of you occupy prominent positions and positions of influence with national and state legislative bodies, and with federal, state and municipal commissions. It is very important that you be properly informed in regard to the important questions affecting so great an industry as that of transportation, and it is through and by the aid of such associations as this one that the greatest good can be accomplished.

I hope to be able to indicate to you this evening that at least some of the popular clamor about the inefficiency of the management of railways is not justified, and by doing so, help you to bring a light of reason to bear on all questions relating to the railways that may be presented to you in the future. The railway is, perhaps, the most consistent, most useful and most necessary servant of the public, and no servant can be expected to do well unless properly provided for, and even then will undoubtedly do better if fairly treated.

Some of the railway practices of the past were undoubtedly wrong in numerous particulars, and that accounts for the spirit of hositility that has been reflected in many existing ordinances. Undoubtedly the errors of the past have been largely corrected, and laws will be passed that will prevent their recurrence in the future. As I previously mentioned there is today abundant evidence of a more kindly feeling toward the railways on the part of the public than there was several years ago.

The approximate length of steam railways in the United States today is 250,000 miles, or about 40 per cent of the entire railway mileage of the whole world. Against this large property investment there have been issued, roundly, twenty billions in securities, stocks and bonds. Of that amount, however, less than 16 billions are in the hands of the public, equal to about 66,500 dollars per mile of road. This amount covers not only the cost of permanent way, but shops, stations, etc., as well as equipment.

The total revenue received by the railroads in the United States for the year ended June 30, 1914, was roundly 3 billion. For the large amount of money so received the railroads performed service without parallel. The figures in that connection are as follows: The total freight transported was equivalent to 288,320,000,000 tons moved one mile, and the passenger service was equal to 35,250,000,000 passengers carried one mile. These figures are so large that to the average man they have no meaning. They can be stated differently, however, and so brought within the limits of our personal experience and understanding.

Any increase in the efficiency of our railways means a lower per capita cost, a larger per capita consumption, increased prosperity and finally, a larger number of ton miles hauled.

The average miles traveled per capita per year in the United States as shown by the official records is 357, and the average rate is two cents per mile.

In 1914 the railways in the United States received $55,000,000 for carrying the mails, and during the same year paid out in taxes $140,000,000.

The number of men employed on the railroads during the same year was 1,695,000, and the wages paid these men amounted to $1,375,000,000, or 45 per cent of the total revenues. That is, out of every dollar earned, 45 cents was paid out in wages.

Out of the total earnings from operation of 3 billion, the balance left for interest, dividends and surplus, after payment for wages, taxes, materials, etc., was approximately 670 million, or slightly over 4 per cent on the property investment; and if we take into consideration the entire income from all sources, it shows less than 41⁄2 per cent as return upon the outstanding capitalization.

The foregoing statements indicate to some extent the magnitude of the railway problems as a whole.

It appears, for instance, when so stated, that for every inhabitantman, woman or child in the United States-the railroads carried the

equivalent of one ton of freight over 2,800 miles. Comparative figures of the performance in three European countries are as follows:

This difference in service per capita is partly because of the great area and rich natural resources of the United States, but chiefly because of the freight rates being so low (7.3 mills per ton mile) that the difference in cost of transportation may be and often is more than offset by the natural advantages of certain regions or localities, thus making it more economical to procure our coal, ore, lumber, grain, etc.. where the superior natural conditions give the lowest initial cost, and to disregard largely the element of distance. The fact is not overlooked that the canals and inland lakes also afford cheap transportation, but owing to some extent, to the fact that they are not available for transportation purposes during the winter season, their influence is not in any sense controlling.

As I have mentioned, the freight carrying service is equivalent to carrying 2,800 tons one mile for every person. The average cost was about $20 per annum for every person. The same transportation by horse power would have cost 17 times as much, or about $350, which in turn would represent an expenditure greater than the entire value of all the annual products of this country, including the combined products from our factories, our fields, our mines, our forests and our streams.

When one considers the age of the American railway transportation machine—that only 89 years have elapsed since the first section of railway for the purpose of carrying merchandise and passengers was constructed by the Baltimore and Ohio Railroad for a distance of 15 miles out of Baltimore-the wonderful progress which has been made appeals to the imagination. The early history of the Baltimore and Ohio is most interesting and it would require too much of your time to talk about it in any detail. The first stone was laid by the venerable Charles Carroll of Carrollton, then over 90 years of age, and after performing this service, addressing himself to one of his friends, he said: "I consider this among the most important acts of my life, second only to the signing of the Declaration of Independence, even if