BUFFALO, ROCHESTER & PITTSBURGH-TWENTY-SEVENTH ANNUAL REPORT. The Directors of the Buffalo, Rochester and Pittsburgh Railway Company submit to the stockholders the following report for the year ending June 30, 1912: Owned INCR'SE. DECR'SE. MILES. MILES. 4.12 The following work, referred to in last year's report, was completed: Automatic block signals on double-track, between Clarion Junction The grade crossing at Wheatland, N. Y., was abolished by the erection of an overhead bridge. Additional passing sidings, yard and industrial tracks, have been provided as business demanded. Among the important work, now in progress, may be mentioned: Reservoir and pipe lines at Ketner, Pa., and Falls Creek, Pa. Replacing various timber bridges, trestles and culverts in perma- Jacksonville and Lucerne mine lines. Telephone train despatching line on Rochester and Buffalo Divisions. Automatic block signals for fifty-three miles on Rochester Division. The expenditures for these improvements will materially increase your Company's facilities for the safe and economical handling of the growing traffic. EQUIPMENT. Expenditures were made for new rolling stock as follows: Three passenger locomotives.. Three cafe-observation parlor cars. INCOME. 1912. 1911. $9,542,367.78 $9,134.402.03 6,464,228.57 6,145,855.52 OR DECREASE. +$407,965.75 +318,373.05 Seven freight locomotives. $3,078,139.21 $2,988,546.51 +$89,592.70 Fifteen hundred steel coal cars. One locomotive crane hoist. $21,803.74 21,795.66 + $2,935.22 Three caboose cars, built at Company's shops. $63,342.50 152,114.50 56,363.19 1,111,085.68 8,367.15 $18,868.52 20,857.57 + 938.09 Surplus available for dividends. $1,391,330.34 $1,327,707.63 + $63,622.71 Taxes decreased $8,000, or 3.77 per cent., due to lower assessments on capital stock, bonds and net earnings. A special appropriation of $375,000 was made from the Net Corporate Income. Of this amount $125,000 was paid into the Sinking Funds under Equipment Agreements Series A, B and C for the purchase of new rolling stock; $48,000 was used to retire a like amount of Equipment Bonds Series G; and $202,000 represents one-half of the principal of Equipment Bonds Series D, E and F paid during the year, the other half being refunded by 4 per cent. bonds issued under the terms of the Consolidated Mortgage, and held in the Treasury of the Company. There has been no change during the year in this account. The total outstanding Capital Stock of the Company amounts to $16,500,000, and consists of $6,000,000 preferred stock and of $10,500,000 common stock. FUNDED DEBT. Equipment Bonds Series G authorized in 1910 were issued to the amount of $1,200,000. Under the terms of the Sinking Funds for the redemption of Equipment Bonds, $452,000 bonds were retired as follows: $113,000 of Series D; $114,000 of Series E; $177,000 of Series F, and $48,000 of Series G. In accordance with the provisions of the Consolidated Mortgage of 1907 the Trustee delivered to the company $202,000 Consolidated Mortgage 42% Bonds, representing_50% of Equipment Bonds Series D, E and F retired during the year. These bonds, added to those in the Treasury of the Company, make a total of $1,114,000 held in reserve. The net result is an increase of $748,000 in the bonded debt of the Company outstanding on June 30, 1912. Steel underframes applied on two hundred and thirty-six gondola cars Sundry other betterments, including re-classification or transfer of nine freight cars and fifty work equipment cars..... In addition to the above, seventeen steel passenger train cars and one hundred steel flat cars were purchased, but owing to late delivery will be accounted for in next year's report. There was credited for equipment sold, transferred or destroyed, the following values, charged in part to Operating Expenses, and the balance, representing the depreciation since June 30, 1907, charged to Reserve for Accrued Depreciation: Thirteen locomotives Two passenger train cars. Five hundred and one freight train cars. Seventeen work equipment cars.. Making a net increase of.... $80,518.79 4,497.70 201,705.23 11,137.70 12,682.93 14,131.93 1,844.04 12,992.20 72,951.22 $1,505,875.34 297,859.42 $1,208,015.92 The total tractive power of engines aggregates 9,622,160 pounds, an increase of 165,200 pounds over last year. The average tractive power of each engine increased 1,013 pounds, being 33,180 pounds as against 32,167 pounds last year. All cars in freight service are provided with automatic couplers and 99.29 per cent. of the cars are equipped with air brakes. The total carrying capacity of cars in freight service now amounts to 668,744 tons, an increase of 61,225 tons over last year. The average carrying capacity or efficiency of each freight car increased 1.38 tons, being 40.23 tons as against 38.85 tons last year. The book value of rolling stock sold, transferred or destroyed, is credited to Additions and Betterments-Equipment, and Operating Expenses is debited (less the salvage carried to Material Account, and less the amount previously written off for depreciation, charged against the Reserve for Accrued Depreciation). When rolling stock is purchased or rebuilt, the cost is charged direct to Additions and Betterments-Equipment account. The reserve for accrued depreciation of equipment on June 30, 1912, amounted to $1,518,222.96. PASSENGER REVENUES. FREIGHT REVENUES. The average rate received per ton per mile decreased .07 mills, being 4.80 mills, as compared with 4.87 mills last year. The average distance each ton was hauled increased 4.64 miles, being 159.31 miles, against 154.67 miles a year ago. Pending an adjustment of the miners' wage scale, most of the col. lieries shipping on your line were idle during April. In spite of this loss, the revenue tonnage moved was the largest in the history of the Company, and is as follows: 10,812.87 17,175.36 28,116.73 13,480.47 7,967.61 86,289.15 19,411.44 Coke 538,452 243,610 19,964 EXPENSES. Operating Expenses increased $318,373.05, or 5.18 per cent., due prin cipally to the larger volume of freight traffic and partly to the severe weather conditions, the expense of replacement work, the inauguration of depreciation charges on machinery and tools, wage adjustments, and the employment of extra trainmen in Pennsylvania under the requirements of the so-called "full-crew bill," which became operative at the beginning of the fiscal year. The operating ratio increased .46 per cent., being 67.74 per cent., against 67.28 per cent. last year. .$9,542,367.78 $9,134.402.03 $407,965.75 OPERATING EXPENSES. The percentage of each group of operating expenses to gross earnings for the past five years, is as follows: 1912. 1911. 1910. 1909. 1908. 12.57 13.65 10.72 12.71 Maintenance of equipment. 18.94 19.35 20.78 21.45 23.01 Traffic 1.26 1.44 1.35 1.41 1.28 Transportation 32.88 32.11 28.55 29.22 32.39 General 2.14 1.81 1.74 2.25 2.10 Traffic expenses 120,108.16 131,403.06 $11,294.90 Total 71.49 General expenses.... exps.. 3,137,299.76 204,481.18 2,933,141.80 204.157.96 165,190.84 39.290.34 TOTAL OPERATING Ex- last year. The Company's property has been fully maintained at a high standard. The average cost per ton per mile is 3.01 mills, being .06 mills less than one mile per revenue tons carried The average number of revenue freight train mile, excluding the mileage of helping engines, increased 12.72 tons, being 647.41 tons, against 634.69 tons a year ago. The average number of revenue tons carried one mile per revenue freight engine mile, including the mileage of helping engines, increased 9 tons, being 439, against 430 a year ago. The averages for the past ten years are as follows: .$6,464,228.57 $6,145,855.52 $318,373.05 NET OPERATING REV..$3,078,139.21 $2,988,546.51 $89,592.70 Revenues Expenses Net revenue Net deficit TOTAL NET REVENUE- OPERATING INCOME 21,803.74 21.795.66 18.868.52 20,857.57 $8.08 2,935.22 938.09 $1,997.13 *The figures from 1908 to date are based on the Interstate Commerce Commission's classification of locomotive and train mileage. The average number of revenue passengers carried one mile per revenue passenger train mile is 38, being 2 less than last year. The non-revenue traffic, not included in any of the other figures of this report, is as follows: Number of passengers. Number of passengers carried one mile. Number of tons. 1912. 275,546 10,880,382 Number of tons carried one mile. 972,545 88,403,527 ALLEGHENY WESTERN RAILWAY CO. 1911. 262,445 10,285,321 911,360 73,811,354 Advances were made to the Allegheny & Western Ry Co. for additions and betterments expenditures, as follows: Land Grade revisions and changes of line. Bridges, trestles and culverts.. Track fastenings and other material. Sidings and yard extensions. Water and fuel stations. Other items $4,572.00 9,879.48 3,075.69 4,335.31 21,211.21 4,748.75 880.78 $48,703.47 With the exception of the revision of line near Cowan, Pa., still under way, all of the work mentioned above is completed. FIRE INSURANCE FUND. The assets in this fund were increased $20,547.27 during the year, and now amount to $236,748.12 in interest-bearing securities and cash. PENSION FUND. The assets in this fund, created July 1, 1903, were increased $12.085.84 during the year, and now amount to $177,319.70 in interest-bearing securities and cash. There were fifty-one pensioners upon the roll on June 30, 1912, a net increase of five during the year. GENERAL REMARKS. The Ontario Car Ferry Company, Limited, paid a dividend of 5% for the year ending December 31, 1911. The sum of $12.485 received on the $249,700 of this Company's stock was credited to Other Income account. Loans amounting to $57,850 were made to the corporation organized by your Company to acquire and hold real estate, referred to in last year's report, making a total of $297,850 advanced to date. Mr. Hamilton F. Kean was, on November 23, 1911, elected a Director to fill the vacancy in the Board caused by the death of Mr. A. Lanfear Norrie. The acknowledgments of the Board are renewed to the officers and employes for their faithful and efficient services. Statements and statistics of the operation of your road for the year are By order of the Board, submitted herewith. Rochester, N. Y., July 29. 1912. WILLIAM T. NOONAN, President. 235,200.00 235,200.00 221,350.00 INTEREST ACCRUED ON FUNDED DEBT- 17.500.00 377,340.14 221,350.00 278,505.00 276,581.24 $1,923.76 .$1,207,895.14 $1,209,813.75 419.19 21,797.65 $1,918.61 21,378.46 $22,967.16 TOTAL DEDUCTIONS...$1,882.830.84 $1,905,798.00 NET CORPORATE INC..$1,770,894.67 $1,709,277.05 $61,617.62 DISPOSITION OF NET CORPORATE INCOME. $5,505.09 Retirement of Equip 250,000.00 246,500.00 $3,500.00 ment bonds DIVIDENDS DECLAREDPREFERRED STOCK (No. 36) 3% on $6, 000,000, payable DECREASE. Aug. 15, 1911. (No. 37) 3% on $6, $5,126.77 000,000, payable Feb. 15, 1912 COMMON STOCK Total PASSENGER .$8.174,728.45 $7,748.178.51 $426,549.94 1,058,260.42 1,065,983.42 $7,723.00 OTHER TRANSPORTATION Excess baggage. 10,386.00 Mails 50.247.21 9,922.55 50,100.37 463.45 146.84 Express 82.558.39 29.872.81 52,685.58 Milk 15,007.56 Switching Sundry sources Total 104,256.38 3,290.44 $265.745.98 13,733.01 111,262.57 8.628.73 $246,332.81 1,274.55 7.006.19 $19,413.17 ΤΟ PROFIT AND ACCOUNT Loss $506,330.34 $495,207.63 $11,122.71 'N Massachusetts the railway commissioners, to whom power was delegated by the legislature, have tried to make a fullcrew law based, in part at least, on common sense-in marked contrast to the laws passed in Arkansas, Pennsylvania and other states by the legislatures. The commissioners' rule, to go into effect September 3, was noticed in our issue of August 9, page 260. It bears marks of a spirit of compromise, and the requirement that a train shall have more brakemen, because it has two locomotives, is in practice illogical, because on some parts of a run the two engines will pull no more cars and make no more work than will one engine on another part. But it is the rule that is prescribed for trains occupying both of two main tracks which we wish to commend as sensible. Where there is actual flagging to do, the railway cannot object to a rule requiring the presence on the train of the men necessary to do it. If an eastbound train temporarily occupies the westbound track at a station, it must be protected against westbound trains; and in many. perhaps most, cases of this kind the conditions are such that the rule requires a flag to be sent west also. Where the crossover track is fully interlocked, with adequate distant signals, the flagging can be omitted; so the Massachusetts rule is perhaps to be looked upon as an incentive to the railways to more fully equip their double-track lines with interlocking. By spending money on interlocking, which is a permanent improvement, and of use in other ways than simply for the protection of a standing freight train, they can save the expenditure for the extra brakeman, who, for much of his time, is pretty nearly useless. AN engineer who recently returned after making an extended study of railway motive power conditions in Great Britain and on the Continent was struck by the marked difference in the standing of the motive power officers in this country and abroad. Generally speaking, such officers have far more authority abroad and their positions are much more attractive. The observation of this same condition by George M. Basford, when he made an extensive visit abroad in 1903, was responsible for the following expression from him in the American Engineer: "American railways are making a serious mistake in their treatment of the locomotive department as a whole, in making it subordinate and in placing the head of the department in a position which is inferior to that of an officer of a commercial enterprise who has but one-tenth of the responsibility, who requires but one-twentieth of the experience and possesses even a smaller proportion of all around ability. We cannot do much when it is possible for many of the best men for these positions to be attracted away to other fields of effort. Our railway managements need to take heed of the appreciation of locomotive officers in Europe. It is not a matter of sentiment, but pure business to put our motive power officers in positions to do things and to surround themselves with organizations which will make their lives worth living while they do them." It is true that since this was written the motive power officers generally are being better paid, but to offset this there has been a marked increase in the cost of living and the responsibilities of the position have greatly increased. The labor problem is becoming more difficult to handle and the necessity for greater economy and efficiency in operation has made it necessary to extend and perfect the mechanical department organization to a far greater degree than was thought desirable a decade ago. The requirements are such that the very best men are needed to fill such positions, and they should not be hampered in any way by interference from higher officers, who may have only a partial and incomplete understanding of the problems of the mechanical department. A plain statement of the condition on some roads is made by a correspondent in another part of this issue. On the other hand, the head of the mechanical department must not expect to be given greater authority and privileges unless he can demonstrate that he has a broad conception of the work of the mechanical department and its proper place in the field of railroading. He must realize, more thoroughly than many such officers now do, that the maintenance and repair of rolling stock and motive power is incidental to the main business of the railway, and that in designing, constructing, handling and maintaining the equipment he must ever keep in mind its efficiency from an operating standpoint and its suitability for safely and economically handling the traffic which is to be carried by it. The motive power officer who does this is really as much of an operating officer as he is a mechanical officer, and is bound to win the confidence of those above him and to be intrusted with more and more responsibility and authority. WE THE SERVICE OF JOINT TICKET OFFICES. E give on another page a letter from an experienced traveler who makes a forcible argument against joint city ticket offices. His communication brings to mind a fact that neither railway officers nor the public should ever allow themselves to forget. This is, that railway efficiency does not consist in economical operation alone, but in both economical operation and good service. In other words, it is the most economical operation consistent with the rendering of good service; or, to state the matter the other way around, the rendering of the best service consistent with reasonable economy. The Railway Age Gazette has shown that it would cost much less to operate joint city ticket. offices than ticket offices for each road. And we have sought to show that under this arrangement the service rendered to the public would be improved. Our correspondent replies that the public would not be better served because under the joint arrangement each ticket clerk would be employed by all of the roads, and the roads would not be stimulated by competition in salesmanship to employ as many clerks as would be needed, and the clerks would not be similarly stimulated to treat patrons courteously and attentively. He says that at union stations the conditions already exist which he believes would be certain to develop also at joint city ticket offices. There is much truth in what he says. Neither monopolies nor their representatives-whether the monopoly be the government of the United States, the gas company, a railway or a combination of railways-are often either accommodating or courteous. It does not always happen that the traveler is attentively treated at the city ticket office of an individual road, and it is undoubtedly true, as our correspondent says, that in many union depot ticket offices it is hard to get even decent treatment. Our observation has been that at the ticket office in the union station in St. Louis, for example, even in rush hours, the traveler usually is rather promptly and politely waited on. But the experience of buying a ticket at the union station in Chicago, or Kansas City, for example, is most exasperating to an experienced male traveler, and must leave an inexperienced woman traveler with a feeling of indignation that she does not soon forget. In many cases the roads do not provide enough ticket windows or clerks, and when they have thus failed to do their duty to the public it is neither consistent nor useful for them to tell the ticket clerks how Chesterfieldian they should be in performing their duties. If this paper believed that such conditions as have been allowed to exist for years in the ticket offices of many union stations would be allowed to grow up and continue for like periods in joint city ticket offices it would not favor, but would oppose, joint city ticket offices. But the case in regard to city ticket offices is somewhat different from that of depot ticket offices. Oftentimes it is practically impossible to enlarge the ticket-selling facilities in a depot without practically rebuilding the depot, and to rebuild the depot often would practically involve rebuilding the terminal. Now, rebuilding a terminal, and especially a large union terminal, involves not only an enormous expense but also the securing of an agreement between the various roads using it, and then between them and the city authorities. Under these conditions railways may begin preparation to build a new terminal before the old one becomes overcrowded, and yet may be so delayed by obstacles which no individual road, or even all of them, can remove, that before they get the new terminal built the old one will be terribly congested. Obviously, no such difficulties would have to be overcome in enlarging the capacity of a joint city ticket office. However, whether it would be practicable to keep the facilities of a joint city ticket office adequate and its service good, and whether this would actually be done, are two different questions. To keep the facilities adequate it would be necessary for the railways willingly to make all necessary expenditures from time to time. To keep the service good would require publicspirited and incessant supervision of the employees. In the past this kind of supervision of employees in their dealings with the public has not been one of the virtues of American railway management. The attitude of employees, whether those of individual roads or of several roads, was aptly satirized by Arnold Bennett in his article in Harper's Magazine for August. The conductors, flagmen and porters on one of our great railway systems were likened to admirals, captains and first officers pacing bridges. "Clearly they owned the train and kindly lent it to the railway. Their demeanor expressed a rare sense of ownership; also of responsibility." The employees on the road referred to are really more civil and accommodating, although, perhaps, also more condescending, than those of most of our railways. But the railway managements all over the country recently have been making great efforts to impress on their employees the desirability of showing a civil and accommodating spirit. These labors are bearing fruit. It seems not unreasonable to expect that similar supervision would be exercised over the employees of joint city ticket offices, and that, as a result, patrons would be as courteously treated as they are in the offices of individual lines. Certainly it would be very desirable that this should be done. At present a traveler who is discourteously treated at the ticket office of one road can avenge himself by going and getting a ticket elsewhere. The establishment of joint city ticket offices would deprive him of this means of evening up the score, and bad ticket office service would rapidly increase the number of people who would avenge themselves by writing letters to the newspapers or voting for the candidates for office who advocated the largest reductions in rates. The argument for joint city ticket offices seems much stronger than that against them. That savings can be made by establishing them is certain. That the service rendered to the public would not be impaired, but improved, seems highly probable, although not so certain. The best way to find out how the scheme will work is to try it. The railways entering Kansas City have decided to do so, and the results there will be interesting and instructive. No effort should be spared to make the service rendered as good as is reasonably practicable, for on the quality of the service rendered, rather than on the economies effected, will depend the ultimate success of the plan. THE INCREASING BUSINESS AND THE CAR SITUATION. HE American Railway Association's statement of car surpluses and shortages for August 14, like its statements for July 18 and August 1, point to the extreme probability of a severe car shortage this fall unless every possible effort be made by shippers, by consignees and by railways to avert it. On August 19, 1908, the surplus of cars was 253,003, and the shortage 854, making a net surplus of 252,149. On August 18, 1909, the surplus was 159,424, and the shortage 2,009, leaving a net surplus of 157,415. On August 17, 1910, the surplus was 78,760, and the shortage 5,081, leaving a net surplus of 73,679. On August 16, 1911, the surplus was 108,000, and the shortage 3,830, leaving a net surplus of 104,170. On August 14, 1912, the surplus was 58,323 and the shortage 14,722, leaving a net surplus of only 43,601. As the figures above show, the surplus on August 14, 1912, was less, and the shortage greater, than on the corresponding date for any of the last four years. There was also a marked decrease in the surplus and a marked increase in the shortage between July 18 and August 14, showing that the supply of cars has begun rapidly to melt away. The government's August crop report forecasting a large agricultural production in almost all lines and the heaviest crop movement this fall in years, if not in history, and the figures regarding the car situation amply justify the vigorous agitation that the railways have begun to get shippers and consignees to co-operate with them in carrying out measures to secure the most efficient practicable use of the available equipment. Fortunately, the indications are that the roads are going to get from all sources the most hearty and effective support that they have ever been given in their efforts to handle the traffic satisfactorily. Among the concerns and commercial organizations that already have sent out circulars to their patrons and members, urging them to move what commodities they can as early as possible and to make the most economical use of equipment that they can, are the Illinois and Indiana Steel Companies, the Simmons Hardware Company of St. Louis, and the Chicago Board of Trade. The Minnesota railway commission has issued a circular letter to common carriers and shippers recalling the car shortages of past years; saying, "If shippers do not lend their assistance by prompt loading and unloading of cars there is bound to be a shortage no matter how efficient service the railway may try to render," and urging the shippers to co-operate with the carriers in every way that they can. The Minnesota commission's suggestions to shippers and carriers are so wise, comprehensive and timely that we give them below in full: "1. Shippers should make their demand for cars on the station agent in writing. "2. They should load cars as promptly as possible and to the full capacity of the cars ordered; they should not take advantage of the full, free time allowed for loading, and should give the railway immediate notice when a car is ready for release. "3. See that sufficient grain or other products are on hand to load the cars to their capacity. "4. They should not use cars for storage while waiting for deliveries to complete carloads. "5. They should not place orders for more cars than are absolutely needed. "6. Consignees should unload as promptly as possible; they should not they can't show this they probably will have to face another storm of hostile public sentiment, such as that which they went through in 1907, and to harvest another large crop of reciprocal demurrage laws. While the possibility, and even probability, of a severe car shortage is depressing, the main causes to which it is owing inspire optimism. It is due partly to the fact that the railways have not bought as much equipment as they would have liked to, but it is due more to an increasing demand for equipment. The growing demand is caused by increased industrial and commercial activity; and the maximum demand this fall will be caused by big crops. These things mean big traffic, and big traffic means big gross earnings for the railways. The fiscal year 1913 is only six weeks old, and it would require much temerity to predict now what the final results of railway operations during this fiscal year will be. Many things that no one can now foresee, or even imagine, may happen before June 30, 1913. However, judging entirely by existing conditions and prospects, the fiscal year 1913, in point of gross earnings at least, is going to be a good one for the railways in the United States, perhaps the best in their history. Whether the roads will be able to keep their operating expenses down enough to make their net earnings proportionate to their gross earnings is another question. BROOKLYN RAPID TRANSIT. take advantage of the free time allowed for unloading, and should give WHILE of course the decision of the Brooklyn Rapid Tran the railway immediate notice when a car is ready for release. "7. They should give disposition of all cars as quickly as possible after arrival at destination. "8. Railway companies should see that a car record book is kept at each station, showing the names of parties ordering cars, the date and hour ordered, kind of cars required, and the date orders were filled. "9. They should place without delay at the point ordered all cars on which disposition is furnished by consignees. "10. They should see that all loaded cars are moved promptly from the point of loading to destination, as delays in moving loaded cars have been the cause of serious complaints from shippers in past years. "11. They should have made at once necessary repairs to box cars requiring them. "12. They should make arrangement for a plentiful supply of refrig erator cars for potato shipment in cold weather." The Illinois commission also has issued a circular which especially urges the railways to get into good repair all their available equipment. Last fall and winter the commission received many complaints of shortages of cars and motive power. Its investigation at the time disclosed that all of the Illinois lines had more or less cars, as well as motive power unfit for, or actually out of, service, and that had all their equipment been available the traffic could have been dealt with much more satisfactorily. The commission, therefore, urges the roads to take steps at once, if they have not already done so, to put in condition for use all of their equipment and to report to the commission by November 1 the number of cars they have which are in condition for the loading of grain and coal; also the number of cars they have for such loading which are unfit for service, as well as the number of locomotives. The desirability from the standpoint of the railways themselves of getting all their available equipment ready for service, as well as their duty to do so, are so plain that it would seem unnecessary to bring these matters to their attention. But in view of past experience the Illinois commission appears justified in doing so. Certainly the railways cannot consistently call on the shippers and consignees to do all they reasonably can to avert a car shortage, and at the same time fail to put their equipment into good shape, or to do anything else in reason that may help the situation. It is impossible to conceive of any worse form of false economy than to delay or fail in such circumstances as now exist to put equipment in the best practicable condition. In case of a severe car shortage the railways will get plentifully cursed, even if they can show that they have done everything possible to alleviate or avert it, and if sit and the New York Public Service Commission to adopt the dual system (lines to be built and operated by the B. R. T. and by the Interborough Rapid Transit) of subways and elevated lines for both Manhattan and Brooklyn was the most interesting event in the history of the Brooklyn Rapid Transit Company in the past year, the annual report throws no new light on this subject. It does show a prosperous year for the company as now operated. The system now operated consists of 241 miles of surface road, or 543 miles of surface single-track, and 33 miles of elevated road, or 71 miles of elevated single-track. In 1912, the total passenger earnings amounted to $22,560,000, as against $21,350,000 in 1911. The operating expenses increased somewhat, but the company's net earnings this year amounted to $10,930,000, comparing with $10,030,000 last year. The most noticeable increase in expenses last year was an increase of $309,507, or 21.12 per cent. in taxes. The company had, however, available for dividends, a total surplus for the year of $3,730,000, which is greater by $650,000 than the surplus available for dividends in 1911, an increase of 21 per cent. The increase last year in passenger earnings was greater than the average since 1906. It was an increase of 5.66 per cent. over 1911, and 1911 showed an increase of 4.28 per cent. over 1910, and the average yearly increase since 1906 has been somewhat less than that. With an increase of 5.66 per cent. in earnings, there was an increase in car mileage of only 2.49 per cent., the total revenue mileage in 1912 being 81,600,000. The earnings per mile in 1912 were 27.06 cents, as against 26.08 cents in 1911, the earnings per mile being increased since 1902 from 23.04 cents to 27.06 cents. This is coincident with a decrease from 3.83 cents earnings per passenger to 3.77 cents over the period from 1902 to 1912. During the period, repairs and renewals have been given a larger and larger per cent. of operating revenue. In 1902 they consumed 13.81 per cent.; in 1912, 16.39 per cent. On the other hand, the general cost of operating cars has consumed but 33.89 per cent. in 1912, as compared with 42.85 per cent. in 1902. This lower relative cost of operating cars has been the result of economies and increased efficiency, which have taken place and had their effect with perfect regularity, with the single exception of a slight bulge in these costs in 1907 and 1908. In each year since 1902, with the exception of the two years mentioned, the cost of operating, exclusive of repairs and renewals, |