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1


2


3


4


5




Name of road.


LINE OWNED.


LINE OPERATED.


No.


Length.


Increase
as shown
by com-
parison

with
June 30,

1907.


Length.


Increase
asshowr
by com-
parison

with
June 30,

1907.


158


Catskill Mountain Railway Company


Miles.
15.75
3.77

74.58
30.70
30.00
10.40
1 .30
12.67
26.44
44.00
6.00
» 52.24
20.00
12.53


MiUs.


Miles.
19.52


Miles.


159


Cairo Railroad Company (The)






160
161


Central Pennsylvania Lumber Company's Railroad .
Central Railroad Company of Pennsylvania


27.18


74.58
30.70
36.20
10.40
I .30
12.67
26.44
44.00
6.00
» 52. 81
20.00
14.88
45.89


27.18


162


Chesapeake Beach Railway Company






163


Chestnut Ridge Railway Company






164


Conemaugh and Black Lick Railway Company

Cornwall [Railroad Company






165






166


Cornwall and Lebanon liailroad Company






167
168


Coudersport and Port Allegany Railroad Company..
Cranberry Lake Railroad Company


« 1.00


» LOO


169


Cumberland and Pennsylvania Railroad Company. .
Dahoga and Highland Ilailroad Company






170


5.00


5.00


171


Dansvllle and Moimt Morris Railroad Company

Delaware and Eastern Railway Company




17?






173


Delaware and Eastern Railroad Company


45.89

298.56
142.59

63.23

16.38

2L04

4.51

19.48

22.49

• 151. 14

12.18

•6.83

2L65

2.50

31.44
1 4.38
1Q.TQ7






174


Delaware and Hudson Company (The)


149.67


< 845.26


.50


175


Albany and Susquehanna Railroad Company

(The).
Chateaugay and Lake Placid Railway Company
(The).

Plattsburgh and Dannemora Railroad Company.

Cherry Valley, Sharon and Albany Railroad Com-
pany.
Cooperstown and Charlotte Valley Railroad (Com-
pany.
Cooperstown and Susquehanna Valley Railroad
Company.

Northern Coal and Iron Company's Raih-oad

Rensselaer and Saratoga Railroad Company

Albany and Vermont Raihx)ad Company

Rutland and Whitehall Railroad Company

Saratoga and Schenectady Railroad Company...
TIconderoga Railroad Company (The)




176








177






178






179




i


180




i


181








182








L83






184




i


L85








86








87
88


Greenwich and Johnsonvllle Railway Company. . .
Schoharie Valley Railway Company.


10.20


31.44
I 4.38
893.18


10.20


89


Delaware. Lackawanna and Western Railroad Com-


J (Yl


75 85


Annual report on the statistics
of railways in the United States

United States. Interstate Commerce Commission. Bureau of
Transport Economics and Statistics, United States. Interstate ...














s 6.81












\fi


Morris ana i!.ssex ii^xtension Kaiiroaa company

(The).
Newark and Bloomfleld Railroad Company

(The).


1.92
4.24




98


litizedbyQOOglf 1




1


1





HARVARD COLLEGE
LIBRARY



GRADUATE SCHOOL OF
BUSINESS ADMINISTRATION

THE BEQUEST OF
ROBERT DARRAH JENKS

(CLASS OF 1897)

OF PHILADELPHIA



MARCH 13. 1917



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STATISTICS OF RAILWAYS



IN THE



UNITED STATES



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STATISTICS or RAILWAYS IN THE UNITED STATES







/^■^::r^-A^J^



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!i : INTERSTATE COMMERCE COMMISSION



TWENTY-FIRST ANNUAL REPORT



ON THE



STATISTICS OF RAILWAYS



IN THE

UNITED STATES

FOR THE
YEAR ENDING JUNE 30. 1908

PREPARED BY THE

BUREAU OF STATISTICS AND ACCOUNTS



WASHINGTON

GOTERNMENT PRINTING OFFICE

1909

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Harvard Gollob'« Library
Mar l; , 191
Bequet-t of

Darrab Jenks






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THE INTERSTATE COMMERCE COMMISSION.



MARTIN A. KNAPP, of New York.
JUDSON C. CLEMENTS, of Georgia.
CHARLES A. PROUTY, of Vermont.
FRANCIS M. COCKRELL, of Missouri.
FRANKLIN K. LANE, of California.
EDGAR E. CLARK, of Iowa.
JAMES S. HARLAN, of Illinois.

EDW^ARD A. MOSELEY, Secretary.



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CONTENTS



Text of Rbport: Page.

Introductory 9

Development of Uniform System of Accounting 9

Changes in Form of Statistical Report 12

Monthly Reports of Revenues and Expenses of Steam Roads and Express

Companies - 16

Receiverships 16

Mileage 18

Classification of Railways 24

Equipment 26

Railway Employees 41

CapitaUzation of Railway Property 61

Selected Statements and Assignments 69

Incomeand Profitand Loss Statement 81

General Balance Sheet 94

Taxes ' 96

Railway Accidents 98

APPENDIXES.

A. Classification of Switching and Terminal Companies and Mileage for the

Year ending June 30, 1908 133

B. Comparative Schedule of Operating Expense Accounts for Large Roads

and for Small Roads 163

C. Classification of Operating Expenses of Systems or Roads operating more

than 500 miles of Line on June 30, 1908 167

D. Certain Statistical Summaries pertaining to Fiscal Years prior to 1908 201

STATISTICAL TABLES



I.



II.



Ill



Classification of Railways and Mileage for the Year ending June 30, 1908. 207
Supplement A. — [Showing totalized figures for certain roads lying in

more than one group] 336

Supplement B. — Corporate Changes, etc., for the Year ending June 30,

1906 338

Amount of Railway Capital at the Close of the Year ending June 30, 1908. 347
Supplement.— [Showing totalized figures for certain roads lying in more

than one group] 420

Condensed Income Account and Disposition of Net Corporate Income
for the Year ending June 30, 1908:

A. — Operating Roads ^ 427

Supplement. — [Showing totalized figures for certain roads lying in

more than one group] 638

B.— Leased Roads 647

Supplement. — [Showing totalized figures for certain roads l3dng in

more than one group] — 586

7



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8



STATISTICS OF BAILWAYS IN THE UNITED STATES.



Analysis of Operating Revenues for the Year ending June 30, 1908

Supplement. — [Showing totalized figures for certain roads Ijdng in more

than one group]

Analysis of Operating Expenses for the Year ending June 30, 1908

Supplement. — [Showing totalized figures for certain roads lying in more

than one group]

Analysis of Income for the Year ending June 30, 1908

Supplement. — [Showing totalized figures for certain roads lying in more

. than one group]

Analysis of Deductions from Gross Corporate Income for the Year ending

June 30, 1908 :

Supplement. — [Showing totalized figures for certain roads lying in more

ih&n one group]

VIII. Showing Certain Traffic Averages and Batioe for the Year ending June

30,1908

IX. General Balance Sheet for the Year ending June 30, 1908 [Showing

increase or decrease as compared with June 30, 1907]



IV.



V.



VI.



VII.



INDEXES.



Index to Railways.
General Index



Page.
589

642
647

674
677

746

751

814

819

861



961
989



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STATISTICS

OF

RAILWAYS IN THE UNITED STATES.



Interstate Commerce Commission,
Bureau of Statistics and Accounts,

Washington, D. C, September 16, 1909.
To ihe Tumordble members of the Interstate Commerce Commission:

Sirs: I have the honor to submit this, the Twenty-first Annual
Report on the Statistics of Railways in the United States, .being the
report for the year ending June 30, 1908.

uniform system of accounting.

In the report for the previous year will be found an account of the
development of a uniform system of accoimting for transportation
agencies subject to the jurisdiction of the Comnussion, so far as it
was at that time developed. To the classifications and accounting
rules there described there have been added during the year covered
by this report the Classification of Expenditures for Additions and
Betterments and the Form of General Balance Sheet Statement, as
prescribed by the Interstate Commerce Commission for Steam Roads,
effective on Jidy 1, 1909. The general structure of the accounting
system is now completed.

The further development of that system concerns itself with a
uniform system of shop accoimts, a uniform classification of em-
ployees, uniform rules for computing average daily compensation
of employees, a uniform classification of commodities carried as
freight, and similar problems which, now that the main classifications
are completed, may be undertaken. The development of satisfactory
rules for the assignment of revenues and expenses to States, a task
urged by the National Association of Railway Commissioners, is
another problem which presses for solution. In this connection, also,
shoidd be mentioned provision for more perfect statistics of trans-
portation services rendered at terminals and stations. All railway
statistics without exception, as well as the theory of railway tariffs
which many coimtries aim to realize, call for a separation of terminal



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10 STATISTICS OF RAILWAYS IN THE UNITED STATES.

and train expenses. One step has been taken for working out the
problem thus suggested, but much remains to be done. It is men-
tioned in this connection as indicating the further development of the
system of statistics and accounts which the results already accom-
plished make possible.

A word of explanation relative to the Form of General Balance
Sheet Statement promulgated by the Commission may not be inap-
propriate. The chief difficulty in drafting a satisfactory balance-
sheet statement arises from the different, and to some extent conflict-
ing, interests concerned, which, for the sake of explicit statement, may
be defined as —

(a) The interest of the management;
(6) The interest of the investor, and
(c) The interest of the public.

The chief aim of those who administer the property is to maintain
the credit of the business placed in their hands. It is therefore the
purpose of the management to develop the property without a cor-
responding increase in outstanding securities. This is true for the
reason that the wider the margin between the value of the property to
which the corporation has title and the amount of securities out-
standing against the property, the stronger will be the credit of the
company and the greater its abiUty to borrow fresh capital in time
of need. This is the explanation of what has been termed the
"American system of railway financiering," which, during the last
thirty years, has led to enormous expenditures for new construction
and for additions and betterments, without corresponding charges
to the property accoimts. It is also doubtless an explanation of the
fact that those who manage American railways have seldom thought
it wise to set up in the property accounts, through current or periodic
inventories, the results of changes in the valuation of real estate
or of fluctuations in the market values of material and labor. It
thus becomes evident why the measurement of '^cost of property"
acceptable to the management is not the money expended in the con-
struction or the development of the property of the corporation, but
the securities which must be issued in order to obtain the necessary
funds for construction and development; and, as long as balance
sheets are constructed with exclusive regard to the interest of the
management, it will not be possible to read from them the investment
cost of the property.

The interest of the stockholder, on the one hand, so far as the ac-
counting record of charges to property accounts is concerned, is at
variance with that of the management. It is, of course, true that
the trustees of the property — that is to say, the board of directors
and the officials who represent them — may also be stockholders, and
much of the "high finance" of recent years has resulted from the
temporary substitution by the management of^t^e^ stockholder's



DEVBLOPMBNT OF UNITOBM SYSTEM OF ACCOUNTING. 11

interest for the legitimate interest of the management. The stock-
holder is the residuary proprietor of all of the company^s assets not
coTered by outstanding obligations, and it is to his interest that the
▼alue of the property should be increased without a corresponding
increase in the number of shares which have a proprietary claim
upon the property. This is true for the reason that the value of
the shares will increasei other things being equal, with the increase
of the property which they represent, and in a properly constructed
balance sheet a stockholder should be able to reach the true book
▼alue of his property, and to deduce from it the basal market value
of each share. The stockholder's interest is expressed in valuation.
His interest in the business is that of an investor, and he desires to
apply the rules and principles of commercial valuation to his invest-
ments. He desires also to have as high a statement of the property
accounts as the commercial conditions of the business warrant, in
order that he may protect the value of his investment by showing
how great is the value of the property used in rendering the service
for which the pubUc pays. There is a marked tendency in recent
years toward the commercial valuation of railway properties for the
purpose of making use of that valuation to resist a reduction in
passenger or fright rates, and it is consequently of great importance
to the stockholder that uniform and reasonable rules should be fol-
lowed in arriving at a practicable, usable, and equitable statement
of the property accounts.

The interest of the public, which is the third interest involved
in the property accounts of railways, rests upon the fact that a rea-
sonable rate for transportation services is a rate which contributes a
reasonable return upon necessary investments, and a satisfactory
balance sheet from the pubUc point of view is one which shows what
has been actually invested in the property. The pubUc therefore
has the right to demand that the property ledger should record
every item of property which an appraiser would find, should an
appraisement be undertaken, and from the point of view of the
public at least, the figures entered on the property ledger against the
several items of property there recorded should be the amount of
money actually spent in creating the property rather than, as the
management desires, the amount of securities issued, or, as the
stockholder desires, the commercial valuation of the property.

The Form of General Balance Sheet Statement submitted to the
Commission and promulgated under an order of June 21, 1909, was
constructed, primarily, under the influence of the third interest
above described. The chief aim of this statement is to record such
an analysis of assets and Uabilities as will result in a complete state-
ment of the situation. Investment value, rather than securities
issued or commercial valuation, is made the comer stone of this state-
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12 STATISTICS OF RAILWAYS IN THE UNITED STATES.

ment, and provided the records of the carriers can be adjusted to
this conception, there will be found in the balance sheet a figure which
may be accepted as a starting point for computing the amount which
the pubUc may be called upon to contribute in passenger and freight
rates. This also is the conception which should underlie a valua-
tion of railway property were Congress to authorize such a valuation.
With the above general explanation, the present report may be
excused from a consideration of the many detailed questions which
arose in connection with the Classification of Expenditures for Addi-
tions and Betterments and the Form of General Balance Sheet
Statement. All such questions were decided in harmony with the
fundamental principle laid down.

CHANGES IN FORM OP STATISTICAL BEPORT.

In order that a proper interpretation may be made of the sum-
maries and tables which follow, and particularly in the matter of
comparative use of the figures submitted in this report with those
published in previous statistical reports, attention is called to the
fact that the work incident to the compilation of data for the year
1908 has included:

I. A separation of returns for terminal and switching properties.

II. An extension and rearrangement of the income-account state-
ment.

III. Separate compilations of operating expenses for large roads,
for small roads, and for systems.

IV. The presentation of various statistical averages and ratios in a
single table.

1. TermiTud and switching properties, — The switching and terminal
service rendered by carriers diflFers, in many respects, from that ren-
dered in the direct transportation of passengers and freight. The
existence of independent corporate organizations for the rendering
of such service also suggests the importance of a separate treatment
of that class of properties. One step has been taken toward the
complete separation, so far as statistical compilations are concerned,
of the service rendered at terminals and the service rendered on the
line by requiring a separate form of report for switching and terminal
companies independently organized. The main feature of that form
consists in the acceptance of the car, rather than the ton-mile, as the
unit of service. This corresponds to the facts of operation and man-
agement, as also to the tariffs filed covering switching service.

Financial and operating returns for 151 companies of this class
for which annual reports were rendered to the Commission for the
previous year are not correspondingly represented in this report for
1908. Inasmuch as the present report covers the period of transi-
tion so far as switching and terminal companies are concerned,
especial care has been taken in the footnotes appended to the several



CHANGES IK FOBM OF STATISTICAIi BEPOBT. 18

tables, as also in the summaries contained in the text, to make clear
whether returns for switching and terminal companies have been
included or excluded.

A list of switching and terminal companies, with their mileage,
will be found in Appendix A, page 133. It must not be understood,
however, that this list covers all switching and terminal companies,
as there are, doubtless, a considerable number to be added.

2. The extended income account. — The income account contained in
the form for annual report for railway companies for the year end-
ing June 30, 1908, was drawn in conformity with the classification of
operating revenues and of operating expenses promulgated by the
Commission under its accounting orders of June 3, 1907, and was
further influenced by certain accounting principles that underlie the
general system of accounts approved by the Commission. Many
items wUch heretofore have been consolidated are now analyzed,
and certain items heretofore included in operating expenses are now
made income charges. Additional provision has been made for the
checking of debit and credit entries arising on account of the con-
tracts between individual corporations brought together into a single
system for the purpose of operation.

The usefulness of the statistical reports heretofore published by the
Commission has been in some degree impaired by the fact that one
could not find a complete income statement for a particular road in a
single table. This limitation has now been overcome. Table III
in the body of this report shows an income account and a profit and
loss account for each road. It is divided into two parts, covering —
(a) Operating roads.
{h) Leased roads (not operating).

Each of the divisions of this table shows the net corporate income
and the manner in which it is obtained, and also the credit or the
debit balance carried to the balance sheet. The important point is,
that the table as now arranged covers a complete income statement
adjusted to the classifications and accounting rules promulgated by
the Commission and, consequently, drawn in such a way as to enable
it to be checked against the books and accounts of the reporting com-
panies. This, at least, is the purpose held in view.

3. Operating'expenae statements. — A third significant change re-
flected in the present report arises from the fact that separate
classifications of operating expenses have been prescribed for large
roads and for small roads. Large roads are those that operate a
mileage in excess of 250 miles, or have annual operating revenues of
more than $1,000,000. Included in this class, however, are small
roads not independent of the control of large roads as here defined.
Small roads are those that operate a mileage of 250 miles or less and
have annual operating revenues not in excess of $1,000,000.



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14 STATISTICS OP BAILWAY8 IK THE TJliriTED STATES.

The Classification of Operating Expenses for large roads provides for
123 primary accounts, while for small roads only 53 primary accounts
are required. In Table V there will be found a statement of oper-
ating expenses for all carriers covered by this report, classified under
the five general accotints, namely: Maintenance of way and struc-
tures, Maintenance of equipment, Traffic expenses, Transportation
expenses, and General expenses. In the text will be found two sum-
maries showing the operating expenses of lai^ and of small roads,
assembled in harmony with the classifications prescribed for each.
Appendix B, page 163, shows the relation between the classification
of operating expenses for lai^e roads and that for small roads, which
will enable one to combine the two summaries above referred to
according to the classification of primary accounts provided for small
roads, should one for any reason desire to make such a combination.



Online LibraryNew York (State). Dept. of Civil Service New York (State). Civil Service CommissionState service: its aims and purposes, Volume 1 → online text (page 1 of 110)