investments - New York, Chicago and Philadelphia. Until recently the rapid transit lines in New York have prospered, but now that the new subways are opened it seems probable that the city will shoulder a heavy deficit unless fares are increased. Furthermore, high speed operation beyond what is practicable in our shorter subways makes expense relatively less. No transfers are given to or from surface lines. For every ride, no matter how short, the subway or elevated lines receive a full fare. This is true also in Chicago, where there are no subways and where the fare on the elevated lines has recently gone to 6 cents. In Philadelphia the investment in rapid transit lines is much smaller than in Boston, although the population is larger, and in general there is an extra charge for transfers to and from surface lines. (2) The average ride per passenger is probably longer than in most other communities, not only because the area covered by a single fare is very large, but also because the lay-out of the city and the system makes the percentage of short-haul riding low. (3) Narrow and crooked streets increase expense of operation. (4) Coal, which is a big item of expense, costs substantially more in New England than in most other parts of the country. (5) The expense is increased by the fact that rolling stock and tracks have not been kept up to date or in good repair. In the case of the properties in the remainder of the state, there is no doubt that more country lines of low earnings and poor construction have been built in Massachusetts than in other parts of the country, and the consolidation of these lines with the city systems has lowered the average earning power. Quite commonly elsewhere, the interurban and city lines have separate corporate organizations, and have been brought under common management, if at all, through the medium of holding companies. Unified operation with more prosperous lighting properties has also helped many street railway companies in other states weather the storm, and they have been helped by proximity to the coal fields and by wide streets and other favorable operating conditions. In general, however, it cannot be questioned that the street railway situation is bad all over the country, and there is little basis for the common belief that Massachusetts is specially afflicted. BOSTON ELEVATED RAILWAY COMPANY. By the provisions of chapter 159 of the Special Acts of 1918, the management of the Boston Elevated Railway Company was placed in the hands of a board of public trustees appointed by the governor, and the company was, in general, removed from the jurisdiction of this Commission, so far as rates and service are concerned. The plan of public management under publicly appointed trustees was suggested by this Commission, but the statute in its final form did not meet in all respects with our approval. We have no doubt, however, that the trustees will be able, as a result of their experience, to recommend suitable amendments. Since the adoption of the new plan of management, complaint in regard to service has continued. In justice to the trustees we think it well to point out that one reason why this Commission urged public management was the belief that under war conditions no speedy improvement in accommodations could be expected, and that service was, in fact, likely to become worse rather than better. Under these circumstances we felt that there would be less unrest if the administration of affairs were placed directly in the hands of public officers appointed by the governor. This is shown by the following extract from our report: Certain unusual factors in the situation have an importance which can hardly be overestimated. General conditions are extraordinary. The country is at war and a great portion of its wealth and productive power is being absorbed by our army and navy and in the support of the military forces and population of our allies. More and more the nation will be called upon to sacrifice and do without things which it would otherwise have a right to expect. Few now realize, indeed, the extent to which this is likely to become necessary. This applies to transportation as well as to everything else. Normalactivity in improving service and facilities cannot be expected. At best, private capital can be secured with great difficulty and at high cost, and the same is true of labor and materials. Steel and copper are being used principally for war purposes. Many of the plants which manufacture cars are now building aeroplanes and gun carriages. War work is exhausting the supply of skilled mechanics, and street railway companies even now are finding it hard to secure motormen, conductors and unskilled labor. Transportation improvement must be concentrated primarily upon the means of moving quickly munitions, fuel, food and essential raw materials. In such a situation mutual trust and unity of purpose are essential, and the government, as the one body representing all the people, becomes the dominant factor. In the present instance, war conditions are bound to cause no little public discomfort and dissatisfaction, and already there is widespread feeling over the poor service which is being furnished. It is also true that, whatever action the General Court may take, the effect upon the service will be gradual. Under such circumstances nothing is more desirable than to create confidence in the administration of affairs and to remove all basis for the fear that private interests, for some purpose of their own, have failed to do everything that can be done to improve the situation. In another part of the report it was definitely stated that "it may be that under present conditions, shortage of labor and materials will prevent any material improvement immediately in the transportation situation, no matter what is done." This fear has been realized and the trustees have been unable to provide good service. They have suffered, however, from conditions beyond their control, which have had a similar effect upon all the railways of the state. It has been impossible to secure an adequate supply of efficient labor, and deliveries of equipment and materials have been badly delayed. The people will be short-sighted and unfair if they charge against public management these adverse conditions which have caused similar shortcomings in private management. The very large increase in wages, and the fact that the trustees are making a far greater provision for depreciation than ever the private management did in the past, have made it necessary to raise fares to a higher level than was anticipated, and it may be that the General Court, if it had been able to forecast conditions, would have placed a heavier temporary burden upon the stockholders, although they were given only a very moderate return. However, the increases in fares which the trustees have made are not in excess of those which companies under private management have sought. Indeed the increases upon the Bay State street railway have been decidedly higher. As yet there is, we believe, no reason for a claim that public management has been a failure. FREDERICK J. MACLEOD, EVERETT E. STONE, Commissioners. DEPARTMENT REPORTS. RATE AND TARIFF DEPARTMENT. The changes in passenger fares and freight rates during the year 1918 have been much greater than in any year since the formation of the Commission, although the new tariffs filed have numbered but 1,662. The United States Railroad Administration, which assumed charge of nearly all lines in the country on January 1, 1918, under a proclamation of the President of the United States dated December 28, 1917, issued a general order making marked increases in passenger fares on June 10, 1918, and freight rates on June 25, 1918. PASSENGER FARES. The general basis of passenger fares was fixed at 3 cents a mile, in place of the former 2-cent rate which maintained within 15 miles of Boston and the 2 cents a mile elsewhere in the state. The mileage tickets formerly sold at the rate of 21 cents per mile were discontinued and in their stead were provided so-called scrip books sold at the regular single ticket rates, but enabling the checking of baggage without first going to the ticket office. The 8 per cent war tax is added to the price of the scrip books when purchased, so that traveling men have no annoyance in figuring taxes for each individual journey. As these scrip books, however, include a war tax which is not required on trips of less than 12 miles, an unnecessary expense is involved if they are used for short trips. Some exceptions have been made to the ruling rates given above, so that soldiers and sailors returning home after discharge from service can procure tickets at two-thirds of the regular rate, while soldiers, sailors, nurses and enlisted women of the army, navy and marine corps on furlough can procure transportation on the basis of one-third the regular fare. Tariffs have also been prepared to take effect January 1, 1919, providing for the transportation of clergymen under certain restrictions at one-half the regular fare. The season tickets, 12 and 25-ride suburban and other similar commutation tickets and monthly season tickets, were all increased a flat 10 per cent. The half rate students' monthly ticket which has been in force for years has been continued, up to the present time, with a 10 per cent increase. In addition to these changes, there was introduced an additional charge for the privilege of using parlor and sleeping cars, over and above the actual price for seat or berth, this figuring about one-half a cent a mile and continuing in force until December 1, 1918, when it was discontinued. There are some indications that still further changes in commutation tickets of the various kinds may be made in the near future, provided a satisfactory uniform plan applicable to the entire country can be formulated. FREIGHT RATES. A description of the increase in freight rates is quite complicated, and to understand the changes fully it must be followed down from the basis promulgated by Judge Prouty of the Interstate Commerce Commission, sitting jointly with the New England Commissioners in connection with Boston and Maine affairs in 1913. The resulting tariffs were made effective by the Boston & Maine Railroad on April 1, 1914, and the basis was later adopted by the Boston & Albany on May 1, 1914, and by the New York, New Haven & Hartford in December of the same year, thus covering substantially all the steam mileage of the state. The Interstate Commerce Commission, by decision on June 27, 1917, granted the petition of eastern carriers for a 15 per cent increase in class rates to meet added cost of operation, the tariffs thus authorized going into effect upon the Boston & Maine and the New York, New Haven & Hartford lines in August, 1917, followed by the Boston & Albany in November, 1917. This was the uniform basis at the time the New England roads petitioned the Interstate Commerce Commission for a |