mileage operated by these companies was about 39,000 miles, representing a capitalization of upwards of $2,500,000,000, or 25 per cent. of the total railway capital of the country. Eighty per cent. of the mileage, and 79 per cent. of the capitalization is accounted for by 28 of the more important of such roads, the balance of the number being largely made up of small less important lines. While the financial depression has been a factor in bringing about the embarrassment of railways, it is believed that many of the receiverships were the natural sequence of mismanagement, over-capitalization, and ill-advised projections. Although the traffic has largely decreased during the year, the rates have also declined, showing that there has been unusual competition for the decreased traffic. It is possible that a large amount of competitive traffic has been handled at a loss to the railways. It is believed that had reasonable rates been maintained, the revenue from the traffic would have been more nearly adequate to meet the fixed charges of the road, and the extent of the financial disaster much less. STATISTICS OF RAILWAYS. The Commission includes in its report statistics of railways for the year ending June 30, 1893. On that date there were 176,461.07 miles of line in the United States, being an increase during the year of 4,897.55 miles. The number of railway corporations was 1,890, being an increase of 68 over the previous year. Of these, 939 maintained operating accounts, and 778 were subsidiary lines, or parts of larger systems, of which 326 were leased for fixed money rental, 195 for a contingent money rental, the remainder being operated under some other form of traffic agreement. The tendency toward consolidation is shown. by the fact that 28 roads were merged, 20 roads were reorganized, and 16 roads consolidated into other systems. There were 42 operating companies having a mileage in excess of 1,000 miles. The capitalization of the roads reporting was $10,506,235,410, equivalent to $63,421 per mile of line. The number of passengers carried was 593,560,612, and the number of tons of freight carried was 745,119,482. The gross earnings were $1,220,751,874, the operating expenses $827,921,299, leaving net earnings of $392,830,575, which is equivalent to $2,314 per mile of line. Adding to this the income from other sources to the amount of $149,649,615, gives as the amount available for the payment of fixed charges and dividends, $542,482,190. From this there were paid $431,422,126 as fixed charges; dividends and other payments from net income, to the amount of $102,941,289, leaving a surplus of $8,116,745. The number of employees was 873,602, being an increase over the previous year of 52,187. The number of employees killed was 2,727, an increase of 173, and the number injured was 31,728, an increase of 3,462. The number of passengers killed was 299, being a decrease of 77; the number injured was 3,229, being an increase of only 2 over the previous year. Urgent recommendation is made for an amendment to the law, providing a penalty for the failure of carriers to file their reports as required by the act. Remissness in filing such reports at present results in delay in the compilation and publication of statistics. A preliminary income account, covering reports filed for the year ending June 30, 1894, will also form a part of an appendix to the report, figures in detail for which will be given hereafter. SAFETY APPLIANCES ON RAILWAY EQUIPMENT. The Commission calls further attention to the legislative enactment requiring the application of automatic couplers and other appliances on the locomotives and cars of the railways, and gives figures showing to what extent equipment had been fitted with such appliances up to June 30, 1893. It is stated that all new cars ordered by the railways are being supplied with automatic couplers and a large proportion with air-brakes. The accidents of the year show little decrease on account of the use of automatic couplers, and such a result is not expected until more uniformity in such appliances has been attained. RECAPITULATION OF RECOMMENDATIONS FOR AMENDMENTS TO THE STATUTE. 1. That power be conferred upon the Commission to prescribe minimum as well as maximum rates. 2. That section three of the statute be amended so as to provide a procedure for the establishment of through routes and through rates similar to that outlined on pages — of this report. 3. That the Commission be directed to prescribe a uniform classification for freights and change the same from time to time as, after investigation, may appear necessary, and that the carriers be required by suitable provision to conform to such classification. 4. That for the purpose of preventing overcharges and undercharges for inter-state transportation, the Act be amended so as to connect the contract of shipment and its performance by the carriers with their duty to charge or receive only such rates as have been put in force according to law, and a provision similar to that set forth on pages-of this report is suggested. 5. That the procedure provided in the statute for enforcement of orders of the Commission be amended as suggested in former reports. 6. That mutilation, destruction or removal of any tariff or schedule of rates, fares or charges, posted by any carrier subject to the statute as in force over its line be made a misdemeanor, punishable by suitable fine. 7. That corporations subject to the Act be made liable to indictment for offenses against the statute; and that the present provisions subjecting individuals engaged in railway service to punishment by fine or imprisonment for prohibited acts be retained, but that shippers, consignees, and individuals not connected with railway employment be relieved from liability to fine and inprisonment under section 10, except for such fraudulent acts as false billing, false classification, false weighing, false representation of the contents of its package or false report of weight. 8. That a law be enacted allowing appeals or writs of error on behalf of the Government in penal cases which involve construction of the Constitution of the United States, or in which a demurrer to the indictment has been sustained or motion in arrest of judgment granted. 9. That the word "line," when used in the act, shall be construed to be a physical line, not a business arrangement, and the words "any common carrier," as used in the act, shall be construed to mean one or more than one common carrier as in the application of the law may appear to be required. 10. That any amendment of the fifth section or anti-pooling clause of the law shall be in accordance with the suggestionsand recommendations stated under the head of "Pooling of Freights and Divisions of Earnings" in this report. 11. That the provisions of the act be made to apply to all transportation of inter-state commerce over rail or rail and water lines, and to all common carriers, corporations, companies, firms and persons in anywise engaged in such trausportation, or owning lines, cars, yards, or properties used in connection therewith. 12. That section 20 of the act be amended so as to fix the time within which carriers, corporations, companies or persons subject to its provisions shall make and file annual reports with the Commission, and a money penalty for failure to file such report within the time prescribed, and also provide for the enforcement and collection of such penalty; that this section be further amended so as to require such reports to be verified by oath before an officer therein specially authorized to administer such oath, and that any person making oath to any false statement in any such report shall be liable to indictment and conviction for perjury. In addition to the recommendations for amendment above specified, attention is respectfully called to the various considerations set forth in the body of this report as demonstrating the necessity for legislative action. We also beg to refer to the suggestions herein made in regard to legislation authorizing the Commission to investigate threatened labor contests on railways, and to require annual reports from various companies whose business is closely related to that of transportation. INDEX. Accidents, reported for year 1894, Table No. 9 xxxiv, xxxvi iii, x, xii, xxi, xxv, xxxi, xxxiv, 1, 155 Anderson, Rev. W. H. vs. L. & N. R. R. Co., Complaint 66, 155 Assessment of railroad property made by Commission for the year 1893 and XXV 51 3 49 31 26 9 2, 16, 53, 57 49 54 46 9, 56 35 52 9 29, 36, 48 15, 22, 35, 55, |