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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would involve violation of the copyright law. Author: Suffern & son Title: Railroad operating costs 2V. Place: New York Date: 1911-1912 MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD RESTRICTIONS ON USE: FILM SIZE ; ,3 S rr^^ ■USINCSS f 530.7 Su2 Suffern & son, New York. ^ ' Railroad operating costs ; a series of original studies in operating costs of the leading American railroads, by Suffern & son ... New York, Suffern & son, 1911- vl y diagrs. (part fold.) 28"". Z V, Vol. 2 has title : Railroad operatins: costs, arratiRed to include the opera- tions of 1911; a continuation of studies in operating costs of the leading American railroads. 1. Rpilroads — Cost of operation. 2. Railroads— tfr-fe— Finance 1. Title. ~ Library of Congress ( JhE1621.S8 12-2117 Qopy^ZT' rs26dl] KZujjul TECHNICAL MICROFORM DATA REDUCTION RATIO : ii:( IMAGE PLACEMENT: lA DATE FILMED ■.Jiki & IB IIB INITIALS: TRACKING # : /HSJ/ O/SW ^ O / S'/j FILMED BY PRESERVATION RESOURCES. BETHLEHEM, PA. > J^' ^^^ ^^r^^ ^^^7^ 00 CO ^ o (Jl ai z- 3 3 3 3 3 > Q> 00 CT O > ABC bcdef 0,0 o m 410-0 CD O -•m d?I GHIJKLMNOPQRS ^Imnopqrstuvwxyz HIJKLMNOPQR rinopqrstuvwxy IJKLMNOPQ hijklmnopqr 1234567891 N CO C CO I TJ ^ m O m ABCDEFGHIJKLMNOPQRSTUVWXYZ abcdefghijklmnopqrstuvwxyz 2.5 mm 1234567890 H- » r>o Kl cn o cn 3 Z| 3 3 — 3 > 0) QD 01 o >» 0, O o- r^^ o m p •S-O fi 3i 11 IJKLM nopqr! KLM iikIm 2345 ?^ C^3 2 ^1 •< TO N C/J < O "<2 o 00 Nl 8 cr.x 25 < 'vi-< ^^ CX>tVl vo X o -< J-'l-^ > V Columbia IHmbersettp intijeCitpofBetDgorfe LIBRARY School of Business ( \ Railroad Operating Costs A series of Original Studies in Operating Costs of the Leading American Railroads BY SUFFERN & SON Analysts and Organizers for Business Effectiveness Price, $2,00 NEW YORK SUFFERN & SON 1911 - ^1 lAJ ^ «A <0 t T 'HERE are in the United States 250,000 miles of railroads operated by companies having a total capitalization of eighteen billions of dollars ($18,000,000,000.) Considered as a unit, this is the greatest property and aggregate investment of money in the world devoted to one commercial pursuit. Total earnings from operation exceed $2,500,000,000 annually, from which, $230,000,000 is set aside in dividends to the stock holder; $400,000,000 in interest on debts involved; $95,000,000 in taxes; and $1,600,000,000 for operating and maintaining the property. Revenues are dependent upon financial conditions and material prosperity of the country. Unlike other industrial concerns, railroads cannot create business to any degree by the methods which the former employ so successfully. One road may take business from another, but the total remains the same— the traffic offered for movement, which in turn is a product of industrial conditions. The markets, money conditions, supply and demand, are the governing factors in railroad revenue. Railroad management has nothing to do with it. But back of their duty to the public, railroads exist for profit. The problem of railroad operation then becomes one of creating profit by balancing expenditures to a rigid and inflexible income. Expenditure can, of course, be nicely proportioned to the revenue, but never at a sacrifice to the service. The public demands, and rightfully, that railroads fulfill their obligations as public service cor- porations by giving adequate service — with perhaps little regard for the cost involved. The way to profit from railroad operation is then clearly defined. Between the barriers of a fixed income on one hand and standard of service on the other, the solution for adequate returns from railroad investments lies in (a) equable adjustment of rates; and (b) economy of operation. Never in the history of railroads has the question of operating costs received so nmch attention from railroad officers as at present. The greatest interest is everywhere manifest in costs of operation and local conditions on parallel and competing railroads for the purpose of improving performance and costs through the medium of judicious comparisons. This widespread demand for information on operating costs has awakened the Interstate Connnerce Commission to a greater realization of its duty to the railroads in furnishing them with more essential data on railroad operation. The Commission is now making preparations which will in time turn their yearly report from a bulky volume of tables and summaries into a hand-book of operating costs to which the rail- road officer will naturally turn for the inevitable comparison when analyzing his own operating costs. It is the purpose of this book to present studies in railroad operation which will throw the light of a true perspective on operating costs, through comparisons of vital factors in the management of leading railroads. Never before has such a forceful analysis of operating costs been arranged for public distribution. Through the studies presented, it is believed the standards of operation will be raised by stimulating activities in attainment of the l^est practice as portrayed in the pages hereafter. From the inherent nature of things, effectiveness of operation and quality of service vary on railroads in the same proportion as the personnel of management, physical character of the country, and operating conditions vary. To expect all railroads to operate on the same plane of economy and service, is l)eyond the limits of reason, yet it is possible, under similar operating conditions, to approach the standards at4;ained by the best. This involves no theory of untried experiments. Comparisons of operating costs of one railroad with another will not in itself improve the effectiveness of performance, but lead the way to sound conclusions upon which improvements in operation can be made. The vital thing is to find what is best, who is doing it, and howl This book is a fulfilment of this need. As the most practical presentation of facts ever compiled on the operation of railroads, it is offered for the consideration of that great body of progressive railroad men who are striving against ever increasing odds to maintain the integrity of railroad investments and the high standard of service on American railroads. ^ttc^i^c^dxt m. ^nin New York, September 21, 1911. NOTE, The analysis of railroad operating costs presented in the following pages illus' trates our advanced methods in dissecting railroad statistics. We are prepared to furnish cost and performance data on any phase of railroad operation. SUFFERN & SON. CONTENTS. Chapter I -Comments on information furnished by Interstate Commerce Commission. Total capitalization per mile of road operated. Gross earnings per mile of road. Population per mile of road, by counties. Density of traffic (freight and passenger) per mile of road. Percentage o operating expenses to gross earnings. Graphical illustrations for the leading railroads are: Total capitalization per mile of road operated. Gross earnings per mile of road. Population per mile of road. Density of traffic per 1,000 revenue ton-miles per mile of road. Percentage of operating expenses to gro^ earnings Conde,^ profiles of New York Central Lines, Pennsylvania System, Baltimore and Ohio, Illinois Central, Chicago and Northwestern, Chicago Burlington and Quincy, Chicago Rock Island and Pacific, Missouri Pacific. Southern Pacific and Union Pacific, Northern Pacific, Atchison, Topeka and Santa Fe. Chapter II —General divisions of operating expense, and discussion of the factors entering into the operating costs of maintenance of way and structures, maintenance of equipment and conducting transportation. Graphical illustrations accompanying are: Difference in size of locomotives haulmg same train on level and on grade. Profiles and tables showing cost of freight locomotive repairs and fuel on level and mountainous country. Chapter 1 1 1. -Maintenance of way and structures. Grade. Curvature. Clearances. Bridges and track. Comparison in construction of Virginian with Missouri Pacific. Tunnels on the Denver, North- western and Pacific. Bridges on the Florida East Coast. Terminal facilities on Wabash, Pennsylvama and New York Central. The broad gauge possibility. The Mallet locomotive and limits of power umts. Bridge and viaduct construction compared. Track construction. The track labor problem. Conclusions and recommendations on maintenance of way. Graphical illustrations accompanying are: Percentage maintenance of way and structures to total operating expense. Maintenance of way and structures per locomotive mile. Relation of traffic to maintenance of way costs on representative eastern and western railroads. Chapter IV —Maintenance of equipment. Ratio to total operating expense. Reasons for increase in cost of maintenance of equipment. Tractive force of locomotives. Capacity of freight cars. Comparison between size of locomotives and cars. Labor conditions ea^t and west of Chicago and rates of pay. Loco- motive maintenance. Repairs to locomotives per locomotive. Weight on drivers per locomotive. Repairs to locomotives per locomotive mile. Miles per locomotives, all classes. Miles per freight locomotive. Miles per passenger locomotive. Repairs and renewals per locomotive. Repairs and renewals of loco- motives per ton of tractive force. Repairs and renewals of locomotives per work unit. Freight car mam- tenance Maintenance of freight cars per car owned. Maintenance of freight cars per 1,000 car miles. Passenger car maintenance. Maintenance of passenger ears per car ouTied. Maintenance of passenger cars per 1 000 passenger car miles. Shop machinery and tools. Maintenance of shop machinery and tools per work unit Graphical illustrations for leading railroads accompanying are: Ratios of accounts to total operating expense. Ratio maintenance of equipment to total operating expense. Capacity of freight cars. iTcomotive tractive force. Average wages paid various employes east and west of Chicago. Repairs to loco- motives per locomotive. Average weight on drivers per locomotive. Repairs to locomotives per imle. Miles per locomotive, all classes, freight, passenger. Repairs and renewals of locomotives per locomotive, per locomotive mile, per ton of tractive force, per work unit. Maintenance of freight cars per car owned per 1,000 car miles. Maintenance of passenger cars per car owned, per 1,000 car miles. Maintenance of shop machinery and tools per pound of tractive force, per work unit. Chapter V —Conducting transportation. Ratios of conducting transportation and maintenance of property to total operating expense. Cost of conducting transportation per 1,000 train miles. Principal items of expense in conducting transportation, supervision, train supplies and expenses, engine supplies 5 and expenses, claims, damages and miscellaneous expenses, stationmen and dispatchers, locomotive fuel, enginemen, yard and trainmen's wages. Cost of fuel per engine mile. Cost of fuel per work unit. Cost of fuel per ton. Fuel consumption on leading railroads. Tons of fuel per work unit. Cost of supervision. Enginehouse expenses per work unit. Engine supplies per work unit. Train supplies and expenses per 1,000 car miles. Traffic expense. General expense. Graphical illustrations for leading railroads are: Ratio of maintenance of property and conducting transportation to total operating expense. Cost of con- ducting transportation per 1,000 train miles, eastern and western roads. Division of conducting transporta- tion on large roads. Cost of fuel per engine mile, eastern and western roads, for 5 year period ending 1910. Cost of fuel per engine mile, eastern and western roads, per cent, increase 5 year period ending 1910 over 5 year period ending 1905. Cost of fuel per work unit, eastern and western roads. Per cent, increase and decrease in cost of fuel per work unit, eastern and western roads. Tons of fuel per work unit, eastern *nd western roads. Tons of fuel per work unit. Enginehouse expenses per work unit. Engine supplies per work unit. Train supplies and expenses per 1,000 car miles. Chapter VI. — Conclusion and summary. Relation l)etween capitalization, gross earnings, etc. The "Operating Ratio." Units for comparisons of expense. "External" operating conditions. Inter- state Commerce Commission data. Factors entering into cost of transportation. Maintenance of way and equipment. The labor question. < Railroad Operating Costs. CHAPTER I. Every railroad in the United States that handles any interstate traffic is required to file annual reports with the Interstate Commerce Commission, on uniform blanks prepared by its statistician and bound in book form. These annual reports present many figures, of various kinds : figures from the finan- cial accounts; statistics of performance; information in respect of the more important sorts of physical properties; and traffic data, highly condensed; but a great many things are missing which it is necessary for a railroad operator or analyst to know in order to utilize these figures in making accurate comparisons between different railroads-comparisons that will instruct, not mislead him. He requires to have informa- tion from other sources: an intimate knowledge of local conditions-information general and special-to enable him to make judicious comparisons, draw trustworthy inferences and reach sound conclusions. The original reports are available for examination in the offices of the Commission at Washington, but no printed copies are made and only a very few of the most general items are extracted for publication in the Commission's statistical reports. Indeed, the paucity of useful information to be gleaned from any published reports of railroad operations and affairs becomes painfully evident to the investigator seeking to make comparisons that will be valuable to practical railroad operators. With a few exceptions-as the Union-Southern Pacific System, whose reports are models of real information, unequalled in English speaking countries-annual reports to stockholders are of little use to any but financial men (and often of doubtful value to these), while the summaries appearing m the vanous financial manuals are almost devoid of information in respect of operating conditions. If we turn to the bulky statistical tome issued annually by the Interstate Commerce Commission, we find a thousand closely printed pages filled with tables of almost useless data and summaries, while the information absolutely essential to any clear picture of physical and operating conditions on the severs^ railway properties in the United States is conspicuous by its absence, notwithstanding an immense amount of information of great value is sleeping in these reports made by the roads to the Commission from which this volume is derived. _ _x <• -i ^ Comparisons of operating costs have lately received such widespread attention, on the part of railroad men and of the public and the National and State governments as well, that an analysis of some of the facts which may be learned from the detailed annual reports reposing on the Commission's shelves appears to be well worth the making and, perhaps, of some immediate value. The writer presents herewith such a study based in the main upon the railroads' annual reports to the Interstate Commerce Commission (ampli- fied somewhat by information obtained from the Census Bureau and from various railroad officials) in respect of earnings, operating expenses, physical characteristics and operating conditions of the representative railroads of the country, but without special reference to rates or managements. Previous to July 1, 1907 there was supposed to be a definite system of compiling railroad accounts and statistics but, as each railroad interpreted the Commission's classifications of separating expenses, etc., in accordance with its own views, reliable comparisons of railway statistics covering earnings, capitalization, cost of operation, etc., were not to be made. The Hepburn Act of 1906 gave the Interstate Commerce Commission complete authority and control over railway accounts and the Commission after long and tactful negotiations with the accounting officers of the roads promulgated a revised series of accounting rules and classifications of accounts, and since July 1 , 1907 the railroads have been keeping their records and submitting their reports accordingly. While these rules permit far greater variation from a uniform standard than is generally understood their chief defect, from the standpoint of this paper, arises out of the lack of operating details and units-a defect due to the fact that the classifications were got up by accountants who were less familiar with operating than v^ith financial records. 7 7VTAL CftP/rM/Z/fimFt/^mfO/'/fOAD Of£/^ATm /9/0. » 25000 saooo 7S000 moop eeooo soaco /xooo zooooo //rc£/ri Lss^n.s. B&O. ILL CEtlT. C&A. /ro./>/ic. C./^./(SrF. CBjS-Q. •s zsfioo som 75P00 foc^^ asDoo /smo /fsooo zoom I'lO. 1. For instance, among all of the voluniiiious figures siil)inlttpd by the various railroads, the I. C. C. reports give no place to th*- statement of the gross tonnage hauled one mile (a very important item) — and in fact there are hut few railroads in the I'nited States that compile, nnieh loss report, this most valuable statistical item. The capitalization of a railroad, wliile most important from a financial standpoint, is of but little moment in our present analysis. In order to show, in part the great difference in capitalization of the various 8 Gms £AmmsFC/^ /r/ifOFmD. /9/0. SOOO /POOO m)0 20006 2S000 30000 350OO 4OOO0 45000 //rcf/rr. L5.S-r7x5. pfmM. /rm.co. /LL.C£NT CjS-A. rro. F/{c. CJ?/S-P c^ -'' °f OP-''""^- If the lemuneration perZ fw freight was he same on the Great Northern as on the Union Pacific, the ratio of op^-rating ex^nseTtl^oss earnings of the former would I. reduced from 61% to 52%; which, compare with the 5l4 onThe IW r^lteeffiXT-lir ""'^^ " "^ '^ ™"^ «^ '"— deductions Tegar^S: di«.r, ^"""'T '^"■"Pa"^''"^ With diverse results may be made between the several railroads shown in the d agram and may be used to show clearly that the ratio of operating expenses to gro., earnings is not a reliable basis of comparison of economy of operation. Operating expenses are dependent upon operating conditions and the several accounts for the various components thereof must be analysed separately to determine whether efficient operation or he opZte exists. Subsequent chapter, present analyses of detailed accounts of operating costs ^ 14 I'l I New yorK -Lake Shore and Michigan Southern -New York Central Condensed Profile of the New York Central Lines. I \ Ft Per Mile "Meat PerCeni West _ rt Per Mile East Per Cenl ^asi "^^ Miles From Jersey City. H.MC Condensed Profile of Ihe Pennsylvania System. I//.|< — Indiana -PennsLjIvania !^W. Virginia^ Manjland — ^ ^i<-Pa--h-/V.j:-^ Condensed Profile of the Baltimore and Ohio Railroad. Mississippi Illinois CVf 1 OS 00 'U ^ ^ ^ o ^ ^ -t Q £: .Vi ? . § f/ac Condensed Profile of the Illinois Central Hail road. I'i Condensed Profile at The Chicago and North Western Railway. Colorado KJU! Condensed Profile of the Chicago, Burllnqton and Ouincy Rallwaif. Miles from Chicago Condensed Profile of the Chicago. Boch Island and Pacific RailwaLj. ■Colorado n Per Mile Wes1 Per Cent Wesi t« IS Ft Per Mile East ^ ^ Percent Eastr^ Miles rrom St Louis use Condensed Profile of fhe l^issouri Pacific Pail way. y-California Condensed Profile of the Southern Pacific and Union Pacific Railroads. -Washington Miles From 6t Paul Condensed Profile of ihe Northern Pacific Pailwaq. . .Ji^ ..:j^ -*'■ V California Miles From Chicatjo Condensed Profile of fhe Htchison. TopeHa and Santa Fe mimui I Railroad Operating Costs. CHAPTER II. n The operating expenses of a railroad are dependent largely upon local conditions and must be separ- ately analyzed in order to determine efficient operation. The usual railroad reports make five divisions of expenses, as follows: 1. Maintenance of Way & Structures, 2. Maintenance of Equipment, 3. Transportation Expense, 4. Traffic Expense, 5. General Expense. The maintenance accounts are most important items which require careful examination in the depart- ment of operating expenses. These maintenance costs, like all other items in a railroad report, must be judged relatively to other things — to the showing made in the same items in prior years, and to the showing made in the same matters by other roads of similar type operating in the same territory. Roads with double track must spend more for Maintenance of Way per mile than those having only single track ; roads handhng a heavy volume of business, as reflected by the traffic density and the average train load, will need to spend more for maintaining their equipment and also their track than those doing lighter business. In judging the Maintenance of Way expenditures of a given fine, the physical characteristics must in all cases come in for careful consideration. It is manifestly unfair to compare the Maintenance of Way costs (per mile of track) on the Union Pacific with the Chicago & Alton. The Chicago & Alton runs through a country where heavy rains are frequent, causing the ties to decay in a short time. The ballast used is gravel or cinders either of which is none too good and easily washed out, resulting in a heavy maintenance cost. Some of the line is ballasted with crushed stone which is excellent ballast, but very expensive. On the other hand the Union Pacific runs through a comparatively dry or semi-arid country where the ties seldom are removed on account of decay and the ballast is of the very best and cheapest, it being disintegrated granite from Sherman Hill, near Cheyenne, Wyo. This ballast is of the very best quality and is procured at as low a cost as any. The average cost of Maintenance of Way for the past ten years is $1,260 per mile on the Union Pacific as against $1,380 for the Chicago & Alton. This does not necessarily mean that the track of the Union Pacific is not kept up as well as the track of the Chicago & Alton. If a railroad is obliged to maintain expensive terminals it should spend more than a railroad of the same type in other respects which does not have this characteristic. To compare two roads in the same territory; the St. Joseph & Grand Island has very inexpensive terminals, while the Kansas City Southern maintains elaborate terminals at Kansas City and particularly at Port Arthur, Texas. The St. Joseph & Grand Island spent in 1908 only $475 per mile for Maintenance of W^ay, and averaged $700 per mile for the past ten years, yet this small amount has apparently been sufficient to maintain the property at as high a standard as has been necessary, and relatively is probably as good as the Kansas City Southern's average for nine years of a little more than $1,000 per mile. The Maintenance of Way expenditures per mile vary all the way from $700 on the St. Joseph & Grand Island to over $10,000, as the ten year average on the Pittsburg & Lake Erie. This enormous difference is explainable when we realize that all of the mileage operated on the Pittsburg & Lake Erie has two or more tracks while the St. Joseph & Grand Island operates only a single track. Again the Pittsburg & Lake Erie has a freight density of 9 million revenue ton miles per mile of road and an average revenue freight train load of 1,200 tons as compared to the St. Joseph & Grand Island with a freight density of less than Is million ton miles and a revenue freight train load of 220 tons. 15 'I The usual reports of railroad operation as published show operating costs per mile for one period compared with another period (month, year, or decade) and unless the reader is familiar with the road in (juestion the deductions drawn from a perusal of the figures are very unsatisfactory. The Atchison, for example, expended $1,886 per mile for Maintenance of Way and Structures in 1910 as compared with $793 in 1901. Without a knowledge of the influencing conditions the amount of business, etc., for these two periods, the above figures would indicate that the expenditures in the year 1910 were exhorbitant as compared with 1901 and a careful analysis of the entire situation is necessary in order to determine a relative comparison. A study of the business handled develops the fact that the freight density (gross ton miles per mile of road) more than doubled during the above mentioned period, thus indicating a very heavy increase in the volume of business. This fact, together with a 35% increase in the weight of locomotives and 25% increase in freight cars has resulted in a proportional growth to the wear and tear of track and presents the matter in a difficult light. It is therefore evident when judging Maintenance of Way expenditures that many items must be taken into consideration other than the mileage operated, or the gross earnings. Far more important are the character and volume of business, the topography of the country and the weight of equipment, all of which must Ik* given due and careful consideration. In the Maintenance of Equipment, the topography of the country governs to a large extent. In a comparatively level country, locomotives are the medium size with large driving wheels and are able to run at fairly high speeds, wliile locomotives in a mountainous district are nuich heavier, are equipped with small driving wheels and must run at slow speeds, thus increasing the Maintenance of Equipment cost. The service conditions are more severe upon the locomotive and the costs of locomotive Repairs, as well as freight and passenger car repairs, are correspondingly higher. A graphical representation is given herewith showing the difference in size of locomotives necessary to haul the same train on level track and on heavy grade. The cost of locomotive maintenance and operation is from 50';{ to 60% higher on the territory with onf-V^i^r-A jihnrmnmii^^^^Offetaa frs: "WJ ]^ ttr rw j^. ^ I — ^^^^^^^^^g iS^^ -^ ©.u^^gLigap'/" "V P^- •m ■" \ Cl" 1 (7^\. 53k. u ,\J^ -J 17' r^^-^ — <>fiSTa\ " * ^ f- >^ t*->— >5^g i$?\ (V\MJOci) f /r sTSaZ" ' ^^ vb jaJBA ^^t 1 1 f^ — ■■ . ^ r — . — — , \g^ Graphical representation of difference in size of locomotives hauling same train on level and on grade. heavy grades than where grades are a negligible quantity, even though the capacity of the locomotives on the grades may be much greater. The mileage made by heavy mountain locomotives is manifestly lower than locomotives running in a prairie country. The large consolidated and Mikado type freight locomotives average about 2,000 miles per month as compared to 3,000 or 3,500 miles per month made by freight locomotives in a prairie 10 I country. It is, therefore, decidedly unfair to compare locomotive maintenance costs on a mileage baas only. To contribute a graphical representation of the difference in the topography of level and mountainous districts, portions of profiles are given. Under the profile illustrating the level country is shown the density of traffic, with the cost of locomotive repairs and fuel per 1 ,000 gross ton miles. Beneath the profile illus- trating the mountainous section, is shown the same information, also the cost of repairs and fuel for a twelve months period. On the level territory the density of freight traffic was 70.1% greater than on the mountainous country. From the following statement tabulated from official data, it is evident that locomotive exiK'uses, repairs, and fuel are 59.1% greater in the mountainous country than in the level country. Cost of Freight Locomotive Repairs and Fuel on Level and Mountainous Country for 12 Months Period. Level Country 1,000 Gross Ton Miles 5,300,827 Density of Traffic, per mile, 1,000 G. T. M 6,884 Total Cost of Locomotive Repairs and Fuel $1,396,729 Cost of Locomotive Repairs and Fuel per 1,000 G. T. M 0.264 Mountainous Country 1,000 Gross Ton Miles 4,049,015 Density of Traffic, per road mile, 1,000 G. T. M -*.049 Total Cost of Locomotive Repairs and Fuel $1,699,182 Cost of Locomotive Repairs and Fuel per 1,000 G. T. M 0.420 At Traffic Density in level country, increased cost of Repairs and Fuel would be $1,190,000 The cost for locomotive repairs and fuel is thus 59 per cent greater for the mountainous districts than for the level districts, although compound locomotives are used and shop practices and supervision of fuel are the same on both territories. Nevertheless it would be unreasonable to expect to bring the grades of the mountainous districts down to those of the more level districts. 17 \ Cost of Locomotive Repairs and Fuel in Level and Mountainous Country. Main Line Freight— 12 Months Period. Level Mountainous Country Country Total 1,000 Gross Ton Miles .-•■ 5,300,827 4,049,015 ' r» A Tv^i 770 1,000 Road Mileage. Density of Traffic, per road mile, 1,000 Gross Ton Miles 6,884 4,049 Total Cost of Repairs « 599,689 $ 647,886 Total Cost of Fuel • T^W^^ "^^^ rp^^^l $1,396,729 $1,699,182 Cost of Repairs, per Road Mile * 799 $ 648 Cost of Fuel, per Road Mile ^'^^^ i^TTl Total ^ 1'814 • $ 1,699 Cost of Repairs and Fuel, 1,000 G. T. M « .264 $ .420 Increased Cost of Repairs and Fuel on 1,000 G. T. M. basis of mountainous , , . $ 631,640 over level country Percent Increase per 1,000 G.T.M 70.1% Cost per Road Mile at Traffic Density of Level Country » ^'»»'^ SI 190 Increased Cost per Road Mile - * ' If business were increased 70.1% on the mountainous country, so that the Density of Traffic should be as great as on the level country, the increased cost for Locomotive Repairs and Fuel would be 1,190 X 1,000, or $1,190,000 The expenditure for Maintenance of Equipment on the Burlington in 1910 amounted to $1,609 per mile of road as compared with $921 in 1902; however, in the meantime the tonnage handled per mile of track nearly doubled. During the same period, the weight of locomotives increased 40% and the average capacity of freight cars increased from 24.7 tons to 33.6 tons or 36%. The great extremes that exist in Maintenance of Equipment expenditures (and undoubtedly each is justified in the expenditure) are shown on the Minneapolis & St. Louis with a ten year average of $5(K) per mile of road as compared with the Philadelphia & Reading, which expended $5,932 per mile during the same period To look at these figures alone one would say that the Philadelphia & Reading spent twelve times as much money annually as was necessary for Maintenance of Equipment, which inference is of course absurd. , r^ . ^ . Again the nature and character of traffic has much to do with Maintenance of Eqmpment costs. The Burlington, for example, has its so called ''stock rush" where a great volume of stock must be trans- ported at high speed. Many times consignments of 20 or 25 cars are received that cannot wait for other cars to make a full train. This results in high costs. On the other hand al3out two-thirds of the tonnage of the Lackawanna is made up from products of mines which can be hauled in large capacity cars at low speeds, resulting in remarkably low costs. j , r *i • i • The Southern Pacific presents another example of the same nature. A great deal of their business consists of fruit from Southern Cahfornia which must be handled when the consignments are iced and ready to go and must run at high speed. This causes a heavy traffic east bound with a corresponding light movement west. The Great Northern, however, has a steady slow freight business, carrying wheat west bound and lumber east bound, thereby being able to make a much better showing than the Southern Pacific in equipment maintenance costs. • m- It is therefore evident that the employment of the unit ''per mile of road for comparing Main- tenance of Equipment performance without special reference to operating conditions, and character and volume of business, is meaningless and of doubtful value. IS The same thing may be said of the comparison of total Maintenance of Equipment per locomotive mile, inasmuch as increased tonnage per engine mile may decrease the cost of operation per ton mile but will increase the maintenance cost per locomotive mile so that each of the several divisions must be subjected to a separate analysis. The gross tons hauled one mile is a fair and equable unit to use as a basis in computing maintenance costs. Although the gross ton mile is made use of on some railroads, the published statements and the Interstate Commerce Commission reports never show this very important figure, nor do railroads generally use it for a basis of computation. The figure used is the revenue ton mile, which may be the all important figure when considered financially, but it is not the basis which should be used when considering main- tenance costs. Many roads, necessarily, haul company material long distances. Locomotive fuel, for example on the Southern Pacific, amounts to 8,000 net tons per day and is carried in many instances 300 or 400 miles with a corresponding empty car mileage back. The Pennsylvania mines its coal on the Une of road and hauls it but a few miles. Iron products of all kinds, rails, boiler steel, car wheels, axles, shop machinerj- and tools all go to make a heavy tonnage for long distances on western roads which constitute non-revenue freight and consequently do not appear to the credit of locomotives which do the work of hauling. It is thus manifestly unfair to compare maintenance costs of western roads with eastern roads on a revenue ton mile basis, but it would be more nearly so if the gross ton miles were used. Another common and equally misleading method of comparing maintenance costs is the employment of the locomotive, the freight car or the passenger car as a unit for the maintenance costs for locomotives, freight cars and passenger cars respectively. That comparisons of this nature are erroneous is emphasized by the record of locomotive mainten- ance on the Atchison where the cost per locomotive was 48% higher in 1910 than in 1901, which would indicate, if the locomotive is the proper unit, that repairs had increased at an enormous and extravagant rate. However, the average weight increased 37%, the tractive force increased 41% per locomotive, and in the meantime, maintenance cost per ton of tractive force decreased 4%. A still greater decrease is noted if we use the "tractive mile" or "work unit" as a basis. An explanation and detailed examples of this unit will be given in a following chapter. This plainly indicates that the locomotive maintenance costs per locomotive should have but little weight in a comparative analysis of locomotive costs. An example of freight car maintenance costs is found on the Burlington where the repair expense increased from $58 per car in 1901 to $98 per car in 1910. During this period the average capacity increased from 24 . 7 tons to 33 . 6 tons. The maintenance per car mile increased 37%, but the maintenance per revenue ton mile increased only 4% plainly indicating the unfairness of using the costs per car as a basis for com- parisons. A thorough discussion of maintenance costs and detailed examples from representative railroads will be given in the next chapter. 19 Maintenance of Way and Structures. ^ CHAPTER III. The major portion of any railway's initial cost and capitalization is represented in the road, and not in the rolling equipment. The road, moreover, represents approximately as large an annual expenditure for maintenance as does the rolling equipment; and, though it does not appear in the account^s, an even larger sum for depreciation. Not only this, but the continual improvements in transportation methods and standards entail the sinking of larger capital sums annually in betterments than is the case ^nth the equipment. No one department of a railway's operation has such a potent effect upon the w^hole character and results of that operation as the department having jurisdiction over maintenance of way and structures, including therein those activities of the railway charged with the physical betterment of the way, and with the provision of additional facilities. The train load is more a function of the grade than of the size of loco- motives. Grade, therefore, is the principal cause affecting cost of transportation, and grade is dependent largely upon topography. Topography also determines the cost of way so far as it relates to engineering, but not so far as it relates to ground values. Tunnels, bridges and terminals involve capital expenditures, running into the millions per mile, and very large traffic results must accrue to warrant any considerable expenditures for this kind of mileage. Curvature, also determined by topography, is an obstruction to fast and economical opossible load areas alx)vc the platform of the cars of approximately 60 to 70 square feet in British practice as compared with 110 to 150 square feet in American practice, giving about 100 per cent more load per foot of length of car on Ameri- can roads than on British. Thus it is that the British "goods wagons" have a capacity averaging barely one-fourth the capacity of the American eight-wheeled freight cars, a restriction in carrying capacity per unit length of train, imposed chiefly by the much smaller clearances obtaining abroad. In this respect, Western roads in the United States, roads generally in new countries, and roads particularly in flat plains regions, have a great advantage over roads in older, more settled or more mountainous regions. Any attempt to increase the clearance through a settled community or over a mountainous line, tends to become prohibitive in expense and almost insurmountable in physical and legal obstacles. Bridges and Track. Bridges are designed for a maximum load and speed factor; loads and speeds above those used in the factor of design produce stresses in the structure exceeding safe working limits, and insofar as the bridges cannot be strengthened to support a heavier load or higher speed than that for which they were designed, act as a hindrance to the movement of traffic by economical train loads and speeds. Not long ago, 40,000 pounds was the unit locomotive-axle load used in Cooper's formula. Driving-wheel axle loads exceeding 50,000 pounds are usual current practice now, and loads between 60,000 and 70,000 pounds are not uncom- mon. It is obvious that a line built or rebuilt to-day for heavy traffic should be equipped with bridges and culverts capable of supporting an axle load not far short of 100,000 pounds, if future needs, within the economical life of the structures, are to be provided for. What is true of bridges is in large measure equally true of track from the ball of the rail to the road bed. The wearing surface of the rail must possess sufficient hardness to avoid metal flow under the greatest wheel pressures; to wear such a length of time under dense traffic as not to make frequency of renewals an uneconomical burden on operation. The rails must be so stiff as not to fail under the greatest shocks, both vertical and side, experienced in practice, and must be so supported at sufficiently frequent intervals as not to bend, and upon a sufficient area of sleepers and ballast to eliminate the tendency to crushing or settling. Without at this time going into such details as kinds of joints, rail fastenings, character of ballast, types of bridges, etc., that are desirable under modem operating tendencies, it is evident from the foregoing that the engineering practice of a railway is of the greatest importance in its influence upon the whole econ- omy of operation, and in the end, upon financial return. Thus it is that the men possessing the most extended and highest technical training are found in the engineering departments of American railroads, whereas men who have achieved eminence in mechanical and transportation departments are quite usually practical men who have risen from the ranks and whose school has been that of experience. Although the prime importance of the relation of engineering problems to profitable railway location and operation is well recognized, the actual cost of maintenance of way and structures does not vary with the traffic, or does not bear nearly so constant a ratio to traffic density as is the case with maintenance of equipment and transportation expenses. In fact, maintenance of way expenses increase with increase in traffic in less proportion than do even the fixed charges. This statement is of course a generalization and specific exceptions will be found. When it comes to determining the character of the way and structures, the financial problem is a nice one. The adaptation of facilities for the economical handling of traffic must be balanced against the necessity of holding the investment within such a limit as to obtain the maximum safe (as well as economical) use of the facilities afforded. Some examples may illustrate more clearly than extended demonstration the purport of this proposition. It was desired by a capitalist to tap certain holdings in West Virginia coal lines by a railroad direct h\ ^o tide-water. The capitalist was not a railroad man, although eminently successful in a financial way. and in building a railway to his order he desired to get the best that money could buy. As an engineering proposition, the railway was very neatly worked out. Ruling grades of 0.2 per cent against eastward coal- loaded traffic and 0.3 per cent against westward returning empties, were established. Large-radius curves were used. The general character of construction was such that traffic of a hundred trains a day, each bearing 6,600 tons of coal behind a locomotive, could be carried. This entailed a construction cost of over $185,000 per mile. , As the United States' total average daily production of coal is only double the capacity for which this railway was built, it is evident that the investment in the character of construction of this railway was out of all proportion to the traffic it was desired to tap. This railway, like the steamship "Great Eastern," was built at least a generation ahead of time, and even if the unthinkable happeas and the roati ever does haul the amount of tonnage for which it was designed, the entire character of the construction now existing will have been swept away by obsolescence as well as by wear, and a new character of con- struction and equipment of much higher and more capacious type will perforce have had to take its place. This example typifies the extreme of expensive foresight. It is a curious side-light on the lack of foresight sometimes exhibited in important details of the most far-sighted schemes, that ordinary consolidation engines (or rather Mikado) were decided upon for motive power, although with the large-radius curves employed there was no reason why a decapod or even a rigid wheel-base type with six pairs of drivers should not have been employed, even if the recently intro- duced articulated engines were considered as in too experimental a stage to warrant their adoption as stand- ard. It must, however, be stated in justice to the supervising motive-power officer, that the Mikado instead of an articulated type was at first adopted against his protest and that recent orders for locomotives for this railway have been for the 2-6-6-2 type of articulated compound. Had an articulated locomotive of this type been adopted, or locomotive with six pairs of drivers and a rigid wheel base, or even a decapod with somewhat heavier axle-loading than was the case with the Mikado engine, the ruling grade might have been 50 per cent greater than it was, without an increase in operating cost per ton mile nearly as great as the additional fixed charges necessary to estabhsh the lower ruling grade that was actually adopted. And had the imagination of the constructors contemplated the introduction of a 0-10-10-0 or 2-10-10-2 type of locomotive with an axle-loading of 70,000 pounds— an entirely feasible type under modern engineering practice— a tractive force per locomotive unit of over three times that obtaining in the Mikado engine would have been available, with the result of permitting economical operation over ruling grades of 0.6 percent east-bound and 0.9 west-bound. Taking into account . however, the somewhat increased fuel and repair charges, and the diminished speed of traffic, grades of about 0.5 percent and 0.7 percent would probably have been most economical, considering the relation of operating costs and fixed charges. Since this was an entirely new road, handling one commodity, coal, and with its own and new equipment, there is no reason why the clearance should not have permitted the use of cars 14 feet wide by 20 or more feet high above the rail, giving a load cross-section of over 200 square feet. A 60-foot-over- couplers coal car of this cross-section, equipped with six-wheel trucks, would have a coal capacity of over 100 tons; equipment of this kind would materially reduce the train length, train resistance, and the pro- portion of dead weight to live load, and reduce also yard and terminal detention of all kinds. The use of this equipment on the line of this railway alone would not have prevented the use of the usual smaller equipment for interchange traffic. The ca.se of the Virginian railway has been gone into at length because it is so recent and conspicuous an example of the failure to provide for a given traffic at a practicable minimum total of operating and fixed charges. There is no question but that the operating ratio of the road will be very low indeed, but there are cases where it is not to the stockholders' interest to purchase a decreased operating cost with too large a bond issue. In contrast with the case of the Virginian Railway in the East, may be taken that of the Missouri Pacific in the West. The Missouri Pacific extends to the Mississippi and has a large tributar>' mileage in Kansas, running up against the Rocky Mountains at Pueblo. The Buriington has its tributary mileage 23 further north in Nebraska, with its through line to Denver. The Atchison, while possessing a Chicago connection, has also a large tributary mileage in Fkstern Kansas, and reaches the mountains just the other side of La Junta, Colorado. An examination of the i)rofiles will show that the ruling grades on both the Burlington and the Atchi- son are lower than those of the Missouri Pacific. This failure of the financial management of the Missouri Pacific to effect a grade revision similar to that so successfully carried on during the past ten years by its competitors, coupled with the notoriously poor maintenance of the road bed of this system, has no doubt had much to do with the coincident failure of these lines to estabUsh a large and growing profitable traffic, as has been the case with its neighbors. It has already been pointed out that tunnels, bridges, and terminals constitute very expensive mileage with which to secure traffic, and that traffic must indeed be very great to warrant large investment therein. This is the prime difficulty confronting the so-called Moffat road. In order to complete a line from Denver to Salt Lake that will furnish a competitive grade to existing lines, some $40,000,000 must be literally sunk in what would be the longest tunnel in America, an investment which financiers controlling such sums are correct in believing unwarrantable from the share of trans-Rocky Mountain traffic this line would be likely to secure. It would manifestly not be a justifiable investment for existing roads to buy out and complete the D. N. W. & P., thus spending a great deal of money in order to have a line competitive with their existing investment. This fundamental economic condition is responsible for the proposition that the state of Colorado shall complete this enterprise. Individuals are ever ready to permit governments. State, muni- cipal and national, to take over unprofitable enterprises — one of the most potent causes for government management of European roads. An enterprise similar to the D. N. W. & P. is found in the Florida East Coast. In order to shorten, by an unimportant few miles, the water distance between the North American continent and the island of Cuba, this railroad is bridging at an immense cost the Florida keys to Key West. As with the present state of the transportation art, train ferriage across these straits, a matter of a hundred miles, is neither practical nor economical, the yield on the investment in this piece of mileage would seem to approach the vanishing point. Turning our attention from unprofitable tunnel and bridge schemes to equally questionable terminal extensions, the cases of the Wabash and Pennsylvania may be examined. The Wabash, desiring to tap the profitable Pittsburg tonnage in competition with the existing Pennsylvania facilities, built the Wabash Pittsburg Terminal Railway at a cost of nearly $1,000,000 per mile. In this case, the Wabash earnings would have had to be augmented by some $10,000,000 gross per year from Pittsburg alone, not otherwise securable, to warrant the investment. As is well known, this result did not take place. The New York Central secured its entrance to the very heart of Manhattan Island by a tunnel in which the running of steam locomotives was an intolerable operating condition. Probably it would have been a wise plan for the New York Central and the New Haven to establish a great freight and passenger terminal in the Bronx, and to turn the Park Avenue tunnel into an electric subway to be operated pre- ferably in conjunction with the existing subway lines. Passengers arriving at the Grand Central Terminal must in any case be conveyed to some other portion of the city, and it would have probably been both cheaper and more convenient from an operating point of view, and in the view of pubUc service, for the New York Central to have made this kind of an arrangement and to have purchased control of the Inter- borough System (subway and elevated) than for it to go to the far greater expense of attempting to run its solid passenger trains into the heart of the city. Used as a subway, the Park Avenue tunnel would have not only cost less to equip for electric operation than the present installation, but would have yielded a very considerable capacity from the operation of local tracks. If in the case of the New York Central it was an expensive financial policy to reconstruct existing terminal facilities as has been done, what can be said of the Pennsylvania, which apparently borrowed trouble by extending its main line also into the heart of New York City? The Hudson rapid-transit tunnel system is to-day a more convenient means of gathering and distributing the Pennsylvania's passengers 24 1 / than is the magnificent terminal erected at 32nd Street. And if it be contested that the Pennsylvania's tunnel across Manhattan Island was justifiable as a far-sighted scheme to make Montauk Harbor, at the eastern end of Long Island, a Trans-Atlantic port, this still does not justify the elaborate and costly terminal station provided at 32nd Street. In fact, the Pennsylvania should have co-operated with the existing Hudson Tunnel Company, probably securing control of it, with the view of using that system as a passenger feeder and distributor for its steam terminal in New Jersey, eventually adding a large-dimensioned through tunnel to the smaller local traffic tunnels in case the Montauk Harbor plan came into actual being. It is inconceivable that the additional traffic secured to the Pennsylvania by tapping the borough of Manhattan will yield a proper return upon the miUions invested. Had the Pennsylvania adopted a less grandiose but more practical poUcy of making some such arrangement, as suggested, with the Hudson Tunnel Company, it would have probably had enough free cash to spare, as compared with the existing investment, to have secured control of the entire rapid-transit facilities of New York City; or it could have purchased what would amount to a controlling interest in such profitable earnings as well as traffic connections as the Illinois Central, Northwestern, Atchison, or St. Paul. What a magnificent and far-sighted as well as profitable extension this would have been, com- pared with the erection of the architecturally beautiful but financially unprofitable monument on Seventh Avenue. The policy pursued was indeed spectacular, but it was not railroading. It begins to look as if, egged on by the prodigal example of this passenger terminal investment in New York City, an attempt was going to be made to force the railroads running into Chicago to electrify. Economically and as a piece of practical railroading, there is not a particle of justification for such a step; and it is probable that the abolition of coal from Chicago would materially check its growth and divert continental traffic interchange in large part to other centers, thus having a boomerang effect upon the citizens of Chicago. The abolition of coal shipment from Chicago would very largely increase the cost of power there and tend to drive manufacturers away. Certain it is that by no stretch of the imagination could any additional income worthy of the name be secured, consequent upon the half-billion dollars needed to effect complete electrification of all terminals. It is to be hoped that the legal obstacles will prevent the commission of any such national extravagance. So far we have considered certain striking examples of railway construction relative to grade and terminals. We have yet to consider the effect of clearance, track, and bridges upon economical operation. A few months prior to his death, Mr. Harriman gave an interview to the effect that he believed that a six-foot gauge would be the next big development in raih-oading. No financier has been a more astute and thorough student of actual railroad operating conditions and economies than Mr. Harriman. Nevertheless this broad-gauge proposition, although sound in an engineering sense, would not be sound financially. It would cost too much to make the change, and the losses from having to transship between the standard and broad-gauge fines would much more than offset any operating economy due to the more massive locomotives and immense train loads securable by broadened gauge. The broad gauge, even if practicable in a financial sense, would as a matter of expendiency be constructed first along the condensed traffic lines so as to secure the earliest return upon the investment. Investment would of course be greater in reconstruction through a well settled and built-up region. It is safe to say that electrification, also a dense traffic development, will precede as a proposition of financial return in the broadening of the gauge; and with the advent of trunk-line electrification and its possibility of multiple-unit train control, the necessity for a broad gauge in order to increase unit train loads will have been eclipsed. As has been pointed out in discussing the Virginian Railway case, vast increases in unit train loads are at present possible with steam locomotive power, having been made so by the advent in American railroading practice of Mallet coi. pound articulated locomotives. To-day the customary heaviest freight and passenger locomotives are resi ectively of the consolidation and Pacific types. Yet articulated locomo- tives have been built for each of these services of practically double the tractive force of the former rigid- wheel-base types. Indeed, some freight locomotives of the 2-10-10-2 type have actually been built, and there is no good reason to suppose that an articulated locomotive of even double or treble this immense size, with four or six sets of drivers, would not be practicable as a locomotive, not even considering such 25 / increased power as would normally follow from the constantly progressive tendency toward increased axle loads. There are, however, at the present time many practical operating conditions militating against the use of engines much larger than the 2-8-8-2 type for heavy grade through traffic. Principal among these limitations is that of the capacity of draft gear, of yards and sidings, and of engine terminals. With the successful test, however, of the steam-electric locomotive recently built by the North British Locomotive Works, it would seem more likely that a mobile powerhouse strung out on wheels may eventually be the intermediate step between all-steam and all-electric traction, partaking of the operating and investment cost advantages of each system. In other words, it looks as if increase in train length rather than increase in train section (due to broader gauge), will continue to be the normal development, maintaining a proper balance between reduc- tion in operating cost and increase in fixed charges. No chain is stronger than its weakest link. Critical links in a railroad's mileage are its bridges. Great solidity of construction may often be as short-sighted as construction of too flimsy and too temporary a nature. Early construction in Europe employed masonry bridges and viaducts which could presumably withstand the ravages of time and use for centuries; but although the early builders thought they were building for the future, their imaginations were not equal to the actual development, and most of these structures had to be replaced by still more massive types in order to support the heavier motive power of modern times. At the present time it is found to be impracticable to further reduce transportation costs by the use of heavier locomotives, owing to the prohibitive investment required in the replacement of bridges, etc.; as the money to amortize the structures destroyed in most cases cannot bo found. In contrast to European practice in this respect was that of the roads of Western America, where wooden trestles and steel truss bridges were the rule, involving the writing off of but a small amount of capi- tal value when grade and traffic needs required replacement by more substantial structures. As has been pointed out, there is little reason to believe that we have reached within 50 percent of the attainable locomotive and axle loads. It would therefore seem an imprudent policy to design roadway structures for a useful life beyond a limit that would be set by progressive intensity of traffic requirements. The Pennsylvania, for instance, in the past few years has gone in for concrete and stone bridges. Within fifteen or twenty years, these will presumably be unequal in capacity to the traffic requirements, and a smaller investment in steel structures would probably be the wiser policy. To build too substantially and extensively for the future, whose growth cannot be accurately reckoned, is to sink an investment and to accrue corresponding interest and depreciation charges (compounded), ultimately greater than the cost of replacement of the structure at a date prior to its being worn out by use. This danger of mistakenly building for and mortgaging the future must ever be guarded against in the acquisition of all railroad property, but more particularly in the investment of roadway and structures than in equipment. Track. In one essential respect does railroad traffic differ in principle from other road traffic, and that is in the use of a special track instead of a common road. This distinction places the railroad train more in advance of the road tractor as an economical means of bulk transportation, than the tractor is with respect to animal portage. The track is the all-important feature that makes modern railroading the factor that it is in civilization. Character of motive power and type of vehicle may be radically changed without essentially altering the relation of the railroad to the community; but any substitution for the metal rail with the wheel loads it is able to support would have the most subversive effects upon our whole transportation system. In no respect, therefore, is careful attention to detail and adequate planning for the future so important in railroading as in matters relating to track. As a general rule the cost of securing the right-of-way and preparing the roadway is greatly in excess of the cost of the track and ballast, and generally it is wise, after having invested so heavily in the former, to furnish such a character of track and of equipment as will be best able to handle a large traffic most economically. 26 It would be a pity for a man who had bought a lot in a fine location and erected thereon a fine hou;:^ upon a massive foundation, not to provide such a roof as to render the house habitable and thereforii income producing. Similarly it is a pity for well located railroads not to add to the income value of the hundreds oi millions invested therein by providing a machinery of transportation — track and equipment — of the most efficient character. But as has been said of bridges, of grade reduction, and other expensive elements of railroad building, some of the things that are most desirable from an engineering and operating point of view are not justi- fiable in an earning sense, and such is the case with respect to rails of a section larger than the traffic re- quirements of the immediate future, of the use of alloy rails of high cost per ton, and of proper stone ballasting. In American practice to-day, there are few locations outside of the sharper curves in dense main- line traffic lines, where alloy rails are financially justifiable. On the other hand, there are many portions of main line where the rail section should unquestionably be heavier than the 100 pounds per yard now used. Most American rails are far too light for the traffic imposed upon them, this being as much responsible for the epidemic of rail failures as is the process of manufacture. In other words, track construction in the United States has failed to keep pace with locomotive loads. But as to the economy in the use of tie-plated, hard-wood, non-decaying ties, the tie plates attached to the tie by bolts or screws, there can be no question whatever, in standard-gauge railroad practice. The only question is as to the details in the design of these parts and fastenings. The saving within the life of the tie incident to the use of such a construction, would more than pay for the larger investment and incident additional charges thereon. An incidental advantage to such a construction is the ease and low cost with which rail relaying and transfer may be made, thus permitting of the use, for a shorter term of years, of lighter section than would be indicated as economical, when taking into consideration the costs of relaying under present practice. Those charged with the supervision of the locomotive and train service and of the equipment main- tenance are brought into close contact with grave difficulties in the labor question, difficulties consequent upon the demands and threats of labor organizers. Those charged with the maintenance of way are also beset with a labor difficulty — not one, however, of organization, but of reliability, competence and skill. The native track man is rarely found except as a section foreman, and this notwithstanding the rise of 25 percent in trackmen's wages in the past ten years. The foreign labor element securable is far from satis- factory, and does not furnish the proper human material from which the section foremen of the future must be made. A regeneration is in order, and it would seem that this could be secured only by the application of power-driven machinery to track work, thus exchanging, in the character of the laborers, numbers for skill, intelligence, rehability. The mechanical construction and upkeep of track has been an actual and practical reality for at least a half-dozen years, and it now looks as though the experimental advances that have taken place in various parts of the world in this respect in recent years would be combined into a progressive forward movement of great import, both in the reduction of railroad construction and maintenance costs, and in the uniform excellence of that maintenance and construction. The most rapid advances that have been made in these respects are to be found in France, and upon certain roads in the western States, notably the St. Paul, the Atchison, and the Government railroad at Panama. Track-laying machines should be in still more general use in America. In conclusion, both a statistical and practical study of American railroads in their roadway costs shows the following conclusions: — The principal investment in a railroad is in its roadway; and in building, rebuilding, or extending a road such a policy should be adopted as will balance growing traffic capacity and lowered operating cost against larger fixed and deprcciatum charges. This rule applies also to terminal facilities and through traffic links involving expensive construction. Generally speaking, larger motive power will enable traffic to move more cheaply, considering incre- ments to fixed charges, than the same total operating and fixed expenses on a lower-grade line with small motive power; conversely, a larger fixed charge plus operating cost will usually result from a policy of grade reduction than from motive-power expansion. 27 For the support of constantly increasing axle loads, traffic density and train speeds, track of very s\il)stantial and durable character must take the place of that now existing. And lastly, the further substitution of machinery for hand labor must take place in construction and maintenance of way, as a similar substitution has taken and is taking place in the construction and maintenance of motive power and rolling stock. /m:f/m6e n/i/nTtm/rc^ or mr/iND st/^uctures ro TomL o/r/?/iT//r6 fx/^f/YJt togethe/^ ^/th /fiCRf/fSE OR D^O?f/fSr con PARED ^/TH /90/. Percentage ria/ntenance of h^ai/ and Sirucfures to loiaf Operating Expense. /n crease or decrease Comparec/ iv/t/? /90A III The above diagram illustrates the point that expenditures for maintenance of way depend more upon financial conditions than upon actual needs of the property. The variations are seen to be exceedingly wide. 28 MAINTENANCE. OF my AND 3TRUCTUPE^ PER LOCOMOTIVE M\LE Eor Fiscal Years 1908-IW^ ANDHIO CenT3 to z.o 30 /90S GNOf^ f909 /9/0 /90Q SOU.Rrj909 1910 Cents to zo 30 -40 Financial manuals use the unit "mile of road" by which to measure earnings and expenses. This unit, unsatisfactory enough in measuring expenses for maintenance of way and structures, is still less satis- factory in measuring expenses for maintenance of equipment. It would, in fact, be more logical to measure expenses of maintenance of way and structures by the locomotive mile unit, and the diagram above illus- trates such comparison. 29 ■MMiMI RELATION or TRAmC TO MAINTENANCE or i^AfC05T5 ON REPRESENTATIVE EASTERN AND WESTERN ROADS -1 910 CBCra £:ric LV VvVvvVVvv V-.VX DOJLLAR5 SCOC TOHMiLCS OOLLJkRS ^ 2J COST OF A«AINT£AIANCC OF ^AY AAfD 5T/?UCrUP£S P£R AffLC OF ROAt^^ TRAFFIC DENSITY (R£.V£.NUE TON MILES f^ER MILE Of ROAO) MAINTEHANCE OF ¥YAY ANO STRUCTURES RER fOOO REI/ENUC TON MILES. The above diagram shows definitely the difference in traffic conditions between eastern and western railroads. It also shows that comparisons of maintenance costs per mile of road which do not take into account traffic density are valueless, although this is a unit usually employed by investors and railroad men in judging as to upkeep of the property. It also is shown above that maintenance does not vary directly in proportion to traffic density, although it might seem logical to suppose that would be the case. In other words, traffic density or earnings determine the amount that shall be spent in maintenance of way. 30 mt)t(ttm^- Railroad Operating Costs. CHAPTER IV. MAINTENANCE OF EQUIPMENT. In point of magnitude, maintenance of equipment ranks second among the items entering into operating expense. In 1901 it ranked third. The relative proportion of the main divisions of expense averaged for the large railroads in the years 1901 and 1910, as follows: 1901 1910 Maintenance of Way & Structures 22.3% 20.5% Maintenance of Equipment 18.6 23 . 2 Conducting Transportation 55.0 53.0 General Expense 4.1 3.3 Of all the main divisions of expense shown above, maintenance of equipment is the only one which has increased in ratio to total operating expense during the ten year f)eriod ending with 1910. This increase is very marked and in strong contrast to corresponding reduction in the other three main operating divisions of expense. The relative proportion of the four divisions of expense to the total cost of operation for the period between 1901 and 1910 is shown graphically in Fig. 1. Classification of Operating Expenses in Percent of TotaL Maintenance Maintenance Conducting General Year of Way of Equipment Transportation Expenses 1901 22.27% 18.63% 54.98% 4.12% 1902 22.26 19.13 54.67 3.95 1903 21.19 19.13 55.89 3.79 1904 19.52 19.97 56.67 3.84 1905 19.78 20.76 55.48 3.96 1906 20.29 21.39 54.43 3.86 1907 19.66 21.06 55.54 3.73 1908 19.73 22.06 54.89 3.32 1909 19.29 22.75 53.98 3.98 19101 20.50 23.20 53.00 3.30 t Large Roads. The steadily increasing cost of maintenance of equipment during the past decade, as reflected by the chart, is as conspicuous as the corresponding reductions in the other three items of operating expense. The component charges entering into maintenance of equipment, such as labor, material, etc., are also common to the other operating items, maintenance of way and conducting transportation. The assertion therefore that higher labor and material costs are responsible for the increasing ratio in the cost of main- tenance of equipment to total operating expense does not hold when the same test is apphed to conducting transportation and maintenance of way. That a definite relation exists between increasing cost of maintenance of equipment and decrea.» f\tchi5on '01 '02 '05 '04 '05 06 'OP 06 '09 '/O '02 '03 '04 'OS '06 '07 '06 '09 'fO <5outhcrn Pac ific Co. ■30 '01 '02 '03 '04 'OS 'Ot> '07 '08 'OO 'fO 02 'as '04 'OS '06 '07 'oe '09 '/o Fia. 2. ten years is shown in accompanying table and graphically in Fig. 2. The percent increase in maintenance charges to the total compared with the year 1901 are also included A\ith similar information for four repre- sentative roads. 38 Table No. 2. Ratio Maintenance of Equipment to Operating Expense. Year Large Roads Atchison Sou. Pae. B. &0. P. R. R 1901 18.6% 21.3% 18.2% 19.7% 23.6% 1902 19.1 24.4 19.3 20.5 23.4 1903 19.1 22.8 20.8 21.5 24.2 1904 20.0 24.0 21.9 24.0 23.7 1905 20.8 24.6 23.6 24.3 25.8 1906 21.4 22.8 23.8 25.0 26.0 1907 21.0 21.3 21.6 24.2 26.0 1908 22.1 24.6 20.6 23.2 26.1 1909 22.8 25.2 23.0 22.3 26.1 1910 23.2 23.0 22.7 26.0 26.0 Crprcity of Freight Cms. Bverage Capcicity in Tons. Percent Increase Compared With }90Z. Percent Increase in Maintenance of Equipment to Operating Expense Compared with the Year 1901. Year Large Roads Atchison Sou. Pae. B. &0. P. R. R 1902 2.7% 14.5% 6.6% 0.4% 00.0% 1903 2.7 7.0 14.9 9.1 .01 1904 7.5 12.7 21.0 21.8 .04 1905 11.6 15.5 30.4 23.3 9.5 1906 15.0 7.0 31.5 27.0 10.2 1907 12.9 00.0 30.4 23.0 10.2 1908 18.8 11.7 23.7 17.7 10.6 1909 22.6 18.2 39.2 13.2 10.6 1910 24.7 8.0 25.4 37.0 10.2 In 1901 equipment on tlie large roads was maintained for 18.6 percent of total operating expense. During the following decade the percentage increased steadily, reaching 23.2 percent in 1910, an increase of nearly 25 percent over the figure in 1901. The same conditions in varying degree are reflected in the records of the representative railroads shown. The Southern Pacific Company maintained their equip- ment in 1910 for 22.7 percent of total operating expense, an increase of 25.4 percent over 1901 ; similarly the Atchison for 23 percent, an increase of 8.0 percent; the Baltimore & Ohio for 26 percent, an increase of 32 percent; and the Pennsylvania Railroad for 26 percent, an increase of 10.2 percent over 1901. As previously stated, repairs to locomotives are approximately proportional to their weight. Like- wise, an almost fixed relationship exists between weight of locomotives and tractive force. The latter unit then can be taken as a measure of the size or weight of locomotives. The average tractive force of locomotives from 1902 to 1910 with the percent increase compared with the year 1902 is shown in Fig. 3 and accompanying table : Tractive Force. Year 1902 1903 1904 1905 1906 1907 1908 1909 1910 Percent Increase Average per Compared with Locomotive 1902 20,480 Lbs. 00.0% 21,780 6.3 22,800 11.3 23,430 14.4 24,740 20.0 25,640 25.2 26,356 28.6 26,634 30.0 27,200 ^Estimated) 32.8 34 '03 06 OT Fig. 3. LocoMOT/i^E Tractive Force f\\/eraqe Tractive Force in 1000 Lbs. Percent Increase Compared With )90a. 02. 03 '04- OS Oi 'OT O0 09 10 'D3 '04 OS 06 '07 Fig. 4. There is also a remarkable similarity in the increase of capacity of freight cars and tractive force of locomotives for the period between 1902 and 1910. During this time the capacity of freight cars hat; increased 28.6 percent and the tractive force of locomotives 32.8 percent. Cars and locomotives have steadily grown larger in approximately the same ratio from year to year. The average capacity of freight cars from 1902 to 1910, with the percent increase compared \»-ith the year 1902, is shown in Fig. 4 and accompanying table. Capacity of Freight Cars. Year 1902 1903 1904 1905 1906 1907 1908 1909 1910 Average per Car 28 Tons 29 30 31 32 34 35 35 36 (Estimated) A comparison of locomotive tractive force and freight car capacity with maintenance of equipment to total operating expense for the period between 1901 and 1910 (Fig. 2 and 3) establishes the close rela- tionship between maintenance costs and size of equipment. Cost of maintaining locomotives or cars is approximately proportional to tractive force or capacity. Through the medium of larger equipment, lower costs of conducting transportation are secured, entailing, however, increased equipment charges in proportion to the size of equipment. 35 Percent Increase Compared with 1902 00.0% 3.6 7.1 10.7. 14.3 21.4 25.0 25.0 28.6 Maintenance charges for large equipment are greater per unit on account of increased size of loco- motives and cars, more extensive shops and terminals, heavier machinery and modern facilities for hand- ling and repairing, increased wear and tear on equipment from heavier trains and the various other items coincident with operation of heavier power. Operating conditions on the railroads east of Chicago are along fixed and tried lines while the west is still in a more or less new and unsettled condition. Labor in the west is scarce and generally of pK)or quality. It is therefore necessary to pay higher wages in order to attract the better class of labor from the east. As the labor charge constitutes more than half the equipment maintenance expenditures, the higher wages paid on western roads will be reflected directly in the total when comparisons are made with eastern roads. Metal workers, wood workers and miscellaneous shop labor include most of the employes in the locomotive and car shops and fairly represent the general labor situation. The total figures taken from the Interstate Commerce Commission reports separated into eastern and western roads are shown in chart form in Fig. 5 with actual figures as follows: fiVffi/lGE RATE PER HOUR P/flD VmOU5 EHPLOrEE^S OPf RAILROADS. East and l^est ofCh/ca^o, m. ct/rT5fr/fHoa^. mx? mm/m. ^^^^T /^ zo 2^ JO Jf Fig. 5. Wages per Hour. Eastern Roads Western Roads Percent Increase Western over Eastern Roads $.265 $.327 23 Percent .226 .253 12 Percent .197 .215 9 Percent Metal Workers Wood Workers Miscellaneous Shop Labor This marked increase of 23 percent in wages paid metal workers on western roads is a most import- ant item and should be given due weight when comparisons are made between eastern and western roads. LOCOMOTIVE MAINTENANCE. The most logical unit for measuring maintenance of equipment costs is the gross ton-mile but this is not available and is not kept by some roads nor is it required by the Interstate Commerce Commission. In the absence of this information the analysis will be continued with such data as is available. More than one-third of the total maintenance of equipment expenditure is charged to repairs and renewals of locomotives. These costs should therefore be carefully studied and the proper unit of com- parison adopted before conclusions are drawn. The prevailing unit, in comparing locomotive mainten- ance costs, is the locomotive or locomotive mile. In order to illustrate the great difference existing on various roads a chart (Fig. 6) is presented showing the cost of repairs per locomotive for the years 1908, 1909, 1910. 36 /^CPRIRS TO LOCOnOT//tS P^R LOCOnOTIVE. /OiOfl 19/0 I /9oe /rrct/rr /^^ /9/0 1900 BjStO. /909 1910 1906 iss-ns. 1^ 19 lO ^ /9/M ^^ / ./< 1909 I9IO ^ /906 /9/0 ^-i /9oe fC.Cd^S^L. >9C9 19/ O ^ /90B <5oaRr /o/o ^^^ /9/0 /906 /9/0 ■ aoa C6S<1 ^^ ^_ ^ f9/0 ■^ ^^^ CMS-R i9(» "■ /9C0 U,P 'S09 1910 ^^" ^ ^P f909 l9fO * /90S 19 lO > /90B /9/0 ^^^^^^ 1908 /9fO SOO /OOO /SOO ZOOO Z500 JOOO Fia. 6. 3SOO 37 Repairs to Locomotives per Locomotive. 1908 Penna. R. R «2,758 N. Y. Central 2,390 B. & 2,225 L. S. & M. S 1,690 Lehigh Valley 2,655 D. L. & W 1,960 P. C. C. & St. L 2,595 Southern Ry 1 ,907 L. & N 3,258 C. & A 2,571 C. B. &Q 1,840 C. & N. W 1,795 C. R. I. & P 2,150 Union Pacific 3,318 Southern Pacific 3,090 A. T. & S. F 3,220 C. M. & St. P 1,955 Great Northern 2,075 It is noticeable that there is a general increase on most roads and on the western roads in particular. The extremes on the eastern roads are noticed on the L. & N. and the P. C. C. & St. L. which expend about $3,000 per locomotive as against the Lackawanna with an expenditure of less than $2,000. Of the western roads the LTnion Pacific and Southern Pacific show an annual cost of about $3,500 per locomotive as compared to approximately $2,000 each on the Burlington, Northwestern, and the St. Paul. In order to form an idea of the relative performance it is necessary to know the average weight of the locomotives on each road, which is shown in Fig. 7. Even with this data it is almost impossible to draw definite con- clusions as to relative performance. 1909 1910 $2,490 $2,777 1,880 2,089 2,120 2,888 1,680 2,185 2,260 2,185 1,630 1,750 2,570 2,958 1,770 2,303 2,810 2,988 2,460 2,818 1,970 2,152 1,930 2,301 2,320 2,446 3,220 3,647 3,060 3,478 2,470 3,088 2,000 2,361 1,800 2,230 Average Weight on Drivers per Locomotive — In 1908 1909 Penna. Railroad 68 . 5 tons 69 . 7 tons N. Y. Central 65.6 68.0 B.& 64.9 65.2 L. S. & M. S 70.5 70.9 Lehigh Valley 60.9 62.5 D. L. & W 60.8 63.8 P. C. C. & St. L 63.4 63.5 Southern Ry 59.4 59.5 L. &N 59.0 59.4 C. & A 60.5 63.8 C. B. &Q 55.6 58.0 C. &N. W 46.2 47.5 C. R. I. & P 57.2 58.1 Union Pacific 67.7 67.6 Southern Pacific. 58.9 59.9 A. T. &S. F 63.9 63.9 C. M. &St. P 46.6 46.5 (Jreat Northern 67.0 66.9 38 Tons. 1910 70.2 tons 69.7 67.0 76.0 65.6 65.2 64.8 60.8 62.6 66.6 55.2 49.7 59.5 68.8 61.9 64.1 48.5 68.8 /iyC/f/l6t WmHTOfI DRIVm PER LOCOHOTiy^ F£m/iR/^ nrc^/ri B&o. Lsmd. IV. D.LjS^fV. FCCSS^L 60(/./?r Ll/Y. C.^/1 C6SQ csnw. C.RJ.i^P. a.R SP. /fJ'^J/!' cyy.^^STP arrroR. m Torts. /S08 /909 /9IO f900 /909 /9/0 /9oe /909 /9/0 /9oe /909 /9/0 /906 /909 /9fO /903 /9/0 /9oe /909 /9/0 /9ce /909 /9/0 /9oe /909 /9/0 i9oe /909 /9/0 /9oe /9a9 /9fO /9oa /909 /9/0 /90C /9C9 /9IO f9oe /909 /9/0 /909 /9/0 rgoe /909 /9/0 /9oe /9o9 /9to /906 /o 20 30 7X>fiJ. FlQ. 7. 4C 60 ec TO ao 39 The repair costs on a locomotive mile basis give but little better basis for comparison. The accom- panying illustration (Fig. 8) presents figures for representative roads and shows that the costs of repairs on the Pennsylvania Railroad and the Lehigh Valley are about 10 cents, while on the Lake Shore and Lacka- wanna they are but 7 cents. Of the western roads the Union Pacific and .'Southern Pacific expend more than 11 cents while the Northwestern and St. Paul cost about one-half as much. Repairs to Locomotives per Locomotive Mile — In 1908 1909 Penna. R. R 10.3 Cents 10.2 Cents N. Y. Central 8.2 6.8 B.&O 7.2 7.3 L. S. & M. S 5.9 6.1 Lehigh Valley 10.8 9.9 D. L. &W 6.4 6.2 P. C.C. &St. L 7.0 7.9 Southern Ry 8.0 7.1 L. & N 9.0 8.1 C.& A 8.2 8.0 C.B.&Q 7.5 7.4 C.&N. W 5.5 5.8 C.R. L&P 7.8 8.5 Union Pacific 11.2 11.3 Southern Pacific 10.9 11.6 A.T.&S.F 11.6 9.7 C. M. &St. P 5.5 5.4 Great Northern 9.2 5.4 Cents. 1910 10.1 Cents 6.8 9.2 6.5 8.7 6.7 7.8 8.4 7.9 8.3 7 6.3 8.3 • 11.3 11.5 10.7 6.0 8.7 R[miR^ TOLoconowES FEZ? Locomm^mi:. To fully interpret these results it is necessary to know the mileage made per locomQtive which is presented in Fig. 9. Miles per Locomotive — All Classes. 1908 1909 1910 Penna. R. R 26,700 Miles 24,430 Miles 27,610 Miles N. Y. Central 28,950 27,820 30,660 B. & O 30,750 29,155 31,480 L. S. & M. S 28,650 27,860 33,430 Lehigh Valley 24,400 22,790 25,060 D. L. & W 30,630 26,340 26,090 P. C. C. & St. L 37,100 32,410 38,020 Southern Ry 27,100 25,080 27,550 L. & N 36,300 34,740 37,900 C. & A 31,240 32,660 33,800 C. B. & Q 26,900 26,840 30,900 ' C. & N. W 33,000 33,330 36,530 C. R. I. & P 27,700 27,360 29,650 Union Pacific 29,500 28,520 32,300 Southern Pacific 28,400 26,350 30,250 A. T. & S. F 27,800 25,500 28,640 C. M. & St. P 35,900 37,010 39,490 Great Northern 22,580 22,360 25,670 40 i9oe 1910 f9oa /rrct/rr ^o» /»/o f9oe 3.^0. '^"^ 1910 ^ ^ ^ = B - \ JLSa'/7.J. /9« /9/0 /90g IV. /Sie> /9oe O.L SrlV '^'"' I9IO i9oa l9/0 /9oa 1910 i9oa = ■ 1 1 /9oa /3oe n= — —- — S B t9oa i9oa ^ /? / Jty0 /309 = ^^^ ^ u,,,^^ ^^ CK/a^^ ZVo 1900 (J p f909 l9fO ^ ^ ^ ^ ^ = z /906 SP '^'^ /9/0 /9oe = — ■^ ^^ 1^^ ^™' ■ t9/0 /009 I9IO — — m^ . ^^™ ^^ ^^ w^mm S3 ■^M mmmm /9oe ^^" ■^^ ■^M """*" """^ ' /9/0 H^ ^^ ..H / 2 J 4 '.56/ • .« 1 S AO /f C£-/yrt5 Fig. 8 41 n/LESPER LOCOnOT/l^E-/\LL CLASSES /9oe \9IO ^ 1908 rfrc£r/r ^^^ 19 lO =" 1 /903 BorO. f9o» /9IO — . ■ i9oa I9IO — M t90Q LV. /909 (9IO ^— " mt^^ ^HiH ■IHMM I90B D.LSrIY 'f^» 19 lO - 1 " f9oe 191 ■■" ^^" ^■ma /900 I3f0 ^ 1 /9oe /9/0 ■■ '^"'"* f9oa ■■■ ^— 1— E^B /9oe C.B.SQ. '*<'» /»/o ~ ^ t9oe /9oe ■— ■ ■■^^ L ^^^^^^H ^^""^^" ^^^^^^^ ^^^^^™ ^^^^ ^^^^^^^^* ^^^* i^n/k ^^^^^^^^^ 1 S./? /309 19 lO ^^^^^" ^^^^ ^^^Zi IS^^^ fdos /iTJc^s.r. '909 I9'0 /90» ^■HHH ■■i™^ ■ ^^^^^^ ^^^^ CJ/.df-o/r: '^°^ l9to 19 OQ QT.nOR. '^o^ I9IO — — B ^M^ ■■^^ ^HIH J'OOO /COCO /SCOO n/ces. Fig. 9. to coo zseoo soooe 3aeoo 42 The Interstate Commerce Commission does not demand locomotive maintenance costs divided into freight, passenger, etc., which undoubtedly should be done if comparisons are to be made on an equable basis. The mileage of freight and passenger locomotives, however, is given and charts are presented in Fig. 10 and 11. Of the eastern roads the P. C. C. & St. L. makes more than 25,000 miles per freight engine, while the Pennsylvania Railroad but 17,000 miles. The St. Paul makes more than 26,000 miles and the Great Northern less than 15,000 miles per freight locomotive. Miles per Freight Locomotive. 1908 1909 1910 Penna. Railroad 17,280 Miles 15,060 Miles 16,870 Miles N. Y. Central 21,000 19,470 21,450 B. & 21,550 20,650 22,910 L.S.&M.S 21,000 21,075 24,480 I^high Valley 21,200 19,530 21,380 D L. & W 24,550 20,710 20,500 P.C. C.&St. 1 28,350 24,010 27,880 Southern Ry 17,800 16,990 18,100 L & N 33,450 32,350 37,040 C. & A 25,070 25,560 25,060 C. B. &Q 18,450 19,080 24,110 C. &N. W 20,650 21,880 25,330 C. R. I. &P 19,600 20,470 21,240 Union Pacific 21,900 17,903 20,590 Southern Pacific 18,350 14,890 16,370 A T & S F 21,600 18,830 21,400 C.M.&St.P 26,300 27,160 26,770 Great Northern 1 1,110 12,650 14,350 Miles per Passenger Locomotive. Penna. Railroad 36,550 Miles 37,410 Miles 40,260 Miles N.Y. Central 38,400 36,890 39,950 B&O 46,200 48,030 46,450 L.S.&M.S 42,940 42,580 43,280 Lehigh Valley 37,300 32,640 35,420 D. L. & W. 33,920 33,530 34,440 P.C. C.&St. 1 49,400 46,810 52,220 Southern Ry 39,700 37,050 41,430 L. & N 56,200 53,311 53,450 C. &A 43,370 47,090 49,990 C. B. &Q 42,000 38,650 38,370 C. & N. W 55,500 52,240 51,920 C. R. I. & P 39,200 35,520 42,280 Union Pacific 51,800 52,770 56,110 Southern Pacific 46,350 48,600 57,230 A.T.&S.F 27,210 26,790 28,970 C.M.&St.P 56,250 58,350 62,750 Great Northern 50,800 39,310 45,670 A chart illustrating miles run by passenger locomotive (Fig. 11) shows the extremes to be the St. Paul with 60,000 miles as against the Atchison with less than 30,000 miles per passenger locomotive. There are undoubtedly local conditions that cause this high mileage on the St. Paul and the low mileage on the Atchison, but this goes to show that all the conditions should be known and understood before conclu- sions are drawn. 43 iHH n/LE^ PER rRc/6/frLoconor/v£. FfnriA.fiR nrc£/fr. s.&o. LS.SrnS LV DLS-iV PCCS^'^L eou./?r IJ/Y. c^/^. cBaa C<^/7W CR.ItSrP UP ^./e /iidj/^ C/7(^J^P Gr/YOR /soe >aos /300 /909 I9IO J9O0 /9CS /9/0 /90B I9IO /soa /909 /9/0 /9oe /909 /9fO /9oe /if/O /908 /909 /9IO /9oa /909 /9tO /906 /909 /9/0 /906 /909 /9/0 /903 /9C9 /9/C /9oa /909 /9/0 /9oe /909 /9/0 /9oa /909 /9/0 /90a /909 /9/0 /9om 19/ O /90B /909 /9/0 ZOO CO Fia. 10. JOOOO ^cooo SOOOO n/Lt5 PER FflsstmcR Loconowc. PEnm.fiR. /900 /909 /9fO frrct/fT. /9O0 /909 /9fO d.SrO. /909 /909 /9/0 LS.&m. /9oe /SC9 /9/C IV. /900 /90S /9/0 OL^S-IV. /soo /909 /9/0 ecc^jri. /3oe /909 I9/0 sou.Rr f9o8 /909 /9IO LJf/f. /9oa I9C9 /9IO Cdh^. /9oe I90S /9/0 CdS'Q /908 /909 /9/0 c

Rr yW/f^J. >$ 200. 400 600 SOO /OOO Fig. 2. «5 DIVISION OF CONDUCTING TRANSPORTATION txPENSzs ON large: roads SUPCR Vt^lON 3 0% ENGINE, ^UPRUES ^£:XPeA4S£S ^o% CLAIM ^% DAMAGES €s M/3CL EXPENSES If o% ST/iT/ON/yiEN €s D/SPiATCAiERS 17.0% LOCOMOTIVE ruEU ZSO% ENQ^NEMEN 15 0% YARO ^TRA/NMCN /^,0% - TOTAL 3A.0 Fig. 3. 66 Careful analysis of these expenses, discloses many items that are not dependent upon the discretion of the management and consequently any deductions of the performance on the train mile basis for the same railroad during different periods, or among various railroads for the same period, may l)e unfair, as each item of this expense must be given separate study. The wages of yardmen, trainmen and enginemen constitute approximately 34 percent of the total, while the wages of station employes and train dispatchers are approximately 17 percent so that these expenses which are essentially labor items, make up 50 percent of the total cost of conducting transportation. As the cost of conducting transportation is more than one-half the operating expenses, the wages paid the above classes of labor approximate 25 percent of the total operating expenses. It is therefore logical to say that one-half the cost of conducting transportation, or one-fourth the total operating expense, is independent of the skill of the individual or the administrative ability of the supervising officer. t mm Locomotive fuel is the largest single item of expense in railroad operation or maintenance. In 1910 it was equivalent to 61.7 percent of the cost of maintenance of way and 51.5 percent of the cost of main- tenance of equipment. In 1910 it comprised approximately 25 percent of the total cost of conducting transportation as against 19.3 percent in 1901. The ratio of fuel expenditure to cost of conducting trans- portation for the past ten years is as follows: 1901 19.3 Percent. 1902 1^ 7 1903 20.9 - 1904 21.0 - 1905 20.3 " 1906 20.2 '^ 1907 20.7 '' 1908 23.1 1909 23.2 1910 25.0 " (Estimated) The diagram in Fig. 4 shows the cost of fuel per engine mile averaged for the five year period ending 1910 for representative eastern and western roads. This data was compiled by the Interstate (^ommerce Commission for use at the recent rate hearing. The information illustrated is as follows: Cost of Fuel per Engine Mile. Average 5 Yrs. Average 5 Yrs. Percent Eastern Roads Ending 1905 Ending 1910 Increa^ Penna. Railroad 9.5Cents 10.5Cents 10.5% Lehigh Valley 11-5 13.7 19.1 Erie 9.7 12.0 23.7 Wabash 7.4 9.9 33.8 N.Y. Central 7.9 10.7 35.4 D.L.&W 6.7 9.4 40.3 Western Roads AT&SF lO.lCents U.OCents 14.8% CM.&St.P.. 10.0 . 12.5 25.0 C.&A 7.0 9.3 32.8 C B &Q 9 5 13.1 37.9 C.&N.W 9.1 12.6 38.4 C. R. LifeP 10 4 14.4 38.5 Comparing the cost of fuel per engine mile on the roads mentioned for the five year period ending 1910 with the five year period ending 1905, a general increase is observed which, however, varies consider- ably on different roads, as shown in Fig. 5. Fuel costs per engine mile are of little value when used as a basis of comparison between different roads but they show the relative costs on each road from year to year. 67 I /or 6 >^ar Fer/bt/ £/r8 JO 20 SO I I ^£^/Sr// /fO/iD5. fO 20 30 40 40 SO 50 \ For the purpose of showing fuel costs on locomotives on a more equable basis than the engine mile, the work unit (average tractive force nuiltiplied by total engine miles) is introduced in Fig. 6 and following table, showing the cost on this basis for a number of representative eastern and western roads for the five year period ending 1910. Cost of Fuel Eastern Roads Per Work Unit Erie Penna. Railroad . N. Y. Central . . . D. L. & W Wabash Lehigh Valley . . . . Western Roads C. & A A. T. &S. F C. B. &Q C. R. I. &P C. &N. W C. M. &St. P.... $2.1G 3.23 3.75 3.76 4.42 5.10 $3.37 3.87 5.52 5.74 6.01 6.32 The cost of locomotive fuel per work unit on the roads mentioned for the five year period ending 1910, when compared with the cost in the previous four year period does not show a general increase as on the locomotive mile basis. Fig. 7 and accompanying table show this clearly. Eastern Roads Penna. Railroad Lehigh Valley Vi'abash N. Y. Central Erie D. L. & W Western Roads A. T. &S. F C. R. I. & P. (Average 3 Years ending 1905). C. M. &St. P C. & A C.B.&Q (\& N. W Increase 1.6% 8.4 10.0 25.6 31.5 Decrease 10.0% 10.4% 0.7 3.1% 4,7 8.2 10.3 The Pennsylvania Railroad shows a marked decrease of 10 percent in the cost of locomotive fuel per work unit for the five year period ending 1910 as compared with the previous four year period, while the D. L. & W. shows an increase of 31.5 percent. Of the western roads the Atchison decreased 10 percent and the C. & N. W. increased 10.3 percent during the same comparative periods. The cost of fuel for locomotives is largely dependent upon the geographical location of the railroad. Railroads having mileage within coal mining districts pay considerably less for the fuel than those located at a distance and consequently the comparisons should not be on a cost basis. It is interesting to note the variations in prices paid on the various roads as rejwrted to the Interstate Commerce Commission for 1910. Eastern Roads Cost Per Ton N.Y.N. H. &H N. Y. Central Lehigh Valley .... D. L. & W Erie Penna. Railroad. . Southern Railway L. & N '. $2.93 1.70 1.60 1.43 1.37 1.36 1.16 1.12 70 COJT or FUEL PER WORK UNIT A veragAfAQASH LV. STEI^'N CaA A.TCr^jr C BOQ C.RI.BP f QOa D3 WZSTEf^A/ RO/ D^ Fig. 6. Western Roads Northern Pacific. Great Northern . . C. M. &St. P.... C. &N. W C. R. I. & P LTnion Pacific . . . . Cost Per Ton $2.76 2.56 2.24 1.99 1.98 1.74 An example of the extremes in locomotive fuel costs per locomotive mile is furnished by the Northern Pacific and the B. & O. for the year 1910, as follows: Loco. Miles Cost of Fuel Baltimore & Ohio 64,316,068 $5,406,759 Northern Pacific 35,810,364 7,690,831 71 11 pp COST OFF(/a ffF ^0/^KUm. Percent /n crease or Decrease far J )^or Fer/ocf pern/?/?. CMJira, 10 to I I I //YC/?f/IS£X ZO 30 iyEST£P/r po/m. /o ZO ^Ayerofe ofjy^c/:j fhif/nf t90S, Fig. 72 In other words, the Northern Paeific with 44.3 percent less locomotive miles spends annually 42.3 percent more for locomotive fuel than the B. & 0. The cost of locomotive fuel varies so widely in the various parts of the country that it cannot be used to any satisfactory degree in making comparisons. A much more satisfactory basis is the amount of fuel consumed. The quality may vary, but not to the extent that the cost varies. Therefore a comparison of tons of fuel per work unit should be of great value. An average has been taken for the years UX)8, MMH* and 1910 and plotted in Fig. 8 as per following table: ^ Tons of Fuel per Work Unit — Average of Three Years ending 1910. Locomotive Fuel Eastern Roads Per Work Unit N. Y. Central 2. 19 tons Penna. Railroad 2 . 33 P. C. C. &St. L 2.53 B.&O 2.62 Phila. & Reading 2.94 D. L. & W 2.98 Erie 3.05 Lehigh Valley 3.09 Western Roads A. T. &S. F 2.4()tons Northern Pacific 2 . 79 C.R. L&P 2.82 C. M. &St. P 3.09 Union Pacific 3. 14 C.B.&Q 3.21 Illinois Central '..... 3.26 C.& N. W 3.31 The extremes on the eastern roads are the New York Central, which burned 2.19 tons i^er work unit, and the Lehigh Valley with 3.09 tons. There is not as wide a variation on the western roads with the Atchison burning 2.46 tons and the Northwestern 3.31 tons per work unit. There has been more or less fluctuation during the past three years in fuel consumption which is illustrated in Fig. 9, using the work unit as a basis. The arrangement is made in pairs for comparative purposes. . 1908 1909 1910 Penna. Railroad 2.361 tons 2.333 tons 2.280 tons P. C. C.&St. L 2.444 2.556 2.587 Erie 3.115 3.097 2.923 Lehigh Valley 3.189 3.092 2.979 Phila. & Reading 2.943 2.899 2.976 D. L. &W 2.983 2.916 3.039 C.&N. W 3.273 3.370 3.379 C. M. &St. P 3.007 3.094 3.178 Union Pacific 3.101 3.151 3.168 Northern Pacific 2.971 2.732 2.656 Thus the Pennsylvania Railroad shows a substantial decrease from 1908 to 1910 while the Pan Handle shows an increase. The Erie and Lehigh Valley show substantial decreases. The Reailing. an«l Lackawanna fluctuate during the three year period. The Northwestern and St. Paul show increa.«^\-^. while the Union Pacific shows an increase, the Northern Pacific shows a decided decrease. The comparisons shown are upon the basis of cost and also the basis of weight. Eitlier one is un- satisfactory as no account is taken of the actual heat value of the fuel. No data is available giving the heat units in the various kinds of fuel, and it is to be hoped that the Interstate Commerce Commission will endeavor to obtain this information. 73 i, '^ Tons orri/a per work uh/t. /Jyeroge of 3 Yeans fnc/inf /9/0. Tons as //rc£/Yr c./i.* /ucr/fr. Tvrts as /.o xs zo I 1 I W£SrC^/f /iiVilXS. I M I.S Fia. 8. I 74 es so ^^ Sj9 /90e, /909J9/0, TOm 2.2 /9t0 /90d /s/o fR/£. L.^ f90S PHILAjS^R, t909 /9/0 /sad DLiSr.W m. /9/0 /90a c&niv: '909 /9f0 1906 CyHdhF/? I909\ /9/0 /90d u/rmm:. /909\ /9/0 t9C6\ jraR,fvic. /909\ /9/0 7V/fSt? 32 3.4^ Sf 76 Having thus treated about three-fourths of the transportation expenses, it is found that the remaining one-fourth is divided as follows: Claims, Damages and Miscellaneous Expenses 11% Engine House Expenses and Engine Supplies 6% Train Supplies and Expenses 4% Supervision 3% The first item, claims, etc., while aggregating 1 1 percent of the total, includes eighteen miscellaneous items so diversified as to afford no adequate unit of comparison while the last item, that of supervision, is largely a fixed charge having no direct relation to the business handled. Engine house expenses covering the attendance at terminals and the cost of lubricants and supplies furnished locomotives, absorb 6 percent of the total cost of conducting transportation, while the expenses incidental to the handling and supplying of trains at terminals included in the item "train supplies and expenses" consume 4 percent of the total. Engine house expenses and engine supplies are dependent entirely upon the size and service rendered the locomotives, and consequently the locomotive work unit is the equable basis for these two items. A statement of the engine house expenses per locomotive work unit for representative roads, as shown in Fig. 10, for the fiscal year 1910, is as follows: Engine House Expense Railroad IVr Work Unit l*enna. Railroad $0. 73 N. Y. Central .83 A. T. &S. F .87 Phila. & Reading .87 Northern Pacific .87 Southern Pacific .92 Union Pacific .94 C.B.&Q .96 Erie 1.04 Illinois Central 1 . 07 C. &N. W 1.12 Missouri Pacific 1.18 C. M. &St. P 1.29 The coat of engine supplies per locomotive work unit for various large roads is illustrated in Fig. 11, as follows: Engine Supplies Railroad Per Work Unit A. T. & S. F 6.57 Cents L. S. & M. S 7.41 Illinois Central 8.62 Great Northern 8.65 C. & N. W • 8.93 B. &() 9.07 Erie 9.61 Penna. Railroad 9.93 P. C. C. &St. L 10.18 C. B. before an opinion could be expressed upon the efficiency of their management — for instance: the weight of rail and design of fastenings, the style and depth of ballast, the quality and treatment of ties and timber and the design of bridges, together with the methods of administration and of execution; all these enter into the cost of maintenance of way and structures. The condition in which the roadway is kept makes itself evident not alone in the expense of main- tenance of way and structures, but also in the cost of maintenance of locomotives and other rolling stock. As the cost of locomotive maintenance is but two-thirds of the expenditure for locomotive fuel, compari- sons made for the purpose of determining the relative values of compound and single expansion locomotives as power factors must be carried beyond the cost of repairs. The sizes of locomotives; the types of con- struction and the capacities of rolling stock; the policy of the management in respect of condemnations and replacements; each of these subjects is a factor of the greatest weight in the comparison of costs of maintaining equipment. The single item of total tonnage per train is a prominent, if not the predominant, factor in the cost of conducting transportation. But, with heavy trains and low transportation cost, goes high cost of main- taining the track in line and surface under the severe pounding of the heavy locomotives that haul the long trains; while gravity yards, that facilitate the dispatching of traffic, materially increases the cost of maintaining rolling stock. Indeed, the greater number of divisions and subdivisions of the operating expenses are so inter- dependent one upon another that any conclusion based upon an individual item is apt to be not merely useless, but actually misleading. Not the examination of one item, but a comprehensive analysis of all influencing and contingent factors, must be made before reliable results can be had. Mechanics is the science that treats of the action of force upon bodies. Definite, positive laws of force have long been established and put into practice. The laws governing the use of steam, as a force are well known. The thermal efficiency of steam at best is very low; the best record for multi-compound condensing engines is only 21 percent, while the average steam locomotive has a thermal efficiency of less than 10 percent, oftentimes but 6 percent. It is an axiom, in marine and stationary practice, that there is great economy in the use of compound engines. In marine engineering there is no question of compounding or not compounding steam; the sole inquiry there, is: "how many times can we compound?" But rail- road mechanical engineers are still undecided. To be sure, some roads use compound locomotives, but there has been no uniform or concentrated effort made to decide the question. In the operation of American railways, the labor cost is by far the larger factor and consistent efforts should be directed toward any means whereby the efficiency of the individual can be increased. This matter has apparently been lost sight of by the majority of operating officials. The members of the Maintenance of Way Association, of the Master Mechanics', and of the Master Car Builders' Association, are in direct control of 60 percent of the total operating expenses of the railroads they represent, yet the proceedings of their meetings contain no mention of the labor problem. Their entire attention is directed toward the subject of materials. If they in this have followed the example of their European contemporaries, they have failed to appreciate that the cost of material is much higher than of labor on European railroads— directly the opposite of the conditions prevailing here. An increase of 10 percent in the rates of pay of enginemen, yard and trainmen will increase the cost of conducting trans- portation approximately 3.5 percent— an expense equivalent to a 25 percent increase in the total main- tenance of locomotives. An enormously effective and valuable work could be done through the medium of these Associations in the standardizing of equipment. There is no reason why, given reasonable time, a movement for the standardization of equipment could be carried to its logical conclusion, but for some inscrutable reason the attention of members has been directed only toward unit designs for small parts. In some instances at least this standardization of parts has been due to the efforts of manufacturers of supplies rather than the members of the Association. The genius of Harriman recognized the tremendous advantage of standardizing the parts of loco- motives and rolling stock in order to secure low maintenance costs, although he seemed entirely to overlook the economies to be attained through increased efficiency of labor. With the Atchison the situation is reversed, for, while their shops are undoubtedly operating at a high efficiency, the numerous kinds of mate- rials and nmltitudinous patterns of parts required to maintain over 150 different classes of locomotives result in direct and avoidable waste of money. It seems as if the subjects now up for discussion before the various Associations of Railway Officials are inconsequential when compared with the more important problems that have been overlooked. 82 Date Due H /|yU,&-— -ti^s^ 1 — ILi^lZ:^ — . .. 1 (|) APR J 31994 ^^S'A/ C/JV^30.1 Columbia (Hnitjer^dtp intlieCttpofMmigDrk ^=^ ^ LIBRARY School of Business ^00 'H Given by CV^irU,<;. Hor^n i Railroad Operating Costs Arranged to include the operations of 1911 ^ A Continuation of Studies in Operating Costs of the Leading American Railroads BY SUFFERN & SON \ • • • • • • • '«- **' «•• •• • « • « * . - ■ ■ ■ • » » • • 0 4500 14 « ^11 II RAILROAD OPERATING COSTS Density of Traffic (Freight) 100,000 Revenue Ton Miles Per Mile of Road 1911 N. Y. N. H. &H 10.88 B. & M 10.54 N. Y. Central 26.21 Erie 29.42 Penn. R. R 49.25 Del. & Hud 30.01 D. L. & W 39.15 Lehigh Valley 34.10 C. R. R. of N. J 34.83 Phil. & Read 45.98 Bait. & Ohio 26.39 Nor. & West 34.46 Ches. & Ohio 30.09 Atl. Coast Line 3.95 Seab. Air Line 4.20 Southern Ry 5.8O Lou. & Nash 11.08 Nash. C. & St. L 6.83 Penn. Co 46.37 L. S. «& M. S 36.26 P. & L E 92.24 P. C. C. & St. L 29.08 Mich. Cent 17.05 Pere Marq 7.97 Vandalia 13.48 Wabash 13.29 C. & A 14.93 111. Cent 14.64 C. B. &Q 7.84 C.&N. W 7.04 C. R. I. & P 6.01 Frisco 5.45 M. K. &T 5.12 Mo. Pac. Sys 6.07 D. & R. G 5.45 C. G. W 8.22 C. M. & St. P 7.08 Grt. Nor 7.39 Nor. Pac 8.06 Union Pac 10.59 Santa Fe Sys 7.03 Sou. Pac. Sys 6.55 Tlie freight earnings per mile of road and the freight density (revenue ton miles per mile of road) go hand in hand: the freight densities on the New York Central and the Baltimore & Ohio are about equal and the earnings are nearly the same; the density of freight traffic on the Pennsylvania Railroad is nearly double that on the New York Central and the Baltimore & Ohio, with freight earnings in the same proportion. When we consider the passenger traffic, a like relation between density of traffic and volume of earnings is to be seen : Passenger Passenger Earnings Density New York Central $8,647 533 Pennsylvania Railroad 8,316 427 Baltimore & Ohio 3,430 179 The grades of the Pennsylvania Railroad and the Baltimore & Ohio are similar in nature and not very far from equal in extent, while the New York Central has decidedly lower grades than either. Summed up, the ruling grades on various lines and branches of the systems are : Ruling Grade New York Central 20 to .86% Pennsylvania Railroad 36 to 1.75% Baltimore & Ohio 70 to 1.80% GENERAL FEATURES 15 Df/ys/rr or mArr/c Cfm^/fT). mooo /^eyewe To/? n/ej F'errr/k of/^oa^. ioojooo n/i£s.' o /in. co/isri/. 5^ A3 Amu /YAS/i.CJt^rt. /'^/Y/YACO. M/YDAl/A. imaASYf, C.gcA, r/z/sco. cY/y/o/r FAc. SA/fTA/TSrs. >socc^Aa srs /CC. coo /TZ/JTS-O m. &o Fio. 4 IG EAILKOAJJ OPElJATINCi COSTS Density of Traffic (Passenger) 1,000 Passenger Miles Per Mile of Eoad 1911 N. Y. N. H. &H 765 B. & M ....384 N. Y. Central 533 Erie 305 Penn. R. R 427 D. & H 168 D. L. & W 607 Leh. Valley 180 C. R. R. of N. J 513 Phil. & Read 404 Bait. & Ohio 179 Nor. & West 98 dies. & Ohio 122 Atl. Coast Line 78 Seab. Air Line 72 Southern Ry 105 Lou. & Nash Ill Nash. C. & St. L 95 Penn. Co 319 L. S. & M. S 407 P. & L. E 462 P. C. C. & St. L 298 Mich. Cent 208 Pere Marq 95 Vandalia 142 Wabash 152 C. & A •. 212 111. Central 153 C. B. & Q 129 C. & N. W 136 C. R. I. «& P 130 Frisco 101 M. K. & T 122 Mo. Pac. Sys 67 I). & R. G 99 C. Ct. W 100 C. M. & St. P 104 Grt. Nor 81 Nor. Pac 127 Union Pac 163 Santa Fe Sys 127 Sou. Pac. Sys 195 The Pennsylvania Railroad with similar grades to the Baltimore & Ohio has nearly double the freight traffic density and almost twice the earnings; the New York Central with its very low grades shows about the same freight earnings as the Baltimore & Ohio with its heavy grades. The splendid showing of the Pennsylvania illustrates the force of a previous comment on industrial geography and the coal and iron trades. Now to compare an eastern with a western road, each crossing a mountain range, and with equivalent grades : Earnings Baltimore & Ohio $15,253 Union Pacific 10,303 The freight density on the Union Pacific is only 40% of that on the Baltimore & Ohio, while the earnings per mile are 67% as great, indicating much higher freight rates per ton mile on the Union Pacific. Passenger densities and earnings, however, show like ratios, indicating more nearly similar rates in this class of traffic on the two roads. Freight Passenger Density Earnings Density 26.39 $3,430 179 10.59 3,189 163 1 -Indiana New Yorh- -Lake Shore and Michigan Southern New York Central- Condensed Profile of the New York Central Lines. •'M^lndiana- ■♦+*- Ohio Pennsylvania 0:45% J£0 o!67% 850 \27.0 i 0.617c ^00 0^6% 0.367 a9.0 I "065% a9.o 6.557. ~W^ 065% 087% '6J:0\ 800 760 700 650 600 0977c ~6Sd~ 470 ■ 0.897o 48.0 ! 0.9/7c 1757. 80.8 1.63 ->K 1^1 0.477c -m' 040% T6% 3^70 0.7% 600 JSO 400 350 300 250 200 150 100 0.69% I9i0 0\367c SO n-. Per Mile West Percent West Ft Per Mile East Percent E:ast Miles From Jersey City. HSC Condensed Profile of the Pennsylvania System, III. |< — Indiana -Pennsylvania ^-^ \^W. Virginia**— Manjland — *- ^\^Pa.-^NJ.-^ Condensed Profile of the Baltimore and Ohio Hailroad, ■La.- Mississippi ^Tennessee -^Klj. Illinois * »o »o ; ^ 1^ cv ^ ^ VO •^ ^ 5 ^ Q. -^ 1 <5 ■X 1 0.547% Ok 00 I as.o 0.5497. 150 100 50 Ft Per Mile South Per Cent South Ft Per Mile North Per Cenl North Mi led From Chicago HS^. Condensed Profile of fhe Illinois Cenfral Railroad. "i f ' P' U i il.. ■ ' WW jJUmUJ II Condensed Profile of fhe Chicago and North Western Railwaij. Colorado- ■Nebraska iowa ■Illinois ^54.3 5/.7 ~aM '^1.7 21.1 ^4S M.80 ! S2.8 42.24 Ft Per Mile We5r t^ O&sro \0.6% 0.67. 067o 0,4% o.aav. Q.66% 10% p.507o Per Cen1 Wesl 42.& 06'7o \00 26.4 \a07o ~6J% 257 21.1 ^4.6 [ 68. 6 A 55.37 56.43 0.457o a4% o.eavo L507. T 0.617o \0.69% Ft Per Mile East ^ ie 0:^^ PerCern Fast Miles From Oiicooo \000 960 900 650 300 760 700 660 600 S60 500 460 400 550 300 260 200 150 100 60 tl-HC Condensed Prof He of the' Chicago. Burlinqtonond Ouincy f^ailwaij. ■P*>vam 1050 1000 950 900 850 800 750 700 650 600 550 500 450 400 500 250 aOO 150 100 Miles From Chicaao use Condensed Profile of the Chicago, Hoch Island and Pacific Hailwaij. I I Colorado rr.Fer Mile East Per Cent East . PI lies From St Lou 15 II use Condensed Profile of the f^issourl Pacific Railway. \— California- -*H- 79.0 5Z.0 l.0%\ 1.5% loss 10% 1/6.0 z:e% -Nevada- -•4*- urah Wyoming- Nebraska \ai.o 0.4 7o ^1.0 \0.47o 7S0 MZ7. IKo MSI. 0Al7o 96.0. l.dZ7c 6Z.0 . 1.5570 ! AZ.O o.5n 6M I.Z57o 40.0 1700 1600 1500 1400 1500 ISOO 11 00 1000 900 300 700 GOO 500 400 7^00 0.767c -Southern Pacific 200 100 Union Pacific Condensed Profile of the Southern Pacific and Union Pacific Poilwads, Ft. Per Mile Wesi Percent Wesi Ft. Per Mile East Per Cent East M/7gs From Omaha HSC. use. Condensed Profile of the Northern Pacific fi'a/lwaq. ■California ISQ.4 Colorado- -Wansas- Mi55ourf — ^—Illinois . Z^OO aiOO 2000 1900 100 Condensed Profile of the Rtchison. TopeKa and 5anta Fe mimui l-tPerMile West I PerCem V^est c "§ n.Per Mile East ^ S Percent Za^^"^ Miles From Chicago •/s.c GENERAL FEATURES 17 mo f^ssen^er /7//es /^a/^/^^Z/Sbs/ m. nf./i.MJth. f'^/Y/YA./i/l. if/i/a// y/u.. s.s-o. ATL.C0A57U 3£AB.A//<1/. 50 f/. /f K loa. s-z/AS^y. /^/y/YA. CO. /f'cc^sri /7/c/i. c^/rr. //i/YDAl/A. WA3AS/f. /ll. Ce/YT ci'/y.yy: C./i/^/'. r/c/sco. m/^csrs. cakv. cAT^sr.e rtoK. FAc {////O^/^AC. sA/rrA /rsK ^o(/./^c srs foo zoo JOO 40O soo eoo TOO 800 /oo xoo 300 '^OO S'OO soo TOO aoo Fig. 5 18 RAILROAD OPERATING COSTS To compare two western roads with similar grades, in like territory, let us take the Northern Pacific and tlie Great Northern: Freight Earnings Density Northern Pacific $6,776 8.06 Great Northern 5,947 7.39 Passenger Earnings Density $2,702 127 1,840 81 Here we find that constant ratio between density of traffic and gross earnings which the parallelism of the roads and their unity of management would lead us to expect. The foregoing examples illustrate the absence of direct relations between the extent of the population living along the line, the density of traffic, the physical characteristics and the gross earnings. In the annual reports of railroad presidents, in the reports of the Interstate Commerce Commission and in the prominent financial manuals, particular stress is laid upon the ratio of operating expenses to gross earnings (see Fig. 6), on the assumption that this ratio is the fundamental basis of comparing efficiency in opera- tion. The fallacy of the assumption readily may be shown— if any presumption is needed to demonstrate the futility of using, for a measure of efficiency, the mathe- Operating Ratios Per Cent. Operating Expenses to Gross Earnings 1911 N. Y. N. H. & H 65.8% B.&]^r 'J'8.4 N. Y. Central 74.0 Erie 64.9 Perm. R. R ^2.2 Del. & Hud 60.6 D. L. & W 60.2 Leh. Vallev 62.1 C. R. R. of N. J 57.3 Phil. & Read 62.2 Bait. & Ohio "1.2 Nor. & West 64.6 Ches. & Ohio 64.8 Atl. Coast Line 64.7 Seab. Air Line 66.5 Southern Ry 67.8 Lou. & Nash 71.3 Nash. C.&St. 1 75.3 Penn. Co 68.3 L. S. &M. S n.7 P. & L. E ^^^-4 P. C. C. & St. L. Mich. Cent Pere Marq Vandalia Wabasli C. & A 111. Central.... C. B. &Q C.& N. W C. R. L&P.... Frisco M. K. &T Mo. Pac. Sys . . . D. & R. G r. M. & St. p.. Grt. Nor Nor. Pac Union Pac Santa Fe Sys . . Sou. Pac. Sys. . • ■•••• 72.07o 75.0 80.4 77.3 74.8 71.6 71.9 67.5 70.8 72.0 66.7 70.8 82.1 68.2 74.8 69.1 61.3 61.2 53.2 65.7 60.1 GENERAL FEATURES 19 OPmATIflG /(AT/OS. fkrcent Operaf/n^r fxpense^ to /^ross nam/ngs. /M ff/tCf/iT-O Jd zo so ^o 50 60 70 SO nr cf/yr D. I. ic^. cRA. ornu FHJIA. ^/i£AD. CH£S,^OWO. ATI COAST U S£A3.A/fsr^. Af/fCe/YT'O w xo so Fig. 6 ^f^ SO 60 70 SO 20 BAILROAD OPERATING COSTS matical ratio between two quantities, one of which may vary independently of any factor of efficiency of operation — as when earnings rise because of higher rates on an unchanged tonnage traffic. For several years past the Union Pacific has maintained its ratio of operating expenses to gross earnings at a lower figure than any other railroad in the United States. If the ratio of operating expenses to gross earnings is the all-important and fundamental basis of comparison, the Union Pacific is the most efficiently operated railroad in the country. This ratio was 59% for the fiscal year 1908 and 51% for the fiscal year 1910, the gross earnings during these periods showing an increase of 19.5% as compared with a 6.6% increase in opeiating expenses, all of which is further evidence of efficient operation on the above basis. It is evident that the increase in gross earnings was the controlling factor in the reduction of the ratio of operating expenses to gross earnings. Incidentally, analysis of the operating expenses during these two years reveals an increase of 31% in traffic expenses, and further investigation develops that the increase in gross earnings is to be attributed in great part to the ability of the traffic department to secure the transportation of commodities of higher class, for the revenue per ton in 1910 shows a marked increasic over 1908 — all of which illus- trates the value of an able traffic department. The Union Pacific had freight earnings of $11,033 per mile in 1910 and a freight density of 10.91 ; the Great Northern, a transcontinental competitor, had freight earnings of $6,693 per mile in 1910 and a freight density of 8.14. From the last figures it is clear that the Union Pacific handles an entirely different class of commodities than the Great Northern and consequently receives a higher average compensation, all of which has a marked effect on the gross earnings but has little effect on the cost of operating. If the remuneration per ton for freight was the same on the Great Northern as on the Union Pacific, the ratio of operating expenses to gross earnings of the former would be reduced from 61% to 52%; which com- pare with the 51% on the Union Pacific. A comparison of the profiles of the two roads suggests interesting deductions regarding their relative efficiency of operation. Various comparisons with diverse results may be made between the several railroads shown in the diagram, and may be used to show clearly that the ratio of operating expenses to gross earnings is not a reliable basis of comparison of economy of operation. The operating expenses of a railroad are dependent largely upon local conditions and must be separately analyzed in order to determine the efficiency of operation. The present railroad reports make five divisions of expenses, as follows: 1. Maintenance of Way and Structures, 2. Maintenance of Equipment, 3. Transportation Expense, 4. Traffic Expense, 5. General Expense. The relative proportion of the four main divisions of expense (traffic expense being of a recent subdivision of transportation expense) to the total cost of opera- /?/ir/<^j or/iccoums to wal oPER/in/iG ap^mt^. //? Percent of Total. 40 1901 J902 /903 /904 /906 JS06 /908 /909 f3/0 (901 /Me f905 /906 mo? /9ae /S09 f9tO t90l /»? 1903 /OO^ /90J /906 /sor /9oe /009 20 30 Conductm^ 'Pan^riation. so Hainh nance cfhkif. nalntenonce ofLOuipment General Expenses iO 20 30 40 SO Fig. 7 22 RAILEOAD OPERATING COSTS tion for the period between 1901 and 1910, shown graphically in Fig. 7, is as fol- lows : Classification of Operating Expenses in Per Cent of Total Maintenance Maintenance Conducting Greneral Year of Way of Equipment Transportation Expenses 1901 22.27% 18.63% 54.98% 4.12% 1902 22.26 19.13 54.67 3.95 1903 21.19 19.13 55.89 3.79 1904 19.52 19.97 . 56.67 3.84 1905 19.78 20.76 55.48 3.96 1906 20.29 21.39 54.43 3.86 1907 19.66 21.06 55.54 3.73 1908 19.73 22.06 54.89 3.32 1909 19.29 22.75 53.98 3.98 1910 20.22 22.66 53.36 3.76 As the operating expenses are dependent upon operating conditions, the subse- quent chapters present anal3^ses of detailed operating costs, illustrating tlie question of efficiency. Maintenance of Way and Structures chapts:e II. The major portion of any railway's initial cost and capitalization is presented in the road and not in the rolling equipment. The road, moreover, represents ap- proximately as large an annual expenditure for maintenance as does the roUing equipment, and though it does not appear in the accounts, an even larger sum for depreciation. Not only this, but the continual improvements in transportation methods and standards entail the sinking of larger capital sums annually in bet- terments than is the case with the equipment. No one department of a railway's operation has such potent effect upon the whole character and results of that operation as the department having jurisdic- tion over maintenance of way and structures, including therein those activities of the railway charged with the physical betterment of the way, and with the provisions of additional facilities. The train load is more a function of the grade than it is the size of the locomotives. Grade, therefore, is the principal cause affecting cost of transportation and is dependent largely upon topography. Topography also determines the cost of way so far as it relates to engineering but not so far as it relates to ground values. Tunnels, bridges and terminals involve capital expendi- tures, running into the millions per mile, and very large traffic results must accrue to warrant any considerable expenditures for this kind of mileage. Curvature, also determined by topography, is an obstruction to fast and economi- cal operation, similar to, but not equally as large as, that of grade. Outside clear- ances, determined by tunnel sections, overhead bridges and by projections into the right-of-way area, have also a profound effect upon the cost of transportation as they determine locomotive and car capacities. Span and strength of bridges and culverts, solidity of fills, ballast and track, also affect transportation capacity, plac- ing limits on axle loads, total locomotive weights, and speeds. It needs no demonstration to show that the locomotive and train crew will handle a larger train upon a level road than upon a hilly or mountainous one, that the train will run faster, that less fuel will be burned, that the wear and tear on the locomotive and cars (brakes, wheels, etc.), will be less. Stated in another way, to attain the same train load or speed upon the road with a heavy grade as upon the level, a larger and more costly locomotive, burning more fuel, must be used, and the draft gear and the cars otherwise strengthened to with- stand the greater shocks. The net result in either case is increased transportation cost due to grade. Every railroad man knows that a curve can be designed for one speed of train only and that it either has too great or too little elevation of the outer rail for speeds less or greater than that for which it was designed. u IIAILUOAI) OPERATING COSTS This restriction on speed, and also train resistance due to curvature, increases tlie size of the motive power and the time necessary to move a train over a given mileage. Closely connected with tlie prohloni of curvature is that of alignment. A short direct, straight and level line will permit of a denser and more economical traffic movement than a longer tortuous route. But with the given probahle increase in traffic requirements there is a definite point where the relocation of a road, to avoid curves and grades will not pay. An example of such a condition is found in the case of the Lucin cut-off across Salt Lake. The width, height, and length of a car depend upon the clearance of the road. If we contrast the load clearances usually found in this country with those obtain- ing in England, Me find that where our widths run from 10 to 12 feet, their maxi- mum is about 0: where our heights are from 15 to 18 feet above the rail, their maximums are between 12 and 13. This leaves a possible load area above the plat- form of the cars of approximately from 60 to 70 square feet in British practice as compared with from 110 to 150 square feet in American practice, giving about 100% more load per foot of length of car on American roads as compared with British. Thus it is that the British ''goods wagon" has a capacity averaging barely one-fourth the capacity of our eight-wheeled freiglit car, a restriction in carrying capacity per unit length of train imposed chiefly by the much smaller clearances obtaining abroad. In this respect western roads in the United States, roads generally in new countries, and roads particularly in flat plains regions, have a great advantage over roads in older, more settled or more mountainous regions. Any attempt to increase the clearance through a settled community or over a mountainous line, tends to become prohibitive in expense and almost insurmount- able in physical obstacles. Bridges are designed for a maximum load and speed factor; loads and speeds above these used in the factor of design produce stresses in the structure exceeding safe working limits and in so far as the bridges cannot be strengthened to support a heavier load or higher speed than that for which they were designed, they act as a hindrance to the movement of traHic by economical train loads and speeds. Not long ago, 40,000 pounds was the unit locomotive axle load used in Cooper's formula ; driving wheel axle loads exceeding 50,000 pounds are usual current practice now, and loads between sixty and seventy thousand pounds are not uncommon. It is obvious that a line built or rebuilt to-day for heavy traffic should be equipped with bridges and culverts capable of supporting an axle load not far short of 100,000 pounds, if future needs, within the economical life of the structures, are to be pro- vided for. What is true of bridges is in large measure equally true of track from the ball of the rail to the road bed. The wearing surface of the rail must possess sufficient hardness to avoid metal flow under the greatest wheel pressures; to wear such a length of time under dense traffic as not to make frequency of renewals an uneco- nomical burden on operation. The rails must be so 'stiff as not to fail under the greatest shocks, both vertical and side, experienced in practice, and must be sup- ported at sufficiently frequent intervals as not to bend, and upon sufficient area of sleepers and ballast as to eliminate the tendency of crushing or settling. MAINTENANCE OF WAY AND STRUCTURES 25 Without at this time going into such details as kind of joints, rails, fastenings, character of ballast, types of bridges, etc., that are desirable under modern operating tendencies, it is evident from the foregoing that the engineering practice of a rail- way is of the greatest importance in its influence upon the whole economy of opera- tion and in the end upon financial return. Although the prime importance of the relation of engineering problems to profit- able railway location and operation is well recognized, the actual cost of maintenance RELATION or TRAFnC TO MAINTENANCE or iVArC05T3 ON REPRESENTATIVE EASTERN AND WESTERN ROADS -1 910 DOLLARS iOOO TOH MILES DOLLARS 2J COST OF AtAINT£MANCC OF k¥AY AA/D STRUCrURtS PER AHLC OF ROAb. TRAFFIC DENSITY (REVENUE TON MILES RER MIL€ Of ROAO) MAINTEHANCE OF VVAY AND STRUCTURES RER IOOO REi/ENUC TON MILES. Fio. 8 26 RAILROAD OPERATING COSTS of way and structures does not vary with the tralhc, or does not bear nearly so con- stant a ratio to traffic density as in the case with maintenance of equipment and transportation expenses. The relation the expenditure for maintenance of way and structures for a given period, bears to the geographical mileage and the volume of business, is illustrated in Fig. 8, showing this information graphically for ten representative railways. This diagram shows the variation in traffic conditions among the various rail- roads, particularly as between eastern and western roads. It also shows that com- parisons of maintenance costs per mile of road, which do not take into account the traffic density are valueless, although this is the unit usually employed by investors and railroad men in judging as to upkeep of the property. Roads with two or more tracks must spend more for maintenance of way per mile of road than those having only single track ; roads handling a heavy volume of business, as reflected by the traffic density and the average train load will need to spend more for maintenance of track and also equipment than those doing lighter business. A study of Fig. 8 reveals that maintenance does not vary directly in proportion to traffic density, although it might seem logical to suppose that such would be the case. It seems probable that the earnings or the financial conditions determine the amount of maintenance expenditure. Comparisons covering a period of years indicate no definite conclusions can be reached with reference to the maintenance of way expenditures for any one year. Such studies to be valuable must cover an extended period. In Fig. 9 is a graphical description of the percentage of maintenance of way and structures to the total operating expenses on the Lackawanna and the Union Pacific for the 10 years ending 1910. The relation the yearly expenditures bear to the 1901 record is also shown, the increases and decreases indicating an exceedingly wide variation. In judging the maintenance of way and expenditures of a given line, the physical characteristics must in all cases come in for careful consideration. It is manifestly unfair to compare the maintenance of way costs (per mile of road) on the Union Pacific with the Chicago & Alton. The Chicago & Alton runs through a country where heavy rains are frequent, causing the ties to decay in a short time. The ballast used is gravel or cinders, either of which is none too good and easily washed out, resulting in a heavy maintenance cost. Some of the line is ballasted with crushed stone which is excellent ballast, but very expensive. On the other hand, the Union Pacific runs through a comparatively dry or semi-arid country where the ties seldom are removed on account of decay and the ballast is the very best and cheapest, it being disintegrated granite from Sherman Hill near Cheyenne, Wyoming. This ballast is of the best quality and is procured at a low cost. The average cost of maintenance of way for the past ten years is $1,260 per mile on the Union Pacific, as against $1,380 for the Chicago & Alton. This does not necessarily mean that the track of the Union Pacific is not kept up as well as the track of the Chicago & Alton. MAINTENANCE OF WAY AND STRUCTURES 27 mfcf/mee mz/rrt/Ymcf: or mrmo sTf^ucruREs TO Tor/ji o/T/f/tTZ/TG EXFf/YJt ro6er//f/^ i^/rn IfiCRf/fSE ORDtCRf/ISe COnPAf^ED IV/TH f90/. so £0 /o Percentage na/ntenance of h^t/ and Structures to Total Operat/hg Expense. I /o 1 1 5' s S! 5 ^ I 2C 30 /n crease or Decrease % Compared mW? /90/, D.LS'W. u/rm F/rc. Fig. 9 28 KAILROAD OPERATING COSTS If a railroad is obliged to maintain expensive terminals, it should spend more than a railroad of tlie same type in other respects, which does not have these charac- teristics. To compare two roads in the same territory; the St. Joseph & Grand Island has verj- inexpensive terminals, while the Kansas City Southern maintains elaborate terminals at Kansas City and particularly at Port Arthur, Texas. The St. Joseph & Grand Island spent in 1908 only $475 per mile for maintenance of way, and averaged $700 per mile for the past ten years, yet this small amount has appar- ently been sufficient to maintain the property at as high a standard as has been necessary and relatively is probably as good as the Kansas City Southern with an average for nine years of a little more than $1,000 per mile. The maintenance of way expenditures per mile on a ten years' average vary all the way from $700 on the St. Joseph & Grand Island to over $10,000 on the Pitts- burg & Lake Erie. This enormous difference is explainable when we realize that all of the mileage operated on the Pittsburg & I^ke Erie has two or more tracks while the St. Joseph & Grand Island operates only a single track. Again the Pitts- burg & I^ke Erie has a freight density of nine million revenue ton miles per mile of road and an average revenue freight train load of 1200 tons as compared to the St. Joseph & Grand Island with a freight density of less than %-million ton miles per mile of road and a revenue freight train load of 220 tons. The usual reports of railroad operations as published, show operating costs per mile of road for one period compared with another period (month, year, or decade), and unless the reader is familiar with the road in question, the deductions drawn from a perusal of the figures are very unsatisfactory. The Atchison, for example, expended $1,835 per mile of road for maintenance of way and structures in 1910, as compared with $793 in 1901. Without a knowl- edge of the influencing conditions, the volume of business, etc., for these two pe- riods, the above figures would indicate the expenditures in the year 1910, were ex- horbitant as compared with 1901, and a careful analysis of the entire situation is necessary in order to determine a relative comparison. A study of the business handled develops the freight density more than doubled during the above mentioned period, thus indicating a very heavy increase in the volume of business. This fact, together with a 35% increase in the weight of locomotives and 25% increase in capacity of freight cars, has resulted in a proportional growth to the wear and tear of track and presents the matter in a different light. It is therefore evident, when judging maintenance of way expenditures that many items must be taken into consideration other than the mileage operated and the gross earnings. Far more important are the character and volume of business, the topography of the country and the weight of equipment, all of which must be given due consideration. The following table is submitted showing the maintenance costs "per mile of road" for 20 representative railroads for the years 1908, 1909, 1910 and 1911 and illustrated in Fig. 10. MAINTENANCE OF WAY AND STRUCTURES 89 Maintenance of Way and Structures Per Mile of Road. 1908 N. Y. N. H. & H $2923 N. Y. Central 3408 Penn R. R 4456 Erie 2915 B. & 2728 D. L. & W 4032 Lehigh Valley 2417 N. & W .' 1801 Atl. Coast Line 867 Southern 946 Lou. & Nash 1441 L. S. & M. S 3837 P. & L. E 7380 C. B. «& Q 1595 C. & N. W 1056 Frisco 943 Union Pac 1688 Santa Fe Sys 1534 Sou. Pac. Sys 1993 Grt. Northern 1502 The extremes are the Atlantic Coast Line with an annual expenditure of $797 in 1909, and the Pittsburg & Lake Erie with $9,069 in 1910, a difference of 1,036%. For the purpose of further illustrating the erroneous conclusions possible when the unit "per mile of road" is used, these maintenance costs for the same railroads are also shown with the locomotive tractive mile as the comparative unit. This unit is the only one available which combines the volume of business and the weight of the equipment, since it is determined by taking the average locomotive tractive force in pounds and multiplying by the total locomotive miles. (This prod- uct is divided by 1,000,000, to bring the unit within comprehension.) The maintenance costs per locomotive tractive mile are shown herewith. Fig. 11, for the same roads and the same periods as shown in Fig. 10, and comparisons be- tween the two tables are both interesting and instructive. From these figures the annual cost per tractive mile varies from $4.78 on the B. & 0. in 1911 to $13.78 on the Great Northern in 1908, a variation of 188%. While these comparisons serve to illustrate that the generally accepted unit "mile of road" is valueless, the relative comparisons in Fig. 11, cannot be considered as conclusive. 1909 1910 1911 $2729 $3490 $3422 3032 3603 3813 4135 4998 4873 1988 2391 2589 2200 2630 2319 3713 3536 4350 2246 2416 2532 1716 1923 2160 797 837 873 832 941 1061 1184 1780 1986 3328 3753 4768 7464 9069 8783 1450 1740 1367 1099 1412 1292 994 1151 1059 1490 1681 1668 1336 1835 1591 1591 1692 1653 1310 1623 1321 \ 30 KAILKOAD OPERATING COSTS fer A7//e of/?oa^. O01LAR5. /OOO ZOOO -3000 ^OOO SOOO 6000 7000 e^CO 9000 /C0OO /y.r/YM^/f- /909 t»09 /irc^nr. /9II pf/im.R/i. fsoe tsos /9/0 /9H zf/f/Z" /*«• /••» /•/• /#// 3^0. /9oe now /»/e 1911 niJc^. I90* /•09 /9fe /9'/ l^/^/m i^Al. i9oa /9'0 /9II /y.s^iv. /9oe I909 me ATLCaA5ri/ f9ca /9C9 /9/0 50(/m£R/i /909 /909 /S>// lOU^//A5^ /9C« /9«9 im/o 1.5. &/y^. /90S /•oa 19 n f'&Lf' /90S /9/0 C.^Jc^. /9C« /909 /9*0 /9fl c.^/yjy. /9C* f9C9 /9yc /9// /"/r/sco /»O0 m/o/r/'Ac /»09 /909 r9*e SAfiTArej^KS /90e /»e9 /9f» /■»/• ^6//^ACSrS.7 /9oa /9P» /9ft t2/ir/yo/t. /»09 OOH.A/fS," O /OO0 ZOOO SOOO -OOOO SOOO 6000 7000 SOOO 9000 /oooo Fig. 10 MAINTENANCE OF WAY AND STRUCTURES 31 Maintenance of Way and Structures Per Locomotive Tractive Mile. 1908 1909 1910 1911 N. Y. N. H. & H $ 8.48 $9.07 $10.57 $10.02 N. Y. Central 6.15 5.34 5.94 6.09 Penn. R. R 6.19 6.22 6.52 6.33 Erie 7.02 4.89 5.48 5.99 B. & 6.22 5.48 5.77 4.78 D. L. &W 6.70 6.72 6.21 7.33 Lehigh Valley 6.00 6.06 5.70 5.79 X. & W 5.19 5.29 4.91 5.36 Atl. Coast Line 9.72 9.48 9.28 9.10 Southern 5.79 5.35 5.50 5.84 Lou. & Nash 7.33 6.39 8.62 9.19 L. S. &M. S 7.11 6.39 5.93 7.24 p. &L. E 8.69 8.70 7.46 8.88 C. B. & Q 12.70 11.73 12.55 9.70 C. & N. W 7.97 8.03 8.58 7.72 Frisco 7.39 7.69 7.97 7.01 Union Pac 9.46 8.25 8.43 8.34 Santa Fe Sys 9.58 8.80 10.44 8.87 Sou. Pac. Sys 1 2.27 10.81 10.33 10.03 Grt. Nothern 13.78 13.67 12.31 10.29 The topography of the country and the character of the traffic determining the speed of trains, and the extent of terminal facilities, must be given full considera- tion. The influence of capital expenditures for additions and betterments are also of consequence, since these expenditures involve the policy of the management as regards future needs. The principal investment in a railroad is in its roadway, and in building, re- building, or extending a road such a policy should be adopted as will balance grow- ing traffic capacity and lowered operating cost against larger fixed and depreciation charges. This rule applies also to terminal facilities and through traffic links in- volving expensive construction. A study of the maintenance of way and structures expenditures for comparative purposes must be sufficiently comprehensive to include all influencing factors. It must necessarily cover an extensive period and separately consider the component items of this division of operating expenses. Such analytical study is, however, left for future consideration. 32 RAILROAD OPERATING COSTS mmEmnct or/z/trA/yo 5TRucTmf:5. Fer / ocomot/Ve Tract/Vc /%^ DOLLAMS.-O O 9 /O // /Z /S /# f9O0 //m/i.^/f. %ro /3/I i90e /rrc£iiT. 7,7. /90g Pf'mA.R/l. vx /»// fR/^. 3J(0. fsoa /9V9 D.iJ^fy. /9/C It^/^H Ml /mos /909 /»/C /yjriy. /SOS /»e9 /ato ATL COAdTlA /90S /•09 /m/o 30(/T^tRli, /9oa /»09 r»io ZO^.J^/YA5/i H /»-'/ i.jjc/rs y9c4 /»f / /P^Z.Z: /»0» /»a9 /9/0 C3.^a. ,/9ce ./909 /9I I c.A/i.w. /90a /9/0 /»" r/?/jc^. /9oe /9«» /»/e /»'f i//Y/0/YFAC /9ca /»C9 /9/ I /»oa of^info/t. noo r909 /9tO DOlLAMaihs and Fuel in Level and Mountainous Country. Main Line Freight — 12 Months Period. Level Country Total 1,000 Gross Ton Miles 5,300,827 Eoad Mileage ttO Density of Traffic, per Road Mile 1000 Gross Ton Miles (5,884 Total Cost of Repairs $ 590,689 Total Cost of Fuel 797,040 Total $1,396,729 Cost of Repairs, per Road Mile $ 799 Cost of Fuel, per Road Mile 1,035 Total $ 1,814 Cost of Repairs and Fuel, 1000 G. T. M ^ Increased Cost of Repairs and Fuel on 1000 G. T. M. basis of mountainous over level country Per Cent. Increase per 1000 G. T. M Cost per Road Mile at Traffic Density of Level country Increased Cost per Road Mile If business were increased 70.1% on the moun- tainous country, so that the density of traffic should be as great as on the level country, the increased cost for locomotive repairs and fuel would be 1,190 x 1,000 or 264 ro.i7o Mountainous Country 4,049,015 1,000 4,049 $ 647,886 1,051,296 $1,699,183 $ 648 1,051 $ 1,699 $ 420 $ 631,646 $ 2,889 $ 1,190 $1,190,000 The expenditure for Maintenance of Equipment on the Burlington in 1910 amounted to $1,669 per mile of road as compared with $921 in 1902; however, in the meantime, the tonnage handled per mile of track nearly doul)led. During the same period, the weight of locomotives increased 40 per cent, and the average capac- ity of freight cars increased from 24.7 tons to 33.6 tons or 36 per cent. The great extremes that exist in Maintenance of Equipment expenditures (and undoubtedly each is justified in the ex})enditure) are shown on the Minneapolis & St. Louis with a ten-year average of $500 per mile of road as compared with the Philadelphia & Reading, which expended $5,932 per mile of road during the same period. To look at these figures alone one would say that the Philadelphia & Read- MAINTEXANCE OF EQUIPMENT 41 ing spent twelve times as much money annually as was necessary for Maintenance of Equipment, which inference is of course absurd. Again the nature and character of traffic has much to do with Maintenance of Equipment costs. The Burlington, for example, has its so-called "stock rush," where a great volume of stock must be transported at high speed. Often consign- ments of 20 or 25 cars are received that cannot wait for other cars to make a full train, which results in high costs. On the other hand about two-thirds of the ton- nage of the Lackawanna is made up from the products of mines, which can be liauled in large capacity cars at low speeds, resulting in remarkably low costs. The Southern Pacific presents another example of the same nature. A great deal of their business consists of fruit from Southern California, which must be iiandled when the consignments are iced and ready to go and must run at high speed. This causes a heavy traffic east-bound with a correspondingly light movement west. The Great Northern, however, has a steady slow freight business, carrying wheat west and lumber east-bound, thereby being able to make a much better show- ing than the Southern Pacific in equipment maintenance costs. It is therefore evident that the employment of the unit "per mile" of road for comparing Maintenance of Equipment performance without special reference to operating conditions, and character and volume of business, is meaningless and of doubtful value. The same thing may be said of the comparisons of total Maintenance of Equip- ment per locomotive mile, inasmuch as increased tonnage per engine mile may decrease the cost of operation per ton mile, but will increase the maintenance cost per locomotive mile so that each of the several divisions must be subjected to a separate analysis. The gross tons hauled one mile is a fair and equable unit to use as a basis in computing maintenance costs. Although the gross ton mile is made use of on some railroads, the published statements and the Interstate Commerce Commission reports do not show this very important figure, nor do railroads generally use it for a basis of computation. The figure used is the revenue ton mile, which may be the all-important figure when considered financially, but it is not the basis which should be used when considering maintenance of equipment costs. Many roads, necessarily, haul company material long distances. Locomotive fuel, for example, on the Southern Pacific amounts to 8,000 net tons per day and is carried in many instances 300 or 400 miles with a corresponding empty car mileage back. The Pennsylvania mines its coal on the line of road and hauls it but a few miles. Iron products of all kinds, rails, boiler steel, car wheels, axles, shop machin- ery and tools, all go to make a heavy tonnage for long distances on western roads which constitute non-revenue freight and consequently do not appear to the credit of the locomotives which do the work of hauling. It is thus manifestly unfair to compare maintenance costs of western roads with eastern roads on a revenue ton mile basis, but it would be reasonably fair if the gross ton miles were used. Operating conditions on the railroads east of Chicago are along fixed and tried lines, while the west is in a more or less new and unsettled condition. Labor in the west is scarce and generally of poor quality. It is therefore necessar}' to pay higher wages in order to attract the better class of labor from the east. 42 RAILROAD OPERATING COSTS As the labor cliarge constitutes more than one-half the maintenance costs of equipment, the higher wages paid on western roads will be reflected directly in the total when comparisons are made with eastern roads. Metal workers, wood workers, and miscellaneous shop labor include most of the employees in the locomotive and car shops and fairly represent the general labor situation. The total figures taken from the Interstate Commerce Commission records, separated into eastern and western roads, are shown in chart form in Fig. 17, with actual figures as follows : Wages per Hours. Eastern Roads Metal Workers $0,265 Wood Workers 226 Miscl. Shop Labor 197 Western Roads $0,327 .253 .215 PerCent. Increase Western Over Eastern Roads 23% U 9 This marked increase of 23 per cent, in wages paid metal workers on western roads is a most important item and should be given due weight when comparisons are made between eastern and western roads. It is obvious that any comparison of maintenance of equipment expenses be- tween any two roads must necessarily include a comprehensive analysis of all influ- encing factors. It is also apparent that no single comparative unit can be estab- lished that will reflect true conditions of maintenance of equipment expense as a /r^fmot RATE PER HOUR P/lID MR/OUS fflPLOrEE^S OPf RfllLR0AD3, East and W'est ofChfca^. m. mi moo mrnms. ^^^^f /^JZ n/jcfLL/ffieous mif /s 20 2^ JO J^ Fig. i; MAINTENANCE OF EQUIPMENT 43 /iA//iTtmrfct or ^6i(//PMEfir. Si/My/'j/^/? of /Expense. /9// /i£PAIfi5 Afl/OmmLS. Locomwc /f£PAIR5 AND /(fZ/ff/AlS. DPFPfc/ATm or rau/mrfir. rAssr/rcrR car RmmA/io /tf/yrms smpmc/zKAmmi 5UP£Ky/5/0/r. /^/SCniA/y£0l/3 A/YD p 0/7/r/^ fxrr/Ysrs. "^ ^1 37. Fig. 18 44 RAILROAD OPERATING COSTS whole, since any- change in the size and design of locomotive and cars may exert such influence on the maintenance costs as to destroy the comparative value on the same road for different periods. The total expenditures for maintenance of equipment on the railroads in the United States during the fiscal year 1911 were subdivided as follows (Fig. 18) : Freight Cars (Repairs and Renewals) 37% Locomotives (Repairs and Renewals) 35% Depreciation of Equipment 1^% Passenger Cars (Repairs and Renewals) 8% Shop Machinery and Tools 3% Supervision 3% Miscellaneous and other Expenses 2% While the charges for depreciation of e7./?/p. BXrO. /r/T/T/r. CO. /^CCSrSU. /7/m cmr ccc^sn /mo/u/A. M.cj^/r ijScfi m5H.CS^5T.L rro&grott/o. CP/I, cBsta FR/^CO. cnS'STF. U/y/O/Y FAC. coio.psoa a3rRG 5/i/fr/f /r 5ys. sou.FAC.^rs. //OR. FRC. DOU/i/iS.'O eo 90 100 no /20 t30 H :fe ft J 00 90 /OO J/0 /2a /30 Fig. 19 48 RAILROAD OPERATING COSTS They may, however, due to different policies in the purchasing of equipment, estimat- ing of equipment requirements, unexpected change in character of volume of traffic, have considerahle variation in the numher of freight cars. It follows, therefore, that the railroad with the greater numher of cars will have the lesser cost per car, which, if this standard be correct, is indicative of higher efficiency in management. For example; the freight traffic density (100,000 revenue ton miles per mile of track) in 1911 on the L. E. & W. was 7.32 and on the New Haven 7.45, which indicates the volume of freight business on these two roads to l>e similar. Further investigation shows that the New Haven owned 38,783 cars with 3,079 miles of total track (exclusive of all yards and sidings), and the L. E. & W. owned 3,840 cars with 895 miles of total track. From these figures it is apparent that the L. E. & W. with 29 per cent, of the mileage of the New Haven and a similar traffic den- sity owns less than 10 per cent, of the number of freight cars possessed by the New Haven. Again, one railroad may have a few cars and a high average mileage, thus hand- . ling the same volume of business as another railroad having a larger number of cars and a small average mileage. Average Capacity of Freight Cars 1911 Tons N. Y. N. H. & H 32.30 B. & M 29.70 N. Y. Central 36.60 Penn. R. R 44.90 D. L. & W 32.90 Leh. A^alley 36.40 D. &H.... 36.78 C. R. R. of N.J 37.22 P. & R 35.20 Erie 37.50 B. & 39.20 L. E. & W 32.04 P. & L. E 41.18 Penn. Co 43.40 P. C. C. & St. L 45.30 L. S. & M. S 41.20 Mich. Central 35.35 Pere Marq 33.49 C. C. C. & St. L 35.94 Vandalia 43.44 Tons C. & 43.40 N.&W 44.35 Atl. Coast Line 28.72 Scab. Air Line 33.95 Southern 35.10 III. Central 38.40 L. & N 35.20 Nash. C. & St. L...' 31.02 Mob. & Ohio 34.14 C. & A 40.00 C. B. &Q 36.30 C. R. I & P 35.40 Frisco 37.50 C. M. & St. P 31.80 Union Pac 39.10 Colo. & Sou 33.96 D. & R. G 35.23 Santa Fe Sys 32.10 Sou. Pac. Sys 40.40 Nor. Pac 35.60 Continuing the study between the railroads that have been previously mentioned, we find that the average mileage per freight car in 1911 on the L. E. & W. was 13,547 miles and on the New Haven 5,530 miles. If the freight cars on the New FREIGHT CAR MAINTENANCE m/^mj^ cmc/TK orrRa6/iT cAm. 49 m. nrce/mr. IV /v/r/r/i CO. /7/c//. c^r/r. //f/yoM//i. C.ii^O. 50i/r/i5/fn C3^a C./^./Jf^/'. m/o/y f*/ic. coiosf-soo: soc/jp/ic^r^ 4: 6 /Z /4- /6 /S /O 3Z 34 36 38 ¥^ 4f 4^ 4fi I 1 I I I I ro/i5. -0 2 4 6 O /O /2 }f /€ I /6 /a 20 22 24 26 Fig. 20 J4 J6 JS I 9: « 44 4S 50 KAILROAD OPERATING COSTS Haven had made the same average mileage as those on tlie L, E. & W., tlie number of cars required for the Xew Haven would have been so reduced as to make the main- tenance per freight car for 1911 equal to $99.00 in place of $40.34, which figures would indicate an entirely different condition with reference to efficiency in freight car maintenance than that inferred in the first paragraph. From this it would appear that the remarkably low cost on the New Haven as compared with the high cost on the L. E. & W., in place of reflecting economy in one case and extravagance in the other, is only conclusive evidence that the mainte- nance "per freight car owned" is useless as a comparative unit. The average capacity of freight cars on the various railroads must be taken into consideration in any analysis as larger cars carrying greater weight must neces- sarily require higher expenditure for maintenance on a "per car owned" basis. Miles Per Freight Car Owned 1911 Miles N. Y. N. H&H 5,520 B. & M 8,599 N. Y. Central 11,913 Penn. R. R 7,856 D. L. &W 8,638 Leh. Valley 7,323 D. &H.... 7,710 C. R. R. of N. J 6,173 P. .S- R 7,192 Erie 8,554 B. & 8,869 L. E. «& W 13,547 P. «S;L. E 4,009 Penna. Co 7,016 P. C. C. & St. L 12,650 L. S. &M. S 8,375 Mich. Central 11,402 Pere Marq 8,029 C. C. C. & St. L 11,715 Vandalia 9,119 Miles C. & 7,750 N. & W 9,517 Atl. Coast Line 8,340 Seab. Air Line 8,991 Southern 7,948 111. Central 9,021 L. & N 8,861 Nash. C. & St. L 8,412 Mob. & Ohio 10,820 C. & A 9,817 C. B. &Q 11,765 C. R. I. & P 10,860 Frisco 7,665 C. M. & St. P 11,428 T'nion Pac 19,521 Colo. & Sou 6,125 D. &R. G 5,765 Santa Fe Sys 12,858 Sou. Pac. Sys 11,859 Nor. Pac 7,911 While the average freight car capacity of 32.3 tons on the New Haven compares favorably with 32.04 tons on the L. E. & W., this similarity is not in evidence when all the leading railroads are considered. A chart. Fig. 20, and accompanying data show the average capacity of freight cars on 40 roads for the year 1911. The capacity varies from 28.7 tons on the At- lantic Coast Line to 45.3 tons on the P. C. C. & St. L., a difference of approximately 58 per cent. FREIGHT CAR MAINTENANCE /1/LC5 FCR rmctfT cm ov//m I9H. 51 / z 5 6 7 Q 9 /O II tZ /3 M- 15 t6 17 fO /9 20 nrccHT. cK/^.or/r.Kj. F.S^R. 33^0. p£rr/r/i.co. prc^6U. /7/c/i. c^rrr. FtF£: /7/IFa /JTL C0/l5Tl/m dcm.mu/rc /u. ccrfT. noe.^o/i/a C3S^. CF/JkF rmco. Cn^STF umofi F/jc COiO.S-JOi/. 50U.F/\C.5r3. noRF/\c. 8 9 /O // /OOO ATiZ/rJ. /Z /^ /f- /S /6 /7 /8 /9 ZO Fig. 21 52 RAILROAD OPERATING COSTS The yearly mileage per freight car owned is presented in Fig. 21, and shows a variation from 4,009 miles on the P. & L. E. to 19,521 miles on the Union Pacific— a difference of 388 per cent. These charts serve to illustrate that the maintenance costs "per car owned" are useless for comparative purposes. The variation in the amount of equipment owned will also render comparisons on this basis valueless either between roads or for dif- ferent periods on the same road. In order to permit a comparison of the amount of freight car equipment among these various railroads, the number of freight cars owned per mile of total track (exclusive of yards and sidings), is shown and illustrated in Fig. 22. This number varies from 3.8 cars per mile on the Union Pacific to 47.95 cars on the Pittsburg & Lake Erie. Freight Cars Owned Per Mile of Track 1911 Cars N. Y. N. H. &H 12.60 B. &M 9-21 N. Y. Central 11.9G Penn. R. R 23.33 D. L. & W 20.04 Leh. Yallev 20.84 D.&H 16.80 C. R. R. of X. J 23.70 P. &R , 26.16 Erie 16.37 B. «&: 15.57 L. E. & W 4.29 P. & L. E 47.95 Penn. Co 24.58 P. C. C. &St. L 11.63 L. S. &M. S 18.23 Mich. Central 10.25 Pere Marq '^•22 C. C. C. &St. L 10.26 Yandalia 10.07 Cars C. &0 16.67 N. & W 17.38 Atl. Coast Line 5.49 Seal). Air Line 4.90 Southern 7.03 III. Central 11.16 L. i&X 9.36 Xash. C. & St. L 8.32 Mob. & Ohio 9.53 C. &A 9-85 C. B. &Q 5.26 C. R. I&P 5.24 Frisco 6.51 C. M. & St. P 5.48 Union Pac 3.80 Colo. & Sou 6.88 D. &' R. G 6.78 Santa FeSys 4.96 Sou. Pac. Sys 4.60 Xor. Pac 6.28 The amount of equipment per mile of track is of no value without data reflect- ing the value of business and for this purpose the following comparative figures, i. e., 100,000 revenue ton miles per mile of total track is submitted with illustration Fig.' 23. ' This table shows a fluctuation in freight traffic density between 3.83 on the Atlantic Coast Line and 39.1 on the Pittsburg & Lake Erie. The value of the unit "per mile of total track" (exclusive of yards and sidings), emploved to designate the traffic density of any road as compared with the unit FREIGHT CAR MAIXTEXAXCE 53 numcR or rmoHT cms oi/z/cD Per Pfi/e of Total TracA. m 2 4 6 e /O a ff /e W 20 Z^ if 26 Zd 30 3Z 34 36 33 40 42 4f 46 43 /rrcjyrr JL/TJti/ yvm/f. CO /7/CH. ar/rr CCCd'Sr.L c.i^a n.srw. /jTi COAST unc 50UrM£Rtf iU.C/^/fT /r/t3^.Cif5TL msi^o/fw. cAJP-a r/?/sco cnsf-ST/> m/o/r A/ic . COIO^SO(/ 5/f/yr/i r/^ jrs. soi/F/fcsrs. /YO/f F/fC I h U /6 k 20 22 24 2S 26 3a 32 34 36 36 -fO 4ii 44 ^ 48 Fig. 22 54 RAILROAD OPERATING COSTS "per mile of road" employed in Chapter I, can be better appreciated by a study of the two charts illustrating the volume of business by means of the two units. The one "per mile of road" using the geogi-aphical mileage, takes no account of the additional trackage of a two, three or four track road, while the other "per mile Freight Traffic Density— 100,000 Revenue Ton Miles per Mile of Track 1911 N. Y. N. H. &H 7.45 B. &M 8.23 N. Y. Central 15.90 Penna. R. R 31.13 D. L. & W 25.27 L. V 22.98 D. «&H 20.75 C. R. R. of N. J 23.70 Phila. & Read 28.51 Erie 20.01 B. & 20.18 L. E. & W 7.32 P. ifeL. E 39.10 Penna. Co 11.14 P. C. C. & St. L 19.28 L. S. &M. S 21.15 Mich. Central 12.74 Pere Marq 7.27 C. C. C. & St. L 15.18 Vandalia 12.42 C. «& 23.65 N. «fe W 28.38 Atl. Coast Line 3.83 Seab. Air Line 4.18 Southern 5.43 111. Central 12.47 L. & N 10.62 Nash. C. i&St. 1 6.83 Mob. & Ohio 11.96 C. & A 12.48 C. B. & Q 7.25 C. R. L«&P 5.73 Frisco 5.41 C. M. & St. P 6.48 Union Pac 8.85 Colo. & Sou ' 6.35 D. & R. G 5.14 Santa Fe Sys 6.55 Sou. Pac. Sys 6.40 Nor. Pac 6.89 of track" considers all trackage except that employed for yards and sidings. The value of the latter unit is readily apparent. In an endeavor to take into consideration the volume of business, another unit has been used to a limited extent in comparing the maintenance of freight cars, i. e., the cost per 1000 revenue ton miles, and the following table and chart, Fig. 24, shows the maintenance costs on this basis for the same railroads illustrated in this chapter. The chart shows a variation in maintenance from 39.1 cents per 1,000 revenue ton miles on the Norfolk & Western to 93.G on the Denver & Rio Grande, a differ- ence of 139 per cent. This is not, however, a satisfactory basis of comparison as the revenue to miles do not include the empty car mileage or the transportation of Company material and the omission of this data renders the information quite incomplete. For instance : in 1911 the empty car miles on the Union Pacific was 25 per cent, of the total car mileage, 26 per cent, on the Atchison, 34 per cent, on the Pennsyl- vania R. R. and 35 per cent, on the Reading. Empty cars in service are subject to the wear and tear of traffic and depreciation in approximately the same ratio as cars in revenue service. FREIGHT CAR MAIXTEXAXCE 55 rRmHT mmc omsin. 100,000 Fevcnue Ton-Hi les Per Hik of Track. 1911. rf-KfiKgrtl B.grn rf.rccnT. c/a^orrtJ. CRIC /r/rm. co. /^ccs-sri. is^ns rvc/f. cjT/rr. C.C.C.ir3TL /in: co/i5TL/rr£: /u cr/rr fr/ISKCS^STL /703 if^O///0 C.S^/f. C3.9^Q r/^f3co cn^sr/' o/Y/orY f/ic. CV/CO. tf-JOC/. 5/irrrflr£5r3. ZOU.FAC.Srj. 3p 32 34- 3£ 38 4& /O /2 /^ /6 /O 20 ZZ ;f4 Jt6 ^S 30 JZ 34 S6 JS -Hf Fio. 23 50 HAlLh'OAl) OPEHATINU COSTS Likewise, cars carrying company material are under the same service conditions as thofcie revenue freight, when nuiintenance is considered. Company material is Maixtexaxce of Fukiuht Cars — Pkr 1,000 Revknue Ton Miles 11)11 Cents N. Y. N. H. & H 71.7 B. &M 73.3 N.Y Central 83.8 Penn. R. R 52.0 D. L. &\V 45.7 Leh. A'alley 48.8 D. & H...'. 48.4 C. R. R. of N. J 54.4 P. & R 88.3 49.1 47.3 Erie B. & O L. E. & W 73.7 P. &L. E 50.7 Penna. Co 5(5.3 P. C. C. & St. L 69.8 L. S. & M. S 61.3 Mich. Central 71.4 Pere Marq 55.9 C. C. C. & St. L 67.7 Vandalia 67.6 Cents C. & 46.3 N. & W 39.1 Atl. Coast Line 91.2 Seab. Air Line ^ 70.6 Southern ' 75.1 111. Central 74.7 L. & N 65.9 Nash. C. & St. L 90.4 Mob. & Ohio 56.9 C. & A 56.1 C. B. &Q 67.5 C. R. I. & P 70.3 Frisco 74.8 C. M. & St. P 68.1 Union Pac 46.4 Colo. & Sou 74.7 D. & R. G 93.6 Santa Fe Sys 59.0 Sou. Pac. Sys 80.5 Nor. Pac 50.1 an extensive tratfic item. During the fiscal year 1910, the net ton miles of Company material on the Southern Pacific was equal to 20 per cent, of the revenue ton miles, while on the Atchison it was 32 per cent. Failure to consider the empty car mile- age or the mileage made in non-revenue service in making comparisons of mainte- nance, will result in erroneous conclusions. To permit the influence of these two items on the total miles run to be more thoroughly appreciated, the following data covering the freight car density, i. e., 10,000 freight car miles per mile of total track, is shown and also illustrated in Fig. 25. The variation in this table is from 3.99 on the Denver & Rio Grande to 19.85 on the Pittsburg & Lake Erie. A comparison of Figures 23 and 25 is very interest- ing, particularly the Xew York Central with the Delaware & Hudson, the Pennsyl- vania with the I^ackawanna, the Lehigh Valley with the Central Railroad of New Jersey, and the Santa Fe with the Northern Pacific. The maintenance of freight cars, as has been previously pointed out should be proportional to the distance hauled and for the purpose of continuing the study, FHEHUIT CAR MAINTENANCE 57 Fer /OOO Re/ef7ue7dn/7//e6, /rr/r/fS'/f. BPn /yrcjT/rr. ly. /7/c/f. ce/rr: C.CC.ScSU. y/i/ro/fi//i. /fT/L co/i5ri/rr£ csr/f. (//f/o/r /VIC. COlOi^SOl/. DJ'/i.O, j/f/fT/fff srs. 50/ mc. ^r3. /fO/< F/iC. 40 60 90 /OO z. c£/rr^, ' o /o JtO m 90 /do Fig. 24 58 RAILROAD OPERATING COSTS Freight Car Density. 10,000 Freight Car Miles — Per Mile of Track 1911 N. Y. N. H.«&H $ 7.04 B. &M; 8.03 N. Y. Central 14.35 Penna.RR 18.47 D. L. & W 17.45 Leh. Valley 15.28 D. &H 13.02 C. R. R. of N. J 14.70 P. & R 18.88 Erie 14.00 B. & 13.98 L. E. & W 5.85 P. &L. E 19.85 Penna. Co 17.38 P. C. C. &St. L 14.85 L. S. &M. S 15.61 Mich. Central 11.93 Pere Marq 5.83 C. C. C. & St. L 12.19 Vandalia 9.47 C. & $ 12.92 N.&W :.... 16.82 Atl. Coast Line 4.70 Seab. Air Line 4.63 Southern 5.65 111. Central 10.16 L. &N 8.34 Nash. C. &St. L 7.11 Mob. & Ohio 10.39 C. «& A 9.73 C. B.&Q 6.29 C. R. I& P 5.81 Frisco 5.06 C. M. & St. P 6.50 Union Pac 7.52 Colo. & Sou 4.23 D. & R. G 3.99 SanteFeSys 6.77 Sou. Pac. Sys 5.65 Nor. Pac 5.04 the following data is submitted and illustrated in Fig. 26, showing the mainte- nance cost per 1,000 freight car miles for the same liiilroads. In this table, the extremes are the Union Pacific, with a maintenance cost of $5.54 per 1,000 freight car miles and the Reading with $13.47 per 1,000 car miles, a difference of 143 per cent. While this unit is not sufficiently comprehensive to include all influencing factors, it is the best basis for comparing these maintenance costs that is now avail- able. Comparisons on the basis of miles run are unsatisfactory due to not taking into consideration the variation in the weight of the cars. If the gross ton miles were reported by the railroads to the Interstate Commerce Commission (which information would reflect the total weight of both revenue and company material, the weight of cars whether loaded or empty and the distance hauled), this unit, i. e., the gross ton mile, would be far more satisfactory for com- paring maintenance costs than any now employed. Other important factors entering into the maintenance of freight cars, besides the size and loading of the cars and the miles run, are the design and material in construction, the age of the equipment and class of traffic handled. Many railroads have the majority of their cars of all steel construction, while others prefer to have steel underframes with wooden bodies. Other railroads, in order to have this portion of their rolling stock able to withstand the stress of heavy tonnage, equip their wooden cars with steel re-inforcements, which with the addi- tion of cars of all wooden construction gives four distinct types of cars. It is FREIGHT CAR MAINTENANCE 59 miGtiTmo^nsin 10,000 rreighf Car H/ks Per /IHe of Track. I9IL / Z 3 ^ S e 7 3 9 /O // /Z /3 ^ /5 /6 /7 /3 G J?^ /rrcr/rr. IV /r/y/M.co. ccc^su. /in co/fsri//y£. 5amft/f/if /a ce/rr. LS-// /r/fs/f.c.^j/'/. /70SJ^0///0. (//w/rfVic 3/iryT/r r/^ jrs no/f./'/ic. 60 RAILROAD OPERATING COSTS Maintenance of Freicht Cars — Per 1,000 Freight Car Miles 1911 X. Y. X. H. & H $ 7.31 B. &M 7.66 X. Y. Central 0.35 Penna. R. R 8.84 D. L. & W 6.68 Leh. Valley 7.34 D. &H 7.75 C. R. R. of X. J 8.82 P. & R 13.47 Erie 7.03 B. & O 6.89 L. E. & W 9.28 P.&L.E 10.33 Penna Co 9.19 P. C. C. &St. 1 9.08 L. S. &M. S, 8.49 Mich. Central 7.79 Pere Manj 7.02 C. C. C. & St. L 8.55 Vandalia 9.14 C. & $ 8.47 X. & W 6.71 Atl Coast Line 7.63 Seab. Air Line 6.70 Southern 7.46 111. Central 9.25 L. &X 8.46 Xash. C. & St. L 8.83 Mob. & Ohio 6.60 C. & A 7.25 C. B. &Q 7.90 C. R. L&P 7.09 Frisco 8.1 1 C. M. & St. P 7.05 Union Pacitic 5.54 Colo. & Sou 11.28 D. & R. G 12.31 Santa Fe Sys 6.07 Sou. Pac. Sys 9.47 Xor. Pac 6.95 evident that the type of cars used on the various railroads will have important bear- ing on the maintenance costs. The extent to which the standardization of equipment has been carried must also be considered, as those railroads having equipment with standard parts will be able to maintain their cars at considerable less cost for material than those whose equipment is not standardized. Since material constitutes approximately 70 per cent, of the total freight car maintenance, this item is a most important one. Unfortunately, the Interstate Commerce Commission records do not provide for anv segregation of maintenance costs between labor and material, although this information is necessary in order to make a complete study. The topography of the country also has a substantial influence on the mainte- nance of cars, since the service conditions are far more severe on cars when handled over mountain grades than in a level country. In making any analysis between two railroads, the question of grades must be given consideration. By far the most important item affecting freight car maintenance, and one which heretofore has not been considered is the influence of the interchange of cars. In order to facilitate the handling of traffic, the leading railroads have stand- ard rules of interchange of cars which practice permits much of the freight car mileage on any railroad to be made by foreign cars. This is a particularly large item with roads having traffic connections like the Union Pacific, Lehigh Valley, Vandalia and P. C. C. & St. L In 1910, the foreign FREIGHT CAR MAIXTEXANCE fer/OOO Freight Car/liles. m 61 /rrcc/rr ly. CKR. ornj. BJtO. n/c/icr/rr CCCJtSTL CJt'O /U. C^TAfT 1.3: rf. CJt/J. c.B3^a. mmPAC. COlOJ^SOl/. 5mT/i re.srs 50U z^/ic 5rs. /Yo/r mc. OOiL/{HSrO /3 /^ /f Fig. 26 62 RAILROAD 0PP:RAT1NG COSTS car mileage on the Union Pacific was approximately 81 per cent, of the total car mileage. In connection witli the interchange of cars there is an agreement between the rail- roads as to what repairs the owner shall be responsible for, while their cars are on foreign lines, the balance of the repairs being borne by the railroad directing their movement. Where the interchange of traffic is sutlieient to make the foreign car mileage an important item on any railroad, it is evident the method employed in making repairs to foreign cars and the billing for this service must necessarily influence the total freight car maintenance. In the records of the Interstate Commerce Commis- sion, this data is not on file and as a consequence nothing can be done in continuing a study in this respect. In conjunction with the rules governing the interchange of cars and repairs, there is also an agreement that the railroad handling a foreign car shall pay the owner a service rental for each day the car is on that particular road. On a road like the Union Pacific with over 80 per cent, of the total car mileage made by foreign cars, the per diem rental is of considerable importance in the cost of freight operation. It also follows that a road so situated, that it can control a large amount of interchange, will find it unnecessary to own a great number of cars, while railroads doing largely a local business must necessarily carry a heavy equipment investment. In order that such a study can be conducted satisfactorily, it will be necessary to know the total amounts paid by a railroad for foreign car service and also the total mileage made by these cars. Another item which influences the number of cars owned in addition to the effect of interchange of traffic, is the extent to which the cars are out of service. Gravity yards, which facilitate the handling of traffic, greatly increase the number of cars to be repaired. The same conditions exist in hauling cars over heavy moun- tain grades. To make a thorough analysis, it will be necessary to know the number of cars held for repairs each day or the average time the cars are out of service for such repairs. A careful study of the voluminous data and illustrative charts submitted in connection with this treatise on freight car maintenance, results in the full reali- zation that the present data is entirely insufficient to permit a conclusive study of this, the largest item of maintenance of equipment expenditures. There is at present no satisfactory unit to be used with the available data that will afford opportunity for the analyst to make such deductions as will be of value. Xo suggestions, therefore, can be made at this time for the purpose of assist- ing railroad operating officials in determining the best design and type of con- struction, the best methods of operation and the best practices in maintenance to attain the highest efficiency in this particular part of railroad operation. It is hoped, however, that the suggestions contained herein will be reviewed with approval by the Interstate Commerce Commission and that such data will be secured as will make future studies of freight car maintenance, educative and in- structive. Locomotive Maintenance CHAPTER V. The maintenance of locomotives, exclusive of depreciation charges on all the railroads in the United States in 191 1, was equivalent to 8.0 per cent, of the total operating expenses. This percentage of operating expenses in that year ranged from 5.8 per cent, on the Northern Pacific to 11.5 per cent, on the D. & R. G., and on seven railroads this item constituted more than 10 per cent, of the total operating expenses. Inasmuch as 35 per cent, of the total maintenance of equipment expenses are charged to repairs and renewals of locomotives, these costs should be studied very carefully before any conclusions are drawn with reference to the efficiency of performance. The usual method of comparing locomotive maintenance costs is on the basis of the annual expenditure per locomotive, this form being used in practically all of the annual reports of railroad presidents and all analyses of operating expenses. In a preceding chapter, figures w^ere given showing an average increase of 33 per cent, in the tractive force of locomotives in the 9 years ending 1910. In the year 1911, the average tractive force per locomotive varied from 20,564 pounds on the Atlantic Coast Line to 33,830 pounds on the Chicago, Milwaukee & Puget Sound — a difference of 74 per cent. Larger and heavier locomotives are bound to require higher maintenance ex- penses than those of smaller size, and with such a variation in the average weight of locomotives, it is evident that the employment of "the locomotive" as a com- parative unit is far from satisfactory. That comparisons of this nature are erroneous is emphasized by the record of locomotive maintenance on the Atchison, where the cost per locomotive was 48 per cent, higher in 1910 than in 1901. which would indicate, if the locomotive is the proper unit, that repairs had increased at an enormous and extravagant rate. In the meantime, however, the average weight increased 37 per cent. ; the average tractive force increased 41 per cent.; and the maintenance cost per ton of tractive force decreased 4 per cent. Another factor which would tend to destroy the value of the locomotive as the comparative unit is the fact that the average miles run by locomotives may vary considerably on different railroads. In 1911, for example, the average miles "per locomotive owned" on the Erie was 21,856 miles, while the average on the P. C. C. & St. L. was 37,272 — a difference of 70 per cent. If comparisons of maintenance costs are to be made on the basis of the average cost "per locomotive," it is apparent that the railroad with the smallest locomotives and running the least number of 63 64 RAILROAD OPERATING COSTS miles will possess considerable advantage. Such figures are of no value whatever for comparative purposes. On some railroads an effort is made to carry this comparison to a more satis- factory conclusion, and comparisons are made on the basis of "per locomotive mile." However, these comparisons are but little more satisfactory than on the basis "per locomotive" since the size of the locomotive is not considered, and with a variation of 74 per cent, in average weight the relative size exerts considerable influence. The gross ton mile is the most satisfactory unit, since this combines the total tonnage and the distance hauled, but this data is not available since railroads do not report this to the Interstate Commerce Commission. Any comparisons, how- ever, must take into consideration operating conditions, particularly grades and speed of trains in making a final analysis. A unit should be used which takes into consideration the power developed and the work delivered by the locomotive. The engine which propels the steam- ship is rated in horse-power and the performance is calculated in horse-power hours. Electric power units are similarly rated in Wattes and the work performed is given in watt-hours. Maintenance costs on electric equipment are not calculated as so much j)er dynamo or motor, but based on the work done — the watt-hours. It is therefore decidedly reasonable to expect to show locomotive costs on a similar basis. Trac- 'tive force or draw-bar pull is the usual term to express the power of a locomotive, and a satisfactory work unit (which may be called the tractive mile) is the product of the tractive force and mileage made. To illustrate the value of the tractive mile or work unit as a basis of com- parison of maintenance costs, the following study is made covering a period of years on a number of representative railroads. This information was compiled by the Interstate Commerce Commission at the recent rate hearing. Charts and also the actual figures are presented giving exhibits of six representative eastern and six western railroads, showing locomotive maintenance costs. Repairs and Renewals of TjOcomotives peu Locomotive. Average 4 Yrs, Average 5 Yrs. Per Cent. Eastern Roads Ending 1905 Ending 1910 Increase N. Y. Central $2450 $2,430 13 . 0% Penn. Railroad 2,340 2,640 12.8 D. L. & W 1,480 1,690 14.2 B. & 2,370 2,440 3.0 Wabash R. R 2,530 2,580 2.0 T^high Valley 2,670 2,690 1.0 Western Roads C. M. & St. P $1,365 $2,150 57.5% C. R. L&P 1,840 2,330 26.6 C. «& N. W 1,660 2,010 21.1 C. B. & Q 2,320 2,620 13.0 C. & A 2,300 2,595 12.8 A. T. &S. F 2,600 2,720 4.6 LOCOMOTIVE MAINTENANCE 65 The average cost of repairs and renewals of locomotives ^*'per locomotive" for five years ending 1910, compared with four years ending 1905, is presented in Fig. 27. REP4IR5 AND RENEmLS OF LOCOMOWES p^R Locomr/VE Avcmqc of S /ears Ending 1910 Compared tfith 3 /e(^^dmf/9fi5' PENN.RR, OLesW tV ABASH UV CM.ef5tR CR.i€^P C B.€^CL C^A. ROADS 3P S» WEST£RK ROADS ATM^S^r %//K^OS€ iO ZO 30 Fig. 27 ^O ^o &0 11. \ 66 RAILROAD OPERATING COSTS l!,l :1' Average 4 Yrs. Average 5 Yrs. Per Cent Ending 1905 Ending 1910 Increase 5.G5 cents 7 . 81 cents 38.2% 4.24 5.49 29.5 7.72 9.78 26.7 6.23 7.65 22.8 6.98 7.67 10.0 10.37 10.80 4.2 3.46 cents 5.36 cents 55.0% 6.20 8.22 32.6 6.78 9.07 33.6 4.34 5.68 31.0 6.28 7.76 23.6 9.73 10.19 4.7 The increases on the eastern railroads range from 1.0 per cent, on the Lehigh Valley to 13 per cent, on the New York Central. On the western roads the increases range from 4.6 per cent, on the Atchison to 57.5 per cent, on the St. Paul. Fig. 28 illustrates the increase in repairs and renewals of locomotives "per locomotive mile" during the ahove-mentioned period. Repairs and Renewals of Locomotives per Locomotive Mile. Eastern Roads N. Y. Central D. L. & W Penna. Railroad Wabash B. & Lehigh Valley 10 . 37 Western Roads C. M. &St. P C. RL&P C. B. & Q C. & N. W C. & A A. T. & S. F The New York Central shows an increase of 38 per cent, and the St. Paul an increase of 55 per cent., while the Lehigh Valley and the Atchison increased less than 5 per cent. The costs when calculated on the basis of tractive force (a more satisfactory unit than the other two just used), averaged for five years ending 1910, are shown in Fig. 29. Repairs and Renewals of IjOcomotives per Ton Tractive Force. Average 4 Yrs. Eastern Roads Ending 1905 D. L. & W $121.00 Penna. Railroad 181.00 N. Y. Central 191.00 B. & 182.00 Lehigh Valley 241.00 Wabash 280.00 Western Roads C. M. &St. P $172.00 C. R. L & P 180.00 C. & N. W 189.00 C. & A 198.00 C. B. & Q 246.00 A. T. & S. F. 219.00 Average 6 Yrs. Per Cent. Per Cent. Ending 1910 Increase Decrease $133.00 10.0% • • • • 169.00 6.6% 170.00 11.0 158.00 13.2 200.00 17.0 228.00 18.5 $217.00 26.2% • • • • 185.00 2.8 • • • • 191.00 1.0 • ■ • • 186.00 • • • • 6.1% 223.00 • • • • 9.3 182.00 • • • • 16.9 LOCOMOTIVE MAINTENANCE 67 ^r/^//?j /9/yz7 /?f//fmij or LoconoTiyts per locomr/zf h/le. Average cff 6 Years Ending 1910 CoimareJ iv/fh S y^ara Ending I90S. lffCRC:/{6£ Jo. t9 rfrcEfiT OlJffV. mmH BdiO. LV 40 SO IVEdTERfl ROADS. cmSTF. CMS-P cas-a. C.&/f.llY. 60 At 10 ja Fia. 28 iV A 60 68 RAILROAD OPERATING COSTS REP/I IR5 Am RE/rmMS Of LOCOnOTIVE^ PER ron TRACT/ yf ro/^CE. 5 rears Ending /9/0. memH. nrcE/iT BSfO. CnJhSTP. CRIJ^R CJhA. so too /so EftST£Riy R0/iD2 lYESTERft R0A05 SO /oo Fig. 29 J60 200 250 zoo 2SO LOCOMOTIVE MAINTENANCE 69 REPAIRS AHD REI1EWAL6 OF LOCOPOT/VES PER TOn TRACT/yE TORCE. Average of 6 Y^ars Ending /9/0 Compared tuiih 4' )^ars tndmg /905. I %DECRf/f3£. 20 /S X> 3 /rrcE/rr B.»0. LV. IV/IBfl3H cnssTP csirnw C.d'A. CBS a. AIJhSE %/ncReflSE. o s n 1$ E/UrER/TRO/IDS. WE5TERI1 ROADS. % ZO /S fO 5 e Fio. 30 20 2f /O rs ZO 2S 70 RAILROAD OPERATING COSTS A comparison of the performance by periods (Fiof. 30) for the eastern roads point out the fact that while the Wabash and Lehigh Valley spent the most money per ton of tractive force, they made a decrease of more than 15 per cent, during the five years ending 1910 over the four years ending 1905. The Lackawanna, on the other hand, while showing the least expenditure per ton of tractive force, actually increased their costs in the five-year period ending 1910 over the previous four years. The western roads show a more nearly equal expenditure, but a wider variation in comparing the two periods. The St. Paul shows an increase of 26.2 per cent, in the five-year period ending 1910 over the four-year period ending 1905; the Atchison shows a decrease of 16.9 per cent, between the same periods. Repairs and Renewals of TjOComotives per Work Unit (Tractive Mile). Average 4 Yrs. Average 5 Yrs. Per Cent. Per Cent. Eastern Roads Ending 1905 Ending 1910 Increase Decrease D. L. & W $1.75 $2.18 24.6% N. Y. Central 2.52 2.74 8.7 Penna. Railroad 3.03 3.14 3.6 Wabash 3.48 3.38 2.9% B. & 2.71 2.48 .... 8.5 Lehigh Valley 4.70 4.02 14.5 Western Roads C. M. & St. P $2.20 $2.71 23.2% C. B. & Q 3.72 4.25 14.2 C.&N.W 2.48 2.69 8.5 C. & A 2.73 2.80 2.6 C. R. I & P 3.36 3.26 3.0 A. T. &S. F 4.21 3.39 .... 19.5 The locomotive maintenance costs computed on the "tractive mile" or "work unit" basis (Fig. 31) show that the Lehigh Valley costs are higher but that they have decreased their costs 14.5 per cent. (Fig. 32). The Lackawanna is just the reverse in that their costs are the lowest per "work unit" or "tractive mile," but there is an increase of 24.6 per cent, during the i)ast five years as compared with the four-year period ending 1905. On the western roads there is not the variation noted on the eastern roads in actual costs. However, in comparing the two periods, the extremes are the St. Paul, with an increase of 23.2 per cent., and the Atchison, with a decrease of 19.5 per cent. The study of the twelve railroads just presented serves to establish the "tractive mile" or "work unit" as a much more satisfactory comparative basis than any used heretofore. In order to permit the readers to more thoroughly appreciate the situation, and to realize the necessity for a complete revision of existing units of comparison of maintenance costs, the following data for the years 1908, 1909, 1910 and 1911 is presented for many of the representative railroads, viz. : Maintenance of locomotives, "per locomotive" Figs. 33 and 34 Average tractive force of locomotives Figs. 35 and 36 LOCOMOTIVE MAINTENANCE n REP/IIRS AMD RENEWALS OF L0C0M0W55 PER V\/OR\< UNIT Average ofSYzarj Encfmq 1^10 i ^O /.OO /.60 ZOO ZSO SCO LY WABASH PENN RR NYCENT a&o. ATe^5fr CRje^P Ce^A CMe^3iR Wi'STfPN ROADS 3S0 4 LOCOMOTIVE MAINTENANCE Average miles "per locomotive" Figs. 37 and 38 Maintenance of locomotives, "per locomotive mile" Figs- 39 and 40 Maintenance of locomotives, "per tractive mile" Figs. 41 and 42 Maintenance of Locomotives — Per Locomotive. 1908 N. y. Central $2,394 Erie 3,520 N. Y. N. H. & H 1,874 Penn. R. R 2,758 D. & H 2,033 D. L. & W 1.962 C. R. R. of N. J 2,2G4 Lehigh Valley 2,649 Phil. & Read 2,700 C. & 2,024 Atl. Coast Line 1,597 Seab. Air Line 2,348 Southern 1,907 Lou. & Nash 3,258 Mob. & Ohio 1,458 Nash. C. &St. L 2,199 P. & L. E 1,410 L. E. & W 3,155 1908 P. C. C. & St. L $2,595 Vandalia 2,326 C. C. C. & St. L 2,222 Pere Marq 1,790 Mich. Central 2,007 Wabash 2,750 111. Cent 2,435 C. & N. W 1,795 C. B. & Q 2,025 C. M. & St. P 1,955 Union Pacific •• . . . 3,318 Mo. Pac 1,908 M. K. & T 2,238 Frisco 2,025 Texas & Pac 2,059 Colo. & Sou 2,402 D. &R. G 2,376 Sou. Pac. Sys 3,090 Great Nor 2,075 73 1909 1910 1911 $2,110 $2,346 $2,559 2,678 2,246 2,210 1,540 1,811 2,107 2,497 2,777 2,865 2,147 2,996 3,283 1,636 1,762 2,064 2,203 2,270 2,254 2,304 2,250 2,212 2,357 2,744 2,788 2,277 2,464 2,499 1,365 1,778 ' 1,970 2.110 2,252 2,551 1,770 2,311 2,338 2,810 2,968 3,228 1,758 2,042 2,440 2.121 2,340 2,444 1.506 1,655 2,087 3,045 2,889 3,231 'Es — Per Locomotive. 1909 1910 1911 $2,570 $2,958 $3,256 2,228 2,789 2,885 2,319 2,797 2,750 1,832 1,780 2,322 2,283 2,234 2,344 2,460 2,814 3,197 2,670 3,087 3,175 1,930 2,301 2,263 2,103 2,364 2,164 2,000 2,361 2,627 3,240 3,687 3,604 2,870 ^,766 3,966 2,682 2,679 2,633 2,390 2,902 2,448 2,254 2,336 3,165 2,658 2,870 2,321 3,313 3,156 3,151 3,283 3,702 3.499 1,< YO 2,230 2,280 RAILROAD OPERATING COSTS mimmna onoconowa Fer Locomot/ve. DOLLARS -0 Z50 500 7JO /OOO /Z50 1500 1750 ZOOO 2250 Z500 Z7fO 3000 3Z50 3500 5750 /IXC^rfTRRL. i9oa t909 /OlO 191 I /T/?/C /9oe I9IO I9t I nrrtHM. 191 1 Fm/iA.m DJ/f. i9oa /atf 1900 I909 1910 191 1 DIM. I9ea I9C9 1910 191 I CR/^.or/y.j. /9oe /909 /OlO 19 1 1 imo/f min >9oe f9ai IBtO /at I miAMm? I9C» /909 l»l O 191/ CJO /ao» /9»» /»/o /a/ / m. C0A5TU. /»om /909 /»! O /9 1 1 5^ABA/RLI. /900 /»09 /»/o 50^r///^/^/if /9oe '909 /9/0 jcoajir//J5//. /OOO /009 /9/0 /*703J^0///0 /9oa rao» /9/» /9II m5//cj^sz/. /B09 /999 /O/O /»ll /'^/.yf /9oa /909 /9/0 /on i.cj^y. /9oa f9/0 /»// dollarsr o z50 500 150 mxfo /zso /50c 1750 zooo zzso z500 ^750 30oo 3zso jsoo j7j0 Fig. 33 LOCOMOTIVE MAINTENANCE 76 miriTmna of Loco/romj^s, Per L ocomot/Ve. DOU.fiRS.-0 ZSO 500 T50 WOO IZ50 /500 1750 ZOOO Z250 Z500 Z750 3O0(? 5Z50 3SOO 3750 4000 PC.C.&5U. /AHD/iHA. CC.C.^511 . /r/^jrmm. /y/c/f.c^/yr. MA^ASM /a.c£:rfr. CMh^. cem Cr7JSTP a/rmP/9c A70.F//C. /7AJIT rR/5C0 raJ^F/ic com^so^. MR.d /909 l9lO 1911 i9oe /909 /9IO /9oa /909 t9ia /9I I i9oe /909 /9IO /9I I 190 a /909 nio 191 1 1900 /909 /9/0 191/ /9CS /9C9 /9IO /9/I /90S /f'O /9I I /9oe I90f> 19/0 191/ r9oe /909 /9/0 /9// /900 /909 /9lO /9/I /9oe /sea /O/O /9/ / /9oa /909 /9/0 /9/I i9oa /909 /9IO /9/ I /9oa /909 /9/0 /9// /soa /ao9 rmio /9I I /9ea /»09 1910 /9i I 50{/./yicjrj. /9oa /909 /9/0 /9 I I ti/^T/YOP /9oa I909 /9/0 191 I ± DMIAR5. - O ZSa 500 750 fOOO /ZSO XS*? ^750 ^a70 ZZSO 2SOO ZTSO^OW 3ZS0 5SOOS7S040OO Fig. 34 76 BATLROAD OPERATING COSTS Average Tractive Force of Locomotives — (Pounds), 1009 1910 1908 N. Y. Central 29,188 Erie 27,845 N. Y. N. H. & H 22,643 Penn. R. R 31,401 D. & H 30,441 D. L. & W 25,739 C/R. R. of N. J 24,440 Lehigh Valley 26,992 Phil. & Read 26,557 Ches. & Ohio 31,356 At. Coast Line 20,202 Seab. Air Line 24,491 Southern 28,599 Tx)ii. & Nash 26,404 Mob. & Ohio 26,288 Nash. C. & St. L 23,247 P. & L. E 32,627 L. E. & W 24,904 Average Tractive Force of IjOcomotives — (Potxds), 11)08 P. C. C. &St. L 27,666 Vandalia 23,541 C. C. C. & St. T 28,088 Pere Marq 22,483 Mich. Central 23,924 Wabash 23,560 111. Central 24,487 C. &N. W 21,193 C. B. & Q 25,243 C. M. & St. P 20,510 Union Pac 30,070 Mo. Pac 27,941 M. K. & T 24,256 Frisco 24,501 Tex. & Pac 20,496 Colo. & Sou 28,057 D. &R. G 28,103 Sou. Pac. Sys 27,766 Great Nor 29,779 1009 1910 1911 30,344 30,523 31,554 27,964 28,687 28,893 22,714 22,777 22,856 31,887 32,073 32,509 30,874 32,503 33,068 26,035 26,877 27,571 24,836 24,836 25,187 27,151 27,752 28.091 26,568 26,734 27,872 32,095 32,771 32,266 20,235 20,322 20,564 24,901 25,214 25,916 29,049 29,665 30,357 26,563 27,220 28,092 26,289 26,387 25,909 23,349 24,561 24,376 33,452 35,163 35,761 24,194 24,194 24,652 1911 27,704 28,140 28,315 23,641 24,432 24,605 29,251 30,577 31,905 22,726 23,578 24,398 24,425 26,568 28,340 23,691 23,785 24,692 24,492 24,801 25,263 21,667 22,612 24,712 24,648 24,236 26,608 20,488 21,418 22,415 30,041 30,585 30,773 29,808 28,022 29,173 24,519 24,518 26,130 25,009 25,709 27,067 20,496 20,496 20,515 28.368 28,352 29,335 27,311 26,228 27,865 26,719 27,809 28,411 29,778 32,742 33,333 LOCOMOTIVE MAINTENANCE 77 A/rn^f mcrm ma onocomf/fs. 20 Z^ ^8 ^ ^^ ^^ looo pounos.-o IZ /6 MOO /*oufros.- o T8 RAILROAD OPERATING COSTS MRME TRACWE FORCE OF L0C0mWt3. /ooo pounos. - o /z /i zo z-* ee 'Sz js 4^0 PCCJ(3TL /9CS //IffDAll/i. /m/o CCC3(5TL /9ca t9iO 19 I I /"^R^ rjAm. I9IO /7/C/fa/1T. /90B 1909 /9/0 1911 m^A5/f. /9t>m /9I0 ni I /a. cj^/rr. /90» /909 /9ie 191 t c^//// /90S /9»9 /9/0 f9i I c.B.&a. /0O0 /9»9 t9tC /9l I Cr?.^ 5TP /909 19 /e I9il anm Pfic. /aoa /SC9 19 I C t»l I p/aF/ic /909 /9/0 19 I I /7K^T. /909 /9I O I9t I rR/5C0. /9oe /9C9 l9to I9i I T^X.^FAC. /9ca /9»9 I9IO 1911 /9oa /»/ / n^FS. /9oe /999 i9t.e /9I I 5oap/ic /999 191 i LOCOMOTIVE MAINTENANCE Miles Per Total Locomotive. 1908 1909 N. Y. Central 30,427 28,300 Erie 20,637 20,385 N. Y. N. H. & H 25,206 24,200 Penn. R. R 26,715 24,429 D. & H 31,008 27,553 D. L. & W 30,617 26,336 C. R. R. of N. J 26,794 24,194 Lehigh Valley 24,392 22,786 Phil. & Read 24,662 23,354 Ches. & Ohio 25,427 25,128 At. Coast Line 28,972 27,792 Seab. Air Line 29,093 28,255 Southern 27,100 25,000 Lou. & Nash 36,300 34,800 Mob. & Ohio 29,615 29,065 Nash. C. & St. L 36,886 35,647 P. & L. E 22,606 23,364 L. E. & W 25,541 25,341 Miles Per Total Locomotive. 1908 1909 P. C. C. & St. L 34,404 32,400 Vandalia 34,709 31,895 C. C. C. & St. L 27,902 28,432 Pere Marq 24,648 25,070 Mich. Central 37,280 35,143 Wabash 32,586 29,822 111. Central 29,300 28,600 C. & N. W 33,008 33,332 C. B. & Q 26,800 26,800 C. M. & St. P 35,873 37,012 Union Pac 29,950 28,500 Mo. Pac 29,500 30,700 M. K. & T ; . . . 29,614 29,841 Frisco 26,350 • 25,900 Tex. & Pac 26,146 25,382 Colo. & Sou 26,564 26,881 D. & R. G 24,288 24,450 Sou. Pac. Sys 28,400 26,300 Great Nor 22,580 22,400 1910 30,662 21,322 24,293 27,613 28,560 26,090 26,564 25,064 25,384 28,048 30,107 30,044 27,552 37,901 29,781 37,030 28,512 28,430 1910 38,017 34,612 30,867 26,510 35,133 31,895 30,656 36,529 30,904 39,490 32,297 31,988 32,929 27,113 26,543 31,468 25,212 30,247 25,673 1911 29,861 21,856 24,845 25,810 30,084 26,764 25,908 25,084 24,817 26,516 30,584 32,084 27,259 38,080 32,043 36,858 25,283 29,329 1911 37,272 34,770 30,538 30,167 33,487 33,753 30,135 31,885 28,739 36,947 29,574 31,269 29,931 25,681 26,493 25,027 25,326 29,145 23,995 79 'M 80 RATLT^OAD OPERATING COSTS fOOO /^/L£5.~0 /2 /6 ZO 24 20 3Z nrc^fTTML /909 /9/0 ^/?/^. /•09 /9/0 /ym.H^/f. r9e» r^/y/y/i. /f/r. Z?J^//. /»oa /909 l9l« D.L.;s;^\/. /me* 1909 /9f 19 n c.RR.orricJ. /909 /9fO 194 f *9«S i/^/y/c^M mi. vx /9ft F/iJlAi^ RJ^M /9oa /9e9 /9/0 /9// CHCSJ^m/O. /9ca /9C9 /9/0 /9// /in. ca^su/. /»«* /9C9 /9/0 6^Ad.m//. /moa /909 /»// 50l/T//^/^/r . /909 /9/0 lOU.^ ///fj/f. /9»« /909 /9/0 /7033(0///t? /9oa /909 /9/0 /m// /90tf /r/l5HC.Sr5U.V/'o *it /^^LJ^. /9oa rm»9 /9/0 l.^.Srll/. /90a /»'o /9// /ooo niifs. - o a /z /e 20 24- 2a Fio. 37 S2 S« 40 LOCOMOTIVE MAINTENANCE 81 /ooo n/LC5. - o 3 /2 /S 20 24 28 32 3$ 4-0 /!"€.€ S^5T.L /9oe /909 /9/0 mnOBLIA. I90O /909 /9/0 l9l I CCCJSTL /9oe /909 /9/0 /9/t m^c /v/\m t9oa /909 raio 191 1 n/cH. crifT /90S /909 /9/0 /»'/ /y/IB/I3//. /9oe /909 /9fC //I. cmr. /9ca (909 /9/0 /an CMJ/. f90» /9C9 /9/0 CSJ^. /900 /909 /9/0 /»' I C/7J^5TF /9oe /»o» m/0/r/yjc. /9oa /9C9 A/^.m: /9oe /909 /9/0 1911 n/^.s^T /9om /909 /9/0 r/^/jcd /•ca 1—9 /9/0 /911 TJTX.Jc/'/fC 1909 /909 /9/0 /9II COjLO.JcSO^. r90€ /9/f a^(Ko. /99a /9C9 /9te /9// 50(/.PAC.5r5. /9oa J!9C9 6RTmR. /90» /9C9 /9'0 /OOO /r/i/rs, - o /2 /€ Fig. 38 20 24 za -i2 36 40 82 RAILROAD OPERATING COSTS Maintenance of Locomotives — Per IjOcomotivb Mile. 1909 1910 1908 N. Y. Central 7.8 cents Erie 17.0 N. Y. N. H. &H 7.2 Penn. R. R 10.3 D. & H 6.6 D. L. & W 6.4 C.R. R. of N. J 8.5 Lehigh Valley 10.8 Phila. & Read 10.9 Ches. &Ohio 8.0 At. Coast Lines 5.5 Seab. Air Line 8.1 Southern 7.0 Lou. & Nash 8.9 Mob. & Ohio 4.9 Nash. C. &St. L 6.0 P. & L. E 6.2 L. E. & W 12.4 Maintenance of Locomotives — Per Locomotive Mile. 1911 7.5 cents 8.0 cents 8 . 5 cents 13.1 11.0 10.1 7.2 7.0 8.4 10.2 10.0 11.1 7.8 10.5 10.9 6.2 7.0 7.7 9.1 8.5 8.7 10.1 9.0 8.8 10.1 11.0 11.2 9.1 8.8 9.4 4.9 5.9 6.4 7.5 7.5 8.0 7.1 8.0 8.5 8.1 8.0 8.4 6.0 6.8 7.6 6.0 6.3 6.6 6.4 5.8 8.3 12.0 10.2 11.0 1908 P. C. C. & St. L 7.5 cents Vandalia 6.7 C. C. C. & St. L 8.0 Pere Marq 7.3 Mich. Cent 5.4 Wabash 8.6 111. Central 8.3 C.&N. W 5.4 C. B. & Q 7.5 C. M. & St. P 5.4 Union Pac 11-2 Mo. Pac 6.4 M.K.&T 7.6 Frisco 7.7 Texas & Pac 7.9 Colo. & Sou 9.0 D. &R. G 9.8 Sou. Pac. Sys 10.8 Great Nor 9.1 1909 1910 1911 7.9 cents 8.0 cents 8.7 cents 7.0 8.1 8.3 8.2 9.1 9.0 7.3 6.7 7.7 6.5 6.4 7.0 8.3 8.8 9.5 9.3 10.0 10.5 5.8 6.0 7.1 7.8 8.0 7.5 5.4 6.0 7.1 11.4 11.0 12.1 9.7 9.0 12.6 9.0 8.1 8.8 9.2 11.0 9.5 8.9 8.8 11.9 9.8 9.1 9.2 13.6 12.5 12.4 12.5 12.0 12.0 7.9 9.0 9.5 LOCOMOTIVE MAINTENANCE 88 mifiTEmncE or iocomwt6 fer locomofm/^/k. Ce'/KT^. /O /z /'¥■ /e /a /rrc^r/TR/iL /BOO /90» /•/O 19/1 JTR/t. f9oa /9C9 /9/0 /9t I //rmj^/f. /see /9/0 mi /2f/9m./?/f /see /909 19 1 /9/I /?M. /9oe /90a f»/o 191 1 DLSch^. I90B /9C9 /9/0 cmofnj. j9oa /909 r9/o /9// i^mtt i^AL /906 /909 /9/0 PmA.Jc/^£m. /9oe /909 /9/0 /9ft C//£SJ( 0/i/O. /9O0 /909 I9/0 /9/I /90« ATL,C0/15TU '^o /9f I 5£m.mu /90e /9C9 /»/o f9t I 50(/T/Yem /•oe /909 /9/0 /»/ 1 loaj^msH. /9oe ys>09 r9i I ma.&owo. /»oe /909 f9JO ///15HCJ(3TL. /aoe /»/o r»ti /2f/./; /9C» /9/0 /9/f /.if.JF/^ /»oe /9Cl9 /S/O cr/rr^.-o /o /z. /# /s IQ Fig. 39 84 RAILROAD OPERATING COSTS n/iiinEnmE:orLocommc5 Fkr Locomotii/e/1/k. cEtrrs. - o PC.CJt5U. I9/0 t9t I VAnD/\UA ts/o /9/f C.CC.&5U. laoa /9yi PERtnma. taio MfCH. cE/rr I906 1909 mBA5H /»/o t9ll lu. c^rrr. /•oa I909 fmio /91/ c^/r.n: i909 /»/o 1911 csj-a- /909 /9IO cAfj^jrp a/y/o/y /^c. /90 9 1911 f9«9 /9fO /^O MC. /90» /»/e /9II Ar/(ji^r. /*o« /»// mi5Co. /•ce /9C9 /9/0 /9lt TEK.S(F/1C. /*«a to// COl 0. grSOU. /9oe /9cm DJ(R^- /909 3oaF/icsrj. /9ce /90» /9/C /»/ / 6/^TfiOf^. /90B /a«9 /»// C£/rr^ -o /o /z /f PlO. 40 /o fZ LOCOMOTIVE MAINTENANCE Maintenance of Locomotives— Per Tractive Mile. 1909 1910 2.47 $2.51 $2.72 4.70 3.67 3.50 2.80 3.27 3.71 3.21 3.13 3.42 2.52 3.23 3.30 2.39 2.51 2.80 3.71 3.44 3.45 3.72 3.24 3.14 3.80 4.03 4.03 2.82 2.68 2.92 2.43 2.91 3.13 3.00 2.97 3.07 2.43 2.83 2.83 3.04 2.88 3.02 2.30 2.60 2.94 2.55 2.57 2.72 1.93 1.65 2.31 4.97 4.20 4.47 1908 N. Y. Central $2.69 Erie 6.13 N. Y. N. H. &H 3.17 Penn. R. R 3.29 D. &H 2.16 D. L. & W 2.49 C. R. R. of N. J 3.46 l^ehigh Valley 4.02 Phila. & Read 4.13 C. & 2.54 Atl. Coast Line 2.73 Seab. Air Line 3 . 30 Southern 2.46 Lou. & Nash 3.39 Mob. & Ohio 1.87 Nash. C. &St. L 2.56 P. &L. E 1.91 L. E. & W 4.96 Maintenance of Locomotives — Per Tractive Mile. 1908 P. C. C. &St. L $2.72 Vandalia 2 . 85 C. C. C.&SiL 2.84 Pere Marq 3.23 Mich. Cent 2.25 Wabash 3.58 111. Central 3.39 C&N. W 2.57 C. B. & Q 2.99 C. M. & St. P.... 2.65 Union Pac 3.68 Mo. Pac 2.31 M. K. &T 3.12 Frisco 3.16 Texas & Pac 3.84 Colo. & Sou 3 .22 D. &R. G 3.48 Sou. Pac. Sys 4.12 Great Nor 3 . 08 1911 1909 1910 1911 $2.87 $2.76 $3.09 2.96 3.30 3.37 2.79 2.96 2.82 3.22 2.85 3.15 2.66 2.39 2.47 3.48 ^.71 3.84 3.80 4.06 4.17 2.66 2.78 2.87 3.18 3.16 2.83 2.64 2.79 3.17 3.78 3.73 3.96 3.24 3.19 4.35 3.67 3.32 3.37 3.71 4.17 3.52 4.33 4.29 5.82 3.49 3.22 3.16 4.96 4.77 4.47 4.53 4.40 4.23 2.67 2.65 2.85 80 86 RAILROAD OPERATING COSTS mifiTE:mncE onoco/70Tii/^5 DOU^RS." O /rrcf/rm/ii /9O0 I9IO f9t I £RI£: I900 I909 1910 1*1 I nrmm 191 I F^/fm/ 1909 /909 /9/0 /9I I T^x.&mc /9oe /909 /9/0 /9tl COLCS-SO^/. /90« /909 /9n DM6. f9oa f909 '9tO /9tl 5oaPACsrs I90* /909 /9/0 c/^T/ro/?. /9oe /9/0 f9'l OOUfl/^5. \ Fig. 42 88 BAILROAD OPERATING COSTS B % i The following data taken from these tables serves to further emphasize how erroneous conclusions may be reached in employing either the "locomotive" or the "locomotive mile" in place of "tractive mile" as the comparative unit. Maintenance of Locomotives 1911 Per Locomo- Per Locomo- Per Trac- tive tive Mile live Mile Penn R. R $2,865 11 .1 cents $3.42 New Haven 2,107 8.4 3.71 N. Y. Central $2,559 8.5 cents $2.72 C. R. R. ofN. J 2,254 8.7 3.45 Del. & Hud $3,283 10.9 cents $3.30 Erie 2,210 10.1 3.60 Locomotive maintenance on the Pennsj'lvania R. R. in 1911 shows an increase of 35 per cent, "per locomotive" over the New Haven, an increase of 32 per cent, "per locomotive mile" and a decrease of 8 per cent, "per tractive mile." The New York Central shows an increase of 13 per cent, "per locomotive" as compared with the Central R. R. of New Jersey, a decrease of 2 per cent, "per loco- motive mile" and a decrease of 21 per cent, "per tractive mile." Maintenance costs on the Erie were S3 per cent, less "per locomotive" than the Delaware & Hudson, 7 per cent, less "per locomotive mile," but were 6 per cent, more "per tractive mile." Maintenance of Locomotives 1911 Per Locomo- Per Locomo- tive tive Mile Southern Ry $2,551 8.5 cents Atl. Coaat Line 1,970 6.4 Lou. & Nash $3,228 8.4 cents 111. Central 3,175 10.5 Union Pac $3,604 12.1 cents Burlington 2,164 7.6 Per Trac- tive Mile $2.83 3.13 $3.02 4.17 $3.96 2.83 LOCOMOTIVE MAINTENANCE 89 Locomotive maintenance costs in 1911 on the Southern were 29 per cent, higher "per locomotive" than on the Atlantic Coast Line, 33 per cent, higher "per locomotive mile" and 9.5 per cent, lower "per tractive mile." The Louisville & Nashville costs show a 1.5 per cent, increase "per locomotive" when compared with the Illinois Central, 20 per cent, decrease "per locomotive mile" and 27.5 per cent, decrease "per tractive mile." The Union Pacific with maintenance costs "per locomotive" and "per loco- motive mile" 61 per cent, higher than the Burlington are only ^0 per cent, higher than the latter "per tractive mile." Maintenance of Locomotives 1911 Per Locomo- tive M. K. & T : $2,633 Frisco 2,448 Tex. & Pac $3,165 D. &R. G 3,151 Sou. Pac $3,499 Great Nor 2,280 Per Locomo- tive Mile 8 . 8 cents 9.5 11.9 cents 12.4 12.0 cents 9.5 Per Trac- tive Mile $3.37 3.52 $5.82 4.47 $4.23 2.85 On the M. K. & T. in 1911 locomotive maintenance costs show an increase of 7 per cent, "per locomotive" as compared with the Frisco, a decrease of 7 per cent. "per locomotive mile" and a decrease of 4-3 per cent, per tractive mile. The Texas & Pacific, with maintenance costs "per locomotive" less than 1 per cent, higher than the Denver & Rio Grande, shows 4 P^r cent, less "per locomotive mile" and 30 per cent, more "per tractive mile." Comparing the Southern Pacific with the Great Northern locomotive main- tenance costs on the former road show an increase of 53 per cent, "per locomotive," an increase of 26 per cent, "per locomotive mile" and an increase of 48 per cent, "per tractive mile." These studies cannot, however, be carried to a definite conclusion, due to the absence of the necessary data in the records of the Interstate Commerce Com- mission. For a thorough analysis of locomotive maintenance costs should be sep- arated among freight, passenger and switch service. The miles in each class of service should also be separated. The information on file in these records should also be sufficiently subdivided as to enable the maintenance costs to be more satisfactorily determined as between compound and single expansion locomotives. 90 KATLROAD OPERATING COSTS I Railroads operating in a thickly settled country have access to a well-supplied labor market and. in consequence, the wages are considerably lower than railroads operating in a sparsely settled country where labor is scarce. Since labor consti- tutes 60 per cent, of the maintenance costs, these variations in the raU» of wages will have a substiintial influence on the total maintenance costs, particularly be- tween eastern and western roads. While there is not the same variation in cost* of material as those for labor, there is considerable difference in the costs to rail- roads operating in the manufacturing locality as compared with those roads which do not touch the manufacturing centers. In reporting their maintenance costs to the Interstate Commerce Commission, labor and material costs should be segregated to permit the situation to be thor- oughly analyzed. Sutticient data should also be available to accurately determine the effect of grades and other operating conditions upon the maintenance costs. Passenger Car Maintenance CHAPTER VI. Passenger car maintenance in 1911 was approximately 8 per cent, of the total expenditure for maintenance of equipment or about 2 per cent, of the total opera- ting expense, and is therefore of relative minor importance when considered with the maintenance of locomotives or freight cars. As with freight car maintenance, the usual method of comparison is on the basis "per car owned," and the accompanying chart, Fig. 43, shows the maintenance cost on this basis during 1911 for a number of representative roads. The extremes in this table are $317 on the Central Railroad of Xew Jersey and $1,056 on the Louisville & Nashville, a difference of 233 per cent. If the cost per passenger car is the proper basis for comparison from these figures, it is evident that passenger car maintenance on the L. & N. is more than three times what it should be. Maintenance of Passenger Cars per Passenger Car. 1911. N. Y. N. H. & H $405.73 B. & M 479.48 N. Y. Central 759.65 Penn. R. R 820.86 D. & H 430.48 D. L. & W 650.47 Lehigh Valley 483.91 P. & R 853.14 C. R. R. of N. J 317.10 Erie 479.50 B. & 685.17 N. «& W 778.92 C. & 788.07 A. C. L 812.60 S. A. L 801 . 50 Sou. Ry 673.56 L. & N 1,056.31 M. & 705.86 Nash. C. & St. L 804.55 L. S. &M. S 978.95 Penna Co $646.64 N. Y. C. & St. L 785.33 Mich. Central 586.70 Pere Marq 635.62 P. C. C. & St. L 815.40 Vandalia 1,038.21 C. C. C. «& St. L 735.84 Wabash 782.15 C. & A 923.17 M. St. P. «&: S. S. M 902.14 C. G. W 868.22 111. Central 890.97 C. B. & Q 571.54 C. & N. W 495.23 C. R. L&P 843.55 Union Pac 998.79 Santa Fe Sys 936.33 Sou. Pac. Sys 884.66 Nor. Pac... 511.70 Grt. Nor 587.67 91 98 EAILEOAD OPERATING COSTS miiiTEmnc[orp/i55£mR cms. Per Passeti^er Car. 1911. DOLLARS. /?.^//. F/^/r/r/1. CO. /y.rc3i^srji. /7/C//. C/^/YT //i/YMl/ZI. CCCJ^JZjC. /y/13/fJ/Y. /7.S7:^ar5.3./7. cav. /U C^/YT. c.s.s^a. esrrrk/. C.R/JcP. arf/o/f F/\c, 501/.F/IC. 3rs. 6fa rro/t. OOll/f^S.^i /zoo 200 &00 /eoo PASSENGER CAR MAINTENANCE 93 /:^oo Fig. 43 Of similar comparison is the performance on two railroads operating in the same general territory, the Illinois Central with an average of $891 per car and the Burlington with an average cost of $571 per car. With the car unit and the Bur- lington cost as a standard, the Illinois Central should reduce their passenger car maintenance costs 36 per cent. The same factors, however, which serve to modify the value of the car as a comparative unit in freight car maintenance are similarly influential in affecting its value in passenger car maintenance, viz., number of cars owned and the average mileage. The size, design and material of construction will also affect the average maintenance cost per car. With the same design, size and class of passenger car the maintenance should vary with the average miles run, and. the accompanying table and chart, Fig. 44, show the average mileage in 1911 per passenger car owned on the same railroad as those illustrated in Fig. 43. In this comparative table the poorest performance is the Central Railroad of New Jersey, with 27,519 miles, and the best record is the Union Pacific, with 126,698 miles, a variation of 360 per cent. With further reference to the comparison of the Central Railroad of New Jer- sey with the L. & N., the data just quoted indicates the necessity of carrying the study for further consideration. The average miles run of passenger cars on the former road was 27,519 miles and on the latter road 85,209 miles, a difference of 210 per cent. Miles per Passenger Car Owned. 1911. Miles N. Y. N. H. &H 30,104 B. & M 31,368 N. Y. Central 64,405 Penn. R. R 62,810 D. & H 31,618 D. L. & W 43,846 Leh. Valley 45,339 P. & R 33,996 C. R. R. of N. J 27,519 Erie 46,457 B. &0 71,391 N. & W 55,137 C.&O •• 67,628 S. A. L 80,089 Sou. Ry....: 75,374 L. & N 85,209 M. «&0 67,723 Nash. C. & St. L 60,818 L. S. &M. S 97,528 Miles Penn. Co 80,291 N. Y. C. & St. L 93,608 Mich. Central 90,988 Pere Marq 44,696 P. C. C.&St.L 88,663 Vandalia 86,497 C.C. C.&St.L 85,936 Wabash 89,640 C. & A 90,157 M. St. P. & S. S. M 83,116 C. G. W 76,553 111. Central 78,940 C. B. &Q 87,206 C. &N. W 58,829 C. R. I. &P 89,538 Union Pac 126,698 Santa Fe Sys 89,662 Sou. Pac. Sys 77,525 Nor. Pac 62,313 Grt. Nor 69,770 94 3 i ■! KAILROAD OPERATING COSTS nm mmsmctR cmomm &/. lOCO niLBS. - o /fTl CO/fSll/. 3^/!S./f//^ It. /703 S'O/i/O. LS.irns Fcc^sri. tYABA5/i. c3&a an/o/Y P/1C. jAriTA f£' srs. sou.f/ic.srs looorr/ies. — o /4-0 PASSENGER CAR MAINTENANCE 95 ZO /^o Fia. 44 •1 If the passenger cars on the C. R. R. of N. J. had averaged the same mileage as on the L. & N., the number of cars on the former road would have been reduced from 642 to 206, resulting in an increase in the average maintenance cost per car for the year 1911 from $317 to $988, an increase of 212 per cent. The figures thus obtained show a variation in maintenance cost "per passenger car" of less than 7 per cent, on these two railroads, as compared with the variation of 233 per cent, previously quoted. On the Burlington the average miles per passenger car was 87,209 miles as compared with 78,940 miles on the Illinois Central, a difference of 8,269 miles, or 9.5 per cent. If the passenger cars on the Illinois Central had averaged the same mileage as the Burlington, the number of cars required would have been reduced from 887 to 803, or sufficiently to raise the cost per ear from $891 to $984. Comparisons of this nature could be carried on extensively and the results are interesting, but have little value. They merely serve to demonstrate the futility of making any use of the passenger car unit in comparing the performance of different railroads. The same may be said of this unit in comparing the performance on the same railroad for different periods. For example, the C. & N. W. maintenance costs were $562 per passenger car in 1910 and $495 per car in 1911, a reduction of 12 per cent. In 1910 this road reported a total of 1,452 passenger cars and 1,712 cars in 1911, an increase of 17.8 per cent., while the average mileage per passenger car de- Maintenance of Passenger Cars per 1,000 Passenger Car Miles. 1911. N. Y. N. H. &H $13.48 B. & M 15.29 N. Y. Central 11.79 Penn. R. R 13.07 D. & H 13.62 D. L. & W 14.84 Leh. Valley 10.67 P. & R 25.09 C. R. R. of N. J 11.52 Erie 10.32 B.& 9.60 N. & W 14.13 C. & 11.65 Atl. Coast Line 11.14 S. A. L 10.01 Sou. Ry 8.94 L. & N. 12.40 M. & 10.42 Nash. C. & St. L 13.23 L. S. & M. S 10.04 Penna. Co N. Y. C. & St. L. Mich. Central . . . . Pere Marq P. C. C. & St. L. Vandalia C. C. C. &St. L., Wabash C. & A M. St. P. & S. S. C. G. W 111. Central C. B. & Q C. & N. W C. R. I. &P.... Union Pac Santa Fe Sys. . . Sou. Pac. Sys. . . Nor. Pac Grt. Nor M, $8.05 8.38 6.45 14.22 9.20 12.00 8.56 8.73 10.24 10.85 11.. 34 11.29 6.55 8.42 9.42 7.88 10.44 11.41 8.21 8.42 . I 96 KAILKOAl) OI'KHATING ( OSTS mimcmncE oFP/isscmcR cms. Per /OOO Passer^er Car/7/7e5. m. DOZJL/iftS. — O /irCEHTRAL lemH VAL. B.^O. ATI. COAST U 5EAB./\/Al/. 5oa/%r rfoB.^otf/o. /YASHCJ^STl. /r/y/YA. CO. A(Kcjrsr/. /7/c/f. c£/yr /JfTP^ /7/JAa. yA/ri?Ai/A. ccc^sn. ATSTFJ-SSn C6J/. /U. CC/YT. cB.^a. m/oAf p^c sA/rr/f A^srs 5oc(/yfc srs. ATO/?. PAC a AT rtOA OMl/l^.-O /S /O 20 2Z 24^ ;i6 /€ /O JtO 22 2¥ 26 PASSENGER CAR MAIXTEXAXCE 97 Fig. 45 creased 11.7 per cent, in 1911 as compared with 1910. The reduction in the average maintenance cost per car was entirely due to the increase in the number of cars owned rather than to any improvement in performance, as the average cost per 1,000 miles run increased from $8.36 in 1910 to $8.42 in 1911. Further similar comparisons can be made among the different railroads, but as has been mentioned above, the resulting figures are of but little practical value. Passenger car maintenance costs are in direct relation to the weight and the distance carried. The gross ton mile is therefore the most satisfactory unit as in the case of freight cars, but this figure is not reported to the Interstate Commerce Commission. Many railroads do not maintain any record of gross ton mileage in passenger service. The only data available for any comparison of passenger car maintenance is on the basis of miles run, and the accompanying table shows the average costs per 1,000 car miles in 1911, which are illustrated in Fig. 45. The extremes are the Michigan Central with an average cost of $6.45 per 1,000 car miles and the Reading with $25.09 per 1,000 miles, a variation of 289 per cent. It is interesting to continue the study of the railroads mentioned above. Maintenance Average Maintenance Per Per Car Miles Run 1000 Miles C. R. R. ofN. J $317.00 27.519 $11.52 Lou. & Nash 1,056.00 85.209 12.40 111. Central $891.00 78.940 $11.29 Burlington 571.00 87.206 6.55 The Central Railroad of New Jersey had an average cost of $11.52 per 1,000 car miles and the Louisville & Nashville an average of $12.40, an entirely different aspect from the comparison on the car unit basis. The same is true of the Illinois Central with an average cost of $11.29 per 1,000 miles and the Burlington with $6.55 per 1,000 miles. These conclusions cannot be considered as final since the size and construction of equipment, operating characteristics and the demands of the traveling public all have bearing on the repair costs, and comparisons among different roads with full knowledge of all conditions are of doubtful value. Unfortunately, the Interstate Commerce Commission records do not contain any data with reference to the size, material of construction, capacity or weight of the passenger cars of any of the railroads. As cars 70 feet in length with six-wheel trucks will cost more to maintain than cars 55 feet in length with four-wheel trucks it is impractical to continue the present study in the absence of this data. Data should also be on file showing the number and size of cars of all steel con- struction, wooden cars with steel underframes, wooden cars with steel reinforcement and all wooden cars, together with the total mileage made by the cars of each type to permit of more conclusive analytical studies. The demands of the traveling public and the fluctuations in volume of both local and through traffic influence the number of passenger cars owned by any rail- road, the average miles run and the maintenance costs. 98 RAILROAD OPERATING COSTS Number of Passenger Cars Owned per 100 Miles of Total Track. 1911. N. Y. N. H. &H 82.6 B. & M 67.0 N. Y. Central 41.6 Penn. R. R 35.5 D. & H 33.1 D. L. «&W 60.4 Leh. Valley 26.2 P. &R 52.6 C. R. R. of N. J 69.0 Erie 38 . 8 B. & 20.3 N. & W 16.8 C. & 13.5 A. C. L 13.0 S. A. L 11.4 Sou. Ry 14.4 L. &N 12.7 M. & 11.7 Nash. C. &St. L 19.3 L. S. & M. S 24.7 Penna. Co 28.5 N. Y. C.&St. L 15.7 Mich. Central 20.3 Pere Marq 15.5 P. C. C.&St. L 24.7 Vandalia 18.8 C. C. C.&St. L 21.0 Wabash 16.3 C. & A 17.2 M. St. P. & S. S. M 9.0 C. G. W.... 13.0 111. Central 16.5 C. B. &Q 13.1 C. & N. W 19.5 C. R. I. &P 13.3 Union Pac 12 . 8 Santa Fe Sys 13.7 Sou. Pac 21.7 Nor. Pac 16.7 Grt. Nor 13.3 For the purpose of studying the variation in the amount of passenger equip- ment and the volume of passenger traffic, two tables and illustrative charts are sub- mitted, showing the number of passenger cars owned per 100 miles of total track (exclusive of yards and sidings), Fig. 46, and the traffic density, i. e., 1,000 pas- senger miles per mile of total track, Fig. 47, for the same railroads, illustrated in Figs. 43, 44 and 45. Comparison of the two tables indicates as extensive variation in the number of passenger cars per mile of track as in the traffic density, as the number of cars owned varies from 9.0 on the "Soo Line" to 82.6 cars on the New Haven— a dif- ference of 818 per cent.— and the traffic density varies from 56.2 on the Mobile & Ohio to 498.3 on the New Haven, a difference of 803 per cent. A close study of the two tables, however, reveals that a direct relation does not exist between the amount of equipment and the volume of traffic, particularly between roads similarly situated, as the following deductions from these tables serve to illustrate: Cars Owned Traffic Density N. Y., N. H. & H 82.6 498.3 Reading 52.6 252.6 D.&H 33.1 116.5 I^h. Vallev '26.2 121.2 PASSENGER CAR MAINTENANCE Per /OO/liks of Track. M 1911. -O /c 20 SO ^O SO 60 70 SO l£^/^H /Al. PhlLR.irR^AD CRROr/Yc/. /r/9/f B.^0. C.S'O. ATL CO/I5T U/i£ 5t/iB AIR L/rr£ 50O.RK lOU.XHASH. /Y/15tiC& 5T.L. Z.^.J<:/7.S. /^rfm. CO. /i.KC^5TL n/c/yc£iiT /^C.CSrSn. MnOAUA. CCCS(5U. J/MA5/r C.St A. n5TRJ(S3./^. ca.h/. /u. c£/yr CS&Q. cgf/yk< CR/.Jt'/? (//y/m F/fc smr/ifisrs. 50(/.F/1C3rS /y^FF/iC tiRT./yOF 30 Fig. 46 40 so 6C ^ sa \i 100 RAILROAD OPERATIXG COSTS Passenger Traffic Density. 1,000 Passenger Miles per Mile of Track. 1911. N. Y. N. H.&H 498.3 B. & M 301. G N. Y. Central 398.5 Penn. R. R 270.0 D. & H 116.5 D. L. & W 349.1 Lehigh Valley 121.2 P. & R 252. G C.R. R.ofN.J 349.8 Erie 198.5 B. & 136.6 N. & W 80.9 C.&O 95.9 A. C. L 75.6 S. A.L 72.5 Sou. Ry 100.4 L.&N 106.8 M. & 56.2 Nash. C. & St. L 95.4 L. S. & M. S 213.5 Pemia. Co 193.6 N. Y. C. & St. L 152.5 Mich. Central 155.6 Pere Marq 86 . 9 P. C. C.&St.L 198.1 Vandalia 130.7 C.C. C.&St.L 183.8 Wabash 147.0 C. & A 177.6 M. St. P. & S. S. M 66.8 C. G. W 93.2 111." Central 130.5 C. B. &Q 119.5 C. &N. W 120.1 C. R. L&P 124.3 I'nion Pac 137 . Santa Fe Sys 118.9 Sou. Pac. Sys 191.3 Nor. Pac 109.0 Grt. Nor 78.8 Among the eastern roads the Reading, with a traffic density of approximately 50 per cent, of the New Haven, has 63.7 per cent, as much equipment per mile as the latter road. The Lehigh Valley, with 4 per cent, greater volume of traffic than the Delaware & Hudson, handles it with 21 per cent, less equipment on the same basis. , ^ ^ TN -x Cars Owned Traffic Density 13.5 95.9 16.8 80.9 C. & 0.. N. & W. 12.7 19.3 106.8 95.4 L. & N N. C. & St. L In the south the Norfolk & Western requires 24.5 per cent, more equipment per mile than the Chesapeake & Ohio with 15.6 per cent, less traffic density. The Louis- ville & Nashville with 34.3 per cent, less equipment handles a volume of traffic on the same basis 11.8 per cent, greater than the Nashville, Chattanooga & St. Louis. Cars Owned Traffic Density 20.3 155.6 15.5 86.9 Mich. Cent. Pere Marq. Northwestern Burlington 19.5 13.1 120.1 119.5 PASSENGER CAR MAINTENANCE m5[mf< mArric ir/f5/rK 1000 Fassengcr f7//g5 Per /likaf Track. 101 19/1. 3.9: n Iftlim VAL. a^o. f*^rfm. CO. /rrc^STL. /7/M C^/YT. /?if/f^ HARa. mno/iL/A. l^AdASh. /U. C£liT. C.S/Y.hT a/r/orr fac. S/Rrrr/r f£ srs. soc/.F/PC srs. noR. F/ic a/sro jroo J^SO JOO 4SO SCO Fig. 47 M I' i i f fe 102 RAILROAD OPERATING COSTS In the middle states the Michigan Central requires but 31 per cent, more equip- ment per mile than the Pere Marquette, when the volume of traffic is 79.2 per cent, in excess of the latter road. With equal traffic densities the Northwestern has in service 48.8 per cent, more passenger cars per mile of track than the Burlington. Union Pacific . . Great Northern. Cars Owned Traffic Density 12.8 137.0 13.3 78.8 On western roads the Great Northern owns 3.8 per cent, more passenger equip- ment per mile of track, while the volume of traffic is 42.5 per cent, less than the Union Pacific. Further study discloses a probable reason for these variations, i. e., the inter- change of passenger equipment. While the interchange of passenger cars is not nearly as extensive as that of freight, the passenger traffic agreements among various connecting trans-continental lines are sufficient to make the foreign car mileage an important item, exerting in- fluence upon both equipment requirements and maintenance costs. The Union Pacific, for example, had sufficient traffic agreements so that 40 per cent, of the total passenger car mileage credited to that road in 1910 was made by foreign cars. It is evident that such extensive interchange will modify any con- clusions that may be reached as to mileage or maintenance costs of passenger equip- ment, though unfortunately the necessary data is not contained in the Interstate Commerce Commission records. In order to make a thorough analysis of passenger car maintenance on any railroad it is necessary, in addition to the type and construction of equipment, to know the gross ton mileage and maintenance costs of the cars owned and the main- tenance and the gross ton mileage of foreign cars handled by that particular road. It is to be hoped the Interstate Commerce Commission will appreciate the impor- tance of having this data on file for the purpose of permitting conclusive analytical studies. Shop Machinery and Tools. Having thus treated on the maintenance of freight cars, locomotives and pas- senger cars, which items constitute 80 per cent, of the total maintenance of equip- ment expenses and 12 per cent, is consumed by depreciation charges, there are but few items further that are worthy of consideration. As most railroads keep a record of the maintenance of shop machinery and tools, which costs are approximately 3 per cent, of the total maintenance of equip- ment, the figures for the representative roads are shown herewith. These expenses are to a large extent dependent upon the size and number of locomotives repaired and the locomotive tractive mile is the comparative unit employed in the accompany- ing table and chart, Fig. 48. As previously stated, the subjects which have been considered constitute the principal items of equipment, though some few railroads have maintenance of elec- PASSENGER CAR MAINTENANCE 103 trie locomotives, maintenance of floating equipment, which consume a considerable portion of their total maintenance of equipment costs. These items are, however, confined to such a few railroads that a study of their maintenance costs is not of sufficient advantage to be given consideration at this time. Maintenance of Shop Machinery and Tools per Locomotive Tractive Mile. 1911. Cents N. Y. N. H. &H 40.6 Penn. R. R 29.5 N. Y. Central 21.6 D. L. &W 28.8 D. & H 17.4 Lehigh Valley 16.3 C. R. R. of N.J 31.5 P.i&R 31.3 B. & 24.3 Erie 26.4 Ches. & Ohio 25.0 Atl. Coast Line 23.2 Seab. Air Line 19.3 Cent, of Geo 32.1 Southern 19.1 Lou. & Nash 20.9 Nash. C. & St. L 26.7 Mob. & Ohio 20.9 Cents L. S.&M. S 24.2 P. C. C.&St. L 26.7 111. Cent 32.1 Wabash 19.8 C. & A 23.7 C.B.&Q 26.8 C. R. L&P 18.4 Frisco 19.6 K. C. Sou 24.7 M. K. &T 18.4 Tex. & Pac 48.7 Mo. Pac 22.9 M. St. P. & S. S. M 20.6 C. G. W 26.4 D. &R. G 36.0 Union Pac 24 . 3 Santa Fe Sys 18.2 Sou. Pac. Sys 21.2 104 RAILROAD OPERATING COSTS mmmfic^ o" 5H0F mc/i//itRr Am mis. Per locomot/'/e Tracf/Ve /^//e. m. c^/rrJ. - o /tf ^e /"H/lA^Jc/i^AD. S.SrO, r/^5^. ^ OH/O. ATl.COASr/L/. S/^AB.A/Zil/. lOUJtAfAS/f. /YAS/f.C.JfSTZ. A70dSfO/f/0 /u. c^/yr A/ASAS/f c.B.gca, /r/^/sco. A, C SOC/. A7.AJ(r, A7/>.PAC. {/Af/O^Y PAC, 5A/YTAr£Sr^. Jd^ ^-e -#^ Fig. 48 ' Conducting Transportation CHAPTER VII. From the nature of their service, railroads are public utility corporations. Pri- marily they are privately owned commercial enterprises engaged in the manufac- ture of transportation for profit. For delivering transportation to the common- wealth railroads have built up great manufacturing structures and manned them with vast organizations of men. In previous chapters the maintenance of the manufacturing property, namely, roadway, rolling stock and subsidiary branches, have been considered. The opera- tion of the property and the various items entering into conducting transportation will be discussed in this chapter of the series. Conducting transportation is the largest of the main divisions of expenses, absorbing more than one-half of the total expense of operation. As outlined in a previous chapter, the ratio of conducting transportation to total expense has been decreasing during the past decade, while maintenance of property has increased in similar proportion. Analogy w^as drawn between improved transportation facilities and lower costs of operation. That a relation on this basis does exist is quite clearly shown in Fig. 49. The relative proportion of conducting transportation and maintenance of prop- erty to total operating expense for the years 1901 and 1910, with the per cent, in- crease and decrease in the latter over the former year, is as follows : 1901 Conducting Transportation... 54.9% Maintenance of Property 40 . 1910 Increase Decrease 53.3% 1.6%, 43.7% 2.6% Referring to Fig. 49, it is observed that the ratio of conducting transportation to total operating expense has decreased on an average for the ten-year period of nearly 0.2 per cent, per year. An average ratio line is added to the chart to show this. The accompanying table, illustrated in Fig. 50, shows the wide variation in this ratio among the leading railroads of the country for the year 1911. The extremes are the Louisville & Nashville and the Chesapeake & Ohio, each with a ratio of 45.7 per cent., and the Boston & Maine with a ratio of 60.4 per cent. Unlike the maintenance accounts there is a direct relation between transporta- tion expenses and the amount of business handled. The maintenance of way and structures expenses can be reduced for a limited period irrespective of the business handled ; the renewals of ties, rails, ballast or bjidges may be neglected for a con- 105 106 RAILROAD OPERATING COSTS !l siderable length of time, thougli such a method of decreasing expenses will make itself very evident in a future period, so that a comparison of these expenses must extend over a period of several years. Through large additions of new power or rolling stock, the maintenance of equipment expenses may be greatly reduced for a short time, hence a comparison of one year's maintenance costs may result in erroneous conclusions, RATIO or n/iirfKfiAiia orPROPERTrmD con duct/ m TR/\n6POfimr/on ro tot/il opERRTm apc/r^c. io It 6S SO 46 COrtOifCTItlO TRRn^PORTATIOrf. n/MrfTcnmciL or prop^rtk Fio. 49 CONDUCTING TRANSPORTATION Percentage of Transportation Expenses to Operating Expenses. 107 1911. N. Y. N. H. &H 60.0% B. & M 60.4 N. Y. Central 51.4 Penn. R. R 51.0 Erie 51.0 B. & 49.3 D. & H 57.4 D. L. &W 49.7 Lehigh Valley 51.2 Phil. & Read 51.2 Ches. & Ohio 45.7 Nor. & West 46.5 Atl. Coast Line 51.6 Scab. Air Line 51.3 Southern 50 . Lou. & Nash 45.7 Nash. C. & St. L 47.7 L. S. & M. S 49.3 Penn. Co 51.9 C. C. C. &St. L 54.5 Vandalia 51 .8% P. C. C. &St. L 51.9 C. H. & D 58.7 L. E. & W 48.6 P. & L. E 48.9 III. Central 48.7 C. B. & Q 47.9 C. & N. W M.St. P. &S. S. M C. G. W C. R. L & P Frisco 53 . 6 M. K. &T 55.5 C. & A 51.7 Union Pac 48 . 9 Santa Fe Svs 46 . 9 Sou. Pac. Sys 49 . 1 C. M. &St. P 59.4 Nor. Pac 54.4 Grt. Nor 48.0 58.2 55.3 53.6 53.3 Cost of Conducting Transportation per 1,000 Train Miles. 191L N. Y. N. H. &H $1,041 B. & M 956 N. Y. Central 795 Penn. R. R 1,017 Erie 803 B. & 772 D. & H 861 D. L. «& W 885 Lehigh Valley 874 PhiL & Read.... Ches. & Ohio .... N. & W Atl. Coast Line . . Seab. Air Line. . . Southern Lou. & Nash Nash. C. & St. L. L. S. &M. S.... Penn. Co C. C. C. & St. L.. 882 674 699 623 641 634 626 613 867 819 775 Vandalia $671 P. C. C. &St. L 755 C. H. & D 835 L. E. & W 664 P. &L. E 1,237 111. Central 681 C. B. & Q 820 C. «S;N. W 803 M. St. P. & S. S. M 718 C. G. W 803 C. R. L i&P 743 Frisco 685 M. K. & T 782 C. & A 741 Union Pac 745 Santa Fe Sys 778 Sou. Pac. Sys 914 C. M. & St. P 856 Nor. Pac 991 Grt. Nor 827 II • ^1 108 RAILROAD OPERATING COSTS CONDUCTIxVG TRANSPORTATION 109 If F£f?cmmGt or m/rsro/^rAT/m fx/mjfs TO orr/?/\T/rf6 2sr/r/xsf J. /9//. nrnti. nt-ti, 3.9:0. leAf/a^ VAl. ATI. ra/isr/y. zo^jP'/yAs/f //AJ/Y.Cif^SU. F^rrr/A. CO, CCCJl^SU. /Ar/DAl/A . j^ccjtsri. cH^a ///. cf'/yr cg:/r.p/ c.ajy/: r/?/sco. a ^ A (//y/o/r /"AC. SA/YTA FfSrS. soa/'ACsrs. /YO/r./'AC. yo €0 TO Fig. 60 COST or cofiDucwo TmnspomTm fbr 1000 Trm M/ts. nrc/^/rr renrfAH^. 3XrO. r/Y/lAJt/r^AD M£S3<0WO. ATI. COAST 1/ .S^AdA/Zf Z/ 30l/T/i£F^n IOO.J^//AS^. //ASHCg'^ri. f^/r/YA. CO. ccc^sri. yAYYOAl/A . PCC^STL. C/iJi-D. /LL.ce/iT. c.B.^a, c.^/r.kY. nsr/^^5.sn C.a.hY. r/r/sco. C.^tA, CZ/Y/O/Y Y'AC sAYYTA fesrs, 5oaFAC. srs. cn^ST/' /YO/^, rAC. CiYir /YOYO, POi.lA/f'5, - O m. ^00 ^00 600 soo /ooo /20O jioo ^ao Fio. 61 600 aoo /ffOO /^oo ^^" RAILROAD OPERATING COSTS Not so with transportation expenses, as these are in direct relation to the amount of business liandled. The usual method employed in comparing cost of con- dnctmg transportation is per train mile. Costs on this basis for the same repre- sentative roads previously illustrated are shown in Fig. 51 and accompanying table for the year 1911. r j & These figures show a variation from $623 per 1,000 train miles on the Atlantic Coast Line to $1,237 on the Pittsburg & Lake Erie, a difference of 99 per cent -bor the purpose of analysis, the principal items of expense in conducting trans- portation are shown in the average per cent, of total in Fig. 52, as follows : Enginemen, Yard and Trainmen 34 cr Locomotive Fuel pt Station Men and Dispatching ' p Claims, Damages and Miscellaneous Expense ^ * * 11 Engine House, Engine Supplies and PJxpenses 6 Train Supplies and Expenses ^ Supervision o Careful analysis of these expenses discloses many items that are not dependent upon the discretion of the management and consequently any deductions of the per- formance on the train mile basis for the same railroad during different period^ or among various railroads for the same period, may be unfair, as each item of this expense must be given separate study. The wages of yardmen, trainmen and enginemen constitute approximately 34 per cent, of the total, while the wages of station employes and train dispatchers are approximately 17 per cent., so that these expenses, which are essentially labor items make up 50 per cent, of the total cost of conducting transportation. The cost of conducting transportation is more than one-half the operating ex- penses and the wages paid the above classes of labor approximates 25 per cent, of the total operating expenses. As the earnings of these employes are dependent upon the hours occupied in performance of their work, rather than upon the volume of business, a 25 per cent increase in their wages will effect a 6 per cent, increase in the total operating ex- penses. ° It is therefore logical to say that one-half the cost of conducting transporta- tion, or one-fourth the total operating expenses, is independent of the skill of the individual or the administrative ability of the supervising officer. Locomotive fuel, the largest single item of expense in railroad operation is of such importance that the following and concluding chapter of this treatise is devoted entirely to this one item and need only be mentioned at this time. The remaining 24 per cent, of the total cost of conducting transportation is divided as follows: Claims, Damages and Miscellaneous Expenses 11% Engine House Expenses and Engine Supplies q Train Supplies and Expenses 4 Supervision « CONDUCTING TRANSPOETATIOX 111 DIVISION or CONDUCTING TRANSPORTATION exPEiNSts ON large: roads supe:n\/f3/0N 3 0% ENGtNE, 6UPPUE5 CLAIMS^ DAMAGES €s M/SCL . EXPENSES ST^T/OA//HEN £Jf DASP^yc/fERs. tro% LOCOA/IOTI\^E rUEL. ZSO% ENQA^EMBN fSO% YARO ^TRAJNMCN /9.0%-^ TOTAL 3AM Fig. 52 112 RAILROAD OPERATING COSTS The lirst item, claims, etc., while aggregating 11 per cent, of the total, includes eighteen miscellaneous items so diversified as to afford no adequate unit of com- parison, while the last item, that of supervision, is largely a fixed charge having no direct relation to the business handled. Engine house expenses, covering the attendance at terminals and the cost of lubricants and supplies furnished locomotives, absorb 6 per cent, of the total cost of conducting transportation, while the expenses incidental to the handling and sup- plying of trains at terminals included in the item "train supplies and expenses" con- sume 4 per cent, of the total. Engine house expenses, locomotive lubricants and supplies are dependent upon the size of and service rendered by the locomotives, and consequently the locomotive work unit or tractive mile is the equable basis for these items. While these expenses are of minor importance in relation to the total cost of operation, considerable attention is directed by railroad operating officials, particu- larly mechanical officers, in the detail performance of these items, and statements and charts, Figs. 53, 54 and 55, showing the costs on a tractive mile basis are shown. Train supplies and expenses are not dependent on the number of train miles, but upon the car mileage, but inasmuch as the expense of passenger equipment is greater than that of freight equipment, the comparison should be upon the basis of passenger car miles and freight car miles separately. Unfortunately, the records of the Interstate Commerce Commission do not pro- vide for the division of these expenses as between pa.«senger and freight, so that satisfactory comparisons cannot be made at tliis tinte. Engine House Expense per Tractive Mile. 1911. N. Y. N. H. &H $l.or ■^3 B. & M N. Y. Central... Penn. R. R B. & Erie D. & H D. L. & W Lehigh Valley. .. P. & R C. R. R. of N. J. C. & N. & W Atl. Coast Line. Seab. Air Line. . Southern Ry. . . . L. &N.... Mob. & Ohio. . . . Nash. C. & St. L. L. S. &M. S 1.06 .85 .79 .57 1.08 1.15 84 .78 .97 .88 .52 .70 .74 .42 .62 .65 .99 .62 .69 P. C. C. &St. L $0.i Mich, Cent 68 C. H. &D 90 C. C. C. &St. L 76 Vandalia 99 111. Cent 1 . 13 C. B. & Q 95 C. R. L& P 88 C.&N. W 1.22 Frisco 72 M.K.&T 1.20 K. C. Sou 94 C. G. W 1.10 C. St. P. M. & O 1.18 M. St. P. & S. S. M 99 Union Pac 99 C. M. & St. P 1.40 Santa Fe Sys 96 Sou. Pac. Sys 93 Xor. Pac 91 CONDUCTING TRANSPORTATION Traffic Expense and General Expense. 113 The traffic expenses, together with the general expenses of a railroad, constitute approximately 7 per cent, of the total operating expenses, and are largely fixed charges. Inasmuch as they bear no direct relation to the train mileage, engine mileage, car mileage, traffic density, geographical or topographical conditions, these expenses are not dependent upon the discretion of the operating officials and any study with reference to a comparative unit will be of doubtful value and is not given consideration. /^rJracfyye /7//e . CCtlT-S.-O /O ZO 30 /9//. jfo so 60 70 ao 90 »o I/O ixo /so f*o BJcO. £/^/£. DJcH C/^.or/Yc/. C.S^O. ATLCMSTLl. LO(/.^/r/fSAt nOBJfOH/0. ISS/7J FCCXSTl. /7/rn CB/iT C.HXcD CCCgrSTl //{fiDfll/ZI. /a c£/iT ACS (PC/. cay/ C5Te/7^l'0. nsrFX-ssv?. c//r/m/=yic. s/^rrmrfsrs. sour/fcsK^. /YOR F/iC. cenrs. /OO //» /«V9 ASO Ma Fig. 53 II ' 114 RAILROAD OPERATING COSTS Locomotive Lubricants per Tractive Mile. 1911. Cents N. Y. N. H. &H 13.9 B. & M 7.3 N. Y. Central 8.5 Erie 9.3 Penna. R. R 7.2 B. & 6.4 D. & H 10.8 D. L. & W 8.9 Lehigh Valley 7.7 C. R. R. of N. J 10.7 Phil. & Read 8.9 N.& W 6.0 Ches. & Ohio 7.0 Atl. Coast Line 11.3 Seab. Air Line 7.7 Cent, of Geo 5.7 Southern 5.4 Lou. & Nash 8.5 Nash. C. & St. L 10.6 111. Cent 10.9 Cents L. S. «& M. S 7.1 Penn, Co 7.9 P. C. C. &St. L 8.1 Mich. Cent 9.5 Vandalia 9.2 C. C. C. &St. L 8.6 C. & A 8.2 Wabash 10.0 C. B. &Q 7.2 C.&N. W 11.9 C. M. &St. P 10.6 C. R. I. &P 8.6 Frisco 8.8 M. K. & T 11.1 Mo. Pac 7.0 D. &R. G 12.1 Santa Fe Sys 10.0 Union Pac 6.3 Sou. Pac. Sys 8.7 Grt. Nor 9.3 IjOcomotive Supplies per Tractive Mile. 1911. Cents N. Y. N. H.&H 13.5 B. & M 8.2 N. Y. Central 6.6 Erie 8.9 Penn. R. R 9.2 B. & 9.2 D. & H 8.2 D. L. & W 11.0 Lehigh Valley 7.3 C. R. R. of N. J 10.2 Phil. & Read 13.0 N. & W 7.5 Ches. & Ohio 11.0 Atl. Coast Line 8.4 Seab. Air Line 8.6 Cent, of Geo 6.4 Southern 6.1 Lou. & Nash 10 . 5 Nash. C. & St. L 6.8 111. Central 8.5 Cents 6.7 7.3 L. S. &M. S Penn. Co P. C. C. & St. L 10.4 Mich. Cent 5.9 Vandalia 10.1 C. C. C. & St. L 11.4 C. & A 9.2 Wabash 8.6 C. B. & Q 9.1 C. & N. W 9.9 C. M. & St. P 13.8 C. R. I. & P 7.5 Frisco 10.1 M.K.&T 8.9 Mo. Pac 12.1 D.&R.G 17.8 Santa Fe Sys 5.6 Union Pac 9.4 Sou. Pac. Sys 11.1 Grt. Nor 8.0 CONDUCTING TRANSPORTATION LOCO/IOWf L/jm/CA/iT3. PerTracWe/li/e. m 115 cerfTJ.-o B.&n /yrce/yr. eRfe. 3.^0 UM/^tf mi c/^Ror/Yc/. CHE3.S0H/0. ATL COAST a. SEAB. AIR U ce/iTOF^Ea 50C/T/yE/?/Y. LOU. ^T/AS/i. nASHCJrSU /IL.CE/yT l.S.ScMS F^mA.CO. f^CCSrSTL AT/C^.Ct/YT /A/iDAL/A. ccc^sri. CJi-A'. H^ABASTi. csjca C AT^^TP. /7^/SCO. ATO. PAC. sA/YM/rsrs (////0/Y FAC SOUPACsSKS. Fig. 54 116 EAILROAD OPERATING COSTS m Fuel BJc/7. 3.^0. c/^/i.oF/y.c/. c/Yts. Jto/z/a ATI. COASri/. ^fASA//€l/. mS/i.CJ^STJL. /// cerYZ /r.c xrsri . yA/YMl/A . CCC^STL C.X^A. mBASM. r/i/sco. A70.FAC. SA/YTA/TSrS 6//y/0/Y FAC, SOaFAC.SKS. certrs- o CHAPTER YIII. The fuel consumed by locomotives on the railroads of the United States during the fiscal year 1911 totaled 132,000,000 tons, which is equal to one-fifth of the entire annual output of the coal mines of the country. This item required an expenditure of about $240,000,000, or 12 per cent, of the total operating expenses of the railroads, and amounted to 62 per cent, of the expenditure for maintenance of way and structures and 52 per cent, of the expenditures for maintenance of equipment during that period. During the past ten years the value of fuel used on locomotives by the rail- roads of the United States has steadily increased, and with the greater use of fuel for industrial purposes, the larger expense of mining, it is evident that the cost of this item of railroad operation must continue to increase rather than to diminish in the future. This is not only a matter of immense moment to the railways, but it is an important economic factor which justifies closer study of conservationists for the purpose of determining whether there may be any method by which such a vast consumption may be diminished. The importance of this was sufficiently recognized by the United States Gov- ernment, and in 1906 arrangements were made to have Dr. W. F. M. Goss conduct a series of tests for the purpose of determining the best methods for utilization of fuel in locomotive practice. These tests were conducted with a single expansion locomotive equipped with a superheater, and the results were given to the public in a bulletin issued by the United States Geological Survey. As a result of these tests. Dr. Goss has demonstrated that under ideal conditions, of all the available heat in the fuel consumed by a locomotive, 57 per cent, is absorbed by the boiler and superheater and the other 43 per cent, is distributed in heat losses as follows: Products of combustion 19% Imperfect combustion 17 External radiation and leaking 7 In drawing the general conclusion as to the result of these tests, Dr. Goss states as follows : "It is apparent that the utilization of fuel in locomotive service is a problem of so large a proportion that if even a small sa^^ng could be made by all or a large proportion of the locomotives of the country, it would constitute an im- portant factor in the conservation of the nation's fuel supply. 117 118 RAILROAD OPERATIXG COSTS '^Locomotive boilers are handicapped by tlie requirement that the boiler itself and all of its appurtenances must come within rigidly defined limits of space, and by the fact that they are forced to work at a very high rate of power. "Notwithstanding this handicap, it is apparent that the zone of practical improvement which lies between present day results and those which may reasonably be regarded as obtainable is not so wide as to make future progress rapid or easy. "Material improvement is less likely to come in large measures as the result of revolutionary changes than as a series of relatively small savings in the several items to which attention has been called." From the foregoing it is apparent that fuel economy must be secured in the following : Reduction in losses due to imperfect combustion. Greater utilization of heat in escaping gases. Increased evaporation per pound of coal. Improved economy in steam consumption. For a number of years the Railway Master Mechanics Association have been making exhaustive tests for determining the best design of draft appliances and of arches in the fireboxes, for the purpose of reducing the losses due to imperfect combustion. Inasmuch as the locomotive used by Dr. Goss in his tests was equipped with a very efficient superheater, it is doubtful if much additional economy in the second item can be expected through improvements, though recent designs of locomotives have feed-water heating devices for the purpose of using a portion of the heat now lost in escaping gases. Effort is also being made to secure better circulation in the boiler and thus increase the evaporating efficiency of the coal. The necessity of adequate supervision of this important item of operating expenses has also been recognized, and many railroads have well organized fuel departments under capable managers who direct the handling of fuel from the loading at the mine to the delivery to the locomotive. This has served to eliminate losses in transit and delivery and secured greater accuracy in records of disposition and disbursements. Some railroad operating officials have extended the jurisdiction of their fuel supervisors to include the education of the enginemen in the best methods of firing, including the installation of suitable records of fuel performance. This has been a well-directed step, for vast improvement can be accomplished by the adoption of suitable accounting methods, whereby each engineman is charged with the amount of fuel actually taken and the establishment of proper standards so as to permit the performance of each individual to be accurately determined. With such data available any divergence from standard performance can be readily detected, and such corrections made as seem necessary after thorough in- vestigation. Chemical analysis of the various grades of coal used often confirms the deductions from these investigations, resulting in closer inspection of fuel FUEL 119 purchased. Modification of design in the locomotive appurtenances pertaining to combustion is often found to be advisable, further indicating the value of accurate records, proper standards and efficient administration. While all of these methods have undoubtedly served to secure more economical fuel performance, it would appear that the most important item, viz., improved steam consumption, has been overlooked. Inasmuch a;? 5T per cent, of the available heat in the fuel is absorbed by the boiler and superheater, the greatest net economy can be effected by developing more horsepower per pound of steam. The thermal efficiency of the single expansion locomotive, in actual service, averages from 3 to 4 per cent., and with the compound locomotive, equipped with superheaters and feed-water heaters, this figure is raised to 5 or 6 per cent. The thermal efficiency of the more refined marine engine averages from 12 to 15 per cent., and recent developments of a superheated steam unit in Germany have resulted in securing a thermal efficiency of 20 per cent. If the thermal efficiency of the steam locomotive was increased to 10 per cent., the saving in fuel would amount to over $120,000,000 annually, which is equal to 6 per cent, on $2,000,000,000. Notwithstanding this, there has been no con- centrated effort by railway mechanical officials to design a locomotive which would compare favorably with results obtained in marine practice or even in European locomotive practice. In the locomotive tests conducted by the Pennsylvania Railroad at St. Louis in 1904, it was demonstrated that the coal consumption per dynamometer horse- power was 3.5 to 5 pounds for single expansion locomotives and 2.0 to 3.6 pounds for compound locomotives. The average fuel consumption of compounds was approximately 30 per cent, less than single expansion locomotives, which figures were later accepted by the Railway Master Mechanics Association. In view of this, it is somewhat surprising, with locomotive fuel the largest single item of expense, to find from the records of the Interstate Commerce Com- mission that compound locomotives constitute only 7 per cent, of the total tractive force of the railroads in the country. Only four railroads have over 20 per cent, of their tractive force in compound locomotives and but eight others have over 10 per cent., while twenty-five of the leading railroads have no compound loco- motives of any design in service. Many conservative railroad mechanical officials have, however, refused to con- sider the question of compound locomotives, on the theory that the increased repair costs due to the more intricate machinery make it unwise to use compound loco- motives, since the saving in fuel would be more than offset by the increased main- tenance costs and the increased time out of service. When it is considered that on some railroads the annual expenditure for loco- motive fuel is twice and even three times the expenditure for locomotive main- tenance, the matter should be thoroughly investigated before a decision is reached that compound locomotives are too expensive to maintain to be considered as power units. In view of the absence of a satisfactory basis for comparing performance and costs, it is extremely doubtful if the situation has been thoroughly analyzed. The usual method of comparison has been on the basis of the cost per locomotive mile, 120 RAILROAD OPERATING COSTS COJT OF ft/£l /29P £/f6//f£: /Y/IE c£»reor/%r/bi/ Ending /905. /C 20 » I I ft/r///?/?. Miosis// 40 so CdrA. WE^nSf// /fO/\D5. m 20 Fio. 67 30 40 FUEL 123 The cost of locomotive fuel per tractive mile on the roads mentioned for the five-year period 1910, when compared with the cost in the previous four-year Cost of Fuel Eastern Roads Per Tractive Mile Erie $2.16 Penna. Railroad 3 . 23 K Y. Central 3.75 D. L. «& W 3.7G Wabash 4.42 I^ehigh Valley 5.10 Western Roads C. & A $3.37 C.B.& Q 3.87 A. T. &S. F 5.52 C. R. I&P 5.74 C.&N. W 6.01 C. M. & St. P 6.32 period, does not show a general increase as on the locomotive mile basis. Fig. 59 and the accompanying table show this clearly. Decrease 10.0% Eastern Roads Increase Penna. Railroad Lehigh Valley 1.6% Wabash 8.4 N. Y. Central 10.0 Erie 25.6 D. L.&W 31.5 Western Roads A. T. &S. F C. R. I. k P. (Avg. 3 yrs. ending 1905) C. M. «fe St. P 3.1% C. & A 4.7 C. B. & Q 8.2 C. & N. W 10.3 The Pennsylvania Railroad shows a marked decrease of 10 per cent, in the cost of locomotive fuel per tractive mile for the five-year period ending 1910, as com- pared with the previous four-year period, while the D., L. & W. shows an increase of 31.5 per cent. Of the western roads the Atchison decreased 10 per cent, and the C. & N. W. increased 10.3 per cent, during the same comparative periods. 10.4% 0.7 124 RAILROAD OPERATING COSTS C03T or FUEL PER WORK UNIT A ve raqz S /c or Pzriod Endinq 1^10 N.YCENT WABASH LV. Ce^A. AT.Cf^jr C.B.C^Q CRLBP. C.fsH W A\STEk\N X?0> i X?0> D^ WZ5T£fA/R0/D^ St Fig. 58 COST OFFUa f^R k/Of^KUm. Percent /ncrease or Decrease for J )^or Per/od £n(/inf /9/0 Com/?an?e /see /SOS /s/o /Sll C/i.^D. /909 /909 /9/C tSII CCC^dll. /9oa /9»9 /9/C /SI/ W AS 2.0 ^.S S.0 129 S.^ ^j9 //^n/D/IUA. /9oa /909 /9/0 19 1 1 /LI. C£nfT. /SOB /S09 /9/0 /Sit cd.^a. /see /909 /s/o /Sll cjc/y.iv. /see /909 /9/0 I9f I C./^./AF. /9oe /909 /9/0 /St I f/^/5C0. /see ises ISIO 191 1 /7./f.^T isot /909 I9IO 19/1 CJc/l. /SOB l»C9 r»/o C5T/?/7J^O. /9oe /SOS /9/0 /75T/=JcS.5.J1. /son /SOS /s/o /s// /see m/o/y pm tjz rsi I dAfimrt^rs /9oe /SOS /9IO 1911 W/f. FAC. /9oa /909 I S/O /9I I Tvrys.-^o OS /.o /.s Fio. 61 ZX) Z.S 3.0 SiS -no 130 RAILROAD OPERATING COSTS FUEL 131 n Locomotives of equal tractive force will burn more fuel per mile run on heav)' grades in mountainous districts than those operating in level countries. The quality of fuel used will also influence the consumption as a greater quantity of low-grade fuel will be required than of first-class fuel in developing the same horse-power. Railroads operating in the Eastern States having access to the best grade of bituminous coal, as the New York Central, Pennsylvania and Chesapeake & Ohio, should use less fuel than western railroads with similar grades using sub-bituminous and lignite coals. The average heat units per ton of the various grades of fuel would be of valuable assistance in comparing jierformance on fuel, but as this data is not available, this study cannot be made as extensive as is desirable. While the fuel data furnished the Interstate Commerce Commission includes the fuel used by oil-burning locomotives reduced to a coal equivalent, it would permit of more satisfactory analysis, if separate records were maintained for oil and coal-burning locomotives. Methods of operation (viz.: the tonnage and speed of trains), traffic conditions and physical characteristics, all liave substantial influence on fuel consumption and no definite conclusions can be reached without full consideration being given these factors. Since the records* of the Interstate Commerce Commission at present do not contain this information, this study has been made with such data as is available. Railroads traversing the same general territory have, as a rule, the same oper- ating conditions and have access to the same grade of fuel, so that comparisons among roads similarly situated possess considerable value on fuel consumption. The C. & N. W. and the M. St. P. & S. S. M. occupy the same general territory, handle the same general traffic and should in a measure use the same grade of fuel. The percentage of total tractive force on these roads divided between compound and single expansion locomotives is as follows : Compound Single Expansion C. &N. W loofo M. St. P. & S. S. M 38.4^0 60.8 In order to compare the fuel consumption and locomotive maintenance for as long a period as possible, the figures have been taken for the years 1910 and 1911. As extensive additions were made to the mileage operated by the M. St. P. & S. S. M. in 1909, it is impractical to include more tlian the two years mentioned. The fuel consumption and locomotive repair costs per tractive mile for the two years, which are illustrated in Fig. 62, are as follows : Tons Fuel Per Tractive Mile 3.33 $2.82 Loco. Repairs Per Tractive Mile C. &N. W M. St. P. &S. S. M From the above it is apparent that locomotive maintenance on the M. St. P. & S. S. M. was 10 per cent, greater and the fuel consumption was 35 per cent, less than on the C. & N. W. Considerable variation is in evidence in the fuel performance of freight loco- motives, on the basis of the revenue ton mileage for the same two years. The tons of freight fuel per 10,000 revenue ton miles for this period on the two roads are as follows. Fig. 62 : C. &N. W 4.22 tons M. St. P. & S. S. M 1.80 " This shows a reduction of 57 per cent, in freight fuel consumption on this basis. As the revenue ton miles do not include the ton mileage of company material, this figure cannot be taken as final and, unfortunately, the Interstate Commerce Commission records do not contain this information. Neither do these records show the tractive force or total miles run by locomotives in freight service, so the study must of necessity be confined to the figures shown herewith. If these records contained the number of compound and single expansion loco- motives in freight and passenger service, the fuel consumption, miles run, tractive force, and maintenance costs of each class, a much more valuable analysis could be Tomor/va Per Tract ive /Ti/e . /9/0& /9//. wcomwt m/fiTtfYmct Per J-act/i/e /^//e. Per moo Pei4f/?6/e 7d/pM/es. Fig. 62 132 RAILROAD OPERATING COSTS made. As the maintenance of all locomotives on the basis of cost per tractive mile seems to indicate that compound locomotives are slightly more expensive to main- tain, it is exceedingly unfortunate that the situation cannot be analyzed thoroughly. The total maintenance costs of all locomotives on the Northwestern for the two years was $7,217,338, while the total cost of locomotive fuel for the same period was $16,412,054, or 227 per cent, that of locomotive maintenance. If the locomotive maintenance cost per tractive mile on the Northwestern had been equal to that on the M. St. P. & S. S. M., the total expenditure per locomotive maintenance for the two years would have increased 9.9 jier cent, or $715,000. If the fuel consumption per 1,000 revenue ton miles on the Northwestern had been equal to that of the M. St. P. & S. S. M., there would have been a reduction for the two years in the fuel expense for freight service alone of $5,298,206. Similarly, if the fuel performance per tractive mile for all classes of service on the Northwestern had been equal to that of the M. St. P. & S. S. M., the total expenditure for fuel during this period would have been reduced $5,850,000. From the figures just quoted it is evident that an increase of $715,000 in loco- motive maintenance costs on the Northwestern would have permitted a reduction of $5,850,000 in fuel costs, effecting a net saving of $5,135,000 in the two years. This represents an annual saving of $2,567,500, and is equal to 4.8 per cent, of the total operating expenses and 8.3 ])er cent, of the cost of conducting transporta- tion. Such a saving would reduce the operating ratio from 70.8 per cent, to 67.3 per cent., and reduce the transportation expense percentage of operating expenses (which is now considerably higher than any other trunk line) from 58.2 per cent, to 56.0 per cent. An annual saving of $2,566,000 in freight fuel is equal to 5.2 per cent, in the freight earnings, and such a sum is sufficient to pay tlie regular 7 per cent, dividend on practically thirty-six million six hundred and fifty thousand ($36,650,000) dollars of common stock. The two roads just studied are, however, under different managements and difference in methods of operation affect the total performance. For example : Lighter tonnage per train and faster train schedules will mate- rially affect the fuel consumption, indicating the necessity of a careful survey of the entire situation before a final decision is reached. The Michigan Central and the C. C. C. & St. L. traversing the same general territory and handling similar traffic offer a better study than that just presented, since these roads being under the same management, methods of operation and maintenance should be more nearly identical and consequently permit of more satis- factory comparisons. The percentage of locomotive tractive force in compound and single expansion locomotives on these two roads is as follows : Compound C. C. C. &St. L. Michigan Central 20 . 5% Simple 100% 79.6 FUEL 133 The fuel consumption and locomotive maintenance costs on a tractive mile basis for the two years 1910 and 1911 are as follows: Tons Fuel Per Tractive Mile Loco. Repairs Per Tractive Mile 2.53 $2.89 2.26 2.43 C. C. C. &St. L Michigan Central Under similar methods of operation and maintenance the Michigan Central, with approximately 21 per cent, of total tractive force in compound locomotives, shows a reduction in total locomotive performance under the C. C. C. & St. L. of 10.7 per cent, in fuel and 16 per cent, in repair costs. The fuel consumption in freight service, on the basis of the revenue ton mileage for the two roads for the same period is (Fig. 63) : Tons Freight Fuel Per 10,000 R. T. M. C. C. C. &St. L 2.74 Michigan Central 2.35 Tons FL/a Per Tracf//e/7/'k, mSr/QII. C.CC.&5T.L. A7/c/r. cerrr. Im^/y///y//yyyyyyy/ /^^^^^^ iocmmi€ m/iTt/rma Fer Tract/ if'e /^/'k. r?/c:// Cf/YT. bw/y///yyyyy/yyyy///^^^^^^^ mm r/^a6/fT /=i/£l fer 10,000 Revenue Ton Mks. /9/O^m. Fia. S3 134 RAILROAD OPERATING COSTS This shows a reduction in freight fuel consumption of 14.2 per cent, in favor of the Michigan Central. Since operating and maintenance methods on these two railroads should be fairly identical, the reduction of 16 per cent, in locomotive maintenance costs on the Michigan Central as compared with the C. C. C. & St. L. would have a tendency to dispute the assertion that compound locomotives cost more to maintain per unit of work, while the fuel economy is very evident. It is to be considered that final conclusions cannot be made since but 21 per cent, of the tractive force of the Michi- gan Central is in compound locomotives, though the figures are apparently sufficient to indicate that the maintenance of compound locomotives is not sufficiently high to prohibit their use as power units. Further, as service conditions are similar on these two roads, valuable compara- tive data becomes available which will serve to confirm or controvert the statement that compound locomotives are out of service more than single expansion locomo- tives. The following figures show the average miles run per freight locomotive and the average 1,000 revenue ton miles per freight locomotive for the two years 1910 and 1911 (Fig. 64) : Miles Per 1000 R. T. M. Miles Frt. Loco. Per Frt. Loco. C. C. C. & St. L 20,887 8,340 Michigan Central 26,849 9,836 The performance in both items is extremely favorable to the Michigan Central, since the average miles run per freight locomotive is 28.5 per cent, greater and the 1,000 revenue ton miles per freight locomotive is 18 per cent, greater than on the C. C. C. & St. L. The average mileage of all locomotives on the two roads for the two years is as follows (Fig. 64) : C. C. C. &St. L.. Michigan Central, Average Mileage Per Total Locomotive 30,698 34,283 The average mileage per total locomotive is valuable since the total locomotive miles includes all mileage in both revenue and non-revenue service, while the mileage of freight locomotives is that of revenue service only. These figures also are more favorable for the Michigan Central, since the average miles run by all locomotives in the two years is 11.8 per cent, greater than on the C. C. C. & St. L. If there were separate data covering maintenance, miles run, tonnage handled, fuel consumption, etc., for the two classes of power units the study could be made more conclusive. The conclusions drawn from the performance on the two roads just studied are, however, apparently sufficient to controvert the generally accepted opinions that compound locomotives are more expensive to maintain and the time out of service is more extensive than in the case of single expansion locomotives. It further indicates that compound locomotives are active agents in promoting fuel economy, and while the management of the Michigan Central is to be compli- FUEL 135 mented on the use of this type of power units, it is evident that the consumption of fuel could be further reduced by having all of their power of compound design rather than the 20.5 per cent, shown above. It is also interesting to compare the performance on the Michigan Central with other railroads operating in the same general territory, having all of their power in single expansion locomotives for the year 1911 as follows: C. H. & D P. C. C. & St. L. 111. Central Vandalia Mich. Central . . . Another study of similar nature of railroads operating in the southern states affords us further information. The N. C. & St. L. has approximately 6 per cent. Tons Fuel Per Tractive Mile Loco. Repairs Per Tractive Mile 3.57 $4.03 2.60 3.09 3.22 4.17 3.11 3.37 2.24 2.47 mr3 pm TRmHT Locomwe. ismm. c.cc.&sr./.. /7/c/fcmr. vm/^//m///////////mM^/////^/m ///A2asd7 va iwyyy/yyyyy/yyy///^^^^^^ mf3FtR TOM Locomr/i/t. /9m/9//. cccx-sri. Per rreig/jf L ocomot/Ve. /9/03c/9//. Kyy/yy/y/yyy/yyyyyyy yy^^^^^^ i!^y/y////////y//y/^^^^^^ '^ Fig. 64 136 IJAILKOAD OPERATING COSTS of the total tractive force in compound locomotives, while the L. & N. and the M. & 0. have no power units other than single expansion locomotives. The performance on these roads for the year 1911 was: Tons Fuel Per Loco. Repairs Per Tractive Mile Tractive Mile N. C. &St. L.. 2.48 $2.72 ^' & N 2.71 3.02 M- & 3.03 2.94 As has been previously mentioned, it is impractical to make deductions from the performances just mentioned, due to the small percentage of compound locomo- tives and the other factors affecting fuel consumption. The New York Central, for example, has approximately 5 per cent, of the total tractive force in compound locomotives, though it is not improbable that the use of superheaters has been an important factor in obtaining an average of 2.06 tons of fuel per tractive mile in 1911. This performance is the lowest of any of the railroads shown in Figs. 60 and 61 and considerably lower than other railroads similarly situated. Unfortunately the railroads are not required to make a report of locomotives equipped with superheaters, and in the absence of such information it is impossible to determine the influence of their use upon the fuel records illustrated in Figs. 60 and 61, and this analysis must be left until such information becomes available. Tests of superheaters on various railroads seem to indicate the fuel economy through their use on single expansion locomotives is almost equal to that secured through the use of compound locomotives, as compared with those of single expan- sion. Since the use of superheated steam, in place of saturated, is productive of substantial economy in single expansion locomotives, it would appear that similar additional fuel economy is possible through its use on compound locomotives. As previously stated, an analysis of fuel performance on any railroad must necessarily consider the physical characteristics, operating conditions, especially as regards speed, volume and character of traffic, variation in quality of fuel and all influencing and contingent factors. In order to permit a more extensive study provision should be made for the various railroads to furnish additional information. This should include the heat value of the fuel, the maintenance, mileage and fuel consumption of compound and single expansion locomotives, separately reported. The necessary information should also be on file to permit a thorough analysis of the influence of superheaters on the fuel consumption and operating cost. Notwithstanding the lack of details in the performance of the various roads, it is apparent from the studies herewith presented that the fuel consumption per tractive mile is extremely favorable to compound locomotives, without increase in maintenance sufficient to prohibit their use. The average fuel consumption on all the railroads in the United States during the year 1911 was 2.63 tons per tractive mile. Compared with this is the per- formance of the M. St. P. & S. S. M. with 39 per cent, compound locomotives and 2.08 tons per tractive mile, the Michigan Central with 21 per cent, compounds and FUEL 137 2.24 tons and the N. C. & St. L. with 6 per cent, compounds and 2.48 tons, all of which tends to indicate that if all of the locomotives were of the compound type an average performance of 1.60 tons per tractive mile should have been attained. Such a performance would mean a saving of one hundred million dollars ($100,000,000) per year. With such data available as has been presented herewith, the question arises as to why railroad managers have not paid more attention to the matter of com- pound locomotives, and in this connection it may be well to enumerate some of the reasons therefore. The first, as has been pointed out throughout this treatise, is the absence in the past of adequate comparative units of operating costs and performance. The con- tinuance of this condition has resulted in erroneous conclusions and caused false standards to be built up in railroad operation, and these studies serve to further emphasize the necessity of a decided improvement in existing methods. Second, the manner in which the compound locomotives were first introduced on American railways. The rational course to pursue in the development of any mechanical device is to first build a small number for experimental purposes, subject them to thorough tests under all probable operating conditions, locate the imperfections and then make the necessary corrections. Such, however, is not the history of the compound locomotives on American railways. Foreign railroads have long used compound locomotives and have made a success of this principle — due in a large measure to excellence of design, developed by persistent efforts to locate and remedy all defects. American builders would have done well to have used these principles, but not so — their early efforts to apply the compound principle resulted in design without mechanical refinement. While such a condition was to be expected in so radical departure as the change from the single expansion to the compound type, apparently no effort was made to detect and elim- inate the imperfections. As the result of the persistent efforts of accomplished locomotive salesmen, many railroad operating officials were persuaded to place in service large numbers of the compound locomotives of abortive design, leaving the responsibility and ex- pense of the development and improvement to be borne by the railroads. This resulted in high maintenance costs, excessive time out of service and ex- tensive delays to transportation. This latter feature w^as so noticeable as to attract the attention of those officials who direct the handling of trains and prejudiced their opinion as to the value of compound locomotives as power units. Many railroad officials found it advisable to convert their compound locomo- tives back to the single expansion type. This not only resulted in an enormous expense, but flooded the already overcrowded repair shops with unnecessary work and was so extensive as to excite unfavorable comment among the employes, from whose ranks supervising officers were later secured and resulted in an everlasting prejudice against the compound locomotive. It is therefore no surprise that the costly experiments with the early designs of compound locomotives served to prejudice railroad officials against their use and II! 138 RAILROAD OPERATING COSTS place a stigma upon any locomotive in which the compounding principle was in- corporated which will be difficult to remove. Another probable reason is due to the somewhat peculiar division of responsi- bilities in railroad organization— the mechanical department is responsible for the cost of locomotive maintenance, while the transportation department is responsible for the cost of locomotive fuel. Certain units with respect to fuel consumption and locomotive repairs having been established, even though on an erroneous basis, are adhered to and variations in departmental expenses are very closely watched. Mechanical department officials being held to account for the maintenance costs, without due regard being given to performance, would naturally hesitate to recom- mend any change in motive power design if there is any possibility of increased ex- pense in their department. It is possible therefore that mechanical officials have hesitated in incurring the criticism of their superior officers, and have preferred to continue the use of single expansion locomotives to avoid increasing expenses for which they would be held directly responsible. A further reason may be ultra-conservatism of the railroad officials, which has become evident from time to time, and particularly when any changes in the existing order of things are proposed. In the liaihvay Age Gazette, under date of November .24, 1911, Mr. I. C. Fritch, Chief Engineer, Chicago Great Western, pointed out that considerable econ- omy might be effected in the use of fuel, from which article the following extracts are taken : FUEL 139 ur 'The very nature of the transportation industry, by virtue of its operations being scattered over extensive area, affords formidable opportunity of waste and extravagance, which in other branches of industrial activity may be more fully controlled and regulated because of the possibility of supervising more closely their various operations, and thereby reducing waste and extravagance to a minimum. "True economy does not mean niggardness, hut it does mean the best for the purpose designed ; the best brains in the employe, the best tools in the shop, the best equipment and roadways on railroads, and above all, an organization which possess all of these in proper proportion and commensurate with its needs. "The losses incurred in the use of fuel on railways may be classified in two parts: First, those due to the limitations imposed upon the locomotive boiler plant, causing thereby certain defects resulting in incomplete combustion and lack of full utilization of the total heat units in the fuel. Many of the defects or deficiencies may be overcome, and some of them are in gradual process of elimination or improvement. "Second, the losses due to carelessness or inefficiency of the human ele- ment in firing fuel on locomotives. Much of this loss, if not all, may be elim- inated by this process of education of firemen in proper methods of firing and co-operation on the part of the engineer in so working the locomotive that fuel will be fired at the proper time and the fuel utilization of heat units effected in the evaporation of water and the generation of steam. "While, of course, 100 per cent, efficiency in this expenditure is not and never will be a possibility, there is reason to assume from the foregoing analysis that from 20 per cent, to 25 per cent, of the losses now incurred may be elimi- nated, effecting a saving of from $40,000,000 to $50,000,000 per annum." Since the above letter was published various articles have appeared in which railroad officials have endeavored to controvert Mr. Fritch's statement that an annual saving of $50,000,000 is possible in the fuel expenses. One of particular note by J. F. Sugrue, Assistant Superintendent, Houston & Texas Central R. R., appeared in the Railway Age Gazette of February 16, 1912, from which the following self-explanatory quotations are taken : "Economy has been carried to such an extreme on railways that it is posi- tively dangerous to economize further, "Other theorists point to heavy losses in fuel consumption, and we all know that there are losses. The subject has had more study, perhaps, from the economy standpoint than any other. Every method known to theory or prac- tice has been tried, even to reburning the smoke, and after all nothing better has been found than an intelligent fireman, who takes advantage of the particu- lar conditions met with in different trains, engines, coals, grades and weather, that he may find necessary to know in order to get the best results. This knowledge he must gain by actual experience and practice. "Practically all roads are using or have tried every means known to science, theory and practice to reduce their fuel expense, and there are few who have not in their service the best informed men that can be found, whose sole duty it is to reduce fuel consumption. In the article by Mr. Fritch results of a very satisfactory fuel test are shown, but it does not follow that the same results could be obtained in ordinary practice, nor that there was a real saving in dol- lars and cents in the actual test. "Railways practice every economy that they have been able to devise that will save money. The practice of economy at any cost is an entirely different matter." These statements from a man occupying a high position in railroad circles is of particular note, in conjunction with the data in the foregoing pages with refer- ence to the compound locomotives. They are of especial interest when it is consid- ered that the motive power on the railroad he represents consists entirely of single expansion locomotives with an average fuel consumption for 1911 of 3.08 tons per tractive mile. It is also worthy of mention that the annual expenditure for fuel on the Hous- ton & Texas Central constitutes 16.2 per cent, of the total operating expenses and absorbs 12.1 per cent, of the total gross earnings, while locomotive maintenance for 1911 was 5.5 per cent, of the operating expenses and equivalent to 4.1 per cent, of the gross earnings. If the fuel consumption was reduced to 2 tons per tractive mile the reduction in fuel costs would be greater than the total expenditure for loco- motive maintenance during the year 1911. As previously stated, it is probable this ultra-conservatism on the part of the majority of railroad operating officials, coupled with the absence of proper com- 140 RAILROAD OPERATING COSTS parative standards, has prevented the more extensive use of compound locomotives with their attendant saving in fuel consumption. While compounding and superheating are advantageous in securing results, they are by no means tlie only sources through which economy may be secured. To show further possibilities in this respect the following extracts are taken from a paper on "Locomotive Drafting and Its Relation to Fuel Consumption," presented at the annual meeting of tlie International Railway Fuel Association. "The method of drafting a locomotive has varied but very little since the introduction of the multi-tubular locomotive boiler by Segium in 1829. "The art of making an engine a good steamer, if it may be properly termed an art, consist* largely in haphazard, cut-and-try methods. "The simplest and most effective way to increase the draft and produce a good steaming engine is to reduce the size of the exhaust nozzle. Although this method of securing increased draft is easily understood by men directly charged with getting the locomotive in operating condition, yet few realize the tremendous tax such an arrangement has upon the effective power of the engine. "Drafting a locomotive is accomplished at the loss of considerable energy. The source of power is the exhaust steam from the cylinders and the useful work accomplished is represented by the volume of furnace gases which are delivered against the differences in pressure existing between the atmosphere and the smoke-box. In order that the power of the jet may be sufficient, it is necessary that the engine of a locomotive should exhaust against a back pressure. The presence of the back pressure tends to decrease the cylinder performance and thus decrease the available power of the locomotive. "The actual horsepower utilized producing a draft in any given class of locomotive is taken as the horsepower, due to the back pressure in the cylinders. This back pressure horsepower is not entirely chargeable to the production of draft because of the impossibility of operating non-condensing engines without at least three or four pounds of back pressure, though a greater part of the power thus expended is used in producing draft alone. "As this back pressure is acting against the piston, it can be computed as actual horsepower developed but not utilized. When computed in this manner this horsepower is found to amount to from 10 per cent, of the total available power of the engine at low speeds to over 50 per cent, of the total available power at high speeds. "This condition holds true with both ordinary freight and passenger en- gines, but for Mallet engines the losses are much greater. "If other means could be provided to draw the necessary volume of gases through the boiler for the same rate of combustion possible with a steam jet, at an expenditure of power somewhere near the calculated power to draw the gases through the boiler, a tremendous saving in power would be accomplished. The power thus saved could be utilized in useful work, either as increased speed or as a direct saving in fuel consumption." From the data submitted, the available power above requirements to produce the necessary draft in single expansion locomotives averages 58 per cent, of the FUEL 141 dynamometer horsepower developed at a speed of 60 miles per hour. In compound passenger locomotives at the same speed this available horsepower above the require- ments was 107 per cent, of the dynamometer horsepower. In single expansion freight locomotives, the additional horsepower available at a speed of 25 miles per hour is 20 per cent, of the power developed, and at the same speed in the compound freight locomotive the additional horsepower is 35 per cent, of the power developed. In the Mallet compound locomotive, at a speed of 25 miles per hour, the addi- tional power available amounts to 85 per cent, of the total developed, indicating that the percentage would be much higher at faster speeds. Since any increase in the dynamometer horsepower of a locomotive is a net gain, the possibilities of improving the efficiency of locomotives is very apparent. As many locomotives cannot start a larger train than now handled, the increase in horsepower at regular speed would result in the present power being developed with less fuel consumption. This possible saving in fuel consumption reduced to percentages is as follows: Single expansion passenger locomotives S6fo Single expansion freight locomotives 17 Compound passenger locomotives 52 Compound freight locomotives 26 Mallet compound freight locomotives 46 These figures indicate very clearly the percentage of power wasted and the at- tendant loss of fuel due to the use of the exhaust in the production of draft The designers of stationary power plants have, during the past few years, developed mechanical drafting through the use of fans which permits the intensity of the draft to vary according to the requirements of the furnace. The published data covering the performance of this apparatus are such as to appear that similar devices could be made applicable for locomotive service and the possible economies are sufficient to warrant extensive experiment. In the foregoing tabulation showing the saving in fuel consumption which can be effected through the elimination of back pressure in the cylinders of a loco- motive, particular attention is directed to the possibilities of greater increase in power in compounds over those of the single expansion type. Since the fuel economy of compound locomotives of the present design as com- pared with single expansion locomotives has been demonstrated, it is evident that the value of compounds will be further augmented by the proposed change in design. As indicated previously in this study, a saving of $100,000,000 in the annual expenditure for fuel is possible by the substitution of compounds in place of single expansion locomotives. It follows that our estimate will have to be substantially increased. The value of Mallet type locomotives in reducing maintenance, fuel and other operating costs per ton mile has been clearly established, both in helper and road service, though they have been generally regarded as being only suitable for low- 142 RAILROAD OPERATING COSTS speed service. Since it has been demonstrated tliat the back pressure and not machine friction prevents the use of Mallets in fast service, the necessity of over- coming the difficulty is evident. The steadily increasing tonnage to be handled and the necessity of reduction in the cost of operation has resulted in a substantial increase in the weight of trains and a consequent increase in the size of the locomotive. The Mallet type represents the latest development and all indications point to this design, replacing all others in freight service. Similar conditions to those which have made the Mallet locomotive necessary in freight service are rapidly becoming evident in passenger service, as the latest design of passenger locomotive has nearly reached the limitations of size for a single unit. This is particularly in evidence in the number of fast passenger trains that now require two locomotives to enable a slight delay in the regular schedule to be overcome before reaching the terminal. The logical conclusion is the adaptation of the Mallet type of locomotive for passenger service, as the weight of trains is steadily increasing and faster schedules are necessary to meet the demands of the service. The power now developed by a Mallet locomotive at 25 miles per hour could be secured with 46 per cent, less fuel consumption by proper drafting and this saving would be proportionately greater at higher speeds. Through the alterations which are necessary in the drafting of a locomotive, the power now wasted in the back pressure can be converted into useful work and the Mallet type locomotive will be available for both freight and passenger service with substantial reduction in the cost of transportation, particularly in fuel. It would therefore seem, after careful consideration, the way is pointed where an additional $50,000,000 saving can be effected in the annual expenditure for locomotive fuel. The estimate of Mr. Fritch of a possible fuel economy of $40,000,000 to $50,000,000, a})pears to be far too low as the possible figure is approx- imately three times that amount. An annual saving of $150,000,000 is equivalent to a 5 per cent, profit on an investment of three billions of dollars ($3,000,000,000), a sum equal to more than the total capitalization of the New York Central, Pennsylvania, the Southern Pacific and their subsidiary companies. The cost covering the application of such apparatus as is necessary to produce the required draft and prevent this present loss in fuel consumption is not available. Its application to existing locomotives would probably require considerable expense. In the building of new locomotives the expenditure involved would be com- paratively slight and as the number of new locomotives built annually is about 15 per cent, of the total in service it is evident that the major portion of the possible economy could be secured in a relatively short time. The writer holds no brief in the interests of compound locomotives, nor in any of the various fuel-saving devices. Neither does he wish to appear as an advo- cate of any particular policy of railroad operation. This research has been made, not as an accountant in verifying the accuracy of recorded data, but in the broader sense of accounting as an auditor, who reviews and analyzes a condition as reflected by the figures submitted. FUEL 143 No one individual can conceive, direct and execute unaided the task suggested in the foregoing pages. To conduct such a work to a successful conclusion will re- quire the united efforts of all railroad officials whose duties in any manner affect the sum total. This study is a plea to the operaling officials of American railways, that a closer and more unprejudiced research should be given to the relative advantages of any type of locomotives or any devices which have demonstrated the results of actual economies in their performance. When one considers the possible saving and that the fuel supply of the country is unrenewable and that the cost of fuel per unit must increase rather than decrease, it seems proper to urge that every effort be made to cause the unit of coal to produce a larger unit of performance. The day has passed when haphazard methods should be tolerated in any busi- ness. Each department of every industry must be operated at the highest efficiency and tradition must give way to the logic of proven results. Note. — Since this article has been written it is gratifying to note in the report of the performance of the test locomotive, 50,000, built by the American Locomotive Co., for experimental purposes the following comments: "It saves 28 per cent, in fuel as compared with another Pacific type loco- motive of equal weight and conventional design. "Compared with a Pacific type equipped with the same fuel-saving devices, though not developed to the same degree of efficiency, it shows 13 per cent, average economy in fuel. "These are records from more than one test on different roads." It is also interesting to read in the Railway Age Gazette of April 5, 1912, under the title of "Mallet Results in Road Service," referring to the performance of loco- motives of this type on the Chesapeake & Ohio, as compared with the single expan- sion locomotives as follows : "Because of the fuel economy obtained with the superheater and brick arch in combination with compound cylinders, the Mallets save 43 per cent, in coal per ton mile as compared with the consolidations. This means that a Mallet will burn no more coal than a consolidation in doing 75 per cent, more work; in other words, the fireman's work on the Mallet is no harder and on the average is probably lighter than formerly on the consolidation. In addition to these important results, 70 per cent, more traffic could be handled with the existing track facilities in case of necessity if Mallets are used without exceeding the number of consolidation locomotives formerly required. "The reduction of over 5 cents per 1,000 ton-miles in the cost of operation becomes impressive when it is considered that on the basis of the present yearly traffic of the Hinton division alone this means a net saving, all factors consid- ered, equal to the interest on $1,500,000 of 5 per cent, bonds. • > a • » • 144 RAILROAD OPERATING COSTS "The accompanying itemized comparisons of the cost of operation of the two classes of locomotive deserves careful analysis. It is prepared from actual records, permitting of fair and just comparison and covers a period of 8 months, beginning with the installation of the second order of 24 Mallets, and includes all items of cost of operation except classified repairs. The item "maintenance" in each case includes only running repairs, as none of the Mallets have as yet received general repairs. Records from other roads, however, which have had the American Locomotive Company's Mallet in service for a sufficient length of time to determine the cost of classified repairs, as compared with the locomo- tives which they have replaced, show that while the cost per locomotive is higher the cost per ton mile is less." Cost per 1,000 Ton-Miles of Mallets and Consolidations in Road Service. Cost Per 1000 Ton-Miles Mallet Consolidation Fuel $0.0285 $0.05 Wages, engine crew 034 . 047 Wages, train crew 031 .054 Maintenance (running repairs only)... .0001 .0009 Enginehouse expense 0002 .00015 Supplies 00009 .00006 Total $0,095 $0,152 Decrease due to use of Mallets 057 "From this experience, Mr. Walsh says,- 'From every point of view we con- sider the Mallet engines a success.' " It would appear in view of the statement of 43 per cent, saving in fuel per ton- mile as compared with the single consolidations that the arguments set forth in the preceding pages of this chapter are in a fair way to be substantiated. « • • « • •* « t > *« • . - • * • Date Due I I NEH APR 1 31994 M5H 0I3<^S ^flliiB!lV,'''VERS.TY .{r'BRARIEs 0041407679 / a^s^o? 17 19^ DEC 19 1935 END OF TITLE