As an inducement to the supervisors and the foremen of the Subdivisions to excel on their division, premiums are given as follows: $100 to the supervisor having the best yard on his Grand Division. $100 each to the supervisors having the best Supervisor's Division on each Superintendent's Division of 100 miles. $75 to the foreman having the best subdivision of 2½ miles on each Grand Division. $60 to each foreman having the best subdivision on his Superintendent's Division, including yards. $50 to the foreman having the best subdivision on each Supervisor's Division. In addition to the above there are two premiums of honor given by the general manager, which bring into competition with each other those parts of the main line lying on either side of Philadelphia, viz.: $100 to the supervisor having the best line and surface between Pittsburg and Jersey City. $50 to the second best ditto. If a supervisor or foreman of subdivision receives one of the higher premiums, he is not allowed to be a competitor for any others premiums, except the premiums of honor. The advantages of these inspections and premiums are these: Every man knows exactly what the standard of excellence is, and strives to have his section reach it. Under the old system, a man never got off of his own section, and had no means of comparison, and like all untravelled persons, became conceited. The standard of excellence becomes higher and higher every year. Perfect fairness prevails, as the men themselves are the judges. The officers of the road make no marks, but usually look on and see that there is fair play. This brings the officers and men nearer together, and shows the men how all are working for the common good. An agreeable break is made in the monotony of the men's lives. They have something to look forward to better than a spree. It is by the adoption of such methods as these that strikes will be prevented in the future. It encourages an _esprit de corps_ among the men, and educates them in every way. This system was first devised and put in operation on the Pennsylvania Railroad in 1879, by Mr. Frank Thomson, General Manager, to whom the credit of it is justly due. V. I have thus endeavored to trace the history of the building of a railway; and it must have been seen, from what has been said, that the evolution of the railway and of its rolling stock follows the same laws which govern the rest of the world: adaptation to circumstances decides what is fittest, and that alone survives. The scrap-heap of a great railway tells its own story.