Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

13. A. V.ctor Cabot and Arthur P. Hurter, Jr., "Equipment Scheduling
IA River System liansportation" (unpublished paper, The
Transportation Center, Northwestern University, 1965).
14. George H. Borts, "Increasing Returns in the Railway Industry,"
Journal of Political Economy, LXII (Aug. 1954), 316-33, esp.
pp. 318-21.
15. As Borts points out, much of the work done on rail costs was
done before the long-rud envelope curve of economic theory had
been developed. There is, therefore, little distinction made
between long-run and short-run costs. Borts feels that the
dichotomy between "variable" costs and "constant" costs is
identical to the current economics usage only when the shortrun
cost function is linear. Otherwise, the early railway
economists were including some variable cost in their constant
cost category. The extent of increasing returns, as this term .
was used by the early railway economists, referred to the relationship
between fixed and variable costs and is not the "economies
of scale" resulting from firm size. See Borts, pp. 318-
21.
16. W. Z. Ripley, Railroads, Rates, and Regulation (New York, 1927).
17. Rail Freight Service Costs in the Various Rate Territories of
the United States (Washington, 1943).
18. "Cost and Value of Service in Railroad Rate Making," Quarterly
Journal of Economics, XXX (Feb. 1916), 109-12.
19. The I.C.C. cost analysis is explained in I.C.C. Bureau of Accounts,
Explanation of Rail Cost Finding Procedures and Principles
Relating to the Use of Costs, Statement No. 7-63 (Washington,
1963), Chs. 1 and 2. References to the work of early
railway economists are found in these chapters also.
20. See, for example, John R. Meyer, et al., The Economics of Competition
in the Transportation Industries (Cambridge, Mass.,
1960), Appendix A, pp. 274-76. Also see, W. J. Stenason and
R. A. Bindeen, "Transportation Costs and Their Implications:
An Empirical Study of Railway Costs in Canada," Transportation
Economics (New York, 1965), pp. 121-23.
21. Meyer, et al., pp. 33-63, 177-320
22. Only a brief description of Meyer's study will be given here,
for a much more detailed discussion is presented in Chapter V
in illustrating the integration of statistical cost analysis
with the engineering process function for rail.
23. Meyer, et al., p. 43.
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