We find that petitioners' and respondents' interstate commutation fares increased as set forth in appendix 3 hereto and petitioners' multiple fares increased in the manner above described

(1) Will yield a substantial increase in revenue of which petitioners are in need and to which they are justly entitled; (2) are as low as petitioners can be required to maintain from a cost standpoint, and at the same time are reasonably related one to another; (3) are necessary in order that the travel thereunder may make a fair contribution to the revenues needed by petitioners to enable them, under honest and efficient management, to provide adequate and efficient service, at the lowest cost consistent with the furnishing of such service; and (4) will be just and reasonable for the future.

Our findings in the prior report in No. 29711, 268 I. C. C. 457, with respect to the one-way standard or basic fares should be, and they are hereby, modified by substituting for distances of 22.5 miles and less, in sleeping and parlor cars, a flat increase of 5 cents, and for distances of 15.4 miles and less, in coaches, the revised basis set forth above, and with respect to round-trip fares for distances between 100 and 200 miles by substituting the double one-way basis in lieu of the graduated basis previously approved.

An order will be entered authorizing petitioners to establish, on 5 days' notice, and thereafter to maintain the fares approved herein.

MAHAFFIE, Commissioner, concurring in part:

I concur in the modification of the basic scale which is approved. There appears to be no reason why a carrier should be compelled by us to maintain round-trip fares lower than those we have found to be reasonable for the miles traveled. In that connection the industry, while it is seeking ways to save money, might benefit from a tightening up of the options now offered to travel far out of line at the direct fare. This, along with free transportation performed, accounts for at least a part of the insufficiency of the present return from passenger service.

I do not agree, however, with the decision in some of the commutation cases. The Jersey Central, for instance, is losing heavily on that service. It proposes a scale which its responsible officers think will cut the loss. It would still be a staggering one. The scheme is worked out with care. Tariffs were filed intended to make it effective. We suspended them. We now find its plan, in the main, sound but revise it so as better to fit our ideas of proper progression and level. The result is materially to cut the revenue sought and so to increase the out-of-pocket loss on the service. The considered judgment of the management, where it leads to no unlawful result, should be more

influential than we have here permitted it to be. This is equally true of the revisions required, with resulting revenue losses, in the cases of a number of the petitioners. I am not convinced, for example, that our scale is an improvement on that proposed by the Lackawanna. The management of the road knows its traffic. Its opinion as to the best means of curtailing losses in handling it is entitled to respect.

COMMISSIONER MITCHELL did not participate in the disposition of these proceedings.

1 For all operations, about 55 percent of the total operating revenues being from the transportation of passengers.

185.98 3, 415

346

1.110

87

100.00

Boston & Maine.... 119. 89 16, 752 2,515 1.295

503

31.36

1. Scale A shall apply on monthly unrestricted tickets and scale B shall apply on monthly restricted tickets (not good on Saturdays, Sundays, or holidays), between New York, N. Y., and points on the Jersey Central, including the New York & Long Branch operated by the Jersey Central and Pennsylvania, points on the Old Bridge-Englishtown, N. J., branch of the Pennsylvania and points on the electric lines of the Lackawanna.

2. Scales B and C shall apply on monthly unrestricted and restricted tickets, respectively, between New York, N. Y., and points on the River Division of the New York Central, points on the steam lines of the Lackawanna and points in New Jersey on the Lehigh Valley and Erie, and points in New Jersey on the Pennsylvania not mentioned above, except that from points on this carrier's Trenton-New York City line located more than 30.4 miles from New York City, buffer scales shall apply with uniform gradations per mile of 35 cents for each mile between 31 and 43 miles, and 30 cents for each additional mile, in connection with the unrestricted monthly tickets, and 40 cents for each mile between 31 and 54 miles, and 30 cents for each additional mile, in connection with the restricted monthly

tickets.

3. Where a community is served by two or more carriers, for example, Cranford and Plainfield-South Plainfield, N. J., served by the Jersey Central and Lehigh Valley, and