New-York tribune., 1910-07-13
COMMUTERS CASE HEARD
They Protest Against Proposed
Increases in Rates.
RAILROADS MAKE REPLY
Interstate Commerce Conmls
sion Listens to Arguments
from Both Sides.
From The Tribune Bureau. ]

| From The Tribune Bureau1
/ washington, July L.-The first hearing
under the new interstate commerce act was
held to-day, when the New Jersey COM
muters submitted their protest against the
raising Of rates from stations in that state
! into New York by the Pennsylvania RAIL
road, the Delaware, Lackawanna & West
ern, the Central Railroad of New Jersey,
/ the Erie, the West Shore and the LehlSh
| Valley. The railroads were represented by
| a formidable array of counsel and traffic
! experts Two sessions were held by the
| commission, the hearing closing shortly be-
| fore o'clock. The increased rates are TO
go into effect on July 20. and the COM
muters appeared to-day to ask the comInls-
sion to suspend the new rates for 40 days
while a full investigation into their reason
ableness is being made 1t is expected that
decision will be made in three or four
| days.
! The representatives Of the railroads de-
MED the Jurisdiction of the commission to
suspend the proposed increases, on the
ground that the new rates were filed be-
| fore the enactment of the new interstate
| commerce law. They maintained that the
proposed increases are warranted because
expenses have increased greatly. They dis
/
law authorizing the commission to suspend
proposed increases, contending that this
power should not be used except in ex-
traordinary cases. when it appeared that
irreparable injury would be done unless
suspensions were ordered. They said it was
a power analogous to that exercised by
courts of equity in issuing temporary re-
straining orders. All the railroads repre-
sentatives maintained that their lines were
losing money on suburban passenger traffic
from New Jersey points to New York.
George F. Brownell, of the Erie, said that
his road had spent sS,0o0,000 for improve
ments, including the open cut through Ber-
gen Hill, which, he said, would greatly
improve the passenger service. He also
said that the increases in wages in 1910 will
amount to 81 $4,000 year.
Regarding the communication fares, Mr..
Brownell said that for years the passenger
fare in New Jersey had been ~ cents a
mile and the communication tickets were is
sued to fill empty seats. He said the pres
ent Communication rates are less than one
half the regular rates. and that the actual
cost of hauling a passenger is 1-5 cents a
mile.
1.-The increase in average revenue
ride Mr. Brownell added, ranges from
a.
Greenwood Lake division. and the average
for all lines is 40 cents. The increase in
average revenue a mile ranges from 16
mills on the main line to 81 mills on the
Newark division. The average for all lines
is 20 mills.
THE Communication business is not profit
able, and does not pay its fair share Of
conducting the company's business. The
current expense Of conducting the business
has increased largely. Immense sums have
been expended in improvements, many of
which have been demanded by the COM
muters, and the present rates are unduly
low as compared with Communication rates
in other parts of the country
Lackawanna Expenses. ,-.-- D..
W. H. Truesdale, president of the Lacka-
wanna, furnished a mild sensation when he
declared that for the last ten years the
company had operated the Morris & Essex
division at a loss of about Si,000060 a year.
the net deficit in the period being $s,512, 600.
Another assertion of Mr.. Truesdale which
created some surprise was that the Lacka-
| wanna had spent s150o0,000 on the Norris
! & Essex division in ten years, while the net
revenue from all sources was only s., 100000.
Mr.. Truesdale testified that the per capita
cost of handling communication traffic had
materially increased since the rates were
put into effect. years ago. The new rates
would not be highly remunerative, he
thought, although they would aid the COM
pany in meeting its expenses.
George A. Cullen. general passenger agent
of the Lackawanna, said that in most in
stances the proposed rates were lower than
communication rates on other lines for
similar distances. He figured that the gen.
eral increase in communication rates by his
road would average approximately 10 per
cent He presented a table showing that
the increase of the cost of labor of all
forms in the last year had amounted to SO
per cent. In discussing the cost of handling
passenger traffic, he asserted that it cost
Al per cent more to-day to seat passenger
in coach than it did twenty years ago.
J. B. Thayer, third vice-president of the
Pennsylvania Railroad, gave testimony
along the same lines
At the afternoon session W. c. Hope gen
eral passenger agent of the Central Rail-
road of New Jersey, testified that the COM
mutation rates averaged his company 55
mills mile. He declared the service was
not remunerative and. in his judgment its
absolute cost was greater than that of the
general passenger service In his opinion
the present Communication rates were much
too low and additional revenue ought to be
derived from the service.
In presenting elaborate tables on the COM
mutation traffic H. A. Taylor, of the Erie
Railroad, said that the Eries taxes in New
Jersey had been increased 151 per cent in
the last ten years.
Commuters Side Presented.
Attorney General Wilson of New Jersey
urged the commission to suspend the rates
in order that the complaining commuters
might have an opportunity TO study the ex-
hibitS made by the railroads and reply to
them.
These increases he said, ARE a men
ace to the prosperity of many communities
where haulets have developed into villages
and towns have blossomed into cities. 1t is
an unwarranted hardship on tens of thou
sands of people who have buflt and are