Exactly the same principles are involved in this matter as in the case of a thrifty proprietor of a country-store, whose profits each year depend materially upon the closeness and care with which his stock in trade is purchased from the wholesale dealers in a large city. A purchasing agent's experience is varied in the extreme, dealing as he does with all classes of salesmen and business houses. There is no end to the operations which skilful salesmen go through in offering their stock; but after some experience a sharp buyer will be able to fortify himself against the best of them—even against the clever vender of varnishes who disposed of one hundred barrels of his wares in small lots to different buyers, on a sample of maple-sirup. On the other hand, a salesman who, when a buyer asked him if his oil gummed, replied that "it gummed beautifully," lost the chance of ever selling any goods in that quarter.

As has been said, the ordinary or general supplies consumed in the operation of the average railroad include almost everything known to trade. Tobacco, for the gratification of the taste of a gang of men out on the road with the snow-plough, is not outside the list; and even pianos, for some trains (since the days of absolute comfort and possible extravagance have begun) for the benefit of passengers setting out on long journeys; nor do we lose sight of books, bath-tubs, and barbers. The practical feature involved, however, calls for an endless variety of expensive as well as inexpensive materials.

It is a safe rule to follow that anything which goes into the construction either of track, equipment, or buildings, should be the best. Care should always be exercised against the use of any material the failure of which might be the cause of loss of life, and consequently result in heavy damages to the company. Iron alone enters so extensively into railroad construction and operation that it is safe to say three-fourths of all manufactured in this country is consumed directly or indirectly in this way; and besides its use in rails and fastenings (the latter including spikes, fish-plates, and bolts and nuts), and in the many thousand tons of car-wheels and axles annually required, there must be reckoned the almost unlimited number of castings daily required in the way of brake-shoes, pedestals, draw-heads, grate-bars, etc. The lumber and timber for buildings, bridges, platforms, and crossings, and the large quantity of glass which is necessary, are among other large items of expenditure.

Lubricating and illuminating oils, paints and varnishes, soaps, chalk, bunting, hardware, lamps, cotton and woollen waste, clocks, brooms, and such metals as copper, pig tin, and antimony are only a few of the many articles of diet which a railroad requires to keep body and soul together, and give it strength to perform the great duty it owes to commerce and the public. After they have all served their purposes, such as cannot be worked over again in the shops, and are not entirely consumed, are consigned to the scrap-heap under the head of "old material"—an all-important consideration in the economical management of any road. On many roads very little attention is paid to the sale of scrap. As a general rule, the purchasing agent has charge of it, and if he shows any shrewdness in buying, he will exercise more or less ingenuity in selling. Most railroad scrap has a fixed value in the market. Quotations for old rails, car-wheels, and wrought iron are found in all the trade journals; but as in buying one can usually buy of someone at prices less than market price, so in selling he can often find a buyer who is willing to pay more than the regular quotation. As it is found not wise in the long run to purchase ahead on some prospective rise, so in selling it is equally true that holding scrap over upon the possibility of a rise in prices is not always for the best advantage.

There has always been a demand for old iron rails, and recently use for old steel rails has been found. They are worked over at the rolling mills into crowbars and shovels, spikes, fish-plates, bolts, and other necessary things to be employed in construction and maintenance. Not long since an experiment with old steel rails was successfully performed, whereby they were melted and poured into moulds for use as brake-shoes. The result showed a casting of unusual hardness which would outwear three ordinary cast-iron shoes. This opens up an entirely new field in railroad economy, for with ordinary foundry appliances accumulations of old steel rails can be worked over and cast into all sorts of shapes and patterns to better advantage than selling them at a nominal price to outside buyers. While worn-out car-wheels will generally bring more money from wheel manufacturers than they command in the open market, it has not always been found the best policy to compel the mill from which the new wheels are purchased to take too many of them. It is apt to encourage the use of too much old material in the manufacture of the new; and while the company may consider that it is realizing much more money on sales of the old wheels than the market price, it does not take into account the inferior stock it is getting back, or the fact that possibly when the mileage is reckoned the wheels have signally failed to run as long as they ought. In the aggregate about ten per cent. of the original cost of all supplies purchased is realized out of the sales of old material. From cast-iron wheels and old rails, however, the percentage is much larger, for while at present new passenger car-wheels of this class, weighing about five hundred and fifty pounds, are worth about ten dollars each, they will bring in the market, when worn out after running say fifty thousand miles, about twenty dollars per ton. Four wheels go to the ton, which represents five dollars per wheel, or fifty per cent. of the original cost. With old rails the percentage is even higher, in the present condition of the rail market. Old iron rails are worth within four or five dollars of the price of new steel, and the old steel about seventy per cent. of the price of the new. These high percentages assist in making up for the materials which are entirely consumed in the service, and which never form a part of the ordinary scrap-heap, such as oils, waste, and paints.

While the majority of general supplies just mentioned briefly may be arranged for as required and purchased from month to month upon regular requisitions, there are certain staple articles which are provided for in advance by contract. Among them principally are the engine-coal, rails and ties, stationery, passage-tickets, and time-tables. More money is expended for such supplies than for any others, and contracts with responsible business houses, for their delivery at fixed prices for the limit of at least a year, are generally made to insure, in the first place, the lowest market rates and, again, to make the delivery certain.

Locomotive fuel is the largest single item of expense in the operation of any road, the consumption of it running up as high as a million tons per annum on some large roads; and while there are a few exceptional cases where wood is used as fuel, coal is the necessary element in nearly every case in America to-day.

Of the two general varieties—bituminous or soft, and anthracite or hard—it is safe to say that bituminous coal is the more economical, assuming that the grade employed is the best, this economy lying both in the original cost and the fact that the bulk of it goes to serve its purpose, there being comparatively little waste in the way of ashes; while the anthracite produces many ashes and clinkers, requires much more care and attention on the part of the stoker or fireman, and costs, as a general rule, about thirty per cent. more. Economy, however, should not be carried too far in any branch of the service, and if the passenger traffic be heavy the use of soft coal may be a great detriment. To a traveller there can be nothing more disagreeable than the smoke and cinders emanating from it; and if, besides this, the road be an especially dusty one, the combination of dust, smoke, and cinders will be quite sufficient to turn the tide of travel in some other direction and over another route.

For freight service bituminous coal is decidedly the best, and perhaps might not be out of place on short local passenger trains; but the company that provides hard-coal-burning engines for passenger trains, and soft-coal burners for freight, does about the right thing, and economizes as far as practicable in this particular. In making contracts for this important commodity the necessity of careful tests in advance is very apparent, and such trials are generally left with the best engineers and firemen; otherwise it might be difficult to get at all the qualifications. On some roads inducements offered to firemen have brought the consumption of fuel down to the most economical point, and it is surprising how much depends upon their good judgment in this matter.

Now that heating cars direct from the engines is coming into general use, and State legislatures have given the subject their consideration, the consumption of the domestic sizes of coal as fuel in cars is growing less; but this, too, is still a very important matter.