Since 1926, the trend of U. S. railroad passenger revenues (11% of total revenues) has been down. For a decade the Eastern roads made little attempt to stop it. Fares remained at the 3.6¢-per-mile level set in pre-bus, pre-depression days.
In 1936, tired of waiting for railroad action, ICC ordered the Eastern roads to cut rates to 2¢. Passenger revenues (like business in general) rose. In 1938, the Eastern roads got 18 months' relief from the 2¢ rate, went to 2½¢ for an experiment. Passenger revenues (like business in general) fell. To complicate the experiment, the roads interrupted it with...
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