The Washington herald., 1909-03-10
Against the 2.cent Fare.

The 2-cent fare legislation Of the
group Of States eentering about St. Louis
and Kansas City has been given Sc
rious judicial setback by the adverse de-
ision OF Judge Mcpherson. OF the United
states District Court on the Missouri
tatutes reducing freight rates and pas
-enger fares. 1t will be remembered that
when application was originally made TO
lim for an injunction against the 2-cent
ate, Judge Mcpherson was not sat
sled with the ex parte showing made by
he railroads. and at his instance the
over rate was put into effect expert
mentally. 1t has now been tried for more
nan a year in Missouri. and the judg-
-aent Of the court is that It fails to yield
n adequate return upon the intrastate in
resment. On this point Judge Mcpherson
-ays:
The passenger earnings under the 2-cent fare
w of 1907. allowing nothing for extra cost over
Interstate business give no return whatever 10 the
.ock Island. St. Louis and Hannibal. Kansas City.
linton and Springfield. and the Great Western.
he other companies viii have the following: The
c. Louis ard San Francisco. between 5 and 1 per
mt: the Santa r. between and per cent: the
ansas City Southern. a small fraction over . per
mt; the Missouri. Kansas and Texas between ?
ID Per cent; the Burlington, between and Der
mt But all this IS arrived at By allowing no
xra cost of service. But % add the extra cost for
eight ard Iasssnger. there are no earnings over
xpenses This is oouhscation under the Constitu-
ion"
The attorneys for the State maintain
hat 1t is not fair TO assume that the
intrastate service is more expensive than
through business. and they object also TO
The method adopted by Judge Mcpherson
cor ascertaining the proportion Of the to-
,al value Of the railroad property upon
which the 2-cent intrastate rate must
Yield a reasonable return. But as 10
these matters. Judge Mcpherson accepted
he best available railroad and judicial
authorities. and his decision rests upon
a most careful consideration Of all the
factors involved. Among the facts brought
cut in the course OF the hearing was that
the increase I'm traffic due to the lower
rate was less than 3 per cent. and the
increase in revenue through the abolition
Of passes was less than 1 per cent.
The opinion. though it may be contested
by the State, is expected by counsel for
the railroads to lead to the eventual over
turn Of the 2-cent rate in the neighbor-
ing States OF Nebraska, South Dakota.
Oklahoma. and Minnesota. On recent of
the news Of the decision. the Kansas
senate made an adverse report on a 2-cent
fare bin which had already passed
the house Most OF the Southern States
have retreated from their attitude "a
vorable to the 2-cent rate. though It IS
still in force in Virginia. In Pennsylvania
the- 2-cent rate has been judicialIy an
nulled- In New York It was vetoed by
Gov. Hughes, and is now. we believe. un-
DER consideration Of the public service
commission. II is stil in force in Ohio.
Michigan. and some other States. On the
whole, the case Of the 2-cent fare.
save in thickly settled portions OF the
country. where It has been voluntarily
established. appears 10 be going against
the legislative theory that cents a
mile is a profitable charge for local pas
senger traffic.