Evening star., 1935-08-04

on October 3, when the Interstate
Commerce Commission inaugurates a
contradictory-sounding proceeding to
determine il the railroads must revise
downward their passenger fare sched-
ules in a new effort to boost revenues
When a thrifty housewife goes
marketing she looks over newspaper
advertisements to see where competing
merchants are offering the most
value for a dollar. Particularly does
this apply when the purchase of
some certain product is contemplated.
1t is beginning to dawn on inter-
ested observers that this same prin-
ciple is being applied by the travelling
public in buying transportation.
Two-Cent Fare Suggested.
The forthcoming commission action
Is oral argument on the report of
Irving L. Koch, examiner, which pro-
poses that coach fares be put at 2
cents a mile; travel where Pullmans
are used, at 8, and calls for elimina-
ton of the Pullman surcharge, which
amounts to so per cent of the basic
charge for the Pullman accommodation
itself.
At present the nominal rate for rail
transportation is cents mile,
whether coach or Pullman is used,
although Western and Southern lines
tentatively have in effect lower tariffs.
The surcharge of course stands by
itself.
When the commission goes into that
October session it's not going to be
q case where the. Government stands
on one side and the united rail sys-
TENS of the country on another, for
this fare issue has brought a decided
cleavage among the lines themselves.
Theoretically the Eastern district
stands in opposition; actually the New
York Central, Pennsylvania and New
York, New Haven & Hartford are the
sole dissenters of the group.
b. & o. Favors Reduction.
The Baltimore & Ohio, which is in
this alignment, favors the reduction;
the Norfolk & Western, which splits
Eastern and Southern territory in the
so-called Pocahontas region, already
has applied it, joining with Southern
and Western lines. A commission de-
cision in favor of the lowered rates
will give permanent form to those al
ready in effect and, in addition, bring
In the Eastern opposition. ..-s.-.-.a...
The railroad picture in the past
dozen years had its parallel in another
generation. In came the railroads and
out went the canals. In the present
situation the highway carrier, substi-
tuting gasoline for water and animal
power, emerges victor in the second
round.
Here's the picture.
In 1876-1880, when the records of
the Interstate Commerce Commission
began, the average per capita expendi-
ture for rail transportation in this
country was $282. BY 1920 it had
reached 1924. In 1888 it was $262.
Records for the country for 1884 are
not available, but the figure for that
year will not show marked differ
ence over the previous twelve-month.
Travel was good in the South and
East; in the drought-stricken West it
was off, and that was the balancing
factor.
Until the last decade railway pas
senger traffic, it is pointed out by stu
dents CT the situation, practically was
synonymous with the word travel" !"
Since then it has been anything but.
Peak Reached in 1920.
The peak was reached in 1920; then
came two apparent body blows. Pas
senger fares, generally averaging 21a
cents mile, was raised to 3.6. Along
with this, Pullman fares were boosted
Just so per cent, the addition being
called surcharge, and reverting to the
railroads. This passenger rate boost
was in conjunction with a similar
freight rate increase, decided upon
when rail wages were raised 20 per
cent.
Between the rate increase and the
depression, which hit along about the
same time, passenger revenues started
on their downward trend. BY 1923
economic conditions had improved,
but people were not riding trains any
more in the way they had been, and
that year was the last, in which an
increase in receipts over the previous
year was shown. From 1924 reve-
nues kept sliding of from l to per
cent, all through the prosperity era
to 1929. With the crash, the meas
ured retreat became a rout.
And this despite the fact that a
brand-new travel market was being
created.
Eastman Gives Views.
On this point Joseph B. Eastman,
Federal co-ordinator of transport
ton, had this to say in a passenger
trafic survey issued the first of the
year:
1T is serious but common error
TO assume that automobile travel con-
sists largely of business formerly
handled by rail. While it is true that
the automotive vehicle has wrested
some IS billion passenger miles from
passenger trains, it has at the same
time created additional travel of over
165 billion passenger miles per year.
The motor industry was able to arouse
this vast and dormant market only
because it provided an attractive
travel service at prices which ap-
pealed to the thrifty and also because
it promoted aggressively the sale of
that service.
"In 1920 the average travel of every
inhabitant of our country was 500
miles per annum. In 1929 it was over
1000 miles; in 1888, about 1,700 miles
per year, only 130 of which were by
rail. Within less than decade
American travel desires and habits
were quadrupled, and at the end of
four years of depression were still
more than three times as great as
they were prior to the automotive
era. An assumption that the travel
market is now fully explored is of
the same caliber as o similar as
sumption would have been in 1920.
Travel desire once aroused is rarely,
II ever, sated. II the carriers can