Last evening Dr. Arthur T. Hadley began the first of his series of lectures on "Railroad Administration." A large audience was assembled in Sever 11 and listened to an entertaining and instructive lecture. The effect of modern railroads upon social growth was the first topic discussed by Professor Hadley. The necessity of government legislation was made clear, by showing that all the evils of various state laws would result unless the United States took the matter in charge. After a short resume of the history of the railroads in the United States the question of "special rates" was considered. Very often in the administration of railroads it happens that additional traffic can be secured if the price of transportation is lowered and if such traffic is profitable it is perfectly proper to take this new traffic at a lower rate than that at which other traffic is received; and there can be no injustice in this, So through traffic is favored often at the expense of that between intermediate points. The railroad ought not to be blamed for this, except when the rates are given by irresponsible subordinates, such rates usually resulting in great and pernicious monopolies.

There is, at present, a tendency to an increase in fixed charges and a decrease in operating expenses. This has been brought about primarily through the consolidation of small roads under one management, so doing away with innumerable agents and overseers. Everything now tends to an economy resulting from doing business on a large scale. It has been deemed cheaper to transport to Chicago from New Orleans via Liverpool in order to take advantage of the through rates. Modern industry in all other things as in railroads shows this tendency to decrease the operating expenses in production. This has taken a great hold upon the railways. It will soon make itself felt still more by other employments and in other branches of business.