The Interstate Commerce Commission has just issued its annual report to Congress dealing with all phases of the work of the Commission and the railroads in the past year. While many of the details and statistics contained in the report are of interest, the most interesting parts deal with railroad performance, railroad earnings, the valuation of the railroads, and rates in the past year. Extracts from parts of the report dealing with these subjects follow.

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HREE noteworthy facts have characterized the transportation history of the current year:

1. The unprecedented volume of traffic handled.

2. The concurrent transformation of a car-shortage condition into one of car surplusage.

3. An exceptionally equitable distribution of available equipment over territory in which the large traffic movements originate.

During the first nine months of 1923 the carriers handled more freight traffic than during any previous corresponding period, the net ton-miles of revenue and non-revenue freight being reported as 343,796,799,000. This represents an increase of 2.9 per cent over the corresponding period in 1920, which marked the previous record.

During the first 44 weeks of this year, January 1 to November 3, inclusive, 42,655,661 cars were reported loaded with revenue freight, an increase over the corresponding period in 1922 of 6,455,666 cars, in 1921 of 9,037,948, and in 1920 of 4,028,110. Not only was this unprecedented tonnage handled well, but the carriers reported a surplusage as of the week ended July 14 of 84,210 railroad-owned freight cars in good repair and 11,035 cars of private ownership.

From June 22 to August 14 surplus cars increased from 58,671 to 78,404, and shortages decreased from 11,896 to 8,315. On five occasions between these dates more cars of revenue freight were loaded during a week than were ever before loaded in a similar period. * * * When it is recalled that at the end of the week of October 16, 1920, which marked the previous record loading, there was a shortage of 69,517 cars, and that on October 31, 1922, the shortage was reported at 179,239, the increase in transportation efficiency is apparent.

Factors in Performance

Some of the outstanding factors which have made possible this hitherto unequaled transportation performpower and

ance are:

1. The condition of cars.

3. Increases in the mileage per car per day and loading of equipment.

For the month of September, 1923, the average mileage per freight car per day was 29.2, which is higher than the average for any month since these statistics were inaugurated six years ago. The average for August was 28.2 miles.

The extent to which shippers have utilized the capacity of cars is reflected in the average load per car. In September this was 27.4 tons, and in July and August was 28.5 tons. With the exception of the average loading for August, 1918, 30.1 tons, and August, 1920, 29.8, the average for August this year is the greatest shown for any similar month since the records were inaugurated in 1917. 1923 Earnings

The marked business revival of 1925 has greatly augmented both the gross and net earnings of the carriers as compared with the earnings in the depressed years, 1921 and 1922 * ** In 1922, in spite of strike troubles, and the rate reductions effective in the middle of the year, the operating revenues increased to $5,617,252,656 and the net railway operating income to $776,665,960.

The year 1923 began with an inheritance of deferred maintenance resulting from the shopmen's strike. This has occasioned unusual expenditures for maintenance of equipment and has tended somewhat to reduce the net railway operating income, which for the first nine month of 1923 was $718,948,603.

Locomotive's Gender

Of all the things that puzzle me Is why call a locomotive "she." Its tendency to loaf and shirk

at every tanking sign And puff and blow about its work is surely masculine.

No woman ever works in pants,
Or smokes like Old King Cole,
Or under any circumstance
Submits to man's control.
No woman gets "Lit up,"
By rights and exploits shady
Or tears across the land at night,
At least no perfect lady!
Perhaps it's stylish to impute
It to the softer gender,
Ignore its tougher attributes
And only see the tender.
Or can the explanation be
(When every other fails)
That we so very often see
The fast ones draw the mail.
W. H. Braswell,
Brakeman, Tracy.

For the calendar year the corresponding figure will probably be in excess of a billion dollars, but possibly not sufficiently to make the reported earnings equivalent to 54 per cent on the fair value of the property

The improvement in the net earnings of the carriers noted above has by no means been equally distributed among the individual systems. The recovery from the depression of 1921 was more marked in the eastern and southern districts than in the western district in the first two-thirds of the year 1923.

Progress in Valuation

The outstanding development in the valuation work since the submission of our last report has been the progress in collating the data gathered by our field parties into the underlying accounting, engineering, and land reports upon which our tenta tive valuations are based.

Final reports were issued during the year in two important cases, Atlanta, Birmingham & Atlantic R. R Company, and San Pedro, Los Angeles & Salt Lake R. R. Company In these reports we determined principles involved in the fixing of final values. In finding a single-sum value we identified it as a value for rate-making purposes. We declared that we are not bound by any formula in the valuation of railroads, but that we are to determine such value by consideration of all the evidential facts and the exercise of sound judgment in each case. Reproduction new and reproduction less depreciation costs were regarded as indicative but not determinative of value.

Original cost was regarded as a factor to be given consideration to the extent that it can be ascertained. We held that earning power is not the determining factor. In the case of the Atlanta, Birmingham & Atlantic we made deductions to cover improvident investment, and scaled down the value to that of a road adequate to perform, and that justified by, the ser vice rendered.

In the disposal of these cases we were not confronted to any considerable extent by the complications arising out of war and post-war period changes in price levels. These reports are being transmitted to the Congress.

Difficulties of Valuation

It was probably to be anticipated that as the complicated work of valuing such an extensive facility as the railroad plant of the United States: having so intimate a connection with our national life, approached an advanced stage of completion, there would arise questions as to whether the work had been done in conformity

with the desires or intent of the Congress.

Few public undertakings have presented more controversial questions than valuation of privately owned agencies of public service. Although the subject as it relates both to common carriers and public utilities has been one widely discussed and litigated for more than a third of a century, wide differences of opinion still prevail regarding many of the problems it presents.

These differences have not yet been set to rest either by commissions or by the courts. In the valuation of railroads we encounter all of these complicated issues. It was not to be expected that in the most extensive valuation yet undertaken, and involving properties of great aggregate value, there would fail to develop the most searching public and legal inquiry into the administration and correctness of interpretation of a complicated act that is not entirely from ambiguities.

Rate Matters

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In our last report we referred to the general 10 per cent reduction in freight rates and charges which became effective July 1, 1922, as a result of our decision in Reduced Rates, 1922, 676. The effect during the calendar year 1923 of the rate reductions then made will be to lessen the total freight transportation charges paid by the shipping public by more than $500,000,000.

In our report in Reduced Rates, 1922, we referred to stabilization of rates as one of the important needs of commerce. With this in mind and having in mind also the desirability of giving the basis of rates established in July, 1922, a fair trial, and of avoiding the dislocation of business and commercial conditions often incident to investigations involving the possibility of important general changes in the rate level or in the relationship of rates, we have not made any further general investigation of rates during the past year. No general reductions over the country as a whole or throughout any of the major rate groups defined by us have been made by the carriers.

Many Rate Revisions

But the year has continued to be one of transition and readjustment of rates, largely by reductions. As indicated by specific figures in the chapters covering the work of the several sections of the bureau, the numher of freight rate changes made in 1923 has been even greater than the number made in 1922, which was, up to that time, the greatest in the his tory of American railroads.

Winners in Contest

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J. R. Falvey, right, engineer, Western Division, and C. N. Bryan, fireman, Shasta Division, who wrote best papers on fuel oil conservation in Pacific System contest. NGINEER J. R. Falvey, Western Division, has been awarded first honors on he Pacific System of the Southern Pacific, and Fireman C. N. Bryan, Shasta Division, second, for their papers on railway fuel conservation. The papers were submitted in the nation wide contest for a $100 prize offered by Eugene McAuliffe, through the International Railway Fuel Association, and for other prizes offered by the Railway Age and Railway Review.

Mr. Falvey and Mr. Bryan are awarded the free trip as delegates of the Southern Pacific to the next convention of the Railway Fuel Association in Chicago next May, with all expenses paid, including time lost. Mr. Falvey also receives the $10 prize offered by the Railway Review for the best paper submitted in the local contest..

First prize in the national contest, which was open to engineers, fireman, conductors, brakeman and yardmen, was awarded to W. L. Richards, locomotive engineer on the Union Pacific.

The judges in making their selection made mention of the excellent papers submitted by Southern Pacific employes.

One of the judges commenting on Mr. Falvey's paper, said: "Engineer Falvey's paper made quite an impression on me, and I think I can say the same for the other judges. It was certainly monumental effort and I think the Southern Pacific is to be congratulated on having in its employe men who are so deeply interested and well versed on fuel conservation."

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A total of 105 papers were submitted in the contest by engineers, firemen, conductors, brakemen and yardmen on the Pacific System. This is an excellent indication of the active interest being taken in the matter of fuel oil conservation.

to become effective with such modifications, as were agreed upon by shippers and carriers, thus avoiding the necessity of formal proceedings. Shippers Boards

A new development now well under way is the organization by the Car Service Division of regional advisory boards, with varis committees, for the purpose, among others, of anticipating car requirements and overcoming car-service and operating difficulties which can be worked out locally. Each board covers a convenient district and includes in its organization representatives of agriculture and important lines of industry. The committees of these boards report to the board as a whole, and the carriers Co-operate with the boards. Both carriers and shippers are thus in position to understand more clearly each other's problems and through this meeting on common grounds can harmonize their differences. As a result better transportation service seems assured.

S. P. TEAM MAKING GOOD IN SPEEDY WINTER LEAGUE

The Southern Pacific Club's General Office baseball team bettered their standing in the Spaulding Class "A" Winter League of Alameda County by defeating the Oakland Druids by a score of 13 to 6 on November 25th. The game was featured by the terrific hitting of the winners. The regular catcher of the team failing to show up, Manager "Bill" Hunrick donned the mask and big glove and to the surprise of the Southern Pacific rooters proved he was as good a catcher as he was in 1917 when he was the star receiver for the "S. P. Shastas".

On December 2nd the team suffered one of those reversals of form that happens to every baseball team and lost to the Fruitvale Eagles by a score of 5 to 3. The following Sunday the team got back into its stride and defeated the Star Motors 17 to 5, d iving out 24 hits. While at the present time the S. P. team is tied for third place with the Whelan Markets, the League schedule is only half over and the chances are still bright for the team to overtake the leaders and gain first place.

Following are the batting averages of the players, including the game of December 9th. Roderberger leads the field with an even 500, with Pryor and Isaacs right on his heels.

Rives, p.

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Editor

NO. 1

OIN the editor in a rapid glance back over the files of the Southern Pacific Bulletin for 1923. There we find, in addition to interesting glimpses of Southern Pacific folks at work and play, the story of various phases of Southern Pacific achievement during the year, articles sometimes sketched too closely upon the accomplishment to give the complete picture but which taken together indicate a record that should make the chest swell a little with justifiable pride in this Railroad and make us proud we each have a part, however modest, in the organization.

Important among the events of Southern Pacific history last year was the happy and final ending of the Central Pacific controversy. This serious problem was attended by certain very definite blessings. It challenged us to prove the efficiency and usefulness of our organization to the public we serve. We met that challenge most effectively, and, while meeting it, many of us learned in the course of a comparatively short time facts about the extent and character of our service and properties that we might otherwise have failed to absorb in life time careers with the Company. The difficulties growing out of the Central Facific case brought Southern Pacific people more closely together, made us understand each other better and brought about a better understanding between the Railroad and the public.

Another matter of vital personal interest of each employe was the announcement in our November Bulletin of the group life insurance plan which became effective January 1, 1924. This was a further development in the Company's policy of helping every individual in the organization advance himself and his family in a material way. Success of the plan was assured from the moment it was made public because the benefits to be derived from it were so obvious to every one.

Files of the Bulletin for 1923 call attention to another thing which must be gratifying to all of us because each had a part in it, that is the splendid record made in handling the tremendous traffic carried by Southern Pacific Lines last year. It is a record that drew attention to Southern Pacific's

Don't Forget: You Pass This Way But Once

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O you remember the time when you were new at the job and somebody made it unpleasant for you because you were not familiar with everything you had to do and you felt bad because you were regarded as an intruder, and it seemed that everybody had it in for you?

Take that experience to yourself right now, and if there is anybody you can help with a kind word or a little information about the work being done, give it gladly, realizing that you are giving to someone else what you didn't get-what you would have given almost anything for, at one time.

That man who can never find a word of praise or encouragement to give anybody, but who

ready to come down hard on another the n.inute any little will mistake is made, build up a fine line of friendship. -Northern Furniture.

never

place as a leader among the great railroad operating organizations of the world.

Going along with the achievements in the matter of service were the notable additions to the fine class of equipment and facilities maintained in the service of the public. The Bulletin recorded the Company's vast orders for new equipment-thousands of new freight cars, a great amount of passenger equipment and scores of powerful locomotives of the finest design. With such tools at our command it will be a matter of pride for us to maintain this Railroad as an unexcelled transportation machine.

The construction activities of Southern Pacific which were outlined by this publication in 1923 included the beginning of two notable extensions of line-the completion of an alternative northern route from Natron to Oakridge, Oregon, a distance of 118 miles, and building by the Southern Pacific of Mexico from Tepic connecting the Southern Pacific line along the west coast with the Mexican National Railways to Mexico City; the laying of heavier rail and heavier rock ballast and double tracking many miles of line.

It was the sad duty of the Bulletin to record during the last year the death of several of our friends in various branches of the company. Those who went from among us during 1923, left an heritage of their example for work well done and the memory of kindly and helpful association.

To the men and women in all

branches of the organization who contributed to the interesting and helpful series of articles on home-owning in the Bulletin that attracted nation-wide comment last year, our special thanks are due. Photographs of homes and articles will continue to appear from time to time.

Perhaps the most stimulating and encouraging consideration in reviewing promotions in official rank that were noted by the Bulletin during the last 12 months is the fact that those who achieved advancement won their way from the lower ranks as a result of continuous good service over a period of years. In this connection it is worth while to recall the statement John D. Isaacs gave the Bulletin upon his retirement as consulting engineer, June 1, 1923, after more than 48 years continuous service: "To achieve success depends in all cases upon the ability and energy of the individual. The abilities of practically all of us, including those who have achieved the highest success in the railroad world, are generally average abilities. The qualities of success are possessed by nearly all of us, and, if rightly applied, the road will not be difficult to the young man wishing to travel it."

During the last year the Bulletin continued to present articles telling about the work of various departments and allied organizations, including sketches of the Company's system for holding fire losses to a minimum, the Telegraph Department, the Bureau of Time Service, the Employes Mutual Benefit Association and a number of articles dealing with general agencies in the Middle West and East.

Of unusual interest were the articles carried from month to month on the continued success and growth of the employes business solicitation campaign, safety work, fuel saving, elimination of loss and damage to freight. the granting of pensions to additional veterans (those men and women whom we delight to honor), on the saving of waste materials and other economical practices, new data and pictures about scenic attractions, and many mendations of employes for unusual courtesy and good service.

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From time to time our Bulletin correspondents gave us flashes of the lighter side of Southern Pacific life, the activity of clubs, dancing and theater parties, athletic contests, concerts and picnics, showing the keen zest for play that all normal folks have.

In the foregoing outline of Southern Pacific activities for the year 1923, as reflected by the files of this journal many interesting items of varying importance are necessarily omitted. However, we who are directly concerned with the editing of the Bulletin consider it a privile to have assisted in keeping a current history of Southern Pacific organization at a period of perhaps its greatest service up to this time.

It has been a good year.

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A SAVINGS BANK

By JACOB STUCKEY,
Conductor, Sparks, Nevada

HEN we first moved to Sparks, more than 15 years ago, my wife and I, after considerable figuring, which brought us to realize the amount of money we were paying out for rent, decided to build a home of our own. After purchasing the lot we had to go in debt for some of the building materials, but this debt was soon paid off in monthly installments just the same as paying rent.

Since the construction of the house, on which I performed a considerable portion of the work between runs, I have made all necessary repairs with the exception of small plumbing jobs, in fact I have just completed painting the house in its entirety.

A very close estimate of our saving to date through the building of this home, after deducting taxes, insurances and upkeep, would be $4,000.00.

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WILL HAVE HOME INSTEAD OF ONLY RENT RECEIPTS By WAYNE DARLING, Cashier, Deming, N. M. BOUGHT my home in 1921 and am paying for it at the rate of $20 per month plus interest at rate of 10 per cent which at the end of about three and one-half years will pay for it. I consider this buying a home for what I would have had to pay for rent and at the end of the time would only have had a bunch of rent receipts in the place of a home.

TELEGRAPHER'S THIRD HOME RIVALS GARDEN OF EDEN

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By JESSE ELLIS,
Telegrapher, Hornbrook, Cal.

HE three new houses shown over my name were built for the same little Southern Pacific family. Number 1 is directly across the street from that recently shown by George Reed of Tucson, and was constructed in 1917 for me when I first entered the service as a train dispatcher.

Number 2 was designed and built in 1918 and is located also in Tucson. It was the dream house in which our family spent many happy hours. These homes were sold and then there came a change in events.

Out with "nerves" and "thumps," however, the builder (myself) finally arrived with his wife and little boy, no more a dispatcher, but a blown-up telegraph operator, at Hornbrook, California, center of America's Eden, and the gateway of outdoorsmen's paradise.

Here, in a long, sick summer that

blued, Blued, BLUED! little number three-living-room, Ford chamber, sleeping porch and kitchen-was thrown up single-handedly, without another's touch, except wiring. Down and out? - Sand! Gravel! - cement, wood, everything was carted in that "most remarkable Ford," Henrietta. Not so much as $400 in all our vale of tears. Garage doors were left off; and we never smelt paint for a whole year. Window seat, desk, chifforobe, china-cupboard, cabinet, closets for magazines, records, clothes, sink, drain, shelves, shelves everywhere, electric range, washer-what not, gather on a lot that almost equals your downtown block, overflowing with vegetables and berries, smiling at sky and scenery that dear city dads always hope, sometime, somehow, to "lay-off-and-see."

And now if you doubt that we have more, and better, fruit, beans, tomatoes, trout, salmon, quail, grouse, duck, deer or bear than everyone you know, just draw the curtains, grab your sack and-well, ain't nobody never from Missouri!

HAS ADVICE FOR COOL HOME
IN SAN JOAQUIN VALLEY
By H. M. Honn,
Locomotive Engineer, Bakersfield

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HE requirements of securing a home in the San Joaquin Valley, that will be cool in summer and comfortable in winter, begin with the purchasing of the lots. They should be facing the north, as nearly as the direction of the streets will permit, because the prevailing summer breezes are from that direction. If the house can be built to face the breeze, it is evident that it may be aired thoroughly without carrying fumes from the kitchen and laundry, through the front part of the house. But of course one might say this arrangement puts the kitchen on the south or hot side of the house. True enough, but if your house is of a double brick wall, with two inches of space between the walls and the walls well shaded with over hang of the roof, the heat will not penetrate the walls during the entire day. Then, again if the wifey is onto her job, like most of them are, she will have her kitchen work all done by ten o'clock and hike off to the front part of the house, where she will have plenty of shade and breeze. If the house should face the south, sure she would have a cool kitchen, but when the kitchenwork was done she would have to stay right there to keep in the cool, breezy part of the house.

The house consists of a cement basement with outside and inside entrances. The basement also contains a furnace room divided from the main cellar so no heat may get to the cellar. The first story of the house is of double rick walls all around with two-inch air space, and contains a parlor 16x20, a dining room 16x10, a living room 12x16, a kitchen 12x16, a bath room with shower 8x6, a closet 4x8, a laundry room 8x18 and a conservatory 6x8. It also has a small

Unique Summer Home

Frank Harrold and R. P. Bray, right, employes at the General Office, on "observation" platform of Harrold's summer home on Russian River.

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RANK HARROLD, in the Maintenance of Way Department at the General Office, has built a unique summer home on the Russian River. The home, "observation" end of which is shown in the above photograph, is a reproduction of the old business car "Pacific," now out of existence. Mr. Harrold adopted this idea from the fact that the most pleasant recollections of his 22 years service with the Company, during which time he has written many thousands of letters for officials. are associated with the old "Pacific" which was his home while traveling over the System with J. Q. Barlow. then Assistant Chief Engineer, and President H. B. Titcomb, of the Southern Pacific de Mexico, who was then Assistant Engineer, Maintenance of Way.

recess for breakfast room and a recess for a wall bed. The main stairs are 5 ft. wide and start with the first step in the parlor and go up to the south and land in the studio which is 14x15 and has three pairs of French doors facing south. This room is also to be used as a sun room in the winter time. The top floor is of shakes and Kella stone, and in addition to the stair landing, it contains one large bed room 16x32. It extends entirely across the front of the house and has 14 double windows that open out. There is also a large bath room with tub.

The entire house contains 37 doors, 41 windows and 20 ventilators, and is said to be the coolest and best ventilated house in Bakersfield. Most people in my vocation, locomotive engineer, will exclaim - too much money! I say our home is about all we get out of this life and the best We can get is none too good, provided we have the money to pay for

it. I would not advise

young man in railroading just starting out in life to build such a house as this, but men past the middle of life who have been steady and saved a little each year. I advise to build a home such as mine I know of nothing that will prolong your life more.

The next question will be, how much did it cost. Most of the work was done by the day, particularly the carpenter work. The house is finished above the average modern house and. counting all inside walks, the garage. the entire lighting equipment, the furnace which heats the entire house, the total cost was $8,168. Right here let me say that this cost is about $1,000 less than the lowest bid put in on contract and I had no fears of my house not being paid for when finished or any row with a contractor on account of changes in plans, after contract is made. I advise day work, particularly on all carpenter work.

PUT YOUR MONEY IN HOME
RATHER THAN AN AUTO

By ERNEST M. PERSONS,
Chief Clerk, General Accts., Mexicali.

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N MAY 1, 1920, we received notice that the house in which we were living had been sold At that time houses that could be rented in Calexico were unknown factors, and, in consequence, we decided to build our own. We had the lot. purchased some time before as an investment, and the next few days were spent in a hurried study of plan books and in consultation with contractors. with the result that contract was let, and during the summer months we watched our plans grow into real ity. On August 1st we moved into our own home, and declared our independance of the landlord and the moving van.

I believe the plan of buying o building their own home is one of the best means of salaried people saving their money, for in saving for this purpose they have a definite objec: to obtain, and an object that should be a very desirable one.

A great many salaried people say that it is impossible to save at the present time, and, while it is true that there are probably more oppor tunities for spending money at pres ent than ever before, still if one makes up his mind to save, it certainly can be done. The satisfaction of owning your own home as the result of money so saved will more than offset any sacrifices made in the saving.

Many of those on moderate salaries are inclined to put their money into an automobile, rather than a home It is true there is much pleasure to be derived from having an automobile, but I believe more satisfaction will be obtained if the automobile is put into the home, rather than the home into the automobile. To do this will probably require a little more walking. but that is not only an ancient and honorable custom, but also a very healthy exercise.