The permanent investors in a railroad are in favor of having capital maintained, even at the expense of revenue. The temporary shareholders, and the speculators in stock, wish most to produce large dividends, even at a sacrifice of capital, and would charge nothing to revenue.

The rights of both of the above classes are to be regarded, as the road is often built mainly by the efforts of the temporary investors.

WORKING RAILROADS BY CONTRACT.

417. An experiment has lately been tried upon the working of railroads which bids fair to reduce very considerably the cost of operating; and to render the enterprises more profitable, namely, working the several departments by contract; that is, paying certain persons a fixed price for supplying the necessary amount of power, cars, or material per annum, thus bringing into play private interest and individual enterprise. There is no doubt but that by a judicious system of this kind, correctly applied, many roads which are now worthless could be made to pay, while the value of good roads would be also increased.

CLASSIFICATION OF FREIGHT.

418. Freight is classified according to its nature, the commercial nature of the country traversed by the road, and the direction of the principal market. The distribution adopted upon some of the large roads is as follows:—

CLASSIFICATION OF ARTICLES.

[Articles marked thus * at owner’s risk.]

Double First Class.