New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-14
FOR Careful CONSIDERATION.

FOR CAREFUL OASfD6haffoN-
The statement made before the Inter
state Commerce Commission by Presl-
dent AIcCrea of the Pennsylvania Rail-
road deserves the most careful conSid-
Grafton. because it lays stress on factS
which those who want to cripple the
earning power of the great railroad syS-
TENS persistently ignore. Inc Shippers
who depounce the action of railroads in
raising rates to meet increased charges
for wages, maintenance and improve
ments. but who reserve for themselves
an unrestricted right to charge against
tba puhlic the increased cost of conduct
ing their own business operations, al
WAYS assume that advances in freight
charges mean larger proftS TO the
owners of the railroads. But Mr.. Nc
Crea urges that increased railroad earn
ings are returned in various ways to the
nuhlic which the railroads serve. They
90 into higher wages. insuring better
operation and greater safety; into finer
roadbeds. better protected crossings,
more convenient and commodiouS ter
minals and improved facilities OF all
kinds. \ railroad system like the Penn
sylyania is not managed on the grab-all
plan. 1t undertakes enormous better
mentS which it does not capitalize ana
on which it can expect no immediate
return in increased income. 1t meets
the public more than half way in de-
voting a generous share of its resources
TO public uses.
This city. for instance, owes an in
calculable debt to the Pennsylvania
Railroad for having. single handed and
cut of its own treasury, revoluuonlzed
Transportation conditions here and
welded the scattered parts of the city
into one. 1t coura geOusly undertook an
enterprise which this community itself
would not have thought of undertaking,
which has greatly increased property
values in the city and which will event
ually contribute TO the comfort and con
venience of a very large part of the
population Of New York. The cost of
this work was not capitalized and made
charge on the people who get the
benefit of it On the improvements here
the company has realized no returns so
far. and it will he years before it gets
an adequate profit from its Investment,
Il it ever does get one. On the lines
east of Pittsburg, Mr.. McCrea says, the
road has spent in the last ten or twelve
years S262 100000 for betterments, not
primarily profit making, but for the
purpose of ena bling the company to go
ION operating the property on a high
plane of development"
Pennsylvania Railroad stockholders
have never drawn excessive dividends.
The farsighted policy Of the company
has been to anticipate the growth and
wants of the public which it serves
and to spend money freely for the needs
Of the future. In that it has worked for
the common interest, and its patrons
would be much worse off than they are
now if it had planned only for imme
date returns, or had its earning power
been arbitrarily reduced TO a figure
yielding dividends TO the stockholders
and nothing more.
The same thing can be said of every
other progressive and intelligently man
aged railroad system. Before permits
sion to raise rates somewhat is refused
due consideration must be given to the
fact that the cost of operation has risen
rapidly in the last few years and to their
claim that it is illogical to deny the rail
roads a right to compensate themselves
for their larger outlay, especially since to
reduce earning power TO a minimum suf-
ficing for dividends alone would upset
the present programme of liberal i'm
provements and continually bettered
service and end the usefulness to the
public of railroads as pioneers in such
momentous undertakings as those
which the Pennsylvania Railroad has
financed in this city and in other parts
of the territory through which it runs.