The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-11-18
LONG CHARITY TO COMMUTERS
~ DiDN'T PAr TO CARRS THEw.
Bt'r ROADS cor THE HaBIT.

BETTER for the Reads 70 The, "a Tive Ia
New fsrh. says the Erie's q. p. I.
i.acaaw anna secs No Reason Mhy
Through Passengers shsuid Pay Loss.
More testimony that the railroads were
carrying Jersey commuters at dead lu-s
when they raised rates was given yester-
day at the Wa ldorf before James n Harlan
OF the Interstate Commerce Commission
W. H. II. Wallace. genera Passenger agent
o. the Erie. testified that the figured cost
10 tho line III transporting commuters
was based on the assumption that each
commnter used up his sixty trip ticket
ihe attorneys from the OF her side OF the
table said that a. a matter OF fact many
commuters complained that they paid
Tor more trips than they could use
Mr.. Wallace said that one reason for the
raise OF rates was that ths company
wished to put rates on a systematic basis.
since complaints had been received from
Commuters that the road charged more
On some lines than on Others. Other
reasons were the cost of improvements.
greater cost Of operating. better service.
and the loss the road was suffering on its
Communication business. The road he said.
had continued this losing business a.
long as IL had merely because IL was
afraid that n sharp advance would div.
the commuters OF the lines
In reply to questions from Frank Lyon.
counsel tho commission. Mr. Wallace
testified that he did not think il q benefit
to the railroad TO have the territory along
Its lines built up
va,, sh,,L =, --~,,il - L-.,.. -
have the commuters live in New York
or to prohibit their living at ala asked
Mr. Lyon
1t would be better for the road g earn
ings to have them live in New York.
was the answer
Charles ID. Drayton, for the commuters.
asked Mr., Wallace why il was II the COM
mutin9 business was done a, a loss that
he predecessors OF the presen. officers
VI the road ever had begun the business
at ali-simply TO make the road lose money
on each and every commuter. The wit
ness said he didn't know why
Mr.. Wallace continued that tn. road
had made no inc rease OF over 81 a month
on any ticket and that eighty nine miles
on the main line was the limit Of comrnu-
tation. He did not know whether the
Erie's terminal expenses were a. heavy
a. the Pennsylvania or not. but knew
they wsrs heavy. Communication rates
ought to he higher at New York than 10
any other city in the world he said.
because terminal cost is higher In adj
dition tbs Erie operates over an eight
mile barren stre:ch IN the Jersey meadows
from which il receives no revenues
Chicago is far ahead OF New York 10 the
matter Of cheaper terminals The bright
spot in Mr. Wallace's testimony for the
Orylf ysaT-l wh hA
that the road was going to install a fifty
minute running time Between Caldwell.
y J., aud New York IN place Of one hour
George c. Rogers, assistant passenger
agent OF the Pennsylvania Railroad. was
recalled. and William l.. Ransom, repre-
senting the New Brunswick Board of
Trade. presented some figures 10 him in
an effort 10 show that the railroads. bus
mess from that point was done at profit
instead Of a loss as had been testified
the day before. Mr.. Rogers couldn't
cipher IL out that way.
George A. Cullen. general passenger
agent of the Lackawanna. testified that
rates were raised to over
come the losses IN operating expenses
in the State 81 New Jersey which means
the Morris and Essex division. In IN.
last ten years, he said. thus division had
been operated alta loss Of appro xima leiy
ZOO for the ten years. Theoretically
he said, each division Of a railroad ought
ton business never paid. Mr.. Lyon
wanted to know what the witness thought
OF raising rates when the company could
pay 80 per cent. profit on its ca pitaIization
and some q per cont ON its cost OF road
and equipment but Mr. Cullen said he
thought IL perfectly fair to raise the rate
and thar he knew Of no reason why one
passenger. n commliter. should he carried
at q loss. while another from n longer
was asksd 10 make up the
difference.
The Communication business. Mr. Cullen
explained. had been taken up nv practi-
cslly all the roads years ago as "A sort Of
by-product. but now u had become one
OF the main parts OF the roads business.
II could be seen. he said, that the men
who had established the old rates on the
idea that the business was-a side issue had
made a great error. In answer to a que--
ton from Mr.. Lyon Mr. Cullen said thar
he thought the Lackawanna and every
other corporation should increase irs
revenues every year. He did not. how
ever, think it would-pay to drop the com
mutation business entirely. even though
the road does lose money on IT,
Terry Parker. attorney for the New
Jersey Commuters League. brought out
except those Of the coal business. were
charged to the communication traffic. and
Mr. Cullen ssid he Thought this was fair .
Mr. Parker took the records hack twenty
years to- IA time when Phoebe SNOW was
a little child. and got a laugh. The wit
ness Maid that the increase IN wages for
7 he year 1919 was 81 San. 0OO and hat since
Z he demands Of the employees last summer
another rai-e Of a million had been made
When Mr. Parker brought mp the mai ar
Of the ackawanna's great earnings
Mr.. Cullen said that he did MOI rhink
thar the abnormallv low capt. alizst ion |
II this railroad ouEh, to have ANYTHING
TO do with an increase in rates. While