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upon its rails and pay the increased per diem. The transportation problem has assumed such acute proportions—notably in the case of coal-that it seems some definite plan should be suggested and worked out which will not only relieve the present very unsatisfactory conditions, but will prevent their recurrence in the future. It is certainly possible to devise some system which will work satisfactorily both to the shipper and to the railroad, and steps looking to this end should be taken at once. It is very evident that one of two things must be true, either there are not sufficient cars and motive power, or the management and distribution of the cars and motive power are most inefficient.

It has been stated that the average freight car works less than one hour and a half per day, and the average locomotive about three hours. Also that a loaded car works but one-fourth of the time after the railroad has received it for transportation. If these statements are true, then it cannot be true that there are not sufficient cars and locomotives for, making each car and locomotive work only a few hours additional per week would prevent the trouble. There is, in many instances, undoubtedly some fault in the system-or, rather, the lack of system-in handling the cars and motive power and, with many railroads, it is a case of mismanagement and not lack of facilities.

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A car once loaded should be permitted to go through to its destination, regardless of distance, or what road it may have to pass. The only excuse for its stoppage being bad condition of the car; arriving at its destination, it should be promptly unloaded by consignee with penalty for not doing so. In the case he has an outstanding order for a car and has an opportunity to reload, he should have the first claim on the car to fill this order, and not be required to return it empty to the delevering road, as is often the case. If he cannot at once reload the car, it should be returned to the road from which he receives it, and if this road cannot use it immediately with a reload, it should be at once started back empty toward the line owning the car, the empty to be used at the first point where it can be reloaded. This could cause a continuous movement of

the cars either as loads or as empties, and instead of the roads having large equipment being imposed upon by the roads not equally well supplied, each road would constantly be receiving empties from the other roads. The railroads as well as the shippers should be penalized for failure to promptly handle the cars, either empty or loaded, and this would necessitate a careful supervision over the use of the cars. When cars are not permitted to continue to their objective point, but are stopped on the way for transfer, it is the first step toward the congestion and delay which usually occur under the present system. In the first place, it requires rehandling of the load and pre-supposes the existence of facilities for such rehandling. In the second place, if the original car is not permitted to continue on its journey it necessitates providing another car to take its place, and when, as is usually the case, cars are scarce at the point of transfer, it necessitates waiting until another car can be provided, regardless of the length of time required to get the other car. In brief, some plan should be adopted by which the cars would be kept busy, both loaded and empty, and work a reasonable part of each twenty-four hours; that cars should be equally interchangeable over any and all roads, being allowed to continue to their destination without transfer except in cases where it is necessary to weigh or inspect, as is often the case in grain shipments.

The subject is a broad one and one which should be handled with a view of getting practical results at the very earliest possible moment. There are a number of measures now pending before Congress seeking to remedy the existing shortage, and as the shippers, the railroads and the law-making powers seem to have fully awakened to the situation it is to be hoped that the evil may be remedied.

ASSESSMENT.

The following is a comparison of the assessment made by the Railroad Commission of the tangible property of all the railroads in the State for the past ten years:

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It will thus be seen that the valuation of the tangible property of all the railroad and bridge companies, as fixed by this board, for taxation. for the year 1906 is $63,902,865.00, an increase over the previous year of $2,752,941.00.

EARNINGS.

From the reports of all the railroads in the State an increase in both gross and net earnings is shown:

The total gross receipts for the year 1905 was
The total net receipts for the year 1905 was
The gross receipts for the year 1906 were
The net receipts for the year 1906 were
The average gross receipts per mile for the year 1906 ..
The average net receipts per mile for the year 1906...

$34,556,447 00

9,754,957 00

39,066,736 00

11,531,092 00

14,057 00

3,346 00

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SUMMARY.

Appendix A contains:

Articles of incorporation.

Appendix B contains:

A synopsis of complaints and the opinions and orders of the Commission therein.

Appendix C contains:

The bill of complaint of the Louisville & Nashville Railroad Company and the Commission's answer thereto. The bills of complaint of the other railroad companies seeking to enjoin the Commission from enforcing its order adopting a Maximum Mileage Scale of Rates, and the Commission's answers thereto, are substantially the same as that in the case of the Louisville & Nashville Railroad Company and are, therefore, not reproduced. Appendix D contains:

The laws defining the powers and duties of the Commission.

We have prepared and append to this report a table containing the names of each railroad operating in the State, the mileage of each, also the capitalization, bonded indebtedness, gross and net receipts, valuation of mileage, and other property, separately, and the total of both. The number of accidents to passengers and employes during the year, showing the number of each killed or injured, which we are glad to report shows a very considerable decrease over that of 1905, being a reduction of 16 employes killed, an increase of 65 employes injured, a decrease of 60 passengers killed and a decrease of 150 passengers injured.

All of which is respectfully submitted,

C. C. MCCHORD, Chairman,

A. T. SILER,

MCD. FERGUSON,

Commissioners.

Appendix "A"

ARTICLES OF INCORPORATION

OF

Steam and Inter-Urban Electric Railroads.

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