PRE-WAR PRINCIPLES AND METHODS 35 increased work and productivity of Engineers and Fire- men and other employees, have been sufficient, after meeting the advances in operating costs, to pay a fair remuneration to additional capital investment and leave a surplus over and above all these outlays for increased compensation to Locomotive Engineers and Firemen. (5) A study of the financial and operating perform- ance of Western Railroads during the past five years brings an unequivocal and affirmative answer to this question. These gains are now contained in the accumu- lated surplus and other assets of the Railroads, and Loco- motive Engineers and Firemen are entitled to a further participation in these gains because of their efficiency and because of their increased work, duties and respon- sibilities. (6) In addition to the amounts, as stated above, which are now shown to be available, according to the sworn statements of the Railroads to the Interstate Commerce Commission, for the remuneration of the increased work and productive efficiency for Locomotive Engineers and Firemen and other employees, additional sums amounting to hundreds of millions of dollars would also be available to the present time, had the finances of the Western Rail- roads been wisely and properly managed. A review of the past history of Western Railroads, in general, dis- closes the fact, however, that the extraordinary gains in revenue, which have arisen from the bounty of the Fed- eral and State Governments, the populating of the coun- try, the development of trade and industry, the adoption of mechanical devices and improved operating methods, added capital investments, and the increasing work and efficiency of employees, have to a large degree been absorbed by fictitious capitalization, or dissipated by im- proper or misguided financial management. (a) During the twenty years following 1850, the Fed- eral Government, together with the State of Texas. made