Cost of carrying the mails$2,700,675
Earnings from carrying the mails2,333,220
Loss$367,455

These figures show that, in proportion to the service rendered, the Government paid to that company $367,455 less than the actual cost of doing the work, not including anything for taxes, nor for interest paid by the company upon its funded debt, which was necessary to be paid, in order to preserve the property, to say nothing of a return upon the capital represented by the capital stock.

The correct mail's proportion of taxes and interest for the year is $634,713, which added to the $367,455 loss above operating expenses, shows a loss of $1,002,168:

Loss, operating expenses over revenue$367,455
11.75% of taxes and interest634,713
Annual loss on mails$1,002,168

This takes no account of the annual value at two cents per mile of the transportation of inspectors and postal employees, other than clerks in charge of the mails ($74,352), nor of clerks in charge of the mails ($746,340).

These two items of service rendered to the Government by the C. B. & Q. road are of the admitted value of $820,692 annually.

The railroad company has the same duty and legal responsibility towards these clerks as towards passengers.


Is there another fair way of testing this question?

In a letter dated March 2, 1910, from Hon. Frank H. Hitchcock, Postmaster-General, to Hon. John W. Weeks, Chairman of the Post Office Committee of the House, printed in full herewith, he states it is estimated that the average annual cost to the railroads of operating a post office car for the Government is $19,710, including $2,049 for lighting, heating, repairs, etc., and that the total average pay received for the car and its contents including post office car pay, is $16,638 per annum, showing a loss in this branch of the service of $3,073 per car. There are 1,111 full postal cars in actual service in the country, and the loss thereon, therefore, aggregates $3,414,103, to say nothing of the 231 postal cars in reserve.