Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-04-02
WILL RAILROADS
. INCREASE RATES?
TRIAL AGREEMENT FOR ONE
YEAR EXPIRES APRIL IST AND
ROADS MAY SEEK To RESTORE
THE OLD RATES.

Thursday. April !. will mark the ami
yersary OF the inauguration Of reduced
passenger rates in Georgia and a number
OF southern states. The day will also
witness the expiration OF the one-year
agreement between a number Of southern
lines and Governor HOke smith by which
the reduced rates were 10 be tried for
twelve months time instead OF the re-
auction OF mtrastate rates in several
states being fought in the courts
What are the railroads interested going
TO do. since the time for the one years
trial is over? This question is being
asked on all sides Ofhcials of the lines
decline 10 be quoted, but il is rumored
that II the analysis of losses in revenue
warrants IL, efforts will be made TO re-
store the former rates, which prevailed
Hp 70 April /, 1905. when Governor Smith.
assisted BY the chief executives Of other
southern states. secured compromise
by which the reductions-~ interstate ana
irtrastate, were TO be tried for one year.
Officials Claim Loss
omcials Of the lines. while refusing to
be quoted, claim that the revenue in
passenger rates shows large loss. The
Southern railways reports tor the past
twelve months show a loss OF between
81. O00ooo and s.. Us 600. This is charged
up, so a prominent Official says. to the
decreased rates and TO general conditions.
The same official states that rates have
caused the greater portion OF the loss
What action will be taken to restore
the former rates depends upon what the
final analysis of the revenue reports shall
disclose This will require several weeks
PERHAPS nearly two months At the end
or that time the Southern railway will
take steps TO determine what shall be
done
II steps are taken to secure the restora-
ton OF the old rates IL will be about June
/ before the tight for the old rate Is be-
gun.
II the Southern railway decides TO ask
for the restoration. IL will in every prob
ability be joined by competing lines.
which were forced 20 reduce rates when
the Southern railway agreed 10 enforce
the reduced rates for one year
An official of the Southern railway
stated Wednesday that il all depended
t-pon what the fnal analysis OF the re-
ports OF the revenue would show. He
said:
There has been a loss OF over slooo. 600
in the passenger revenue. The loss may
reach s, 25.0o0. While rates and general
financial conditions are responsible for
this decrease. the reduction in passenger
fares is largely responsible for the de-
fctt-
In its agreement TO reduce rates for
one year the Southern railway agreed to
try the reduction one year. II did not
bind itself TO continue the reductions af-
ter that period. The compromise was
that, the Southern railway would not
nEht the intrastate rates OF several
states, but would abide by the reduction
for one year. would make an Interstate
rate Of IL cents mile The agreement
was trial for one year instead Of max
mig a fight on the action OF the states in
the cOurtsl
The year Of trial expires at widnight
"Wednesday night. 1 cannot say what the
future action will be. No one can. II
will be a matter Of weeks before all OF
lhe losses can be accurately itemized-
Then the reports viii have tn be anal
yzed, and we will have to- reach a def
mite decision as TO what exactly caused
the losses. When we have this informa-
ton In hand, then We car fully decide
what 10 do
History OF Reduction
The reduction Of passenger rates fol-
lowed a conference of governors in Allan
"a over a year ago The chief execu-
ttves OF Georgia, Alabama, the Carolinas
and Virginia met and discussed passen-
ser reductions. These states had for the
rates and were mutually interested.
Correspondence passed between Cover
nor Smith and President W. W. Finley.
OF the Southern railway. In regard to
the rates and President Finley finally Of
fered a compromise which was accepted.
The agreement was for one year.
In his agreement President Finley Of
fered to abide by the action Of the states,
respect the intrastate reductions and
= =
through the states mentioned Mileage
books were also to be reduced and a rate
OF cents a mile for mileage books for
interstate use was authorized An intra-
state family mileage book was also au-
thorized-
Railroads which were in competition
with the Southern railway were COM
PEELED to follow suit II they wished to
secure business in competition with the
Southern railway.
For one year this agreement has been
enforced Now the year is ended and the
question OF what viii the railroads do is
asked.
State VIII Not Resist
Governor Smith is Of the opinion that
the withdrawal Of the several railroads
from their agreement for 2-cent, mile
age rates viii not be in any way resisted
BY the state II will mean, he says,
merely that the 1-2 cent fat rates will
become effective in all passenger fares.
The only exception to this will be the
Atlantic Coast Line. which had a fat
rate OF IL and was allowed on its own
application 10 enter this 2-cent mileage
agreement with the other roads. The
Coast Lines rate viii revert to IL
cents
Governor Smith said that the foregoing
was his recollection Of something that
took place IN writing nearly two years
ago. and referred his inquirer to the files
OF the railroad commission. The COVER
nor believes there was no time stipulated
in the agreement and the roads were az
liberty TO withdraw when they choose.