Rensselaer Union, Volume 8, Number 39, Rensselaer, Jasper County, 15 June 1876 — Railway Passenger Rates. [ARTICLE]

Railway Passenger Rates.

Thera seems to be a great deal of astonishment at the great redaction of passenger rates from here East, growing out of the naw disagreement among the Eastern trunk lines, gnd an apprehension in some quarters that the railroads will kill themselves off If this sort of thing keeps up. All this comes from a superficial consideration of the matter. It is hastily concluded that, because the railroads have been charging twenty-two and twenty-four dollars to New York, it is ruinous for tbem to throw off nearly fifty per cent. There are several influences, however, which are not considered at all in reaching this conclusion. The increased travel sure to be attracted by a notable difference in rates, and which can be carried by the roads without any appreciable difference in their running expenses, almost entirely offsets the reduction as a rule. This is the experience of the past, when special competition has led to a fall in (ftssenger rates. A striking instance of it was afforded some years ago in Scotland, when a dispute between the Edinburg & Glasgow and the Caledonian Railways brought about a reduction of rates to nearly one-eighth of the regular tariff. The respective fares for the three classes were eight shillings, six shillings and four shillings for a distance of forty-six’ 1 miles, and they were reduced respectively to one shilling, nine pence and six pence. The struggle lastea a year and a half, and the result was that the annual dividends were reduced only one-half per cent., though the fares were only one-eighth of what they had been. A new traveling public had been created by the reduction. Excursion trains were run, crowded with people. The agricultural and laboring classes visited the cities, which they had never before been able to do. Men, women and children spent money in traveling, which thus took the place of other cheap recreations and amusements in which they had been in the habit of indulging themselves. The receipts of the roads from travel rernained as large as before, and in some instances increased, notwithstanding the tremendous reduction of seven-eighths, while the expenses were comparatively but little more than before. Now to make up this half per cent, difference in dividends the railroad companies had to compel the public to pay tight time* as much for travel. So it is fair to presume that the reductions on our Eastern railroads by less than one-half will make scarcely an appreciable difference in the annual profits.

A comparison of the difference in price which the railroads receive for passengers and freight, even at the reduced rates of the former, will show how ridiculously high passenger rates are as a rule, ana how silly is any apprehension that the railroads cannot stand the reduction. We will say that Ihe average number of passengers which a first-class railway car can carry is fifty, and, allowing 200 pounds for each person, including baggage, the human freight is at the rate of 5 tons to the car. At the present rate of sls per person from Chicago to New York, a single passenger-car may yield $750. But tire average freight-car carries 10 tons at the rate of 20 cents per 100 pounds for grain, which yields only S4O per car for the trip. The passenger-car, then, with 5 tons of freight, earns nearly twenty times as much as the average freight-car with twice as much freight Of course the original investment in the passenger-car is larger and the expense of attendance, care and repair is greater; but it is also a lighter car, makes double as many trips, and is hauled at less cost for tuel. There is certainly no reason why it should need to earn twenty times as much as a freightcar in order to be profitable, or,' earning at this rate, there is no likelihood of the roads going to pieces. If it be said that the passenger-cars do not run full, the answer to that is that they may always run full if the rates are low enough, and with a proper adjustment of the supply to the demand. So far from there being any reason to apprehend any serious results from the railroad war over passenger rates, the probability is that if the railroads reduce them low enough, and maintain the reduction long enough, they may increase their profits for the current year. The Americans are naturally a traveling people, and the*Centennial Exhibition is a special inducement for them to indulge their fondness this year. On the other hand, they are largely restrained by the hard times and the necessity felt by every one o spending as little moneyas possible. Now, a reduction of railroad fares to the East to one cent per mile Wibuld tempt hundreds of thousands of people to go to Philadelphia who would otherwise remain away. Such a movement would do much to relieve the present financial strain and mercantile sluggishness. There would be a considerable revival of trade and renewal of confidence as the result of the interchange of personal communications. Money would circulate that is now* boarded, and people w ould look into the future Wh less suspicion on account of the livelier aspect that would be given to the present condition of things. The country would be benefited, and the railroads would profit proportionately. —Chicago Tribune.