March 16, 1936

After examining a trend of decreased passenger revenue for railroads over the last few years, the Interstate Commerce Commission ruled to drop the base rate per mile and eliminate Pullman surcharges. Although Western and Southern railroads were largely unaffected by this, the Pennsylvania Railroad, led by President Martin Clement, was among the most affected due to its heavy non-commuting traffic. The Pennsylvania Railroad carried almost 20% of U.S. passengers at the time, but President Clement remained cheerful despite the impending losses.

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