THE THEORY OF RAILROAD RATES (_Continued_)
The law of increasing returns, 71.--Applied to
declining traffic, 73.--Illustrated by the panic of
1907, 75.--Peculiarly intensified on railroads, 76.
Growth of mileage and traffic in the United States since
1889, 77.--Increase of earnings, 79.--Operating expenses,
gross and net income, 80.--Comparison with earlier
decades, 85.--Density of traffic, 86.--Increase of train
loads, 88.--Limitations upon their economy, 92.--Heavier
rails, 93.--Larger locomotives, 94.--Bigger cars, 95.--Net
result of improvements upon efficiency and earning
power, 97.
The law of increasing returns due to financial rather than
operating factors, 99.