current year in the price of fuel and supplies and in wages. Up to April, 1917, coal cost it about $4 per ton, while it is now costing a little more than $10. In 1917 the average price was $6.70. By comparison, the present price means an additional charge per year of about $105,000. It will also be necessary for the company to raise the wages of its employees to the level recently fixed by the Wage Board in Washington for the railroads which are under federal control, and this will mean about $172,000 more per year. The total of these two items is $277,000. While this sum does not equal the theoretical increase of about $400,000 in revenue from the proposed change in rates, it is to be borne in mind that the raising of fares is likely to cause some falling off in traffic, that the cost of other supplies besides coal is increasing, that maintenance expenditures were curtailed in 1917, and that service was reduced. In the effort to save expense the quality of the service has already suffered. The remonstrance was largely confined to subsidiary issues and there seemed to be a general feeling that the company needs additional revenue and is fairly entitled to an increase in rates. Representatives of Lynn and Revere felt that the regular riders who use the road day in and day out all the year around are entitled to special commutation rates, as compared with those who travel occasionally, especially the pleasure seekers who ride to and from Revere Beach in the summer season. Representatives of Winthrop, and also of Revere, felt that the 5-cent rate should be maintained on the short rides between stations within the same town. Representatives of East Boston urged that 7 cents was too high a charge for the ride between their district and Boston. The policy of the road since 1899 has been to charge the lowest possible uniform fare to all riders, instead of following the usual steam railroad practice of making a comparatively high singleticket rate and providing commutation tickets on a low basis; and the management feels that this policy has had a great deal to do with the growth of traffic and the rapid development of the communities which the company serves. Even under the proposed new rates, the fare of 14 cents between Boston and Lynn would be at the rate of only about 1.44 cents per mile, as compared with the single-ticket rate of 3 cents per mile now in force on the steam railroads. Much can be said in favor of commutation rates, but their introduction might make it necessary to increase the single-ticket rate, a result which might not operate to the advantage of the patrons of the road. The argument in favor of a 5-cent rate between stations within the same town on the whole is stronger, and such a rate, by preventing a falling off in this short-distance traffic, might be beneficial to the company as well as to the communities. There are practical difficulties, however, in the collection of the fares. Traffic on the road is heavy, particularly in the summer months; the distances are short; and the company is naturally desirous of avoiding any additional complexity in operation. The loop in Winthrop adds to the difficulty in this instance. Under an arrangement which has been made with the management, however, the decision of both these questions may reasonably be postponed. The president has agreed in writing that, if the tariff is permitted to take effect as filed, the company will, "in respect to any complaints filed with the Commission or made at the hearings upon such tariff, assume and carry the burden of proof in the hearing and decision of such complaints in the same manner and with the same effect as if said tariff had been further suspended and the question was still pending as to whether it should be permitted to take effect." Further investigation is needed before the Commission will be warranted in deciding either that the company ought or that it ought not to be required to introduce reduced-rate tickets for regular riders or to maintain a 5-cent fare between stations located within the same town; but we do not feel that it would be just, under present conditions, to debar the company from any increase in revenue by the further suspension of the pending tariff while these matters are under consideration, especially since the summer traffic supplies so large a percentage of its earnings. These subsidiary questions will be kept open, however, without prejudice; further hearings will be given if they are desired; and, if not, the Commission will in any event continue its own investigation and take such action as the facts show to be reasonable and desirable. In the meantime, in view of the history of this company, the quality of the service which it has given and the increased burdens brought about by war conditions, the Commission believes that it is just and reasonable to allow the tariff now under suspension to take effect. For the Commission, JUNE 29, 1918. [P.S. C. 2138] ALLAN BROOKS, BOSTON AND WORCESTER RATES. Notice of the Boston and Worcester Street Railway Company of proposed change in rate of fare for passengers upon its rail way. GUY W. Cox for Boston and Worcester Street Railway. CHARLES J. MCCARTHY R. H. BEAUDREAU for City of Marlborough. F. H. HILTON for Town of Framingham. WILLIAM J. NAPHEN for Town of Natick. RAYMOND B. FLETCHER for Town of Shrewsbury. On September 22, 1917, the Commission, after full investigation, permitted the Boston and Worcester Street Railway Company to substitute for its then existing system of irregular and overlapping zones, in each of which the cash fare was 6 cents, a mileage zone system of charging. (See 5 P. S. C. Rep., pp. 4763.) The new tariff became effective October 1, 1917. Under it the road was divided into sections about one mile long and a rate of 2 cents per zone established, with a minimum fare of 6 cents for a ride covering three zones or less. One hundred mile books are sold for $1.70, round-trip tickets are sold at a similar discount of 15 per cent, and in Marlborough special workingmen's tickets are still provided at the rate of 30 for $1. To serve as a connecting link between the old and new tariffs and prevent the throwing of too severe a burden upon regular riders by the change in any given case, the Commission also required the sale of 20-trip tickets, limited to the person named thereon and good for a period of one month, enabling the purchaser to ride between any two designated points upon the railway at a rate of 50 per cent in excess of the old cash or trip ticket rate. It was estimated by the company that the new rates would increase revenue about $74,000 per year. This schedule was approved for an experimental period of six months, upon the understanding that the hearings might be reopened at the end of that time, upon the application of any interested party, for further consideration upon the basis of the experience gained. The company has now filed a new tariff, leaving the mileage zones unchanged, but increasing the rate from. 2 cents to 2 cents and making a similar increase of 25 per cent in the charge for all reduced-rate tickets, except the. workingmen's tickets in Marlborough. The minimum fare of 6 cents for a ride of three zones or less, however, is retained. It is estimated that this new tariff would increase passenger earnings not more than $146,830. The effective date is July 26, 1918, unless the tariff is suspended or cancelled by order of the Commission, but the company asks for a special order permitting the new rates to take effect before that date to meet an existing emergency. The results from the new system of charging so far have been disappointing. By months they have been as follows: The results for the first two months were encouraging, the gain in the second month exceeding the estimated 10 per cent. During the winter season, however, the situation changed rapidly for the worse. Much of the falling off was undoubtedly due to the poor service brought about by ice and snow and the severe cold weather. The Boston and Worcester operates an interurban line of comparatively high speed and is in direct competition at most points with the Boston and Albany railroad, so that its business is peculiarly sensitive to interruptions and delays in service. Probably the increase in fares has caused a reduction in traffic, but the management is very positive in its belief that the poor showing of the company has been due chiefly to the weather con ditions and to changes resulting from the war. Many of the young men in its territory have gone into military service, women are doing war work and traveling less frequently, and the thrift campaign has also had its effect. The decrease in passenger earnings has been offset by a gain in freight revenue, but operating expenses have increased even more rapidly. The company submitted a statement of estimated earnings and expenses for the six months ended June 30, 1918, compared with the corresponding period of the previous year, which, in condensed form, was as follows: Expenses were estimated for May and June in 1918, and income for June, but the remaining figures were actual. Assuming that passenger earnings decrease $25,000 during the remaining six months in 1918, owing to the fact that the State Muster Field at Framingham will not be used to the same extent as last year, that freight earnings continue to increase in the same ratio and that expenses will be no greater than they were in 1917, the company estimates that the deficit for the year, after paying operating expenses, taxes, interest and dividends on preferred stock, will be about $12,582. If the proposed new passenger tariff is allowed, the yearly gain, as already indicated, is estimated at $146,830, the amount obtained by reckoning a full 25 per cent increase on the traffic which pays more than the minimum fare of 6 cents. In addition, the company expects to receive $41,707 from a 25 per cent increase in its freight rates which has recently gone into effect, making a total gain of $188, |