Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-10-13
N 'CREA SAYS
INCREASE IS
NEEDED
EASTERN ROADS MUST
MAKE IMPROVEMENTS
Pennsylvania President Tells
Inter State Commission.
Rates Must Be Raised to-
Keep Pace With Maintenance.
fHy Morning souroai special Isasea wlreI

iBf Morning jonrnh HDeehh A@hsf" Nlrri
Washington, oct presiden,
james McCrea OF the Pennsylvania
railroad rendered illumint'iag today's
hearing before the interstate CON-
merce commission on the proposed
advances In freight rates by rallroo0s
east Of Chicago.
Air. McCfea urged the necessity Of
The proposed increases, on account of
the Increased expenses in wages ~ +
CURED by the roads durln6 the last
ten years---ag ageregsting 9S per cent "a
the case Of the Pennsylvania and tine
Increased cost Of maintenance Of ser
vice
The witness said mat the results OF
the constant increases IN the business
Of the Pennsylvania, through Ions
period of years, had been distributed
either through reduction in rates, in
croases in wages and amounts paid for
material or by reiuvestments in the
property not capitalized.
The hearing was conducted before
the full commission, Chairman Mar
tin A. Knapp presiding.
At the opening OF the heariss
Francis [, Goaten. general counsel FOR
the Pennsylvania. said the expenses
Of the eastern lines, through Increases
In wages and cost OF supplies, re-
Gently had been Increased approxi-
mately sS4,00Q,00 year.
Under the proposed advances IN
rates earnings would have increased
about $4,000, 900 q year.
President McCrea Of the Pennsyl-
vania testified that in the last ten or
, twelve years the company's lines east
Of Pittsbure had expended sg62,000,-
aCa or ,saprovamepis,
Notwithstanding the increased cost
OF living, said Mr.. McCrea. the $1,000
stockholders Of the Pennsylvania rail-
road-~one-half of whom were women
and chlldren---were receivig the same
amount ia dividends now as thcS
had received during the last ten
Years although their expenses had in
creased proportionately With those OF
the employees.
Mr. McCrea testified that the in
creased inroads on the income made
necessary the proposed advance in
rates. lie asserted that the Pennsyl-
yanta had never been operated with
greater economy fAAlAlfliNs eht Hhif-
than now. and he believed that the
operation was honest
"How do you know e' inquired
Louis H. Brandeis Of Boston, repre-
senting Atlantic coast shippers, that
such things as have been developed
IN the Illinois Central graft are not
occurring in the Pennsylvania sys-
TEN ?"
"I do not believe such q condition
could exist because OF our system OF
reports ana checkine," said Mr.. Me
Crea. n know, too. through my faith
IN the organization ana IN my con-
fidence u the human agencies in
volved"
Mr.. McCrea declared;
what this country needs and what
has done so much to develop 1t, are
the transportation facilities AZ this
time feel that improvements are
very badly needed Any scheme OF
rates that does not provide for TINT.
treating the railroads as broad prop
ositlon will fan short oe what the
country absolutely requires.
Mr.. McCrea expressed the opinion
that any properly capitalized com
pany. economically managed, should
earn a minimum OF per cent. par
ticuiarly on account Of the Increased
cost Of hving.
In conclusion. Mr.. MeCrea declared