New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-10-13
emf. and he believed that the operation
wes honest
No Graft on Pennsylvania Lines.

No Graft on Pennsylvania Lines.
How do lou know" asked MI Bran
deis. that such things as have been de-
veioped IN the Illinois Central graft IN
vestisstion are not occurring in the
Pennsylvania system
II do not believe such a condition
could exist. because of our system or re-
ports and checking" said Mr.. McCrea-
II know. too. through my faith in the
organization and in nay confidence IN
the human aeenoes involved.
AT the beginning of the afternoon SEES
sir, Mr.. MoCrea. speaking generally oil
freight conditions. declared:
r-w~at this courrry needs. and -what
,.r aone so much to develop it. are
,-ansrortsfNon facilities. AT this time L
feel that the improvements-adoIt
facilities for all branches and for aii
kinds of servIce-are very badly neeueo-
AM, scheme Of rates which does not pro
vide for that. treating the railroads as a
broad proposition. will fall short Of what
the country absolutely requires
MIR. NcCrea expressed the opinion, IN
8 general way. that any properly capt.
talized company. economically and
scientifically managed, should be en-
shled TO earn q minimum Of per cent
on the investment, particularly on ac-
count Of the increased cost OF living
He said il formerly was the policy Oh
the PENNSYLVANIA Railroad TO put a dol
lar into improvements for every dollar
paid IN dividends, but unfortunately we
hsve not been able TO continue that
policy"
Plea for Protection Sustained.
on q line Of questions by Cllfforo
Thorne. of Washington. Iowa represent
ing a ooterie of shippers, which seemed
TO iunpugn Mr.. McCrea's truthfufnsss,
the witness appealed TO the commission
for protection He was sustained ana
that line of inquiry was abandoned
In response to inquiries by Frank
Lyon. an attorney of the commission,
Nj MrCrea said:
THE United States needs q deal or I'M
rr,oxen1ent in transportation facilities.
and that can he brought about only by
enlisting additional capital The car
-iers must have a fair return for the
service they render. They must have a
profit sufficient TO make railroad secur-
tiles attractive to investors"
In replying so questions by Commits
sioner Lane as to the condition Of the
market for railroad stocks and bonds.
Mr.. McCrea intimated that he Was pessi-
rnistic as 10 the railroad bond and stock
market OF the immediate future.
Il dislike TO make any definite state
rnent, because it is likely TO react L
really do not know what the situation is
likely 10 be-" he said
Freight Increases Only Remedy.
In conclusion Mr. McCrea gave it as
his opinion that the present situation
could not be met in any other way than
by an advance in freight rates.
Railroads" he said. necessarily live
from hand TO mouth. They cannot af-
ford 10 discount the future. They can
not temporize. We are obliged to meet
conditions as they arise from day TO
day"
Francis ]. Gowen, general counsel of
the Pennsylvania Railroad Company,
declared thet the expenses Of the East
err lines, through increases in wages
and cost Of supplies, had recently been
increased approximately S34 100000 a
year. The receipts under the proposed
advances in rates, If the new tariffs had
been applied. would have increased the
earnings about S27,O00OO0 a year
The hearing was conducted by the full
commission, Chairman Martin A. Knapp
presiding. il IVES attended by railroad
officials from all parts of the Eastern
trunk line territory, among them being
George S Patterson, Of the Pennsyl-
vania; Hugh L. Bond, general counsel
Of the Baltimore & Ohio: Clyde Brown
and o. E. Butterfield Of the New York
Central and many other attorneys for
the carriers.
The hearing viii probably close to-
morrow afternoon. after the testimony
Of President Willard Of the Baltimore &
Ohio and President Brown Of the New
York Central has been heard