Ton-miles as a measure of transportation service combine the factors of weight and distance but necessarily cannot take into account reliability, speed, convenience, consist of traffic, and other matters of economic importance. For example, in regard to circuity, the distance from New Orleans to St. Louis is 685 miles by rail, from airport to airport 607 miles, by the Mississippi River 1,051 miles, and by highway 705 miles. Ton-miles fail also to reflect the service conveniences such as the location of terminals in relation to shippers' or consignees' places of business.

The revenues per ton-mile and revenues per passenger-mile by the various means also show wide variations. Thus, in 1959 the average revenue per ton-mile by rail was 1.459 cents, by pipelines, 0.314 cents, and by class I intercity motor common carrier, 6.277 cents. Respective figures for 1947 were 1.085, 0.292, and 4.847 cents. Water and air figures are not readily available. Differences in consist of traffic are indicated by these figures as well as operating characteristics. In 1959, revenues per passenger-mile ranged from 2.59 cents on regular route schedules for intercity class I motor carriers, through 2.77 cents for class I rail coach, to 5.87 cents for scheduled domestic airlines. The respective average passenger-mile revenues for 1949 were 1.84, 2.41, and 5.76 cents.

Data on a reasonably comparable basis available for passenger-miles cover the much shorter period 1949-60, and recent data for motor carriers of passengers have involved changes that make them noncomparable with the first years of the period. Nevertheless, it is evident that airlines in the period have moved to first place in revenue passenger-miles, whereas in the earlier years, buses and railways were well ahead. The volume of passenger service by water carriers is relatively minor, but the service is important in such areas as Puget Sound and offshore New England islands.

The dominant factor in the passenger field continues to be the private automobile which supplies about nine-tenths of the total intercity passenger-miles by all means of transportation. The effects which the interstate system of highways now building may have on the future distribution of intercity passenger travel cannot as yet be predicted. Thus far only the air-carrier group has shown significant. expansion in total of revenue passenger-miles.

Though there is some indication that institution by carriers of new services and new fares has resulted in some diversion from private automobiles, the opening of new highway facilities has been definitely reflected in lower for-hire patronage. In general, except for air

travel, the shift from for-hire to private automobile is statistically apparent.

The shift toward the lower fare operations continued. Thus, in scheduled service air operations, first class domestic passenger-miles dropped from 17.0 billion to 16.1 billion while coach passenger-miles for the same airlines increased from 12.2 to 14.4 billions between the calendar years 1959 and 1960. With rails, the decline continued to be greater in parlor and sleeping car than in coach service passengermiles. No data are available for "luxury" as distinguished from regular bus service.

While the general movement of combined passenger and freight revenues of the carriers subject to the Commission's jurisdiction has had a general upward trend since 1947, there have been wide variations from year to year, ranging to more than $1.5 billion from the highest to lowest years. The variation for the largest single group, the railroads, has been from $8.9 billion in 1949 to over $11 billion in 1953 in the period of years covered. Revenues of motor carriers of property, second largest through the period, have ranged from $2.2 billion in the first year, 1947, to over $7 billion in the last 2 years. Oil pipelines, now the third largest group, had revenues of about three-quarters of a billion dollars, or well over twice their revenues. at the start of the period. Water lines, although still under half a billion dollars, have also shown substantial increases although recent revenues have been lower than in the peak year, 1956. Motor carriers of passengers have shown the least variation percentagewise during the period with the highest figure about 20 percent above the lowest.

Relatively, declines in revenue have been greatest in the electric railway group, although part of the decline has resulted from transfer of carriers to the category of line-haul railways. There have been also a number of complete abandonments in this group, and one of the largest remaining of these carriers has applied for complete abandonment. Pullman Company revenues have declined continuously since 1952 with revenues in 1960 less than half of those in 1947. The decline in patronage has been greater than the decline in revenue. because of increases in fares. REA Express had its highest revenues in the first 2 years of the period 1947 to the present, but its revenues have followed a fluctuating course since that time with the low point in 1950. The highest revenues since 1950 were reached in 1958; revenues since that time have been not greatly lower and recently have shown improvement.

1940

1945

1950

1955

1960

Source: 1939-1959, ICC, Bureau of Transport Economics and Statistics, Intercity Ton-Miles, 1939-1959, Statement No. 6103; 1960, staff estimates

INTERCITY PASSENGER-MILES, 1949-1960

REVENUE INTERCITY PASSENGER MILES

* Data for 1957-60 on motor carriers not comparable; see footnote to table. Source: 1949-56, 1.C.C., Bureau of Transport Economics and Statistics, Intercity Passenger-Miles, 1949-1956, Statement No. 580; 1957-59, Annual Reports of the Interstate Commerce Commission; 1960, staff estimates.,

Partly estimated.

Shifts of carriers from electric to line-haul railway classification and partial and complete abandonments have affected the decline by an indeterminate amount.

After deducting payments to others for express privileges.

Includes only revenues from domestic traffic of carriers subject to the jurisdiction of the Interstate Commerce Commission.

Does not include motor carrier revenues of electric railways, included under electric railways. *Includes switching and terminal companies.

Sources: 1947-59, Annual Reports of the Interstate Commerce Commission; revised motor carrier revenues, 1947-1956, I.C.C., Bureau of Transport Economics and Statistics, Statistics of Class I, II, and III Motor Carriers, 1939-1956, Statement No. 589; and 1960, staff estimates. Air data from Civil Aeronautics Board; data cover operating revenues in domestic revenue operations only, not including Alaskan or oversea, but do include the local Hawaiian line within those islands.