1 The 1916 and 1917 figures include switching and terminal companies but do not include Class II or III companies. One would tend to offset the other; the results are fairly comparable.

[Exhibit No. 1, sheet No. 8.]

The units of comparison generally adopted in discussing tendencies of earnings of railroads have been the mile of line and the train-mile.

The following table shows tendencies of earnings, both gross and net, on American railways from the organization of the Interstate Commerce Commission down to and including the year 1916. It will be noted that the net revenues from 1892 and 1896, inclusive, a period of depression, declined approximately 7 per cent; during the next five-year period there was a very substantial advance, amounting to over 7 per cent in excess of 1890; the next five-year period shows an increase of more than 38 per cent over 1890; the next fiveyear period, 42 per cent; and the next five-year period, 62 per cent. The net revenues from operation of American railways in 1916 were greater per mile of line than during any other year in their history.

[Exhibit No. 1, sheet No. 9.]

Tendency of revenue and expenses per mile of single track operated, all operating railroads, American railways.

* The 1916 and 1917 figures include switching and terminal companies, but do not include class II or III companies. One would tend to offset the other, the results are fairly comparable.

The foregoing are taken from the statistical reports of the International Commerce Commission, and are subject generally to comments contained in the footnote to the table shown on Exhibit No. 1, sheet 2.

[Exhibit No. 1, sheet No. 10.]

The foregoing table showing the revenues, expenses, and net revenue per mile of line includes outside operations. The commission during the past two years has included these with their operating revenues. In view of criticisms made by some relative to revenues per mile of line, including outside operations, we here present the same figures, excluding outside operations, for the years 1908 to 1914, inclusive, the years when they were compiled in that manner in the commission's reports. It will be noted this does not effect the tendencies

Tendency of revenues and expenses per train-mile, all operating railroads, American railways.

The first is marked "Sheet No. 2, Exhibit 1," and shows the net revenues from operation, operating revenues, and operating expenses. There are two significant facts there worthy of notice: First, the increase over 1890 for the first two-year average there is less than 1 per cent. The next five-year average is almost 3 per cent, the next five-year average is 30.04, the next 87.36 per cent, and the next 132.74 per cent, and the last five years, 162.18 per cent.

Senator KELLOGG. I do not understand that.