The Birmingham age-herald., 1910-10-13
M'CREA SAYS RATES
 SHOULD BE HIGHER
Testimony Is Heard By Inter
 state Commission
RAILROADS NOT BUSY
PennsyIvnnia's President Declares That Freight Rates Should Be Raised to Offset Recent Advance in
 Wages of Employees

Washington, October 12.-President
 James McCrea of the Pennsylvania Rail-
 road comoany rendered Illuminating testi-
 mony days hearing before the in-
 ters> rN merce commission on the P 2 ,o Advances In freight rates by the N sast of Chicago. He was on the ess stand throughout the day. and in ) .le judgment of the members of the 1 commission proved an admirable witness. He urged the necessity from the view point of the railroads in making the
 proposed increases in rates owing to the
 increased expenses in wages incurred by the roads during the last 10 years-ag- gregating 33 per cent in the case of the Pennsylvania railroad. The increased
 cost of living, which bears upon every operative in the railroad service. great
 or small, and the increased cost of main-
 tenance of a railway service adequate
 to the needs of the American people.
 In the course of his testimony he as-
 serted that the results of the constant in- crease in the business of the Pennsyl- vania railroad through a long period of
 years had been distributed either through
 reduction in rates, increase in amounts paid for wages and material or by re-
 investments in the property not capital
 ized. He expressed the earnest belief that property of the magnitude of the
 Pennsylvania railroad rendering a ser
 vice satisfactory to It's patrons and de-
 irving as it did derive in 1909 net earn ings to the amount of only 6.01 per cent of the amount actually invested in the
 property, was entitled to fair consider
 ation by the government and people and
 he could understand how a system of rates which secured such results could
 be regarded as on too high basis.
 The hearing was conducted before the full commission, Chairman Martin A. Knapp presiding. It was attended by
 railroad officials from all parts of the eastern trunk line territory, among them
 being Francis 1. Gowan, general counsel of the Pennsylvania; George s. Patter- son of the Pennsylvania, Hugh L. Bond, general counsel of the Baltimore and
 Ohio Clyde Brown and O. E. Butter
 field of the New York Central and many other attorneys for the carriers.
 Francis B. James of Cincinnati, John H. Atwood of Kansas City, Louis D.
 Brandeis of Boston, J. L. Roberts of Philadelphia, H. c. Barlow of Chicago
 and Clifford Thorne of Washington, Ia
 represented the shipping interest The commission was represented by Attorneys George M. Brown, Frank Lyon, c. c. Hillyer and J. P. Muller. The hearing probably will be concluded tomorrow sftcrnoon after the testimony of President Willard of the Baltimore and Ohio and President Brown of the New York Central is heard.
 President McCrea of the Pennsylvania
 Railroad company as a witness present ed an extended typewritten statement declaring 1t had become vitally impera- tive that out of the surplus earnings of the Pennsylvania railroad 1t should be able to make improvements in service
 demanded by the geral public.
 I've must go forward and not back
 ward" said MT. McCrea, ''as there is nc
 such thing as great railroad standing still"
 MT. McCrea added that in the last 10 or 12 years the Pennsylvania lines east of Pittsburg had expended on their i'm provements and betterments $262, 900, ,00( flor the purpose of enabling the company to go on operating the property on a high plane of development"
 A great part of these improvements he declared, had been of a character tc pr oduce no revenue.
 Mir McCrea indicated that the increase in wages alone to the Pennsylvania rail road during recent months had aggre-
 gated between S.oOo,0o0 and $s.ooo,000 a year.
 MT. McCrea said that during the last
 three years there practically has been no increase in railroad business.