St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-06-17
THREE CENTS A MILE.
The Maximum Passenger Rate Fixed
By the Railroad Commission.
Northern Pacific Officials on the For
fe1ture 6iii--Euluth Magnates.

Copies of an order from the railroad COM
ruissioners fixing the maximum rate per mile
for passenger transportation were served on
the officers of all roads entering st. Paul last
night. The order includes all the roads in
the state and is the result of the conferences
held between the commission and road OIL
cials some weeks ago In the order is given
the average rate per mile hitherto charged
for local passengers as cents per mile,
while by the system of passes and other spe-
cial reductions the average rate per mile for
all passengers IL the state was 2.6o cents.
The rates in several other states is also given
as part of the report, from which it APP
pears that the average in the United States
is 2.42 cents. In the New England group the
passenger pays 2.15 cents; in the Middle
group 2.17 cents; in the Southern group 2.S2
cents; in the western 2.56 and in the Pacific
2.S4 cents
The order reviews the investigation by the
commissioners and gives many reasons for
the course taken. The following extracts
from the order will give good idea of the
order:
THE PASS SYSTEM
The free pass constitutes one of the discrimina-
tions in railway traffic which is always unjust to
the passenger who pays, and thus q cause of irri-
tation, and which constantly decreases the reve-
nues which the state derives from the taxation of
the gross earnings of the companies. The board
would be glad TO assist in abolshing it at and
forever While the reports for the years 1882,
1888 1884 and 1885 show a constant decrease
IN the average rate mile, they do not show
any decrease to the local passenger who travels
from point TO point and who pays maximum rate
of 4 and cents per mile The rate show grow
ing discrimination year by year in favor of certain
privileged travelers-a discrimination which is
contrary to the letter and spirit of laws which
has come to be in high degree unjust. 1t is the
opinion of the board that the most effective
method of dealing with these unjust discrimna-
tons is by a reducti on of maximum rates, until
point is reached where such discrimination Will
be out of the question.
The board says of the meeting of passenger
agents held April Is:
The position taken and Endorsed by all the
companies represented. that the time had not
come, in their judgment, for such reduction of
passenger rates as the commissioners considered
reasonable. AT the conclusion of the conference,
however, the companies requested the privilege
OF preparing and sending the board, before the LIST
OF May, statement showing the rev.
enue derived from passenger traffic in
this state, by main and trunk lines. the
expenses of the business and the va
rous kinds of tickets sold. together with such OBJ
servations they might choose to make against
the proposition of the board. The great majority
of the roads represented, have up to this date
failed to make any response in accordance with
the understanding reached at the conference.
The responses received as herein stated, were IN
complete and threw no particular Light upon the
points suggested.
THE REASON WHY.
The ability OF the roads to carry passengers
with the limitation proposed is believed by the
commission to be fully equal to the concession.
This is shown by the voluntary action of many
roads in which the conditions may fairly compare
with our own. In Massachusetts, while the legis-
lature has expressly reserved the power to reduce
rates, the roads themselves, by their own action,
have fixed rates SO low that the average rate is
but cents per mile. In every state where max
imum rate has been established, either by statute
by commission, the average rate of the
roads sthemselves is within the limitation. When
we consider this mass of facts bearing directly
upon this question, and that all lines of road in
the country of equal earnings per mile do carry
passengers within this limitation. it would seem
TO demonstrate the ability of our lines to grant
the concession herein required. In this connec-
ton it is proper to note the unnecessary and in
detensible tax the roads themselves place upon
the passenger revenues by cuts in rates. The
war OF rates expose managerial responsibility to
tie fair inference that their rates either too
high and they afford to play with the traffic,
Or that they are recklessly squandering the rev.
of the road. The enormous commissions
paid to 'scalpers'' also constitute heavy and I'M
necessary tax upon the passenger traffic, and
should be passed to the net passenger earning
and the public have the benefit thereof.
The board orders that the companies shall
not charge a rate exceeding the maximum
rate of cents per mile, provided that no
company should be required to carry any
passenger for less than cents. The order
will take effect July |.