Chapter I

THE HISTORY OF TRANSPORTATION IN THE
UNITED STATES

Significance of geographical factors, 1.--Toll roads before
1820, 2.--The "National pike," 3.--Canals and internal
waterways before 1830, 4.--The Erie Canal, 4.--Canals
in the West, 6.--First railroad construction after
1830, 7.--Early development in the South, 9.--Importance of
small rivers, 10.

The decade 1840-1860, 11.--Slow railway growth, mainly
in the East, 12.--Rapid expansion 1848-1857;
western river traffic, 13.--Need of north and south
railways, 14.--Traffic still mainly local, 15.--Effect
of the Civil War, 16.--Rise of New York, 17.--Primitive
methods, 17.

The decade 1870-1880, 18.--Trans-Mississippi
development, 18.--Pacific Coast routes
opened, 19.--Development of export trade in grain and
beef, 20.--Trunk line rate wars, 21.--Improvements in
operation, 23.--End of canal and river traffic, 24.

The decade 1880-1890, 27.--Phenomenal railway
expansion, 28.--Transcontinental trade, 28.--Speculation
rampant, 29.--Growth of western manufactures, 30.--Rise of
the Gulf ports, 31.--Canadian competition, 33.--General
résumé and forecast, 34.

Public land grants, 35.--Direct financial
assistance, 37.--History of state aid, 39.--Federal
experience with transcontinental roads, 40.

CHAPTER II
THE THEORY OF RAILROAD RATES

Analysis of railroad expenditures, 44.--Constant v.
variable outlays, 45.--Fixed charges, 46.--Official
grouping of expenses, 46.--Variable expenses in each
group, 51.--Peculiarities of different roads and
circumstances, 56.--Periodicity of expenditures, 61.--Joint
cost, 67.--Separation of passenger and freight business, 68.

CHAPTER III
THE THEORY OF RAILROAD RATES (_Continued_)

The law of increasing returns, 71.--Applied to
declining traffic, 73.--Illustrated by the panic of
1907, 75.--Peculiarly intensified on railroads, 76.

Growth of mileage and traffic in the United States since
1889, 77.--Increase of earnings, 79.--Operating expenses,
gross and net income, 80.--Comparison with earlier
decades, 85.--Density of traffic, 86.--Increase of train
loads, 88.--Limitations upon their economy, 92.--Heavier
rails, 93.--Larger locomotives, 94.--Bigger cars, 95.--Net
result of improvements upon efficiency and earning
power, 97.

The law of increasing returns due to financial rather than
operating factors, 99.

CHAPTER IV

RATE MAKING IN PRACTICE

Evolution of rate sheets, 101.--Terminal v. haulage
costs, 102.--Local competition, 104.--What the traffic
will bear, 107.--Trunk line rate system, 111.--Complexity
of rate structure, 113.--Competition of
routes, 114.--Competition of facilities, 116.--Competition
of markets, 118.--Ever-widening markets, 119.--Primary and
secondary market competition, 121.--Jobbing or distributive
business, 124.--Flat rates, 127.--Mississippi-Missouri
rate scheme, 128.--Relation between raw materials
and finished products, 134.--Export rates on
wheat and flour, 135.--Cattle and packing-house
products, 139.--Refrigerator cars, 140.--By-products
and substitution, 142.--Kansas corn and Minnesota
flour, 143.--Ex-Lake grain rates, 145.