Evening star., 1933-04-16
PERPETUAL Railroad Excursions
BY FREDERIC ]. HASKIN.

The latest bid of the railroads of the
United States for large scale patronage
Is a sweeping reduction In the fares
charged for carrying passengers: After
long study and many conferences
among railroad executives, . movement
has begun which, If continued. will
provide for the American people excur-
sion rates, not for special trips or spe-
cial occasions, but all the time.
Already several large systems have
filed new tariffs with the Interstate Com
merce Commission. They propose to
make effective Yates Of passenger fare
SO drastically reduced that they recall
the old days of rate wars before the act
to regulate commerce was passed. over
many miles Of railroad the new tar1ns
would put the fare down TO only Ia
cents . mile, while other routes are
Offering rates down to 2 cents.
The theory on which this new move
Is based Is that American railroads
must 60 on q sort Of five-and-ten-cent..
store basis. They must make railroao
travel so cheap that the people cannot
afford to travel by any other means OF
transportation.
It Is coming to be recognized by every
branch of business activity that charges
must be brought down. Merchants have
reduced their prices on many articles
more than hall, and the prices OF some
raw materials have declined IS per cent
and more. The rates charged for rail-
road transportation have moved down.
ward more slowly. There are several
reasons for this. A railroad system has
a vast amount Of capital invested and
must, II 1t possibly can, earn enough
money to pay interest on its bonds and
dividends on its stock. 1t Is the one
kind of business which, once taken up.
cannot at will be abandoned. The rates
which can be changed are strictly regu-
lated by the Government.
While many people never cease com
planning Of high railroad rates. 1t Is
q fact that the Interstate Commerce
plications to reduce rates as 1t does
to increase them. Out Of the goodness
Of its heart, or out of the belief 1t
can make more money. no railroad can
voluntarily charge shippers Of freight
or passengers lower rates. First 1t must
ask permission of the Interstate Com
merce Commission to do 50. This per-
mission is not always easy to obtain.
Difficulties in Fixing Rates.
Congress enacted the La Follettte
law providing that rates shall be based
on q physical valuation. While, orgi-
nally, this act was intended as q curb
to prevent rates from soaring to uncon-
scionable heights, since passage Of the
law 1t has, in many cases. prevented
downward revision. Roughly $40
600 900 900 has been placed as q value
on the American railroad system by the
Valuation Division Of the Interstate
Commerce Commission. The mandate
Of the Congress was that the commits
sion fix rates to pay . fair return on
such investment Is might be found The
commission found the investment and
is. necessarily. fixing rates in accord
ance Herewith. Times have changed
and the rate necessary to maintain the
valuation has often ceased to be q
workable rate.
Another element enters. The com.
mission is charged by the Congress with
the duty Of preventing discrimination
and prejudice. Suppose some railroad
applies for permission to reduce 1t,
rates and shows that it can do busi-