People's voice., 1899-09-14
Government Railroads,
Passengers Could be Carried
at Very Low Rates,

on railroads in the Arena.
In 1880, the government rOa ds OF Aus
tro-Hungary reduced fares in many cases
to one-half, and in some cases even to
one-sixth of former rates, the average re-
duction being more than 40 per cent for
the whole system; yet the traffic so much
increased that the total receipts were
S432, 900 more than the year before, and
in 1850, with traffic nearly fourfold what
it was in 1850, and over twice what 1t
was in 1859, the total receipts exceeded
those of 1889 by SI,25o,ooo, indicating a
gain, in two years, of over two millions
upon the year before the zone system,
when it reduced tariff, was introduced
And this is practically clear profit, for
the railway authorities declare that the
expenses of the roads have not increased,
the natural addition Of expense due to III
crease Of traffic being balanced by better
methods. As the net income i'll 1888 was
half the gross receipts, with the average
passenger rate at $40 cents a mile, and
freight at I $40 cents per ton a mile, and
a reduction of 10 per cent has only served
to increase the revenues and profits, it is
clear that a reduction to z cent a mile
for passengers, and the same for ton Of
freight per mile, would be practicable
even without any increase of traffic; and
with the increase Of custom sure to come
there would still be good profit even al
these low rates.
Many roads-like the New York, New
Haven & Hartford, the Boston and AL
bany, and others-sell season tickets at a
little more than Z a cent mile. They
would not do this if they did not know
that \ a cent a mile more than covered
the cost. The Pennsylvania, Reading,
Lehigh Valley, Old Colony, Boston &
Maine, Fitchburg, and others sell season
tickets at ITO of cent a mile. / am as
sured that the roads never figure on less
than so per cent profit in their passenger
traffic even in their communication rates,
and any one who notes the hundreds of
loaded trains that leave their depots
every day, and then remembers that with
a full train of 400 passengers the 7-Iorate
would yield 500 per cent profit, and with
600 passengers 400 per cent proht-any
one who ponders this will realize that the
roads are not running themselves at z
cent rates, and will begin to see how
they can pay dividends on their over
grown capitalization. The returns of
the English Board of Trade, as given by
Mr.. Wm. Gait in his evidence before the
Royal Commission on Railways, show
that the cost of running passenger train
one mile was IS cents in 1865, lit is only
33 cents now and with trains carrying
from 500 to 1000 passengers each, the
average cost of taking one passenger one
mile was less than I-Io of cent. Specif
ic instances were given i'll which railways
had, for long periods, regularly carried
passengers at Z cent mile, frst-class,
and 4 cent, second class. For exam-
pie, the London and Northwestern COM
pany carried passengers first class on fast
trains from London to Manchester and
return at Z cent a mile, and made pro-
fit of 200 per cent OH the transaction,
showing that the cost was about I-6 of
cent per mile first class.
In the United States the average cost
of moving passenger train one mile is
SO cents, or about ID cents car a mile
according TO the railway reports. A mod
crate train OF ordinary coaches will carry
400 to 600 passengers, so that with well
filled trains the cost is not more than Is
of a cent a passenger a mile. All the ex-
penses of railway traffic are taken into
account in figuring the So cent cost per
train mile (every train mile has 20 bear
its proportion of rebates, corruption
money, and innumerable wastes and as
l have shown that these expenses will be
reduced Z at least by public ownership
the cost per train mile will fall TO 90
cents and the cost of carrying passenger
one mile in full train will be Is TO .oI |
If cent.
Excursion trains can be run now from
New York to Philadelphia at a cost not
exceeding $500, including the pro-rata
rain share of waste and corruption Incl
lent to the present railway system. That
S, the railway could take 600 people on
me train from Philadelphia to Chicago
or 81 each, and bring them back for an
'ther 81 each, and cover all expenses,
abor, wear and tear, taxes, rebates, lobby
ees and all pro rata. Two dollars for
he single trip and 81 for the round trip
would give the road 100 per cent profit,
ccording to their own published esti.
mates of the cost of moving trains, which
re not too low, we may be sure. Yet
uring the Columbian Exposition, when
was of the highest Importance that
very American citizen should see the
ity of Beauty, the railroads charged !
-Orf1 eT5 ~ e1H Co. tl,o 49,. - 4,