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authorRoger Frank <rfrank@pglaf.org>2025-10-14 20:05:51 -0700
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+ The Project Gutenberg eBook of The Mail Pay on the Burlington Railroad, by Post-Office Dept.
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+<pre>
+
+Project Gutenberg's The Mail Pay on the Burlington Railroad, by Anonymous
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever. You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: The Mail Pay on the Burlington Railroad
+
+Author: Anonymous
+
+Editor: Post-Office Department
+
+Release Date: June 19, 2011 [EBook #36464]
+
+Language: English
+
+Character set encoding: ISO-8859-1
+
+*** START OF THIS PROJECT GUTENBERG EBOOK MAIL PAY ***
+
+
+
+
+Produced by Jeannie Howse, Adrian Mastronardi, The
+Philatelic Digital Library Project at http://www.tpdlp.net
+and the Online Distributed Proofreading Team at
+http://www.pgdp.net (This file was produced from images
+generously made available by The Internet Archive/American
+Libraries.)
+
+
+
+
+
+
+</pre>
+
+
+<br />
+<br />
+<br />
+<br />
+<hr />
+<br />
+<br />
+<br />
+<br />
+
+<h1>THE MAIL PAY ON THE<br />
+BURLINGTON RAILROAD</h1>
+
+<hr style="height: 2px; color: black; background-color: black; width: 35%;" />
+
+<p class="cen">Statements of Car Space and all Facilities Furnished<br />
+for the Government Mails and for Express and<br />
+Passengers in all Passenger Trains on<br />
+the Chicago, Burlington and<br />
+Quincy Railroad</p>
+
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+<br />
+
+<h4>Prepared in accordance with requests of the Post-Office Dept.</h4>
+
+<br />
+<br />
+<br />
+<br />
+<span class='pagenum'><a name="Page_1" id="Page_1">[1]</a></span><hr />
+<br />
+<br />
+<br />
+<br />
+
+<h1>THE MAIL PAY</h1>
+
+<h4>ON THE</h4>
+
+<h3>Chicago, Burlington &amp; Quincy Railroad</h3>
+<br />
+
+<p>The present system under which the Government employs railroads to
+carry the mails was established in 1873, thirty-seven years ago. Under
+this system, the Post Office Department designates between what named
+towns upon each railroad in the country a so-called "mail route" shall
+be established. Congress prescribes a scale of rates for payment per
+mile of such mail route per year, based upon the average weight of
+mails transported over the route daily, "with due frequency and
+speed," and under "regulations" promulgated from time to time by the
+Post Office Department. To this is added a certain allowance for the
+haulage and use of post office cars built and run exclusively for the
+mails, based upon their length. The annual rate of expenditure to all
+railroads for mail service on all routes in operation June 30, 1909,
+was $44,885,395.29 for weight of mail, and for post office cars
+$4,721,044.87, the "car pay," so-called, being nine and five-tenths
+per cent of the total pay. The payment by weight is, therefore, the
+real basis of the compensation to railroads. The rate itself, however,
+varies upon different mail routes to a degree that is neither
+scientific nor entirely reasonable. The rate per ton or per hundred
+pounds upon a route carrying a small weight is twenty times greater
+than is paid over a route carrying the heaviest weight. The Government
+thus appropriates to its own advantage an extreme application of the<span class='pagenum'><a name="Page_2" id="Page_2">[2]</a></span>
+wholesale principle and demands a low rate for large shipments, which
+principle it denounces as unjust discrimination if practiced in favor
+of private shippers by wholesale. The effect of the application of
+this principle has been to greatly reduce the average mail rate year
+by year as the business increases. This constant rate reduction was
+described by Hon. Wm. H. Moody (now Mr. Justice Moody of the United
+States Supreme Court) in his separate report as a member of the
+Wolcott Commission in the following language:</p>
+
+<div class="block"><p>"The existing law prescribing railway mail pay automatically
+lowers the rate on any given route as the volume of traffic
+increases. Mr. Adams shows that by the normal effect of this law
+the rate per ton mile is $1.17, when the average daily weight of
+mail is 200 pounds, and, decreasing with the increase of volume,
+it becomes 6.073 cents when the average daily weight is 300,000
+pounds."</p></div>
+
+<p><span class="sc">Note.</span>&mdash;Since 1907 the railroads have been paid at much
+reduced rates. On the heavy routes the pay is now 5.54 cents per ton
+per mile.</p>
+
+<p>Post Office Department officials have announced, as their conclusion
+from the results of the special weighing in 1907, that the average
+length of haul of all mail is 620 miles.</p>
+
+<p>The bulk of the mail is now carried on the heavy routes at 5.54 cents
+per ton per mile, or $34.34 per ton for the average haul, that is, for
+one and seven-tenths cents per pound.</p>
+
+<p>The railroads, therefore, receive less than one and three-fourths
+cents per pound for carrying the greater part of the mails.</p>
+
+<br />
+<hr />
+<br />
+
+<p>But the rate reduction for wholesale quantities has not had the effect
+of reducing the actual remuneration of the railroads for carrying the
+mails to nearly so great an extent as the increasing requirements for
+excessive space for <span class='pagenum'><a name="Page_3" id="Page_3">[3]</a></span>distributing mails en route. This feature was
+likewise discussed by Judge Moody in his report in the following
+language:</p>
+
+<div class="block"><p>"The rule of transportation invoked is based upon the assumption
+that the increase of traffic permits the introduction of
+increased economy, notably, the economy which results in so
+loading cars that the ratio of dead weight to paying freight is
+decreased. Yet this economy is precisely what our method of
+transporting mail denies to the railroads. Instead of permitting
+the mail cars, whether apartment or full postal cars, to be
+loaded to their full capacity, the Government demands that the
+cars shall be lightly loaded so that there may be ample space
+for the sorting and distribution of mail en route. In other
+words, instead of a freight car, a traveling post office."</p></div>
+
+<p>An illustration of the extent to which the reductions have been
+carried, as shown upon one railroad system, is set forth in the letter
+of January 21, 1909, addressed to the Committee on Post Offices and
+Post Roads of the House of Representatives by Mr. Ralph Peters,
+President of the Long Island Railroad, who states that the actual cost
+to his company of carrying the United States mail for the year was
+$122,169, while the total compensation for that service paid by the
+Government was $41,196. Mr. Peters says:</p>
+
+<div class="block"><p>"The Long Island Company received from the Government for mail
+service performed in expensive passenger trains one-half the
+rate received by it per car mile for average class freight in
+slow-moving freight trains."</p></div>
+
+<p>The Long Island Company notified the Government that it would decline
+to carry the mails by the present expensive methods, unless Congress
+makes some provision for a <span class='pagenum'><a name="Page_4" id="Page_4">[4]</a></span>more adequate compensation. A notification
+of similar import has been given by The New York, New Haven &amp; Hartford
+Railroad Company, the principal carrier in New England. Their position
+in this matter will undoubtedly be taken by other roads, because the
+same condition of inadequate compensation prevails upon hundreds of
+small railroads and mail routes, especially in the Southern and
+Western States.</p>
+
+<p>Notwithstanding these facts, a powerful interest, which commands the
+public ear and derives great profit from the one-cent-per-pound rate
+of postage, has, in order to divert public attention from itself, for
+years industriously and systematically circulated false statistics and
+false statements among the people regarding the railroad mail pay, and
+is now circulating them.</p>
+
+<p>The extent to which the public is being deceived regarding the
+railroad mail pay is disclosed daily. In a recent hearing before the
+Senate Committee on Post offices and Post-Roads, Senator Carter of
+Montana said:</p>
+
+<div class="block"><p>"We are all getting letters on this subject. I received the
+other day a letter from a very intelligent lady in Montana
+claiming that the Government is paying to the Northern Pacific
+Railway on that branch line for carrying the mail $97,000 per
+year. On inquiring at the Post Office Department, I find that
+the total compensation of the Northern Pacific Company for mail
+service on that line is $3,070 per year."</p></div>
+
+<p>This state of things was a sufficient reason for the Post Office
+Department to institute the present series of inquiries tending to
+show the space in passenger trains upon the railroads demanded and
+used by the Government for the mails in comparison with the space
+devoted to express and passenger service, and the relative rates of
+compensation in each class of service and the extent to which <span class='pagenum'><a name="Page_5" id="Page_5">[5]</a></span>the
+roads are receiving for carrying the mails the cost to them of
+performing the service. In order to give these facts fair
+consideration, it is not necessary to admit that "space" is, or is
+not, a better and more workable basis for determining what is
+reasonable mail pay than "weight," nor to admit that the companies are
+only entitled to be paid by the Government for the service rendered to
+it the bare cost of rendering that service, that is, to receive back
+the train operating cost. Questions of speed and facilities furnished,
+and the preference character of the traffic and the exceptional value
+of the service, and other elements, must be considered as well as
+space and cost, but that is no reason why the relative proportion of
+space used and the relation of compensation to cost should not be
+ascertained and given due weight, in the consideration of the
+important question of what is adequate mail pay to the railroads.</p>
+
+<p>The following pages are based upon answers to the interrogatories of
+the Post Office Department and contain a statement of the mail service
+performed by the Chicago, Burlington and Quincy Railroad Company, a
+system extending westward from Chicago into eleven different States
+and embracing approximately ten thousand miles of main and branch
+lines.</p>
+
+<p>The two principal tables of interrogatories were sent out under date
+of September 28, 1909, by the Post Office Department as the basis for
+this investigation.</p>
+
+<p>These tables indicate the minute and thorough manner which the
+Department employed in making this inquiry.</p>
+
+<p>Some questions having arisen regarding the meaning and scope of the
+word "authorized" in connection with the returns of space occupied and
+used for the mails in Post Office cars and apartment cars, and in
+certain other features, the Department, under date October 23, 1909,
+issued an important supplementary letter of instructions.</p>
+
+<p>Pursuant to these interrogatories, instructions and requests <span class='pagenum'><a name="Page_6" id="Page_6">[6]</a></span>the
+Burlington Company has filed with the Department the exact and
+detailed statements, train by train and car by car, of the mail
+service upon each of the one hundred and two mail routes on its
+system, large and small, for the month of November, 1909, which were
+thus called for. These answers state the facts and state them in the
+manner prescribed wherever possible. Every inch of space on passenger
+trains and cars which in these tables is shown to be occupied or used
+for mail or express or for passengers is set down from actual
+measurements made, car by car, and not upon any "estimate" or
+"consist" basis.</p>
+
+<p>In the appendix will be found four tables prepared under the direction
+and supervision of Mr. DeWitt which contain the results of this
+investigation into the mail service upon the Burlington, as disclosed
+in these statements.</p>
+
+<p>Exhibit A is a statement of the car facilities or space used in every
+car in service on the road during the month of November for mail, and
+for express or occupied by passengers based upon replies to questions
+prescribed in Form 2601.</p>
+
+<p>Exhibit B is a statement of the station facilities, furnished for the
+mail, prepared on Form 2602.</p>
+
+<p>Exhibit C is a statement of Revenues and Expenses and of train and car
+mileage, prepared on Form 2603.</p>
+
+<p>Exhibit D is a statement of the number, and cost, and present value of
+Post Office cars and Apartment cars, prepared on Form 2605.</p>
+
+<br />
+
+<h4>THE INTEGRITY OF THE RETURNS.</h4>
+
+<p>In November, 1909, all the service rendered in all passenger trains
+and cars of the Burlington system, reduced to a common basis of car
+foot miles (that is, each foot of linear space that was carried one
+mile), amounted to 529,936,590 car foot miles, divided as follows:</p>
+
+<div class="centered"><span class='pagenum'><a name="Page_7" id="Page_7">[7]</a></span>
+<table border="0" cellpadding="2" cellspacing="0" width="40%" summary="car foot miles">
+ <tr>
+ <td class="tdc" width="34%">In Passenger Service.</td>
+ <td class="tdc" width="33%">Mails.</td>
+ <td class="tdc" width="33%">Express.</td>
+ </tr>
+ <tr>
+ <td class="tdc">428,164,920</td>
+ <td class="tdc">62,246,130</td>
+ <td class="tdc">39,525,540</td>
+ </tr>
+ <tr>
+ <td class="tdc">(80.8%)</td>
+ <td class="tdc">(11.75%)</td>
+ <td class="tdc">(7.45%)</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>The original circular of the Post Office Department contained certain
+"notes," to the effect that in reporting the length of postal cars and
+apartment cars, and the space therein used for mails, the railroad
+companies should only report the length or space "authorized" by the
+officials of the Department; also that in reporting space used in cars
+for what is known as the "Closed Pouch Service," the railroads should
+make an arbitrary allowance of six linear inches across the car for
+the first 200 pounds or less of average daily weight of pouch mail and
+three linear inches for each additional 100 pounds.</p>
+
+<p>These directions were modified by the subsequent circular letter of
+the Department, dated October 23, 1909.</p>
+
+<p>This letter, among other things, directs the company to take credit
+for "surplus" space in post office cars and apartment cars, if
+actually used for the storage of mails.</p>
+
+<p>The practical difficulties attending the measurement and proper
+allotment of the space used for the mails in postal and other cars run
+on a passenger train will be better understood when it is known that
+such space is or may be described in at least eight different ways,
+and is actually used on the Burlington road as follows, namely:</p>
+
+<p>1. Space in post office cars specially "authorized" (43.03%).</p>
+
+<p>2. Space in apartment cars specifically "ordered" (20.69%).</p>
+
+<p>3. Space ordered in post office cars operated in lieu of apartment
+cars (4.3%).</p>
+
+<p>4. Additional space actually used for storage of mails when the
+railroad company operates larger post office or apartment cars than
+the authorization calls for (1.5%).</p>
+
+<p><span class='pagenum'><a name="Page_8" id="Page_8">[8]</a></span>5. Space in storage cars actually used for mails (12.87%).</p>
+
+<p>6. Space in baggage cars used for closed pouch mails (4.06%).</p>
+
+<p>7. The return deadhead movement of space ordered and required in one
+direction only (8.35%).</p>
+
+<p>(Ninety-five per cent of all the "space" shown in these returns for
+the Burlington, as used for the mails, comes within the foregoing
+seven classes, as properly authorized space about which no question
+can arise.)</p>
+
+<p>8. "Surplus" space; that is, space furnished to the Government in post
+office and apartment cars in excess of actual requirements (5.2%).</p>
+
+<p>This five per cent is the only portion of the space claimed as used
+for mails regarding which any question can be raised, affecting the
+integrity of these returns.</p>
+
+<p>What is the correct view as to this five per cent?</p>
+
+<p>It is manifestly against the interest of the railroad company to
+furnish space for mails that is not required, and it will never
+furnish such space if it can be avoided. But the "requirements" of the
+Post Office Department are not fixed and certain quantities, by any
+means. It is entirely impracticable for any railroad company to keep
+on hand at all times a supply of cars of all lengths in order to meet
+exactly the requirements of the Department officials.</p>
+
+<p>These statistics have been called for by the Post Office Department to
+enable it to make accurate comparisons between the space used and the
+facilities furnished on passenger trains for the three classes of
+service performed, that is, for express companies, for the Government
+in mail carriage, and for passengers. The point of the whole inquiry
+is this:</p>
+
+<p>Does the Government contribute to the cost of the passenger train
+service upon the railroads of the country its <span class='pagenum'><a name="Page_9" id="Page_9">[9]</a></span>fair share, that is, in
+proportion to the space and facilities it demands and requires the
+companies to furnish for the mails?</p>
+
+<p>In making the comparison all the car space in all passenger trains
+must be measured and tabulated and has been measured and tabulated in
+the tables here submitted.</p>
+
+<p>A passenger car may have seats to accommodate eighty persons; the
+average load it carries may be fifteen persons. But in making up these
+returns of "space," all the empty space in that car is credited as
+passenger space. That car may likewise be loaded only one way and
+returned "dead head," but these returns have credited such return
+movement as passenger space.</p>
+
+<p>The same is true of the express service in these returns. All space in
+all baggage and express cars set aside for the express company's use
+is, in these tables of statistics, credited to express, whether in
+fact loaded or "surplus," or "dead head" space.</p>
+
+<p>How is a comparison possible, unless the space credited to the mails
+is recorded in the same way? As stated above, only five per cent of
+the whole space is involved in the question of "surplus" space, and if
+that five per cent should be entirely thrown out, the percentage
+results would not be materially changed.</p>
+
+<br />
+
+<h4>RESULTS UPON THE BURLINGTON ROAD.</h4>
+
+<p>The Government cannot justly ask a railroad company to carry the mails
+without profit.</p>
+
+<p>The passenger business on the Burlington road is conducted without
+profit if it is charged with the expenses assignable to passenger
+traffic, and a proper proportion of the expenses not thus specifically
+assignable, and a fair share of the taxes and the charges for capital
+in the form of interest on bonds and dividends on stock. The profit in
+the business comes from the freight.</p>
+
+<p><span class='pagenum'><a name="Page_10" id="Page_10">[10]</a></span>This fact gives force to the present inquiry of the Post Office
+Department to determine whether the Government, in proportion to the
+service and facilities it requires from the roads on passenger trains,
+is contributing a fair proportion of the passenger train earnings. If
+the passenger train business, as a whole, is carried on at a loss, the
+Government ought, in fairness, to stand at least its share of the
+loss.</p>
+
+<p>The earnings of the Burlington Company from all passenger train
+service in November were $2,242,099.</p>
+
+<p>The following table shows the earnings from passengers, from mail and
+express, and the space used in passenger trains by the three classes
+of traffic and the proportion of earnings contributed for facilities
+so used:</p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="60%" summary="Earnings">
+ <tr>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Earnings.</i></td>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Car Foot Miles.</i></td>
+ <td class="tdc" width="20%">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">Passengers</td>
+ <td class="tdr">$1,859,839</td>
+ <td class="tdl">(82.95%)</td>
+ <td class="tdr">428,164,920</td>
+ <td class="tdl">(80.80%)</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdr">187,825</td>
+ <td class="tdl">(&nbsp;&nbsp;8.38%)</td>
+ <td class="tdr">39,525,540</td>
+ <td class="tdl">(&nbsp;&nbsp;7.45%)</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mails</td>
+ <td class="tdr bb">194,435</td>
+ <td class="tdl">(&nbsp;&nbsp;8.67%)</td>
+ <td class="tdr bb">62,246,130</td>
+ <td class="tdl">(11.75%)</td>
+ </tr>
+ <tr>
+ <td class="tdl" style="padding-left: 3%;">Total</td>
+ <td class="tdr bt">$2,242,099</td>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdr bt">529,936,590</td>
+ <td class="tdl">&nbsp;</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>This table shows that for each one thousand feet of space used in
+passenger trains the three classes of passenger traffic contributed in
+earnings as follows:</p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="60%" summary="passenger traffic">
+ <tr>
+ <td class="tdl" width="34%">Passengers</td>
+ <td class="tdl" width="33%">$4.34</td>
+ <td class="tdl" width="33%">139.1%</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdl">$4.75</td>
+ <td class="tdl">152.2%</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mails</td>
+ <td class="tdl">$3.12</td>
+ <td class="tdl">100%</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>In proportion to the space occupied and facilities used on passenger
+trains, the Burlington road receives from passengers 39 per cent more
+than the Government pays for mail transportation, and from the Adams
+Express Company 52 per cent more; that is, the express business pays
+the railroad company better than the Government pays for carrying the
+mails by 52 per cent.</p>
+
+<p><span class='pagenum'><a name="Page_11" id="Page_11">[11]</a></span>If the Government had paid to the railroad company as much as the
+express company for each foot of space required and used on passenger
+trains, it would, for November, have paid $101,233 more than it did
+pay, or an increase in annual mail pay of more than a million dollars.</p>
+
+<br />
+<hr />
+<br />
+
+<p>It may be of interest to note that the returns for the Pennsylvania
+System just being filed show the following:</p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="60%" summary="passenger traffic">
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdl"><i>Earnings.</i></td>
+ <td class="tdl"><i>Car Foot Miles.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl" width="34%">Passengers</td>
+ <td class="tdl" width="33%">79.8%</td>
+ <td class="tdl" width="33%">76.2%</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdl">12.6%</td>
+ <td class="tdl">13.7%</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mails</td>
+ <td class="tdl">7.6%</td>
+ <td class="tdl">10.1%</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>For each 1,000 feet of passenger train space used on the Pennsylvania
+the traffic contributed in earnings as follows:</p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="60%" summary=" traffic contributed in earnings">
+ <tr>
+ <td class="tdl" width="34%">Passengers</td>
+ <td class="tdl" width="33%">$4.45</td>
+ <td class="tdl" width="33%">139%</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdl">&nbsp;&nbsp;3.91</td>
+ <td class="tdl">122%</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mails</td>
+ <td class="tdl">&nbsp;&nbsp;3.20</td>
+ <td class="tdl">100%</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>On the Pennsylvania the passenger business is worth to that company 39
+per cent more than the Government mail business, and the express
+business is worth 22 per cent more than the mails, indicating that
+express rates are relatively higher in the West than the East, but
+that neither in the East nor in the West is it a paying business to
+carry the mails at present rates.</p>
+
+<br />
+<br />
+<br />
+<br />
+<hr />
+<span class='pagenum'><a name="Page_12" id="Page_12">[12]</a></span><br />
+
+<h3>IS THE GOVERNMENT PAYING THE RAILROADS FOR CARRYING<br /> THE MAILS THE COST
+OF DOING THE WORK?</h3>
+<br />
+
+<p>No. The Government paid the C. B. &amp; Q. for carrying the mails in
+November $194,435, or at the rate of $2,333,220 annually.</p>
+
+<p>The total operating expenses of the road for that month were
+$5,452,830.</p>
+
+<p>The items of passenger train operating expense strictly assignable
+were as follows:</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="60%" summary="operating expenses">
+ <tr>
+ <td class="tdl" width="60%">Transportation Expense</td>
+ <td class="tdr" width="20%">&nbsp;</td>
+ <td class="tdr" width="20%">$454,208</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Fuel passenger engines</td>
+ <td class="tdr">$132,709</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Salaries passenger engineers</td>
+ <td class="tdr">100,511</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Salaries passenger trainmen</td>
+ <td class="tdr">87,557</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Train supplies, etc.</td>
+ <td class="tdr">55,664</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Injuries to persons</td>
+ <td class="tdr">19,904</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Station employees</td>
+ <td class="tdr">17,160</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Joint yards and terminals</td>
+ <td class="tdr">15,610</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">25,093</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">Maintenance of Equipment</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$107,626</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Repairs, passenger cars</td>
+ <td class="tdr">$67,650</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Depreciation, passenger cars</td>
+ <td class="tdr">39,639</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">337</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">Traffic Expense</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$48,971</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Advertising</td>
+ <td class="tdr">$17,249</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Outside agencies</td>
+ <td class="tdr">16,673</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Superintendence</td>
+ <td class="tdr">10,272</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">4,777</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">Maintenance of Way, etc.<span class='pagenum'><a name="Page_13" id="Page_13">[13]</a></span></td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$12,970</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Buildings and grounds</td>
+ <td class="tdr">$7,053</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Joint tracks, etc.</td>
+ <td class="tdr">4,440</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">1,477</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">General Expense</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$13,580</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Salaries, clerks, etc.</td>
+ <td class="tdr">$8,994</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Insurance</td>
+ <td class="tdr">2,478</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Legal expense</td>
+ <td class="tdr">1,153</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">955</td>
+ <td class="tdr bb">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp3 tdtp">Total</td>
+ <td class="tdr bt tdpt">&nbsp;</td>
+ <td class="tdr bt tdpt">$637,355</td>
+ </tr>
+ <tr>
+ <td class="tdl tdtp" colspan="2">Proportion operating expense not assignable</td>
+ <td class="tdr bb tdpt">$1,278,016</td>
+ </tr>
+ <tr>
+ <td class="tdlp2 tdpt">Total</td>
+ <td class="tdr">&nbsp;</td>
+ <td class="tdr bt tdpt">$1,915,371</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>A large part of the operating expenses of every railroad, such as
+maintenance of roadway, station expense, general office expense and
+the like, are common to both the freight and passenger service, and it
+seems impossible to assign all of them specifically. The Post Office
+Department, in the circular under which the roads are reporting,
+recognizes this condition and calls for the "proportion" of the
+expense "not directly assignable and the basis of such apportionment."</p>
+
+<p>The apportionment of non-assignable expense on the Burlington has been
+made on the basis of train mileage.</p>
+
+<p>In the month of November the mileage of passenger trains was
+forty-five and four-tenths per cent of the total train mileage, and
+the foregoing sum ($1,278,016) of non-assignable expense is forty-five
+and four-tenths per cent of the operating expenses for that month,
+common to both kinds of traffic, and therefore incapable of specific
+assignment to either.</p>
+
+<p><span class='pagenum'><a name="Page_14" id="Page_14">[14]</a></span>These two classes of passenger expense (assignable and non-assignable)
+aggregate $1,915,371 monthly, or at the rate of $22,984,452 per year,
+and 11.75 per cent of this sum, or $2,700,675, is the annual operating
+cost to the Burlington Company of transporting the Government mails.</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="40%" summary="Costs">
+ <tr>
+ <td class="tdl" width="70%">Cost of carrying the mails</td>
+ <td class="tdr" width="30%">$2,700,675</td>
+ </tr>
+ <tr>
+ <td class="tdl">Earnings from carrying the mails</td>
+ <td class="tdr bb">2,333,220</td>
+ </tr>
+ <tr>
+ <td class="tdlp2">Loss</td>
+ <td class="tdr bt">$367,455</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>These figures show that, in proportion to the service rendered, the
+Government paid to that company $367,455 less than the actual cost of
+doing the work, not including anything for taxes, nor for interest
+paid by the company upon its funded debt, which was necessary to be
+paid, in order to preserve the property, to say nothing of a return
+upon the capital represented by the capital stock.</p>
+
+<p>The correct mail's proportion of taxes and interest for the year is
+$634,713, which added to the $367,455 loss above operating expenses,
+shows a loss of $1,002,168:</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="40%" summary="Losses">
+ <tr>
+ <td class="tdl" width="70%">Loss, operating expenses over revenue</td>
+ <td class="tdr" width="30%">$367,455</td>
+ </tr>
+ <tr>
+ <td class="tdl">11.75% of taxes and interest</td>
+ <td class="tdr bb">634,713</td>
+ </tr>
+ <tr>
+ <td class="tdlp2">Annual loss on mails</td>
+ <td class="tdr bt">$1,002,168</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>This takes no account of the annual value at two cents per mile of the
+transportation of inspectors and postal employees, other than clerks
+in charge of the mails ($74,352), nor of clerks in charge of the mails
+($746,340).</p>
+
+<p>These two items of service rendered to the Government by the C. B. &amp;
+Q. road are of the admitted value of $820,692 annually.</p>
+
+<p><span class='pagenum'><a name="Page_15" id="Page_15">[15]</a></span>The railroad company has the same duty and legal responsibility
+towards these clerks as towards passengers.</p>
+
+<br />
+<hr />
+<br />
+
+<p>Is there another fair way of testing this question?</p>
+
+<p>In a letter dated March 2, 1910, from Hon. Frank H. Hitchcock,
+Postmaster-General, to Hon. John W. Weeks, Chairman of the Post Office
+Committee of the House, printed in full herewith, he states it is
+estimated that the average annual cost to the railroads of operating a
+post office car for the Government is $19,710, including $2,049 for
+lighting, heating, repairs, etc., and that the total average pay
+received for the car and its contents including post office car pay,
+is $16,638 per annum, showing a loss in this branch of the service of
+$3,073 per car. There are 1,111 full postal cars in actual service in
+the country, and the loss thereon, therefore, aggregates $3,414,103,
+to say nothing of the 231 postal cars in reserve.</p>
+
+<p>But that is the smaller part of the loss. There were 3,116 apartment
+cars in actual use in 1909, averaging twenty feet in length, and the
+cost of operating each of these, according to Mr. Hitchcock's figures,
+would be one-third of $19,710, or $6,570.</p>
+
+<p>The average haul of apartment cars is 48 miles, and the average load
+in a twenty-foot apartment car is officially stated as 607 pounds,
+making the rate per mile on routes carrying an average daily weight of
+only 607 pounds, $68.40 per annum, and the average earnings,
+therefore, $3,283 per year, an average loss of $3,287 per car and an
+actual loss per year from operating the 3,116 apartment cars of
+$10,642,292, to say nothing of the 639 apartment cars in reserve.</p>
+
+<p>The C. B. &amp; Q. has 76 full post office cars and 104 apartment cars,
+and applying to them the foregoing figures given in Mr. Hitchcock's
+letter, the loss from operating them in 1909 was $575,396, adding to
+which $634,713, the <span class='pagenum'><a name="Page_16" id="Page_16">[16]</a></span>mail's proportion of taxes and interest, that
+must be included in estimating "cost," in which the Government's
+business should share, the estimated loss on the business was
+$1,210,109, compared with $1,002,168, arrived at by charging the
+Government business with 11.75 per cent of the passenger expense, that
+being its proportion of the space used in passenger trains.</p>
+
+<p>The Government should be willing to pay fairly for what it exacts from
+the railroads, and it exacts from the C. B. &amp; Q. 11.75 per cent of its
+passenger train facilities. If it had paid 11.75 per cent of the
+passenger train expenses of the road in 1909, it would have paid
+approximately a million dollars more than it did pay.</p>
+
+<p>The Government which demands from the railroads that they build and
+transport daily over their roads for its benefit 5,100 traveling post
+offices as full postal cars and apartment cars should be willing to
+pay what the Postmaster-General estimates to be the actual cost of
+operating those cars, and a fair proportion of the taxes and interest.</p>
+
+<p>If it had paid such cost in 1909, it would have paid to the C. B. &amp; Q.
+approximately a million dollars more than it did pay.</p>
+
+<br />
+
+<h4>RESULTS ON VARIOUS MAIL ROUTES.</h4>
+
+<p>The foregoing are statements of results on the Burlington System as a
+whole, showing earnings and expenses and facilities furnished to the
+Government mail service.</p>
+
+<p>It may be of interest, and throw light on the situation, to show
+results for November upon several separate mail routes in the system,
+ranging from small routes carrying 200 pounds of mail daily, up,
+through routes carrying weights, respectively, of 1,300, and 8,000,
+and 20,000 pounds daily, to the heaviest route carrying 192,000
+pounds, covering the fast mail service from Chicago to Omaha.</p>
+
+<p><span class='pagenum'><a name="Page_17" id="Page_17">[17]</a></span>Weights of express packages are not kept on separate mail routes and
+statements therefore of express earnings for such separate mail routes
+are necessarily estimated, but, as given in the following tables, they
+are approximately correct and corroborate the comparative results for
+the Burlington system as a whole, which results are based upon exact
+figures for express as well as for mails and for passengers.</p>
+
+<br />
+
+<h4>I.</h4>
+
+<p class="cen">Route 157,030, Kenesaw to Kearney (Nebraska), 24.68 miles. Average
+Daily Weight 216 Pounds.</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="65%" summary="express earnings I.">
+ <tr>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Percentage of Space Occupied.</i></td>
+ <td class="tdc" width="20%"><i>Percentage of Earnings.</i></td>
+ <td class="tdc" width="20%"><i>Should Earn on Basis of Space Used.</i></td>
+ <td class="tdc" width="20%"><i>Did Actually Earn.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Passenger</td>
+ <td class="tdrp">83.79</td>
+ <td class="tdrp">88.90</td>
+ <td class="tdrp">$1,238</td>
+ <td class="tdrp">$1,314</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdrp">9.37</td>
+ <td class="tdrp">6.02</td>
+ <td class="tdrp">139</td>
+ <td class="tdrp">89</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdrp">6.84</td>
+ <td class="tdrp">5.08</td>
+ <td class="tdrp">101</td>
+ <td class="tdrp bb">75</td>
+ </tr>
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp bt tdpt">$1,478</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>The mail earnings on this route are $89 per month, or $3.44 daily. The
+service for the Government is performed in an apartment car fifteen
+feet long, and closed pouch service, four trains carrying mail daily,
+except Sunday, giving an actual return to the railroad of three and a
+half cents per mile run, or about one passenger fare at three cents
+per mile although the Government demands the use of a 15-foot car
+fitted up as a post office in which a postal clerk is carried free,
+and this car must be lighted, heated and kept in repair, and carried
+over the route each way daily, except Sunday.</p>
+
+<p>On this branch the actual earnings on passengers per passenger car are
+55 cents per car mile.</p>
+
+<p>The post office apartment car equals one-quarter of a passenger car,
+and the mail should, on this basis, earn at <span class='pagenum'><a name="Page_18" id="Page_18">[18]</a></span>least 14 cents per mile,
+but it does earn, for all the mail service, at the rate of 3-&frac12; cents
+per mile, less the expense of delivering mail to and from post
+offices.</p>
+
+<p>During the weighing period the mails are carried on 90 days and
+weighed on 90 days, but under the Cortelyou order, these aggregate
+weights are divided by 105 and the result is called the "average" and
+forms the basis of pay on this route for four years.</p>
+
+<p>This mail service in a traveling post office on an expensive railroad
+is paid about one-third the rate per mile that the Government pays to
+a rural route carrier who carries an average of 25 pounds of mail.</p>
+
+<br />
+
+<h4>II.</h4>
+
+<p class="cen">Route 157,028. Odell to Concordia, Kansas. 72 Miles. Average Daily
+Weight, 282 Pounds.</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="65%" summary="express earnings II.">
+ <tr>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Per cent Space</i></td>
+ <td class="tdc" width="20%"><i>Per cent Earnings</i></td>
+ <td class="tdc" width="20%"><i>Should Earn on Space</i></td>
+ <td class="tdc" width="20%"><i>Did Earn.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Passenger</td>
+ <td class="tdrp">80.82</td>
+ <td class="tdrp">81.44</td>
+ <td class="tdrp">$2,482</td>
+ <td class="tdrp">$2,501</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdrp">11.76</td>
+ <td class="tdrp">9.38</td>
+ <td class="tdrp">361</td>
+ <td class="tdrp">288</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdrp">7.42</td>
+ <td class="tdrp">9.18</td>
+ <td class="tdrp">228</td>
+ <td class="tdrp bb">282</td>
+ </tr>
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp bt tdpt">$3,071</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>Mail earnings $288 per month (26 days), or $11 per day.</p>
+
+<p>This service demands a twenty-five-foot apartment car each way for
+which the pay amounts to 7.64 cents per car mile run, or about the
+fares of two passengers at three cents per mile who may occupy one
+seat.</p>
+
+<p>The service is six days per week, but the aggregate weight carried in
+the six days is divided by seven to obtain the Cortelyou "average" on
+which the pay is based.</p>
+
+<p>The payment for a twenty-five-foot traveling post office is a little
+over half the pay per mile for a rural route carrier.</p>
+
+<span class='pagenum'><a name="Page_19" id="Page_19">[19]</a></span><br />
+
+<h4>III.</h4>
+
+<p class="cen">Route 135,012. Streator to Aurora (Ills.). 60 Miles. Average daily
+weight, 1,303 pounds.</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="65%" summary="express earnings III.">
+ <tr>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Per cent Space</i></td>
+ <td class="tdc" width="20%"><i>Per cent Earnings</i></td>
+ <td class="tdc" width="20%"><i>Should Earn on Space</i></td>
+ <td class="tdc" width="20%"><i>Did Earn.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Passenger</td>
+ <td class="tdrp">72.84</td>
+ <td class="tdrp">85.64</td>
+ <td class="tdrp">$4,800</td>
+ <td class="tdrp">$5,643</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdrp">17.38</td>
+ <td class="tdrp">7.51</td>
+ <td class="tdrp">1,145</td>
+ <td class="tdrp">495</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdrp">9.78</td>
+ <td class="tdrp">6.85</td>
+ <td class="tdrp">644</td>
+ <td class="tdrp bb">451</td>
+ </tr>
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp bt tdpt">$6,589</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>Mail earnings (26 days), $495 per month, or $19 per day.</p>
+
+<p>Four trains on this road carry mail daily, two each way, two in a
+twenty-five-foot mail apartment and two in a thirty-foot mail
+apartment, an average earning rate of 7.88 cents per car mile.</p>
+
+<p>The passenger cars on this branch carry an average of 24 passengers
+each, and earn 48 cents per car mile. The average mail apartment
+furnished is half a passenger coach.</p>
+
+<p>These four apartment cars, at the same rate as the passenger cars (24
+cents per mile), would earn $18,029 per year.</p>
+
+<p>The passenger train earnings on the branch are $79,000 a year. The
+mails demand 17.38 per cent of the facilities, and on that basis
+should earn for the company $13,730.</p>
+
+<p>The mail earnings were $5,940, this being the annual compensation
+after a reduction of nine and one-half per cent through the Cortelyou
+order, requiring the aggregate of 90 weighings to be divided by 105 to
+ascertain the "average."</p>
+
+<span class='pagenum'><a name="Page_20" id="Page_20">[20]</a></span><br />
+
+<h4>IV.</h4>
+
+<p class="cen">Route 164,004. Edgemont to Billings (Wyoming). 366 Miles. Average
+Daily Weight, 8,087 Pounds.</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="65%" summary="express earnings IV.">
+ <tr>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Per cent Space</i></td>
+ <td class="tdc" width="20%"><i>Per cent Earnings</i></td>
+ <td class="tdc" width="20%"><i>Should Earn on Space</i></td>
+ <td class="tdc" width="20%"><i>Did Earn.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Passenger</td>
+ <td class="tdrp">85.79</td>
+ <td class="tdrp">89.22</td>
+ <td class="tdrp">$85,476</td>
+ <td class="tdrp">$88,895</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdrp">10.43</td>
+ <td class="tdrp">6.18</td>
+ <td class="tdrp">10,392</td>
+ <td class="tdrp">6,156</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdrp">3.78</td>
+ <td class="tdrp">4.60</td>
+ <td class="tdrp">3,766</td>
+ <td class="tdrp bb">4,583</td>
+ </tr>
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp bt tdpt">$99,634</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>Two 60-foot postal cars are run daily each way.</p>
+
+<p>The mail earnings are $6,156 per month, or $205 per day.</p>
+
+<p>The total earnings of the passenger trains on this road are $1,195,000
+a year, and the mails required 10.43 per cent of the passenger train
+facilities; on this basis they ought to pay $125,000 a year.</p>
+
+<p>These post office cars are hauled 534,000 miles every year. The
+Postmaster-General estimates that the actual cost to the railroads of
+operating a sixty-foot postal car is 18 cents per mile. At this rate
+the Burlington Company should be paid $96,000 a year for the service
+of the postal cars only.</p>
+
+<p>It is, in fact, paid for all the mail service on this road $73,872
+annually.</p>
+
+<span class='pagenum'><a name="Page_21" id="Page_21">[21]</a></span><br />
+
+<h4>V.</h4>
+
+<p class="cen">Route 135,010. Galesburg to Quincy (Ills.). 99.93 Miles. Average Daily
+Weight, 19,727 pounds.</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="65%" summary="express earnings V.">
+ <tr>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Per cent Space</i></td>
+ <td class="tdc" width="20%"><i>Per cent Earnings</i></td>
+ <td class="tdc" width="20%"><i>Should Earn on Space</i></td>
+ <td class="tdc" width="20%"><i>Did Earn.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Passenger</td>
+ <td class="tdrp">69.45</td>
+ <td class="tdrp">79.44</td>
+ <td class="tdrp">$28,864</td>
+ <td class="tdrp">$33,015</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdrp">19.70</td>
+ <td class="tdrp">8.45</td>
+ <td class="tdrp">8,187</td>
+ <td class="tdrp">3,511</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdrp">10.85</td>
+ <td class="tdrp">12.11</td>
+ <td class="tdrp">4,509</td>
+ <td class="tdrp bb">5,034</td>
+ </tr>
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp bt tdpt">$41,560</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>Mail earnings from all sources $3,511 per month, or $117 per day.</p>
+
+<p>The service is performed in three 60-foot postal cars, two 16-foot
+apartments and one 27-foot apartment, each way daily; also one 44-foot
+postal car and one full storage car, daily except Sunday, in addition
+to some space furnished for closed pouches in ordinary baggage cars.</p>
+
+<p>The car space provided for the mails on this route is equivalent to
+ten full sixty-foot cars daily, over the whole length of the route, or
+365,000 car miles a year. At 18 cents per mile the pay would be
+$65,700, whereas the actual pay is only $42,132. If the Government
+paid for the service in proportion to the facilities it demands and
+receives, it would pay $98,244.</p>
+
+<br />
+
+<h4>VI.</h4>
+
+<p class="cen">Route 135,007. Chicago to Burlington (205 Miles). Average Daily
+Weight, 192,540 pounds.</p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="65%" summary="express earnings VI.">
+ <tr>
+ <td class="tdc" width="20%">&nbsp;</td>
+ <td class="tdc" width="20%"><i>Per cent Space</i></td>
+ <td class="tdc" width="20%"><i>Per cent Earnings</i></td>
+ <td class="tdc" width="20%"><i>Should Earn on Space</i></td>
+ <td class="tdc" width="20%"><i>Did Earn.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Passenger</td>
+ <td class="tdrp">73.14</td>
+ <td class="tdrp">74.72</td>
+ <td class="tdrp">$210,134</td>
+ <td class="tdrp">$214,671</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdrp">17.19</td>
+ <td class="tdrp">13.74</td>
+ <td class="tdrp">49,387</td>
+ <td class="tdrp">39,462</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdrp">9.67</td>
+ <td class="tdrp">11.54</td>
+ <td class="tdrp">27,782</td>
+ <td class="tdrp bb">33,170</td>
+ </tr>
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp bt tdpt">$287,303</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p><span class='pagenum'><a name="Page_22" id="Page_22">[22]</a></span>On the basis of space used and facilities provided for the mails, the
+Burlington road is underpaid $119,000 a year on this route.</p>
+
+<p>Two-thirds of the weight of mail is carried in special trains run at
+great speed and unusual expense, for which no extra allowance is made.
+The extension of the route to Omaha is across Iowa, where it is "Land
+Grant," and subject to land grant deductions.</p>
+
+<p>The Government made a "gift" to the company in 1856 of lands amounting
+to 358,000 acres and then valued at $1.25 per acre, or $447,500.</p>
+
+<p>The mail pay deductions to June 1, 1910, on account of this Iowa land
+grant aggregate $1,650,000, and still continue at the rate of $62,000
+a year.</p>
+
+<p>Neither in the foregoing six statements of results upon separate mail
+routes, nor in the general statement of results upon the Burlington
+Road has any allowance been made for the expense to the company of
+what is called the "Mail Messenger Service."</p>
+
+<p>At all points where the post office is not over one-fourth of a mile
+from the railroad station the railroad company must have all the mails
+carried to and from the post office.</p>
+
+<p>What an important item of expense this amounts to appears in the
+following extract from the Report of the Wolcott Commission, which
+states:</p>
+
+<div class="block"><p>"Out of 27,000 stations supplied by messenger service 7,000 are
+paid for by the Department at a cost of between $1,000,000 and
+$1,100,000 per annum, leaving the other 20,000 stations to be
+supplied by and at the expense of the railroads."</p></div>
+
+<p>Investigation has shown that on mail routes, where the average mail
+pay of the railroad company is $900 a year, the average cost of this
+mail messenger service is $400, calculating only $100 as the expense
+for each station where <span class='pagenum'><a name="Page_23" id="Page_23">[23]</a></span>they are required to perform the service.
+There are instances where the company pays in cash each year, for
+delivering the mails between station and post office, considerably
+more than the Government pays for the entire mail service over its
+line of road. There is no such feature in the express service.</p>
+
+<br />
+
+<h4>WHY DO RAILROADS CARRY THE MAILS WITHOUT PROFIT?</h4>
+
+<p>The question is sometimes asked why the railroads continue to carry
+the mails if there is no profit in the business. Carrying the mails is
+not the only traffic which railroads take upon terms that would
+bankrupt them if applied to all their business.</p>
+
+<p>There is no profit in running passenger trains on most railroads; that
+is, the receipts from all the traffic carried on passenger trains are
+not sufficient to pay a train mileage or car mileage share of
+operating expenses and taxes and charges for the use of capital. But a
+large part of this cost of conducting the business of a railroad, such
+as taxes, interest, maintenance of roadway, general office expenses,
+and many others, would continue substantially the same if the
+passenger trains were discontinued. Having the railroad, and its
+taxes, and interest, and maintenance expenses to meet, anyhow, no
+railroad can afford to refuse any income from passenger trains that
+amounts to more than their train operating cost. On the same principle
+they accept low rates per mile as a share of through passenger fares
+which, if applied to all passenger fares, would show a loss. The road
+is there, the trains are running, and the cars only partially loaded;
+the addition of through passengers may not materially increase the
+expense, and the road is better off to accept the business at less
+than the average cost, rather than to reject it. But whatever the
+<span class='pagenum'><a name="Page_24" id="Page_24">[24]</a></span>passenger trains lose must be made up by the freight trains if the
+road is to continue in business.</p>
+
+<p>The constant aim of the managers of the railroad is to secure from
+each class of traffic not only the operating cost peculiar to that
+traffic, but a proportion of the general cost; but business is not
+necessarily rejected on which it is impossible to secure such
+proportion.</p>
+
+<p>Many of the reasons which impel them to run passenger trains without
+profit apply to their acceptance of the Government mails. They
+facilitate the freight business; it is better to carry them at a loss
+than not to carry them at all.</p>
+
+<p>But is that any reason why the Government should not pay fair value
+for what it receives? Is it good policy for the Government to force
+upon the companies the alternative of carrying the mails at a loss or
+refusing to carry them at all?</p>
+
+<p>What are the mails?</p>
+
+<p>They are the letters and packets that are conveyed from one post
+office to another under public authority.</p>
+
+<p>Who conveys them? The railroads convey nine-tenths of them.</p>
+
+<p>The railroads are the mail service of this country. The Post Office
+Department states that it receives from the people who use the mails
+eighty-four dollars on every one hundred pounds of letters and post
+cards. Who makes that money for them? The railroads. The railroads
+convey those letters and cards from post office to post office&mdash;not
+the Government.</p>
+
+<p>For a service like that the Government can afford to pay.</p>
+
+<p>What does it pay?</p>
+
+<p>On the great bulk of the business the railroad companies which do the
+work and earn the money receive less than two dollars a hundred. On
+every pound of first-class mail the Government collects eighty-four
+dollars a hundred.</p>
+
+<p><span class='pagenum'><a name="Page_25" id="Page_25">[25]</a></span>The fact that the Congress, for purposes of general education or other
+reasons, thinks it is good public policy to carry the magazines and
+other second-class matter at one dollar a hundred is something about
+which the railroads have nothing to do and nothing to say.</p>
+
+<p>The mail pay of the railroads has been reduced in the past four years
+more than eight million dollars a year. Part of this was done by act
+of Congress, but the greater part came from the arbitrary and illegal
+Cortelyou order.</p>
+
+<p>These reductions were made without any hearing being granted to the
+railroads. Hearings were refused by the Committee which reduced the
+pay three and a half millions, and no pretense of a hearing was made
+by Secretary Cortelyou when his autocratic order was issued reducing
+the mail pay approximately five million dollars a year. This order was
+an arbitrary and unwarranted and illegal exercise of executive power.</p>
+
+<p>The last hearing allowed to the railroad companies on this subject was
+by the Wolcott Commission, 1897 to 1900, composed of eminent Senators
+and Representatives. They reported, after two years' investigation,
+that the mail pay was reasonable and should not be reduced. Upon the
+question whether railroads should be asked to carry the mails at a
+loss their report expressed the following views:</p>
+
+<div class="block"><p>"It seems to the Commission that not only justice and good
+conscience, but also the efficiency of the postal service and
+the best interests of the country demand that the railway-mail
+pay shall be so clearly fair and reasonable that while, on the
+one hand, the Government shall receive a full <i>quid pro quo</i> for
+its expenditures and the public treasury be not subjected to an
+improper drain upon its funds, yet, on the other hand, the
+Railway Mail Service shall bear its due proportion of the
+expenses incurred by the railroads in the maintenance of their
+organization and business as well as in the operations of their
+mail trains.</p>
+
+<p><span class='pagenum'><a name="Page_26" id="Page_26">[26]</a></span>"The transaction between the Government and the railroads should
+be, and in the opinion of the Commission is, a relation of
+contract; but it is a contract between the sovereign and a
+subject as to which the latter has practically no choice but to
+accept the terms formulated and demanded by the former; and,
+therefore, it is incumbent upon the sovereign to see that it
+takes no undue advantage of the subject, nor imposes upon it an
+unrighteous burden, nor 'drives a hard bargain' with it. The
+Commission, therefore, believes that the determination whether
+the present railway mail pay is excessive or not should be
+reached, as near as may be, upon a business basis, and in
+accordance with the principles and considerations which control
+ordinary business transactions between private individuals."</p></div>
+
+<br />
+
+<h4>THE POSTAL CAR PAY.</h4>
+
+<p>The wide credence which has been given to the statement that the
+Government is paying to the railroads an annual rent for postal cars
+equal to the cost of building them is remarkable.</p>
+
+<p>The Government does not pay a rental for any car. The idea is an
+erroneous one, and is based upon ignorance regarding the payment of
+what is called "Post Office Car Pay."</p>
+
+<p>Originally, the mail business on railroads was the transportation of
+mail bags, and was essentially a freight traffic. But its character
+has entirely changed.</p>
+
+<p>The business now consists almost wholly in providing moving post
+offices, expensive to build and expensive to operate, in which the
+average weight for which pay is received is about two tons in full
+postal cars and six hundred pounds in apartment cars.</p>
+
+<p>The Post Office Department weighed all the mails carried in all postal
+cars and apartment cars in the country during October, 1907, and the
+average weight of mail on <span class='pagenum'><a name="Page_27" id="Page_27">[27]</a></span>the Burlington road loaded in a forty-foot
+postal car was found to be less than 2,000 pounds; in fifty-foot cars
+it was 2,500 pounds; and in sixty-foot cars it averaged less than
+4,500 pounds; in apartment cars it was 607 pounds.</p>
+
+<p>The average load carried in an ordinary freight car on the Burlington
+road is from 36,000 to 40,000 pounds. Railroads, as a rule, haul a ton
+of paying or productive freight for every ton of dead or unproductive
+load. In the Government mail business they carry nineteen tons of dead
+weight for each ton of paying weight.</p>
+
+<p>These cars are fitted up as post offices and are used for distribution
+en route in order to expedite and facilitate the prompt transmission
+and delivery of mails. They largely take the place of very expensive
+distribution offices in cities.</p>
+
+<p>The railroads provide cars for freight traffic, but refused to build,
+and maintain, and haul these moving post offices with their clerks and
+paraphernalia, without pay. That is the post office car pay of which
+so much is said.</p>
+
+<p>The truth regarding this feature of the subject is clearly stated in
+the following recent letter from the Postmaster-General:</p>
+
+<br />
+
+<p class="cen"><span class='pagenum'><a name="Page_28" id="Page_28">[28]</a></span>(<i>Congressional Record</i>, March 5, 1910, 61st Congress, Second Session,
+Vol. 45, No. 61, Page 2852.)</p>
+
+<div class="block"><p class="schang" style="padding-left: 4em; padding-right: 4em; text-indent: -2em;">Letter of the Postmaster-General Relative to the Cost of
+Furnishing and Operating Railway Post Office Cars.</p>
+
+<p class="right"><span class="sc">"Office of the Postmaster-General,&nbsp;&nbsp;&nbsp;&nbsp;<br />
+Washington, D.C.</span>, March 2, 1910.</p>
+
+<p class="noin">"Hon. <span class="sc">John W. Weeks</span>,<br />
+<span class="datepad3"><i>Chairman Committee on Post Offices and</i></span><br />
+<span class="datepad4"><i>Post Roads, House of Representatives</i>.</span></p>
+
+<p>"<span class="sc">My Dear Sir</span>: In response to your inquiry made of the
+Second Assistant Postmaster-General in regard to the cost of
+maintaining and operating railway post office cars and its
+relation to the compensation received by railroad companies for
+the same and your reference to the speech delivered by Senator
+Vilas on the subject in the United States Senate, February 13,
+1895, I have the honor to advise you as follows:</p>
+
+<p>"The Department has not at this time sufficient information upon
+this point to give from its own records a reliable estimate. As
+you are aware, we have recently asked railroad companies to
+submit answers to inquiries with reference to the cost of
+operating the mail service, and it is believed that when these
+shall have been received we will be in a position to furnish
+such information. Inasmuch, however, as it may be of importance
+to you to have estimates made from time to time by others and
+such incomplete information as we have at present, I submit the
+following:</p>
+
+<p>"The cost of operating a railway post office car has been
+variously estimated (but not officially by the Department) as
+from 15 to 30 cents a car mile. The average run per day of such
+a car is about 300 miles. Estimating the cost at 18 cents a car
+mile, the total <span class='pagenum'><a name="Page_29" id="Page_29">[29]</a></span>cost of operating such car for one year would
+be $19,710.</p>
+
+<p>"The specific items which constitute this total cost are not
+definitely known to the Department. However, as to the cost of
+lighting, cleaning, repairs, etc., the General Superintendent of
+Railway Mail Service furnished the following estimates before
+the Commission to investigate the postal service in 1899, viz.:
+Lighting, $276; heating, $365; cleaning, water, ice, oil, etc.,
+$365; repairs, $350; proportion of original cost of car
+(estimating the life of a car at fifteen years and the original
+cost at $6,000), $400; total, $1,756. Recent inquiry gives the
+following as the approximate cost of maintaining a car at the
+present time: Lighting (electric), $444; heating, $150;
+cleaning, $360; repairs, $300; oil and brasses, $120; interest
+on cost of car (at $7,500), $300; annual deterioration
+(estimating the life of a car at twenty years), $375; total,
+$2,049. These figures give the cost of a car built according to
+the Department's standard specifications. The cost of modern
+steel cars being built by some of the railroad companies is from
+$14,000 to $15,000.</p>
+
+<p>"The compensation received by a railroad company for operating a
+car and carrying the mails in it would be approximately as
+follows:</p>
+
+<p>"The pay for a 60-foot car at $40 a track mile per annum, for a
+track mileage of 150 miles, would be $6,000. The average load of
+a 60-foot car, according to statistics obtained recently, is
+2.83 tons. The rate per ton of an average daily weight of 50,000
+pounds carried over the route is $25.06. At this rate the
+company would receive $10,637.97 per annum for the average load
+of mail hauled in the car. This sum added to the specific rate
+for the railway post office car ($6,000), makes the total pay
+for the car and its average load $16,637.97 per annum.</p>
+
+<p>"Senator Vilas' argument was based upon the theory that the
+rates fixed for railroad transportation alone, based on the
+weights of the mails carried, are adequate compensation for all
+services rendered, including the operation of railway post
+office cars, and <span class='pagenum'><a name="Page_30" id="Page_30">[30]</a></span>that, therefore, the railroad companies would
+be required to operate postal cars owned by the Post Office
+Department for the compensation allowed by law for the weight of
+mails alone, including apartment-car space and facilities. Such
+theory is not justified by the facts, as will appear from the
+following:</p>
+
+<p>"A careful perusal of the debates in both Houses of Congress
+which led to the enactment of the present law fixing the rate of
+pay for railroad transportation of the mails and for railway
+post office cars clearly indicates that the additional
+compensation for railway post office cars was intended to cover
+the additional expense imposed upon the railroad companies for
+building, maintaining, and hauling such cars. The companies at
+that time insisted that these cars, which were practically
+traveling post offices, did not carry a remunerative load, and
+that therefore the amount of pay, based on weight, did not
+compensate them for their operation. This led to the specific
+appropriation for railway post office cars. In this connection
+it should be borne in mind that the purpose of the railway post
+office car is to furnish ample space and facilities for the
+handling and distribution of mails en route. Therefore, the
+space required is much greater than would be required for merely
+hauling the same weight of mails.</p>
+
+<p>"In regard to any proposal for Government ownership of postal
+cars, other facts as well as the above should be given
+consideration. Such cars must be overhauled, cleaned, and
+inspected daily. It would be necessary to either arrange with
+the railway companies for this service or for the Department to
+employ its own inspectors, repair men, and car cleaners at a
+large number of places throughout the country, which would
+probably be more expensive than the cost to the railway
+companies in that respect at present. It would hardly be
+feasible to establish a Government repair shop. Therefore, the
+Department would be compelled to use the shops of the several
+railway companies throughout the country. Without the closest
+supervision and attention of the Government's inspectors it
+could scarcely be expected that our cars would <span class='pagenum'><a name="Page_31" id="Page_31">[31]</a></span>receive the same
+consideration in railroad shops as those owned by the railway
+companies. These shops are frequently congested, and it is
+probable that the railroad work would be given the preference.</p>
+
+<p class="right"><span class="datepad5">"Yours very truly,</span><br />
+<span class="sc datepad">"Frank H. Hitchcock,</span><br />
+<span class="datepad2">"<i>Postmaster-General</i>."</span></p>
+</div>
+
+<p>The Wolcott Commission carefully investigated the whole subject of
+Postal Car Pay and their conclusions regarding this form of
+compensation and its reasonableness are set forth in their report in
+the following language:</p>
+
+<div class="block"><p>"Until a comparatively short time prior to 1873 the distribution
+of the mails in transitu was unknown. Prior to the late sixties
+the railroads simply transported the mails, which were delivered
+at the post offices and there distributed. Accordingly, 'weight'
+as the basis of compensation was at the time of its adoption and
+long thereafter entirely adequate.</p>
+
+<p>"For a few years, however, prior to 1873 the distribution of the
+mails in transitu had been practiced to a sufficient extent to
+satisfy the Post Office Department and Congress that it was a
+desirable innovation and a branch of the postal service that
+should be very much enlarged. But it was recognized that if the
+railroads were not only to transport the mail itself, but also
+to supply, equip, and haul post offices for the distribution of
+the mails, the compensation upon weight basis that had obtained
+up to that time was not entirely adequate and just, and
+therefore the law of 1873, as already indicated, contained a
+provision allowing additional compensation for railway post
+office cars. At first these cars were mostly not exceeding 40 or
+45 feet in length and of light construction, similar to baggage
+and express cars.</p>
+
+<p>"From the policy of the Department, however, of constantly
+demanding better and better facilities from the railroads and
+the introduction of every improvement that could be discovered,
+it has come to pass that, <span class='pagenum'><a name="Page_32" id="Page_32">[32]</a></span>today, the railroad post office cars,
+with the exception of a few obsolete ones that are being
+discontinued as rapidly as practicable, are elaborate
+structures, weighing between 90,000 and 100,000 pounds; built as
+strongly and fitted up, so far as suitable to the purpose for
+which it is intended, as expensively as the best Pullman and
+parlor cars; costing from $5,200 to $6,500; maintained at a cost
+of $2,000 per year; traveling on an average of 100,000 miles per
+annum; provided with the very best appliances for light, heat,
+water, and other comforts and conveniences; placed in position
+for the use of the postal authorities from two and a half to
+seven hours before the departure of the train upon which they
+are to be hauled, and owing to the small space allowed in them
+for the actual transportation of the mails, accompanied on the
+denser lines by storage cars for which no additional
+compensation is paid by the Government and on the less dense
+lines the larger bulk of mails is carried in the baggage cars
+without additional compensation for the car.</p>
+
+<p>"These cars are constructed and fitted up by the railroads in
+accordance with plans and specifications furnished by the
+Department, and the amount of mail transported therein is
+determined exclusively by the postal authorities. From these two
+facts it results that the railroad must haul 100,000 pounds of
+car when the weight of the mail actually carried therein is only
+from 3,500 to 5,000 pounds&mdash;often very much less, and
+occasionally somewhat more.</p>
+
+<p>"Taking in view all these facts, as disclosed by the testimony
+filed herewith, we are of opinion that the 'prices paid * * * as
+compensation for the postal-car service' are not excessive, and
+recommend that no reduction be made therein so long as the
+methods, conditions, and requirements of the postal service
+continue the same as at present."</p></div>
+
+<span class='pagenum'><a name="Page_33" id="Page_33">[33]</a></span><br />
+
+<h4>MAIL RATES AND EXPRESS RATES.</h4>
+
+<p>No feature of this question has been more persistently misrepresented
+than the relative value to the railroads of the mail business and the
+express business.</p>
+
+<p>As elsewhere shown, the express business is 52 per cent more valuable
+to the Burlington road than the Government mails on the mere basis of
+space used and facilities furnished in passenger trains. There are
+many other considerations which increase this disparity of value in
+favor of the express, but reference to them is omitted in order to
+direct public attention to the following statements of the
+Postmaster-General in his recent letter upon the subject:</p>
+
+<br />
+
+<p class="cen">(<i>Congressional Record</i>, March 4, 1910, 61st Congress, Second Session,
+Vol. 45, No. 60, Page 2802.)</p>
+
+<div class="block"><p class="schang">Letter of the Postmaster-General Relative to the Service
+Rendered by the Railroad Companies in Connection With the Mails
+and With Express.</p>
+
+<p class="right">"<span class="sc">Office of the Postmaster-General,<br />
+"Washington, D.C.</span>, January 31, 1910.</p>
+
+<p class="noin">"Hon. <span class="sc">John W. Weeks</span>,<br />
+<span class="datepad3"><i>Chairman Committee on Post Offices and</i></span><br />
+<span class="datepad4"><i>Post Roads, House of Representatives</i>.</span></p>
+
+<p>"<span class="sc">My Dear Sir</span>: In response to your inquiry as to the
+difference between the service rendered the Post Office
+Department by railroad companies in the carriage and handling of
+the mails, and that rendered express companies, I would state
+that from such information as we have been able to obtain in
+regard to the service rendered to express companies, the
+difference is substantially as follows:</p>
+
+<p><span class='pagenum'><a name="Page_34" id="Page_34">[34]</a></span>"The Post Office Department requires the railroad company to
+take the mail from the post office wherever the office is within
+80 rods of the depot, and the company has an agent, and in many
+cases to perform the terminal service regardless of the distance
+between the post office and the station. Wherever the terminal
+service is taken up by the Department, by means of regulation or
+screen-wagon service, the contractor delivers the mail at a
+specified place at the depot, and from that point the railroad
+employees transport it to the cars, and if the amount is so
+great that it would impose a hardship upon the postal employees
+to load and store this mail, the railroad company is called upon
+to furnish porters to do the work. Where the mail messenger or
+contractor can drive direct to the cars, he does so. The express
+companies haul all of their matter to the railroad stations and
+put it in the cars, using their own employees and their own
+trucks.</p>
+
+<p>"The cars furnished the Post Office Department and those
+furnished the express companies differ very materially. The
+former are built according to specifications furnished by the
+Department, and are fully equipped with letter cases, paper
+racks, drawers, and lockers for registered mail and supplies,
+and all of the equipment necessary for the distribution of mail
+en route. The cars furnished the express companies have very
+little, if any, interior furnishings, and are more like the cars
+used for the transportation of baggage. In both cases the cars
+used are owned by the railroad company.</p>
+
+<p>"The number of employees transported for the Post Office
+Department is very much greater than for the express companies.
+There are frequently five or six clerks in the postal cars, and
+on fast mail trains, where there are two or three working cars
+to a train, the number runs up as high as 23. The express seldom
+requires more than two men in a car.</p>
+
+<p>"The Post Office Department claims as much space at depots
+without specific payment therefor as may be required for the
+storing and handling of mail in transit. The express companies
+are required to pay the railroad companies for all space used at
+depots.</p>
+
+<p><span class='pagenum'><a name="Page_35" id="Page_35">[35]</a></span>"On smaller lines a separate apartment must be furnished for the
+mails other than baggage mails. The express matter is usually
+placed in the baggage car.</p>
+
+<p>"Upon arrival at terminals the railroad company may be required
+to unload a mail car, if the quantity is such as to impose a
+hardship upon the clerks, and to see that it is loaded into the
+contractor's wagons; or, if the terminal service devolves upon
+the railroad company, that it is delivered into the post office.
+The express company unloads and handles its own matter.</p>
+
+<p>"The railroad and express companies frequently use a joint
+employee to handle baggage and express, thereby economizing in
+cost of help. That can very seldom be done in connection with
+the postal service.</p>
+
+<p>"The railroad company has charge of all baggage mails in transit
+and receives them into and delivers them from the cars. It also
+handles other mails when necessary to transfer them between cars
+or trains. It is held responsible for reasonable care in their
+transportation. Deductions are made for failures to perform
+service according to contract, and fines are imposed for
+delinquencies. The company is required to keep a record of all
+pouch mails carried on trains in charge of their employees and
+handled at stations where more than one regular exchange pouch
+is involved and no mail transfer clerk is located, and to
+prepare and forward shortage slips when a pouch is due and not
+received. They are required to make monthly affidavits as to
+performance of service. It is understood that the company never
+assumes control of express matter. The Department is not
+informed as to the terms of contracts between railroad and
+express companies, and therefore can not state what
+responsibility is imposed as to transportation.</p>
+
+<p>"Mail cranes for the exchange of mail at points where trains do
+not stop are erected and kept in repair by and at the expense of
+the railroad company, whose employees must hang the mail bag on
+the crane and adjust it for catching at points where the
+company <span class='pagenum'><a name="Page_36" id="Page_36">[36]</a></span>provides side service. The mail catchers are also
+furnished by them. No service of this character is rendered
+express companies.</p>
+
+<p>"A railroad company is required by law to carry the mails upon
+any train that may be run, when so ordered by the
+Postmaster-General, without extra charge therefor, and as a
+result the mails are carried on the fastest trains and with
+great frequency. Express matter is not as a rule carried on the
+fast limited passenger trains, nor with the frequency with which
+mails are carried.</p>
+
+<p>"In this connection your attention is invited to pages 84 to 94,
+516, 517, 860 to 863, part 1, and pages 687 to 696, part 2, of
+the testimony before the Congressional Commission which
+investigated the postal service in 1900&mdash;Wolcott-Loud
+Commission.</p>
+
+<p class="right"><span class="datepad5">"Yours very truly,</span><br />
+<span class="sc datepad">"F. H. Hitchcock,</span><br />
+<span class="datepad2">"<i>Postmaster-General</i>."</span></p>
+</div>
+
+<p>The Government does not own any railroad, but, under the present
+system, the Post Office Department dictates to the railroad companies
+upon what passenger trains and in what kind of cars the mails shall be
+carried. It insists on such space and facilities as it deems necessary
+for the mails being furnished on the fastest and most expensive trains
+and demands that these trains keep their fast schedules; this means
+that all other trains on the road are side-tracked and delayed
+whenever that is necessary in order to expedite the mails.</p>
+
+<p>There are no such features in the express business.</p>
+
+<p>Demanding a preference traffic, the Government ought to be willing to
+pay for it more than express rates. In fact, it pays much less than
+express rates.</p>
+
+<p>The ablest and most competent witness who appeared before the Wolcott
+Commission on this subject was Henry S. Julier, Vice-President and
+General Manager of the <span class='pagenum'><a name="Page_37" id="Page_37">[37]</a></span>American Express Company, who said: "Without
+question, the Government has the cheaper service by far."</p>
+
+<p>Mr. Julier further stated that seven pounds is the average weight of
+packages sent by express, and the seven pound package is the typical
+express package, and therefore the earnings from carrying such
+packages are the true index of the rates actually received. Some
+railroads receive as their compensation fifty per cent of the express
+company's earnings; the C. B. &amp; Q. receives fifty-seven and a half per
+cent.</p>
+
+<p>Mr. Julier was asked by the Commission to file statements showing from
+the rates in force exactly the revenue received per hundred-weight by
+the railroad company from the express in comparison with the mail
+rates. He filed the following:</p>
+
+<p class="cen"><span class='pagenum'><a name="Page_38" id="Page_38">[38]</a></span><i>Table Showing Rates Received by Railways Per Hundred-weight for Mails
+and Rates Received for Express Between Points Named.</i></p>
+
+<div class="block">
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="90%" summary="Rates Received">
+ <tr>
+ <td class="tdl" width="29%">&nbsp;</td>
+ <td class="tdl" width="13%">Distance.</td>
+ <td class="tdl1" width="29%">MAIL.<br /> Rate per 100 pounds allowed railroad companies under last weighing, including the pay for post office cars.</td>
+ <td class="tdl1" width="29%">EXPRESS.<br /> 50 per cent of express companies' earnings on fourteen 7-pound packages weighing in the aggregate 100 pounds, yields the railroad companies the rate per 100 pounds noted below.</td>
+ </tr>
+ <tr>
+ <td class="tdl">New York to</td>
+ <td class="tdrp3">&nbsp;</td>
+ <td class="tdrp3">&nbsp;</td>
+ <td class="tdrp3">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Buffalo</td>
+ <td class="tdrp">440</td>
+ <td class="tdrp3">$1.58</td>
+ <td class="tdrp3">$2.80</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Chicago</td>
+ <td class="tdrp">980</td>
+ <td class="tdrp3">3.57</td>
+ <td class="tdrp3">4.55</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Omaha</td>
+ <td class="tdrp">1,480</td>
+ <td class="tdrp3">5.38</td>
+ <td class="tdrp3">5.95</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Indianapolis</td>
+ <td class="tdrp">906</td>
+ <td class="tdrp3">3.27</td>
+ <td class="tdrp3">4.55</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Columbus</td>
+ <td class="tdrp">761</td>
+ <td class="tdrp3">2.49</td>
+ <td class="tdrp3">3.85</td>
+ </tr>
+ <tr>
+ <td class="tdlp">East St. Louis</td>
+ <td class="tdrp">1,171</td>
+ <td class="tdrp3"> 4.38</td>
+ <td class="tdrp3"> 4.90</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Portland, Me.</td>
+ <td class="tdrp"> 347</td>
+ <td class="tdrp3"> 1.33</td>
+ <td class="tdrp3"> 2.80</td>
+ </tr>
+ <tr>
+ <td class="tdl">Chicago to</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp3">&nbsp;</td>
+ <td class="tdrp3">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Milwaukee</td>
+ <td class="tdrp">85</td>
+ <td class="tdrp3">.34</td>
+ <td class="tdrp3">2.10</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Minneapolis</td>
+ <td class="tdrp">421</td>
+ <td class="tdrp3">1.83</td>
+ <td class="tdrp3">3.85</td>
+ </tr>
+ <tr>
+ <td class="tdlp">New Orleans</td>
+ <td class="tdrp">922</td>
+ <td class="tdrp3">5.27</td>
+ <td class="tdrp3">5.95</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Detroit</td>
+ <td class="tdrp">284</td>
+ <td class="tdrp3">1.34</td>
+ <td class="tdrp3">2.80</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Cincinnati</td>
+ <td class="tdrp">306</td>
+ <td class="tdrp3">1.20</td>
+ <td class="tdrp3">3.15</td>
+ </tr>
+ <tr>
+ <td class="tdl">Cincinnati to</td>
+ <td class="tdrp">&nbsp;</td>
+ <td class="tdrp3">&nbsp;</td>
+ <td class="tdrp3">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">St. Louis</td>
+ <td class="tdrp">374</td>
+ <td class="tdrp3">1.61</td>
+ <td class="tdrp3">3.15</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Chicago</td>
+ <td class="tdrp">306</td>
+ <td class="tdrp3">1.20</td>
+ <td class="tdrp3">3.15</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Cleveland</td>
+ <td class="tdrp">263</td>
+ <td class="tdrp3">1.26</td>
+ <td class="tdrp3">2.80</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>Since the filing of these statistics, the rates paid to
+railroads for carrying the mails have been reduced almost a
+fifth.</p>
+
+<p>The statements of the Postmaster-General and the statistics
+confirm the evidence of these returns that the <span class='pagenum'><a name="Page_39" id="Page_39">[39]</a></span>express business
+is much more valuable to railroad companies than the Government
+mail business.</p>
+
+<p class="right"><span class="sc datepad">W.W. Baldwin,</span><br />
+<span class="datepad2"><i>Vice-President</i>.</span></p>
+
+<p class="noin"><span class="sc">John DeWitt,</span><br />
+<span class="datepad3"><i>General Mail Agent</i>.</span><br />
+<br />
+<span class="sc">May, 1910.</span></p></div>
+
+<br />
+<br />
+<br />
+<br />
+<hr />
+<span class='pagenum'><a name="Page_40" id="Page_40">[40]</a></span><br />
+
+<h3>APPENDIX.</h3>
+<br />
+
+<p class="cen"><i>Exhibit A.</i></p>
+
+<p class="cen">[Form 2601.]</p>
+
+<p>There are on file in the Post Office Department one hundred and two
+separate statements showing, for the month of November as to each mail
+route on the Burlington system, the space occupied and used for mail
+and for express and for passengers.</p>
+
+<p>In order to make a comparison it was, of course, necessary to reduce
+each item of space used in each car to a common basis of feet, and the
+following table shows what are the actual facilities furnished in
+passenger trains for the three classes of traffic reduced to linear
+car-foot space:</p>
+
+<br />
+
+<p class="cen"><i>Car Foot Mileage.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="60%" summary="Car Foot Mileage">
+ <tr>
+ <td class="tdc" width="33%"><i>Mail.</i></td>
+ <td class="tdc" width="34%"><i>Passengers.</i></td>
+ <td class="tdc" width="33%"><i>Express.</i></td>
+ </tr>
+ <tr>
+ <td class="tdc">62,246,130</td>
+ <td class="tdc">428,164,920</td>
+ <td class="tdc">39,525,540</td>
+ </tr>
+ <tr>
+ <td class="tdc">(11.75%)</td>
+ <td class="tdc">(80.8%)</td>
+ <td class="tdc">(7.45%)</td>
+ </tr>
+</table>
+</div>
+
+<br />
+<br />
+
+<p class="cen"><span class='pagenum'><a name="Page_41" id="Page_41">[41]</a></span><i>Exhibit B.</i></p>
+
+<p class="cen">[Form 2602.]</p>
+
+<p class="cen"><i>Station Facilities Furnished for the Mails and Express and the Value
+of Other Items of Service Rendered.</i></p>
+
+<br />
+
+<p class="cen"><i>Mail Expense.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="60%" summary="Mail Expense">
+ <tr>
+ <td class="tdl" width="80%">Monthly Cost of Handling Mail at Stations, labor, etc.</td>
+ <td class="tdr" width="20%">$14,241.67</td>
+ </tr>
+ <tr>
+ <td class="tdl">Monthly rental value of mail rooms in stations</td>
+ <td class="tdrvb">1,008.61</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Monthly rental value of tracks occupied by mail cars for advance distribution</td>
+ <td class="tdrvb">157.69</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Cost of lighting and heating mail cars for advance
+ distribution</td>
+ <td class="tdrvb">114.25</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Value of 309,827 miles of free transportation to post
+ office employees, not including postal clerks in
+ charge of mail</td>
+ <td class="tdrvb">6,196.54</td>
+ </tr>
+ <tr>
+ <td class="tdl">Switching mail cars for advance distribution</td>
+ <td class="tdrvb bb">2,795.80</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Total for November</td>
+ <td class="tdrvb bt">$24,514.56</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>The foregoing does not include the rental value of space furnished by
+the railroad company to the Government for handling mails and mail
+trucks on station platforms, and for storing the mails on platforms at
+large terminals. This is a large item, but statistics of such space
+used were not called for. At Chicago Station platform space to the
+amount of over 6,500 square feet is devoted exclusively to mails
+handled by the Burlington and Pennsylvania.</p>
+
+<p>In addition to the foregoing, the Burlington Company transported on
+its trains during November postal clerks in charge of mail for the
+Government a distance of 3,109,747 miles in the aggregate.</p>
+
+<p>If the Government had paid their fare at two cents per mile the amount
+paid would have been $62,174.94.</p>
+
+<p><span class='pagenum'><a name="Page_42" id="Page_42">[42]</a></span>These items of station facilities and other service rendered to the
+Government for the mails amounted to $86,689 for November, or at the
+rate of more than one million dollars annually.</p>
+
+<br />
+
+<p class="cen"><i>Express Expense.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="60%" summary="Express Expense">
+ <tr>
+ <td class="tdl hang" width="80%">Rental value of space in station buildings used for
+ express, for which no rent is paid</td>
+ <td class="tdrvb" width="20%">$488.68</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Rental value of tracks used for advance loading of express</td>
+ <td class="tdrvb">191.11</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Value of 42,298 miles of free transportation to
+ Express Company officials and employees at two cents per mile.</td>
+ <td class="tdrvb bb">885.96</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">&nbsp;</td>
+ <td class="tdrvb bt"> $1,565.75</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>In addition to the foregoing, the agents and employees of the railroad
+company in the month of November rendered service at stations in
+handling express and in other ways for the Express Company to the
+amount of $10,274, but the Express Company paid to the same persons
+$14,538 in commissions.</p>
+
+<p>The Express Company also shared in the salaries paid to certain
+baggage men and other joint train employees in November to the amount
+of $7,480, in addition to the payment of commissions, as aforesaid.</p>
+
+<p>All the items of expense to the railroad company on account of the
+express in the way of space furnished and free transportation to
+employees, and services of station agents, amount to $11,840, while
+the cash payments by the Express Company to the railroad Company
+indirectly, through payments in commissions to station agents and the
+salaries of baggage men amounts to $22,018, a pecuniary gain or income
+from express of $10,178 per month, or at the rate of $124,136
+annually, compared with a large outgo annually on account of the mails
+as shown in the foregoing items.</p>
+
+<br />
+<br />
+
+<p class="cen"><span class='pagenum'><a name="Page_43" id="Page_43">[43]</a></span><i>Exhibit C.</i></p>
+
+<p class="cen">[Form 2603.]</p>
+
+<p class="cen"><i>Revenues and Expenses and Train and Car Mileage.</i></p>
+
+<p class="cen"><i>Revenues.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="1" cellspacing="0" width="60%" summary="Express Expense">
+ <tr>
+ <td class="tdl hang" width="80%">Receipts in November from all passenger traffic (not including Mail and Express)</td>
+ <td class="tdrvb" width="20%">$1,859,839</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Receipts from Express</td>
+ <td class="tdrvb">187,825</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Receipts from Mails</td>
+ <td class="tdrvb bb">194,435</td>
+ </tr>
+ <tr>
+ <td class="tdlp3">Total</td>
+ <td class="tdrvb bt">$2,242,099</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p class="cen"><i>Expenses.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="1" cellspacing="0" width="60%" summary="Express Expense">
+ <tr>
+ <td class="tdl hang" width="80%">Total Operating Expenses of the road for November</td>
+ <td class="tdrvb" width="20%">$5,452,830</td>
+ </tr>
+ <tr>
+ <td class="tdl hang">Passenger Operating Expenses, and one-twelfth of the taxes and one-twelfth of the interest on the funded debt</td>
+ <td class="tdrvb">$2,365,521</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>The passenger operating expenses are distributed as follows:</p>
+
+<p class="cen"><span class='pagenum'><a name="Page_44" id="Page_44">[44]</a></span><i>Assignable Expenses.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="60%" summary="passenger operating expenses">
+ <tr>
+ <td class="tdl" width="60%">Transportation Expense</td>
+ <td class="tdr" width="20%">&nbsp;</td>
+ <td class="tdr" width="20%">$454,208</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Fuel passenger engines</td>
+ <td class="tdr">$132,709</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Salaries passenger engineers</td>
+ <td class="tdr">100,511</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Salaries passenger trainmen</td>
+ <td class="tdr">87,557</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Train supplies, etc.</td>
+ <td class="tdr">55,664</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Injuries to persons</td>
+ <td class="tdr">19,904</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Station employees</td>
+ <td class="tdr">17,160</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Joint yards and terminals</td>
+ <td class="tdr">15,610</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">25,093</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">Maintenance of Equipment</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$107,626</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Repairs, passenger cars</td>
+ <td class="tdr">$67,650</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Depreciation, passenger cars</td>
+ <td class="tdr">39,639</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">337</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">Traffic Expense</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$48,971</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Advertising</td>
+ <td class="tdr">$17,249</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Outside agencies</td>
+ <td class="tdr">16,673</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Superintendence</td>
+ <td class="tdr">10,272</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">4,777</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">Maintenance of Way, etc.</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$12,970</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Buildings and grounds</td>
+ <td class="tdr">$7,053</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Joint tracks, etc.</td>
+ <td class="tdr">4,440</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">1,477</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">General Expense</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr">$13,580</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Salaries, clerks, etc.</td>
+ <td class="tdr">$8,994</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Insurance</td>
+ <td class="tdr">2,478</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Legal expense</td>
+ <td class="tdr">1,153</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Miscellaneous</td>
+ <td class="tdr bb">955</td>
+ <td class="tdr bb">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp3 tdtp">Total</td>
+ <td class="tdr bt tdpt">&nbsp;</td>
+ <td class="tdr bt tdpt">$637,355</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p class="cen"><span class='pagenum'><a name="Page_45" id="Page_45">[45]</a></span><i>Proportion of Non-Assignable Expenses.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="0" cellspacing="0" width="60%" summary="operating expenses">
+ <tr>
+ <td class="tdl" width="60%">Operating Expenses</td>
+ <td class="tdr" width="20%">$1,278,016</td>
+ <td class="tdr" width="20%">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl tdtp">Taxes and Interest</td>
+ <td class="tdr bb tdpt">450,150</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdlp2">&nbsp;</td>
+ <td class="tdr bt">&nbsp;</td>
+ <td class="tdr bb tdpt">$1,728,166</td>
+ </tr>
+ <tr>
+ <td class="tdlp2">Total</td>
+ <td class="tdr">&nbsp;</td>
+ <td class="tdr bt tdpt">$2,365,521</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>Exhibit A shows that the entire space in all cars run on passenger
+trains on the Burlington in November was divided as follows:</p>
+
+<div class="centered">
+<table border="0" cellpadding="1" cellspacing="0" width="40%" summary="space division">
+ <tr>
+ <td class="tdl" width="50%">Passengers occupied</td>
+ <td class="tdr" width="50%">80.8 % of the space.</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdr">11.75% of the space.</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdr">7.45% of the space.</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>If each of these three classes of traffic had contributed earnings and
+paid expenses in proportion to the space occupied by it, the result in
+comparative profit or loss to the company would have been as follows:</p>
+
+<p class="cen"><i>Comparative Profit and Loss.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="1" cellspacing="0" width="60%" summary="Profit and Loss">
+ <tr>
+ <td class="tdl" width="20%">&nbsp;</td>
+ <td class="tdr" width="20%"><i>Earnings.</i></td>
+ <td class="tdr" width="20%"><i>Expenses.</i></td>
+ <td class="tdr" width="20%"><i>Profit.</i></td>
+ <td class="tdr" width="20%"><i>Loss.</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Passengers</td>
+ <td class="tdr">$1,859,839</td>
+ <td class="tdr">$1,911,341</td>
+ <td class="tdr">&nbsp;</td>
+ <td class="tdr">$51,502</td>
+ </tr>
+ <tr>
+ <td class="tdl">Mail</td>
+ <td class="tdr">194,435</td>
+ <td class="tdr">277,949</td>
+ <td class="tdr">&nbsp;</td>
+ <td class="tdr">83,514</td>
+ </tr>
+ <tr>
+ <td class="tdl">Express</td>
+ <td class="tdr bb">187,825</td>
+ <td class="tdr bb">176,231</td>
+ <td class="tdr">$11,594</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+ <tr>
+ <td class="tdl">&nbsp;</td>
+ <td class="tdr bt">$2,242,099</td>
+ <td class="tdr bt">$2,365,521</td>
+ <td class="tdr">&nbsp;</td>
+ <td class="tdr">&nbsp;</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p>If the Government had paid to the Burlington Company for carrying the
+mails 11.75% of the actual cost of doing the work, and a proportion of
+the taxes and interest on the funded debt, it would, for November,
+have paid $83,514 more than was paid, indicating that for the year the
+Government is paying $1,002,168 less than the actual fair cost of the
+service it is receiving.</p>
+
+<br />
+<br />
+
+<p class="cen"><span class='pagenum'><a name="Page_46" id="Page_46">[46]</a></span><i>Exhibit D.</i></p>
+
+<p class="cen">[Form 2605.]</p>
+
+<p class="cen"><i>Statement of Mail Cars and Apartment Cars.</i></p>
+
+<p class="cen"><i>Postal Cars.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="65%" summary="Postal Cars">
+ <tr>
+ <td class="tdlvb" width="34%">&nbsp;&nbsp;<i>Kind of Car</i></td>
+ <td class="tdcvb" width="22%"><i>Number Owned</i></td>
+ <td class="tdcvb" width="22%"><i>Original Average Cost</i></td>
+ <td class="tdcvb" width="22%"><i>Present Average Value</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">60 feet or more in length</td>
+ <td class="tdcvb">49</td>
+ <td class="tdrp">$5,176.00</td>
+ <td class="tdrp">$4,669.84</td>
+ </tr>
+ <tr>
+ <td class="tdl">50 to 59 feet in length</td>
+ <td class="tdcvb">10</td>
+ <td class="tdrp">4,116.00</td>
+ <td class="tdrp">2,595.70</td>
+ </tr>
+ <tr>
+ <td class="tdl">Less than 50 feet in length</td>
+ <td class="tdcvb bb">17</td>
+ <td class="tdrp bb">2,555.00</td>
+ <td class="tdrp bb">2,094.41</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Total</td>
+ <td class="tdcvb bt">76</td>
+ <td class="tdrp bt">$4,451.00</td>
+ <td class="tdrp bt">$3,820.84</td>
+ </tr>
+</table>
+</div>
+
+<br />
+
+<p class="cen"><i>Apartment Cars.</i></p>
+
+<div class="centered">
+<table border="0" cellpadding="2" cellspacing="0" width="75%" summary="Apartment Cars">
+ <tr>
+ <td class="tdlvb" width="40%">&nbsp;&nbsp;<i>Kind of Car</i></td>
+ <td class="tdcvb" width="20%"><i>Number Owned</i></td>
+ <td class="tdcvb" width="20%"><i>Original Average Cost</i></td>
+ <td class="tdcvb" width="20%"><i>Present Average Value</i></td>
+ </tr>
+ <tr>
+ <td class="tdl">Cars with mail apartments 30 feet or more in length</td>
+ <td class="tdcvb">27</td>
+ <td class="tdrp">$3,888.00</td>
+ <td class="tdrp">$2,112.78</td>
+ </tr>
+ <tr>
+ <td class="tdl">Cars with mail apartments 25 to 29 feet in length</td>
+ <td class="tdcvb">21</td>
+ <td class="tdrp">3,660.00</td>
+ <td class="tdrp">2,004.95</td>
+ </tr>
+ <tr>
+ <td class="tdl">Cars with mail apartments 20 to 24 feet in length</td>
+ <td class="tdcvb">22</td>
+ <td class="tdrp">3,292.00</td>
+ <td class="tdrp">1,810.50</td>
+ </tr>
+ <tr>
+ <td class="tdl">Cars with mail apartments less than 20 feet in length</td>
+ <td class="tdcvb bb">31</td>
+ <td class="tdrp bb">3,106.00</td>
+ <td class="tdrp bb">1,729.35</td>
+ </tr>
+ <tr>
+ <td class="tdlp">Total</td>
+ <td class="tdcvb bt">104</td>
+ <td class="tdrp bt">$3,460.00</td>
+ <td class="tdrp bt">$1,901.71</td>
+ </tr>
+</table>
+</div>
+
+<br />
+<br />
+<br />
+<br />
+<hr />
+<br />
+<br />
+<br />
+<br />
+
+
+
+
+
+
+
+
+
+<pre>
+
+
+
+
+
+End of the Project Gutenberg EBook of The Mail Pay on the Burlington Railroad, by
+Anonymous
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+</pre>
+
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