26 



TRANSACTIONS OF WAGNER FREE INSTITUTE OF SCIENCE 



THE ELIMINATION OF GRADE-CROSSINGS IN CITIES 



TABLE 6 



DIVISION OF COST, ELIMINATION OF GRADE-CROSSINGS IN PHILADELPHIA 



It is of frequent occurrence that when one grade-crossing in a city has to 

 be eliminated, it carries with it a number of others on account of general 

 conditions, and such work, therefore, often assumes great magnitude in the 

 expenditure of money, and requires the most careful planning and negotia- 

 tions of a financial nature before final arrangements are made and actual 

 work begun. 



Usually it is a comparatively simple matter for a rich city to raise the 

 necessary funds for the work by issuing bonds and taking care of the interest 

 and sinking fund charges in the tax-rate. With the railroads it is another 

 matter altogether. Railroads are not able to borrow money by means of a 

 specific bond issue for a purpose which is unproductive of revenue. No one 

 wants to buy such securities. The railroads, therefore, are almost always forced 

 to provide the funds out of revenue derived from the regular business of the rail- 

 road. It frequently happens that the expenditure of such large sums is a very 

 serious matter when the regular fixed charges, dividends, and other necessary 

 expenses must be provided for. 



From what has been said it is evident that the rate of the removal of the 

 grade-crossings on any one railroad system can be proceeded with only from 

 time to time as the company can earn sufficient money by means of its regular 

 revenue. Any wholesale expenditure would be disastrous. It is further evi- 

 dent that the public derives important and continuous benefits from the 

 elimination of grade-crossings, while, generally speaking, such elimination 

 means to the railroad company serious increases in its fixed charges for interest 

 on the money expended, serious increases in the cost of maintenance, and, in 

 many cases, serious loss of revenue from cutting of sidings and loss of business. 

 Notwithstanding these facts, railroad companies are generally willing and 

 ready to undertake the work of abolishing grade-crossings, provided the neces- 



