The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-10-13
|H[lF OFFICIAL
Gb[s TESTIMONY
Drssident McCrea of the Penn
syIyania Explains Great Ad-
vance in Expenses.
1IGHER FREIGHT RATES
ARE GREAT NECESSITY
Mile Rates Are the Same,
/ Every Form of Expense
Higher.

Oct. le.--President
.mes McCrea OF the Pennsylvania Rail-
Id company was witness at today's
ssring before the Interstate Commerce
,mrnsslon on the proposed advances in
right rates by railroads east Of Chi
'go
Mr. McCrca urged the necessity OF the
imposed increase, on account of the in
.ossed expenses in wages incurred by
y roads during the last ten years. az
rezating 33 per cent In the case OF the
and the increased cost OF
tintenancc of service.
The witness said that the results of
4 constant increases in the business OF
y Pennsylvania through a long period
| wears had been distributed either
lrough reduction in rates. increases in
rEes and amounts paid for material, or
.rcinyestmcnts in the property not cap
aIized He expressed the belief that a
'opcfiy OF the magnitude OF the Penn
mania railroad rendered service sat
{actory TO its patrons and deriving. AS
did derive in 1909, net earnings To the
mount OF only o.0l per cent on the
Mount actually invested in the proper
4" Vae entitled 10 n fair consideration
: The people. and l1c could not under
and how rates that secured such re-
MS IODlO Ns TeEdlheD us 100 ill2n.
The hearing was conducted before the
rn commission. Chairman Martin A.
;r1pp presiding,
Al thc opening OF tho hearing Francis
Goaten general counsel Of the Penn
|Iraria Railroad company. said the eX
rnses OF the eastern lines through in
'rases In wages and cost OF supplies
.fn,ly had been increased approximate
2sl .000.0 200 n year.
Tndcr Or0pnSCa advances in rates.
'r,iugs would have increased about
1000 O0h d year
President McCrca testified ;hat in ths
81 ten or twelve years IN" compeny's
,es east of Pi-tsburg had expended
s.. .0oo ooo on improvements.
Vast Increase of Costs.
the Increased cost OF
ing, said Mr. McCrcs. the $1,000 stock
Iders OF the Pennsylvania railroad. one
n OF whom were women and children.
re recnvirg the Same amount in divl-
rds now as they had received during
q lust Ten years. although their cX-
nses had Increased proportionately
N those OF employees.
Hr. NcCrea testified that the increased
loads oil the income made necessary
epnsrd advances in rates. He asserted
{ Pennsylvania had never been higher
econouv and skill than now. and de-
nrd The opera ,iou was honest.
sFioT do YOU know inquired Louis y
lndes OF Boston. representing Atlantic
lst clippers. that such things as have
N developed In the Illinois Central
III ere not occurring in the Pennsyl-
va systcmp"
! dc not rclicvc such a condition could
* because Of our system OF reports
checking said Mr.. McCrea. Il
W. too. through my faith in the or
lIzaiiou and in my confidence in the
nan agencies Involved
IT. McCrca declared:
What this country needs, and what
done 80 much 10 develop II, are tne
nsportation facilities. At this time
Nthat improvements are very badly
ded Any scheme OF rates that does
, provide for that. treating the rates
a broad proposition. will fall short ot
az The country absolutely requires.
. McCres expressed the opinion that
properly capitalized company, eco
rlcaliy managed. should earn mini
m OF Dcr cent. particularly on 9c-
mt oi the Increased cost OF living.
Ie ssid II formerly was tie Pcnnsyl-
lias policy 10 put dollar in improve
MS to every dollar paid In dividends.
H. unfortunately. We have not been
( 10 continue t.iat policy
4 conclusion. My McCrca declared
\ inc present siIuati could not be
1 IN ans other way Than by an advance
freight rates.
Isked BY Commissioner Prousy as to
Drc railroad Developments in new ter
'ty. Mr.. McCrca said Inc believed no
eiprises
II Is not possible" he asserted, we
mot get the money anywhere ior that
I oil exploitation,