. Another portion of his exhibit dealt with carload traffic involved in I. C. C. Docket 13535, showing the revenue at rates prescribed by the Interstate Commerce Commission or by the carriers and state railroad commissions pur- suant to the order in this docket, compared with the revenue at rates in effect prior thereto, for the months of October, 1929 and March, 1930. This statement showed that prior to the reduction in rates, the 30 railroads involved in the study received revenues amounting to $14,040,692 and that this declined to $13,167,584 after the adjustment. The average de- crease per car amounted to $17.61. Testimony for the northern lines, including the Chicago, Milwaukee, St. Paul & Pacific, the Great Northern, the Northern Pacific, the Minneapolis, St. Paul & Sault Ste. Marie and the Spokane, Portland & Seattle, was introduged by V. P. Turnburke, general auditor of the Great Northern, who presented exhibits showing that the net railway operating income for these roads decreased from $96,707,874 in 1928 to $28,833,726 in 1931, while the rate of return earned on the property investment dropped from 4.29 in 1928 to 1.24 in 1931 and 1.05 for the year ended February 29, 1932. In presenting his testimony for these lines, he emphasized the condition on the Great Northern, since that railroad made the best showing of any in the group. The net railway operating income of that road, he pointed out, decreased from $31,294,069 in 1928 to $12,669,420 in 1930, while for the year ended February 29, 1932, it was $11,130,986, the lowest since 1897. The net income after fixed charges dropped from $56,385,689 in 1928 to a deficit of $9,056,331 in 1930, the number of time fixed charges were earned decreasing from 1.84 in 1928 to 0.87 in 1931. In analyzing the income of the Great Northern, he stated that if it had not been for $8,300,000 received as a dividend on stock of the Chicago, Burlington & Quincy, the road would not have earned its fixed charges since its net income after fixed charges, including this divi- dend, was only $5,325,907 in 1931. These figures were supplemented by statistics from the Burlington which showed that the net railway operating income of that road decreased from $35,339,206 in 1929 to $18,193,266 for the year ending February 29, 1932. George W. Hand, assistant to the president of the Chicago & North Western stated that the rates on grain ORS 920th supa hoes kan thet eB DR fe eco Vol. 92, No. 18 and grain products should be so revised that the car- riers will receive 10 per cent more revenue from this class of traffic. Comparing the net railway operating income of the North Western with the fair return based upon the Interstate Commerce Commission valu- ation, plus additions and betterments, he showed that the net operating income of this railroad for the years 1921-1931, inclusive, amounted to $193,127,270, or $195,033,918 less than the fair return of 5.75 per cent. He also testified to the savings effected in various de- partments, showing that the savings in maintenance of equipment and in transportation expenses for freight service amounted to $3.10 per 1000 ton-miles in 1931, as compared with 1921. He stated also that this rail- road saved $1,537,701 in fuel consumed in 1931 as compared with 1921, while the gross ton-miles per train-hour in 1931 were 52 per cent greater than in 1921 and the net ton-miles per train-hour were 32.8 per cent greater than in 1921. In the cross-examination of Mr. Hand on truck competition, an effort was made to show that the North Western, through the Wilson Transportation Company in South Dakota, is cutting rates the same as other truck companies. The cross-examination also attacked his figures on fair return on the ground that the valu- ation fixed by the commission did not change with altering business conditions. An effort was also made to show that the North Western has not increased rates on fresh meat from Omaha to Chicago because of the influence of the packers, Following Mr. Hand’s answer that the North Western “hadn’t got around to it,” Mr. Enoch objected to the line of questioning as irrelevant and Examiner Mackley ended the discussion by stating that the witness had answered the question and if that was unsatisfactory, there were only two other answers, one being that the railroad cannot secure the packing house business with higher rates and the other being that the shippers control the situation. A, F. Cleveland, vice-president of the Chicago & North Western, testified that the carriers will not be able to realize on the increased rates proposed by the commission in the class rate case and that if the rail- roads are to survive they must secure more revenue from grain and grain products. In addition, he out- lined the effect of class rate decreases on trunk line territory revenue and the effect of truck competition upon the carriers’ revenues. To show how it is nec- essary to reduce rates in order to maintain business, he cited an example where his company was able to save $2,500,000 in revenue on a shipment of 6,000 cars of canned goods from one plant in Wisconsin to the Atlantic seaboard. In this case the shipper intended to ship by truck but by reducing the rate 8 cents, or $288,000, the railroad was able to secure the business. To emphasize further the effect of truck competition, he stated that the carload tonnage of the North Western was practically the same in 1930 and 1931 as it was in 1911, while the l.c.l. tonnage had decreased from 2,358,037 tons in 1911 to 1,300,754 tons in 1931. He estimated that in 1931 the North Western lost $11,- 230,978 in revenue on freight diverted to trucks. New York News or EIGHTEEN TuHIRTY-Two. (From the Evening Post—The Mohawk & Hudson Rail Road Company are now (April 23) having constructed and intend putting on the road in a short time a number of carriages of a new and very beautiful and convenient kind, These carriages are of a square form 15 ft. long, with the separate compartments, and will contain 18 persons with ease. Passengers, at the same time that they have more room, will be well protected from the smoke and coals of the engine. RAILWAY AGE 737 Disastrous Crossing Collision Not Explained P. BORLAND, director of the Bureau of Safety, Interstate Commerce Commission, - reporting on a collision near Wahpeton, N. D., in which three employees were killed and 14 other per- sons (including passengers) were injured, is obliged to report that the cause of the accident could not be defi- nitely determined. The collision was at a crossing about four miles west of Wahpeton, where the Great North- ern intersects the Chicago, Milwaukee, St. Paul & Pa- cific. Movements over the crossing are governed by an automatic interlocking system, and two trains proceeded to cross simultaneously as though each had clear signals. Both roads are level and the country is open, with a clear view in all directions. The tracks intersect at an angle of about 31 degrees. The collision occurred at about 5:50 p. m. on January 30, when the temperature was about 12 degrees below zero. A westbound freight train of the Milwaukee road, No. 463, a short train, entered upon the crossing at about 18 miles an hour; and it was struck by eastbound Great Northern passenger train No. 2 (eleven cars) moving at 35 to 45 miles an hour. The Great Northern locomo- tive struck the other one near the cab and both were badly wrecked. The Milwaukee engine was overturned and much damage was done to cars. On the Milwaukee train, both engineman and fireman were killed, while on the Great Northern the fireman was killed and the engineman injured. Engineman English of the Great Northern was posi- tive that the home signal cleared for him just after he passed the distant signal. He had been on this run 2% months during which time only once had he found the crossing occupied by a train of the other road. Engine- man Ostrander of the Milwaukee was a man of long experience with a clear record, and was deemed a care- ful engineman. His fireman also had a clear record. C. A. Dunham, superintendent of signals of the Great Northern, testifying at the inquiry, accepted the testi- mony of the Great Northern engineman and concluded that the signal for train No. 2 had been cleared; which indicated that necessarily the Milwaukee train did not have a clear signal. He said that it would be possible for the contacts on the track relays on the Milwaukee to become frosted and fail to set up the circuits as intended, when a Milwaukee train approached; and in that event “the Milwaukee signals would remain normal and a Great Northern train, thereafter entering its own approach circuit, would receive proceed signals.” A sudden change in temperature could result in the relays becoming frosted but it would take several hours for the relays to become sufficiently frosted to prevent nor- mal operation. It does not appear, however, that there had been any sudden change, the temperature having been very low for 18 hours or more. There had been many cases of frosted relay contacts within a-period of a few months and Mr. Dunham believed that frost in the relay caused the trouble in this case. The Great Northern maintains the signals at the crossing on both railroads. The general condition of the interlocking plant was reported good when inspected by the assistant signal supervisor on January 28, only two days before the collision. The interlocking was restored to service five days after the accident and the apparatus functioned in all respects as it should. 738 In its conclusions, the report holds it clearly estab- lished that the Milwaukee train first entered the control circuit; and, under normal operation, should thus have got a clear signal and should have held the Great Northern signals at stop. There was no direct evidence as to the signal indications on the Milwaukee, but the fact that the train continued toward the crossing in the normal manner and at the usual speed “strongly indi- cates” that the proper proceed indications were dis- played. But Engineman English was very definite in stating that his home signal was clear and nothing was found wrong in the apparatus, except as it was damaged as a result of the wreck. No evidence was adduced to support Mr. Dunham’s assumption that any relay was frosted. Both enginemen approached as though they had proceed indications, but there is no evidence except the statement of Engineman English. When the signaling was installed, in 1923, the two roads agreed in a contract that the speed of all trains over this crossing should be limited to 15 miles an hour. Subsequently this was changed to read 25 miles an hour for passenger trains and 18 for freight trains, but it appeared that the rules of the Great Northern, on January 30, did not conform to these limits; and 45 miles an hour was allowable for passenger trains. That is the limit in a general rule for main line movements at all interlocked crossings. Since the occurrence of this collision the lower limits, 25 miles and 18 miles, have been prescribed for this crossing. Also, the Great Northern has decided to install smashboards at the home signals on both roads; and on its own road to replace the semaphores with color light signals. House Committee Completes Railroad Bills Wasuincton, D. C. INAL agreement was reached by the House com- - mittee on interstate and foreign commerce on April 27 on the two bills to revise Section 15a of the inter- state commerce act and to increase the Interstate Com- merce Commission’s jurisdiction over acquisitions of control of railways by holding companies or individuals, on which it has been working since the first of the year. Redrafted bills were then introduced by Chairman Ray- burn of the committee and the committee was to meet and formally report out the new bills on Thursday. The 15a bill not only provides for the retroactive re- peal of the recapture provisions and the refund of the amounts already collected by the commission under them, but also for the repeal of the provision for a fair return on valuation of the present law, as previously agreed upon by the committee and reported in the Railway Age of April 16. In place of the present rate-making rule it proposes a simple instruction that “In the exer- cise of its power to prescribe just and reasonable rates the commission shall give due consideration, among other factors, to the effect of rates on the movement of traffic; to the need, in the public interest, of adequate and efficient railway transportation service at the lowest cost consistent with the furnishing of such service; and to the need of revenues sufficient to enable the carriers, under honest, economical, and efficient management, to provide such service.” An amendment of Section 19a is also provided author- RAILWAY AGE April 30, 1932 izing the commission to supplement its existing valua- tion records and keep itself informed of all new con- struction, extensions, improvements, retirements, or other changes in the condition, quantity, use, and classi- fication of the property of all common carriers as to which original valuations have been made, and of cur- rent changes in costs and values, to enable it to revise, correct, or supplement any of its inventories and valua- tions. It is provided that the general railroad contingent fund shall be liquidated, and that the Secretary of the Treasury shall distribute the moneys among the carriers which have made payments so that each shall receive “an amount bearing the same ratio to the total amount in such fund that the total of amounts paid under such section by such carrier bears to the total of amounts paid under such section by all carriers; except that if the total amount in such fund exceeds the total of amounts paid under such section by all carriers, such excess shall be distributed among such carriers upon the basis of the average rate of earnings (as determined by the Secre- tary of the Treasury) on the investment of the moneys in such fund and differences in dates of payments by such carriers.” The fund now amounts to about $13,- 000,000, including some interest accumulations. The so-called “holding company” bill has been con- siderably amended as compared with the form recom- mended by the Interstate Commerce Commission. It provides that it shall be lawful, with the approval and authorization of the commission, for two or more car- riers to consolidate or merge their properties, or any part thereof, into one corporation for the ownership. management, and operation of the properties theretofore in separate ownership; or for any carrier, or two or more carriers jointly, to purchase, lease, or contract to operate the properties, or any part thereof, of another; or for any carrier, or two or more carriers jointly, to acquire control of another through purchase of its stock; or for a corporation which is not a carrier to acquire control of two or more carriers through ownership of their stock; or for a corporation which is not a carrier and which has control of one or more carriers to acquire control of another carrier through ownership of its stock. If, after application and hearing, the commission finds that such combination, subject to such terms and condi- tions and such modifications as it shall find to be just and reasonable, will be in harmony with and in further- ance of its plan for the consolidation of railway proper- ties and will promote the public interest, the commission may enter an order approving and authorizing such con- solidation, merger, purchase, lease, operating contract. or acquisition of control, upon the terms and conditions and with the modifications so found to be just and reasonable. Whenever a corporation not a carrier is authorized to acquire control of a carrier the bill provides that it shall, to the extent provided by the commission, be considered as a common carrier for the purposes of the paragraphs in the present law relating to reports, ac- counts, etc., of carriers, and as a carrier for the pur- pose of the paragraphs relating to issues of securities and assumptions of liability, including the penalties ap- plicable in the case of violations. It is then made unlawful, under the terms of para- graph 6 of the bill, for any person, without such ap- proval of the commission, to “accomplish or effectuate or to participate in accomplishing or effectuating, the control or management in a common interest of any two or more carriers, however such result is attained. whether directly or indirectly, by use of common di- rectors, officers, or stockholders, a holding or investment 1] re HES ap- ra- ap- ate the Any ed, di- ent Vol. 92, No. 18 company or companies, a voting trust or trusts, or in any other manner whatsoever,” or to continue to main- tain control or management accomplished or effected in violation of this paragraph. The words “control or management” are to be construed “‘to include the power to exercise control or management.” In place of the provisions of the original bill which would have empowered the commission to require dives- titute of stock ‘held by it to be interfering with the con- solidation plan, the bill, in paragraph 10, would author- ize the commission, upon complaint or upon its own initiative, to investigate and determine whether any per- son is violating the provisions of paragraph 6 and if it finds such violation to require such person by order “to take such action as may be necessary, in the opinion of the commission, to prevent continuance of such viola- tion,” and paragraph 11 provides: For the proper protection and in furtherance of the plan for the consolidation of railway properties established pursuant to paragraph (3) and the regulation of interstate commerce in accordance therewith, the commission is hereby authorized, upon complaint or upon its own initiative without complaint, but after notice and hearing, to investigate and determine whether the holding by any person of stock or other share capital of any carrier (unless acquired with the approval of the commission) has the effect (a) of subjecting such carrier to the control of another carrier or to common control with another carrier, and (b) of preventing or hindering the carrying out of any part of such plan or of impairing the independence, one of another, of the systems provided for in such plan. If the commission finds after such investigation that such holding has the effects de- scribed, it shall by order provide for restricting the exercise of the voting power of such person with respect to such stock or other share capital (by requiring the deposit thereof with a trustee, or by other appropriate means) to the extent necessary to prevent such holding from continuing to have such effects. Provision is also made for suspending any such pro- ceeding if the consolidation plan is reopened for changes with respect to the allocation of the properties involved. The term “person” is defined to include an individual, partnership, association, or corporation. Fitting the New Employee To His Job» VITAL element in the education of novices in the A operating department of a railroad is to so or- ganize the work that new men shall have the best possible instruction and care from older employees; so that, especially from the standpoint of safety of life and limb, the experienced employee shall understand ihat he is expected to be his brother’s keeper. This is the salient point in a recent address by Lewis K. Marr, assistant general superintendent of the Pennsylvania at New York City. Mr. Marr looks upon the results of the intensified activities of the superintendents of the Pennsylvania in the matter of safety regulations during the last few years as “surprising” and in some features “astonishing.” Young men coming to the service—and on the Penn- sylvania everybody must begin at the bottom—may be embraced in three classes: (1) those who respond to kindness; (2) those who are cunning enough to obey orders for their own benefit, and (3) the reckless ones, who have no respect for law and order and with whom discipline must be enforced by a strong hand. Mr. a * Abstracted from, an address delivered recently before the Greater New York Safety Congress. RAILWAY AGE 739 Marr does not use the word “reckless” but simply says that because of “an excess of animal spirits” these men constantly tend to do as they please—make their own rules of conduct—and very definite authority is neces- sary to keep them in line. This class is responsible both for most of the casualties and for the property losses. Whether they are simply impulsive, or are to be classed as sullen, in their conduct, the result is summed up in the one word—xnegligence. The very full records of the safety department, as kept on the Pennsylvania, are of. the first importance. Except for these statistical compilations, making pos- sible detailed comparisons between different territories, the safety specialist would still be groping in the dark and unable to measure his progress. Seniority is the starting point, and must be the datum line in waging the battle for the discipline necessary to establish safe practice. The company very definitely calls upon the experienced employee to be his “brother’s keeper.” The safety rules (these rules were noticed in the Railway Age of November 23, 1929) are the result of careful comparison of the behavior of men, and of the results of safety teaching, on the different divisions of the road; and each new employee, required to study the safety rules, has the benefit of the lessons of ex- perience learned throughout the extensive territory of the company’s lines. The introduction of this rule book proved a remarkable and surprising instrument of edu- cation. Impromptu noon-hour talks among the men de- veloped really profitable arguments, and employees near the boundary lines of divisions, chiding their fellows across the line with discreditable records, produced defi- nitely beneficial results. The trophy awarded each year by the president of the road is much sought after and the persistency and ingenuity with which employees seek to make their records such as to merit the trophy, seem often to produce magical results. : The progress made in safety during the seven years ending with 1930, as has been told in the records of the American Railway Association, is being followed up, with further improvement in the records. The Central Region of the Pennsylvania has shown notable records, for three years in succession, and the competitive spirit is now a material factor in the promotion of morale in the operating department. The Central Region in 1930 carried 23: million passengers with no fatal acci- dent. The good results recounted did not just happen, said Mr. Marr; they were the result of much toil and per- severance on the part of men who have had many years of contact with employees of all races, ages and creeds. ITS PROBABLE VALUE AS AN UNEMPLOYMENT RELIEF MEASURE has. recently produced a revival of interest in, and active sup- port for, the proposed railway across the Sahara desert, which has been under discussion in France for many years. Edouard de Warren, member of the Chamber of Deputies from Nancy, is the leader of the present movement, according to newspaper dispatches from Paris. He is supported by nearly half the members of the chamber, the Tardieu Ministry and the French Department of Public Works. With 35,000 persons employed, the minimum cost of building the line is estimated at more than $100,000,000. Three routes have been suggested: An easterly line from Biskra through Wargla to Air and Zinder: another starting from the most westerly existing railway ter- minal in French North Africa and reaching Timbuktu via the Igli and Tuat Oases, and a third from Igli to the Senegal. Eventual construction of a giant irrigation project, flooding the Sahara to form an inland sea, is also being considered in con- nection with the railway. Prefers “Transport” To “Transportation” Avsany, N. Y. To tHE Epitor: Now that a rigid economy is desirable in all lines of human activity, is it not a good time to drop the suffix “ation” from the word “transport”? It would save 35 per cent in number of letters, 50 per cent in number of syllables, and apparently the shorter word conveys just as much meaning as the longer. I understand that the word “transport” is used very generally in England. It seems to me that shortening our cumbersome word without reducing the meaning or doing too great violence to the derivation would be a distinct gain. J. B. Srouner, Assistant Engineer, N. Y. Public Service Commission. Rail Service Excellent, But Basic Fares Are Too High New York To THE EpITor: May I say “Amen” to the letters of C. W. Burchefield and R. E. Collons, appearing in your issues of April 2 and 16 respec- tively. Is it expecting too much to hope that the Railway Age will adopt some of the views expressed in the letters as part of its editorial policy? F. W. Tenney. Epitor’s Note—We believe that the strictures of Messrs. Burchefield and Collons against the railroads were much too severe, although we feel that both express points of view which are sufficiently common and sufficiently dangerous to merit the attention of railroad officers. This is why we published their letters. Much more has been done in increasing train speeds and reducing fares than Mr. Collons will admit. He has just been answered, at least in part, by the Eastern roads in their speeding up of trains, abolishing extra fares except in one or two instances, and in offering round-trip week-end tickets at low rates. Comments on others of his points by a high passen- ger traffic officer (who, incidentally, agrees with him that the basic rate of fare should be reduced) follow: “My first impression after reading Mr. Collon’s letter was: ‘I wonder where he has been during the last several years’. “Take his criticism on the dining car service wherein he sug- gests the use of a lunch counter. He, of course, overlooks the fact that a railroad, unlike a hotel or restaurant, has all classes of people to serve on one unit; the public automatically makes the separation as between grades of hotels or restaurants, the restaurant finally getting down to the point of serving a certain type of people that want a certain type of food, which is not so on the railroad. “However, his thought was realized many years ago. A check of certain trains showed that only 25 per cent of the passengers aboard the train during the meal hour were eating, which resulted in the establishment of the first coach service from the dining car. Of course, in passing years this has been much elaborated on and at the present time on any of our trains carrying a dining car, coach passengers are served sandwiches, coffee, etc., in their seats in the coach at a price in keeping with the average soda fountain prices. “The fact that the public should be given the opportunity of procuring a satisfactory meal at a nominal price is what caused us to establish table d’hote breakfasts and table d’hote luncheon and dinner, the breakfast combinations running from 50 cents to $1. You are familiar with our 85 cent plate lunch which is in fact a very substantial meal, and also our more elaborate $1.25 dinner. So, as near as I can see, all of the things he says Communications and Books... 740 should be done in that connection are and have been in effect on our road for several years. “Let us consider his criticism of the coaches. We have no such equipment in our service as he refers to. Practically all of our cars, at least all that have been purchased since the war, are all-steel cars, with six-wheel trucks of the same construction as the Pullman car and we now have in practically all of our service a bucket-type cushioned individual seat. “Our red caps at stations still accept tips, which is not out of line with what is done at other places where red cap service is maintained; in fact we find tipping of employees is done just as thoroughly in the cheap restaurants, around the cheap motor coach stations and most everywhere that I know of, except pos- sibly in the case of train secretaries who are definitely pro- hibited from accepting a tip. In other situations where we do not permit tipping, we have found some passengers who have resented the matter and when porters have intimated a reluct- ance in taking a fee the passenger has thrown the money on the floor. Probably Mr. Collons’ comments are based on theo- retical ideas rather than a practical knowledge of how deep- rooted the fee factor is imbedded in the American hotels and public life. “I think we always get some good from or agree in some re- spects with most every article of this kind and in this case I can thoroughly agree with the statement regarding the trans- portation charge being too high. I do not agree with the meas- ure of fare, namely two cents, and, of course, his figure is only a guess, but his idea is correct in my judgment which is that— “*There is a general public resistance to rail travel due to the present charges, and such of the public that have gone to the buses where the journey covers any distance, have done so en- tirely because of the question of price and not of quality, one of the factors to which he refers.’” New Book The Clinchfield Railroad, by William Way, Jr.. 297 pages, 9% in. by 6 in. Illustrated. Bound in cloth. Published by the University of North Carolina Press. Price $5. While the Clinchfield as it is known today began to emerge only at the turn of the century, its history, like that of other railroads in the same general territory, commences naturally with an account of early attempts of Charleston, S. C., business men to develop a through railway route to the Ohio river and thereby revive the declining commerce at that once-thriving port of the old South. The author of this book has therefore quite appropriately chosen, in opening chapters, to sketch the early problems of southern railway development and especially the several attempts to connect Charleston with the West. These latter he finds might have succeeded in 1850 by the completion of the Louisville, Cincinnati & Charleston had Charleston “set upon one definite project instead of trying to build a network of railroads radiating out of that city.” The hoped for achievement was, however, destined to be delayed until “the currents of traffic have been too well established through trunk line territory for the Clinchfield or the Southern to make any great inroads on foreign trade traffic.” As the author turns to consider the Clinchfield his work, in- cluding the appendices, becomes a handbook of interestingly- presented statistical information on the road’s corporate begin- nings, its construction, physical characteristics and rolling stock and its traffic and revenues. The outline of its career as the Carolina, Clinchfield & Ohio up to the time of its being leased to the Atlantic Coast Line and the Louisville & Nashville 1s followed by an appraisal of its future prospects under this lease for “The Clinchfield was built for permanence. Its rails will not be taken up nor its properties abandoned. It can handle an enormous tonnage across the mountains at a relatively small operating cost.... Its future as an important transmontane link between the south Atlantic and the middle west is certain. lo E- —all = Pal « ee ee | by ge er lly nd ng re he lly st. he ad he ed ed rn in- ly- in- ck the sed is ase vill an all ine Odds and Ends... Frisco “Meteor” Has a Birthday Thirty years is the age of the Frisco “Meteor.” On March 17, it celebrated its birthday quietly by slipping out of the union station at St. Louis, Mo., at 6:58 p.m. and picking up speed on its 10,958th trip to Oklahoma City, Okla. The “Meteor” is said to be the longest train operated from St. Louis by any of the 17 roads which are tenants of the union station. The Lackawanna Goes Collegiate When the Delaware, Lackawanna & Western ran its “Red and White Special” from Ithaca, N. Y., to New York, to accommodate students of Cornell University who were go- ing home for their spring vacation, they provided a baggage car fitted out for dancing. If this idea takes hold generally, we presume that the “full crew” of the future will include two saxophone players and a trap drummer. Titles With Variations H. R. ‘Clarke, general inspector of permanent way of the Burlington, tells this story on himself. Several years ago when he was in Detroit, Mich., on business, he received a Western Union message. To his surprise and to the consid- erable interest of Mrs. Clarke, he found that it was ad- dressed to “General Inspector of Permanent Waves.” We know just how he feels. About half of the telegrams re- ceived by members of our staff come addressed in care of “Railway Agent.” Found—A Long-Lost Relative There is no limit to the resource of the lost and found department of the Pullman Company. Pullman officers and employees, justifiably proud of the company’s reputation for finding articles lost in cars, are now a little more than usually chesty over their most recent coup. They have unearthed a long-lost relative for a patron. It seems that a Seattle, Wash., man reported the loss of a scarf while on a short railway journey, but he finally concluded that he had lost it after leav- ing the train when a thorough investigation failed to recover it. He was so impressed, however, by the care with which the search for the scarf had been conducted that he asked District Superintendent L. R. Armstrong of San Francisco for Pullman assistance in locating his second cousin, of whom all trace had been lost for some 10 years. The only clew was that the miss- ing man had been in the dining car service of some railroad, and that his father had been in charge of the dining room of the Washington Union Staticn. With this information, District Superintendent C. T. Stewart at Washington located the cousin, who, it turned out, is in charge of a dining room at an electrical school in Washington. Some Less-Known Railway Dynasties For a combined total of 175 years, the families of Scruggs, Alexander and Sherwood have held the destinies of the Louis- ville & Nashville agencies at Flemingsburg Junction, Ky., Cowan and Ewing. All these points are situated within a five- mile stretch of track on the Maysville branch. Up to the time of the retirement of John W. Scruggs on February 1, the agency at Flemingsburg Junction had been handled since its opening in the spring of 1870 by three members of the Scruggs family. | A Johnson opened the agency in 1870 and held it until 1872, When it was passed to his son-in-law, S. P. Scruggs, who in turn held it until his death in 1918. At that time John W. Scruggs, the son of S. P. Scruggs and the grandson of J. T. Johnson, took over the station and held it until his recent re- tirement. The agency at Ewing, four miles south of Flemings- burg Junction, was opened in 1871 and has been in charge of its present agent, W. B. Sherwood, since January 1, 1880. 741 At Cowan, one mile south of Ewing, P. H. Alexander has held the agency since 1920, when it was bequeathed to him by his father, Theodore Alexander, who held it for 49 years, begin- ning with its opening in 1871. Phantom Lights The railroad ghost stories, which we recently asked our read- ers to contribute, are beginning to come in. They seem to indicate that ghost-walking on the railroads is not confined to two days a month. Here is a story involving the Atlantic Coast Line, for which we are grateful to Robert Scott, editor of the Atlantic Coast Line News. The locale of the story is a point near the little town of Maco, N. C., about 14 miles west of Wilmington on the Atlantic Coast Line. “During the war of 1861-1865, this section of the road fell into bad repair and it was necessary to rebuild a portion of it in 1867. It was the period of the old link-and-pin couplers and hand brakes. On one occasion, a freight train parted while coming down a hill, approaching what is known as ‘Hood's Creek.’ Just as the last car of the front part of the train cleared the trestle, the rear part ran into it, and in this accident the conductor was fatally injured. He was not buried at this spot, although there is an old cemetery nearby. It is at or near this point that a mysterious light appeared for several years thereafter, as related by R. L. Murrell of Columbia, S. C., a hostler in the employ of the Atlantic Coast Line. At that time, Mr. Murrell’s father operated a wood supply station at both Malmo and Maco. “The light above mentioned appeared from time to time, and then in 1873 a second light appeared. They were about as bright as a modern 25-cp. electric light bulb. One light would rise from each side of the embankment, and they would pass each other going to opposite sides of the track. They would move back and forth along the track, but never farther than the trestle where the accident occurred, nor farther east than the swamp. It is said that these lights seldom have been seen since the earthquake of 1886. “Curiosity over these lights became so great, we are in- formed, that the United States Government sent an investi- gator from Washington, with suitable equipment, to undertake to determine their source. It appears that he was never able to get close enough to the lights to form a definite opinion, although it is stated that he did report that they were so bright that he did not believe they were ‘jack-o-lanterns,’ or ‘ignis fatuus.’ “Several of the boys of the neighborhood set about to learn something of the lights. They would form themselves into a long line and try to catch up with the glow as it appeared, but were never able to get within close range. One peculiarity was that the lights appeared to each observer to be in a different position. “Also, it was reported that, while the engineers could not dis- cern the lights on approaching with headlights burning, they could see them from the wood racks when stopping to refuel. They could be seen on a moonlight as well as a dark night. Sometimes they would vanish for a month at a time, then would reappear for several nights in succession. “A very old negro man, now living near Maco, has stated that, when he was a boy, working with the section force be- tween these two points, and living in a shanty near the track, he had known trains to stop for this light, the engineer appearing to be under the impression that he was meeting a train. He also recalls that on one occasion the light appeared so suddenly in front of a freight train that the engineer slowed down his engine and he and the fireman jumped, the latter suffering an injury which necessitated another member of the train crew firing his engine the rest of the way to the terminal. This old darky also has stated that he has known the light to proceed down the track, swaying from side to side, and to go through the waiting room and warehouse at the old Farmer’s siding (now known as Maco) and that the illumination was such that, by its light, one could pick up a pin from the floor.” NN _ Faster N. Y.-Chicago Service in Effect P. R. R. and N. Y. C. inaugurate 18-hour schedules—Other roads accelerate Appropriate ceremonies at New York and Chicago on April 24 marked the de- partures of the New York Central's Twentieth Century Limited and the Pennsylvania’s Broadway Limited for their inaugural runs, westbound and eastbound, on the new 18-hour schedules which became effective on that day. The acceleration of the Broadway and the Century, as announced in the Railway Age of April 9, has been accompanied by the speeding of most other New York-Chicago trains and also by the elim- ination of all extra fares on a time basis between New York and Chicago and New York and St. Louis; only the Century and the Broadway, with their unrefundable charge of $10, now carry extra fares. The majority of other New York- Chicago trains of the Pennsylvania and the New York Central have been placed on a 21-hour schedule while the other roads have materially reduced the run- ning times of several of their through trains and in some cases schedules have been rearranged. The Delaware, Lackawanna & West- ern has cut 55 minutes from the running time of that section of its Chicago Limited which is operated via the Nickel Plate and has shortened by 1 hr. 10 min. the schedule of that section operated via the Wabash. The Lackawanna’s Western Special, operated via the Nickel Plate, is now scheduled to ar- rive in Chicago 55 minutes earlier than formerly and its eastbound Chicago and New York Express will leave Chicago 1 hr. 45 min. later and arrive in New York at the same time as before. The Erie has cut one hour from the schedule of its Chicago Express and the Lehigh Valley, among other changes, has re- duced by four hours the running time of its New Yorker, operated via the Grand Trunk, between Chicago and New York. Existing differentials in connection with New York-Chicago passenger rates were not changed and thus the Erie and the Lackawanna, terminating in New Jersey, retain their former differential of $2 under the standard New York-Chi- cago rate. It is understood that an un- successful attempt was made to have the standard-fare lines agree to a wider differential. While the Century and the Broadway have been 20-hour trains for the past two decades the 18-hour time is not new on the New York-Chicago routes of the New York Central and the Pennsyl- vania. Between 1905 and 1912 the Cen- tury and the old Pennsylvania Limited, later re-christened the Broadway Lim- ited, operated on 18-hour schedules. Senate Committee To Vote on Bus Bill Following conferences with Commis- sioners Brainerd and Eastman of the In- terstate Commerce Commission on the Couzens bill to provide a plan of federal regulation of interstate bus transporta- tion and a permit system for trucks doing an interstate business, the Senate Com- mittee on interstate commerce on April 22 agreed to meet again on May 3 to consider and finally vote on the Dill, which is being redrafted. The commis- sion was to submit a written report on certain features of the bill. “Slippances” “Slippances” is the title of Circular No. 323 which has been issued by the Com- mittee on Education, Safety Section, A. R. A. for the attention of railroad safety committees in the month of May. The circular is made up of cautions concern- ing the details of watching one’s step in various railroad occupations, mostly get- ting on and off cars. The most pronounced injunction is that advising the person who walks across tracks never to put his foot on the rail; always step clear over. A dozen pictures are given to show various right and wrong ways of stepping on roofs, ladders, tender steps and other places. The committee offers this chapter of advice as equally important for officers, employees, patrons, and friends.” Bill to Deprive 1.C.C. of Authority Over Parcel Post Rates The House committee on postoffices and post roads on April 21 reported favor- ably to the ‘House the bill which had been passed by the Senate to repeal that part of the postal act which requires the consent of the Interstate Commerce Commission for changes in parcel post rates proposed by the Postmaster General. The purpose of the bill is to head off a revision of par- cel post rates, including increases in the lower rates, to which the commission has given its consent and which the depart- ment had announced would become effec- tive on October 1. The House committee said that it had concluded “that it is more fitting and proper that Congress retain the rate-making privilege and not dele- gate such power to any one else respect- ing one class of mail only.” 742 R. F.C. Railroad Loans Explained by Dawes Advances aggregating $77,515,549 made up to April 19 to 20 railway companies From February 2 to April 19 the Re- construction Finance Corporation had made loans to 20 railroads, aggregating $77,515,549, Charles G. Dawes, president of the corporation, testified before the House ways and means committee on April 21, in a statement in which he ex- plained some of the operations of the cor- poration in answer to many attacks on its policies which had been made in various congressional speeches. He was invited to testify in connection with the soldier bonus bill because so many of the advo- cates of the bonus had based arguments on their contention that the government was proposing to loan “two billion dollars to railroads, banks and other large finan- cial institutions.” In addition to pointing out that most of the bank loans have been made to smaller banks, that the corporation is taking ade- quate security for its loans, and that it expects to operate without loss to the gov- ernment, General Dawes said that the ob- ject was not primarily the relief of the corporations themselves as such, “but of millions of the people who have entrusted these particular classes of corporations with their funds and who suffer if the power of these corporations to function normally is unduly impaired. “The reason why Congress authorized loans by the Reconstruction Finance Cor- poration to railroads,” he said, “as dis- closed by the discussions in Congress, was not only for the protection of railroad corporations as the backbone of our transportation system and as employers of hundreds of thousands of men, but for the protection as well of the trustee in- stitutions of this country, including in- surance companies and savings banks, owning the securities of railroads, in which imstitutions and their normal func- tioning the great public has a direct in- terest.” Referring to the much-discussed loan to the ‘Missouri Pacific, of which $5,850,000 was to pay half of the company’s bank loans, he said that this payment of one- half operated to free collateral worth, under normal conditions, $15,968,700, which it could then offer the Finance Cor- poration as security; and that the total collateral pledged. for the loan had a mar- ket value, even at the lowest quotations thus far recorded, approximately the amount of the loan and normally worth (Continued on page 745) “ and tak Th tior 0 and of pet: stec e- us | to ank ne- rth, 100, ‘or- tal ar- ons the rth Vol. 92, No. 18 Conversation No Cure for Motor Competition Thornton tells Canadian committee railways plan to substitute action for discussion “Competition ought at least to be fair and when it is fair then we have got to take our chances,” declared Sir Henry Thornton, president of the Canadian Na- tional last week at Ottawa before the House Committee on National Railways and Shipping, during a lengthy discussion of the extent to which bus and truck com- petition was reducing the revenues of the steam railways. “We have got to the point now,” said Sir Henry, with emphasis, “that the day for talking is over. We must get up and do something. For the last three or four years we have been talking and investigat- ing, and, quite frankly, the time has come to stop talking and go to work.” It was made plain to the committee by Sir Henry that he would not condemn bus and truck transportation. They were necessary links in the transportation sys- tem, especially on short hauls. Bus and trucks could operate profitably on the short haul, while it was the long haul that was profitable for the steam roads. “A shipment of freight,” Sir Henry ex- plained, “does not commence ito earn money for the carrier until it is on the road on its way to destination. The yard expense and freight-house expense is merely preparatory to putting that pack- age of ireight in the position of getting on its way and earning some money for the railway. The longer the movement the less the proportion of terminal expense to the total rate. That is the reason why long haul business even at lower rates, is more profitable to the railways than short haul business, There is a certain amount of this short haul business that has gone good, but we must take steps, and take them soon, to prevent further encroach- ment upon the revenues of the company by the luring to the highways of this long haul traffic, which is our most remunera- tive traffic.” The discussion was provoked by a question from Brig.-General John S. Ste- wart (Conservative Lethbridge), and Sir Henry, in replying to Gen. Stewart’s query, made it plain that he was speaking not only for the Canadian National, but also for the Canadian Pacific. “The two railways,” he said, “are work- ing in accord with a view to retaining as much traffic to the rails as possible. We have tried with success the experiment of _ moving on local passenger trains less than car-lot freight. We have adjusted the time of certain freight trains in order to give quicker delivery and meet more ef- fectively the highway competition. We have under consideration with the Cana- dian Pacific still more far-reaching and important methods of dealing with the Situation, _ We have agreed upon the representa- tions which ought to be made to the pro- vincial governments and the federal gov- ‘rnment. We have evolved a plan for RAILWAY AGE dealing with the situation. We must necessarily avoid as far as possible capital expenditure, but we have developed what we think is a reasonable and effective so- lution of the problem, which has been presented to the Canadian Pacific and is now under discussion between operating officers of the two railways. I have no doubt that within the next week or two something will be decided upon.” Reduction in Salaries of Commissioners Proposed A permanent reduction in the salaries of commissioners of the Interstate Com- merce Commission and the United States Board of Mediation from $12,000 to $10,- 000 a year, effective July 1, 1933, is pro- posed in the “omnibus economy” bill re- ported to the House on April 25 by the special House economy committee. A re- duction of 11 per cent in federal govern- ment salaries generally, with an exemp- tion of $1,000 a year, was proposed in the bill. 1.C.C. Investigation of Intrastate Rates The Interstate Commerce Commission has announced its intention of conduct- ing its investigation of the failure or re- fusal of the rate regulating authorities of eleven states to authorize rate in- creases corresponding to the temporary emergency increase which has been au- thorized for interstate traffic on a state- by-state basis. The commission had orig- inally announced a general proceeding of investigation which was assigned for hearing in each of the eleven states but several of the state commissions filed ob- jections to this blanket procedure and asked that the situation in their states be considered separately. “Things Are Getting Better in This Country” From a statement made by Gen- eral Charles G. Dawes, president of the Reconstruction Finance Corporation, before the Ways and Means committee of the national House of Representatives at Wash- ington, D. C., on April 21. “Down here in the Reconstruc- tion Finance Corporation we are in a position to know that things are getting better in this country— in a damn sight better position to know what is going on than are those fellows in that security pea- nut stand in Wall Street. “Bank failures are falling off. The banks are beginning to make loans again. It makes no difference what Wall Street thinks down there where that peanut gambling is going on. “You can take it from me we are approaching prosperity. The mass attitude of the people has changed from pessimism to optim- ism, but, of course, it will take time to realize the full results. Business is a ponderous machine and takes time to get in motion.” 743 Depression No Time To Build Waterways Security head urges railways to speed highway co-ordination— Condemns subsidies Even without federal regulation of motor carriers, the railroads should push forward their co-ordination programs as far as possible in order to convince the public that they are seriously trying to help themselves, Milton W. Harrison, president of the National Security Own- ers Association, declared in an address to the Associated Traffic Clubs of America in St. Paul, Minn., on April 27. Such action, he confirmed, is being taken in many parts of the country at the present time, and indications are that it will be carried considerable fur- ther in the near future. Motor carriers of persons and property should be sub- jected to reasonable regulation and the railroads permitted to acquire existing motor lines or establish new ones and coordinate them with their rail lines, he asserted. “Consolidations should be hastened as much as possible,” he said, “for they offer the best possible method for ef- fecting substantial savings in operating costs and for preserving the railroads as the foundation of a completely coordinated national transportation service, adequate for all needs. Consolidations would in large measure eliminate the weak rail- road problem, furnish the best available assurance of the return of independent railroad credit with any reasonable re- covery of business, and would simplify regulation and produce healthy, vigorous competition.” Referring to inland waterway develop- ment, Mr. Harrison urged that further development should be stopped until the arrival of more prosperous times. “I can see no point in spending additional millions of public funds for transporta- tion facilities when we do not now know what to do with the facilities we already have,” he said. ‘Waterway de- velopment is not an emergency matter; it can well wait until the taxpayers are in better position to shoulder the bur- den. Additional waterways at this time will not only serve to withdraw further funds from sorely pressed taxpayers, but they will also add further to the prob- lem of an already non-compensatory railroad rate structure. They would not create traffic of their own, except the mud and silt from the river bottoms, which surely is not productive traffic. The public does not need them, so why build them during a depression like the present one?’ Further, he said, the federal government very likely will need every dollar of its credit for much more worthy causes than simply to add to the surplus of transportation facilities. He suggested that a full and complete investigation should be made into the operations of the Federal Barge Lines on the Mississippi and other rivers “with a view to determining whether those lines (Continued on page 745) 744 Railways Center of Interest at Ottawa Special session of Parliament in fall to discuss transport probe report Railway matters are receiving first po- sition in debate in Parliament at Ottawa. It is not expected that the report of the Royal Commission on Transport will be submitted to the government until after the end of the present session which is likely to come before the middle of May. There will, however, be a fall session of Parliament and at that session the two big subjects, in fact the only subjects, will be the report of the Commission and the results of the Imperial Economic Con- ference which meets on July 21 in Ot- tawa. The (Canadian people are becoming more articulate on the railway question, chiefly because of the present depression which provokes them to criticize every- thing public. The Canadian National de- ficit, which is a constantly increasing drain on the public purse, is a subject of wide comment, and the disclosure before the House Committee on National Railways of the personal expenditures and salaries of the road’s officers has aroused much criticism. While such salaries and ex- pense accounts do not form any large per- centage of operating expenses, yet per- sonal matters loom large in the public eye in any such discussion, especially when viewed through a political atmosphere. All this leads up to the unusual atten- tion paid in the House this session at Ot- tawa when anyone makes a speech either critical of or in praise of the national railways. Last week a Quebec Conserva- tive, John T, Hackett, who last year cre- ated a sensation by urging the merging of the two roads, spoke in the House and urged the pooling of the operations and revenues of the two roads until prosperity returned. Then a Manitoba Conservative, J. L. Bowman, spoke strongly in defense of the Canadian National. Part of what the two said follows: Mr. Hackett :—“My suggestion is that the operation of these two roads should be pooled for the period which separates us from the day when some better ar- rangements can be made or when some re- vival in business takes place. This may seem to be a very unusual statement, to some it may seem to be an impracticable suggestion, but in these days when we are doing so much that is unusual, I do not hesitate to advance it. According to its annual report for 1931, the Canadian Pa- cific had working expenses of $116,000,- 000, the annual report of the Canadian National including eastern lines shows that its working expenses amounted to $200,000,000. If these two systems would agree to a limitation for a year or two of the wasteful competition which is gnaw- ing at their vitals, if thereby they could cut down their cost of operation by twenty-five per cent, they would offset in entirety the $19,000,000 deficit between net earnings and ordinary charges of the Ca- nadian Pacific and the $60,000,000 deficit of the Canadian National. “Those of us who live in Montreal RAILWAY AGE know each night at seven o'clock two per- fectly appointed trains, equally empty, leave for Ottawa. We know trains from Montreal go to Toronto, trains from To- ronto come to Ottawa and trains cross the continent in rivalry with one another, competing for a business which does not exist. “I know very well the easiest course is to let matters continue as they are, but the cost of railway transport must be paid either by the classes served or by the tax- payer of the time or, with compound in- terest by posterity.” Mr. Bowman:—“I will admit that ex- penditures have been made which should not have been made. What great corpora- tion during the boom years of 1927 and 1928 did not spend immense sums of money that should not have been spent? Nevertheless it must be borne in mind that during this period there has been built up a tremendously efficient transpor- tation machine showing a vast improve- ment in the efficiency of labor, in mechan- ical power, in rolling stock and in every other department of railroading. “In times of depression like the present one is apt to stress, to the exclusion of everything else, the monetary loss and the tremendous sums of money from time to time put into this great enterprise. May I take the liberty of reminding hon. mem- bers of some of the obstacles with which the management have been faced. First of all, there is motor vehicle competition. The first year there were any registra- tions of motor vehicles was in 1907 when the number was 2,130; in 1930 there were 1,239,888—or in the last fifteen years be- tween 1915 and 1930 an increase of 1,289 per cent. The first year that trucks were segregated in the registrations was in 1922, when 37,610 trucks were registered; in 1930 there were 165,464. In that same year the registrations of buses were 2,098. Commensurate with this increase in the number of motor vehicles doing business in Canada, there has been an increase in highway mileage, until in 1930 we had 394,372 miles of highway. The motor truck is carrying the freight upon which the railways charge a high rate and leav- ing to the railways the bulky and heavy freight such as grain, lumber and similar products. If this competition continues it simply means the whole rate structure of Canada will have to be changed. “It must not be forgotten that the rail- ways operate upon their private right of way, constructed at their own cost, while motor transportation service is carried on on the public highway by corporations and persons operating for private gain. These differences must be adjusted in fairness both to the railways and to the motor ve- hicles. I am satisfied that when that ad- justment does come it will mean increased revenues for the railways.” G. E. Begins Delivery of P. R. R. Electric Locomotives The first one of the new high-speed passenger electric locomotives, to be sup- plied by the General Electric Company, for the Pennsylvania Railroad main line electrification was shipped to the railroad at Wilmington, Del., on April 25, from the Erie works of the General Electric Com- pany. April 30, 1932 “Compartment Cars” for Freight on C. & N. W. New type of service for l.c.l. to be operated out of Chicago beginning May 6 A new type of service for l.c.l. freight will be offered by the Chicago & North Western, beginning May 6, between Chicago and Waukegan, III., Kenosha, Wis., Racine and Milwaukee. Automo- bile box cars have been fitted with in- terior partitions to provide four freight compartments, two in each end, and the charges for the _ transportation of freight in these compartments will be based not on weight but on a flat rate of $15 per compartment. Furthermore, there are no packing requirements of any kind, the North Western assuming no responsibility for loss, damage or injury to the property transported due to insufficient packing or improper load- ing in the compartment. The compart- ment rate is based upon the shippers signing a release to $100 valuation for the freight in each compartment. When the release is not signed, the rate is to be $16.50 per compartment. Ordinarily, the cars will be operated only from team-track to team-track, and the shipper and consignee will load and unload the freight at these team-tracks. There is provision, however, that if three or four compartments are loaded from one consignor to one consignee in one day on one bill of lading, the North Western will place the compartment car at any industry located on an in- dustrial or private side track served by the road, for loading or unloading, with- out additional charge. The compart- ments will be locked or sealed by the shipper, the railway sealing only the outside doors of the cars, The North Western has reconstructed 10 cars for this service, and more will be added if the service is proved to be valuable. Two partitions extend across the width of the cars, these being situ- ated at the sides of the door openings. Additional partitions running lengthwise of the cars bisect the spaces enclosed by the crosswise partitions. Access to the compartments is had by means of doors, 7 ft. high and 4 ft. 1-11/16 in. wide, which form a part of the crosswise partitions. The compartments them- selves are 17 ft. 8 in. long, 4 ft. 4-3/16 in. wide, and 10 ft. high. Rivers and Harbors Bills Deferred Chairman Mansfield of the House com- mittee on rivers and harbors announced on April 26 that the committee will not report at this session either on omnibus rivers and harbors bill or bills proposing minor improvements in rivers and har- bors. He said this had been decided upon in the interest of economy in federal ex- penditures but that all necessary hearings would be held on projects recommended by the Army engineers and that bills could be filed until next session. A bill proposing a $500,000,000 bond issue tor river and harbor improvements, however, is still pending before the Senate com- merce committee. po: the TO¢ Vol. 92, No. 18 RF. C. Railroad Loans Ex- plained by Dawes (Continued from page 742) much more than the loan. “We are loan- ing on a liquidated value,” he added, pointing out that a careful analysis had been made of the company’s physical val- vation, financial condition, and earning power over a period of years, and that “it was made upon what is regarded as a safe and reasonable business basis—not primarily for the benefit of the railroad company or the banks as such, but for the benefit of thousands of the investors in the bonds and securities of the railroad’ and in the general public interest.” In reply to questions General Dawes said that loans to railroads were being made at 6 per cent interest and to banks at 5% per cent. Asked whether the cor- poration would make a loan to a railroad paying dividends, a question which has been much discussed in connection with the application made by the Pennsylvania early in March for a loan of $55,000,000 to complete its electrification work, he said that no loans had been made to rail- roads paying dividends and he assumed that that would be the policy; but each case is considered on its individual merits and it had been practically impossible so far to lay down policies. He said that ordinarily it would not approve a loan to pay dividends but that some cases might be different from others and that some railroads wanted money to make improve- ments and employ labor. As of approximately the date as of which he was speaking applications for loans had been made by 62 railroads for approximately $360,000,000, and the com- mission had approved the. applications of 24 for a total of $102,000,000. Ogden L. Mills, Secretary of the Treas- ury, also discussed the matter of railroad loans in an address at the annual lunch- eon of the Associated Press at New York on April 25. He said, in part: “Some gentlemen apparently visualize the. rail- roads of the United States as the private property of a limited number of stock- holders. Now, I have the greatest sym- pathy for the stockholder, considering the prices at which equities are selling today. But what are the railroads? They are the backbone of the transportation sys- tem of the country. They are the largest employers of labor. They are one of the iargest purchasers of raw and fab- ricated materials of all kinds. Their un- derlying securities to the extent of many billions of dollars are held by the great fiduciary institutions, such as insurance companies and savings banks, which means that indirectly there is invested in them the savings of the American people. To- day there are something like 68 million insurance policies outstanding. In the face of these facts can any one question the national necessity of maintaining the credit of the railroads, not only in the interest of our commerce and industry, but for the sake of the thousands of men that they employ and the millions ot in- dividuals whose savings are invested in that most sacred form of family invest- ment, the life insurance policy? When a railroad goes into receivership, men RAILWAY AGE are discharged, capital improvements are suspended, purchases fall off, the value of its underlying securities is severely depreciated, and its service to the public is curtailed. These are the fundamental reasons why railroads were included in intended to national reconstruction legislation strengthen and protect our economy.” Since it has become apparent that the funds to be available to the Railroad Credit Corporation from the temporary emergency increase in freight rates will be less than the requirements of the rail- roads for loans to meet fixed interest obligations, the credit corporation has found it necessary in passing upon ap- plications for loans to draw a line of demarcation between those that can of- fer security adequate to meet the re- quirements of the commission and the Reconstruction Finance Corporation and those that cannot do so; and to suggest to certain roads that they seek loans from the government corporation with- out any commitment that they be taken up later by the railroad corporation. At the beginning of operations by the two corporations a plan was adopted by which loans would be made by the government corporation as advances against orders authorized by the railroad corpora- tion to cover interest requirements and several loans have been made with the un- derstanding that the funds are to be provided by the latter as soon as they become available to it. The docket of the commission relating to the Lehigh Valley application for a loan of $1,500,000 to meet interest due May 1, which was duplicated by a similar application to the railroad corporation, contains a copy of a letter addressed by E. G. Buckland, president of the credit corporation, to the railroad, stating that the corporation did not have funds avail- able for making a loan in sufficient time to meet the requirements of that carrier having due regard to the requirements and needs of other carriers and to other loans already authorized. He therefore referred to the necessity for differentiat- ing between the roads able to comply with the rather strict requirements of the government as to collateral and those that cannot meet such requirements, and suggested that the Lehigh Valley ask for a loan from the government without any commitment as to its being taken up by the railroad corporation since “the pres- ent and past credit standing of the Lehigh Valley Railroad Company is such as un- doubtedly to enable it to secure the loan from the Reconstruction Finance Corpo- ration.” The plan under which the corporation is operating provides that it shall take as security “the best available collateral” and discretion is allowed to the corporation, in any case of important public interest, to relax the requirements. On the other hand, although it has indicated a policy of being less strict as to the security re- quirement than the government, the rail- road corporation receives a lower rate of interest on its loans than does the gov- ernment, which charges 6 per cent while the rate paid the railroad corporation is the current rediscount rate of the New York Federal Reserve Bank. 745 Depression No Time To Build Waterways (Continued from page 743) are able to pay their own way.” If they are, he said, they should be re- leased by the government to private ownership and operation, and the rail- roads ought to be permitted, along with other persons, to bid for them. If they are not able to pay their own way, he added, they should be scrapped. ‘‘Gov- ernment ownership in one form is no better than in another, and I cannot see why a minority of shippers favors gov- ernment ownership of barges when they oppose government ownership of rail- roads, flour mills, coal mines, or any other industry. The only reason, in my opinion, is that they are enjoying low transportation rates which are possible only because the taxpaying public is footing the bill.” Mr. Harrison said that so long as the railroads continue to be an essential transportation agency to the public they must and will be operated, and should the time come when the railroads are no longer able to attract private capital, then the government must step in and operate them. He added, however, that he did not believe the people of the country want government ownership of railroads. “If shippers prefer private ownership to government ownership,” he continued, “they should support and encourage consolidation and coordina- tion now, in order that the railroads may remain under private ownership.” The railroads are the nervous system of this country, Mr. Harrison said, if they fail industry will suffer, but if they regain their equilibrium and are enabled to fight through to prosperity, industry will ride through with them. Automatic Train Control Too Costly The Union Pacific has petitioned the Interstate Commerce Commission for a modification of its automatic train control orders of 1922 and 1924 to permit the operation on its line between North Platte, Neb., and Cheyenne, Wyo., of lo- comotives equipped with automatic cab signals in lieu of the train control or train stop devices required by the orders. The Union Pacific had installed the continuous inductive system of the Union Switch & Signal Company and, according to the pe- tition, the cost of installation was $755,- 724 and the cost of maintenance and op- eration for five years was $514,605. It was stated that these expenditures were all out of proportion to the benefits de- rived and that the use of cab signals would reduce the cost. Accounting For Contributions to Charity The Interstate Commerce Commission has ordered, on its own motion, a pro- ceeding of investigation as to the pro- priety of the inclusion, in operating ex- penses, of a contribution of $75,000 by the New York Telephone Company to the Emergency Unemployment Relief Fund of New York City. In assigning the matter for hearing at Washington on 746 May 19 before Examiner Hansen ‘the commission issued a notice saying that the decision in this case promises to be of so much importance as a precedent with re- spect to the accounting for donations made for charitable or like purposes that the attention of all carriers subject to the Interstate Commerce Act and of the state commissions is directed to the proceeding, in the event that they may wish to inter- vene and be heard. Mechanical Division Scholarship Available A scholarship at Stevens Institute of Technology will be available to sons of members of the Mechanical Division, American Railway Association, when the division scholarship at that institution be- comes vacant in September, 1932. The scholarship embraces a course which leads to the degree of mechanical engineer and which includes instruction in electrical, civil and other branches of engineering. Applications for the scholarship will be received until August 15, 1932. The scholarship will be awarded by the presi- dent of the college on the recommenda- tion of the association. Should there be no applications from the son of either a living or deceased member of the me- chanical division, the scholarship will then be available to the son of any railroad employee. Cambridge Industrialists Favor Fair Return Clause The Cambridge (Mass.) Industrial As- sociation has passed resolutions calling on Congress to repeal recapture retroactively but not to eliminate provision for fair re- turn to the railways in a “mandatory manner which the Interstate Commerce Commission will understand and cannot evade.” The Association likewise ex- pressed itself in favor of interstate bus regulation and in granting permission to the railways to operate upon the inland waterways and through the Panama canal. J. M. Motherwell, vice-president and general manager of the Ashton Valve Company, chairman of the legislative committee of the association, transmitted the resolutions to the Massachusetts sen- ators and congressmen with gopies to Chairmen Couzens and Rayburn of the Senate and House interstate commerce committees. N. Y. Legislative Leader: Assails Highway Contractors State Senator George R. Fearon of Syracuse, N. Y., Republican legislative leader and president pro tem of the New York Senate, assailed highway coutrac- tors in a recent statement opposing an extra session of the New York legisla- ture which is being advocated for the purpose of increasing highway appro- priations in the interests of unemploy- ment relief. “Tt is a sad commentary on human nature” Senator Fearon declared “that the road contractors, who probably have benefited more than any class of business men from state activities of recent years, should now urge the specious plea of ‘unemployment relief’ as their excuse for RAILWAY AGE suggesting the imposition of additional taxes on the people. Everybody knows that the contractors are not thinking about the unemployed at all but only about the contractors.” Club Meetings The Pacific Railway Club will hold its next meeting at the Transportation Club, Palace Hotel, San Francisco, Cal., on Thursday evening, May 12. This will be the second meeting on “efficient freight service,” and the causes of loss and dam- age will be discussed by George Rowland, general yardmaster, Southern Pacific; O. H. Bryan, locomotive engineman, Western Pacific, and others. The Toronto Railway Club will hold its next meeting at the Royal York Hotel, Toronto, on Monday evening, May 2. W. C, Perron, assistant traffic manager of the Abitibi Power & Paper Company, will speak on highway transportation vs. railway freight rates. The Cincinnati Railway Club will hold its next meeting on Tuesday evening, May 10, at Hotel Gibson, Cincinnati. Timken roller bearings will be discussed and il- justrated by motion pictures. Mechanical Division Acts to Increase Coupler Service Life As a result of favorable action on an important letter ballot recently sub- mitted to the individual members of the American Railway Association by the General Committee of the Mechanical Division, it is expected that large econo- mies will be realized by extending the wear limits, without any sacrifice of safety, for Type-D and Type-E couplers and revising the regulations pertaining to the reclamation of coupler knuckles, locks, pins, bars and cast-steel yokes. In view of the potential far-reaching ef- fects of this letter ballot in reducing coupler costs, as well as the frequency of holding cars out of service for coupler renewals, the practices described in the letter ballot will be put into ef- fect without delay, being formally ap- proved as of May 1, 1932. The vote on the, recommendations from the Committee on Couplers and Draft Gears was divided into 19 propo- sitions, the first three of which covered a proposed immediate extension of the gaging limit for Type-D and Type-E couplers to 5-5/16 in., as measured by the worn-coupler limit gage, illustrated in the committee report. Five proposi- tions, receiving favorable action, per- tained to reclamation of Type-D coup- lers, except those condemned for knuckle stretch or nose wear, by gas or electric welding, as recommended by the committee. Favorable action was taken on the proposition that coupler locks may be reclaimed by building up the depression in the surface of the lock, the welding not to extend beyond the surface surrounding the depression, as recommended by the committee. Fa- vorable action was also taken on the proposition to reclaim knuckle pivot pins by heating, straightening and heat treating in accordance with practice specified by the committe. April 30, 1932 The next seven propositions pertained to the reclamation of coupler bars, in accordance with detailed recommenda- tions by the committee for the welding and normalizing of back walls; worn keyways; coupler-shank butts; guard- arm cracks (where not over 40 per cent of the section is affected and the crack does not extend into the lock Opening or pocket); building up shanks worn from contact with the carrier iron: heating and straightening bars with bent shanks and bars with bent guard arms. The final proposition related to the reclamation of cast-steel coupler yokes, as recommended by the committee. Al} of these propositions involving changes in interchange rules will be included in a supplement to the rules to be issued August 1, 1932. In the meantime, the railroads are requested to issue neces- sary instructions to car inspectors, shop forces and reclamation plants to make the practices effective May 1. New Reduced Excursion Fares On D. L. & W. Extension of one-day and 15-day ex- cursion rates to additional stations, the introduction of new restricted 10-trip tickets at low rates and the establish- ment of more frequent non-rush hour train service are the latest answers of the Delaware, Lackawanna & Western to the competition of highway carriers for the passenger traffic of the New Jersey suburban territory served by that rail- road. One-day round-trip excursion tickets, at a cost approximating the present one- way fares, are now available for journeys between all stations in the territory, Dover, N. J., and east. Formerly these tickets were on sale only for journeys from points on the Lackawanna to New York and Newark and were not avail- able to round-trip travelers from New York or Newark to Lackawanna points. The one-day excursion tickets are good only on the date of sale but are accepted for the return journey up to 3.20 a.m. on the following day. They are not valid from Mondays to Fridays, inclusive, on trains scheduled to arrive in Hoboken, N. J., between 7:00 a.m. and 9:00 am. nor on trains scheduled to leave Hoboken between 5:00 p.m. and 6:00 p.m; on Saturdays, Sundays and holidays they are accepted on all trains. The territory for the regular 15-day ex- cursion tickets has been extended to in- clude Lackawanna stations as far west as Washington, N. J. and Branchville, N. J. thus affording lower round-trip rates to and from territory west of Dover. These 15-day tickets are good on all trains and are sold at a rate which approximates one and one-half times the standard one- way fares. The new restricted 10-trip tickets are on sale for journeys between New York or Newark and practically all stations, Dover and east; the rate is approximate- ly 30 per cent less than the cost of the regular 10-trip ticket. The new 10-trip tickets, good for the bearer and limited to three months from the date of sale, will be restricted against rush-hour trains in the same manner as the one-day ex- C SO COND Ut te Who Car Lin tha; Tep ng rn rd- nt ick ng rn Nn; ent ns. the es, All ES in 1ed the lop ake eXx- the rip our of to for sey ail- . at ne- leys ory, lese \eys Jew ail- lew nts. ood ted on alid on ken, a.m. ken on are in- it as Jo s to hese and ates one- are Tork ions, 1ate- the -trip ited sale, -ains Vol. 92, No. 18 cursion tickets except that the restricted 10-trip ticket may be used during the re- stricted periods if two journeys are counted for each passenger riding; if only one ride remains on the ticket it will be accepted for one passenger dur- ing the restricted hours upon additional payment of half fare in cash. The more frequent non-rush hour service, the announcement states, was made possible by the electrification of the Lackawanna’s suburban lines and as a result the mid-day and evening train service has been placed on a regular- interval basis with the average time be- tween trains shortened. The new sched- ules, for example, provide non-rush hour service on a half-hourly basis between Montclair and Summit and Hoboken; formerly such off peak schedules were on an hourly basis. Class | Roads Had Net Deficit of $30,863,019 in January Class I railways in the United States in January had a net deficit of $30,863,019, as compared with $3,163,320 in January, 1931, after receipt of other income and payment of rent, interest and other de- ductions, according to the first compila- tion made public by the Interstate Com- RAILWAY AGE merce Commission of its new series of monthly reports of selected income and balance-sheet items, which was required for the first time this year. Heretofore such information has been shown only in the annual reports. The details appear in the accompanying table. 1.C.C. Hears Arguments on Four- System Plan The application of the principal eastern railroads for a modification of the Inter- state Commerce Commission’s consolida- tion plan of December, 1929, to approve the four-system plan for consolidating the eastern railroads in place of the five- system allocation proposed by the com- mission, was finally submitted to the full membership of the commission this week, in oral argument beginning on April 25 and expected to continue for four days. The plan has been before the public since it was announced in a gen- eral way by President Hoover just be- fore the end of 1930 and the application was filed with the commission on October 3 after a series of further conferences among the railway executives to perfect the details. Hearings have been held this year before Chairman Porter and Ex- Selected Income and Balance-Sheet Items Class 1 Steam Railways in the United States Compiled from 161 reports representing 165 steam railways, including 17 switching and terminal companies TOTALS FOR THE UNITED STATES (ALL REGIONS) f Income Items SN aioe oie see were neon LO CONT DUH Woe Balance-Sheet Items Selected Asset Items Net railway operating income..........-..-- ROR rye rr re ee ee renee SE MUNIN, 6.55: 5/s.4: 2.0 50 9-0/S.01 oo Gamiacwsece I NN ie ain.o'e dw ds sin'e waceie oe aera NN en ee MN arate ac onl x: sroacalnses 4 acerca ae . Dividend declarations (from income and surpius) : SO, OR COMMON GIOEK. 6 ccciccircccceccceve 9-02. On preferred stock... . 2.6.0. cc cece ee For the month of January oil 10. Investments in stocks, bonds, etc., other than those of affiliated companies (Total,- Account 707)........... a Ce Ce eee ee 16. Traffic and car-service balances receivable 18. Miscellaneous accounts receivable............ 7D, GUIS GE BOBO 6.6 dsice cscs ec ceseeses 20. Interest and dividends receivabie............ ee re eee Se ee 23. Total current assets (Items 11 to 22)..... Selected Liability Items 24. Funded debt maturing within six months* 2)- Logue and. hills. payables << s.:csis)0/0/0'5:016/00,0%6 26. Traffic and 27. Audited accounts and wages 28. Miscellaneous accounts payable 29, Interest matured unpaid 30. Dividends matured unpaid....... 31. Funded debt matured unpaid 32, Unmatured dividends declared 33. Unmatured interest accrued................. 34. Unmatured rents BOCTUCT . 0. cecccsceseveees 35. Other current liabilities 36. Total current liabilities (Items 25 to 35) 12. Demand loans and deposits. ................ 13. Time drafts and deposits.................06. cee oe ae ere TS. Loans and bills receivable. ..ccccccccicececes 17, Net balance receivable from agents and conductors............ car-service balances payable...... - a ee ee ee re 1,024,815,998 1932 1931 ee eee $11,847,280 $34,461,172 telatcltateahe wie ion 14,408,150 19,268,981 pana einen Seen elins 26,255,430 53,730,153 ica See cneh ats 10,678,638 10,915,848 whtetigattlileieaaaakcs 44,261,200 43,765,032 nites ie he ta apc a 2,178,611 2,213,593 ee on eee 57,118,449 56,894,473 ParianaenSciaraser mien d 30,863,019 d 3,164,320 at ntasineseeogs 193,333 2,533,515 dered Wl arere elaie atere Ges 695,959 4,874,504 Balance at end of January — oe 1932 1931 nica og encne aes $793,795,495 $835,782,604 re ne ne ee 284,607,717 391,776,232 sviortar lersecaite Welea tonerece wie 47,828,566 64,428,843 SP ere 37,598,869 97,422,140 sabia ar ieterinuubbenelaieteisueck 47,639,701 49,160,369 Sd heute Rattatateeraanets 20,543,434 13,710,552 SE Seopa ee era 51,401,907 69,396,677 42,063,800 50,983,371 Riel apoke aise datohiueeaees 164,037,624 179,315,800 SEE OE PER eatin 374,243,774 436,816,609 rae 31,729,015 33,146,845 oviakareteietep cece teiereas 2,104,552 1,883,123 ita stn. eres aed ea Saas 14,210,481 14,674,074 ateitteds aba trae 1,118,009,440 1,402,714,635 ab Sa 95,180,676 165,501,282 wits sateen (Mane ctetetetas 258,358,513 129,462,325 sche cstaands Canny tosne an dreXs 68,451,341 90,077,106 sik: Rce ee ae ease renee 249,548,638 301,495,509 pratkfins.c setters 76,582,351 77,412,655 f5 Sp Ree ete erate 136,743,979 a 151,863,604 14,218,877 30,023,208 57,083,061 44,772,051 RE en, ren eerie 14,630,371 46,712,170 Be OR ake Bono 108,709,021 107,731,159 ox setae Exes 21,955,551 22,235,409 Saas ite duspdareme wamcccate 18,534,295 20,296,771 1,022,081,967 + Complete data for the following Class I railways not available for inclusion in these totals: Canadian National Lines in New England, Canadian Pacifie Lines in Maine, and Canadian Pacific ines in Vermont. than Teport. Includes payments which will become due on account of principal of long-term debt (other that in Account 764, Funded debt matured unpaid) within six months after close of month of @ Includes casi unpaid interest aecrued by Chicago & Alton, succeeded by The Alton as of July 19, 193 @ Deficit. 747 aminer Koch after which briefs were filed by the applicant railroads, the Baltimore & Ohio, Chesapeake & Ohio, New York Central and Pennsylvania, and by the various interests, including several other railroads, that have intervened either in opposition to certain features of the plan or in support of it. Time was assigned for the argument to 25 counsel represent- ing various intervenors, in addition to the four representing the applicants. In general most of the argument consisted of a repetition for the benefit of the commissioners who had not heard the testimony of points that had previously been made at least three times, in the application and intervening petitions, in testimony, and in the briefs. Arguments were made on behalf of the applicants by R. B. Tunstall, assistant general counsel of the Chesapeake & Ohio, Henry Wolf Bikle general attorney of the Pennsyl- vania, Luther M. Walter, representing the Baltimore & Ohio, and Clyde Brown, general solicitor of the New York Cen- tral. 1.C.C. Inquires Whether Official Salaries Have Been Cut An inquiry for the purpose of ascer- taining how many railway officials paid at the rate of $10,000 a year or more in December, 1929, were still receiving that much in March, 1932, has been insti- tuted by the Interstate Commerce Com- mission. The order for a report on the subject addressed to the presidents of all Class I railways was not accompanied by any information as to the purpose for which the information was wanted but the subject has been discussed to some extent in Congress recently in con- nection with criticisms of government loans to banks and railways and the question as to whether the salaries of government officials and employees shall be reduced has been the principal topic of discussion in Washington for several weeks. Although the order was made public on April 27 it was dated April 23 and had been sent out to the rail- ways the day before it was publicly re- ported that the House economy commit- tee intended to propose in its “omnibus economy” bill that the salaries of the In- terstate Commerce Commissioners and some other government commissioners be permanently reduced from $12,000 to $10,000 after July 1, 1933. An amend- ment had been offered in the House to the independent offices appropriation bill to prohibit government loans to corpo- rations paying salaries of more than $20,000 a year, but was defeated. The commission’s order, by direction of Division 4, which is the one that handles railway applications for loans from the Reconstruction Finance Corpo- ration, calls for a report by May 23 showing a list of the positions held by persons in the employ of Class I rail- way companies for which the annual rate of pay is $10,000 or more as of De- cember, 1929, and also the annual rate of pay for the same positions as of March, 1932. If any new positions pay- ing $10,000 or more have been created since 1929, they should be listed as of 748 March, 1932. Although the commission does not require the names of the per- sons holding the positions, it is desired that in all cases where one individual held positions in two or more operating companies the combined salary be shown. Many announcements have been made of reductions of 10, 15, or 20 per cent in the salaries of railway officers but the commission has no record of them or of the extent of the practice. Incidentally, the commission’s order was dated following the publication in the Congressional Record, at the in- stance of Senator Long of Louisiana, of a letter said to have been addressed by C. E. Johnston, president of the Kansas City Southern, to employees of the road suggesting that they write to their Con- gressman urging a reduction in the pay of government employees. M-M-M Congress The Three M Congress, which covers management, maintenance and materials handling, sponsored by divisions of the American Society of Mechanical Engi- neers, co-operating with the American Foundrymen’s Association and the Mate- rials Handling Institute, will be held at the Hotel Statler, Detroit, Mich. on Wednesday and Thursday, May 4 and 5. The tentative program for this meeting is as follows: Wepnespay, May 4 Morning Maintenance of Materials Handling Foundry Equipment, by T. A. Bissell, associate editor, Maintenance Engineering. . Relative Wear of Metals by Abrasion, by & &. Weiss, chief engineer, Link-Belt Company. Management Policies and Practices in a Continu- ous Production Grey Iron Foundry, by W. G. Reichert, metallurgical engineer, Singer Man- ufacturing Company. Afternoon Inspection trip through Ford Motor Company. Evening A.S.M.E. dinner at Detroit Yacht Club. Tuurspay, May 5 Morning Management session, Chairman _ John Carmody, editor, Factory and Industrial Management, and president, Society of Industrial Engineers. Knowledge of Markets and Its Effect on Prod- uct Design, by Prof. R. F. Elder, assistant professor of marketing, Massachusetts Insti- tute of Technology. Be Man-Hour Analysis of Productivity or In- dustry as revealed by unusual data gathered by Census Bureau, by L. P. Alford, vice- president, Ronald Press, and J. E. Hannum, director, Engineering Index. | International Trade of the United States, by George Quisenberry, editor, The American Automobile (Overseas Edition), Business Publications’ International, Inc., New York. Moving pictures and stereopticon views of mate- rials handling by members of the Materials Handling Institute. : Materials Handling session (under auspices of the Manufactures Committee Materials Han- dling Division, A.S.M.E. Materials Handling Institute Co-operating), Chairman _ George E. Hagemann, editor, Alexander - Hamilton Institute, and chairman, Manufacturers Committee. Report on Performance Standards of Locc- motive and Crawler Type Cranes and Shovels, by F. A. Smythe, president, Thew Shovel Company. . Report on Capacity of Containers, by W. E. Farrell, president, Easton Car and Construc- tion Company. ; } Report on Nomenclature and Classification of faterials Handling Equipment, by Geo. Morehead, vice-president, Link-Belt Com- any. Re rt on Materials Handling Lectures and eetings in Colleges, by Matthew W. Potts, Alvey-Ferguson Company, and B. Crockett, Crockett & Smith. ? Standardization of Materials Handling Equip- ment. RAILWAY AGE Moving pictures and stereopticon views of mate- rials handling by members of the Materials Handling Institute. Afternoon Waste Elimination session, Chairman W. E. Roe, Barnes Company, and member of A.S.M.E. Waste Elimination Committee. Plant Layout by Products Instead of by Parts, by Louis Berg, Manager of manufacture, A. C. Spark Plug Company. Waste Elimination Symposium: Common Savings in Shop Wastes, by C. B. Hall, stores manager, Pennsylvania Rail- road, Philadelphia, Pa. Weekly Accounting of Waste, by S. K. Cooper, manager of inspection and control department, Johns-Manville. Maintaining Interest in Suggestion Systems. by Prof. W. E. Fisher, University of Pennsylvania. Materials andling Session (American Foun- drymen’s Association, Materials Handling Division, A.S.M.E., co-operating). Tram-rail for Materials Handling in the Foundry. Materials Handling Problems in the Foundry Department of the Western Electric Com- pany. Materials Handling as Related to Miscellaneous Jobbing Foundries. Evening Materials Handling Institute Buffet-Dinner and Smoker (including members of the Manu- facturers Committee, A.S.M.E.). Speakers: R. L. Lockwood, U. S. Department of Commerce, ‘What the Materials Handling Institute Can Accomplish,” and John Van Deventer, editor, Iron Age, “Licking the Octopus of Depression.” Assignments in Railway Engineer Battalions The following assignments of engineer reserve officers to railway battalions have been announced by the War Department, Corps of Engineers: Capt. William P. Bickley, Eng. Res., master mechanic, Pennsylvania, Meadows, N. J., has been assigned to the 50th Railway Battalion. _ First Lieut. Herbert J. Kleine, Eng. Res., as- sistant master mechanic, Pennsylvania, Meadows, N. J., has been assigned to the 50th Railway Battalion. Capt. Carleton K. Steins, Eng. Res., master mechanic, Pennsylvania, Wilmington, Del., has been assigned to the 52nd Railway Battalion. Capt. Norman H. Schafer, Eng. Res., division engineer, Reading, Philadelphia, has been as- signed to the 51st Railway Battalion. First Lieut. Bernard J. Schwendt, Eng. Res., assistant signal engineer, New York Central, Cleveland, Ohio, has been assigned to the 598th Railway Battalion. Capt. Aurula B. Lackey, Eng. Res., division storekeeper, Southern, Birmingham, Ala., has been assigned to the 594th Railway Battalion. Second Lieut. Wm. W. Greiner, Jr., Eng. Res., track supervisor, Southern, Tuscaloosa, Ala., has been assigned to the 594th Railway Battalion. Capt. Lamar E. Crevasse, Eng. Res., general foreman, locomotive department, Seaboard Air Line, Tampa, Fla., has been assigned to the 595th Railway Battalion. Second Lieut. Paul P. Walker, Eng. Res., general car inspector, Chicago, Burlington & Quincy, Chicago, has been assigned to the 596th Railway Battalion. First Lieut. Gunner Tornes, Eng. Res., assis- tant engineer maintenance of way, Chicago, Milwaukee, St. Paul & Pacific, Chicago, has been assigned to the 609th Railway Battalion. First Lieut. Edgar W. Fritts, Eng. Res., road foreman, locomotives, Chicago, Burlington & Quincy, North LaCrosse, Wis., has been as- signed to the 596th Railway Battalion. Capt. Robert C. Charlton, Eng. Res., signal supervisor, Union Pacific, Oregon-Washington Railroad & Navigation Company, Portland, Ore., — been assigned to the 619th Railway Bat- alion. Attorney General Says 1.C.C. Has Primary Duty In Anti-Trust Cases Pointing out that Congress has placed primarily on the Interstate Commerce Commission the burden, and very largely the discretion, of determining what in- vestigations should be instituted and what proceedings should be undertaken in cases of alleged violations of the Clay- ton anti-trust act by railroads, Attorney General Mitchell has addressed to the April 30, 1932 Senate a reply to Senate Resolution 173 declining to give an opinion as to whether the anti-trust laws have been violated by recent transactions of hold. ing companies and railroads concerned in the four-system consolidation plan, The resolution, introduced by Senator King of Utah, had referred particularly to the testimony by Commissioner East- man before the House committee relat- ing to the activities of the Pennsylvania and Van Sweringen companies and had requested the Attorney General to in- form the Senate whether such transac- tions constitute violations of law, in what respect they differ from those in- volved in the Northern Securities Case, and what steps, if any, have been taken or are contemplated by the Department of Justice. In the first place the reply of the At- torney General reiterates at considerable length, with citations, that for more than 100 years there has been an unbroken line of authority to the effect that the Aitorney General is not authorized, em- powered or required to give opinions to committees of Congress or to either House. He then states that no com- plaints or transactions had been brought to his attention involving acquisitions of common carriers in which it was sug- gested that such acquisitions were in violation of the Sherman act, with the exception of one stock acquisition, and that no acquisition by one carrier of an interest in another, other than by means of stock purchase, had come to the atten- tion of the department, nor, as he was informed, to the attention of the com- mission. After citing the provisions of the Clayton law the letter then described the action of the commission in several cases it has instituted under the Clayton law and referred to three cases in which it had been asked by the commission to institute injunction proceedings but in which the commission had later with- drawn the request. In one case counsel for the Alleghany Corporation and other owners of the stock had agreed not to vote the stock of the Wheeling & Lake Erie, which was later trusteed. In an- other the Kansas City Southern had sold its stock of the St. Louis Southwestern and the Missouri-Kansas-Texas. In the third, counsel for the Pennsylvania com- panies had voluntarily entered into an agreement with the commission not to vote or dispose of stock of the Wabash and Lehigh Valley until the commission could complete its investigation and ren- der its decision. After further detailed discussion of the Clayton act the At torney General says: In view of this legislation there has developed a practice or working arrangement between the commission and this department, pursued for 4 good many years, under which the commission 10 the performance of duties placed directly upon by the acts, and with its corps of specially traine and equipped employees and special agents, and with the commission’s general knowledge of rail- road matters, transactions, practices, etc., gaim from its constant contact with their affairs, initiates and conducts practically all investiga: tions of alleged violation of those acts and ol any matter affecting the practices and trans actions of .carriers subject thereto, and this > partment, in pursuance of this plan, frequent refers to the commission for investigation by ™ special force complaints involving violations, 4 that act. After it has completed its invest:gation: the commission, pursuant to the provisions Continued on next left-hand page At- ible han ken the em- 5 to ther om- ight s of sug- 2 in the and f an Pans ten- was om- s of ibed reral yton hich n to it in vith- insel yther yt to Lake ) an- sold stern 1 the com- oO al ot to ibash ssion | ren- railed . At- eloped en the for 4 sion In pon it trained Ss, and of rail- gained affairs, restiga- and ol trans: his de- quentl: by its ons 0 ‘gation. ions of page April 30, 1932 RAILWAY. AGE A NEW Tool...for Reducing Operating Expenses By intensifying power output, locomotive designers have given the railroads a new tool with which to attack operating problems. The Chesapeake & Ohio Railway utilized this principle of intensified power output in its latest design of 2-10-4 type locomotive. Comparison of this locomotive with a class of power which has given a splendid ac- count of itself, the C. & O. 2-8-8-2 Mallet, presents a clear-cut demonstration of the possibilities for capacity and economy of- fered by the Super-Power Locomotive. With a single 10 coupled driving wheel unit and trailer booster, the Super-Power Locomotive weighs about two tons less than the old locomotive and carries about fifty- nine tons less on its drivers. In starting power the two locomotives are about the same, but at 30 M.P.H. the 2-10-4 has about 8% more draw bar pull. The practical operating advantages of the 2-10-4 type are decreased fuel consump- tion and maintenance and increased speed, resulting in increased gross-ton-miles-per- train-hour. Power and more power is the answer to the problems of modern railroad operation. 19 LIMA LOCOMOTIVE WORKS Incorporated LIMA OHIO 749 the statute already quoted, either refers to the appropriate United States attorney, under scc- tion 12, its report containing the facts developed by its special agents with recommendation for prosecution, or makes its request upon the At- torney General that certain proceedings be insti- tuted. This arrangement would seem to be in harmony with the intent of Congress as expressed in the statutory provisions quoted above, and avoids wasteful and unnecessary duplication of work. And presumably the arrangement has heretofore proved to be a fairly satisfactory and successful method of enforcing the acts pertaining to common carriers. This department has, of course, endeavored to give prompt consideration and attention to any request made by the com- mission in connection with matters arising under the statutes affecting common carriers and has otherwise cooperated with the commission in the enforcement of all of these statutes, including the Clayton Act. Inasmuch as the primary duty put by section 11 of the Clayton Act upon the commission with respect to common carriers would seem amply to protect the public interest in acquisitions by one carrier of others as effectively as would any action undertaken by this department, and since no acquisition other than by stock purchase has come to the attention of this department, or, as I understand it, the commission, and the com- mission has acted in performance of its duties with respect to those instances which have come to its attention, and has either ordered the di- vestment of stock found by it te be illegally held, or has approved such. acquisitions as it has found in the public interest, there has been no occasion for this department to proceed under the provisions of the Sherman Act. For this department to undertake action on its own account and independently of the Inter- state Commerce Commission in matters of this kind would result in hopeless confusion and dis- order, both to the transaction of public business and in the affairs of the carriers, and would result in an overlapping of functions and a duplication of effort, which, in the interest of economy, it is desirable to avoid. Equipment and Supplies LOCOMOTIVES THe GreAT NORTHERN plans to con- struct three locomotives in its Hillyard shops at Spokane, Wash., on which work will be started during June. FREIGHT CARS THE SHERWIN-WILLIAMS COMPANY has received bids on ten tank cars of 8,000 gal. capacity. IRON & STEEL THe Lone Istanp is-asking for bids until May 2 on 12,900 tons of steel for grade crossing elimination work at Valley Stream, L. I. Tue Reapinc Company has given a contract to the Belmont Iron Works for the structural steel, abcut 250 tons, for the superstructure for pier 11 at Port Richmond, Philadelphia, Pa. MISCELLANEOUS THE BoarpD OF TRANSPORTATION, NEW York City, has awarded to the Westing- house Electric & Manufacturing Company a contract for furnishing electrical power equipment for the new Fnrlton street sub- way in Brooklyn, New York. The award was made at the bid price of $1,290,860.90, the second lowest of four bids received. The lowest bidder ($1,247,198.13) failed to meet the requirements of the contract. RAILWAY AGE Supply Trade Day & Zimmermann, Inc., engineers, have moved their Philadelphia, Pa., offices to the Packard building. The Bird-Archer Company has moved its offices from 1 East Forty-second street to 90 West street, New York City. The Enterprise Railway Equipment Company offices are now located in the Buckingham building, 59 East Van Buren street, Chicago. The Sellers Manufacturing Company, Chicago, has moved its sales office from 231 South LaSalle street to its plant at 4705 Montrose avenue. 2 < e oeeee egereer — The traffic department of the Edward Hines Lumber Company has moved its offices from 2431 South Lincoln street to 105 West Adams street, Chicago. A. A. Adams is general traffic manager. The Electric Tamper & Equipment Co., Chicago, has moved its sales head- quarters from Chicago to Ludington, Mich., and will handle all inquiries, ord- ers, sales and service correspondence from that location. William H. Dudley, Jr., Canal Bank building, New Orleans, La., has been ap- pointed special sales representative of the Roberts & Schaefer Company, en- gineers and contractors, Chicago. Mr. Dudley’s territory will cover the States of Louisiana and Mississippi. Lackawanna steel sheet piling, manu- factured for many years by the Beth- lehem Steel Company, will in future be designated as Bethlehem (Lacka- wanna) steel sheet piling and its sale will be handled by the Kalman Steel Corporation, a subsidiary of the Beth- lehem Steel Corporation, although its manufacture will continue in the mills of the Bethlehem Steel Company. The Pacific Coast Steel Corporation will! handle this product on the Pacific Coast. Safety Refrigeration, Inc., Chicago, has entered into contracts covering the operation of its cars and Safety protec- tion service, with the Great Northern and the Missouri-Kansas-Texas Lines. Under these operating agreements the use of Safety automatic iceless refrigera- tor cars and Safety protective service has been extended to all shippers of perishables on these roads. Safety pro- tective service is now available to shippers on more than 75,000 miles of railroad in the United States. The Phelps Dodge Copper Products Corporation has been organized to specialize in the manufacture and sale of products made from copper mined by the Phelps Dodge Corporation, and has taken over the following fabricating units: The British American Tube division, the American Copper Products division, the Inca Manufacturing divi- sion, the P-M-G Metal division and the Habirshaw Cable & Wire Corp., which Vol. 92, No. 18 latter company will maintain its corpo. rate existence and will be operated as aq subsidiary. James S. Watson, vice-president jy charge of the Link-Belt Company’s Dodge works, Indianapolis, Ind., has been appointed vice-president and gen- eral manager of both the Dodge and the Ewart works, the company’s two In- dianapolis chain factories, succeeding George P. Torrence, who recently be- came president. Frank S. O’Neil, man- ager of the Ewart works, has been ap- pointed assistant general manager of both Indianapolis plants and C. Walter Spalding, who has been connected with the Ewart works for a number of vears, has been appointed sales manager of Ewart plant products. Standard Equipments, Inc., 415 Lex- ington avenue, New York, manu facturer of Evertite rail joints, has opened an office in Room 2001, Straus building, Chicago, in charge of E. W. Backes, who has been appointed west- ern representative. After graduating from Pennsylvania Military College in 1920 and the Yale Graduate School in 1922, Mr. Backes spent four years and eight months in Havana, Cuba, with the Havana Electric Light & Power Com- pany as inspector, assistant engineer of ways and structures and engineer of ways. He left Havana to enter the em- ploy of the Boston & Maine at Boston, Mass., in May, 1927, where he served as genera! foreman, assistant engineer of construction, assistant division engineer and division engineer, leaving the rail- road for his present position in March of this vear. At the annual meeting of the board of directors of the National Lead Company, New York, on April 21, William H. Croft was elected a_ vice-president. This is in addition to his duties as presi- dent of the Magnus Company, Incorpo- rated, of which he has been president since William H. Croft March, 1929. Mr. Croft will have head- quarters both at Chicago and at New York. He has been connected with the Magnus Company for many years having entered the employ of the Hewitt Manu- Continued on next left-hand page April 30, 1932 RAILWAY AGE 20 Trains that Distinguish . Missouri Pacific Lines : | HAVE BOosTER=EQUIPPED LOCOMOTIVES : These trains, and there are nine of them, are important passenger : trains. Each one...’ The Scenic Limited”, “The Sunshine Special”, " “The Missourian”, “The Texan”, “The Hot Springs Special”, “The x- Tennessean”, ‘The Houstonian”, “The Orleanean” and “The Pioneer’...has a reputation to maintain and a passenger preference “A that must be cultivated continually. ce In this, The Locomotive Booster is a big help. “ Booster power speeds up starting, adds to riding comfort and ral facilitates train movement all along the line. Consequently, pass- engers are kept in good humor, the prestige of the trains is en- a hanced, and railroad revenues benefit. ai Improved locomotive operation made possible by The Locomotive ° Booster is as vital in attracting the continued patronage of travelers a as are de luxe train appointments and unusual train service. H. — DE LUXE TRAINS DESERVE DELUXE HANDLING rpo- anes ithe ie" an " _ i [| FRANKLIN RAILWAY SUPPLY ¢€O., INC. NEW YORK CHICAGO MONTREAL 1 page 750 facturing Company, a subsidiary of the Magnus Metal Company, in 1893. In 1904, Mr. Croft became assistant to the president of the Magnus Metal Com- pany, and the following year was made sales manager. In 1907 the National Lead Company acquired the Magnus Metal Company and its subsidiaries and Mr. Croft was elected vice-president in charge of operations and sales of both the Hewitt and the Magnus companies. On the merger of these two companies into the Magnus Company, Incorporated in 1915, Mr. Croft was elected first vice- president and since March, 1929, was president of the company, which position he retains in addition to his new duties as vice-president of the National Lead Company. OBITUARY J. J. Cozzens, representative of the Union Switch & Signal Company, with headquarters at New York, died at his home in East Orange, N. J., on April 22, at the age of 67. Construction Denver Paciric—The hearing before an examiner of the Interstate Commerce Commission set for May 10 at Los An- geles on this company’s application for a certificate authorizing the construction of a new railroad from Denver to San Pedro Harbor has been cancelled. READING.—This company has awarded to the Belmont Iron Works, Philadelphia, Pa., a contract for furnishing structural steel for the superstructure of Pier 11, now under construction by the Reading, at Port Richmond, Philadelphia. The new pier, designed as an auxiliary coaling dock, and estimated to cost $150,000, was authorized last fall, as reported in the Railway Age of December 5, 1931, page 875, to replace an older pier destroyed by fire. The Reading has also awarded to William Steele & Sons Company, Phila- delphia, the general contract for the con- struction of a new passenger station at Norristown; Pa., to which point the com- pany’s electric suburban service is now being extended. Union Paciric SystemM.—Work will commence at once on the project for the relocation of the tracks of the Los An- geles & Salt Lake unit of the Union Pa- cific in the vicinity of Long Beach, Cal. This project, which is estimated to cost $2,000,000, including the right of way, in- volves the construction of 7% miles of new line to permit the removal of 1.7 miles of the present line from the down- town streets of Long Beach; the con- struction of six reinforced concrete and steel grade-separation structures, and a bridge across the Los Angeles flood con- trol channel. A contract for the grading and concrete work has been awarded to the Merritt-Chapman & Scott Corp., San Pedro, Cal. RAILWAY AGE Financial Boston & Matne.—Abandonment.— This company has applied to the Inter- state Commerce Commission for authori- ty to abandon operation over its lines from Wing Road, N. H., to Base, 20 miles, and from Whitefield Junction to Lancaster, 12 miles, and to operate over the line of the Maine Central between Whitefield and Fabyans, 15 miles, and between Waubek Junction and Coos Junc- tion, 11 miles, thereby effecting a reduc- tion in expenses. Boston & Marne.—R. F. C. Loan.— This company has applied to the Inter- state Commerce Commission and the Re- construction Finance Corporation for a loan of, $10,000,000 to pay bonds, current vouchers, equipment trust obligations, capital expenditures, interest, and amounts due contractors. The application said the company had loans from several banks amounting to $5,500,000, a large part of which had been borrowed with the definite understand- ing that the railroad would apply to the R. F. C. for loans with which to pay it off, but that it was proposed to ask the banks to continue to carry about half of the amount. CAROLINA, CLINCHFIELD & OHI0.—Ap- nual Report—The 1931 annual report of this company shows net deficit after in- terest and other charges of $1,007,221, as compared with net deficit of $462,052 in 1930. Selected items from the Income Statement follow: Increase 1931 1930 or Decrease RatLway OPpeEr- ATING ReEVE- WE eseeced $5,410,192 $6,016,063 —$605,871 TotaL OPERAT- ING Expenses 3,530,509 3,998,345 — 467,836 NET REVENUE FROM OPERA- eee 1,879,683 2,017,718 — 138,035 Railway tax ac- : SE Geacwe we 746,000 836,000 — 90,000 Railway operat- ing income... 1,133,551 1,181,469 — 47,918 Equipment eee 340,882 765,671 — 424,789 Joint facility rents (Dr.)... 14,363 19,944 — 5,581 NeT RatLtway OPERATING IN- COME ccvcses 1,460,070 1,927,195 — 467,125 N on -operating income ...... 72,768 161,863 — 89,095 Gross INcoME. 1,532,838 2,089,058 — 556,220 TotTat Depvuc- TIONS FROM Gross Income 2,540,059 2,551,109 — 462,052 + 545,169 11,050 Net Dericit... 1,007,221 Carro, TRUMAN & SouTHERN.—R. F. C. Loan Denied—The Interstate Commerce Commission on April 21 denied approval of a loan of $75,000 from the Reconstruc- tion Finance Corporation applied for by this company, the general purpose of which was to discharge indebtedness to its proprietor, the Tschudy Lumber Com- pany payment of which had been demand- ed, according to the report, “for the rea- son that it is due, but particularly on account of the financial necessities of the April 30, 1932 lumber company.” The commission’s re- port also pointed out that part of the line had been abandoned and that the prospec- tive earning power and the security of- fered are not such as to afford reasonable assurance of ability to repay the loan within the time specified. This was the first case in which the commission has de- nied approval of a loan from the R. F. ¢. Cuicaco & EASTERN ILLINOIS—Annual Report—The 1931 annual report of this company shows net deficit after interest and other charges of $3,641,119, as com- pared with net deficit of $7,251,681 in 1930. Selected items from the Income Statement follow: Increase or 1931 1930 Decrease Average Mileage Operated . 938.95 946.24 — 7.29 RATLWAY OPERATING REVENUVES.$15,135,961 $19,784,299 —$4,648,339 Maintenance of way... 1,906,484 2,210,562 — 304,078 Maintenance of equip- ment 3,201,491 7 9,280,045 — 6,078,555 Transporta- Te osawe 6,856,958 8 ,306,537 — 1,449,578 Tota, OPER- ATING Ex- PENSES ... 13,704,652 21,701,496 — 7,996,844 Operating ratio 90.54 109.69 19.15 NET ReEve- NUE FROM OperaTions 1,431,308 * 1,917,197 — 3,348,505 Railway tax accruals 1,390,000 1,683,000 — 293,000 Railway operating income Equipment rents— Net 35,858 * 3,606,086 + 3,641,944 Re. seidsnaeis 992,146 1,218,006 — 225,860 Joint facil- ity rents— Net Dr... 744,213 Net Ratt- way OPER- ATING InN- COME ..... * 1,700,501 * 5,505,969 + 3,805,468 Non-operat- ing income 681,877 + 62,336 311,806 582,741 — 270,935 Gross In- COME -. * 1,388,695 * 4,923,227 + 3,534,532 Rent for leased roads 155,095 155,126 — 32 Interest on funded debt 1,872,045 1,933,452 — 61,407 ToTaAt De- FROM Gross INcoME .. 2,252,424 2,328,454 — 76,030 Net Dericit 3,641,119 7,251,681 + 3,610,567 + Includes $4,700,000 special retirement of equipment. * Deficits. Cuicaco Great WEsSTERN.—Annual Re- port—The 1931 annual report of this company shows net income after interest and other charges of $901,113, as com- pared with net income of $1,309,205 in 1930. Selected items from the Income Statement follow: Increase 1931 1930 or Decrease Average Mileage Operated .... 1,495.27 1,495.27 RAILWAY OPERATING - REVENUES ..$20,107,787 $22,830,320 —$2,722,533 Maintenance z of way 2,790,871 3,345,431 — 554,900 Maintenance . of equipment 2,277,687 2.772,638 — 494,951 Transport’n 7,424,340 8,776,051 — 1,351,711 Continued on next left-hand page ne ec f- ble an the ease ease 7.29 339 ,078 54,560 94,951 51,711 page Arch Brick Development Has Been Carefully Guided HARBISON-WALKER REFRACTORIES CO. April 30, 1932 RAILWAY AGE THERE’S MORE TO SECURITY ARCHES THAN JUST BRICK “ HAT will require a special pattern of Arch Brick.” This answer is an easy way out when- ever locomotive Arches present a problem. But think what every special shape means in adding to the Store- keeper’s worries. American Arch Company have consistently kept patterns to a minimum. Shapes have been carefully standardized. What is the practical result? One railroad was using 146 distinct patterns and sizes of Arch Brick on its lines. Now, thanks to the standard- ized Arch Brick of the American Arch Company, all it needs is 25 patterns to care for all the locomotives on the road. Consider the resulting economy in in- ventory, in space, breakage and in time of handling. Most Storekeepers are deeply appre- ciative of the constructive help con- stantly given them by American Arch Company. Refractory Specialists 21 AMERICAN ARCH CO. Locomotive Combustion Specialists , : . 751 Increase 1931 1930 or Decrease ToTaL OPERATING EXPENSES .. 14,183,465 16,580,399 — 2,396,934 Operating ratio 70.54 72.62 — 2.08 Net Reve- NUE FROM OperaTions 5,924,322 6,249,922 — 325,600 Railway tax accruals ... 931,940 1,085,000 — 153,060 paltwey operat- ng income. 4,987,635 5,162,653 — 175,018 Hire of freight cars, Dr.... 1,415,881 1,292,381 + 123,500 Joint facility Fees 931,301 950,796 — 19,495 Net Rattway OPERATING INCOME ... 2,571,094 2,853,179 — 282,085 Non-operating income .... 195,540 225,966 — 30,426 Gross INcoME 2,766,634 3,079,144 — 312,511 Rent for leased roads 77,692 77,724 — 32 Interest on funded debt. 1,727,315 1,630,021 + 97,293 Totat Depuc- TIONS FROM Gross IncomE 1,865,521 1,769,939 + 95,582 Net INcoME 901,113 "1,309,205 — 408,093 Denver & Satt LAkE.—Annual Report. —The 1931 annual report of this com- pany shows net income after interest and other charges of $25,404, as compared with net income of $30,247 in 1930. Se- lected items from the Income Statement follow: Increase 1931 1930 or Decrease Average Mileage Operated ...... 232.34 232.34 Rattway OpeEr- ATING REVENUVES$2,302,835 $3,197,282 —$894,446 Maintenance of eee 358,080 626,161 — 268;081 Maintenance of equipment .... 395,303 641,779 — 246,476 Transportation. 395,597 513,896 — 118,299 Total OPpeErat- ING EXPENSES... 1,303,369 1,974,951 — 671,582 WE DI Sidinwcs eccceces cocces Net REVENUE FROM OPERATIONS 999,466 1,222,331 — 222,865 Railway tax ac- See ~ aheeans 199,657 185,004 +- 14,653 Railway _ operat- ing and _ other PONE. 6.ccwnses 1,246,039 1,264,181 — 18,142 Hire of equip- ment, net..... 59,573 86,565 — 26,992 Rent for leased SE, awh oe aere 400,748 411,632 — 10,884 Interest on funded debt.... 810,000 810,000 TOTAL Depuc- TIONS FROM Gross eS ree i, 220, 635 1,233,934 13,298 Net Income... 25,404 30,247 — 4,843 | Erte.—Annual Report—The 1931 an- nual report of this company shows net deficit after interest and other charges of $901,093, as compared with net income of $4,171,149 in 1930. Selected items from the Income Statement follow: Increase 1931 1930 or Decrease RAILWAY OPERATING REVENUES $90, 153, 601 $108, 996,011 —$18, 842,409 Maintenance of way.... 11,226,541 13,278,737 — 2,052,196 Maintenance of equipt.. 18,149,615 23.144,827— 4,995,212 Transport’n 34,336,925 41,069,776— 6,732,852 TOTAL OPERATING Expenses.. 70,314,501 84,469,249 — 14,154,748 Operating ee 77.99 77.50 + 0.49 RAILWAY AGE 1931 Net REvE- NUE FROM OPERATIONS 19,839,101 24,526,761 — Railway tax accruais.... 5,167,313 Railway operat- ingincome 14,652,840 19,428,443 — Equipment and Joint facility rents, net, a” saaons 4,300,738 5,086,339 + 4,401,250 — Increase or Decrease 4,687,661 4,775,60 Net Rattway OPERATING IncomE... 10,352,103 15,027,192 — Non-operating income ... 4,554,604 5,178,093 — 4,675,090 Gross INcoME .. 14,906,707 20,205, 5,298,578 Rent for leased roads 2,193,460 2,219,387 — Tora Depuc- TIONS FROM Gross Income .. 15,807,800 16,034,136 — Net Dericit 901,093 *4,171,149— 5,072,243 * Income. Eureka Nevapa. — R. F. C. Loan— This company has applied to the Inter- state Commerce Commission and the Re- construction Finance Corporation for a loan of $10,000 to repair damage result- ing from unusual winter weather condi- tions, Report—The 1931 annual report of this company shows net deficit after interest and other charges of $120,607, as com- pared with net income of $65,947 in 1930. Selected items from the Income State- ment follow: 1931 Average Mileage Operated .... 397.73 RatLway OPER- ATING’ REVE- WORE csssece $2,819,200 Maintenance of WE: wetesscs 597,762 Maintenance of equipment ... 687,593 ‘Transportation. 1,037,229 Increase or Decrease Tota, _OPERAT- ING EXPENSES 2,423,752 Operating ratio 85.97 NET REVENUE FROM OPERA- WHS: hacccines 395,449 Railway tax ac- eS 216, 561 Railway operat- ing income. 201,111 Hire of Equip- ae 17,898 Joint facility NEE: -es6e0% 5. 114 N o n -operating INCOME s..... 16,296 Gross INCOME. 217, 407 Interest on funded debt. 296, 665 ToTAL Depuc- TIONS FROM Gross IncomME 338,014 Net DerFicit.. 120, 607 * Income. GutFr Coast Lines.—Annual Report.— The 1931 annual report of these lines, which includes figures for all companies except the International-Great Northern, shows net loss after interest and other charges of $1,122,422, as compared with — 172,456 } 7 — 186,554 Vol. 92, No. 18 net income of $674,950 in 1930. Selected items from the Income Statement follow: Increase or 1931 1930 Decrease Average Mileage Operated. . 1,832.95 1,816.70+ 16.25 RAILWAY OPERATING ° REVENUES. $13,435, 533 $18,819,492 —$5,383,959 Maintenance of way... 2,150,979 3,269,999 — 1,119,021 Maintenance of equip- : ment ... 2,269,679 3,082,688 — 813,009 Transporta- OM cscce 3,996, 464 5,180,903 — 1,184,439 TotaL OPEr- ATING Ex- ; PENSES ... 9,891,993 13,051,918 — 3,159,925 Operating eee 73.63 69.35 + 4.28 —_—_ NUE FROM OperaTions 3,543,541 5,767,574 — 2,224,034 Railway tax accruals .. 732,153 728,854 +- 3,299 Railway operating income .. 2,800,466 5,026,291 — 2,225,824 Hire of freight cars—Dr.. 910,312 1,048,691 —- 138,379 Joint facil- ity rents.. 317,359 303,313 + 14,046 Net Ratt- way OPER- ATING In- COME .... 1,426,290 3,410,005 — 1,983,715 Non-operat- ing income ] 16,585 130,851 — 14,266 Gross In- COME .... 1,542,875 3,540,856 — 1,997,981 Rent for leased roads ........ 312 — 312 Interest on funded debt 2,617,260 2,588,921 + 28,338 TOTAL DE- FROM GROSS ‘ INCOME .. 2,665,29 2,8 865,906 — 200,609 “NI 422 674, 950 — i 797, 372 Net INcOME "1,12 j S| un * Loss. HoBpoKEN MANUFACTURERS’ RAILROAD.— Acquired by Seatrain Lines—This com- pany’s stock, which was security for $l,- 250,000 of 6 per cent bonds of the Ho- boken Railroad & Terminal, has passed into the hands of Seatrain Lines, Inc., as a result of a foreclosure sale held by the Chase’ National Bank following default in interest on the bonds. Seatrain Lines, Inc., now operate between New Orleans and Havana in the transfer of loaded cars. President Brush of Seatrain Lines has announced that in acquiring the Ho- boken property the company proposes to make Hoboken its terminal for the han- dling of business between New York and points in the West Indies. A car handling terminal is to be established on the prop- erty. INTERNATIONAL-GREAT NoRTHERN.—Al- nual Report.—The 1931 annual report of this company shows net loss after in- terest and other charges of $393,872, as compared with net loss of $1,762,555 in 1930. Selected items from the Income Statement follow: Increase or 1931 1930 Decrease Average Mileage P Operated . 1,159.52 1,159.50 + 2 RAILWAY OPERATIN 2 Reveneas. "$17, 843,909 $15,072,346 +$2,771,563 Continued on next left-hand page 046 715 266 981 312 ,338 |,609 372 D.— om- $1,- Ho- sed <3 the t in nes, alls ded ines Ho- s to an- and ling rop- -An- t of . in 2, as 5 in some crease or crease April 30, 1932 RAILWAY AGE REVERSE GEAR . } ' - oe IF IT’S WortH RUNNING IT’S WORTHY OF AN ALCO GEAR Any existing locomotive capable of meeting present day traffic requirements is worthy of an Alco Power Reverse Gear. The Alco gear possesses every requisite for efficiency and economy. It is fast, powerful, accurate, easy to operate and interchangeable. It fully meets all the conditions imposed on freight, passenger and switching locomotives. Its simple and interchangeable construction eliminates expensive repair parts throughout a long service life. And the economy becomes most convincing when the low initial cost is noted. American Locomotive Company . 30 Church Street | New York N.Y 22 S| > ae 752 Increase 1931 1930 or Decrease Maintenance of way... 2,381,758 2,403,794 — 22,036 Maintenance of equip- ment 2,757,714 2,739,843 + 17,870 Transporta- . saeee 6,816,534 6,283,680 + 532,854 Tota, Oper- ATING Ex- PENSES ... 13,155,813 12,854,739 + 301,074 Operating GN ccses 73.73 85.29 — 11.56 Net Reve- NUE FROM OperaTiIons 4,688,096 2,217,607 + 2,470,489 Railway tax accruals .. 499,299 520,134 — 20,835 Railway operating income .. 4,182,206 1,686,586 + 2,495,621 Hire of freight cars—Dr.. 1,173,511 719,612 + 453,899 Joint facil- ity rents.. 89,883 91,391 — 1,508 Net Ratt- way OpeEr- aTinc In- COME . 2,407,683 727,327 + 1,680,356 Non-operat- ing income 145,446 410,412 — 264,966 Gross In- COME 2,553,129 1,137,739 + 1,415,390 Interest on funded debt 2,918,471 2,884,990 + 33,481 Tora. Dr- DUCTIONS FROM Gross Income .. 2,947,001 2,900,294 + 46,707 Net Loss... 393,872 1,762,555 + 1,368,683 Notre—lIncludes Austin Dam & Suburban Rail- way. Lonc Istanp.—Annual Report—The 1931 annual report of this company shows net income after interest and other charges of $5,101,325, as compared with net income of $6,017,335 in 1930. Selected items from the Income State- ment follow: Increase or , 1931 Decrease Average Mileage Oper- SOO at 86=3—6 S6».#«obeees RAILWAY OPERATING REVENUES ........ $36,036,402 —$3,560,032 Maintenance of way.. 3,312,283 — 1,183,311 Maintenance of equip- ment ..........6. 5,182,850 — 74,504 Transportation ...... 14,525,472 — 776,873 Toran OperaTinc Ex- x — : PENSES ..........- 23,958,429 — 2,147,496 Operating ratio...... 66.5 + 0.6 Net REVENUE FROM 4 : + OPERATIONS ...... 12,077,972 — 1,412,536 Railway tax accruals 2,478,012 — 975,357 Railway operating in- reer 9,582,293 — 443,436 Hire of Equipment— “Artie pain 610,483 —- 42,902 Joint facility rents— RRR eee 1,754,025 + 377,127 Net Rattway Operat- ING INCOME ...... 7,217,785 - 777,660 Non-operating income 627,129 -—- 248,199 Gross INCOME......... 7,844,914 — 1,025,859 Rent for leased roads ee 8 8=—s«s S«nwelees Interest on funded We .awebbesareesa 2,363,394 130,184 Totat DEDUCTIONS From Gross IncoME 2,743,590 — 109,848 Near Income.......<e- 5,101,325 — 916,010 LenicH Vauiey.—R. F. C. Loan.—The Interstate Commerce Commission on April 26 approved a loan of $1,500,000 to this company from the Reconstruction Finance Corporation to enable it to meet interest due May 1 on its general con- solidated mortgage bonds. The commis- RAILWAY AGE sion held that it should pledge as security $5,000,000 of general consolidated mort- gage bonds. The company had applied for the same amount also to the Railroad Credit Corporation but the latter had suggested that it obtain the money from the government, since it was in a position to meet the requirements of the commis- sion and the corporation as to security, without commitment as to the furnishing of the amount by the railroad corpora- tion, on the ground that the funds to be available to the railroad corporation will not be sufficient to meet all requirements. The Lehigh Valley also had $5,000,000 of bank loans coming due May 20 but did not ask in this application for amounts to cover any part of them. LouisvitteE & NASHVILLE.—Annual Re- port—The 1931 annual report of this company shows net income after interest and other charges of $1,039,946, as com- pared with net income of $6,606,082 in 1930. Selected items from the Income Statement follow: Increase 1931 1930 or Decrease RaILway OPERATING REVENUES $87,019,791 $112,440,985—$25,421,194 Tota. OPERATING EXPENSES Operating ratio 72,384,608 83.18 20,109,229 0.92 Net Reve- NUE FROM OPERATIONS 14,635,183 Railway tax accruals 19,947,148 — 5,311,965 5,485,518 6,233,951 — 748,433 Railway operating income Hire of freight ears (Cr.). Joint facil- ity rents.. 9,129,066 - 13,696,774 — 4,567.708 1,032,528 1,146,952 — 114,424 785,382 — 123,104 662,278 Non-operat- ing income 4,020,071 5,466,196 — 1,446,125 Gross INCOME... 13,149,137 19,162.971 6,013,834 Rent for leased roads Interest on funded debt 10,428,303 308,432 380,560 72,128 10,556,913 - Torat Depwuc- : TIONS FROM Gross IncoME... 12,109,191 Net Income 1,039,946 12,556,888 — 447,697 6,606,082 — 5,566,136 MostLe & Oxn10.—Anunual Report.—The 1931 annual report of this company shows net deficit after interest and other charges of $2,002,504, as compared with net deficit of $930,554 in 1930. Selected items from the Income Statement follow: Increase or 1931 1930 Decrease Average Mileage Operated . 1,152.50 1,157.41 — 0.42 RAILWAY OPERATING REvENUES $10,044,745 $14,029,114 —$3,984,369 Maintenance of way... 1,506,947 2,256,900 — 750,013 Maintenance of equip- ment : 2,004,972 2,704,327 — 699,355 Transporta- eee 4,339,777 5,449,675 1,109,898 Totat Oper- ATING Ex- PENSES 9,004,218 11,647,684 — 2,643,466 Operating ratio 89.64 6.61 Net REVE- NUE FROM April 30, 1932 Increase 1931 1930 or Decrease O PER A- TIONS . 1,040,527 2,381,430 — 1,340,903 Railway tax accruals 666,203 975,394 — 309,19) Railway oper- ating def- - eres 318,555 * 653,326 — 971,88) Hire of Equipment 401,087 442,880 — 41,793 Joint facility rents .... 289,574 303,142 — 13,568 Non-operat- ing income 110,943 139,543 — 28,600 Net Dericir 207,612 * 792,869 — 1,000,481 Interest on : funded re 1,448,175 1,386,647 + 61,528 TorTat De- DUCTIONS FROM Gross In- COME .... 1,794,892 1,723,423 + 71,469 Net Derrcir 2,002,504 930,554 + 1,071,950 * Income St, Louis SouTHwEsTERN.—Loans.— This company has applied to the Inter- state Commerce Commission for authority to execute three-year notes for $4,500,- 000 to the Chase National Bank of New York and the Mississippi Valley Trust Company in renewal of half of the short- term loans which mature on June 1, in ac- cordance with the condition imposed by the commission when it approved a loan of $18,000,000 to the railroad from the Reconstruction Finance Corporation. The latter amount includes half of the bank loans but only on condition that the other half be extended for three years, the life of the R. F. C. loan. The company also asked authority to execute a note for $750,000 to the Railroad Credit Corpora- tion. The bank loans are to be secured by pledge of $6,357,000 of general and re- funding bonds. SouTHERN Pactric.—R. F. C. Loan— This company has applied to the Inter- state Commerce Commission for au- thority to guarantee the loan of $18,- 000,000 from the Reconstruction Finance Corporation to the St. Louis Southwest- ern which the commission approved only on condition that it be guaranteed by the Southern Pacific. The company stated that as it now owns about 80 per cent of the stock of the Cotton Belt this was agreeable to it. TENNESSEE CENTRAL.—Aunnual Report —The 1931 annual report of this com- pany shows net deficit after interest and other charges of $20,009, as compared with net income of $127,756 in 1930. Se- lected items from the Income Statement follow: Increase 1931 1930 or Decrease Average Mileage . Operated ...... 295.72 295.95 — _ 0.23 Rattway OPpeErR- ATING REVENUVES$2,603,511 $3,064,838 —$461,327 Maintenance of rr 468,849 546,293 — 77,44 Maintenance of : equipment 412,401 468,326 — 55,925 Transportation. 965,826 1,081,941 — 116,115 TotaL OPpERAT- ING EXPENSES... 2,100,068 2,366,757 — 266,689 Operating ratio 80.66 77.22 + 3.44 Be) Bess Bibra —: Net _ REVENUE FROM OPERATIONS 503,443 598,081 194,638 Railway tax ac- s PU wcee'es 3 60,888 21,540 82,428 — Continued on next left-hand 909? April 30, 1932 RAILWAY ACE Nw w ase ease 903 1,19) »881 5793 600 481 1,528 1,469 1,950 IS iter- rity 500,- New rust lort- | ac- | by loan the The yank ther life also for ora- ured oe Fabemen ENGINE BOLT STEEL me HAS FATIGUE -FIGHTING QUALITIES ‘pag ¥ * AeA ON au- = Fatigue finally crumples the resistance of ordinary steel, making it unfit for ase engine bolts and other parts subject to shock and vibration. « Years ago the teed metallurgists of Republic Steel Corporation began their research for a steel that age would withstand repeated shocks; that would resist fatigue better than the old Belt steels but still retain the uniformity of composition that makes steel desired over wrought iron. « From years of patient development in the country's largest port ° ‘i ‘ pa metallurgical laboratories has come Agathon Engine Bolt Steel—a steel that pos- bow sesses the desired fatigue resistance, ease of machining and ductility. « So well Se- does this steel supply the demands for a better engine bolt ment ° ° ° : material that many large railroads have standardized on it. rease 2 crease : sap Toncan Iron Boiler Tubes, Pipe, Culverts, Rivets, Staybolt Iron « Climax Steel Staybolts « Upson ie 0.23 Plates, Staybolts, Tender Plates and Firebox Bolts and Nuts « Track Material, Maney ~ ES 61,327 Sheets « Sheets and Strip for special railroad Guard Rail Assemblies +« Enduro Stainless cae purposes » Agathon Alloy Steels for Locomotive Steel for dining car equipment, for refrig- sida Parts - Agathon Engine Bolt Steel - Nitralloy eration cars and for firebox sheets ayy Agathon Iron for pinsand bushings « Agathon Agathon Nickel Forging Steel (20-27 Carbon) 55,925 16,115 266,689 i L TEEL. PPe eae a Increase or ; 1931 1930 Decrease Railway operat- ing income..... 442,447 615,548 — 173,101 Hire of freight | re 178,681 204,328 — 25.647 Joint facility MY Sechacaea 5,652 5,491 +- 161 Non-operating imcome ...... 29,125 és Gross Income... 471,571 646,808 —— 175,237 Rent for leased OEE Rowe 06a 62,504 8 ert Tre Interest on funded debt... 228,412 230,662 — 2,250 TOTAL Depuc- TIONS FROM Gross BNGOME ccc ccss 491,581 519,052 — 27,471 Net Income... *20,009 127,756 — 147,765 * Deficit. Texas & Paciric—Annual Report— The 1931 annual report of this company shows net income after interest and other charges of $2,041,858, as compared with net income of $3,652,191 in 1930. Se- lected items from the Income Statement follow: Increase or 1931 1930 Decrease RAILWAY OPERATING Revenves.$30,007.959 $37 —$7 534,342 Maintenance of way... Maimtenance of equip- 3,647,693 5,638,322 — 1,990,630 ment . 4,954,847 6,226,466 — 1,271,619 Transporta- Tk eneee 9,519,389 12,005,451 — 2,486,063 Tora Ovrr- ATING Ex PENSES 20,614,631 26,421,279 — 5,806,648 Operating ee 68.70 70.38 — 1.68 Net Reve- NUE FROM OperRATIONS 9,393,329 11,121,023 — 1,727,694 Railway tax accruals .. 1.504.815 1,735,692 — 230,879 Railway operating “ income .. 7.879,608 9,374,023 —- 1,494,415 Hire of freight cars—Dr.. 2,028,260 2,250,118 — 221,856 Joint facil- ity rents.. 64,807 34,604 +- 30,203 Net Ratt- WAY OPrrR- ATING In- ; _ comm. .... §,876,317 7,235,687 — Non-operat- ing income 540,125 507,047 -+- 33.078 Gross In- COME 7,742,735 1,332,292 Interest on funded debt 4,238,555 918,577 319,978 TOTAL Dr- FROM Gross INCOME .. 4,308,585 4.090.543 +- 278,042 Net Income 2,041,858 3,652,191 — 1,610,334 Townsvie.—R. F, C. Loan.—This company has applied to the Interstate Commerce Commission and the Recon- struction Finance Corporation for a loan of $32,000. Average Prices of Stocks and of Bonds Last Last Apr. 26 week, year Average price of 20 repre- ds ® sentative railway stocks... 20453 e941 73.14 Average price of 20 repre- sentative railway bonds.. 61.02 60.88 91.29 Dividends Declared & Western.—Common, $2.50, quart- Norfolk erly, payable June 18 to holders of record May 31. RAILWAY AGE Railway Officers EXECUTIVE At a meeting of the board of direc- tors of the Reading Company on Thurs- day, April 28, Charles H. Ewing, vice- president, was elected president, to suc- ceed the late Agnew T. Dice. Edgar D. Hilleary, vice-president in charge of freight traffic, was elected vice-president in charge of traffic, and Edward W. Scheer, general manager of the Balti- more & Ohio, Eastern lines, was elected vice-president in charge of operation and maintenance. FINANCIAL, LEGAL AND ACCOUNTING William P. Terry, assistant secretary of the Richmond, Fredericksburg & Po- tomac, has been appointed secretary succeeding Norman Call, who has been elected president of that road. The posi- tions of vice-president and assistant sec- retary have been abolished. OPERATING A. E. Sweet, in addition to his pres- ent duties as assistant general manager, Eastern district, of the Southern Pacific with headquarters at El Paso, Tex., has been temporarily appointed acting assist- ant general manager of the Southern dis- trict, with headquarters at Los Angeles, for business pertaining to the Southern district, succeeding T. H. Williams, de- ceased, N. A. Ryan, superintendent of the Mil- waukee division of the Chicago, Mil- waukee, St. Paul & Pacific, with head- quarters at Milwaukee, Wis., has been promoted to assistant general manager. with headquarters at Chicago, to fill a position that has been vacant since the death of E. F. Rummel on November 17, 1931. J. H. Valentine, superintendent of the Terre Haute division, at Terre Haute, Ind., has been transferred to Milwaukée. to succeed Mr. Rvan, while C. E. Ellictt, superintendent of terminals at Milwaukee, has been transferred to Terre Haute to replace Mr. Valentine. TRAFFIC Harry E. Rilley, who has been pro- moted to general freight agent on the Chicago, Rock Island & Pacific, as noted in the Railway Age for April 16, was born on December 4, 1884, at Chi- cago, and obtained a public school and business college education at that place. He entered railway service at the age of 15 with the Grgnd. Trunk and ogcupied various positis on this roage until February 1, 1903, when he became con- nected with the Rock Island as a rate clerk at Chicago. During the following 19 years Mr. Rilley was advanced through the positions of assistant chief Vol. 92, No. 18 ght 0g clerk, chief clerk in the general fre; department, chief clerk to the frei trafic manager and chief clerk to the vice-president and freight traffic man- ager, all at Chicago. On November {. 1922, he was further promoted to assist- Harry E. Rilley ant general freight agent at Little Rock, Ark., which position he held until his recent appointment as general freight agent at that point. R. W. Morris has been appointed as- sistant freight traffic manager of the Seaboard Air Line, with headquarters at Birmingham, Ala., succeeding E. T. Willcox, deceased. ENGINEERING AND SIGNALING E. F. Robinson, chief engineer of the Buffalo, Rochester & Pittsburgh, with headquarters at Rochester, N. Y., has been appointed assistant to the chief en- gineer of the Baltimore & Ohio, with the same headquarters, incident to the recent absorption of the B. R. & P. by the B. & O. as the Buffalo-Rochester district of the latter road. SPECIAL George A. Shea, superintendent of in- vestigation of the Canadian National, has been appointed director of investigation, succeeding H. J. Page, retired. Mr. Shea has been connected with the investiga- tion department of that road since 1925. MOTOR TRANSPORT R. B. Wren, district agent of the Pa- cific Greyhound Lines. Inc.. at Phoenix. Ariz., has been appointed district traffi manager, with headquarters at Los An- geles, Cal., G. H. Peirce, transferred. succeeding + OBITUARY John B. Carothers, superintendent of the Ohio division of the Baltimore & Ohio, with headquarters at Chillicothe. Continued on next left-hand pag? April 30, 1932 RAILWAY AGE TRUCKS» that Speed Train Operation ae New ADVANTAGES AND New ECONOMIES Nanionat TYPE B TRUCKS are designed and built to meet modern operating conditions. Their simplified design permits the elimination of unnecessary yf the with , has ef en- “ df . P with ~ . i Boe os are quickly and easily made. o the ‘ ge 7] P. by hester weight and parts. With these advantages they have also greatly increased strength and spring capacity— wheel changes Each step in the design and manufacture of these trucks is under the control of our own organization. This unified control results in important economies so that the National Type B truck with its many advantages may be obtained without any premium in cost. Details gladly furnished on request. NATIONAL MALLEABLE AND STEEL CASTINGS CO. General Offices: CLEVELAND, OHIO 1 : Sales Offices: New York, Philadelphia, Washington, Chicago, St. Louis, San Francisco Works: Cleveland, Chicago, Indianapolis, Sharon, Pa., Melrose Park, III. he Pa- hoenix. traffic TYPE © — T RUC KS llicothe. nd page 754 RAILWAY AGE Ohio, died on April 21 after an illness on the Canadian National, with head- quarters at Stratford, Ont., died sud- of three weeks. , 3 142 a enly on April 12. E. W. Hopp, master mechanic of the (“"" DP Hastings & Dakota division of the Chi- cago, Milwaukee, St. Paul & Pacific, at Aberdeen, S. D., died on March 30, as the result of injuries received in an auto- mobile accident. William E. Weegar, superintendent born in Stormont County, Ont., in 1870, and commenced his railroad career as freight brakeman with the Grand Trunk _ been issued by the Underground Steam at Montreal, in 1888. appointed superintendent of the Allan- which describes certain of the work dale division of the C. N. R., and in 1929 he was transferred to Stratford a- April 30, 1932 superintendent, which until his death. Mr. Weegar was — UNDERGROUND STEAM CONSTRUCTION. A well-illustrated booklet of 16-pages has pe sition he hy Id In 1923 he was Construction Company, Boston, Mass. this company in the installation of steam distribution systems. nnual Reports Fifteenth Annual Report of Missouri Pacific Railroad Company-Year Ended December 31, 1931 Str. Louts, Mo., March 31, 1932. PO THE STOCKHOLDERS: There is submitted herewith report of the operations and affairs of the Company as of December 31, 1931. Corporate Income Statement For tuk Year Exnpepo Decemper 31, 1931, Compared wirn tHE PReEviI0US 1931 1930 Decrease Railway Operating Revenues $95,268,192.87 $120,187,689.14 $24,919.496.27 Railway Operating Expenses 70,540,152.53 89,009,546.85 18,469,394.32 Net Revenue from Railway 7 DE: 4esicons seers $24.728,040.34 $ 31,178,142.29 $ 6.450,101.95 Railway Taxes and Uncol- lectible Railway Revenue $ 3,771,145.61 S$ 5.462.654.41 $ 1,691,508.80 Railway Operating Income. $20,956,894.73 $ 25,715,487.88 $ 4, 758, 593. 15 Other Operating Income.. 2,026,738.52 2167, 382.36 140,643.84 Total Operating Income.... 27,882,870.24 $ 4,899,236.99 Deductions from Operating PUNE eo c4 ut keene eaneees 7,092,834.27 918,658.99 Net Railway Operating In- NE ae nad sumemee en yees $16,809,457.97 $ 20,790,035.97 $ 3,980,578.00 Non-Operating Income..... 5,239,064.49 4,952,458.58 * 286,005.91 CE: TERS 6 vce ccéceves $22,048, 522.46 $ 25,742,494.55 $ 3,693,972.09 Deductions from Gross In- BE Cc nebachwrkeknes eae 20,652,768.92 19,028.883.76 * 1,623,885.16 Net Income transferred to 7 i ani a Profit and Loss.......... $ 1,395,753.54 $ 6,713,610.79 $ 5,317,857.25 * Increase. Dividends Three quarterly dividends of 14% each, aggregating 334%, or $2,659,159.14 were declared on the PREFERRED STOCK during the year. Income A brief comparative statement of the Corporate Income is shown above, subdivided to indicate the “Net Railway Oper- ating Income” defined in the Transportation Act of 1920. Operations (Compared with Previous Year) The results from operations for the year show decreases in volume of freight traffic handled, and in gross and net income, attributable to the continued depression in business. Total Railway Operating Revenues for the year were $95,- 268,192.87, as compared with $120,187,689.14 in the previous year, a decrease of $24.919,496.27, or 20.73%. The decrease in Freight Revenue was $20,069,545.14, or 20.11%. There were decreases in all groups of commodities, the principal decreases being Products of Mines, $5,080,976.20. Products of Forests, $3,028,997.11, and Manufactures and Mis- cellaneous, $8,025,443.43. The principal decreases in Products of Mines were Bituminous Coal, $2,327,599.17, Ores and Con- centrates, $650,662.37, Gravel and Sand, $678,180.64, Stone, broken, ground, or crushed, $369,478.19, Crude Petroleum, $555, 021.91. The principal decrease in Products of Forests was Lumber, Shingles, and Lath, $1,657,290.46. The decreases in Manufactures and Miscellaneous were very generally dis- tributed, the principal items being Petroleum Oils, Fuel, Road [ADVERTISEMENT] and Petroieum Residual Oils, $1,173,304.76, lron and Steel, Pipes and Fittings, Nails and Wire, $966,918.94, Automobiles and Auto Trucks, $1,376,401.52, and Manufacturers and Miscel- laneous, $1,409,881.11. The Total Number of Tons of Revenue Freight Handled de- creased 19.39%, and the Ton Miles decreased 20.76%. The Average Revenue Per Ton Mile was 9.71 mills, as compared with 9.63 mills in the previous year. The Passenger Revenue icr the Current Year was $7,131,- 655.86, as compared with $10,210,815.19, a decrease of 30.16% Passengers Carried shows a decrease of 34.04%, and the Pas. sengers Carried One Mile, a decrease of 27.93%. The increase in Average Distance Each Passenger Carried was 10.67 miles, or 9.28%, and the Average Revenue Per Passenger Per mile was $0.0300, compared with $0.0309 last year. Total Railway Operating Expenses decreased $18,469,394.32 or 20.75%. Expenditures for Maintenance of Way decreased $6,210,- 936.30, Maintenance of Equipment Expenditures decreased $4,556,021.32, and Transportation Expenses decreased $7,419,- 186.79. Hire of freight car charges show a decrease of $778,446.34 under the previous year, due principally to a decrease of $430,- 214.67 in the payments for use of privately owned cars by reason of a decrease in the volume of traffic handled in such cars and to an increase in per diem credit, amount $186,603.75. The average miles per car per day for 1931 was 37.73, com- pared with 42.73 in 1930, 41.91 in 1929, 40.63 in 1928, 38.80 in 1927, 39.66 in 1926, 37.22 in 1925, 33.02 in 1924, and 26.61 in 1923. Federal Valuation The Intestate Commerce Commission has not rendered its de- cision as to final value as of June 30th, 1918, following the formal hearing on protest to the tentative valuation con- cluded April 3rd, 1928. Attention has been directed during the year to the work of bringing valuations to date. Reports required under formal orders of the Commission, issued in 1929, have been completed and filed with the Commission covering the period July Ist, 1918 to December 3lst, 1927. In the early part of 1931 the Commission issued further orders in connection with bringing valuations to date covering the years 1928, 1929 and 1930. The report for 1928 was nearly complete at the close of the year. Pension System One hundred seventy-four employes were retired in 1931 and ninety-three pensioned employes died during the year. Since the inauguration of the Pension System, July 1, 1917, one thou- sand five hundred forty-nine employes have been retired and four pensioners have returned to service. The total number of deaths, five hundred sixty-five. At the close of the year, nine hundred eighty employes were receiving pensions, averag- ing $55.90 per month, involving a monthly expenditure oi $54,793.45. Capital Stock No changes have been made in the Capital Stock during the year. © 4K, di 74 le iv th un y if op co it an or Te ed D - 34 (),- by ich 72. m- de- the On- ork mal ted Ist, ther ring arly and ince hou- and nber year, rag- iring Vol. 92, No. 18 Funded Debt Long Term Debt outstanding in the hands of the public in- creased $14,914,480. First and Refunding Mortgage 5% Bonds, Series I, to the amount of $61,200,000, were issued during the year, and sold. Twenty Year 54% Secured Serial Gold Bonds, amounting to $506,000, matured and were paid during the year, and $8,000 of bonds of the same issue were purchased and placed in the treasury. Plaza-Olive Building First Mortgage 6% Gold Bonds, amounting to $20,000, matured and were paid during the year. General Consolidated Railway and Land Grant Mortgage 5% Bonds, St. Louis Iron Mountain and Southern Railway Com- pany, amounting to $42,874,000, and unexchanged Scrip, amount- ing to $120, matured April 1, 1931 and were paid. Equipment Trust Obligations, amounting to $2,877,400, ma- tured and were paid during the year. On January 29, 1932, authority was granted by the Interstate Commerce Commission to issue and to pledge and repledge from time to time as collateral security for short term notes, $30,000,000 principal amount Missouri Pacific R. R. Co. First and Refunding Mortgage 5% Gold Bonds, Series I. Profit and Loss There was charged to Profit and Loss Account, during the year $26,109,517.19, covering adjustment of balances in the Equipment Depreciation Reserves as of December 31, 1930, to provide for past accrued depreciation. This adjustment was made with the approval of the Interstate Commerce Com- mission. New Lines No new lines were constructed during the year. The dis- continuance of trackage rights over the line of the Kansas City Southern Railway, between Asbury, Mo. and Pittsburg, Kas., resulted in a decrease of 11.46 miles in the operated mile- age. The net decrease in the owned and operated mileage, in- cluding this and other changes of minor importance, was 14.27 miles. In December, 1931, your Company acquired the Capital Stock of the Doniphan, Kenssett & Searcy Railway, extending from Kensett, Ark., to Searcy, Ark., a distance of 4 miles, and from Kensett, Ark., to Doniphan, Ark., a distance of 2 miles. Lease of Subsidiary Companies On June 2, 1930, the Interstate Commerce Commission con- ditionally approved the application made under Finance Docket 7470, to acquire control of various subsidiary companies by lease. On May 4, 1931, after reargument, the Commission imposed iurther conditions regarding rights and obligations of local communities, and with respect to the maintenance of existing through routes of ‘traffic. The effect of these modifications of our application is now under consideration. RAILWAY AGE Missouri Pacific Transportation Company Franchises were acquired during the year which extended Motor Coach operations in daily service to approximately 3,956 miles, the principal acquisition being the privilege to oper- ate between Palestine and Houston, Texas. Pick up and delivery service of Less Carload Freight was discontinued October’ 31, 1931 in Arkansas, the Missouri Pacific Railroad now performing this service. Road and Equipment The comprehensive program of revising eastward grades to a maximum of 0.7% in the territory between Hoisington and Osawatomie which was started in 1929 and carried torward without interruption, was completed during the year with the revision of grades in the 35 miles between Delavan and Gypsum City. Signal and safety improvements made during the year included automatic block signals on 63.9 miles of road, making a total of 2,011.93 miles for the system; three interlocking plants; seven switches equipped for remote control operation; seven spring switch installations and twenty-two highway grad¢ crossings protected by modern crossing signals. Under a five year program, adopted this year, 5,150 units of obsolete equipment were dismantled and retired from service. A summary of the details of charges to Road and Equipment follows: New Lines Constructed, Completion of Prior Years’ NN a Src Aelia o ar es oy es Woe guns ata ace Oasis hes tre wna pie $ 59,995.96 RL IRMINIES OMNI Facer ctgrgiy- a) ews G. 4.8 wig eR pw ae ene 609,694.33 ee eer rer re rem BS, Me - URN sos swe ory wrese re stan ac wel 325,113.59 6,035,341.92 RN thats ace cate ag etd are atid inca aaeee $ 265,621.40 _ TN co ones ororoiorera wise ceinceie os 6,244,009.04 Cr. 5,978,387.64 Assets and Liabilities not Appraised, June 1, 1917...... C1 172,502.99 Total Charges to Road and Equipment.............. $ 554,141.58 By order of the Board of Directors, L. W. BALDWIN, President. Profit and Loss, December 31, 1931 Credit Balance, December 31, 1930........ Credit Balance Transferred from Income MINN wiocct cic cracattranetsisi aks :4sauiato as68 ke 1,395,753.54 ie ee ee a 1,205.11 Unrefundable Overcharges.............. 3,466.34 RN aac ng fs as ping g Op gos elo 79,249.13 Miscellaneous ‘Credits. ...o..scccsccccecee 31,716.22 $62,466, 6€ Less: Dividend Appropriations of Surplus...... $ 2,659,159.14 Surplus Appropriated for Investment in go Bey: re re 79,249.13 Debt Discount Extinguished through Sur- ON SE EE re eee 4,739,356.09 Loss om Betwed WMoad. cnc. ccc cess 279,446.22 Delayed Income Debits................ 26,109,517.19 MisceligneGus PGW... cess eesees 148,853.40 34,033,581.17 Credit Balance, December 31, 1931........ $28,433,088.56 The Baltimore and Ohio Railroad Company OFFICE OF THF. PRESIDENT Baltimore, Md., April 1, 1932. To the Stockholders of The Baltimore and Ohio Raiitroad Company: The President and Directors submit herewith a statement of operations for the year 1931, including condensed Income Ac- count compared with the preceding year, and Balance Sheet as of December 31, with certain other general information which itis thought will be of interest. The Annual Report in the customary form will be prepared * and forwarded later to those stockholders who have advised or may advise the Secretary of the Company of their desire to receive it. The net income for the year, after the payment of interest, rentals, taxes and other fixed charges, was $3,802,978. This is a decrease of $17,620,792, compared with 1930. After paying the 4% dividend on the Preferred Stock, there remained $1,448,450, equal to fifty-seven cents per share on the amount of common stock outstanding during the year. Divi- ends aggregating 314% were declared on the common stock, and amounted to $8,970,341, causing a draft on Surplus of $7,521,891, which, with other adjustments in that account re- sulted in a decrease, compared with December 31, 1930, of 87,875,751. The total accumulated surplus of your Company, as adjusted, on December 31, 1931, was $101,985,578. [ADVERTISEMENT] The recession of business in general during the year was more pronounced than during the preceding year, with consequent reduced earnings for 1931 as compared with 1930. As shown in the Income Account, the operating revenues decreased 23.32%, while operating expenses were reduced 21.68%, leaving a net corporate income of $3,802,978, compared with $21,423,770 the preceding year. The property was maintained in condition to assure safe and adequate service. The continued decline in passenger traffic is a matter of deep concern, and has been the subject of study and effort, first, to retain and recover the traffic where possible through improved service, and, second, to offset the loss where practicable, through the elimination of train and car mileage. With the extension of improved highways, in many instances paralleling the steam road, it has been possible, with the approval of the governmental bodies, to materially reduce the branch line mileage, and also to curtail main line mileage. Even so, it has not been possible, with due regard to public convenience, to eliminate all of the unremunerative train mileage. For the year, the passenger train miles operated were 15,742,157 compared with 17, 910,381 in the preceding year, or a decrease of 12.11%. To sustain and invite long-distance passenger traffic, experi- ments were begun a few years ago to develop an even greater degree of comfort for patrons, and it was the privilege of your Company to install and operate, beginning May 24, 1931, the first completely air-conditioned train in the history of railroad- ing. This train, known as the “Columbian,” operates daily be- tween Washington, D. C., and Jersey City, New Jersey. The innovation was well received by the traveling public, and plans were perfected whereby a second train was equipped and placed in operation between Washington, D. C., and Jersey City, later in the season. The patronage on these trains, particularly dur- ing the summer months, has been gratifying, and with the ex- THE BALTIMORE AND OHIO RAILROAD COMPANY Income Account Increase or Decrease 1931 1930 Amount % Revenue from freight transportation ....... $131,977,796 $173,706,337 $*41,728,541 *24.02 Revenue from passenger transportation ........ 14,801,546 18,567,622 *3,766,076 *20.28 Revenue from mail, ex- press and other trans- portation service .... 11,695,286 14,386,477 *2,691,191 18.71 Total Railway Op- erating Revenues ..$158,474,628 $206,660,436 $*48,185,808 23.32 Maintenance of Way and - beacnnnd oii Cr ree $13,524,048 $22,442,383 $*8,918,335 *39.74 Maintenance of Equip- MEN 2... ceesccccees 31,542,648 41,693,161 *10.150,513 *24.35 YC eee 5,887,545 6,269,933 *382.388 *6.10 Transportation --. 59,443,637 72,500,106 *13.056,469 *18.01 General ks tawaweueeee 7,790,757 8,145,895 *355,138 *4.36 Miscellaneous 1,755,805 2,090,897 *335,092 *16.03 Total Railway Operat- ing Expenses ...... $119,944,440 $153,142,375 $*33,197,935 *21.68 Transportation Ratio .... 37.51% 35.08% : Oo Total Operating Ratio .. 75.69% 74.10% Net Revenue from Rail- : way Operations ...... $38,530,188 $53,518,061 $*14,987,873 *28.01 Taxes ee ne $8,893,647 $10,326,670 $*1,433,023 13.88 aepoment, Joint Facility ee Sk Rertdeen ve 3,405,690 2,942,778 462,912 15.73 Total Charges to Net © wi PE ae cesaceces $12,299,337 $13,269,448 $*970,111 "7.23 Net Railway Operating _ : : OO Income, as defined in Transportation Act of SE «shes sgetvaawens $26,230,851 $40,248,613 $*14,017,762 *34.83 Other Income — Rents, Dividends on Stock and Interest on Bonds SE. otibeeeb eucaroes 9,118,957 11,243,924 *2,124,967 *18.90 Total Income from all en ee $35,349,808 $51,492,537 $*16,142,729 31.35 Deductions for Interest “i eee $30,263,557 $29,155,865 $1,107,692 3.80 All Other Charges against Sere 1,283,273 912,902 370,371 40.57 Total Deductions from a eee $31,546,830 $30,068,767 $1,478,063 4.92 Balance of Income avail- able for Dividends and other Corporate purposes $3,802,978 $21,423,770 $*17,620,792 *82.25 * Decrease. Balance Sheet—December 31, 1931 ASSETS Investment in Property used in Transportation Service .... $923,661,086 Investment in Separately Operated Companies, Miscellaneous 2 snc pened esecdebeesanaewenecen 123,753,509 Investment in Other Companies ..........cccccccccccccece 90,662,199 PE PE Ge xicncddvctaees einaawrereneweee $1,138,076,794 I aa a a aan dv bs bia eS en RLe Na 42,040,956 EE so cape en eibhee cress ewkesDaeeneneeen 6,018,796 0 ee a ee re ae .$1,186,136,546 LIABILITIES ee Se NO ig. ca seue Perse sseenueeesaaws $315,158,510 DE Vigtacudareeseoeewedssoune escheat $58,863,162 CE. Kiet noche tected et te SCMRRRSK EN RE EES 256,295,348 Oe Sk cl wev tee eednseeeereewee eres 3,355,721 es octets ens eassaeanben ebememmneese™ 600,159,996 ES TT $539,407,246 NE COUN oho ncccvecvsiecenes 57,044,800 ree 3,707,950 I TO 0 ee ee wilaaee Oma ee 64,894,637 Liability for Provident Funds and Other Deferred Items.... 11,135,924 Accrued Depreciation—Equipment ............eseeeeeeees 79,700,506 Reserve for Taxes, Insurance, etc. .......ccccccccccccess 9,745,674 ER OG er rer re eet ee, ee ee eee 101,985,578 EE BG6Oeknestserbrunns dean eseweneaveesaneeeabeokown $1,186,136,546 [ADVERTISEMENT] 756 RAILWAY AGE April 30, 1932 perience gained and further study it is contemplated to improve and expand this service. The railroads of the country, realizing the serious situation confronting them, submitted an application to the Interstate Commerce Commission in June 1931, for a general increase of 15% in freight charges, which, after extended hearings in the principal regions of the United States, was denied. The Com- mission, however, granted the roads authority, as an emergency measure, to make increase in certain rates, effective January 4, 1932, which it is estimated may cause an increase of roundly 3%4% in the freight revenues of your Company. In accordance with a suggestion contained in the order of the Commission approving this rate increase, the Carriers of the country en- tered into what is known as the “Marshalling and Distributing Plan,” under which the amounts realized from the rates so increased will be paid to the Railroad Credit Corporation and used as a fund for loans to carriers failing to earn their fixed charges, and to prevent default. As a result of negotiations between a Committee of Railway Presidents and employees of the participating railroads, repre- sented by the Chief Executives of the respective organizations of employees of the railroads, the employees so represented agreed to a ten per cent deduction in compensation, as of Feb- ruary 1, 1932, the basic rates to remain undisturbed. The agree- ment to terminate automatically January 31, 1933. This volun- tary action of the employees, through their representatives, will be most helpful to your Company in meeting the conditions brought about by the prolonged period of depression, and afford opportunity for a sustained and possibly more liberal main- tenance program, with increased employment. During the year there was an increase in investment in road and equipment of $5,148,778. The total investments of your Company increased $12,915,369 while there was a net decrease in current and deferred assets of $8,911,958. Through the payment of maturing obligations, funded debt was decreased by $7,464,000 and loans and bills payable and current liabilities increased $14,740,425 or a net increase in obligations outstanding of $7,276,425. The Interstate Commerce Commission, on November 19, 1931, granted your Company authority to operate the Buffalo, Roch- ester and Pittsburgh Railway and the Buffalo and Susquehanna Railroad; therefore, effective January 1,:1932, these two prop- erties will be operated as constitutent parts of the system. The increase in the investment in these companies for the year was $317,715. As stated in the annual report for the year 1930, your Com- pany, late in that year, acquired the property of the Chicago and Alton Railroad at foreclosure sale. A new company, known as The Alton Railroad Company, was organized and, with the approval of the Interstate Commerce Commission, took over the ownership and operation of the property, effective July 19, 1931, and your Company acquired all the capital stock of the new Company, at a total cost to your Company of $25,396,151, reflecting an increase of $2,675,288 in the investment during the year. The Company also expended $1,508,050 in the acquisition of guaranteed stock of railroads leased in per- petuity to The Alton Railroad Company. During the year the Company added to its holdings of Read- ing Company stock by the purchase of 1,600 shares of First Preferred Stock, 1,800 shares of Second Preferred Stock and 7,300 shares of Common Stock, at an aggregate cost of $775,069. In addition the New York Transit and Terminal Company, a wholly owned subsidiary, acquired 800 shares of First Preferred Stock, 6,500 shares of Second Preferred Stock and 41,600 shares of Common Stock of Reading Company, at a total cost ot $2,549,319. Including these purchases your Company now owns and controls 233,665 shares of First Preferred Stock, 339,100 shares of Second Preferred Stock and 597,600 shares of Com- mon Stock of the Reading Company, a total of 1,170,365 shares or 41.81 per cent of the entire issue, costing $70,967,069. In view of the continuing decrease in traffic, and in order to conserve cash against maturing obligations, it has seemed wise to your Directors to suspend dividend payments on both the Preferred and Common shares of your Company. ; While traffic continues to show a decrease under that of the preceding year, since January 1932, there has been no further decline in the trend of traffic, and through added economies, every effort is being made to overcome, on your property, the effects of the conditions generally prevailing. Furthermore, as the anticipated beneficial results of the constructive measures taken by the Government, in an effort to stabilize the financial structure of the country, become more widely felt, business should improve and railroad traffic return to more normal con- ditions. ; The interest and assistance of the stockholders in securing traffic, which has been manifest in the past, has been most helpful and of mutual benefit, and your co-operation in this respect is more urgently needed now than ever before, and 15, therefore, most earnestly solicited. DanieEL Wuarp, President. — oe ie Ee a t e ? A e | ed Csm 0OO Bal rey dey Ted Int Wi of Sta Vol ad, ok ive ck ent the eT - ad- irst and 69. y, a ‘red ures of wns 100 om- ares T to wise the the ‘ther nies, , the e, as sures ncial iness con- uring most l this nd 1S, ent. Vol. 92, No. 18 RAILWAY ACE 757 Union Pacific Railroad Company—Thirty-Fifth Annual Report—Year Ended December 31, 1931 Jo THE STOCKHOLDERS OF UNION PactFic RAILROAD COMPANY: The Board of Directors submits the following report of the operations and affairs of the Union Pacific Railroad Company for the calendar year ended December 31, 1931, including the Oregon Short Line Railroad Company, whose entire capital stock is owned by the Union Pacific Railroad Company, the Oregon-Washington Railroad & Navigation Company, whose entire capital stock (except fifteen qualifying shares held by Directors) is owned by the Oregon Short Line Railroad Com- pany, and the Los Angeles & Salt Lake Railroad Company, whose entire capital stock is owned, one half each, by the Operated Mileage at Close of Year I A Ns gare grace Pern Mi ie witay diac orca) RPA! Se aNaTere-a ble we bela ew Transportation Operations ren MUNN ss Slay ava, a cuaiore tas tarehereCovale aiesa fe Cou RIN oh aie whee ral Operating expenses COSHH OCEHEHSHSHEHOHOHEHHS OSTEO SEH EHEC EHEE ESOS CEES EHO HEE HOSE HOHE HED ELEC? NN NNER, BNI oo: 05:6 sc'sics.csincsuaulecavasadcreienden soos Rents from use of joint tracks, yards, and terminal facilities............... Hire of equipment—debit balance Net Income from Transportation Operations Income from Investments and Sources other than Transportation 7” Operations Dividends on stocks owned Interest on bonds, notes, and equipment trust certificates owned Interest on loans and open accounts—balance Rents from lease of road Miscellaneous rents Miscellaneous income Fixed and Other Charges ee ee Rents for use of joint tracks, yards, and terminal facilities................. Union Pacific Railroad Company and the Oregon Short Line Railroad Company. For convenience, the four companies are designated by the term “Union Paciric SYSTEM.” INCOME The operated mileage at close of year and income for th calendar year 1931, compared with 1930, after excluding all off- setting accounts between the Union Pacific Railroad Co., Oregon Short Line Ratlroad Co., Oregon-Washington Railroad & Navigation Co., and Los Angeles & Salt Lake Railroad Co., were as follows: Calendar Year Calendar Year 1931 1930 INCREASE DECREASE 9,841.09 9,841.08 ‘01 1,561.35 1559.50 1.85 4137.87 4090.18 47.69 15,540.31 15,490.76 49.55 $154,568,410.60 $189,672,612.04 sw. eee $35,104,201.44 109,951,393.82 131,154,849.68 ........ 21,203,455.81 $44,617,016.78 $58,517,762.36 = ........ $13,900,745.58 12,181.907.71 S00eerae tis... 2'359.979.71 14,073.14 7'862.69 $6,210.45 $32,421,035.93 $43,468,012.25 «eee $11,046,976.32 1.692.860. 26 1,748,789.17 «........ 55,928.91 $34.113,896.19 $45,216,801.42 see es ee $11,102,905.23 $7,285,718.10 $7,593,045.52 enn $307,327.42 27125,746.91 sone |lCw:Ci*‘i«wt“ 200,286.92 $9,411,465.01 $9,919,079.35 aca Nok 614.3 $24,702,431.18 $35,297,722.07 —......... $10,595,290.89 $10,823,023.20 $12,579,740.61 wee eee $1,756,71 5.837.941.45 6,042,382.24 ..... 204.440.7 175,666.72 296,576.56 ........ 120,909.84 120035.92 120,275.34 ........ 239.42 580,766.83 613,393.81 ........ 32,626.98 134,598.51 185,384.63 a iid 50,786.12 17.672.032.63 $19.837,753.19 inn ~ $2,165,720.56 $55,135.475.26 PRONE Gi MIE RUE os 010.6. clc a nace ius sauces en saasaRdaGedewadieswnaews $15,136,201.82 SUS COR FISTS 8 nssncv aves $124,511.33 Miscellaneous NN oar fcg ae hg seco, ms A 6: ica Bik, ween TR ena ard. wes bboy cee Saag Winer ORE Ole 14,674.59 7,678.98 $6,995.61 NINN RNIN 5c Svas5b p03 8.0 ha DRAW wes ie Phra bask RIG Pada iD a larételat sels 1,166,275.32 1,131,077.53 35,197.79 I sis oa hioshcateamaenedyacncoan ond iecadiviainaakeicdetliamneddaciaxe $16,317,151.73 $16,399,469.66 ie $82,317.93 Net Income from All Sources... .. 2... 2... cccieccccccccccccccececceccececce $26,057 312.08 $38,736,005.60 ilorerer sie $12,678,693.52 ” DISPOSITION OF NET INCOME 7 Dividends on Stock of Union Pacific Railroad Co.: Preferred stock: E per cent paid Aoril 1, 1931 ......cc ccc ces cnceeaseceses $1,990,862.00 2 Wee Cle hee APIO eee 1, BGS1 ois. ko ik ov ccewsecswnivaer 1,990,862.00 $3,981.724.00 $3,981.724.00 Common stock: — At - a 2% per cemt peil Aoril 1, 1931... 60... cic ccc caeweeseced $5,557,275.00 are er GORt Pee Bee Ay, E980. 6 se cesiesis oes vewwasies anise 5,557,275.00 2% per cent paid October 1, 1931... cise cc ceccsecwcesee 5,557,275.00 2% per cent payable January 2, 1932...........cccccccee 5.557,275.00 22,229,100.00 22,229,160.00 Secs icraa $60.00 Es CN tire 3 ios easing cue o S:4.o ee eeelnaee ewe awn Gee e ee $26.210,824.00 $26,210,884.00 $60.00 Balance, Transferred to Profit and Loss.............cceccecececeeeeeeee * Dehit. The decrease of $27,480,720.83 or 18.1% in “Freight Revenue” was due to a decrease of 17.9 per cent in net ton-miles of revenue freight carried, resulting principally from the general depression in practically all lines of business, and to a decrease of 5 per cent in average revenue per ton-mile occasioned by reduction in rates on grain and grain products ordered by the Interstate Commerce Commission effective August 1, 1931. With a few exceptions there were decreases in the movement of all commodities, the principal exceptions from a revenue standpoint being potatoes and oranges, which moved in greater Volume because of a large hold-over from the 1930 potato crop in Idaho and a better crop of oranges in California—the ton- ee *3153,511.92 $12,525,121.60 $12,678,633.52 nage handled is shown by commodities. Crops of grain in Nebraska, Wyoming, Colorado and Idaho and of deciduous fruits and vegetables in Intermountain and Pacific Coast States were smaller and prices of agricultural products were generally lower. The decrease of $5,099,983.30 or 24.1% in “Passenger Reve- nue” was due to a decrease of 17 per cent in revenue passengers carried one mile and of 8.3 per cent in average revenue per pas- senger mile. The decrease in revenue passengers carried on mile was occasioned principally by a decrease in general travel on regular trains and in summer vacation travel to National Parks because of the depression, and by the continued diversion [ADVERIISEMENT] Investments : Se ee LEN bb nebipader sda cedeesdeeewdcwwaterss Less: Receipts from improvement and equipment fund. Appropriations from income and “ae prior to July 2 1, 1907, credited to this account. ? eA es Total RAILWAY AGE (Excluding all offsetting securities and accounts between the Union Pacific Railroad Co. Oregon-Washington Railroad & Navigation Co., December 31, 1931 $925,569,583.78 $23,823,091.13 13,310,236.52 $37,133,327.65 and Los Argeles & General Balance Sheet—Assets December 31, 193 $920,613,595.19 $23,823,091.13 13,310,236.52 $37,133,327.65 ~ §88,436,256.13 $883,480,267.54 $455,710.62 2,348,282.11 $2,803,992.73 $358,320.17 2,416,296.47 ~ $2 774,616.64 $22,611,361.53 19,388,316.94 19,079,087.60 $61,078,766.07 $22,325,141.53 21,691,522.13 21,932,117.40 $65,948,781. 06 $90,843,611.73 78,471,139.11 $169,314,750.84 $95,840,417.27 71,868,252.26 $167,708,669.53 INCREASE $4, 955,988.59 $4,955,988.59. $97,390.45 $29,376.09 $286,220.00 $6,602,886.85 $1 ,606,081.31 $26,982,664.88 $34,652,736.56 $181,618.00 $173,932.08 701. Investment in road and equipment..............--......0005. 704. DEPOSITS IN LIEU OF MORTGAGED PROPERTY SOLD............+... JOS, BEISCHLELANNOUS PIVSICAL, PROOMRTY. ooo cicccicccccccesccsce EE td bat Wawa éhb RG Sue exh eT Coe Rekha eee aN 706. Investments in affiliated companies: SE oe areas & Sie. pi aa Oa beras awk edee MtNee CeReteee nee s'ss Bonds, notes, and equipment trust certificates.............. EN oo a acre ee oe ar bore ee We ee ee alla Suh Sng eee rae Nf iclisste dcia tei CR wedge Dew Die aoa oe Be Te we eA Owe 707. Investments in other companies: SNS oo ee aia oe eda vine Wie Sea eae aale subi eaiemme ee Bonds, notes,. and equipment trust certificates.............. MI sx Bi Aaa aa carteinas Inauaian el orale RE DION oie ewe ROSES oS Unitep States GovERNMENT BONDS AND NOTES......--...... ‘ Pe I Is 6 kdiew cco eine eit eh once ee Ghe eoriokes PD uciearat Jerre wewswes eee eeeabentan v 1,148,798,048.65 $1,154,739,003.41 Current Assets: 725. I OE NN ON eg cc che ed weeesenenkecreeeenewes Fat ~ MEU CHAS OOTED TER oc occ cece cseecetevevseretienwessies NS. eee re rr eee 921,768.80 1,842,514.88 953,462.84 1,540,525.91 $2,768,617.47 $297,532.65 RR ee ne ee ee eee Te Te ee eee Te eee $12,181,489.32 SIG. 4GS,367.46 awdddcosees 709. DBMAND LOANS AND DEPOSITS. 2 oo cccsccccseccccceucecccstscces 4,750,000.00 1,500,000.00 $3,250,000.00 ee TE ne ee ee 57,739.23 aes ——isC “ee wseeeieases pt ee ee ee ee ee eae 14,314.17 5,702.11 612.06 713. TRAFFIC AND CAR SERVICE BALANCES RECEIVABLE...-........++-. 2,998,070.98 3,986,590.47 soc eee eee 714. NET BALANCE RECEIVABLE FROM AGENTS AND CONDUCTORS........- 832,426.23 986,471.46 .....ccceeee 715. MISCELLANEOUS ACCOUNTS RECEIVABLE.........cccccccssseeees 3,947 673.53 See aeEGe ish ee ee ecv ees eee ee ern ee re ee ee 15,849,039.11 16,962,371.08 = = ....sscueeee 717. INTEREST AND DIVIDENDS RECEIVABLE..--.......--.. ee eee eee 1,583,609.15 1,645,880.87 = ......ceeeee rT tr TT or ee err ere eee ee 178,237.12 EGG,SSS.7S cee eecces 719. OTHER CURRENT ASSETS: Y Baltimore and Ohio Railroad Co. capital stock applicable to payment of extra dividend of 1914...........:ceeeeeeees 119,642.20 im Seer eee I IR 6 sb dia em ae oe WO MORS 0 4 Os 5.0 lee Kale eeeae 13,841.54 pe oS | EE EE TR nisi ce ncen6e dt WhReereceeeeenee® $42,526,082.58 eS , Deferred Assets: ee UNE AUNNORR, o.oo 6 56.0c edocs cog wone Oe eeneseeese $72,142.95 $89,586.90 ............ 722. OTHER DEFERRED ASSETS: Lard contracts, as per contra... , ‘i 2,343.24 10,206.49 Lee eee eee EIN SE ee ee eer ne ee ee 2,521,070.59 yee 5 ae Cae eer er re $2 ,595,556.78 SZ.72BAIS10 8 8h wccdevcsces Unadjusted Debits: 723. RENTS AND INSURANCE PREMIUMS PAID IN ADVANCE..........-- $4,333.79 $3,543.90 $789.89 EE Te TT eT ECU Pee ae ee of business to motor vehicles. The decrease in average revenue per passenger mile resulted principally from excursion rates made for the purpose of stimulating passenger travel. The decrease of $240,017.31 or 4.7% in “Mail Revenue” was due to decrease in volume of business handled and to decrease in space in cars assigned to United States Postal Department on account of reductions in passenger train service. The decrease of $1,040,058.61 or 27.9% in “Express Revenue” was due principally to a decrease in movement of less than carload traffic. The decrease of $983,349.86 or 28.1% in “Other Passenger- Train Revenue” was principally due to less dining, buffet and <leeping-car revenue, resulting from decrease in passenger travel. The increase of $352,605.07 or 701.1% in “Other Train Reve- nue” was principally receipts for the transportation, under contract, of shipments for Union Pacific Stages, Inc., an affili- ated company, which, in order to meet truck competition, in- augurated during the year a combination rail-truck service for handling intrastate shipments, with store-docr pick-up and delivery, in Nebraska, Kansas and Oregon, utilizing the rail- road for the line haul and local transfer companies and dray- men for the pick-up and delivery. was due to the decrease in volume of freight traffic handled. The decrease of $466,571.28 or 14.5% in “Other Revenue” was principally in receipts from hotel and restaurant operations, The decrease of $134,141.19 or 11.4% in “Switching Revenue” [ADVERTISEMENT] $1,196,688,305.48 $1,208,043,120.95 April 30, 1932 Oregon Short Line Railroad Co., Salt Lake Railroad Co.) DECREASE $68,014.36 $2,303,205.19 2,853,029.80 $4, 870, 014. 9 $4,996,805.54 $7,670,071.68 $5,940,954.76 $6,303,678.14 69,335.30 988,519.49 154,045.23 25,645.89 1,113,331.97 62,271.72 8,298.61 1,756.00 99,018.92 $5,567,289.21 $17,443.95 7,863.25 92,349.12 $117,656.32 $31,694.04 $11,354,815.47 and in demurrage, due to the decreases in passenger and freight trattic, respectively. The dec crease in labor by ments in work involving maintenat 1ce charges. greater use of rease o volume of traftic methods, and to $4,634,768.16 or Way and Structures Expenses” power 20.2% in was due handied, to machines improvement There less “Maintenance of to the continued de- more and effective use of other improve- and replacement has been a con- tinuous reduction in tie renewals for several years, accelerated during the past two years, due largely to treating substantially to improved methods of treatment, and to more extensive use of tie plates. The principal track materials used during the year in making all ties ap renewals y New rails Second-ha Total plied since 1921, vere as follows: nd_ rails 197.53 track miles 19.51 “ “ St ee er a ES ee ee ee eee 217.04 track miles excluding yard tracks and sidings, equivalent to 2.1 per cent of the track miles in main track at the beginning of the year. Ties 1,564,731 (98.2 per cent treated), equivalent to 4 per cent of all ties in track at the beginning of the year. Tie plates 1,067,363 and continuous rail joints 97,110. The decrease of $6,912,547.32 or 20% in Equipment Expenses” Locomotive ment. was due ovincigalty miles decreased 14.1 per to less use of “Maintenance ot equip- cent, freight-car miles 11.7 per cent, and passenger-car miles 12.6 per cent. elit of de- of ve- ient ‘on- ited ally ent, <ing ules “ ules t of ear. cent ates » of juip- [-car Vol. 92, No. 18 RAILWAY ACE General Balance Sheet—Liabilities (Excluding all offsetting securities and accounts between the Union Pacific Railroad Co., Oregon Short Line Railroad Co., Oregon-Washington Railroad & Navigation Co., and Los Angeles & Salt Lake Railroad Co.) 751. Capital Stock ten SG sachs kke ease seas bb dieiteae eee onniee owas ME IIR vo 6.6.64 15:06/500 0 d.0.0r0 wins 6 wile @ S-eacaiebe erature m auras ee ree eer re UE MN I oo ics bo wicidsa Scrap wonderin eb awn Meee ene eae 754. Grants ry Ae NINN ad's io. c eaychav elas grmeaseewiemarnres Current Liabilities : 759. TRAFFIC AND CAR SERVICE BALANCES PAYABLE........++..++ee08 760. AUDITED ACCOUNTS AND WAGES PAYABLE.......+...e0eeeeeeeee 761. MISCELLANEOUS ACCOUNTS PAYABLE: Ne, I cca idle aealeiece as pein enter siurewes are 762. INTEREST MATURED UNPAID: Coupons matured, but not presented...................06- Coupons and interest on registered bonds, due first proximo.. 763. DIVIDENDS MATURED UNPAID: ee Se ee a ee eer Extra divicend on common stock declared January 8, 1914, payable to stockholders of record March 2, 1914, unpaid... Dividend on common stock payable second proximo........ JGA.. PUMDED DEBT WATURED WHPRID. oc ekccccccccces sce cceececees 766. UNMATURED INTEREST ACCRUED. 00406 cis ccc sccccscvcseceecss 767.. UNMEATURED BENTE ACCRUED. «0.5.55 600 00 c8 bets nee seeweseeee ; oe ek os Te ee ee Tetal Camemt ERGs, «goo oo ono 6.dse crete ded cwiels ee eee Deferred Liabilities : 770. OTHER DEFERRED LIABILITIES: Principal of deferred payments on land contracts, as per contra Contracts for purcnase of real cetate. . oo... cccscswecetene NS eee ee ere a ee rac Ae, MME 2 Sa ro ona 3h (Rice pp te eran Weve o nRBionor a Bc aNig ene bummeveue ate Geeta eiedens Total Deferred Liabifities. .. .....0....ccccscccscecsecvcsee Unadjusted Credits: 773. INSURANCE RESERVE: Biemerwe Ger Gre TABTATICE o.oo ooicics cece ceeneweesosesies Fim. DEE WO GUPOCEATION «6 6.5. o 5 o.kic ov ccc ciesveeswcimnece ces 778. OTHER UNADJUSTED CREDITS: I SN 2.01.5, soto as ease aneitahiiv a: 'o fa erp etetauahamueieres setae. axe I | I 5,56. 5 50 faeces. o dsecdln es eceeanh Aw WP are RE mane TE Cr PII «oss ois seated e pemmmetesnwde Te Ge oie 5 5:6: 0:50 ce Sos mietlon'd adalorn Dla lardbaysiplerRiviore-seove Surplus: APPROPRIATED FOR ADDITIONS AND BETTERMENTS............-+- RESERVED FOR DEPRECIATION OF SECURITIES..--...-....cee00e% FUNDED DEBT RETIRED THROUGH INCOME AND SURPLUS.......... CUTIE BONN WMNNVEG a6. 5 oiiio is os eccie casino bbe sees Cea dee Pe BR ee ee 784. Profit and Loss—Credit Balance..................e cee eeeee EN 2s rays 160k: ae tae aeaer ae ae een ecae tee As this consolidated balance sheet excludes all intercompany items. securities. of the Los Angeles & Salt Lake Railroad Company owned by other System companies are not included. The difference be- tween the par and face value of such securities as carried on the books of the Los Angeles & Salt Lake (less unextinguished dis- count on the bonds and discounts charged to Profit and Loss but added back in consolidating the accounts) and the amounts at which the securities are carried on the books of the owning System COMIPRMERS TG GOt TW BECO TO TRIMIICE. ooo oo is occ coc tewesasscesese CME SEUNG 0 sc3sicdle sw cb ea waDewmresieletieweboameusen scale December 31, December 31, 1931 1930 INCREASE $222,292.500.00 $222,293,100.00 eee eee eee 99,543,100.00 " 99,543,100.00 $321,835,600.00 $321,836,200.00 == ............ 357,659,725.00 359,884,870.00 ss eee ee eee $679.495,325.00 $681,721,070.00 =... moet $939,357.39 $910,895.36 t $28,462.03 $1,508,369.33 ee 6,606,119.72 22,738,011.17 133,774.35 92,548.54 4,516,702.50 9,093,855.02 22,209,288.47 211,500.51 101,271.44 4,516,582.20 130,322.50 130,730.94 5,557,290.00 56,325.00 1,527,678.13 622,050.92 74,367.23 $43,633,958.63 $46,076,644.90 $2,343.24 1,660,000.0 7,942,725.36 6,392,478.36 $10,206.49 1,660,000.00 8,253,925.05 9,129,755.09 $15,997,546.96 $19,053,886.63 $4,847,793.78 85,479,968.95 828,033.09 1,512,860.94 $92,668,656.76 $86,196,962.21 $832.734,844.74 $833,959,459.10 $30,544,279.78 $30,474,626.71 34,972,570.88 34,972,570.88 536,828.66 536,828.66 185,542.67 177,606.00 $66,239,221.99 $66,161,632.25 266,041,344.53 276,249,135.38 $332,280,566.52 $342,410,767.63 $31,672,894.22 $31,672,894.22 $1,196,688,305.48 ' $1,208,043,120.95 124,720.00 161,468.76 $6,471,694.55 T $69,653.07 7,936.67 $77,589.74 DECREASE $600.00 $600.00 5,145.00 2 346 2 5,745.00 st ,199.69 »276.73 $3,056.339.67 $1,224,614.36 $10,207,790.85 $10,130,201.11 $11,354,815.47 * This account is stated as a current liability in accordance with the Interstate Commerce Commission accounting regulations, but it represents surplus cash of affiliated companies deposited with the parent company, the amount of which has been increasing from year to year, and in fact is not a current liability. ., | These amounts respectively represent donations made during the year by Federal Government, States, counties and municipalities and by in- dividuals and companies in part payment for improvements, such as road crossings, drainage projects, and industry spur tracks, the cost of which was charged to “Investment in Road and Equipment.”” These amounts are so accounted for to conform with regulations of the Interstate Commerce Com- mission. Both way and structures and equipment were properly main- tained. The decrease of $469,193.24 or 9.9% in “Traffic Expenses” was chiefly in expenditures for advertising and outside agencies. The decrease of $8,592,867.63 or 14.9% in “Transportation xpenses—Rail Line” was due principally to the decrease in Volume of freight traffic handled and to the discontinuance of 4a number of passenger trains and motor cars. Freight gross ton-miles and freight-train miles decreased 13.1 per cent and 13.3 per cent, respectively, and miles run by passenger trains and motor cars decreased 15.4 per cent. The decrease of $23,696.30 or 52% in “Transportation Ex- Penses—Water Line” was due principally to the discontinuance in September, 1930, of unprofitable ferry service on the Colum- restaurant operations. States in both assessments and tax levies. bia River between Astoria, Oregon, and Megler, Washington. The decrease of $644,601.98 or 18.7% in “Miscellaneous Operations Expenses” was principally in dining car, hotel, and (See explanations of decreases in Other Passenger-Train Revenue and Other Revenue.) The increase of $69,049.95 or .9% in “General Expenses” was due principally to an increase in pension payments. An analysis by classes of the decrease of $2,859,979.71 or 19% in “Taxes” is shown in the table. county taxes resulted principally from decreases in several The decrease in State and decrease in Federal income and other Federal taxes was due principally to a decrease in taxable income and profits. The decrease of $307,327.42 or 4% [ADVERTISEMENT] in “Equipment Rents RAILWAY AGE April 30, 1932 Operating Results for Year 1931 Compared with Year 1930 Calendar Year Calendar Year Pex 1931 1930 INCREASE DECREASI Cent Average miles of road operated...........-eeeees pengevinge wee ees 9,859.19 9.868.93 See welibinms er <i OveRATING REVENUES I a a eT aed ae teeta ai nie greta ti wi te Ui ce $124,180,281.26 SIS1,G61,00209 —cecciccvce $27,480,720.83 18.1 Sr i 8S AON Sd casi earring Si a 16.077,211.29 yi Be A 8. 5,099,983.30 24.1 a rd ve | ord. vos hg ee to ipeeie aca Gu ACN ete wR TE 4,860,340.07 SP ee 240,017.31 4.7 4. Express revenue.. TETETTP CLIT Eee e ee ee 2,692,748.75 RE re 1,040,058.61 27.9 5. Giler paenemmer-train revenue. ..... 0... cccccsccccccccccnsces 2,514,779.91 ca NS » Cree 983,349.86 28.1 CEO CE PORE CT Oe Ee ee ene 402,900.67 50,295.60 RN fe er re 701.1 SN es iro 's:'s Gre, ol'o Qu aw Maatl> Wee eR Ree maw oe eae ee 1,037,598.07 Roy ty > 134,141.19 11.4 ce I ois 0: aot aig Oca act. Mads wera ea naa are tS i aeOR 51,868.43 fo a rere 11,964.13 18.7 ck oh a acd Ow hae a Re ele Oe ee ome urna 2,750,682.15 SAI MOOMO ke eeenwnes 466,571.28 14.5 10. ee DRI POVINIR oo 5 6b ices cc ceesedieswasrccines $154,568,410.60 $189.672.612.04 eerree rrr _$35,104,201.44 18.5 OpERATING EXPENSES 11. Maintenance of way and structures.........-ccccccsccccceces $18,282,579 60 Ck Re $4,634,768.16 20.2 cc, Sn GO I os ony oa vw cRAGbe Wie bh amecwareeewee 27,636,303.09 cS 8 6,912,547.32 20.0 13. ae eS ee ee re ae $45,918.882.69 SOT AGROETS — whe kcccwe $11,547,315.48 20.1 04, TUMGEE GUO 6.666 se0ic enews Hos 8 ithe nome heeeedeeteemcates 4,261,215.58 4,730,408.82 i .......... 469,193.24 9.9 15. Transportation expenses—rail line. ........ecccccccceccccscse 48,975,024.70 i 2 * ee 8,592,867.63 14.9 16. Transportation expenses—water line.......... 0... cece cee eeee 21,837.73 eS 23,696.30 52.0 17. Miscellaneous operations expenses...........cccccccccscceces 2,794,640.15 SAaee lS 8 3—«- KTaO RS 644,601.98 18.7 iy re Ba ede ee FR CKE AES KHER OT AWE M OR Mee CS 7,985,791.94 7,916,741.99 $69,049.95 9 19. Transportation for investment-—Credit 5,998.97 SS. A ee 46.3 20. TO GOT GIN o 60.6.6. con eewiee i reeaesciwneeas $109.951.393.82 $131.154.849.68 beet tip 16.2 Sis Se ET Ns 5. 55 4-6. 5:6 2 0 SEN CARER eRe rR RRR $44,617,016.78 O5G,597,762.960 — decwvrccces $13,900,745.58 23.8 Paxes Ee eT re eng ee ee $11,438,704.09 $11,853,944.60 .......... $415,240.51 3.5 23. Federal income and other federal........cccccccccccccccces i 743,203.62 cm he + ¢ 2,444,739.20 76.7 24. NN oa csi cndenavkienoeoriniibenledeuneein . $12,181,907.71 $15,041,887.42 9 ...... 0, $2,859,979.71 19.0 25. Uneaiiectiite fORIWGy fOVGINES . «oc 6 cc sececcvicsesccccceeces ° $14,073.14 $7,862.69 $6,210.45 —§ ccccccceee 79.0 2 es (ON IR os 85s cee neces acieeboun ees nhe hemes $32,421,035.93 $43,468,012.25 .......... $11,046,976.32 25.4 eS OD, iu 5 oe daiwa eneine anda Mi a aeeake hoe 7,285,718.10 7,593,045.52 wo... .eee. 307,327.42 4.0 ee Ce ee IE vo 6k’ a 00K Ones e ee bee kbd odessa mn 432,885.65 vg ee * 144,358.01 25.0 29. Net vailway operating® MiCOMG. ic cccceccceccvecccecesecees ° $24,702,431.18 Sy «4 | a $10,595,290.89 30.0 Per cent—Oper:ting expenses of operating revenues............. i 71.13 69.15 7 1.98 De ees 2.9 FREIGHT TRAFFIC (Commercial Freight only) Tons of revenue freight carried........cccccccscccevesccsccces ‘ 25,751,542 31,844,462 .......... 6,092,920 19.1 I, “ES I 6 oo alo nbn ese wewe bkeele eben sere seheuee 10,562,219,853 12,858,923,108 .......... 2,296,703,255 17.9 Average distance hauled per ton (miles)............0..0.025.0 0005 410.16 403.80 CM <eveliece en 1.6 Average revenue per ton-mile (cents) Cee eee ee eres, 1.158 A! eee 006 5 Averaze revenue per freight-train mile................. cece eeee . $6.87 ___ $7.29 se ore Salaries $.42 5.8 PASSENGER TRAFFIC (Excluding Motor Car) Se ret re ee eee ere 1,694,489 22IOIIS «io eccccees 575,746 25.4 Revenue passengers carried one mile..... ec ec c ces cercccceeevees 612,817,807 yey 8 ee 125,360,741 17.0 Average distance hauled per passenger (miles)................... 361.65 325.16 PF ss ee HS Se sreise 11.2 Average passengers per passenger-train mile..................4% 43.98 eee 1.69 3.7 Average revenue per passenger-mile (cents).... ile «'s dwie ae 2.592 BOER —s ceccdecess 236 8.3 Average revenue per passenger-train mile, passengers only........ $1.14 io ee $.15 11.6 Average total revenue per passenger-train mile...............66- $1.70 2 | ee ee $.14 7.6 * Restated. (Debit)” was due to a decrease in mileage payments on re- frigerator cars because of a decrease in the movement of perishable commodities. The decrease of $144,358.01 or 25% in “Joint Facility Rents (Debit)” was due principally to increase in receipts from other carriers for use of new Union Passenger Station at Omaha, Nebraska, which was opened for operation on January 15, 1931. The increase in “Investment in Road and Equipment” is made up as follows: EPRtensions JNO Branches «2... sissccccsceseesss $1,564,386.95 Additions and Betterments, excluding equipment 5,938,854.49 OE ee a eine evn 1,589,995.17 RR 2. rah os: oth ie taeda e menue $9,093,236.61 From which there was deducted: Cost of property retired from service and not to be replaced .$1,778,530.74 Cost of real estate retired ....... 26,066.54 Cost of equipment retired from I Ait ee haa a din ate .. 1,569,065.79 Cost of industrial property trans- ferred to wholly owned affili- ated companies ........... ..+. 763,584.95 NONE S.So ob heck eres cneevacedix 4,137,248.02 Net increase in “Investment in Road and ET “Gece sek vcue es a4 eu tere eee Ca ee $4,955,988.59 [ADVERTISEMENT] The Colorado Division main line extending northerly from Denver, Colorado, to a connection with the Wyoming Division main line at Corlett Junction, Wyoming, was extended to Chey- enne, Wyoming, a distance of 2.42 miles. The extension, which was constructed for the purpose of expedit'ng train service between Denver and Cheyenne, was placed in operation on July 20, 1931. On November 1, 1931, the Oregon-Washington Railroad & Navigation Company, Northern Pacific Railway Company, Great Northern Railway Company and Chicago, Milwaukee, St. Paul and Pacific Railroad Company jointly purchased from the Longview, Portland & Northern Railway Company that portion of its line between Longview Junction and Vader Junction, Washington, a distance of 22.86 miles. The newly acquired line provides direct access to the city of Longview, Washington, where large lumber mills and other important industries are located. That part of the line between Longview Junction and Olequa, Washington, a distance of 20.97 miles, has been used since 1928 under trackage rights by certain passenger trains operated in pool service between Portland, Oregon, and Seattle, Washington, by the Oregon-Washington Railroad & Navigation Company, the Northern Pacific and the Great Northern. That part of Homestead Branch extending from Robinette to Homestead, Oregon, consisting of 24.78 miles of main track and 2.22 miles of other tracks ard appurtenances was aban- doned October 20, 1931, on authority of Interstate Commerce Commission, Finance Docket No. 8256, because of unprofitable operations.