Monday, Aug. 05, 1929

No More Free Rides

The Interstate Commerce Commission last fortnight took from railroad owners and officials, their families, servants and friends, a most cherished privilege--the right to gad about the country free in a private car.

One of the oldest of railroad courtesies was the transportation without charge by one carrier over its lines of another carrier's private official car. Interstate Commerce Commissioner Frank McManamy conducted a long investigation of this practice, wrote an exhaustive report which the Commission approved. Commissioner McManamy found that the free-movement courtesy between roads led to grave abuses, that it was unfair and discriminatory to the ordinary traveling public, that it was contrary to Federal law. The Commission ordered the roads to "cease and desist," told them to assess one another a "just and reasonable charge" for such service.

Private cars, acme of transportation luxury, fall into three classes:

1) Those owned by railroads and assigned to directors and officials (about 900 in the U. S.).

2) Those privately owned by individuals (about 150 in the U. S. Examples: William F. Kenny's St. Nicholas, Edward Beale McLean's Enquirer, Harry Ford Sinclair's St. Claire).

3) The 22 cars maintained by the Pullman Co. for private charter.

The average private car. without special equipment, costs from $100,000 upwards. Its operation about the country by a non-railroad-owner requires payment of 25 full fares and as many Pullman surcharges. If the car is attached to a limited train. 25 extra-fares are added.

The rich man who owns no private car may rent one from the Pullman Co. at a minimum rate of $175 for two days or less and $75 per day thereafter, in addition to carrying charges.

To avoid these charges many a rich man, instead of owning his own private car, buys sufficient stock to make himself a director of some railroad, to rate an official private car with free transportation all over the country.

The Commission's report, which affected only carrier-owned private cars, found that:

1) Railroad officials, their families and friends rode many a needless free mile over foreign lines in private cars.

2) Small roads, owned by industries, sent their cars far over big lines, offered little transportation in return.

One major abuse detected by Commissioner McManamy was the free travel of officials to resorts. The Atlantic Coast Line goes to Florida. Its private cars journeyed 96,507 free miles on other lines while it had to haul without charge the private cars of other companies a total of 456,683 miles over its own tracks. The Maine Central runs to Bar Harbor. While its private cars moved 2,028 miles over other lines, it gave private cars of other lines free rides for 41,521 miles.

Two other offenders cited:

The Louisiana & Pacific, owned by the Long Bell Lumber Co. It gave 60 miles of free car transportation, received 61,046 from big carriers.

Nevada Northern (subsidiary of Kennecott Copper) stationed its private cars some 2,500 miles off-line at the Erie R. R.'s Jersey City terminal.