The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-07-12
Question Right of Commerce
Commission TO Suspend
Increased Rates.
ONE ASSERTS LOSS
is 100000 YEARLY
New Rail Law May Be Tested in
Court IF Rates Are Ordered
Kept Down.

Question as TO the jurisdiction of the
Interstate Commerce Commission in the
controversy and claims that the Della
ware, Lackawanna and Western RAN
road had lost s. 112,C00 IN the operation
of the Morris and Essex division Of the
system in the past ten years were
brought out today at the opening ses-
sion Of the Investigation by the com
mission into the reasOaa bIeness Of the
proposed increases in the communication
rates from points IN New Jersey TO
Kew York city
On the result OF the investigation viii
hinge the decision Of the Commission IN
regard to suspending the proposed
rates, offered by the Erie, the Lacka-
wanna, the Lehigh, the West Shore,
the Central OF New jersey and other
interstate carriers. The rates were TO
have become effective June 3. but, on
complaint Of the Railroad Commission
Of New jersey, were held up until July
p by the Interstate Commerce Commis-
sion pending the outcome Of the inves-
tIgatiOn now in pTOgTeSs-
Questions Jurisdiction
George F BrOwneII, vice president and
general solicitor Of the Erie, who was
heard first, promptly raised the question
Of Jurisdiction, cOntending that the
commission had no authority 10 suspend
rates when the tariffs were filed be-
fore the new railroad bill went into
effect He dweIt at length on the
point, intimatiug that the issue may be
carried into the courts in the event Of
any unsatisfactory termination Of the
hearing
After his plea. that the new railroad
law is in no sense retroactive, M
BrowneI launched into IN argument cal
cuIated to show that the increase Is
based on an actual demand for more
revenue 10 make improvements for
which there Is a cIamor along the line
He called attention TO the fact that the
Erie had expended 3, g00. 90 for improve
ments, including the tunnel under the
Hudson river. which he characterized
as a stroke 20 better the passenger ser
vice. He also said that the 1910 increase
IN wa gcs VIII amount 10 Sl,9otsvp a year
Rc-arl5inE the commute non fares 1if-
Fyrov-ucU said that for years the pas
ser.er fare IN New Jersey mad been ~
cents per mile. and the cCn1rnLla-io-
tickets were issued to MI empty seats
He Sa5d the present communication rate
IS less 1lan 0ue-haIf the REGULAR rate
and tSaL the actual cost or haullIE q
passenger is Is cents per mile
Loses 100000 Z Year.
President W H Truesdale. Of the
T.ackawanna- furnished a mild seEsa-
rfon when he declared that for the
mast ten years the company had op-
/ Grated the Norris and Essex division,
COMPRISING all but one branch in
+ New jersey. at a yearly loss Of about
( 81 600. 600. the net deficit in the period
being S9.5I20O0-
Another Assertion by Mr. Truesdale
that created some surprise vas IL-sLS
tn, Lacka'yanna nae s5el1l ~ -
on the Morris and Essex DIVISION IN
{ ten years while the net revenue from
/ an sources was but S5,O0o,UUU-
Rather d poor business prOpoSlloIl'
[ isn't it2'f asked COMMISSIONS Erouty,
and the railroad UaSnaJe smiled
ASKED bv Commissioner PrOuIy II
I the proposed increase would De nor
remuuerative- Mr. IrueSd'tle ItplieS
that the loss would not De 50 great
capitalization of Road
He then informed the Commission
a-e that plans have been worked VI
md estimates obtained on improve
meuts 10 cost upwards OF $7-9vorvvV
The improvements 10 include ellmlna-
ton Of grade crossings, new passen-
/ ger stations and the extension Of tbs
- e. also explained that the Morris
and Essex division Is capitalized al
/ S4cO- 00U per mile as against SoVvfyVt
/ per mile Oh the rest OF the system De-
l cause OF the extra cost IN operation.
/ Mr. TTuesdale was followed on the
stand by other LaCEaWanna O1nclaIs
I who SubStautIatec his testimony ana
/ save additional details
! Attorney Frank Lyon cTOss-eXarnlne &c
! the witnesses for the Interstate com
/ merce Commission while Attorney
/ General Wilson Of New Jersey and
/ his assistant, P r Backes; Iookeo az
/ ter the interests for the New jersey
/ EafIroaG Commission
Railroad Men Present.
! Appearing as witnesses and attor-
! reys for the railroads are
1 F,rie-George F BrowneH. vice presi
dent and general solicitor; II. A Tay
1 Tor. assistant general SOLICITOR r II
/ wallace, general passenger agent, an'
In " cook, traffic manager
/ I.acka NAV H TrueSGale, preSl
ldeIit- b D Caldwell, vice president, "
cou6seI- NJ NJ StaIlman. general aJtOr
|ney. and G. A Cullom, general paSsen
T.e5Iign-J F Schepperkotter. genera
counsel, and T. y Jarvis, vice presi
West shore-C. c. Paulding, genera
4 solicitor
central Of New jersey. Z. Reynolds
General attorney G. W Huntington
/ General Superintendent, and W. g. Hope
general passenger agent
/ Il Is expected that the hearing WI
lake several days. as each official
EARNED with a mass of data and stats
tics.
gets PENSION; WEBS
WORKHOUSE INMATE