_Largest Net Results._--While the gross receipts measure the volume of business they may not give any indication of net results. A chart, immediately under that comparing gross receipts, compares the net receipts of the fifteen roads (of the same twenty-two) which report the highest per centages. Of the ten reporting largest net results, seven are west of Chicago. This fact, coupled with the desire of the great western systems to possess new territory in advance of others, suggests a reason for the large railway growth in that part of the country. FREIGHT TRAFFIC. The gross traffic receipts of the railways of the United States are divided between freight and passenger business in very nearly the proportion of three to one in favor of the freight traffic. For this reason, and because the data are still more largely available on the same side, the freight service receives herein the fuller treatment. _Reduction of Freight Rates._--On the opposite page is a chart delineating the fluctuations in freight rates since 1870. To one not familiar with the subject the picture presented is a most remarkable one. It looks as though the roads are all in a mad scramble to see which can reach the bottom of the hill first. To railway managers the picture is a painful reminder of a serious struggle, the end of which no one can yet predict. The lines selected are representative lines of the east and west divisions of the country, north of the Ohio River, where the great number of competing roads has induced sharp competition. The history of the _averages_ is very clear, and it is easy to see that they are steadily approaching common ground, for while in 1870 the eastern average marked almost exactly one cent six mills, the western marked two cents four mills, a separation of eight mills; in 1888 they recorded seven mills and a trifle over nine mills, a separation of about one-quarter of the 1870 record. _Wheat Rates._--The chart below repeats the lesson of the larger chart as to reduction of rates. The persistency with which water rates have kept below rail rates, emphasizes the fact that wherever water-ways exist, they are stubborn competitors for such freight traffic as will not suffer by the longer time required for the journey. [Illustration: Average Freight Rates per Bushel of Wheat from Chicago to New York.]