Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-05-02
Relations of Railroad Tariffs 10 Profits

Relations of Railroad Tariffs 10 Profits.
The following extracts from the replies OF
some of the railroad companies of this state to
a circular issued by the railroad commissioners
last summer, show what results have followed
reductions in fares and freights in some in
stances:
The Boston and Albany railroad reports that
ga new passenger tariff was adopted on the first
of October last, and has been in force since. It
was estimated that this tariff, as applied to the
business of 1871, would cause loss of about
S140,0 in The passenger receipts. In compar-
ing the business for the month of October, No
vember and December for 1863, 1870 and 1871 I,
we find these three months in 1870 show a gain
of Is $40 per cent over the same period in 1869,
while for 1871 as compared with 1870, the loss is
about 81 900 per month, Notwithstanding a large
increase in the amount OF work done. The
freight tariff now in force was issued February
/, 1858, and under its operation a large reduc-
ton in rates has been effected. On coal, lum-
Der, glass, sand, pig'iron and live stock the
rates have also been reduced since 1869 from %
cents to S1.20 per ton" n
The rates for freight from 1859 to 1861 and from
1869 to 1871 are given, Showing that the rate
received by us for the last three years is % per
cent less than the rate for three years prior to
the general rise consequent upon the war, and
that too while we are paving for labor full six
period"
Concerning the changes made by isis road
the commissioners say:
"It was a source OF great regret to them that
the reduction effected was not of a more decided
naturez~a regret which is increased by the state
ment contained in the reply of the president of
the road, that the immediate effect OF the reduc,
ton, such as it was, was, through the increase o
traffic. TO reduce an estimated loss of S12 900 per
month to the almost nominal amount, under
the circumstances, Of $1,000 per month. The full
effect of these changes cannot, of course, be felt
at once. Nine months of the first year of this
experiment are yet TO elGpSe, and il remains to
be seen whether the estimated loss of $40, 900
in this case, will not, at the end of the railroad
year, result in an unequvocal net gain. +
So decided reduction as that suggested
by the commissioners was perhaps premature
and in view OF the facts stated in the above re-
plies could not, possibly now beventured upon:
result in a financial success, there will be strong
Justification for urging upon the corporations
new and holder step in the same direction. The
eXpediency of an early and decided reduction in
The charges on the carriage of coal has also been
made the subject of earnest recommendations
addressed to the management of this company
on the part of members of this board, The
above communications would seem to Justify
hore that an early tariff revision in that respect
may be ANTICIPATED.
The effect of reducing the freights on the
Cheshire railroad Is shown by the following
statements of the superintendent:
"The date of our freight tariff now in force
is June /, 1870, which gave general reduction
from former tariffs both in rates and by CLASH
hcation, but being so varied that it is impossi-
Bile 10 give an exact synopsis of items. We
think, however, it amounted to about twenty
per cent. Since June 1, 1871, we have made
further reduction by special contracts, and by
continuing the summer rates as per tables
shown in accompanying tariffs. In regard to
the effect on our business consequent upon the
reductions alluded 10, we would state in general
terms, that we think it has stimulated business
and encouraged manufacturing and other inter-
ests at our local stations, that if our present
earnings have not thereby increased, we think
that will be the final result"
The New Bedford and Taunton railroad re-
ports reduction Of II per cent. in passenger
fares made Oct. 10, 1870, and a reduction of 20
per cent. on freights in lots of six tons or more
and add:
"The purpose and object of the discount on
ireights was and is to encourage and promote
manufacturing; because every manufacturing
establishment in operation here not only re-
quires the transportation Of the raw material
used IN and its production out, but 1t adds to
the population and prosperity of the city, and
thereby increases the travel upon the road"
The result of reducing fares on the Old Colo,
ny and Newport railroad is stated by the presi-
dent, who says:
"a new passenger tariff has been adopted to
take effect Jan. /, 1872, reducing the maximum
rate on local business TO three cents per mile,
and the average rate to 6-10 cents per mile.
between Boston and South Braintrec, from
1866 to 1871 large reductions were made est
mated at about ~ per cent, upon the average,
from the tariff of 1866. The larger part of this
reduction was made on Jan. /, 1871, and
sufficient time has not elapsed to see lis full
tnfs
Boston and South Braintree and intermediate
stations were, in 1866, Sl02 ,59S so; in 1869,
S15O,2478; in 1870, S156, 55532; and in 1871
Sl63,S26.92. The gain in receipts in 1871 over
1870 was S72l4.6O, or about per cent. The
average reduction in rates in 1871 from 1870 is
estimated at "A per cent. Between Boston and
Wollaston Heights the number of Passengers
has increased from 1878 in 1859 to 1920 in
1871, and the receipts from S2009.5 80 to 5000 Of
while the rates have been reduced about 80 per
cent on single sales, 25 per cent on package, and
per cent on season tickets. The following Is
an extract from the annual report of this COM
pany for 1915
Considerable reduction has been made dur.
ing the last year In the local fares and freiehts.
especially in the district within fifteen miles
IRON Boston. This has resulted in an immedi-
ate increase in our business, and the develop
meit OF the towns and villages along the line of
the road promise greater increase in the ft-
tuTe"
The Providence and Worcester railroad com.
pany reports, under date of December IA, 1871 /.
I'VE contemplate an immediate reduction in
our rates of transportation, both passenger and
freight, and shall give particular attention to the
rates on coal iron, sand and articles analagou US.
We should have effected a reduction before this,
but for the fact that our business has been in
great measure crowded into the closing months
Of the season, thereby rendering such reduction
mpracticable, except at the risk of creating more
or less dissatisfaction"
The Worcester and Nashua railroad company
say:
1--WE made a reduction Of our passenger fares
of about 10 per cent on the LIST of January, 1871
Between some points the reduction will show u
larger per cent and between others not quite as
much, but think the average is even more thnn
10 per cent. Our passenger earnings show a
FILLING off Of about $40, 900 Tor about per cent?
during the twelve months OF 1871 as compared
with same time in 1870"
In reviewing the returns, the commissioners
report;
1T is very noticeable fact in connection with
the replies to the circular of August 10th, that
the heaviest prOportiOnatc reductions during