New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-13
ROADS MUST RAISE
RATES, SAYS M'CREA
PennsyIvania's President De-
CIares Money for New Enter
priSes Cannot Be Obtained.
COMMISSION HEARS HIM
He Asserts That Big Sums Spent
for improvements and Wage
Increases Make Higher
Rates a Necessity.

Company. rendered Illuminating to-day's
hearing before the Interstate Conmerce
Commission on the proposed advances IN
freight rates by the roads east OF Chi
cago. He was on the witness stand
throughout the day, and in the judy
ment of the members OF the commis-
sion proved an admirable witness
He urged the necessity. from the poinS
of view OF the railroads. OF making the
proposed advances in rates on account
OF the increased expenses in wages IN
Cured by the roads in the last ten years
-aggregating 80 per cent in the case
Of the Pennsylvania Railroad-the in
creased cost of living. which bears on
every operative in the railroad service
great or small. and the greater cost OF
maintenance OF railway service ade-
ouate TO the needs of the American peO-
pie.
Asked bv Commissioner Prouty as to-
future railroad development IN new ter
ritorv. Mr.. McCrea said he believed no
uonev would be available for new -atl-
I
road enterprises
..It is not possible" he asserted We
cannot get the money anywhere for that
sort OF exploitation"
In the course of his testimony Mr. Nc
Crea asserted that the results OF the
constant increases in the business OF the
PennsvIvauia Railroad through long
pArtod Of years had been distributed
either through reductions In rates, m
creases in amounts paid for wages anu
material or by Refreshments IN the
nronertv not capitalized He expressed
the earnest belief that property OF the
MAGNITUDE of the Pennsylvania Rail-
road. rendering a service satisfactory 10
it's patrons and deriving, as II did de-
| rive in 1909 net earnings to the amount
of only sol per cent Of the amount
actually invested in the property. was
entitled 10 fair consideration by the gov
eminent and the people, and he could
not understand how a system OF rates
which brought about such results eoulo
be regarded as on too high bass
Calls Increases VitslIy Imperative.
President McCrea presented type
written statement declaring II had De
come vitality imperative that out OF the
surplus earnings of the Pennsylvania
Railroad 1t should be able to make I'M
movements in the service demanded by
the general public.
I'VE must go forward and not back
yard, said Mr.. McCrea. "as there is no
| surh thing as a great railroad standing
STILL
He pointed out that large amount OF
the surplus earnings from year TO year
had been put back into the property OF
the company in the form of better ter
roinaIs stations and safer crossings. al
though much of this expenditure was IN
such a form that no immediate return
upon II could be expected He added
that in the last ten or twelve years the
l Pennsylvania lines east OF Pittsburs had
exnended S262. 100000 on improvements
for the purpose OF enabling the COM
panv 10 go on operating the property on
a hish plane of development
Mr. McCrea indicated that the in
| crsases in wages alone on the Pennsyl-
vania Railroad in recent months had
amounted TO between 100000 and S.
100000 a year. In order. he asserted. TO
enable the company TO meet this IN
creased expense and 70 meet the addi-
tionaI demands OF the shipping and
travelling public freight rates much
higher than those now IN force would be
necessary. It Is absolutely necessary
for the company 70 recoup itself. prob
ABLY by an advance in freight rates. for
the great demand on it's income by rea-
son Of advanced wages and improve
ments."
Mr.. McCrea said that in the last three
years there had been practically no IN
| crease in railroad business
In my Judgment" he continued
least of the Mississippi River, IN years
to come. there is going TO be a markedly
lower rate OF growth OF business. This
is going to fall very far short of making
good on the great increases in wages
and other tremendous expenditures.
He said that the facts as applied 20
the Pennsylvania Railroad applied with
equal force 70 every other carefully and
conservatively managed road
! Mr.. Mccrea Cross-Esanined.
/ The cross-examinatiOn OF Mr.. McCrea
was conducted by Louis n. Brandels
/ OF Boston. representing the Atlantic
Coast shippers. who was counsel for
/ CLAWS in the Ballinger-PinchOt investi-
! CATION. In response To inquiries. Mr.
McCrea said that in the last ten years
| the employees OF the Pennsylvania Rail-
| road had received increases in wages
aggregating SO per cent This advance
was given 10 them principally because
of the extraordinary cost OF living. al
though other causes had contributOry
effect
| Notwithstanding the increased cost OF
living. he added. the thirty thou
sand stockholders Of the PENNSYLVANIA
Railroad, One-half Of whom were women
and children. were receiving the sams
amount In dividends now as they had
In the last ten years. although their ex-
penses had increased prOportiOnately
with those OF the employees.
In a general way Mr.. McCrea testified
that the proposed advance In rates were
considered necessary by his railroad be-
cause the increased inroads on the IN
come had to be repaid from an advance
/ in rates.
MIR. McCrea asserted that the Pennsyl-