Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-08-21
INDICATIONS THAT INTERSTATE
COMMERCE BOARD MAY Null
LIFY 2.cENT LAWS.
MANY STATES INTERESTED
IN PROSPECTIVE CHANGES
Recent Discussions Of Commission In
dictate Tendency to Grant Higher
Passenger Rates-Traffic Said to Be
jus. About Paying Cost of Operation
on All Roads.
scial 70 Times Republican.


1erstate commerce commission repeal
or nullify the various state laws for
lower passenger fares? II the rail-
roads make showing before the COM
mission that the passenger fares are
non compensatory VIII there be an or
der for raising above the 2-cent rate
al along the line?
Railroad men say that the decision
in the 8 per cent rate case would in
dicate such a possibility. on This sub
ject the. commission made the following
statement Of advice:
Increases in passenger fares have
recently been made in New England,
following conferences between the
state commissions, the carriers. and
representatives OF the public, and the
appear TO have been cheerfuAy ac-
guessed in by The travelling public.
Extra charges for special accommoda-
tons have also been made
The need Of additional revenue is
greatest in Central Freight Association
territory, and existing statutes il OHIO,
I Indiana Illinois and Michigan may be
obstacles 10 the raising OF passenger
adent that i these statutory fares are
clearly shown 70 be undu.y burden
some 10 the carriers the people OF
these great states VIII cheertully ac-
Quiesce, as the people Of New England
have done in reasonable increases, and
that the necessary legislative authority
viii be promptly given. The travelling
public Is giving expression 10 its de-
1nands for better service. better accom-
! modatioas. ana for tSe adoption by
\ carriers Of all the devices that make
/ for safety a public thai demands
+ such service can not reasonably OBJ
4 ject TO the payment q a reasonable
compensation therefor
Passenger Business at Cost.
K This advice to the railroads IS based
Z on an investigation which showed
practically that the passenger business
is done about at cost and that in seven
1 years the loss Of revenue 10 the rail-
roads in central freight territory, due
10 reduction in fares BY legislative acts.
was about $4,000. zoe. This Is on the
resumption that the travel would have
been the same. On ten roads the an
InuaI reduction Of passenger revenue IS
is2,ST5.s3S The argument presented by
the commission for the advance II pas
senger fares is this:
Passenger fares are paid directly
ito the carriers BY those making USs
of the service. and they know what i
lcosts them PAYMENTS tor freight
charges. while less direct, are none The
less actual The general public does
not know. and probably does not stop
20 consider what proportion Of The cost
OF ton Of coal, or OF the price Of Il
dwelling. or the rent Of an apartment
represents freight charges. but the cosf
Of freight iransp or,ation enters into the
iC0sl OF practically everything Used by
the public. In many cases. 10 be SG-e
freight charges represent but small
proportion Of the total cost OF things
used or consumed, but il is quite PROB
able that the average family pays
much more in the course of a year as
freight charges than il does in passea-
Ter fares. We know OF no provision u
law under which we would be justified
in increasing freight rates 10 provide q
return upon property used exclusively
in the passenger service. much less to
take care Of losses incurred in such
service. In our opinion each branch OF
the service should contribute its prop
or share OF the cost of operation anc
u return upon. L.!S pTDpSTty LSNtLeG -
the use Of the public
Here, then. seems 70 be q declaration
that 50 far as the interstate commerce
i commission IS concerned II Is not going
/ 20 approve Of Increase in freight
charges SO long as il Is 6eEonstrabl bic
l. that passenger fares are 50 low
l. Specific illustration is given as 70 what
l. IS meant BY quoting as 70 the expert
ence Of the New Haven road. Howard
l. Elliott reported that for the eight
months ended Feb. IS last the passen-
l. ger earnings we're s1lS68.452 or 500
l. per cent Of the gross earnings. but did
]. not contribute anything directly 10
l. taxes and interest" while the freight
earnings Of s2I,24T909 or 49, per cent
Of the gross revenues. contributed 81, I
81, 0S9 toward taxes and interest
Railroad Men Not Agreed.
!. But railroad men are not II full ac-
!. cord with this view that passenger
fares should DE- raised first. For in
J. stance, the president Of the Erie is
!. quoted:
Il believe tina, passenger fares
!. should be reduced rather than in
!. creased and that the expense Of this
service should be prorated over the
J. freight tIdff.;- :s<s:s; &c,
4. il. ! would even be in favor OF reduc-
ing passenger fares 10 cent per mile
4. il corresponding advance could be
prorated against the freight business
!. Some Of the railroad organs call at
4. tention to the fact that the interstate
commerce commission has the power
a. to nu!lify every state law in regard 70
q. lower fares. and ii will not be neces-
n. sary to appeal TO any legislature. The
n. principle laid down in recent cases
n. which means that the interstate rates
n. take precedence over all state rates
l. and that the latter must give way when
they conflict with the former, disposes
= of the entire question.
1t now remains to be seen whethe.
the railroads will take steps to have
:, the 2-cent fare laws negatiyed in order
- to get more revenue.