Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-05-31
CUT IN RAIL FARES
! IN EFFECT TONIGHT
New Schedule Will Go Into
Force Under Protest of
Eastern Lines.
BY the Associated Press.


Although already the target Of .
court attack. new low passenger fares
ordered by the Interstate Commerce
Commission as q means Of bolstering
travel by rail will 60 INTO effect at
midnight tonight.
Fares as low or lower than those
fixed by the commission already are
in operation in Southern and Western
territory. In the East, however, all
major carriers except the Baltimore
81 Ohio said they would conform to
the reduction ruling under protest"
They then filed q suit in New York
Federal Court seeking to inva|idate it.
These roads commended the new
charges would cut seriously into their
revenues. In addition, they argued,
the commissions action was "caprici-
Gus" and exceeded its statutory au-
thority by assuming control over mat
tiers which should be left to the dis
erection Of railroad management.
Surcharge Wiped Out.
After q lengthy study, the COM
mission fixed fares Of 2 cents q mile
in coaches and cents in Pullmans,
compared with the present basic fare
Of 3.6 cents for both classes OF trans
portation plus a Pullman surcharge.
The surcharge, which averages four
tenths Of cent q mile, was ordered
wiped out.
Splitting five to four, the commits
sion majority said there had been
increased travel in the South and
West since passenger fares were re-
duced in 1888, and that this indicated
similar results could be accomplished
in the East.
There is no reason to believe" the
majority held, that the average per-
son living in the East Is not Just as
willing and able to travel by rail
as is the average person residing In
the South or in the West.
1T seems reasonable to assume,
therefore, that a reduction in the
fare in the East would be as attrac-
tive to the travelling public and as
likely to stimulate increased passen-
ger miles as was the fare reduction
made In the South and in the West. "
Optimistic for Future.
The commission took an optimistic
view of future passenger traffic, say
ing "the passenger market for the
future looks as promising as at any
time in the history Of the country"
but adding:
The railroads cannot hope to share
reasonably in that market except at
fares more nearly commensurate with
the cost and convenience Of travel
by highway and with changed eco
nomic conditions"
The commission said dwindling pas
senger revenues made immediate
extraordinary measures imperative in
order to enable the railroads to con-
tinue in the passenger business"
But the Eastern roads, which carry
more than so per cent of the Nations
railroad passengers, contended revenue
increases similar to those in the South
and West could not be realized in
their section.
A large portion Of their business
attorneys asserted, came from COM
muter travel, which would not be
increased by fare reduction. They
said also that even should passen-
ger figures swing upward because OF
reduction, there also would be q
sharp increase in operating costs, of
setting any possibility Of net revenue
gain.
Reconsideration Asked.
After the commission handed down
its ruling, the Eastern roads re-
quested reconsideration, submitting an
alternate proposal of their own.
These carriers suggested that they
be permitted to establish expert
mental" fares Of rs cents a mile in
coaches and three cents in Pullmans
for a period of Is months. During
this time, they said, revenue results
of the lower rates could be measured
and the I. c. c. would have concrete
data on which to base any future
fare orders.
Transportation Co-ordinator Joseph
B. Eastman cast a deciding vote
against the roads proposal when the
commission divided its votes evenly
Although the commission had set
June 2 as the deadline for new rates
the railroads later informed the COM
mission they would put the new
schedules into effect at midnight MAY
81, to simplify their books. Whether
the rates will remain in effect fol
more than a brief period depends
on how and when the court rules
on the Eastern carriers suit.
Under the direction of Patrick J.
Farrell Of Vermont, former member
OF the I. c. c., commission attorneys