. Electric railway journal . changing two classes of traffic will be referred to here-after as stable and unstable traffic. The stable or necessary traffic may be assumed toproduce an immediate increase in revenue in proportionto the increase in rate of fare. Ultimately, however, weshould expect some reduction in the number of faresdue to readjustment of industry and living if it werefound necessary unduly to increase rates to meet oper-ating expenses. The unstable traffic cannot be expected to show in-creased revenue proportional to a fare increase on ac-count of a natural decreas
. Electric railway journal . changing two classes of traffic will be referred to here-after as stable and unstable traffic. The stable or necessary traffic may be assumed toproduce an immediate increase in revenue in proportionto the increase in rate of fare. Ultimately, however, weshould expect some reduction in the number of faresdue to readjustment of industry and living if it werefound necessary unduly to increase rates to meet oper-ating expenses. The unstable traffic cannot be expected to show in-creased revenue proportional to a fare increase on ac-count of a natural decrease in travel. Optimisticallywe may expect that the revenue from this class oftraffic will remain substantially the same within reason-able limits of fare change. This will give a basis forestimating the maximum expectation. The lower limit 6 ioo8 k c m 50 v^SNNSS^V UPPEi LIMIT) LIMIT \T0TAL ™V£LStable Travel _ 30 Nonstable Travel 70 -^jJ1 ~g unstable travel\%™r JM/T--^^ \IMIT% STABLE TRAVEL xv1 0 FareFig 5 10n Cents . 1. 0J57 Fare in Cents Fig. 3 DIAGRAMS SHOWING EFFECTS OF INCREASES IN ELECTRIC RAILWAY FARES be no way of telling in advance even approximatelywhat the amount of increase in revenue will be. It is customary to speak of the theoretical or possibleper cent increase in revenue as directly proportionalto the increase in rate of fare. Of course such an in-crease in revenue cannot be considered as probable noreven within the range of expectation, since it would bebased on the assumption that the number of fares wouldnot be effected by increasing the rate of fare. It hasbeen the general experience that the numbr of fares hasbeen very materially decreased by an increase in fare. This situation presents an interesting problem whichunlike engineering problems is not susceptible of exactmathematical solution, but it is possible to determinecertain limits between which we may expect results of expectation from unstable traffic may be estimatedconservatively by assuming th
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