ItemBureau Figures 1909Official Figures 1908Miles of line represented221,132230,494Passengers carried.854,255,337890,009,574Passengers carried 1 mile28,788,855,00029,082,836,944Passenger revenue$551,634,278$566,832,746Mileage of passenger trains491,903,107505,945,582Average number of passengers in train5854Average cars to a train5.3—Passenger car miles2,594,508,9872,705,659,994Average passenger journey (miles)33.7132.66Average receipts per passenger mile (cents)1.9161.937
According to the monthly reports to the Interstate Commerce Commission covering an average of 233,002 miles of line, the passenger revenues in 1909 were $564,302,580, or $1,943,077 less than the above revenues for only 228,164 miles of line in 1908.
The average receipts per passenger mile in 1909 are the lowest ever reported for American railways.
Taken in connection with the official returns covering the period since 1900, the above figures afford evidence of the confiscatory effect of the 2-cent passenger laws on railway revenues, as appears from the following statement:
Summary of Passenger Mileage, Revenue and Receipts per Passenger Mile, 1900 to 1909.YearPassengers CarriedOne MileIncrease Over Preceding Year (Per Cent)Passenger RevenueReceiptsper Passenger Mile190016,038,076,200—$323,715,6392.003190117,353,588,4448.2351,356,2652.013190219,689,937,62013.4392,963,2481.986190320,915,763,8816.2421,704,5922.006190421,923,213,5364.8444,326,9912.006190523,800,149,4368.6472,694,7321.962190625,167,240,8315.7510,032,5832.003190727,718,554,03010.1564,606,3432.014190829,082,836,9444.9566,245,6571.937190929,452,000,0001.3564,302,5801.916Increase, per cent83.7—74.6—
Here it is shown that the passenger service rendered has increased 12% more than the passenger revenues. But more significant than this is the column of yearly increases in service by percentages. This utterly explodes the theory that passenger travel is greatly stimulated by low fares—aside from some positive incentive to increased travel, such as periodical expositions, the Louisiana Purchase Exposition for instance, the effect of which is clearly traceable in the increased service in 1905, which includes the heavy travel during the months of heavy attendance, July 1 to December 1, 1904.
The 2-cent passenger laws were passed so as to become generally effective July 1, 1907, and their effect on passenger receipts during the following year was such that these receipts were actually less in 1909 than in 1907, although the service performed by the railways was over 6% greater. Had the railways received the same rate in 1909 that they did in 1907 their revenue from passengers would have been nearly $29,000,000 more than it was.
Passenger Traffic 1909-1888.
In the next statement the salient facts in regard to the passenger traffic since the Commission began collecting the data is passed under review.
YearPassengers Carried (Millions)Passengers Carried One Mile (Millions)Mileage Passenger Trains (Millions)Average Passengers in TrainAverage Journey MilesPassenger Revenue (Millions)Average Receipts per Passenger Mile (Cents)190988829,45250758335041.916190889029,08250059335661.937190787327,71850951325642.014190679725,16747949315102.003190573823,80045948324721.962190471521,92344046314442.006190369420,91542546304212.006190264919,68940545303921.986190160717,35338542293512.013190057616,03836341283232.003189952314,59134741282911.978189850113,37933439272671.973189748912,25633537252512.022189651113,04933239262662.019189550712,18831738242522.040189454014,28932644262851.986189359314,22933542243012.108189256013,36231742242862.126189153112,84430842242812.142189049211,84728541242602.167188947211,55327742252542.199188841210,10125240242372.349Increase115%191%101%45%38%138%1888 to 1907Decrease18.4
The several increases shown in the first, second, third and sixth columns of the table reflect the general advancement in passenger traffic. That of 45% in the average passengers to a train marks the progress in density of that traffic which may eventually place it on a profitable basis. In Massachusetts, where this density yields an average of 79 passengers to a train there is no demand for a two-cent rate statute, for the conditions have made a rate of 1.64 cents profitable. In the group of states consisting of Ohio, Indiana, Michigan, Illinois, Iowa, Wisconsin and Minnesota, where the density of traffic yields only 46 passengers by train, a statutory two-cent fare becomes confiscatory because it costs at least one dollar to operate a passenger train one mile and 46 times two cents is only 92 cents. Moreover the 46 passengers per train is only an average and there are as many trains that average less as more. The average has to be raised above 50 to yield any margin of profit on passenger traffic. If it were not for the density of traffic in the New England and North Atlantic group of states the average for the entire United States would be well below 46 passengers per train.
The steady increase in the distance traveled per passenger reflects the effect of trolley competition in diverting the short haul passenger traffic.
The most noteworthy feature of the seventh column is the decline of 98/1000ths of a cent in the average receipts per passenger mile between 1907 and 1909, making a new low record after hovering around the two cent mark for fourteen years. As noted above, this reduction in the average cost the railways nearly $29,000,000 on the passenger traffic of 1909.
In this connection it is interesting to recall that between 1888 and 1893 the Official Statistician, then as now Professor Adams, made the following computation of the average cost of carrying one passenger one mile for the whole United States:
188818891890189118921893Average cost of carrying a passenger one mile, cents2.0421.9931.9171.9101.9391.955
It will be observed that the average receipts per passenger mile in 1909 are below the computed cost in every one of the years above named, except 1891. When the advance in the cost of everything necessary to the service—track, labor, equipment, conveniences, speed, terminal facilities—is considered, the practical coincidence of average cost and receipts leaves no margin for legitimate profits.
Receipts from Mail and Express.
Closely associated with the passenger traffic of the railways are the mail and express services. Although principally carried by passenger trains, each has a special service of its own by mail and express trains. But all are included under the passenger service. The receipts from these two branches of the service during the last decade are shown in the following statement:
Summary of Receipts from Mail and Express, 1899 to 1908.MailExpressYearRevenuesPercentage of EarningsRevenuesPercentage of Earnings1899$35,999,0112.74$26,756,0542.04190037,752,4742.5428,416,1501.91190138,453,6022.4231,121,6131.96190239,963,2482.3134,253,4592.07190341,709,3962.1938,331,9641.98190444,499,7322.2541,875,6362.12190545,426,1252.1845,149,1552.17190647,371,4532.0451,010,9302.19190750,378,9641.9457,332,9312.21190848,517,5632.0358,602,0912.45190950,935,0002.0863,669,0002.60Increase, per cent41.5—138.0—
Aside from the striking contrast in the percentages of increase of revenues from these two sources, the most significant feature of this table is the reversal it shows in their respective importance from the railway revenue point of view. Prior to 1905, carrying the mails brought larger, if not more profitable, returns to the railways. Since then the returns from express have increased so much more rapidly that they are now nearly 23% more than those from mails.
If proof were needed of the absolute falsity of the charge that the railways are receiving an exorbitant rate for carrying mail, the above table of their receipts from the service in connection with the following statement of mail handled and revenues in view of the finding of the Joint Commission of Congress in 1899 would furnish it. After a thorough investigation of the subject lasting from August, 1898, to July, 1900, the Commission came to the following conclusion:
"Upon a careful consideration of all the evidence and the statements and arguments submitted, and in view of all the services rendered by the railroads, we are of the opinion that the prices now paid to the railroad companies for the transportation of the mails are not excessive, and recommend that no reduction thereof be made at this time."
The increase in the railroad service since this report was made is shown in the following statement of miles of mail transportation by railroads, the postal revenues and the number of clerks in the railway mail service since 1899:
Annual Transportation of Mail by Railroads (Miles)Postal RevenuesNumber of Railway Mail Clerks1899287,591,269$95,021,3848,3881900297,256,303102,354,5798,6951901302,613,325111,631,1939,1051902312,521,478121,848,0479,6271903333,491,684134,224,44310,4181904353,038,397143,582,62411,6211905362,645,731152,826,58512,4741906371,661,071167,932,78313,5981907387,557,165183,585,00614,3571908407,799,039191,478,66315,2951909—203,562,38315,866Increase in 10 years, per cent50.5124.789.1
Compared with the increase of only 41.5% in the revenues from mail received by the railways during the same period, each one of the above percentages testifies to a positive reduction in the rate received by the railways for the service. And if the increase in weight of mail carried in 1909 were known, the contrast between the service and the pay would be more striking. In 1899 the total weight of all mail was reported as 635,180,362 pounds. In 1907 the estimates made from the special weighing placed the weight of mail carried that year at 1,290,358,284 pounds, or an increase of nearly 105% in eight years. By reference to the above table it will be seen that the railway revenues from mail between 1899 and 1907 increased only 40%. The contrast is illuminating. In its light the charge that the railways are in any way responsible for the postal deficit is grotesque.
Freight Traffic
According to the monthly returns to the Interstate Commerce Commission, the proportion of revenues from freight of the railways of the United States to total earnings from operation, for the years 1908 and 1909, receded to the unusually low figures of 68.51% and 68.88% respectively. The official summary for 1908, based on the annual returns, shows a proportion of 69.17% for that year, which probably is nearer the mark.
The annual reports to this Bureau for 1909 yield a proportion of 69.18% for last year.
Accepting this proportion taken from the annual returns as being based on the same character of reports as those from which former ratios were derived, the preponderance of freight traffic is shownin bold relief in the following statement of the ratio of its revenues to total earnings from operation, 1899 to 1909:
YearProportion of Freight Revenues to Total EarningsYearProportion of Freight Revenues to Total Earnings189969.55%190569.67%190070.56%190670.54%190170.41%190770.44%190269.93%190869.17%190370.39%190969.18%190469.82%
The average proportion for the nine years preceding 1908 is seen to be slightly above 70%, and the fact that it was almost one point below 70% in 1908 and 1909 indicates that it was the freight traffic that bore the brunt of the business depression which curtailed railway revenues during those years.
In no other of the leading countries of the world does the freight traffic assume the overwhelming relative proportion that it does in the United States. In the United Kingdom it amounts to 50.35%; in France to 53.64%; and in Germany, including express and mail, to 65%. If these were classed with freight in the United States, it would raise the proportion for that traffic here to over 74%.
Freight Traffic 1909 and 1908.
The next statement presents the significant items of the freight traffic in 1909 for the roads reporting to this Bureau compared with those of the final official returns for the preceding year.
Item1909Bureau Figures1908Official FiguresMiles operated221,132230,494Number of tons carried1,441,012,4261,532,981,790Tons carried 1 mile217,756,776,000218,381,554,802Freight revenue$1,643,028,564$1,655,419,108Mileage of freight trains560,602,557587,218,454Number of cars in train29.728.3Average number of tons in train388351.80Average haul per ton (miles)151.1143.83Average receipts per ton mile (mills)7.547.54
Experience has shown that in comparing these statements of averages for passenger and freight traffic, allowance has to be made for the fact that the Bureau's figures include all the great systemsand are exclusive of some 13,000 miles of minor lines. It is difficult to estimate the effect of these discrepancies with anything like exactness. But complete returns invariably show a shorter mean haul and journey for the entire country than the Bureau's figures indicate and also a less train load of passengers and freight, the result being a slightly higher average for passenger and freight ton receipts per mile.
Last year from its returns the Bureau computed the passenger mile receipts at 1.933 cents and the ton mile receipts at 7.53 mills. The Commission's final figures were 1.937 cents and 7.54 mills respectively.
Freight Traffic 1909 to 1888.
In the next summary is presented a condensed statement of the significant data relating to the freight traffic for the twenty-two years that the Commission has been compiling statistics.
Summary of Tons Carried, Ton Mileage, Mileage of Freight Trains, Average Tons in Train, Freight Revenues and Average Receipts per Ton Mile.YearTons Carried (Millions)Tons Carried One Mile (Millions)Mileage Freight Trains (Millions)Average Tons in TrainAverage Haul per Ton (Miles)Freight Revenue (Millions)Receipts per Ton Mile (Cents)1909(a)1,486222,900579388151$1,682.75519081,532218,3815973601431,655.75419071,796236,6016293571311,823.75919061,631215,8775943441321,640.74819051,427186,4635463221301,450.76619041,309174,5225353071331,379.78019031,304173,2215263101321,338.76319021,200157,2894992961311,207.75719011,089147,0774912811351,118.75019001,081141,5964922701301,049.7291899943123,667(b)507243131913.7241898863114,077503226132876.753189772895,139464204130772.798189676595,328479198124786.806189569685,227449189122729.839189463880,335446179125699.860189374593,588508183125829.878189270688,241485181124799.898189167581,073446181120736.895189063676,207435175119714.941188953968,727383179127644.922188848061,3293481761286131.001Increase209%263%66%120%18%174%1888 to 1909Decrease24.0%(a) Figures for 1909 computed on basis of returns to this Bureau.(b) Includes 75% of mixed train mileage, that being the practice prior to 1900.
Mark the one column which shows a decrease. This means a remission of almost exactly a quarter of a cent per ton mile in the average receipts from freight. On the tonnage carried in 1909 it meant a saving of over $540,000,000 to the shippers. In the presence of the present high price of everything carried by the railways, there is no ground for assuming that any portion of this half billion dollars withheld from the railways ever reached the ultimate consumer. On the contrary the presumption is unavoidable that it has been absorbed by the shippers and consignors, whose profits are greater than ever.
Proportion of Commodities Moved 1899-1909.
Referring to the movement of different classes of commodities in his report for 1904, the Official Statistician said: "A slight change in the ratio of freight carried for any one of the classes named may have decided results, not only upon the earnings of the roads,but upon the average rate per ton mile." But without knowing the length of the haul of the respective classes, any estimate of the effect of such variation must be largely speculative.
In 1909, for the first time the Bureau undertook to collect the information as to the tonnage of the main divisions of commodities carried. Its inquiries were limited to the tonnage originating on the several roads, and the next statement presents the results in comparison with the official figures for 1907, which are the last available:
Tonnage and Proportion of Different Classes of Commodities Moved 1909 and 1907.19091907Class of CommodityTonnage Reported as Originating on LinePer Cent of AggregateTonnage Reported as Originating on LinePer Cent of AggregateProducts of agriculture76,955,1319.4977,030,0718.62Products of animals21,807,4862.6920,473,4862.29Products of mines449,938,24855.50476,899,63853.39Products of forests83,679,17910.33101,617,72411.38Manufactures109,625,66913.52137,621,44315.41Merchandise35,500,8334.3834,718,4873.89Miscellaneous33,318,2724.0944,824,1235.02Total810,784,818100.00893,184,972100.00NOTE.—These tables fail to include nearly 200,000,000 tons unassigned.
The most significant feature of this statement is the marked decrease, absolutely and relatively, in the tonnage of manufactures carried. Great as was the decrease in the tonnage of animals carried there was an increase relatively.
The next statement shows the percentages of commodity tonnage moved since the Commission has compiled the information divided between low and high rate freight.
Summary Showing Percentage of Freight Traffic Movement by Classes of Commodities, 1907 to 1899.Table headings:Col A: Products of AgricultureCol B: AnimalsCol C: MinesCol D: ForestCol E: TotalCol F: ManufacturesCol G: MerchandiseCol H: MiscellaneousCol I: TotalYearLow Rate FreightPercentage of AggregateHigh Rate FreightPercentage of AggregateABCDEFGHI189911.333.1251.4710.8976.8113.454.495.2523.19190010.352.8752.5911.6177.4213.414.264.9122.58190110.762.9151.6711.6777.0113.754.165.0822.9919029.232.6452.3611.6475.8714.494.375.2724.1319039.562.6351.5611.6775.4214.394.695.5024.5819049.592.7451.5612.5376.4213.414.835.3423.5819059.032.5453.5911.2476.4013.604.325.6823.6019068.562.3253.0911.2475.2114.814.065.9224.7919078.622.2953.3911.3875.6815.413.895.0224.3219088.742.4655.7211.3578.2713.154.044.5421.7319099.492.6955.5010.3378.0113.524.384.0921.99
It will be observed that the percentage of low rate freight carried in 1909 was greater than for any other year covered by these statistics. This was due more to the falling off in manufactures and miscellaneous freight than to any increased movement of low class freight.
Car Service Operations.
What the Department of Commerce and Labor calls "a convenient index to the traffic activities of the country" is found in the following comparative statement of cars handled by the various car service associations and demurrage bureaus, 1905-1909.