In closing this communication it gives me much pleasure to acknowledge the zealous and cordial co-operation that I have received from my Associate and Assistant Engineers in carrying on the important work that you have committed to our charge. Respectfully submitted, by Your obedient servant, J. EDGAR THOMSON, _Chief Engineer_. Note.--By way of "Then and Now" contrast, the income account of the Pennsylvania Railroad Company for the year ending June 30, 1909, from Interstate Commerce Commission Bulletin No. 5 is subjoined. Revenues and Expenses of the Pennsylvania Railroad Company for the year ending June 30, 1909. Miles operated 4,087 Operating revenues $138,449,119 From Freight $100,356,160 Passengers 28,774,281 Other transportation 8,438,972 Non-transportation 879,706 Operating expenses 97,107,751 For Maintenance of Way and structures $16,503,246 Maintenance of equipment 27,225,887 Traffic 1,844,365 Transportation 48,064,176 General 3,470,077 Net operating revenue 41,341,368 Taxes(a) 2,370,314 (a) Exclusive of some $1,790,000 taxes paid on leased lines. Observe that the amount expended on maintenance of way and structures in 1909 was more than double the total estimated cost of the road from Harrisburg to Pittsburg in 1848. The amount expended during the calendar year 1909 in revision of grades and alignment, and for additional tracks, yards and other terminal facilities, abolition of grade crossings and improvement of equipment was $5,581,809, exclusive of $4,000,000 applied towards construction of New York Terminal Extension. This road as it exists today is a living monument to the sound policy of the American railway practice of a dollar for improvements for every dollar of dividends. S. T. FOOTNOTE: [A] By an alteration of the line, since made, the distance lost by the river route is reduced to four-tenths of a mile. RAILWAYS AND THE PACIFIC NORTHWEST BY JAMES J. HILL.