Evening star., 1934-08-12
Railroads Preparing
To Ask Higher Rates
BY HARDEN coLFAx.

While the railroads are preparing
to ask the Interstate Commerce
Commission to permit them to make
a substantial increase In freight rates,
some of them, particularly those in
the West and the South. admit that
during recent months they have been
actually making money by reductions
in passenger fares. In fact. q num-
Der OF the Western railroads an
nounced this week that passenger
business had picked up so substan-
TALLY that they intend to keep their
present schedule of reduced fares un-
til the end of September, 1898.
The Bureau of Railway Economics,
which has been looking into this sub
ject, finds that In the first six months
Of 1884 the number Of passengers
carried by the Western lines was 32.7
per cent higher than in the first half
of 1898. In consequence, passenger
revenues were AT per cent higher.
Statistics OF the Interstate COM
merce Commission and the Federal
co-ordinator of transportation show
that hauling passengers at a basic
fare of ? cents a mile, compared to
the traditional 3.6 cents of the East
ern roads, has resulted In this sub
stantial increase in passenger rev
enues. One line increased its num-
Der of passengers by So per cent
during the past six months and IT'S
revenues by 16 per cent. At the
same time the average cost to the
railroad of carrying one passenger
one mile has been cut 0.5 per cent.
South of the Ohio and east Of the
Mississippi, reduced fares make an
imposing showing. From figures for
the first four months Of the present
year, with a basic passenger fare OF
11a cents a mile, the roads In this
district carried nearly so per cent
more passengers than In the same
period OF 1893 and their revenue
from this traf1c was some $4,000, 900
more than it was last year.
Eastern roads have made substan-
tial reductions in special ways-ex-
cursions, special party fares. such as
to conventions, concessions 10 tour
lists and others. However, they do
not admit any substantial increase
in revenue.
The Southern Railway was one OF
the leaders in this movement TO re-
duce passenger fares. This road be-
lieVeS the lower rates should be con-
tinued for some months longer, In
order to demonstrate their effect. The
reduced fares went into effect De-
cember /, 1888, and at the same time
the Pullman sureharge was elini-
mated. The Southern Railway states
that since the reduced fares became
effective, almost every month there
has been an increase in the number
of passengers carried and an in
creased revenue.
The railroads meeting in Chicago
on July IS considered the increased
demands that will be made on their
revenues during the coming year and
how to meet them. It is estimated
these increases viii total some $780,
000. 900 and viii be due to payments
under the pension laws enacted by
the last Congress, increased wages
and higher costs of materials. They
plan to ask for an increase in freight
rates. but the forma, petition prob
ably viii not be presented 10 the
IziterState Commerce Commission be-
fore September.
The railway executives have rath-
er cautiously admitted that they do
not propose to ask for a blanket tn-
crease in freight rates: at least, not
just now. They intend to make fur
ther efforts to get additional rev.
enues by raising charges on such
trafhc as win not thereby be driven
into the hands Of their competitors
trucks, busses and waterway bargeS
(copyrisht 1e3Al