Evening star., 1937-08-27
BOOST PREDICTED
IN CARRIER RATES
Upward Revision for All Sec
tons of Country Held
/ Inevitable.
BY CHARLES F. SPEARE.
yDecial nlsnatcn IN ThA a.sr

SA1A0A<Go SKkAAk,
special Dispatch to The Star.
NEW YORK, August 27.-An up
ward revision in railroad passenger
fares in practically every section OF
the United States now seems newt
able. This does not mean that the
tariffs Of three years ago in the South
and West and those in force prior to
June, 1896, In the East will be re-
sumed. The day Of coach rate above
3h cents a mile has gone forever.
What Is likely to occur in the trunk
line territory. where there was strong
objection to the minimum rate es-
tablished. Is . compromise between
the carriers involved, establishing the
coach fare at az cents a mile, in
stead Of at the present figure Of 2
cents. At the same time, pressure will
be exerted to bring down the Pull
man rate to a point where the trav-
cling public will patronize the chair
car, which they avoid under existing
rates, and in view Of the equal COM
fort now enjoyed in the modern rail-
way coach.
Western Lines Act.
Western lines already have decided
to advance their coach rates from the
2-cent limit, in effect since December,
1888, to "a cents. There will also be
an effort to do away with many of the
special rates, such as the "circle" trip,
from which no profit is extracted and
which are said to have demoralizing
effect on the entire passenger rate
structure.
In the South, rates lower even than
in the East and West have been oper-
ative for several years in order to of =
set the competition Of the buses. It is
understood that the roads in that part
Of the country will go along with those
Of the East and West and revise rates
now below the maximum levels set by
the Interstate Commerce Commission.
The rate revision policy now under
consideration grows primarily from
the increased expenses to which the
railroads already have been subjected
and which they may expect to face
These were not present when the
lower rates were established.
Chief among the additional operat-
ing costs are higher wages and highe,
costs OF materials. Secondary factor
especially in the East, is the con
viction Of a majority Of the carrier.
that not sufficient gain in net income
has resulted from the increase ir
gross passenger earnings since June
1886, to justify the continuation OF
the 2-cent coach rate.
Some Of Cut Remains.
So they get back to their origina
proposition OF a 2l2 cent tariff. Thi,
would still be a 80 per cent reduction
from the old rate Of $50 cents mile
The question now Is whether the
proposed higher rate will result ir
loss Of business On this point
the majority of railroad executive!
and their passenger traffic expert!
are optimistic.
Their arguments are these.
Cd General business Is better tha,
when the 2-cent rate was before tn,
I. c. G. for approval ls months age
and this fact balances the diferenc,
in travel cost proposed of y cen
, mile.
(2) The public has been mad,
railroad travel conscious by the lowe
rates and by a more vigorous ad
vertising campaign.
CD 1t has realized the comfort O
railroad travel with introduction O
Aforementioned cars and Of coache
that are as restful as Pullmans, it
tlme-saving advantage over tn
automobile with the higher speet
schedules OF streamlined trains O,
practically all rail systems, and 1t,
greater safety as the highways becom
more and more coneested and acci
dents on them multiply.
Copyright. 1872