Evening star., 1934-04-04
RAILS AND BUSES.
REACH AGREEMENT
Southeastern Rate Struc.
ture Approved by East
man-Up to |. c. c.
BY the Associated Press.

BY the Associated Press.
In a move to eliminate disastrous
passenger carrying competition, South
eastern railroads and bus lines are
cooperating on a new rate set-up.
It will, if approved, affect Capital
traffic .southward.
The step is heralded as one toward
settling the Nationwide struggle
waged for the past few years between
highway and rail carriers.
The agreement, announced Monday
night by, Hugh s. Johnson, N. R. A.
administrator, still Is subject to ap-
proval of the Interstate Commerce
Commission for the railroads part
and to modification Of the N. R. A,
code for the motor bus industry. II
sanctioned, its competitive passenger
fares will go into force on or before
June !.
A marked increase in rail rates Is
involved, with total abandonment OF
special excursions Bus fares will De
q small percentage below cost OF train
transportation.
Eastman Takes Part.
The pact was negotiated by Sol A.
Rosenblatt, transportation division ao-
miniStrator Of N. r. A., In conferences
with Federal Rail Co-ordinator Joseph
B. Eastman and executives OF the
transport services. It was concluoeo
last week in New Orleans.
It was undertaken as a result OF the
experimental rail rate cuts IN the
Southeast, approved by the Interstate
Commerce Commission last December,
under which train fares were cut from
3.6 cents a mile to is and 2 cents.
These cuts were understood, at the
time, to be laboratory experiments Tor
the whole country. If they increased
volume of business and revenues. there
was expectation that the roads OF the
entire country might follow.
Bus lines, fearing their business
would be destroyed, urged N. Il. A:
To help them. Railroads which had
suffered heavily and protested loudly
ever since hard-surfaced highways
made countrywide motorized trans
port possible, quickly listened to the
possibilities of truce.
Covers Intrastate Lines.
The agreement is intended to cover
not only interstate business but that
within States of the area as well.
Fares under it would be:
On railroads, 2 cents a mile, with
1.8 cents for round trip, and no ex-
cursion or special rates.
On buses, fiat minimum rates with
out free passes or party charter
rates, on the following basis:
Up to ITS miles, comparable for
competitive rail fares applicable be-
tween the same points"
From 176 to 299 miles, IS per cent
of rail fare; up to 499 miles, 80 per
cent, and 500 miles or more, rs per
cent.
Round trip bus rates would be not
less than 180 per cent Of one way.
Where highway mileage is 80 per cent
or less than the competing rail route,
the rail base rate per mile may be
charged for the actual highway mile
age covered.
Bus Costs Increased.
This will bring q material increase
In bus transport cost to many areas.
The area affected is bounded on the
west by the Mississippi, north along
the Ohio to East of Louisville, thence
down to Bristol, Va, up to Wash
ington and down to Norfolk. The
zigzag boundary is caused by omission
from the agreement of the Chesa-
peake & Ohio Railway, the Norfolk
and Western lines and the Virginian
Railway.
The omitted lines were not involved
In the rate cut of last Winter.
If successful, this use of the N. R.
A. code as a competition stabilizer
may supplant for a time Federal leg
islation to place bus and truck traffic
under the Interstate Commerce Com
mission.