Evening star., 1935-07-17
RAIL RATE
TO SPUR TRAVEL
URGED BY REPORT
TWo-Cent- -a-MiIe Basis Pro.
posed to |. c. C.-PreS.
ent Fares Held High.
PULLMAN SURCHARGE
BAN IS>RECOMME TENDED
Commission to Hold Hearings in
Fall on Ways to Help Roads
Regain Traffic.
By the Associated Press

By the Associated Press.
A sharp cut in railway passenger
rates was recommended today to the
Interstate Commerce Commission by
one of its examiners after a lengthy
investigation.
In a report, Examiner Irving L
Koch suggested as q reasonable max
imum future fare basis rate of
cents per passenger mile in coaches
and cents in Pullmans.
The present rate, described as un-
reasonable, is 3.6 cents per mile.
Action by the full commission on
the recommendations will be taken
in few months.
The report found the Pullman sur
charge to be unreasonable and rec
commended its elimination.
Extra fares charged for extraor-
dinary and supplemental Pullman
service were held not to be illegal OF
improper.
The report added that low expert
mental fare bases in the Southern
and Western districts we're not un-
reasonable or otherwise unlawful.
Before action is taken. further
hearings will be held by the commits
sion beginning October 3.
Help Is Necessary.
The report asserted passenger rev.
enues declined so severely before and
during the depression that extraor-
binary measures are imperative II
railroads are to regain that traffiC
and insure a reasonable share of in
creased future trafic.
1t said the future looks promising
but the railroads cannot hope tc
share in that market except at fare:
more nearly commensurate with the
price and convenience of travel by
highway and changed economic con.
ditions.
Efforts by railroads to stem the de-
cline by improved service and facilities
were termed relatively unsuccessful
Favorable revenue results were listeC
from experiments In reduced fares II
the Southern and Western districts.
L LLldt NAACCC All
proved revenue results were due largely
to reduced fares and not to improved
business conditions. it added:
Considering the greater costs tt
the railroads for furnishing Pullman
service than for coach service and thu
greater effect of highway competition
upon the coach service than upon the
Pullman service, a spread Of so pei
cent or / cent per mile between ont
way fares for the two services, /:
the minimum that should be applied
by the railroads generally.
Maximum Fare Basis.
"A maximum fare basis, one wal
and round trip, for general applica.
ton of cents per mile in coache.
and 3 cents per mile in Pullman'
would be most likely to lessen the
transportation burden of the railroad:
and to harmonic with present day
economic conditions with consequent
fuller assurance to the railroads oi
realizing a fair return on their in
vestment.''
OF the Pullman Surcharge, the re-
port said it had met with sucf
marked public resistance that it wa!
resulting in greater injury than bene-
fit" to the railroads.
It added that extra fares main
tanned by some Of the lines for ex-
traordinary Pullman service between
large cities appear to be beneficial
and desirable" to both the railroad:
and the public provided that passen-
ger service rendered between the samt
points at regular fares is adequate"