Evening star., 1938-07-07
50 MILLION RAIL
FARE BOOST SEEN
|. c. c. Permits Eastern
Lines to Charge 2H2
Cents a Mile.

BY the Associated Press.
Officials of Eastern railroads esti-
mated today their half-cent increase
in passenger fares would add nearly
$30000,0o0 year to their revenues.
The Interstate Commerce Commits
sion agreed late yesterday to let the
Eastern lines charge 25 cents a mile
in coaches during an 18-month trial
It found the roads financial condition
had become progressively worse"
since similar plea was refused last
spring.
One commissioner, Claude r. Porter,
disagreed with the report of his 10 COL
leagues, and called the increase a
grave mistake.
mo other industry in the throes of
a depression and in the face of vigor-
GUS competition" he said, seeks to
raise the price of what 1t sells to the
public. 1t may be that the railroads
are immune from ordinary economic
laws. I doubt it.
Jones Backs Increase.
1T might be said that if the rail-
roads are bent on committing suicide
why should we seek to prevent them
still believe we owe a duty to the
public"
Chairman Jesse Jones of the Recon-
struction Finance Corp, on the other
hand. said he thought the increase
would prove helpful.
More than a white chip" he COM
mented, when asked if the aid would
be substantial.
l. c. c. Commissioners Charles D.
Mahaffie and Carroll Miller said they
believed there was no warrant for
limiting the increase to an 18 months
period.
Senator Logan, Democrat, of Ken
lucky. was doubtful that any substan-
tial benefit would result.
Sees Cut in Travel.
1T seems to me-" he said, that the
increase will not be of much aid to
the railroads. The increased fares
In my judgment, will reduce travel
Representative Dies, Democrat, OF
Texas, said he had serious doubts
that the fare adjustment would dc
much good and Representative Holmes
Republican, of Massachusetts, said it
might help a little but would do nc
permanent good"
Frederick E. Williamson, president
OF the New York Central, said: II am
particularly impressed and pleased
over the promptness with which the
decision was rendered. I had not ex-
pected it so soon, although I was con-
f1dent that the commission was in
clined to do all in its power to help the
railroads in their present emergency
The Eastern roads operate as far
west as Chicago and ST. Louis and as
far south as the Ohio River and the
Norfolk, Va, area. The fare increase,
effective on 10 days notice, is permis-
slve rather than mandatory. The
I. c. c. urged State commerce author
itles to let the roads make similar in
crease on intrastate traffic.
Other Pleas Doubted.
Railroad men expressed doubt that
q fare boost would be requested by
Western and Southern lines. The
f1nancially-troubled carriers were
granted freight rate increases in
March averaging upward of per cent
Officials of the Association of Amer
lean Railroads and the Brotherhood OF
Railway Trainmen said the fare in
crease probably would have no effect
on coming wage conferences. The lines
have asked employees to take Is per
cent cut, but the workers have refused
A. F. Whitney, president of the
brotherhood of Railway Trainmen,
said after a White House visit yester-
Gay that his organization would sup
port President Roosevelts stand
against wage reductions.