The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1908-03-13
RAILRoAD BATES.


tiOnAry PRESS Of loss OF revenue Al
the result Of reduced passenger fares
have net been 5ustifisd in any sector
} where the experiment. has been made
, In the North and West a trial Of the
two and one-haif cent rate soon dem
; onstrsted that instead OF being a dis
vantage 10 the railroads Il was actual
~ revenue producer, But this did
not convince the corporation defend
era in the South and they relied upon
the argument that because this sec
ton was not so thickiy settled as the
pegicns where the experiment had
beer made. different result would
follow he experiment in the South.
Several months ago the Southern
railway put a two and one-hslf cent
rate into effect in the States OF Geor-
gis and North Carolina and more re
Gently II has taken the same action in
Alabama aAd after the FIRST of next
month viii give Tennessee also the
benefit of the reduction. There has
been no little interest manifested by
both the friends and the opponents OF
the reduced rates to ascertain the ef-
I, CT OF the lower fares on the earnings
Of this road and IL lie q matter Of great
gratincation TO the advocates Of re-
form that instead OF reduced earnings |
there has been a substantial gain In |
the passenger revenues OF the South |
ern during the past seven months.
For the seven months ending the
middle OF February the passenger
earnings Of the Southern system were
almost 100000 in excess of the reve-
nues from that department during the
same period of the previous year. This
increase was all made while the re-
duced passenger fares were in opera
ton The result not only justifles the
position Of the advocates OF the meas
ure, but shows the wisdom of Presi-
dent Finley's course in voluntarily
agreeing to the reduction.
The law of supply and demand holds
good in the railroad business as it
ioes in every other line Of commercial
II industrial business. Lower passen- c
ser fares have made il easier and {
,heaper for the masses to travel and a
hey have not been slow to take ad- p
-antage Of the opportunity. The Il
asier and cheaper it is for the people
o travel the more passenger fares =
he railroads will collect. q
It should also be remembered that d
uring the seven months or greater a.
art of the period in which the re- re
uced rates were in effect on the c.
outhern, the country was suffering OF
ON business depression: thousands uI
ere out OF employment and the In OF
,mes Of others were reduced to a liz
oint where they were barely able to 10
eet their necessary expenses, leav-
z nothing for the luxurfes Despite as
lverse conditions, however, the re- 81
iced rates brought an increase OF tic
venue to the Southern railway. Had to-
ere been a reduction Of its income tr;
ON this source during the period co
it would not have been any an
against the lower fares. But no
is gratifying to know that the con- ad
Try was the case. res
It is fair to assume that the same Br
suit will follow a reduction in pas bic
nger rates in Tennessee. The pop the
ltion is as dense in this State as In
Y of the States traversed by the uni
uthern and its people are as pros spe
.ous as those Of any Southern State. TIL
Hence there is no reason why the arc
lroads should not in the end profit qui
m the lower passenger fares. the