fare agreement. A conference was held between interested parties in St. Louis on November 21st, at which time further facts were developed which resulted in a withdrawal of the protest by the Missouri Pacific Lines. (1) Freight Train Schedules Between California Points and Seattle.-This case is still pending, and for the present status I would refer you to Paragraph No. 3 above. (m) One Cent Per Mile Week End Excursion Farcs by Illinois Terminal Railroad System.-This action on the part of the Illinois Terminal Railroad System was protested by other Illinois Lines as not being in accordance with the agreement for basic passenger fares in Western Territory. At a conference between interested parties, held in St. Louis on November 21st, facts in connection with this proposal were developed and it was the sense of that conference that the Illinois Terminal System be allowed to continue its experiments, since they appear to be having the effect of regaining to the rails passengers otherwise moving by bus or automobile. It was agreed that the experiments might continue until information is received indicating that the continuance of the rate will break down through rates or prevent other lines from maintaining fares authorized in the basic passenger fare agreement, in which event the Illinois Terminal stands ready to withdraw the 1 cent fare. (n) Ertension of Industry Track at Harlingen, Teras, by Missouri Pacific Lines. Please be referred to Paragraph No. 6 above indicating the present status of this matter. (o) Proposal of the Missouri Pacific and D. & R. G. W. Railroad Companies to Establish a so-called "All Commodity" rate Between Kansas City and St. Louis, Missouri, and Denver, Colorado.-The proposal in connection with this matter was revived by the Missouri Pacific and D. & R. G. W. Railroad Companies, and is now being given reconsideration. For the present status please see Paragraph No. 2 above. Very truly yours, H. G. TAYLOR, Commissioner. EXHIBIT No. 281 COMMISSIONER OF WESTERN RAILROADS, To the Committee of Directors: For your information I am outlining below the activities upon which I have been engaged during the month of January 1934, some of the subjects having been discussed at the meeting of the Committee of Directors held in New York on January 10, 1934: 1. Proposed Reduction in Rates on Miscellaneous Packing House Supplies Westbound and Inedible Packing House Products Eastbound between Chicago and Missouri River Points.-As reported at the meeting of the Committee of Directors, conference between the chief executives of all lines involved was called for January 24, 1934, in my office. This meeting was held and disposition of the above proposal made as outlined in my Circular Letter C-11-5 of January 26th. 2. Proposal of the Missouri Pacific and Denver & Rio Grande Western Railroad Companies to Establish a so-called "All-Commodity" Rate between Kansas City and St. Louis, Missouri, and Denver, Colorado.-After securing all possible information with regard to this proposal, report and conclusions were rendered in accordance with my letter C-4-3 of January 15, 1934. 3. Freight Train Schedules between California and Seattle.-This subject is still pending for consideration as it has, up to this time, been impossible to fix a date for conference convenient to all parties at interest. I trust that this will be possible during the coming month in order that disposition may be made without greater delay. 4. Air Conditioning of Passenger Equipment in Night Trains between Chicago and St. Louis.—In connection with the air conditioning program which will be undertaken by Western Roads for the coming season, statement was made by the Alton Railroad that they reserved the privilege of transferring air-conditioned sleeping-car equipment in service on night trains between Chicago and St. Louis when such occasional action was necessary. Protest was immediately filed by the other Chicago-St. Louis Lines to this reservation, advising that if such practice were placed in effect it would be necessary for them to air condition their night trains in order to meet the competitive situation thus created with resultant heavy expenditures for air-conditioned equipment which they did not SCIENTIFIC AND TECHNICAL MOBILIZATION feel was justified at this time. Statements outlining in detail the position of the parties involved are now being prepared and disposition of this subject will doubtless be made during the coming month. 5. Application of Intrastate Rates to Interstate Shipments of Dressed Stone between St. Louis and Kansas City, Missouri.--Protest was filed by the Missouri Pacific Railroad Company to the establishment of an interstate rate of 111⁄2¢ per hundred pounds on dressed stone from St. Louis to Kansas City, Missouri, by the Missouri-Kansas-Texas Railroad Company, as affecting the through rate on this commodity from Bedford, Indiana, to Kansas City. Disposition of this protest was made as outlined in my letter C-20-2 of January 22, 1934. 6. Regional Coordinating Committee, Western Railway Group.-The activities of the Regional Coordinating Committee are steadily increasing and the roads in Western Territory are engaged in furnishing information of varied character to the Coordinator or members of his staff in response to questionnaires which have been furnished them. The first report of the Federal Coordinator has now been made to the Interstate Commerce Commission and transmitted to the President. Doubtless you have taken occasion to read this report and have noted the numerIt is my understanding that a rather revolutionous subjects being investigated. ary proposal will be made with respect to handling L. C. L. merchandise, but that report has not as yet been rendered. Studies of terminal operations are being pressed in Western territory and consideration is being given to the suggestion of the Coordinator that one terminal be selected at which unified operations may be undertaken in order to fully develop the feasibility of that scheme. It is interesting to note from statistics recently compiled that Western Carriers have been able to effect, during the year 1933, permanent economies local to their own roads which resulted in an estimated annual saving of $32,380,639.00. The studies of possible economies contemplated by the Emergency Transportation Act, 1933, have resulted in annual savings to the roads involved of approximately In this $1,110,673.00, while economies through joint action, estimated at $1,940,510.00 per annum, would be possible were it not for the labor provisions of the Act. connection approximately 1,250 projects in Western territory, requiring coordinated action of two or more carriers, have been investigated. The large economies which were anticipated at the time of the passage of the Emergency Transportation Act of 1933 have not been realized for various reasons. season. 7. Air Conditioning of Passenger Equipment.-At the meeting of the Western Association of Railway Executives held on January 5, 1934, the roads in this territory presented the programs which they intended to follow for the coming An approximation based upon the proposals submitted indicated that Some of the roads have found about three hundred cars will be air conditioned in Western Territory, these being principally observation, lounge, and dining cars. it necessary to air condition room cars, or combination room-observation cars, but as a general practice air conditioning will not be extended to sleeping-car equipment this year. Dates for placing the additional air-conditioned equipment in service, and for releasing publicity thereon, etc., are now being fixed by Passenger Traffic Officers. 8. Freight Schedules Between Chicago and Kansas City.-For the past several years roads between Chicago and Kansas City have been making second morning delivery of freight at Kansas City as a matter of practice, but there has been no definite agreement covering such service. Recently one of the Kansas City Lines inaugurated the practice of making delivery of freight the first afternoon out of Chicago. If this service remains in effect, it will be necessary for the other carriers to meet such competition, which, in turn, would necessitate placing an additional train in service at a large expense to all companies involved. One road estimated it would require an expenditure of $360,000 per annum to meet the competitive situation thus created. In addition to the Kansas City schedules, it is felt that if a schedule calling for first afternoon delivery were permitted to remain in effect this would eventually spread to all Missouri River points and the Twin Cities and result in an expedited service which, under present conditions, would not be warranted. A meeting of Chief Traffic and Operating Officers of all companies involved has been called, at which time the entire situation regarding freight schedules between Chicago and Missouri River points will be discussed in an effort to reach agreement on this service and avoid competitive expenditures which would result in dissipating the revenues of the carriers and regain little, if any, traffic to the rails. Very truly yours, H. G. TAYLOR, Commissioner. EXHIBIT No. 282 Mr. H. W. SIDDALL, APRIL 20, 1934. Chicago, Ill. Chairman, Trans-Continental-Western Passenger Assn., Mr. J. E. HANNEGAN, Chairman, Southwestern Passenger Association, St. Louis, Mo. GENTLEMEN: Referring to your letter of April 11, 1934, and the discussion at the conference of Passenger Traffic Officers this morning with regard to air-conditioned passenger equipment: Confirming the statements which I made this morning, I am giving below the replies to the specific questions propounded in your inquiry: 1. May the lines in Western territory handle air-conditioned Sleeping or Parlor Cars, or Private Cars, on a charter per diem basis-first, between points between which air-conditioned equipment is operated in regular service, and, second, between other points-in the understanding that the charge for movement of such cars will be based on minimum collection of fifteen fares, and with the further understanding that the renter of the car shall pay all Pullman charges, including air-conditioning charge. Answer: Yes, for available cars. 2. May Western lines operate an air-conditioned car of like type on an overflow basis between points between which one or more lines have that type of car-air-conditioned-in regular daily service, and whether, if that can be done, the air-conditioned equipment charge of $20.00 per day of The Pullman Company may be paid by the railroad operating such car in order that the line may meet competition of other railroads operating that type of cars in regular service? Answer: No. 3. May lines in Western territory operate air-conditioned equipment of any type on any basis of charge between any points except as specifically provided in notice to Chairman Taylor and except as provided in question No. 1. Answer: No. Orig. H. G. Taylor, Chicago, copy H. M. Lull & F. S. McGinnis, Houston. Your letter January 6th with revised air-conditioning program includes program for C. R. I. & P. with no air conditioning south of Dallas, Tex. Mr. Gorman's letter to you January 2nd concludes as follows: "It is not the purpose of the Rock Island to install air-conditioned equipment in any of its trains that will require competitive lines to take on an additional program-it simply wishes to reserve the right to meet the air-conditioning programs of competitive lines." Passenger Traffic Manager Allen advises McGinnis that, effective May 20th, Rock Island will operate through passenger service between Dallas and Houston on Burlington-Rock Island railroads extending present cafe-sleeping car airconditioned now operating Minneapolis to Dallas through to Houston, thus extending air-conditioning service to that point. We fear this action of Rock Island, which is contrary to Mr. Gorman's announcement, may influence Santa Fe to extend its air-conditioned observation sleeper south of Fort Worth to Houston, this sleeper now operating between Fort Worth and Chicago only. In Mr. Bledsoe's letter to you December 22, 1933, he stated if Missouri Pacific air-conditioned from St. Louis to Houston, Santa Fe reserved right to extend air-conditioning program to Houston and Galveston. In St. Louis conference December 27th Southern Pacific, St. Louis Southwestern, Frisco, Missouri-Kansas-Texas, and Missouri Pacific stated they would not meet competition of Santa Fe's air-conditioned sleeping observation car between Chicago and Fort Worth but if Santa Fe should carry out air conditioning between Fort Worth and Houston these lines would have to meet the situation so created. From above you will note action of Rock Island will likely involve competitive air conditioning on a number of lines far beyond existing program. Matter is of such importance that would ask you to help us by conference with Mr. Gorman with view of getting his acquiescence in not extending service south of Dallas in view of his assurance that he would not air condition any equipment that would require competing lines to take on additional program. WA-4. A. D. McDONALD. Mr. A. D. McDONALD, EXHIBIT No. 284 CHICAGO, May 19, 1934. President, Southern Pacific Company, San Francisco, Calif. WA-26 In view circumstances connection inauguration B. R. I. service in meeting competition of car operated on your Sunbeam as well as fact that other Dallas-Houston lines will not enlarge their program and Rock Island reserved right to meet competition when announcing 1934 program it is not my belief that this action violates spirit of air conditioning agreement and I have so advised Rock Island Company. X-18. H. G. TAYLOR, EXHIBIT No. 285 COPY OF MINUTE ACTION TAKEN AT MEETING OF WESTERN ASSOCIATION OF RAILWAY EXECUTIVES, HELD ON MAY 11, 1934 Air Conditioning of Passenger Equipment.-Mr. C. R. Gray, President, Union Pacific System, advised that he was just in receipt of information indicating that officers of that company had, under date of January 4, 1934, made a written commitment to a party moving from Chicago, Illinois to Denver, Colorado and returning via another route to the East that the Union Pacific Railroad would furnish an observation car of the type used on "The Columbine" (an air conditioned car) on the special train handling that movement. On January 5, 1934, the air conditioning program under which Western Railroads are inaugurating air conditioned equipment for the current year was entered into and at that time Mr. Gray was unaware of the commitment referred to. In the circumstances, and in view of the written commitment which had been made, request was made upon the Association that in this instance the provisions of the air conditioning agreement be waived for the purpose of permitting the Union Pacific Railroad to fulfill its written agreement. After considerable discussion relating to the use of air conditioned equipment during the current year, upon motion duly made and seconded, the following resolution was unanimously adopted: "Resolved, That in view of the written commitment made by the Union Pacific System prior to the adoption of air conditioning program for Western Railroads for the year 1934, they be relieved from observance of the agreement in the specific instance cited, with the understanding that such action shall not establish a precedent to be followed in the future." Considerable discussion was had between representatives of Southwestern Railroads with regard to the application of the air conditioning program, it being the opinion of some that the program did not prohibit the solicitation of business by roads not having regularly assigned air conditioned equipment in service on the basis of such companies using that type of equipment in extra service when meeting competition with the regularly established service of other companies. Full and detailed consideration of this matter failed to develop unanimity of opinion, and the subject was passed without further action, it being suggested, however, as desirable that a meeting of the Chief Executives of Southwestern Railroads be called in St. Louis in the near future for the purpose of endeavoring to arrive at some understanding regarding the interpretation to be placed upon the air conditioning program as applying to that territory. Mr. H. G. TAYLOR, EXHIBIT No. 286 ILLINOIS CENTRAL SYSTEM, Commissioner of Western Railroads, Union Station, Chicago, Ill. DEAR MR. TAYLOR: Confirming oral statement at yesterday's meeting, the Illinois Central protests action of The Alton Railroad in respect of its plan to operate air-conditioned equipment on night passenger trains between Chicago and St. Louis, and requests that you take cognizance of this in accordance with the Commissioner Agreement. I am authorized to say that the Wabash and C. & E. I. join in this protest. Sincerely yours, DEAR SIR: The following is offered in support of the protest made by the Wabash, the Chicago & Eastern Illinois and the Illinois Central to the announced plan of the Alton to operate air-conditioned equipment on night trains between Chicago and St. Louis. The announcement of the Alton is that it will occasionally use lay-over airconditioned equipment at St. Louis or Chicago for extra service on night trains. If it were possible to confine such operation to the occasional, the Alton would even then have a very substantial advantage over the other roads, not only in respect of individual travel but more particularly in respect of party movements. Such movements are obtained chiefly by individual solicitation-a condition under which the availability of air-conditioned equipment, even if not advertised or made a part of the regular service, would influence the choice of route. It should here be said that the importance of party movements lies not only in their immediate relation to the entire volume of business but also in the influence which satisfactory service in the handling of such movements has in controlling other business on an individual basis. Even the occasional operation of air-conditioned equipment, however, would make a condition where it would necessarily be more regular than occasional. Travelers encountering such service would naturally expect to use it regularly and would demand that it be regularly provided, and no road could hold out against such demands under these conditions without very great damage to its prestige and patronage. In either of these events-whether the operation of air-conditioned equipment should be occasional or regular-the other roads would be compelled to offer the same service as the Alton. Business between Chicago and St. Louis is so highly competitive that any innovation in passenger service that is provided by one road must likewise be provided by the other roads in order for them to stay in business. Any basis upon which the Alton might operate air-conditioned equipment on night trains between these cities, therefore, would make it necessary for the three other roads also to operate air-conditioned equipment on night trains, and as a practical matter this would mean regular operation. Assuming that it would be possible to confine the operation of air-conditioned equipment for the present to sleeping and club cars or their equivalent now being operated by these roads on their night trains, an outright investment of roundly $170,000 would be required in respect of the three roads, and the expense of maintenance and operation, including interest and depreciation, would be roundly $10,000 a year. The protesting roads are firmly of the opinion that air-conditioned service on night trains would not attract sufficient additional patronage at present business levels to justify the expense. |