Chapter VIII: Appendix: Exhibit A

[Form 2601.]

There are on file in the Post Office Department one hundred and two separate statements showing, for the month of November as to each mail route on the Burlington system, the space occupied and used for mail and for express and for passengers.

In order to make a comparison it was, of course, necessary to reduce each item of space used in each car to a common basis of feet, and the following table shows what are the actual facilities furnished in passenger trains for the three classes of traffic reduced to linear car-foot space:

_Car Foot Mileage._

_Mail._ _Passengers._ _Express._
62,246,130 428,164,920 39,525,540
(11.75%) (80.8%) (7.45%)

_Exhibit B._

[Form 2602.]

_Station Facilities Furnished for the Mails and Express and the Value of Other Items of Service Rendered._

_Mail Expense._

Monthly Cost of Handling Mail at Stations,
labor, etc. $14,241.67
Monthly rental value of mail rooms in stations 1,008.61
Monthly rental value of tracks occupied by mail cars
for advance distribution 157.69
Cost of lighting and heating mail cars for advance
distribution 114.25
Value of 309,827 miles of free transportation to post
office employees, not including postal clerks in
charge of mail 6,196.54
Switching mail cars for advance distribution 2,795.80
----------
Total for November $24,514.56

The foregoing does not include the rental value of space furnished by the railroad company to the Government for handling mails and mail trucks on station platforms, and for storing the mails on platforms at large terminals. This is a large item, but statistics of such space used were not called for. At Chicago Station platform space to the amount of over 6,500 square feet is devoted exclusively to mails handled by the Burlington and Pennsylvania.

In addition to the foregoing, the Burlington Company transported on its trains during November postal clerks in charge of mail for the Government a distance of 3,109,747 miles in the aggregate.

If the Government had paid their fare at two cents per mile the amount paid would have been $62,174.94.

These items of station facilities and other service rendered to the Government for the mails amounted to $86,689 for November, or at the rate of more than one million dollars annually.

_Express Expense._

Rental value of space in station buildings used for
express, for which no rent is paid $488.68
Rental value of tracks used for advance loading
of express 191.11
Value of 42,298 miles of free transportation to
Express Company officials and employees at two
cents per mile. 885.96
---------
$1,565.75

In addition to the foregoing, the agents and employees of the railroad company in the month of November rendered service at stations in handling express and in other ways for the Express Company to the amount of $10,274, but the Express Company paid to the same persons $14,538 in commissions.

The Express Company also shared in the salaries paid to certain baggage men and other joint train employees in November to the amount of $7,480, in addition to the payment of commissions, as aforesaid.

All the items of expense to the railroad company on account of the express in the way of space furnished and free transportation to employees, and services of station agents, amount to $11,840, while the cash payments by the Express Company to the railroad Company indirectly, through payments in commissions to station agents and the salaries of baggage men amounts to $22,018, a pecuniary gain or income from express of $10,178 per month, or at the rate of $124,136 annually, compared with a large outgo annually on account of the mails as shown in the foregoing items.

_Exhibit C._

[Form 2603.]

_Revenues and Expenses and Train and Car Mileage._

_Revenues._

Receipts in November from all passenger traffic
(not including Mail and Express) $1,859,839
Receipts from Express 187,825
Receipts from Mails 194,435
----------
Total $2,242,099

_Expenses._

Total Operating Expenses of the road for November $5,452,830
Passenger Operating Expenses, and one-twelfth
of the taxes and one-twelfth of the interest
on the funded debt $2,365,521

The passenger operating expenses are distributed as follows:

_Assignable Expenses._

Transportation Expense $454,208
Fuel passenger engines $132,709
Salaries passenger engineers 100,511
Salaries passenger trainmen 87,557
Train supplies, etc. 55,664
Injuries to persons 19,904
Station employees 17,160
Joint yards and terminals 15,610
Miscellaneous 25,093
--------
Maintenance of Equipment $107,626
Repairs, passenger cars $67,650
Depreciation, passenger cars 39,639
Miscellaneous 337
--------
Traffic Expense $48,971
Advertising $17,249
Outside agencies 16,673
Superintendence 10,272
Miscellaneous 4,777
--------
Maintenance of Way, etc. $12,970
Buildings and grounds $7,053
Joint tracks, etc. 4,440
Miscellaneous 1,477
--------
General Expense $13,580
Salaries, clerks, etc $8,994
Insurance 2,478
Legal expense 1,153
Miscellaneous 955
-------- --------
Total $637,355

_Proportion of Non-Assignable Expenses._

Operating Expenses $1,278,016
Taxes and Interest 450,150
----------
$1,728,166
-------------
Total $2,365,521

Exhibit A shows that the entire space in all cars run on passenger trains on the Burlington in November was divided as follows:

Passengers occupied 80.8 % of the space.
Mail 11.75% of the space.
Express 7.45% of the space.

If each of these three classes of traffic had contributed earnings and paid expenses in proportion to the space occupied by it, the result in comparative profit or loss to the company would have been as follows:

_Comparative Profit and Loss._

_Earnings._ _Expenses._ _Profit._ _Loss._
Passengers $1,859,839 $1,911,341 $51,502
Mail 194,435 277,949 83,514
Express 187,825 176,231 $11,594
---------- ----------
$2,242,099 $2,365,521

If the Government had paid to the Burlington Company for carrying the mails 11.75% of the actual cost of doing the work, and a proportion of the taxes and interest on the funded debt, it would, for November, have paid $83,514 more than was paid, indicating that for the year the Government is paying $1,002,168 less than the actual fair cost of the service it is receiving.

_Exhibit D._

[Form 2605.]

_Statement of Mail Cars and Apartment Cars._

_Postal Cars._

_Original _Present
_Number Average Average
_Kind of Car_ Owned_ Cost_ Value_
60 feet or more in length 49 $5,176.00 $4,669.84
50 to 59 feet in length 10 4,116.00 2,595.70
Less than 50 feet in length 17 2,555.00 2,094.41
-- --------- ---------
Total 76 $4,451.00 $3,820.84

_Apartment Cars._

_Original _Present
_Number Average Average
_Kind of Car_ Owned_ Cost_ Value_
Cars with mail apartments 30 feet
or more in length 27 $3,888.00 $2,112.78
Cars with mail apartments 25 to
29 feet in length 21 3,660.00 2,004.95
Cars with mail apartments 20 to
24 feet in length 22 3,292.00 1,810.50
Cars with mail apartments less
than 20 feet in length 31 3,106.00 1,729.35
--- --------- ---------
Total 104 $3,460.00 $1,901.71

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