The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1898-10-09
PASSENGERS PAY THE PROFIT.
u Freight business Pays the Running
Expenses of American Railroads.

The Freight business Pays the Running
Expenses of American Railroads.
The gross earnings of American rail-
reads from freight are substantially
the same as the running expenses.
There are I'm this country at present
nearly 200, 900 miles of railroad, and the
operating expenses are abou $500, 900. =
600 a year. The freight receipts are
substantially the same-$SO0. 900. 900 a
year. When times are good, CONNER
cial operations are extensive, business
IL brisk. and the demands for transpor-
tation facilities are many the freight
receipts of American railroads increase.
n along with them there are in
creases i'm the expenses of operation.
which usually keep pace When bust
ness interests languish and freight re-
ceipts fall OF there is usually a CORE
spending reduction in operating ex-
penses, so that IL may be said tina the
running expenses of American railroads
generally are paid from freight receipts
and the other items Of revenue, pas
senger receipts chiefly and mail re-
ceipts to "A minor extent. pay the in
terest on bonds. the dividends and the
p~rofits-where there are any.
1t nay be said generally that the
railroad having a large m steady pas
senger business Is, other things being
equal. a paying road, whereas a rail-
road. the business of which is chiefly
freight. is, other things being equal, not
a source of profit. There are very few
railroads in the. United States which
have larger earnings from passengers
than from freight. One such road is
the New York. New Haven e. Hart
ford. which. by the last official report.
took In $500. 900 more last year from
passengers than from freight. and the
New Haven railroad is known general
ly as one of the most substantial roads
in the country. Passenger business on
American railroads Is much less easily
handled than freight. requiring con-
stantly not only new disbursements,
but outside expenses as well. Passen-
gers on American railroads have come
TO expect not only good but the best
service. They require, too. the highest
rate of speed compatible with safety,
and as much and as good attention as
they could secure in a first-class hotel.
Moreover, the competition among
American railroads on the chief lines
of travel is such that liberal advertise
ing is necessary to direct public atten-
tion to the benefits offered. The ques-
ton is sometimes asked why il Is that
such vigorous efforts are made by rail-
o to develop the passen-
ger business in preference to freight
traffic. but the explanation is to be
iounu III tne TACT mai Nnlie the rev.
enues from the former are usually regu-
lated by the volume Of business, the
passenger receipts are regulated gener-
ally by the character of the service Of
fered. independent Of the conditions of
business. Necessarily a railroad. to en-
JOY a large measure of passenger BUSH
ness. must be i'm very good physical
condition. and for this reason some of
the poorer roads are unable to compete
sllRRQsgfnllv for naGzanOar fraIa-sh.
trade which pays the profit from oper-
alton OF American railroads. 81 o0. 900
a day on the average.-New York Sun.