Evening star., 1935-08-04

The first step, of course, was the
obvious 0ne-reduction in train serv-
ice. That didn't help. Motorized op-
GRAFTON was adopted in some quar-
ters, but had about the same effect
as local anesthetic-it was all right
as far as it went.
In 1881 the Frisco System, which
cuts through the Southwest from st.
Louis to the Gulf, put in a 2-cent
coach tariff, but competing systems
wrecked that in five months by whole
sale excursion rates-intended to teach
the Frisco a lesson.
The idea was terminating, though,
and other roads began to experiment,
even to 1-cent basis.
In the same year, 1881. the Inter-
state Commerce Commission showed
which way the wind was blowing by
reading a lecture to the roads on this
subject. Denying a Is per cent h0rl-
zontal freight rate increase, the COM
mission allowed certain surchargeS
for creation of a fund for weak car
riers to meet their fixed charges, and
pointedly remarked that the roads
were asking for about $500 ,OOo. 900 an
nually, which Appropriated their pas
senger revenue deficit.
That was a warning that the freight
business was carrying about all the
weight it could.
In October, 1882. the commission
moved again. and the case made then
has interest today.
Letter TO Major Lines.
With the sanction of the commits
sion, Commissioner Claude R. Porter,
then chairman, addressed the follow
ing letter to the major lines:
The commission has long been
concerned as to the effect of the con-
tinued decline in the number Of pas
sengerS carried by the railways OF the
United States, and in the revenue
from the passenger business, which
has not been offset by corresponding
decrease in operating expenses. In
addition, the fixed costs fairly appor-
tionable to the passenger traffic have
remained virtually constant. The
aggregate effect has been, and is.
growing deficit in operating income,
and a constantly increasing amount
which the carriers and the commission
are expected to take into account and
recoup in the adjustment of freight
! aLfS,a..s-a.. .,,as.
I'VE know that this has been given
the executives much concern, and that
some of them believe that reductions
in the basic fare will, by attracting
sufficient traffic back to the rails, off,
set the loss in revenue on the present
business moving at the high rates
established in 1920. Other executives
have different views. 1t seems clear
expected to support the improbable
passenger service indefinitely.
II am directed by the commission to
inquire if you have any views which
you care to express as to Q) whether
by general reduction in basic fares, a
betterment can be brought about in
the volume of passenger traffic, and
the passenger deficit may be lessened
or overcomed, and 20 what plan you
may have in mind or what suggestions
you can give as to how the users of
freight service may be relieved from
the burden due to improbable pas
senger service"
That also brought varying express
sions, but six months later there was
some positive action.
T. e. N Cut Coach Fares.
The late w. R. Cole, then president
of the Louisville & Nashville, with the
permission of the commission, cut
coach fares over the entire system to
cents; made Pullman mileage, 3, and
eliminated the surcharge.
The Southern, which had been ex-
perimenting with lower fares. then
went to ~ cents for coach trafic,
and on December /, Of that year, all
the lines in the South followed suit.
On the same day the Western roads
went on the 2-cent and Scent bases,
respectively, for coach and Pullman,
also dropping the surcharge. and those
rates prevail now. They have never
been given a permanent status though,
the commission simply extending them
for six-month period.
When Examiner Koch, at the in
stance of the commission, instituted
the hearing on which his report is
based, those roads using the lower
rates generally expressed satisfaction
with them, pointing to 1884 revenues
in support.
The Eastern dissenters, however, ac-
cording to Koch's report. offer as their
defense "the fear that their weakened
financial condition might not stand
the. strain, and that the volume Of
traffic handled by the highway is not
now as important as it will be when
greater prosperity returns. They point
out that the great proportion of their
passenger revenue is derived from
their best trains operating between
their principal Eastern and Western
termini. and that the bulk of the trafic
on such trains is so-cslled high-class
commercial traffic which must use the
rails"
Rate of Return Reduced.
The answering argument is that
special rates and excursions have cut
the average return per passenger on
these lines to 2.5 cents per mile, while
roads using the lower rates as
regular thing have abandoned these
special rate fields.
On the record, it will not be q sur
prise II the commission orders the
low rates applied uniformly, though it
has in the past refused to knock out
the surcharge.
The report of Co-ordinator East
man, who also is a member of the
commission, recommended a 2-cent
coach rate, e-cent rate that would
include Pullman berth and Scent rate
for de luxe service-room and all in
| cidentals. This combination travel
and lodging accommodation, however,
would entail operation by the rail-
roads of the Pullman service, and rep
resents step that probably is as yet
some time in the future. Other inno-