The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-06-30
CHEAP EXCURSION RATES
ARE OR ARE THEY NOT REMUNERA-
TIVE TO THE RAILWAYS.
Long Runs for Locomotives Gaining
would Not Increase Revenues.

'The very great reduction I'm passenger
rates TO Saa Francisco made on account
of the Christian Endeavor convention,
said a railway superintendent, suggests
the question of whether or not these rates
are in themselves remunerative. and the
further question OF the prof1tableness or
low excursion rates put into effect at va
rious times for different occasions through
out the country. That the railroad compa-
MES cannot afford to do the whole of their
passenger business at the extremely low
rate of approximately cent mile goes
without saying, when 1t is remembered That
the average cost of carrying the passenger
traffic is between 2 cents and cents
mile. In these figures, however, is in
Guided proportion of the general expenses
of administration and repairs, which each
particular unit of traffic, both freight and
passenger, should bear. Certain classes of
freight would not move ar all If taxed with
their full proportion of general expenses
OF a railroad and in respect to both classes
Of traffic. The theory upon which low rates
are made is that they create business which
without them would not move. In so
far as extra travel is induced by reason
of low rates it would seem clear that when
the railroads get something more than the
actual cost of movement they are making
a profit from which profit, however, should
be deducted the loss arising from passen-
gers who would otherwise pay the regular
or higher rates taking advantage of the
reductions and timing their trips according
ly. AS to this last-named class the disad-
vantages are two fold-the loss arising from
the reduction in the fare and the conges-
ton of passenger traffic at the time the ex-
cursion rates are in effect, often causing
an increased expense in the matter of addi-
tional train and car movement, and the
attendant risk of claims being presented
for injuries to excursionists. 1t is very
common experience particularly with that
portion of the travelling public whose jour
neyings can be made to conform to ex-
cursion rates, that they will SO time their
trips as to secure the benefits Of such
rates, and as to this class the passenger
revenue suffers. It can be approximately
determined how much it costs to move any
certain excursion train over a road, but
there are many elements entering into the
computation. as for instance, the proper
ton particular train should bear of the
maintenance of the roadway and equipment
and the risk of accident, which render it
impossible to say with absolute exactneSS
how much it costs to run that train. Then
too, it cannot be learned what proportion
of the traffic is induced to move by the low
rates and what is the loss from the traffic
that would move any way and that takes
advantage of the lower rates. So each
general passenger agent will probably con-
tinue to do he has done in the past
make periodical reductions in the rates
and occasionally do little
better or little worse, according to
the standpoint from which it is viewed
than his competitor, without regard to the
fact that people have not usually more
than a certain proportion of their earn
ings that they can devote to travel eX-
penses, and without attempting to deter
mine for themselves whether a particular
excursion .sa1 rate is or is not remuneratiye
whole OF the traffic of the road"