fixed for the carrying of goods, viz.: Zone I, for distances
less than 200 kilometers (124 miles); Zone II, for distances over 200
and less than 400 kilometers, and Zone III, for distances over 400
kilometers. A uniform tariff is established for each zone, which is
one-third less than the average freight rates for equal distances
formerly in force. American railroads should profit by the wisdom and
experience of the Hungarian Government, and adopt at an early day such
features of its system as upon our soil and under our institutions may
be made practicable. The Hungarian system, with some modifications, is
now being tried by Austria and a few of the German states, and is
increasing railroad revenues wherever adopted.

There is a growing demand for lower fares. This demand increases in the
same proportion in which the desire and the necessity for travel
increase. European states have not been slow to meet it. Reductions are
made everywhere, and chiefly favor the lower classes. Thus, when France,
within the last year, changed her passenger tariff, she reduced
first-class fare 9 per cent., second-class fare 18 per cent., and
third-class 27 per cent.

The European passenger reports show the numbers of first and
second-class passengers are continually falling off, while those of the
third-class passengers are fast increasing. In England and Wales the
number of first-class passengers fell between 1875 and 1889 from
37,000,000 to 24,000,000 while the number of third-class passengers
increased during that same period from 350,000,000 to 601,000,000, and
this increase still continues. In the United Kingdom the number of
third-class passengers for 1891 was over 750,000,000. Furthermore,
passenger revenue comes chiefly from the third class. In the United
Kingdom the receipts from first-class passengers were in 1889
L3,188,000; from second-class passengers, L2,705,000; and from
third-class passengers, L19,785,000. It is thus seen that receipts from
third-class passengers are nearly 3-1/2 times as large as those from the
first and second-class passengers combined. A similar proportion is
found in nearly every country on the continent. European roads
discovered some years ago that first and second-class passengers were
carried at a loss, and all the passenger earnings were derived from
third-class passengers. The profits from this source show a considerable
increase every year.

The average fare per mile is 2.15 cents in the Uni