Page:Popular Science Monthly Volume 28.djvu/513

Rh as much fare as another?" The highest of these fares—a cent and a half a mile—is much lower than the average rate of fare charged in the United States or on the remaining portions of the same road. It is certainly not, then, unreasonably high. But the reason it is lower than in the average of cases is that the ordinary traffic between the points in question, excluding that at special rates, and the possibilities of its development, are sufficient to warrant it. As to the traffic carried at the special rates, it could not be obtained without the special concessions. And, the road being built and the trains running, the extra traffic may be carried at a fraction of the average rate of cost for the whole. There is thus a profit under the circumstances on this traffic at the special rates; and, as it is developed and increased by the concessions made in its favor, it helps to pay more and more of the fixed expenses which were in force before its existence, and so by relieving the regular traffic of a portion of its burden of expense makes possible also a reduction in its rates. The reason for the discrimination, then, results from its necessity to secure the traffic; the common reason in all cases of lawful and fair discrimination. If, by an equalization of these rates, their averages were established as the rate for the whole, the daily passenger who now pays ten cents a day for his fare from his home to his place of business in the city and return would then be compelled to pay twenty-two cents. It is certain that in the greater number of cases he would not do this. Now, with this suburban traffic, as with all other traffic, the rates decrease as the volume increases—other things being equal—and, as the rate of expenses per passenger also decreases under the same conditions, the differential rates are justified on the ground of the cost of the service, as well as from the necessity of the traffic. The very much greater port ion of the suburban traffic is from the passengers who travel daily, a much smaller portion from those who purchase round-trip tickets, and the remainder from those who make an occasional single trip. The rates are thus inversely to the volume of the traffic. The highest rate is paid by those who pay very few fares, and the lowest by those who pay the largest number. This is a distribution of the burden of the expense which causes it to be felt the least; and it results in giving the benefit in the fares to those who by increasing the traffic cause the reduction in the rate of expense.

That the suburban passenger traffic throughout the United States is carried at lower rates than any other is a familiar fact, explained by the possibility of development and justified by its much greater volume, which is accompanied by a lower rate of cost per passenger. Where the volume of the traffic is less, the rate and the cost per passenger are alike greater. This rule holds good throughout, other things of course being equal. In the minority report of the Railroad Commission of California for 1883 (pp. 137-140), which is extremely hostile to the railroads of that State, it appears that the lowest