Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-11-17
MANAGER
EXPLAINS RAISE
IN Communication
Continued from First pase.)

railroad man said that the general
traffic. manager of the railroad was
responsible for the increases in passen-
ger rates, the company ordering the
advances. however, upon his recon-
m%endation. Asked why he had suggest
ed the increase, Mr.. Wallace said he
did so because he had seen the ne
cessity of establishing a basis for uni
form rates for various classes Of
traffic and distances, and because in
creased revenue was necessary before
the railroad could carry on proposed
improvements.
Mr.. Wallace contended that in spite
of the protest of commuters some Of
the rates were reduced in the revision
that precipitated The investigations At
this point the witness declared COM
muters to be the least profitable class
of traffic handled by the railroads.
Then why did the Erie build up a
committing trailer asked Mr.. Lyons.
1T didn't replied Mr.. Wallace.
who did?
why, nature, of course"
Then Mr.. Wallace went on to explain
that the railroads. were there when
the commuters flocked to New Jersey
and that the railroads had 40 choice
but to carry them over their lines.
Upon further examination the wit
ness said he was not familiar with the
exact financial condition of the Erie,
but that he did know the cost of oper-
ating and that he based his sugges-
tions for increased rates on these
figures. Mr.. Lyons asked him how he
knew the figures given him were ac-
curate, whereupon Mr.. Wallace said
they were furnished by the roads ac-
counting department, and hat was
enough for him.. f.
Would Raise Erie Rates.
Upon questioning by Attorney Robin
son.. of the New jersey Commuters
League, Mr.. Wallace said thai in his
opinion the communication rates of the
Erie might still be higher. He was
next asked if the entire passenger traf-
fc were not profitable. He admitted
hat it was not. Asked If it was q
fact that the dividends come from
freight service, he replied that the rail-
road got receipts from freight, but no
dividends.
j. Blcn ~Livengood, also of the Erie,
was the nex witness. He was asked
what determined the difference between
regular passenger and committing
tariffs. He sale that it was impossible
to establish a uniform rate, because
through trains We're used by COM
muters as well as by other patrons.
Say Roads Lose on
According to James r. Wood, pas
senger traffic manager of the Pennsyl-
vania railroad, and John j.. Rogers. the
assistant general manager of the COM
pany, the railroad is still losing money
in operating the commuters trains, Inc
it is not unlikely that another increase
will be made in the commuters rates.
These witnesses were examined yester-
day Inc gave the impression that the
Pennsylvania railroad was really doing
a charitable act in maintaining the
commuters service.
From the evidence given by the two
witnesses it was difficult to determine
whether the company was justified in
making the increase last July or not.
Both witnesses stated that the COM
muter ought to pay his own way, that
he had not done so formerly and that
he is not doing so yet. They said that
it costs as much to carry a man n
mile as it does ten miles, that the
through service was the paying part
of the business.
Mr.. Woods statement, hat 10 trains
operated between New Brunswick and
New York daily was questioned by Mr..
Ransom, who claims that only twenty
seven trains are at the service of the
commuter, and hat the others are
through trains passing through New
Brunswick on their way to and from
New York.
1t was the opinion of both men that
the had been losing seven
cents on every commuter carried, not
counting the five cents that the COM
pany pays the Hudson tunnel systems
for every passenger that uses the tube
with a Pennsylvania ticket. The in
crease in revenue from the new rates
will be $751; 900 per year, said the wit
nesses.