The gross earnings of the railways in the United States from the operation of 205,313.54 miles of line were, for the year ending June 30, 1903, $1,900,-846,907, being $174,466,640 greater than for the previous year. Their operating expenses were $1,257,538,-852, or $141,290,105 more than in 1902. The following figures give gross earnings in detail, with the increase or the decrease of the several items as compared with the previous year: Passenger revenue, $421,704,592 - increase, $28,741,344; mail, $41,709,396 - increase, $1,873,552; express, $38,331,-964 - increase, $4,078,505; other earnings from passenger service, $9,821,-277 - increase. $962,508; freight revenue, $1,338,020,026 - increase, $130,-791,181; other earnings from freight service, $4.467,025 - decrease. $379,-693; other earnings from operation, including unclassified items, $46,792,-627 - increase, $8,399,243. Gross earnings from operation per mile of line averaged $9,258, the corresponding average for the year 1902 being $633 less.

The operating expenses were assigned to the four general divisions of such expenses, as follows: Maintenance of way and structures, $266,421,-774; maintenance of equipment, $240,-429,742; conducting transportation, $702,509,818; general expenses, $47,-767,947; undistributed, $409,571. Operating expenses were $6,125 per mile of line, having increased $548 per mile in comparison with the preceding year. The statistical report contains an analysis of the operating expenses for the year according to the fifty-three accounts prescribed in the official classification of these expenses, with the percentage of each item of the expenses as classified for the years 1897 to 1903.

The income from operation, or the net earnings, of the railways amounted to $643,308,055. This item, when compared with the net earnings of the year 1902, shows an increase of $33,-176,535. Net earnings per mile for 1903 averaged $3,133; for 1902, $3,-048, and for 1901, $2,854. The amount of income obtained from other sources than operation was $205,687,-480. In this amount are included the following items: Income from lease of road, $109,696,201; dividends on stocks owned, $40,081,725; interest on bonds owned, $17,696,586, and miscellaneous income, $38,212,968. The total income of the railways, $848,995,-535 - that is, the income from operation and from other sources - is the amount from which fixed charges and similar items of expenditure are deducted to ascertain the sum available for dividends. Deductions of such nature totalized $552,619,490, leaving $296,376,045 as the net income for the year available for dividends or surplus.

The amount of dividends declared during the year (including $420,400, other payments from net income) was $197,148,576, leaving as the surplus from the operations of the year ending June 30, 1903, $99,227,469, that of the previous year having been $94,855,-088. The amount stated above for deductions from income, $552,619,490, comprises the following items: Salaries and maintenance of organization, $430,427; interest accrued on funded debt, $283,953,124; interest on current liabilities, $9,060,645; rents paid for lease of road, $112,230,384; taxes, $57,849,569; permanent improvements charged to income account, $41,948,183; other deductions, $47,-147,158.

It is perhaps appropriate to mention that the foregoing figures for the income and expenditures of the railways, being compiled from the annual returns of leased roads as well as of operating roads, necessarily include duplications in certain items of income, and also of expenditure, since, in general, the income of a leased road is the rent paid by the company which operates it.