"The Grand River Valley is leased to the Michigan Central R. R., which pays the interest on its bonds $1,500,000.00-amounting to $120,000.00, and five per cent on its stock-$491,200.00-amounting to $24,560.00.

"The Jackson, Lansing & Saginaw is leased to the Michigan Central R. R., which pays the interest on its bonds-$4,253,000.00-amounting to $340,240.00, and the annual rental of $70,750.00."

TRAIN MILEAGE.

The miles run by passenger trains during the year was 9,253,144, a decrease from the previous year of 14,138 miles; by freight trains, 17,727,651, an increase for the year of 1,214,366 miles; by all other trains, $2,403,521, a decrease of 2,303,769 miles. The total train mileage for the year was 29,384,316, a decrease of 102,541 miles, or thirty-three hundredths of one per cent.

PASSENGERS CARRIED.

The total number of passengers carried during the year was 10,538,718, a decrease from the number of the previous year of 117,509, or one and sixtyfive hundredths per cent. But if the comparison be made only with the roads that reported their total of passengers carried for 1875, the decrease is 222,932.

In 1875 the number of passengers carried one mile, by the twenty-six roads that reported this item, was 421,272,314, while the same roads had a total passenger mileage in 1876, of 437,265,124, an aggregate gain for these roads of 15,992,810 miles of passenger haul.

But for the first time in the history of this office, all of our roads, doing a passenger business, have reported the number of passengers carried, and the total mileage for the same; and we have a total of 473,007,640 as the total of passengers carried one mile during the year.

From the above data we find that the average rate of fare per mile per passenger, was 2.38 cents; a decrease from the rate of the year previous of eleven hundredths of a cent. The average amount received from each passenger was $1.06.81; a falling off of 7.2 cents. The average distance traveled by each passenger during the year was 44.88 miles; a decrease from the year previous of ninety-eight hundredths of a mile. From these results it will be seen that notwithstanding the tide of travel to the Centennial, our roads failed to receive their usual amount of passenger traffic.

FREIGHT CARRIED.

The total number of tons of freight carried on thirty-four of our roads-two failing to report this item-was 16,474,721, an increase over the total reported for 1875, of 1,823, 584; but if the comparison be made for the roads only which reported this item in that year, there is still a gain of 1,794,975 tons, or twelve and twenty-five hundredths per cent.

The total tons carried one mile by the roads reporting,-only two failed in this item, was 2,323,961,690, an increase over the total reported for the year previous, of 369,958,238 tons; and for the twenty-eight roads reporting in that year, a gain of 305,154,514 tons, or fifteen and sixty-two hundredths per cent. The average ton haul was 140.84 miles, a decrease in length of haul of 11.77 miles. The average amount earned by each ton haul was $1 62.68.

The following table exhibits the classes of freight handled, and the per cent. which each formed, of the total tonnage, for the years 1873, 1874, 1875, and 1876:

The equipment in use or owned by the railroads doing business in this State, consisted of 1,336 locomotives of all sizes, 636 passenger cars, 252 baggage and express cars, 14,457 box freight cars, 2,771 stock cars, 7,369 platform cars, 3,705 ore cars, 564 cabooses, and 2,684 other cars for various purposes, making a total of 32,438 cars.

PERSONS EMPLOYED.

The business of the thirty-six corporations reporting to this office, gave employment to 24,745 persons in the different grades of service, of whom 13,156 were employed in Michigan. This is a decrease from the previous year. of 6,614 for the total, and 1,535 for those employed in this State.

FREIGHT TARIFF RATES.

The extremely low rates of freight received by our railroads in 1875, as

shown by the report of this office for the year, suffered a further reduction for the year 1876; reaching figures so low that it is a matter of wonder that the aggregate results for the year's business were not more disastrous than we have shown them to be. And yet, with the extreme economy with which our roads conducted their business, by which their aggregate expenses were reduced $2,700,000, they were unable, as a whole, to realize any return on their investment, and, in but few cases, to pay the interest on their securities.

The average rate received per ton per mile, for the year's business, was but 1.15 cents; or, excluding the mileage and freight earnings of the Chicago & Northwertern Railway, which has but 170 miles of road in this State, out of the 1,500 miles which it operates, the average rate received was but 9.82 mills per ton per mile; which is a reduction from the rate for 1875, of 2.18 mills per ton per mile. But this farther reduction is more notable when it is remembered that the average rate for 1874, was 1.37 cents, and for 1875, 1.2 cents per ton per mile.

The demand for cheap freights coupled with the sharp competition arising from an over supply of railroad facilities, resulted in rates of carriage for freight which it would seem could not have failed to satisfy the most exacting; while for investors in railroad property, the outlook could not but be gloomy.

It is also a matter worthy of note, that those of our roads whose traffic was nearly or quite all local, and which were so situated as to demand and receive the highest rates of freight, were so oppressed by a lack of business to be done, as that their past results and future outlook are less cheering than was the case with our larger lines, and those receiving the lowest rates.

The Detroit & Milwaukee did its through business at 6.76 mills per ton per mile, the Lake Shore & Michigan Southern at 6.12 mills, and the Michigan. Central at 6.4 mills per ton per mile. The local freight traffic of the Detroit & Milwaukee returned an average of 2.48 cents per ton per mile, of the Lake Shore and Michigan Southern, 9.26 mills, and for the Michigan Central 2.08 cents per ton per mile; while the average rate for all freights carried on these three roads, was, for the Detroit & Milwaukee, 1.29 cents per ton per mile, the Lake Shore & Michigan Southern 8.18 mills, and for the Michigan Central 8.4 mills per ton per mile.

These average rates were less than the through rate on the principal roads in Massachusetts; the Boston & Albany having received, for 1876, 9.6 mills per ton per mile, and this was the only road in that State whose through rate was less than one cent; while the average rate on that road for all freight carried was 1.28 cents,-an amount only one-hundredth of a mill less than the average rate on the Detroit & Milwaukee, 4.6 mills greater than the rate of the Lake Shore & Michigan Southern, and 4.4 mills greater than that of the Michigan Central.

The railroads of Connecticut receive, as compared with these of our State,

very large rates; the average for the State being, as stated by the report of the Board of Railroad Commissioners, 6.5 cents; and the lowest average rate received was by the New London Northern, whose rate was 2.8 cents.

The Commissioner of Railroads of Ohio reports the average rate of freight for the railroads of that State for 1876 as 1.117 cents, a rate greater than that for our own State by 1.35 mills.

In Wisconsin the average rate for the year, for all lines doing business both in and out of the State, was 1.94 cents per ton per mile; while for the business of that State alone the rate was 2.14 cents.

The above mentioned reduction in the average rate per ton per mile received by the railroads of this State, of 2.18 mills, was equivalent to a loss of $5,066,236.48 from the earnings from the year's business; for had the rate remained the same as in 1875, the amount of business done in 1876 would have yielded the above amount in excess of what they actually did receive; and this loss of more than five millions of dollars from the years' revenue is also equal to a loss of a dividend of more than three and a half per cent on the total Capital Stock investment in our roads.

The steady decrease in the carrying rates for freight, which has taken place on nearly all roads in this country, is well illustrated in the carefully prepared report of the Lake Shore & Michigan Southern Railway to its stockholders, for 1876, by means of an historical table, giving the earnings for each year for the several lines composing the present consolidated road, from 1837 to 1876 inclusive, and the average rate of freight received per ton per mile since 1853. This interesting table, together with the ample explanatory foot-notes, will be found on a subsequent page.

The following are the rates of freight, in constantly descending scale, by years, received by that company and its numerous predecessors:

The record of accidents for the year shows a total of 220, of which 94 resulted in death, and 127 in injury. Of those killed 10 were passengers, 34 employés, and 50 others; and of the injured 15 were passengers, 82 employés, and 30 others.

But taking into consideration the question of contributory negligence on the

part of a large portion of those who suffer from railroad accidents, we find that but two passengers were killed and five injured during the year from causes beyond their own control. Of those killed, one was by a rear collision of freight trains at Decatur on the Michigan Central, the passenger being in the caboose of the forward train, and the other was a drover who was in charge of his stock, going over the Michigan Air Line R. R., and who while passing from one car to another, lost his footing and fell under the train.

Of the passengers injured from causes beyond their own control, one was by a collision on the Detroit & Milwaukee R. R., caused by the breaking of a switch bolt (the injuries were slight), and four by derailments caused by broken rails, one on the Chicago & Lake Huron, and three on the Grand Rapids and Indiana.

There were eight passengers killed and 10 injured from their own misconduct or lack of caution. Of those killed, four were by attempting to get on or off moving trains,-one jumped from a train while running at a rate of about 30 miles per hour, and another while intoxicated,-and five were killed by falling from trains. Of those injured, six suffered for their temerity in attempting to get on or off moving trains, and four by falling from trains. As long as passengers will persist in moving about the trains on which they are riding, or standing on the platforms where they are liable to be thrown off by the sudden. starting of the train or other like causes, it will no doubt continue to be necessary to continue the record from year to year of loss of life and maiming from this cause.

When it is remembered that there were transported on our roads during the year, excluding the Chicago & Northwestern R'y (the accidents on which outside of our State are not reported to this office), a total of more than seven and a half million people, whose united journeys made a total of more than three hundred and sixty million miles, and that out of this number of passengers only seven, suffered any harm from causes which were not the result of their own lack of caution, it may be regarded as ample proof not only of great care for their passengers on the part of both managers and employés, but also of the safe condition of the road-bed and the good quality of their rolling stock.

The total number of accidents to employés was 116, of which 34 resulted fatally, and 84 in bodily injury. Of those killed, 7 were from causes beyond their own control, and 27 from lack of caution; and of the injured, 33 were from causes beyond their own control, and 49 from a lack of caution. Of those killed without contributory negligence on their own part, one was by a collision and two by a derailment. There were 49 accidents from coupling cars, of which 7 were fatal. Those not fatal in their results range in severity from a bruised hand to a severe maiming for life. It is a matter of the deepest regret that so many difficulties stand in the way of the invention and adoption of some uniform device for coupling freight cars, which might do away with the