The Detroit times., 1915-01-12
RAILROADS FIRE
FIRST GUN OF
HIGH FARE FIGHT
Pere Marquette Petitions Legis-
lature for Increase in Pas
\ senger Rates
PRESENT RATES MEAN
LOSS, is STATEMENT
Other Roads Expected to Follow
Lead Of "Weak Sister"
in Near Future
From q stan oorrespondent.

Michigan railroads for higher rates OF
passenger fare was inserted today
with the reading. before the Michi.
gan legislature, OF petition from the
receivers OF the Pere Marquette rail.
road asking for an Increase not only
\ for that system In particular but for
all others in Michigan.
The Pere Marquette admittedly in
need or help, thus offers the opening
through which Michigan railroads
hope to drive the hearse OF the two
cent fare law.
The petition sets up that, during
the last fiscal year, the average rate
per passenger per mile on the Pere
Marquette, was 1.S9 cents, while the
actual cost OF handling such pas
senger traffic was 22 cents. AL
though the legal rate of two cents, the
competition 10 which the road is sub
ject through a great portion OF its
route, is responsible for the lower
average, the report says.
That other railroads expect TO use
the Pere Marquette as the battering
ram with which TO destroy the preju-
dices OF legislators against increases
In rate OF fare, Is indicated by the
following paragraph from the com
= munication
I'VE understand that the several
railroads OF the state are now prepar-
:. ing data for submission TO you and.
insofar as we are concerned, we Will
endeayor 10 prepare the information
which we are directed to Jay before
YOU along the same lines, so that all
the data may be considered collec-
lively as constituting one complete
case. This Is with the idea. as We
understand it, that confusion will thus
| be avoided and greater clarity OBJ
tanned In the consideration OF the en-
4 tire matter"
The communication was prepared
after a lengthy conference between
4 Gov. Ferris and attorneys for several
| Michigan railroads early in Decem-
Il Der. The governor is understood TO
Il have expressed himself as favoring
passenger fare increases provided the
roads could make a showing that IL
was necessary.
After reviewing the position in
which the road finds itself, the com
1 munication cites the interstate com
merce commission as follows:
In this connection. the findings OF
/ the Interstate commerce commission
with reference TO interstate traffic
may be Of interest and We invite your
attention TO the views of the commits
sion as set forth in its recent de-
cision In the so-called i've per cent
case. In the opinion in that case, you
will note that the commission lays
down as one OF its premises, the
fundamental idea that railroad com
panies perform function of the state
and that the state owes them an OPP
portunity TO earn a fair return on
the money invested. Ii then proceeds
TO show that passenger as we'll as
II freight transportation should con-
4 tribute its proper share Of the cost
OF operation and return. pointing out
that since the passage of the two-cent
iare laws there has been an estimat-
ed loss on 10 roads in this territory
Il OF $1S000,000. the Pere Marquette
alone sustaining an estimated loss OF
Fl S4,266, 232.16. or at the rate OF 5000 900
per year The commission expresses
the belief that If statutory fares are
clearly shown TO be unduly burden
some, the people will cheerfully ac-
quiesce in reasonable increases, and
that the necessary legislative author
ity will be promptly given.
Contending that It is impossible to
operate steam lines on as cheap a
basis as electric roads, the petition
concludes as follows:
The Pere Marquette Is not, strictly
speaking, a through line. 1t is more
properly local system. II is essen
TALLY and primarily a Michigan insti-
tuition. II has no rich and powerful
relations Its geographical situation
,nt nd NTnD IN 4a a
ed on three sides by water, and sub
1 ject TO the competition OF lake car
riers. II IL could have the same den
sity OF population as many other
roads OF the same mileage and cap
italization, and II II could have the
same rates that roads in other parts
Of the country have, 1t would not to-
n lday be in It's deplorable condition The
freight rates in the territory which II
serves. are the lowest in the United
States.
I'VE most earnestly invite your at
tention TO the consideration OF what
,hall be done to relieve the present
situation OF the system, which, as we
have said, is primarily Michigan's rail
road. II serves As counties OF this
state and population OF 1000 900
people. They are depending on its
service. and IL Is our belief that when
they realize the existing state of af-
fairs, they will not only be willing
but anxious TO have the legislature
restore in part, at least. the former
passenger fare rate, TO the end that
compensation more nearly adequate
may be received for the service rem
dered, and that the road may thereby
be placed In position where II will
be possible to give better service and
more OF II.
THE considerations which prompt
ed the reduction In the rate eight
years ago are certainly now without
weight. Wages have been increased.
Every manner and kind OF supplies
cost more. In other words. the high
cost OF living has affected the road
lust as Il has everyone else. One be-
lief. and possibly the principal argu-
ment I'm 1907, was that II passenger
!. fares we're decreased, more people
would ride, and revenues. consequent
ly. would be greater. This has not
proved true. As a matter OF fact the
normal yearly increase is little more
than half what IL was previous TO the
reduction.
The only desire OF the federal
court and its officers. the receivers. Is