Daily press. [volume] (Newport News, Va.) 1896-current, 1910-10-13
INCREASED WAGES ARE
GIVEN AS HIS REASONS
Head OF Big Corporation Shows the
Necessity Of Advances TO Meet
Higher Expense OF Operation In His
Story TO the Interstate Commerce
commisslon-Makes Good Witness.

(By ASHOcittei rtbsb
WASHINGTON, Oct l2-President
James McCrea. OF The Pennsylvania
Railroad Company, rendered illuminai-
.ng testimony in today hearing before |
the Interstate Commerce Commission
on the proposed advances IN freight
rates by the roads east OF Chicago. |
He was on the witness stand through |
the members OF the commission proved
an admirable witness. He urged the
necessity, from the viewpoint OF the
railroads, In making the proposed IN
creases in rates on account OF the in
creased expenses In wages incurred by
the roads during the last ten years
aggregating 80 per cent. In the case
Of the Pennsylvania railroad-the in-
creased cost of living, which bears
upon every operative in the railroad
service, great or small and the In
creased cost of maintenance of rail-
way adequate to the needs OF the
American people.
Money Is Distributed.
He asserted that the results OF the
constant increase in the business OF
the Pennsylvania railroad. through a
long period of years. has been distriD-
uted either through reduction In rates.
increases I'm amounts paid for wages
and material. or by reinvestments in
the property not capitalized. He ex-
pressed the earnest belief that a prop
erty of the magnitude of the Pennsyi
van railroad rendering a service sat-
isfactory 10 its patrons and "deriy-
ing. as il did derive In 1909. net earn
ings to the amount OF only sol per
cent of the amount actually invested
in the property" was entitled to fair
consideration by the government ana
by the people. and he could noi under
stand how a system of rates. which Sc
cured such results. could be regarded
as ON too Oh basis
The hearing was conducted beforei
the full commission. Chairman Mar
tin A. Knapp presiding. 1t was attend
ed by railroad officials from all parts
Of the eastern trunk line territory.
The hearing probably will be con-
cluded tomorrow afternoon, after the
testimony of President Willard. OF the
RaIt more & Ohio railroad. and Pres
Ident Brown. Of the New York Cen
tral. is heard.
The cross-examinaiion OF Mr.. Nc
Crea was conducted bv Louis ID. Bran
deis. of Boston. representing the At
Iantic coast shippers.
Reasons For Increase.
In a general wav Mr.. McCrea testi-
fled that the proposed advances IN
rates were considered necessary by
his railroad bcause the increased IN
roads on the income had to se re-
couped by an advance In rates.
Mr.. McCrea. speak:rg generally or
freight conditions. declared what THIS
country needs and whsJ has done sc
much TO develop II. are transportation
facilities. At this ;iinc feel tina TIC
,mu-, ements-add;tio al facilities Tor
ALI kfa,s Of service very BABY
needed. Any scheme Of rates which
cccs MT ,sov.de for 'Aat treating the
railroads as a broad proposition. VIII
fall short Of shat the country ALSO
Iuefely requires"
Mr.. McCrea expressed me opinion
that anv properly capital zed company.
economically and scientifically man
aged. should be enabled to earn q nil
imum CT : per cent. on the investment.
particularly on account Of NE IN
creased cost Of living. lie said that u
formerly was the policy Of the Penn
svlvsnia railroad 20 put dollar n
improvements for everv dollar paid ~
dividends. ~but unfortunately We have
rot been able to continue that P'I
icy
In response 20 inquiries. Mr.. Necrea
said:
Needs Of the Country.
The United states needs deal
~ snrrovemeut In transportai'o Ia
cli,ies. and that can he brought aboai
only bv enlisging additional capital
The carriers must have = fair return
for the service they render. They
mrs. have a prodt sufficient % make
4 fr-.sf-...ur -, tsour4r paro1