The Mail Pay on the Burlington Railroad: Statements of Car Space and All Facilities Furnished for the Government Mails and for Express and Passengers in All Passenger Trains on the Chicago, Burlington and Quincy Railroad
History
The Mail Pay on the Burlington Railroad: Statements of Car Space and All Facilities Furnished for the Government Mails and for Express and Passengers in All Passenger Trains on the Chicago, Burlington and Quincy Railroad
Chicago, Burlington & Quincy Railroad Company; Railway mail service -- United States
These two classes of passenger expense (assignable and non-assignable)
aggregate $1,915,371 monthly, or at the rate of $22,984,452 per year,
and 11.75 per cent of this sum, or $2,700,675, is the annual operating
cost to the Burlington Company of transporting the Government mails.
Cost of carrying the mails $2,700,675
Earnings from carrying the mails 2,333,220
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Loss $367,455
These figures show that, in proportion to the service rendered, the
Government paid to that company $367,455 less than the actual cost of
doing the work, not including anything for taxes, nor for interest
paid by the company upon its funded debt, which was necessary to be
paid, in order to preserve the property, to say nothing of a return
upon the capital represented by the capital stock.
The correct mail's proportion of taxes and interest for the year is
$634,713, which added to the $367,455 loss above operating expenses,
shows a loss of $1,002,168:
Loss, operating expenses over revenue $367,455
11.75% of taxes and interest 634,713
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Annual loss on mails $1,002,168
This takes no account of the annual value at two cents per mile of the
transportation of inspectors and postal employees, other than clerks
in charge of the mails ($74,352), nor of clerks in charge of the mails
($746,340).
These two items of service rendered to the Government by the C. B. &
Q. road are of the admitted value of $820,692 annually.
The railroad company has the same duty and legal responsibility
towards these clerks as towards passengers.
* * * * *
Is there another fair way of testing this question?
In a letter dated March 2, 1910, from Hon. Frank H. Hitchcock,
Postmaster-General, to Hon. John W. Weeks, Chairman of the Post Office
Committee of the House, printed in full herewith, he states it is
estimated that the average annual cost to the railroads of operating a
post office car for the Government is $19,710, including $2,049 for
lighting, heating, repairs, etc., and that the total average pay
received for the car and its contents including post office car pay,
is $16,638 per annum, showing a loss in this branch of the service of
$3,073 per car. There are 1,111 full postal cars in actual service in
the country, and the loss thereon, therefore, aggregates $3,414,103,
to say nothing of the 231 postal cars in reserve.
But that is the smaller part of the loss. There were 3,116 apartment
cars in actual use in 1909, averaging twenty feet in length, and the
cost of operating each of these, according to Mr. Hitchcock's figures,
would be one-third of $19,710, or $6,570.
Public-domain text, read in full here on John Shaqi.
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