Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-10-12


merce commission into the proposed
advances of freight rates in eastern
trunk line territory was resumed to-
day at the commissions offices. after
an adjournment of the hearing from
New York city.
In a general way, the increases sug-
gested by the roads affect nearly all
articles of freight handled, at either
class or commodity rates. The ad-
vances, curiously enough however, do
not apply to the great volume Of
freight. Exceptions are made of coal
and coke, iron and steel articles, iron
ore and some other large commodities.
On some of the eastern lines the ship
nlents of coal and coke constitute more
than half of the entire freight ton
mage; in fact, in two instances, such
shipments are about so per cent of the
total, tonnage. --.>--s.,--ssss. s-e.-zs.-..
Applied broadly. therefore, the pro-
posed increases would affect in the ag-
gregate probably not more than % per
cent of the total freight tonnage of the
roads.
The testimony adduced heretofore at
the hearing indicated that the aggre-
gate amount which would accrue to the
various lines through the advances had
been figured at about s35 100000 annu-
ally. That estimate is regarded by the
commission as very conservative.
Hearing Will Be Lengthy.
BY concerted and voluntary action Of
the railroads. the proposed increases
We're postponed until November /. 1t is
manifest now that the hearing and ad-
judicatiOn of the pending case cannot
be concluded by that date. II appears
probable, therefore. that the eastern
roads, in cOnsonance with the western
trunk lines. will postpone the effective
date of their new tariffs until January
1. at least. and perhaps until Feb
ruary ].
The full interstate commerce commits
presiding. conducted todays hearing
which was attended by many railroad
officials and representatives. of shipping
interests. The burden of the work OF
the railroads in establishing a reasona BILE
excuse for the proposed advances was
undertaken by the Pennsylvania, the
Baltimore and Ohio, the New York Cen
trail and the Erie. although other lines
ceedings by counsel and by their operat
ing and traffic officials.
At the opening of the hearing Francis
L. GOwen. general counsel of the Pennsyl-
vania railroad, declared il had been DEM
onStrated by previous evidence adduced
a the hearing that the expenses of the
eastern lines, through increases in wages
and cost of supplies. recently had been
increased approximately $;4,OO0.OGO a
year The receipts under proposed ad-
vances IN rates, If the new tariffs had
been applied. would have increased the
earnings about $27,0OO.OOO a year.
President McCrea Testifies.
President McCrea OF the Pennsylvania
railroad, as a witness, presented an ex-
tended typewriter statement. declaring
1t had become vitality imperative that out
of the surplus earnings of the Pennsyl-
vania railroad IL should be able to make
Improvements in the service demanded
by the gSneral public
We must go forward, and not back
ward" said Mr.. McCrea, las there is no
STILL
He pointed out that large amount of
the surplus earnings. from year to year,
had been put back into the property of
the company in the form of better ter
minals, stations and safer crossings, al
though much of this expenditure was in
such shape that no immediate return
upon IL could be expected.
MI McCrea added that in the last ten
or twelve years the Pennsylvania lines
east of eittsburg had expended S262 900, ,OOC
on their improvements and betterments
Tor the purpose of enabling the com
pany to go on operating the property on
d high plane of development"
Mr.. McCrea indicated that the increases
in wages made by the Pennsylvania rail-
road during recent months had aggre-
gated between S7.OO.OOO and SS.OOOOOO a
year. In order, he asserted. to enable
the company to meet this additional eX-
pcnse and TO meet the additional demands
OF the shipping and travelling public. tC
which he had referred, rates of freight
much higher than those now in force
would be necessary.
Must Recoup Itself.
1T is absolutely necessary. he said
"for the company To recoup itself. prob
ably by an advance i'm freight rates. 70:
the great demand on its income by rea.
, son of advanced wages and improve
ments."
| Mr.. McCrea said that during the last
| three years there practically had been nc
| increase in railroad business.
! ''In my Judgment" he continued, "eaS
of the Mississippi river. in years to come
| there is going to be markedly lowe
rate of growth of business. This Is goins
| to fall very far short Of making good OIL
the great increases in wages and othe
| tremendous expenditures"
In conclusion of his direct statement Mr.
/ McCrea asserted that the facts as applied
to the Pennsylvania railroad applied witt
! Iconservatively managed railroad.