These are very large sums, but the net earnings, on an average valuation of $13,000,000,000, represent only 5.49 per cent for 1906, 5.85 per cent for 1907, 4.92 per cent for 1908, — not a very large return even if the railway-owner could take it all, but he must, of necessity, use a liberal share of any such net earnings for a multitude of improvements and additions to the railways, for as the Commerce Commission says in its report for 1908, “Every safely administered railroad should recognize the difficulty of bringing operating expenses under control, and in times of prosperity provide against the contingency of reduced traffic.”
The railway-owner recognizes this, for there was paid in interest and dividends, in the years named, 1906 — $518,893,000, or 3.99 per cent; 1907 — $551,129,000, or 4.24 per cent; 1908 — $571,114,000, or 4.39 per cent; the balance going back into the property. In fact, in order to keep up a great piece of machinery like the railway, subject to damage in many ways and needing constant additions, an amount at
