The Washington times., 1910-10-12

President Jasnes NIcCrea OF the Penn
s11vaHIa railr]ad was the leading v-f.-
ness today when the Interstate Com
merce Commission began its f1ves.i-
CATION as "a comm sslon OF the who O.
INTO the reasonabie1ess OF the proposed
rate increases in the official CIaszffca-
( ron territory extending from New Ems
I land 10 the Mississippi river
NJ NcErea, after uazinE a nrr.rr--
I mary statement which he had prepar-
ed IN advance, was subjected 10
I vigorous concentration by Attor-
ney Louis r Braudeis representing tie
shippers Of the Eastern cities.
This examination tended 70 show thar
T, the Pennsylvania road was makfn-
enough money now and thar no nece--
sity existed for that system Increasing
iIs revenues 10 meet higher operating
costs due TO increased wages 60 en-
pIOyes-
More than two score prominent rail-
road men were iu Washington today
prepared 10 participate in the hearing
granted 10 the railway executives by
the commission President Daniel W.T.
lard. OF the Baltimore and Ohio. viii
20 on the stand this afternoon. Przs=-
dent Nellen, OF the New Haven. VIII
follow him. and other executives VIII
present their views To- the commission.
Tn addition 70 Nr. Willard. 0f the Bzr-
timore and Ohio. General Counsel Hugh
T. Bond, 'f that cr1I-anr and VICE
+ President GeorEr n SHrfvcr. AN of Bal
. umore, are here A. J.. Beck. rraFf...
manager OF the Merchants and Mann
tactUrers' Association rf Baltimore is
here representing the shippers Of that
city
Estimated Revenue.
Before rHe president or the Fauu-r-r.-
MIA vent ON the stand. General Counsel
Gowau. Of that system. submitted 70
statement I'm which hc declared that tho
proposed raJc increases iu the official
classification territory would net the
roads only about E--.gItgl1. This was En-
direct contradiction % the published
statements o. Attorney BraudetS for the
shippers. who has declared that the rev
eUue Of Tie various roads fu the East
VIII be Increased more than sf5ar-.. Hf1
if they are allowed by the commission
TO exact the additional freTrht charee.
. from the shippers
Continuing. Mr.. Gcvau said that fHe
roads would even then lose money he
said that the higher vases now being
paid lhe employees OF the rrads aGcre-
gated S2tooo.dQo. whereas the carriers
only asked authority 90 collect S51.0H0o99
more, and this would not meet The out
lGy made necessary I'D order To pay their
men the Increased scale
MI Gowan said that there were ro1-
sons why che passenger rates could rot
be advanced Therefore 10 WAS 1D-sfl,
only FOR The carriers 10 increase rEeIr
receipts hy advancing their freight
charges lt was 10 show that the rates
now pending before tre commission
were reasonable and ivstilcd Iy an IN
. dUStrIEl conditions That The counsel r0r
the PeEnsylVania asked President No
CUea to take the stand.
Most OF Mr.. McCrca IS testimony was
devoted 10 the policy Of his company n
maintaining a surplus iu its jreasur-
The shippers had attacked this policy
on the ground that the PenusyIvanis.
as the most representative road fin the
East, was charging higher freight rates
might create a surplus and initiate The
value Of Pennsylvania securities
Surplus Needed.
Answering this charge. Mr.. McCrea
declared that the Pennsylvania main
tanned a surplus of about Sl2.o0a0e9 n
year, first, t6 fortify its credit. and
afterward 10 make the improvements
necessary to good service 20 the public.
He said that within the last tv.7tv
years his company had collected a7d
expended S162,o03,000 OF surplus funds n
improvements. This amount. ne said
Continued on Eleventh Pa-e1