Evening star., 1936-04-19

hare operated in recent years With
fair success, to meet the competi-
ton OF busses, and TO a certain
ertent, private pehicleS. Pennsyl-
UdniG, Ncto Hdpen and Nep York
Central vigorously dissented from
the original order and sought a
modification.
ey the Associated Press.
By 6-to-5 vote, the Interstate
Commerce Commission yesterday
struck down a proposal by Eastern
railroads for an ls-month delay In
establishing sharply reduced passen-
ger fares, leaving the carriers the sole
recourse of challenging It's action in
the courts.
With the commission divided, to
5. Transportation Co-ordinator Joseph
B. Eastman, the eleventh member, but
who acts only when there is a tie
broke the deadlock by voting against
any delay in the June effective date
Of a recent I. C. C. order fixing a
basic rate Of 2 cents a mile in day
coaches.
The previous rate was 36 cents and
the carriers had asked the delay in
order to establish their own expert
mental" rate of 2.5 cents. They agreed,
however, to accept a Scent Pullman
rate fixed by the commission. The
former Pullman rate was 3.6 cents
plus surcharge. which averaged o.
OF cent.
The controversy in which the COM
mission acted yesterday was a year
old.
The carriers plea for a postpone
ment-flled by all major Eastern
roads except the Baltimore g. Ohio
limited that If the commission acted
adversely, they would carry their fight
to the courts. Rail officials here said
representatives of the roads soon
would decide this question.
Eastern Roads Affected.
Eastern roads are primarily affected
by the commissions order because low
passenger fares already are in effect in
the West and South. These would not
be changed If as low as those desig-
mated.
The only written opinion yesterday
was by Eastman. long an advocate
of reduced fares as a method of at
tracing increased passenger traffic.
Although a member of the commits
sion, Eastman ordinarily does not vote
because of his duties as co-ordinator.
In a statement, he called attention
m tho rnoiS' Y1leo that fhnv shOt1li
be permitted to experiment with their
own ascent fares in order to measure
the effect Of reduction on their reve-
nueS.
Eastman said test of lesser educ
tions than those ordered by the COM
mission would not be at all con-
elusive as to the effect of those which
were ordered" and added:
IF experimentation is desired con-
elusive results can be obtained only by
putting to the test the fares which
the commission has prescribed. and
such results should be available in a
period of time shorter than the l8
months proposed by the petitioners"
Railroads Argument.
The railroads also argued that food
conditions had caused serious losses
and that the commission should not
take any action which might bring
additional losses.
However" Eastman wrote. the
conclusion of the commission on the
evidence was that the reduction of
passenger fares in accordance with its
order would benefit rather than in
jure the carriers"
The Eastern roads estimated the -e-
ductions would cost them millions of
dollars annually, arguing that because
their passenger traffic was largely
commuter travel no major increase in
volume could be expected.
The commission divided, five to four,
on its original order, but its vote yes
terday brought slightly different
lineup.
Originally voting for the reductions,
Commissioner Carroll Miller supported
the move for a postponement. His
vote was offset. however, by Commits
sioner Huhg M. Tate, who did not
vote on the earlier order.
Commissioners Claude Porter, Clyde
B. Aitchison. Marion M. Caskie and
Walter M w. Splawn stood by the
June effective date. Besides Jdiller,
Commissioners Balthasar H. Meyer.
Frank McManamy, Charles D. Mahaf-
f1e and William E. Lee voted for the
poStponement.