tion. Mr. Hutchins has been in such condition that he could not prepare one. I arrived in New York last Saturday, reached my home in Buffalo on Sunday, and got here on Monday, and have felt that something should be presented to you. I have prepared something in the nature of an address, rather hastily, but I could not affront you by offering anything to you which was not the result of careful thought.

ADDRESS OF THE VICE-PRESIDENT.

Gentlemen of the American Street Railway Association

In presenting to you under existing circumstances a few brief references to matters and things of importance affecting the interests of your Association, a proper sense of the importance of the occasion and the magnitude of the interests represented here impels me to ask your indulgent consideration of the statements which, while representing the result of careful thought and reflection, have been somewhat hastily formulated and put together.

The present condition of your Association, as appears from the reports of the Executive Committee and Secretary-Treasurer, about to be submitted, is most gratifying and calls for sincere congratulation.

Statistical information at any great length concerning the magnitude of the interests represented in this Association would be wearisome and perhaps confusing. It is sufficient to say that from the recent United States Census report upon the street railway industry it appears that there were on June 30, 1902, in the United States 987 companies, owning and operating 22,589 miles of single track, upon which were transported in that year more than four and one-half billions passengers, by the use of more than one and one-quarter millions of horse power. The aggregate mileage run by the cars used in these operations exceeded one billion miles. In these stupendous operations capital is employed, as represented by capital stock and funded debt in the aggregate amount of two billion, four hundred million dollars. These figures represent the investments of many thousands of people and relate to the intimate concerns and the daily life of millions of people. They are, therefore, the legitimate subject alike of popular and governmental interest and inquiry, and correct data and information concerning them are matters of the very highest importance.

I am glad to be able to state that the methods of keeping the records and accounts of this class of transportation companies are improving from year to year, and that it is rare to find an instance where the fullest and freest information is withheld from even the most casual inquiry. Service of great value has been rendered in this department of street

railroad work by the Street Railway Accountants' Association of America. The classification of construction accounts and operating expense accounts which has finally been settled upon by that association was adopted by the United States Census Bureau in gathering statistics for its census of electric railways, and a representative of the Census Bureau has prepared a paper on the subject, which is to be read in the Accountants' Convention now being held here. This classification has been officially adopted by the State Railroad Commissions of New York, Massachusetts, Connecticut and Maine, and is about to be adopted by the Commission of the State of Pennsylvania. The Association's form of monthly and annual report has also been approved and adopted by the National Association of Railroad Commissioners. The standard classification and forms of report have also been approved by the leading bankers and financiers of the country. It is quite common, I am informed, at the present time for a banking firm examining properties with a view of purchasing, to require the accounts to be changed in accordance with the forms of the Accountants' Association. It has already been adopted by many of the most progressive electric railways and by a larger number of companies than any other one system of accounting. Exact and precise uniformity in forms of classification and reports are highly desirable, and the sooner it is attained the better it will be for the stability and value of electric railway investments, and it would seem that the system which has been worked out by our Accountants' Association and adopted by such high governmental authorities, and which has received the approval of the financial and banking community, ought to be speedily adopted by all. The members of the Executive Committee of your Association join me in urging upon members the desirability of immediate affiliation with the Accountants' Association, and the speedy adoption of its forms of classification and report.

The work of the various State Railroad Commissions has come to be of the highest value, not only in this regard, but in its bearing upon the actual operations of railroads in states where such commissions exist. The annual reports required to be made to such commissions are full and complete, and present data and statistical information exhibiting in the clearest manner the actual results of the operations of all of such properties within their jurisdiction. Their investigation of accidents and their causes, and their directions and recommendations concerning construction of safety appliances; condition of roadbed and bridges; signal systems and various other matters bearing particularly upon the operation of cars are in the main in accordance with the highest state of the art of railroad operation. The railroad commissions have come to be regarded by all progressive managers as wise and safe tribunals for the settlement of vexed questions which are continually arising. It is a singular fact that these institutions, which at the beginning were so

vigorously combated by railroad managers, almost without exception, have come to be regarded as almost indispensable and of the highest benefit and advantage to the very corporations which are subject to their control and regulation. The rapid growth of interurban electric railways and their extension through long stretches of country have brought the street railroad fraternity face to face with the problems which for fifty years have been from time to time the subject of settlement at the hands of steam railroad managers, and the wisest and most progressive electric railway operators are now following more and more closely steam railroad methods. The safety of the passengers entrusted to your care is your first and highest duty. In a short time your business has been almost revolutionized; the light cars drawn slowly by horses have given place to heavy ones, swiftly propelled by the powerful agency of electricity; the dangers attendant upon the operation of cars have been multiplied, and have in many cases far outstripped the protective measures and appliances absolutely necessary for proper and safe operation. The frequent recurrence of accidents on electric railways has been the subject of criticism by the press of the country, and the public mind is thoroughly awakened upon the subject. The attempt is now being made in a sister State to hold directors criminally responsible for an alleged failure to install safeguards at the crossing of a steam railroad where a fatal accident occurred. Apart from considerations of humanity and law, the proper discharge of your business requires that money shall be expended wherever improvements of this kind are necessary. From every point of view money spent for the prevention of accidents is money well expended, and you should never fail to impress upon those in control of the finances of your companies these views and never flinch in pressing your recommendations until favorable action has been secured.

The greatest activity displayed during the year has been in the development of the suburban and interurban properties as distinguished from the purely local service of city companies. This development has been notable not only in the increased mileage, equipment and volume of business transacted by the interurban and suburban properties, but also in the extent of the field occupied and the scope of the service given.

A discussion of the possibilities of interurban electric railroading cannot fail to be of interest to any gathering in the Hudson Valley, where some of the most notable pioneer work in this branch has been done. The operating companies of this section have not only set a good example in indicating the possibilities of this class of service, but have gone on developing it and have maintained their commanding positon as leaders in this field. It is estimated that there are now nearly one hundred companies throughout the country engaged in the handling of freight and express business, and there are possibly many more who

are contemplating engaging in this work. All these will be interested in the methods employed by the interurban companies of the Hudson and Mohawk Valleys, and by the city systems of Albany, Schenectady, Troy and other large communities which serve as distributing points. The organization which has been perfected in these places and the experience gained by the management will, of course, be placed at the disposal of the visiting managers, who will need no assurance of the value of this opportunity for the examination of the practice adopted. At the present time the water power development in this region is one of the largest and most important in the country, and the street railway properties are taking advantage of it in securing their current at a low rate and insuring reliable and constant service. The engineering features that have been developed in this connection appeal to those who are directly in touch with this branch of the service. Preparations are now being made for greatly increasing the available power from this source, and it is anticipated that within a few years the entire electrical service of this region will be operated by current produced by water power.

Another striking development of the year has been the tendency displayed toward consolidation of the street railway properties in the smaller cities, together with the electric and gas lighting service; in fact, this tendency has been so marked during the last year that in spite of the large number of new street railway corporations that have been formed in the last twelve months the actual number of operating systems has been only slightly increased. The value of the properties, however, has been growing constantly and the general average increase in gross receipts for 1902 over 1901 was nine per cent. The largest individual consolidation was that of the properties of the North Jersey Street Railway Companies and allied lines in the Public Service Corporation of New Jersey. Other notable consolidations were those at Augusta, Mobile, New Orleans, Kingston, Oakland and Norfolk and Newport News.

From a financial point, probably the most important development of this character was the acquirement by the Interborough Rapid Transit Company of New York, through lease, of the lines of the Manhattan Railway Company, thus assuring the operation of the elevated and subway properties of New York under a single management. The physical union of the two properties had already been recommended by the Rapid Transit Commission, and it had been suggested that the trains pass between the subway and the present elevated structure at several different points. This is hardly practicable at present, although it is within the possibilities that an exchange of traffic may be effected. The rolling stock of the elevated system would not be suitable for operation through the subway, and the great weight of the cars that

are being built for the latter would prohibit their operation in long trains upon the present elevated structure. This feature of the change in methods of construction and equipment is, of course, suggestive of the general advancement that has been made in the rolling stock of all branches of the service with a view of increasing the comfort and convenience of passengers, as well as the safety and reliability of operation.

The growing importance of mechanical and engineering departments in electric railroad operation has resulted in the formation of a new association, The American Railway Mechanical and Electrical Association, which is meeting for the first time this year in connection with this Convention. It is the purpose of this new organization to discuss mechanical and electrical subjects; exchange ideas on construction and equipment, and raise the standard of operation wherever improvement is possible. The necessity for better shop methods, and the advantages of correct and comprehensive records in the mechanical department are now generally recognized, and it will be the duty of the men forming the new organization to determine the best practice to be followed and see that it is adopted. It will be recognized, therefore, that the new association has an important mission and is entitled to the support and coöperation of this, the parent organization.

A number of individual instances have been afforded during the year showing the progress that has been made in electric railway engineering. In Pennsylvania two very important interurban properties operated by third-rail systems have been opened. One of these employs a protected third-rail, and is the first attempt at commercial operation of such a system. The line extends from Hazleton to Wilkesbarre, through a district that is visited by severe sleet and snow storms, and this feature of the equipment will receive a severe practical test of its efficiency. The other third-rail system mentioned is that recently opened through the Wyoming Valley and intended for freight and express service, as well as the transportation of passengers, in competition with several well established steam lines. This property is particularly noteworthy because of the terminal facilities that have been provided and the organization effected for the collection and distribution of freight and express as well as its transportation over the electric lines. It is really the first instance of the organization and establishment of an electric property intended for this class of service in which provision was made for handling a large volume of business from the opening of the road.

In station equipment and distributing systems, as well as in the character of the rolling stock, appreciable advancement has been made. At the last annual meeting, it will be remembered, a very interesting paper was read upon the steam turbine. The investigation of this important subject has been continued during the last twelve months,