The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-04-08
NO PROFIT WITH
TWO CENT RATE
fcontinued from, page one.I

bVV OkfV1 lin H.
/ gcontinued from Page One.1
and everything pertaining TO the
transportation industry, all of which
more than offsets the normal increase
For example. Mr.. Black testified
that the increased expense OF the
Santa Fe in Kansas in 1914, due alone
! to increased rate of pay since 1907,
contributing to increased expense OF
passenger service We're mentloned'
among them, the cost of new depots,
for which the Santa Re mas eXpenoeo
large sum in the past few years
The Wichita depot alone cost $2S4 8 AZ.
Even at a three cent rate, Mr.. Black
explained, the railroads could not
| hope to earn any such average on
| traffic. for the reason that the maxi
mum of three cents could be charged
only for the shortest mileage between
all points. All carriers between these
points must make the same rate as the
short line, if they hope for any or the
traffic, which results in the rate for
the longer lines being materially less
than the maximum of three cents All
of the carriers are in some instances
the longer lines. AS an illustration,
the Santa Fe under the three cent rate
in 1907 earned an average OF "a cents
per mile.
Further illustrating reduction in av-
erage rate per mile in the Santa Fe's
effort to participate in short line rates
Mr.. Black testified that from Topeka
to Abilene the Santa Fe earns 1.33
cents per mile; from Lawrence to
Leavenworth, 1.29 cents per mile;
from Wichita to Harper, 1.41 cents per
mile; from Hutchinson to Eureka.
LAG cents per mile; from Atchison to
Concordia, 1.24 cents per mile; from
Olathe to Pittsburg, 1.4s cents per
mile.
Low Rates and Revenue.
Many people are under the impress
sion that lower rates increase reve-
nues. This is an exploded theory,
Mr.. Black said. LAS an evidence that
lower rates increase travel and lessen
revenues I would call attention to the
fact that the number of passengers
carried one mile in Oklahoma, by the
Santa Fe. during the frst twelve
months of the two cent rate, increased
10 per cent while the revenue decreas-
ed 10 per cent. In Kansas the passen-
gers carried one mile increased 19.1
per cent; revenue decreased 2.SS per
cent. In Missouri the passengers car
ried one mile increased 5.65 per cent;
revenue decreased 1876 per cent.
have information that the intrastate
revenues of the Frisco line in Kansas
for July, August and September, 1908,
under the two cent rate showed a de-
crease over the same period of the
previous year, under a, three cent rate,
of s33,541, or 23.5 per cent
statistics covering Illinois, Iowa |
Nebraska, Missouri, Kansas, Okla |
homa, Minnesota and Arkansas, show |
that passenger traffic for the fiscal
year ending June 80, 1908, which was
the first year under the two cent rate, |
increased 1913 per cent, and passenger |
revenue decreased IL per cent, COM |
pared with the year previous under |
the three cent rate. Similar statistics |
covering Colorado, Dakota, Louisiana,
Texas and New Mexico for the same |
period, where there was no reduction |
in passenger fares, show that traffic |
increased 9.S per cent and revenue in
creased 1911 per cent. 1t will there
fore be noted that the traffic in the |
states where passenger rates were not |
reduced increased nearly as much as
in the states where there was reduc-
ton in the rate per mile"
Density of Population.
Mr.. Black declared it to be an es-
tablished fact that density of popula-
ton is the foundation on which pas
senger traffic can be developed. 1t
followed, therefore, he commended, that
a rate which is reasonable where the
population is dense must be unreason-
able in sparsely settled territory. He
the following table to show
that Kansas is out of line:
Population
Population per mile
raf1r