Classification Of Operating Expenses. Part 2

Description

This section is from the "The Economics Of Railroad Construction" book, by Walter Loring Webb, C.E.. Also see Amazon: The Economics Of Railroad Construction.

Classification Of Operating Expenses. Part 2

Table VIII. Operating Expenses Per Train-Mile On Large And Small Roads (1904 And 1910)

	Mileage.		Operating expenses per train-mile.		Ratio expenses to earnings, per cent.
	1904.	1910.	1904.	1910.	1904.	1910.
Whole United States.. ..	220,112	240,439	1.314	1.489	67.79	66.29
Canadian Pacific.......	8,332	10,271	1.320	1.504	68.72	65.41
C. B.&Q.............	8,326	9,040	1.313	1.710	64.35	71.71
Chicago & Northwestern	7,412	7,629	1.136	1.306	66.61	70.31
Southern Railway......	7,197	7,050	1.048	1.234	70.30	67.43
C.R. I.&P...........	6,761	7,396	1.199	1.344	72.90	73.07
Northern Pacific ........	5,619	6,189	1.392	1.824	52.26	61.71
A.T & S.F.........	5,031	7,460	1.305	1.626	60.05	64.33
Great Northern ........	4,489	7,147	1.464	1.808	49.72	60.53
Illinois Central ............	4,374	4,551	1.107	1.409	70.02	74.84
Atlantic Coast Line ...............	4,229	4,491	0.984	1.213	58.95	62.44
Average of ten ...................	.................	...................	1.227	1.498	63.39	67.18
Montpelier & Wells River	44	50	1.169	1.430	80.73	75.08
Somerset Railway Co.* .	42	94	0.802	1.314	59.37	76.65
Huntingdon & Broadtop Mountain .......	66	70	0.950	2.052	52.10	96.40
Lehigh & New England.	96	170	0.793	2.045	69.80	62.84
Ligonier Valley........	11	16	1.427	1.480	69.33	49.15
Newburgh, Dutchess & Connecticut.........	59	• • ••	0.922		85.09
Susquehanna&New York	55	80	1.368	1.028	78.47	77.81
Detroit & Charlevoix *..	51	51	1.424	1.010	67.52	99.53
Harriman & Northeastern ...............	20	20	2.162	1.733	79.26	63.70
Galveston, Houston & Henderson ............	50	50	1.556	1.759	47.27	70.37
Average of ten (or nine)	................	.................	1.257	1.539	68.89	74.61

In 1904 the ten large roads were the ten longest in the country. With a few exceptions they are still the first ten. The ten small roads for 1904 were chosen almost at random except that the operating mileage in 1904 was invariably less than 100 miles and the roads were all classified as "independent roads," so that their operating expenses need not be considered as being affected by their relation to any larger road controlling them. Since then the roads marked (*) have been made subsidiary to other roads, while the Newburgh, Dutchess & Connecticut has been merged into the Central New England and no separate figures are now available. It may be noted that, although the average cost per train-mile is more uniform in the case of the larger railroad systems, as might have been expected, and that the variations from the average are much greater in the case of the small roads, the variations doubtless being due to special and local conditions, nevertheless the small roads show operating expenses per train-mile which are sometimes above and sometimes below the average values for the whole country or for the larger systems, but their average does not greatly differ from that of the average of the large systems. Without attempting to elaborate the explanation of the causes of this uniformity it may be seen in general that although the larger railroads have very large expenses, which on the smaller roads are every small (if they exist at all), yet, since the divisor (the number of trains) on the large road is so Very large, the quotient, which is the average cost per mile, tends to become uniform. It should also be noted that the ratio of earnings to expenses on the ten large systems and on the ten small roads remains at a fairly constant figure.

Table IX. Summary Showing Classification Of Operating Expenses For The Year Ending June 30, 1910, And Proportion Of Each Class To The Total. Large Roads

	Operating expenses.	Amount.	Per cent
	Maintenance of WaY and Structures.
1	Superintendence of way and structures ...............	$17,058,473 8,861,334 55,259,585 16,435,349 20,225,436 134,275,440 8,297,715 1,147,140 30,471,313 1,086,702 6,105,192	0.957
2	Ballast .....................		0.497
3	Ties...........................................		3.099
4	Rails ..............		0.922
5	Other track material .................		1.134
6	Roadway and track .....................		7.531
7	Removal of snow and ice ..............		0.465
8	Tunnels ...............		0.064
9	Bridges, trestles, and culverts.....................		1.709
10	Over and under grade crossings ...................		0.061
11	Grade crossings, fences, cattle guards, and signs.....		0.343
12	Snow and sand fences and snowsheds..............	385,730 8,175,641 3,407,627 367,400 32,181,561 3,537,331 5,141,983 1,886,865 714,637 333,056 12,151,280	0.022
13	Signals and interlocking plants....................		0.459
14	Telegraph and telephone lines.....................		0.191
15	Electric power transmission.......................		0.021
16	Buildings, fixtures, and grounds...................		1.805
17	Docks and wharves..............................		0.198
18	Roadway tools and supplies ..............		0.288
19	Injuries to persons...............................		0.106
20	Stationery and printing ..............		0.040
21	Other expenses..................................		0.018
22	Maintaining joint tracks, yds., and other facilities, Dr.		0.681
23	Maintaining joint tracks, yds., and other facilities, Cr.	9,241,467	0.618
	Total maintenance of way and structures	$358,265,293	20.093
	Maintenance of Equipment.
24	Superintendence of equipment ...............	$11,457,025	0.643
25	Steam locomotives - repairs .............	138,548,039	7.770
26	Steam locomotives - renewals ..............	3,272,370	0.184
27	Steam locomotives - depreciation ...........	11,755,130	0.659
28	Electric locomotives - repairs ...............	217,182	0.012
29	Electric locomotives-renewals....................
30	Electric locomotives - depreciation.................	22,341	0.001
31	Passenger train-cars - repairs ..........	30,695,229	1.721
32	Passenger-train cars - renewals....................	1,608,124	0.090
33	Passenger-train cars - depreciation.................	5,827,607	0.327
34	Freight-train cars - repairs........................	137,846,373	7 731
35	Freight-train cars - renewals......................	12,423,890	0.697
36	Freight-train cars - depreciation...................	30,712,546	1 722
37	Electric equipment of cars - repairs................	161,624	0 009
38	Electric equipment of cars - renewals ............	27,000	0.002
39	Electric equipment of cars - depreciation ...............	42,996	0.003
40	Floating equipment - repairs......................	924,976	0.052
41	Floating equipment - renewals....................	48,144	0.003
42	Floating equipment - depreciation .........	381,129	0.021
43	Work equipment - repairs ...............	4,461,503	0.250
44	Work equipment - renewals.......................	754,536	0 042
45	Work equipment - depreciation ....................	899,128	0.050
46	Shop machinery and tools........................	9,439.056	0 529
47	Power plant equipment..........................	167,182	0 010
48	Injuries to persons...............................	1,370,388	0.077
49	Stationery and Printing..........................	978,744	0 055
50	Other expenses..................................	841,019	0 047
51	Maintaining joint equipment at terminals, Dr.......	1,392,411	0.078
52	Maintaining joint equipment at terminals, Cr ..........................	840,895	0.047
	Total maintenance of equipment ...........................	$405,434,797	22.738

	Operating expenses.	Amount.	Per cent
	Tbaffic.
53	Superintendence of traffic	$13,960,333	0.783
54	Outside agencies	19,592,049	1.099
55	Advertising	8,347,914	0.468
56	Traffic associations	1,519,215	0.085
57	Fast freight lines	3,984,644	0.224
58	Industrial and immigration bureaus	931,212	0.052
59	Stationery and printing	6,476,861	0.363
60	Other expenses	120,052	0.007
	Total traffic expenses	$54,932,280	3.081
	Transportation.	'
61	Superintendence of transportation	21,365,630	1.198
62	Dispatching trains	16,250,243	0.911
63	Station employees	123,062,288	6.902
64	Weighing and car-service associations	2,389,673	0.134
65	Coal and ore docks	2,542,882	0.143
66	Station supplies and expenses	10,302,118	0.578
67	Yardmasters and their clerks	14,563,707	0.817
68	Yard conductors and brakemen	48,211,995	2.704
69	Yard switch and signal tenders	3,888,708	0.218
70	Yard supplies and expenses	1,249,844	0.070
71	Yard enginemen	27,890,126	1.564
72	Enginehouse expenses - yard	8,106,787	0.454
73	Fuel for yard locomotives	28,306,698	1.587
74	Water for yard locomotives	1,754,359	0.098
75	Lubricants for yard locomotives	576,693	0.032
76	Other supplies for yard locomotives	644,336	0.036
77	Operating joint yards and terminals - Dr	20,875,654	1.171
78	Operating joint yards and terminals - Cr	12,998,087	0.727
79	Motormen	477,404	0.027
80	Road enginemen	108,471,661	6.083
81	Enginehouse expenses - road	30,580,907	1.715
82	Fuel for road locomotives	184,588,622	10.352
83	Water for road locomotives	11,624,756	0.652
84	Lubricants for road locomotives	3,573,631	0.200
85	Other supplies for road locomotives	3,708,286	0.208
86	Operating power plants	726,742	0.041
87	Purchased power	413,783	0.023
88	Road trainmen	114,122,534	6.400
89	Train supplies and expenses	31,795,761	1.783
90	Interlockers and block and other signals - operation ..	8,718,693	0.490
91	Crossing flagmen and garemen	6,319,183	0.354
92	Drawbridge operation	897,495	0.050
93	Clearing wrecks	4,488,082	0.252
94	Telegraph and telephone - operation	5,820,358	0.326
95	Operating floating equipment	2,876,653	0.161
96	Express service	597	*
97	Stationery and Printing	8,113,694	0.455
98	Other expenses	2,060,571	0.117
99	Loss and damage - freight	21,756,671	1.220
100	Loss and damage - baggage	360,244	0.020
101	Damage to property	4,791,324	0.269
102	Damage to stock on right of way	3,650,544	0.206
103	Injuries to persons	20,139,285	1.129
104	Operating joint tracks and facilities - Dr	4,625,115	0.259
105	Operating joint tracks and facilities - Cr	4,357,256	0.244
	Total transportation expenses	$899,328,994	50.438

* Less than 0.0001 per cent.

	Operating expenses.	Amount.	Per cent
	General.
106	Salaries and expenses of general officers ............	$9,206,835	0.516
107	Salaries and expenses of clerks and attendants.....	25,167,569	1.411
108	General office supplies and expenses.............	3,295,407	0.185
109	Law expenses .................	10,845,738	0.608
110	Insurance ......................	7,551,789	0.424
111	Relief department expenses ..................	680,843	0.038
112	Pensions ..................	2,007,818	0.113
113	Stationery and printing ....................	2,853,808	0.160
114	Other expenses ....................	3,006,289	0.169
115	General administration, joint tracks, yards, and terminals - Dr ........................	655,875	0.037
116	General administration, joint tracks, yards, and terminals - Cr .................	198,878	0.011
	Total general expenses ....................	$65,079,593	3.650
	Recapitulation of expenses:
	I. Maintenance of way and structures ............	$358,265,293	20.093
	II. Maintenance of equipment ................	405,434,797	22.738
	III. Traffic expenses ....................	54,932,280	3.081
	IV. Transportation expenses .....................	899,328,994	50.438
	V. General expenses ..................	65,079,593	3.650
	Total operating expenses .....................	$1,783,040,957	100.000

The "Credit items" 23, 52, 78, 105, and 116 represent receipts from other roads, from switching and terminal companies (which are not included in this or the following table) or from other sources. The amounts and percentages must be deducted from the other expenses to obtain the net expenses.

Table Ixa. Summary Showing Classification Of Operating Expenses For The Year Ending June 30,1910, And Proportion Of Each Class To The Total. Small Roads

	Operating expenses.	Per cent	Corresponding items in Table IX.
	I. Maintenance of WaY and Structures.
1	Superintendence of way and structures ............	1.195	1
2	Maintenance of roadway and track ...................	19.752	2-7
3	Maintenance of track structures ...............	2.991	8-15
4	Maintenance of buildings, docks and wharves ...................	1.191	16,17
5	Injuries to persons ........................	0.042	19
6	Other maintenance of way and structures expenses. . .	0.860	18, 20, 21
7	Maintaining joint tracks, yards, and other facilities.	0.469	22
8	Maintaining joint tracks, yards, and other facilities.	0.668	23
	Total, maintenance of way and structures ...................	25.832

	Operating expenses.	Per cent.	Corresponding items in Table IX.
	II. Maintenance of Equipment.
9	Superintendence of equipment ............	0.919	24
10	Locomotives - repairs ...............	6.275	25,28
11	Cars - repairs ................	6.510	31, 34, 37
12	Floating equipment - repairs .............	0.044	40
13	Work equipment - repairs ..............	0.165	43
14	Equipment - renewals ....................	0.608	26, 29, 32, 35, 38, 41, 44
15	Equipment - depreciation ...............	4.214	27, 30, 33, 36, 39, 42, 45
16	Injuries to persons...............................	0.025	48
17	Other maintenance of equipment expenses ..........	0.785	46, 47, 49, 50
18	Maintaining joint equipment at terminals - Dr ............	0.026	51
19	Maintaining joint equipment at terminals - Cr.......	0.06S	52
	Total, maintenance of equipment ..............	19.508
	III. Traffic Expenses.
20	Traffic expenses .................	2.418	53-60
	IV. Transportation Expenses.
21	Superintendence and dispatching trains .............	2.200	61,62
22	Station service .................	6.185	63-66
23	Yard enginemen.................................	0.823	71
24	Other yard employees ............	1.259	67-69
25	Fuel for yard locomotives........................	1.276	73
26	All other yard expenses..........................	0.376	70, 72, 74-76
27	Operating joint yards and terminals - Dr...........	0.743	77
28	Operating joint yards and terminals - Cr...........		78
29	Road enginemen and motormen...................	5.977	79,80
30	Fuel for road locomotives........................	11.184	82
31	Other road locomotive supplies and expenses........	2.850	81, 83-87
32	Road trainmen ............	6.313	88
33	Train supplies and expenses ............	0.936	89
34	Injuries to persons ..................	0.619	103
35	Loss and damage ............	0.471	99, 100
36	Other casualties.................................	0.616	93, 101, 102
37	All other transportation expenses ...............	1.916	90-92, 94-98
38	Operating joint tracks and facilities - Dr...........	0.481	104
39	Operating joint tracks and facilities - Cr...........	0.1S5	105
		43.472
	V. General Expenses.
40	Administration ..............	7.088	106-109
41	Insurance ....................	0.749	110
42	Other general expenses ............	0.968	111-114
43	General administration, joint tracks, yards, and terminals - Dr...................................	0.031	115
44	General administration, joint tracks, yards, and terminals - Cr ...........................	0.066	116
		8.770

51. Itemized Classification Of Operating Expenses

The reports made to the U. S. Interstate Commerce Commission are given according to such a standardized system that the entire operating expenses of the railroads of the country (with the exception of a small fraction of one per cent) may be classified. Although such detailed figures are only published with respect to systems or roads operating more than 500 miles, the averages for all the railroads are published each year. The comparison of the percentages for each year are very instructive, especially when it is possible to trace the cause of the fluctuations in those percentages. The classification itself is shown in Table IX. The variations in the principal items, especially those in which the engineer is interested, will be briefly discussed. Many of the items are directly affected by differences in operating management, and many of them are affected by such changes in alinement as an engineer may be able to make. Such items call for particular study on the part of the engineer. On the other hand, many of the smaller items are almost in the nature of fixed charges which will not be materially affected by any change which may be made by the locating engineer or by any slight change of policy in the operation of the road. Such items will only be materially affected by some radical difference in the scale of operation of the road.

Continue to:

Headaches Begone! A Systemic Approach To Healing Your Headaches

Don't Let Your Bike Seat Ruin Your Sex Life Book

Classification Of Operating Expenses. Part 2

Description

Classification Of Operating Expenses. Part 2

Table VIII. Operating Expenses Per Train-Mile On Large And Small Roads (1904 And 1910)

Table IX. Summary Showing Classification Of Operating Expenses For The Year Ending June 30, 1910, And Proportion Of Each Class To The Total. Large Roads

Table Ixa. Summary Showing Classification Of Operating Expenses For The Year Ending June 30,1910, And Proportion Of Each Class To The Total. Small Roads

51. Itemized Classification Of Operating Expenses

Search

My Books

Discover