upon the basis of present traffic, would amount to $25,636.68 a year. While it is exceedingly difficult to make any accurate forecast of the revenue results from the establishment of an entirely different fare system, and while the company's estimate can be regarded as approximate only, it appears to have been carefully made upon the basis of traffic counts, and seems to be as nearly reliable as any estimate that can now be made.

On the Medway and Dedham leased line it should be possible to make a closer estimate of the probable increase in revenue. On the Medway-Franklin section of the line the company estimates that 25 per cent of the passengers now paying a 5-cent cash fare would use the proposed 5-cent workingmen's tickets, good during certain hours only, and that the remainder would pay the 7-cent cash fare. This is equivalent to a uniform 6-cent rate, or an increase of 13 cents over the present fare on this section of the line. In the Medway-Dedham section there would be a straight increase of 1 cent per passenger. For the year ended June 30, 1918, there were 133,240 cash passengers between Medway and Franklin and 713,159 between Medway and Dedham. The comparative figures for the year ended June 30, 1917, were 174,642 and 698,570 respectively. The decrease of travel in the MedwayFranklin section, amounting to over 23 per cent, was due largely to the abnormal weather conditions of the past winter, which necessitated the closing of the line for a period of three months. The company has estimated a further decrease of 5 per cent in this travel, but even with an increase in rates it does not seem likely that the travel for the ensuing year would fall below last year's figure. On the Medway-Dedham section the company has also estimated a 5 per cent decrease in travel, but as last year's travel showed some increase over the year before, and as the proposed increase is about the same as that allowed last year on the lines owned by the company, it seems to us that an estimate might reasonably be made upon the basis of a similar decrease of about 3 per cent in passenger traffic. Upon this basis the increase of revenue on the entire Medway and Dedham line would amount to $8,916.24.

In addition to operating its own lines and the leased line of the Medway and Dedham Company, the Milford and Uxbridge Company has an arrangement with the Grafton and Upton Railroad Company under which it supplies the power, cars and car employees for the transportation of passengers on the latter road, and receives a designated portion of the total passenger receipts.

As the result of increases recently made in railroad passenger rates, the fares for one-way passengers on the Grafton and Upton road are now at the rate of 3 cents a mile. The increased compensation received under the Grafton and Upton contract since June 10, 1918, when the 3-cent rate became effective, if computed on the basis of a full year's travel, would amount to $4,551. If these various estimates are reasonable, the increase of revenue for the entire Milford and Uxbridge system under the fares proposed and those recently made effective for the Grafton and Upton railroad, would amount to $39,103.92, which is $2,615 in excess of the amount to which we have found that the company is entitled.

Irrespective of the question as to whether the schedule of rates proposed by the company would yield an excessive amount of revenue, the representatives of the various communities who appeared at the hearing were practically unanimous in their opposition to the establishment of a mileage zone system as a method of obtaining additional revenue, largely because it seemed to impose a disproportionate burden upon long-haul riders. The need of additional revenue was generally recognized and the view was generally expressed that if the Commission found that the company was entitled to higher rates there would be little opposition to an increase of one cent in the present fares on all owned lines if the existing fare zones were retained. No opposition was offered to the schedule proposed for the Medway and Dedham line, which was substantially upon that basis. In a brief filed subsequent to the hearing by counsel for the town of Framingham a preference was expressed for the mileage zone system, but that view was not strongly urged, and appeared in large measure to be contingent upon the extension of the terminus of zone 6 under the mileage zone plan from Holliston square to Highland street in the town of Holliston. The company stated that an increase of the cash fare on its owned lines from 6 cents to 7 cents and of the workingmen's tickets from a 5-cent to a 6-cent rate would yield approximately the same amount of revenue as the mileage zone plan proposed, and that it was indifferent as to which plan should be adopted.

A similar situation arose in the recent rate case of the Milford, Attleborough and Woonsocket Street Railway Company, except that the company at the time of the hearing expressed a preference for the mileage zone system, largely because it seemed likely in that case to yield a larger revenue (P. S. C. 2102). In its re

port in that case the Commission, after a brief discussion of the relative merits of the two plans, and largely because of the advantage to the company of preserving friendly relations with the communities it served, recommended that the company adopt a straight fare increase to 7 cents, rather than a mileage system, and this recommendation has been followed by the company. It seems to us that owing to similar considerations in the present case, a straight increase of fare on all owned lines, as suggested by the remonstrants, is preferable to the fare plan suggested by the company.

If we assume the same decrease in riding during the year ending June 30, 1919, as in the year ended June 30, 1918, the increase in revenue on the basis of one cent additional for passengers paying a cash fare or using workingmen's tickets, would amount to $33,122.94. As the schedule for the Medway and Dedham line and the compensation from the Grafton and Upton Railroad would remain the same, the total estimated increase in revenue, if this alternative were adopted, would amount to $46,590.18, which is about $10,000 in excess of the sum to which the company appears to be entitled.

We are therefore of the opinion that some reduction in the rates suggested is reasonable, and that the benefit of such reduction should be given to those using the workingmen's tickets and the special Holliston-Framingham tickets by the sale of workingmen's tickets at the rate of 18 for $1, instead of 20 for $1.20, on all owned lines of the company, and by the sale of tickets good for 9 continuous rides by local passengers between Framingham depot and Highland street, Holliston, or intermediate points, for $1, good only for the original purchaser or members of his family. If this modification were made, the estimated increase in revenue from the entire system would be reduced to $43,100, but would still be $6,612 in excess of the apparent revenue requirements of the company.

It is to be remembered, however, that these figures are based upon estimates of increased revenue that must be largely speculative, and that such estimates in other rate cases, however carefully they may have been made, have usually been substantially in excess of the actual revenue results. Moreover, the estimates made in this case are based upon the past experience of the company, which cannot be accepted as a safe guide for the future, in view of the changed conditions which are likely to result from the extension of the draft age, the employment of a large part of

the able-bodied male population in active military service, and changes in the modes of life of all our people which are likely to result from our participation in the war on a vastly increased scale. As changes of this character are likely to have a direct effect upon local transportation, estimates of increased revenue based upon past conditions should show a substantial margin over demonstrated revenue requirements. We are therefore of the

opinion that, if the fares of the company are established upon the basis recommended herein, the company would not receive more than a legitimate return on its investment. An order will therefore be entered, cancelling the rates and charges stated in the schedule filed by the company, but the company will be allowed to file a new schedule embodying the changes recommended in this report, and such schedule will be allowed to become effective on short notice.

ORDER.

It appearing that on July 24, 1918, an order was issued suspending until September 1, 1918, the rates and charges stated in the schedule described in said order; and

It further appearing that a full investigation of the matters and things involved has been had, and that the Commission on the date hereof has made and filed a report containing its findings of fact and conclusions thereon, which said report is herein referred to and made a part hereof,

It is

Ordered, That the Milford and Uxbridge Street Railway Company be and hereby is notified and required to cancel the rates and charges stated in the schedule specified in said order of suspension.

It is

Further ordered, That a copy of this order be filed with said schedule at the office of the Commission and a copy hereof be forthwith served upon the Milford and Uxbridge Street Railway Company.

By the Commission,

ALLAN BROOKS,

August 22, 1918. [P. S. C. 2209]

Assistant Secretary.

NEW BEDFORD, MARTHA'S VINEYARD AND NANTUCKET RATES.

Notice of proposed change in local freight rates of the New Bedford, Martha's Vineyard and Nantucket Steamboat Company. Notice of proposed change in joint freight rates of the New Bedford, Martha's Vineyard and Nantucket Steamboat Company and the New York, New Haven and Hartford Railroad Company. F. A. FARNHAM for the New Bedford, Martha's Vineyard and Nantucket Steamboat Company and the New York, New Haven and Hartford Railroad Company. FRANKLIN E. SMITH for the Nantucket Cranberry Company, the Nantucket Land Trust and Cape Cod cranberry distributors. The tariffs under suspension were issued by the New Bedford, Martha's Vineyard and Nantucket Steamboat Company and the New York, New Haven and Hartford Railroad Company on May 15, 1917, to become effective on June 18, 1917. Upon complaint they were suspended, pending investigation and a hearing, to August 1, 1917, and by subsequent orders to May 1, 1918. The delay in reaching a decision has in part been due to delay of the companies in furnishing information within their possession requested by remonstrants.

The New Bedford, Martha's Vineyard and Nantucket Steamboat Company owns three steamships which carry freight and passengers between New Bedford and Woods Hole, on the mainland, and the islands of Martha's Vineyard and Nantucket. It has $141,700 of stock outstanding and no bonds or floating debt, and the entire capital stock is owned by the New York, New Haven and Hartford Railroad Company. Operation is supervised by practically the same officers as direct the affairs of the New England Steamship Company, the corporation through which the New York, New Haven and Hartford Railroad Company owns and controls the so-called "Sound Lines," operating between various ports on Long Island Sound and New York City.

The change proposed in the local port to port rates is shown by the following table of class rates. Group B rates apply between New Bedford or Woods Hole and Nantucket, and Group A rates between all other landings.