Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-24
WILL MEET NEXT MONDAY
President Baer Is Surprised at Rul-
ing Of Commission.
EXPENSES TO BE CURTAILED
Head Of Baltimore and Ohio Also
Says That Policy Of Economy
Is Likely.

OF tho executive officers and general coun-
sci Of the railroads in the official CLASH
fication territory has been called for Mon
day next in this city to determine what
action shall be taken by the railroads
in regard to the decision of the inter-
state commerce commission in the freight
ate cases.
PHILADELPHIA, February 24.-George
r. Baer, president of the Philadelphia
and Reading Railway Company, and also
head of the Central Railroad Company
Of New Jersey, in an authorized state
Inent given out today expressed great
surprise at the decision of the interstate
commerce commission. He says lhele
will be a curtailInent of railroad
penditures, and states that II tne IeSu''
shall be to bring about general ieuu.
ton in wages and in material supplies, IN
the end the railroads Will suHef no ihoio
than the general public.
Mr. Baer's statement Is as follows:
The decision of the interstate COM
rnerre commission is a great surprise. IL
las ALWAYS seemed to me that the TequeS.
If the railroads TO be permitted 10 au
rance class rates was a most Teasohe1oIo
one, in view of the enormous increase
n expense to which the rdiiodus nave
aeen subjected
Discussion Is Futile.
1T is not worth while to discuss the
,ecision of the interstate commerce
commission. It seems to me the com
mission has not given due weight 10
,he fact that the prosperity OF the
TRANSFORMATION companies Is esSential
10 the normal development VI lho
country. How far the necessary cur
tailment of railroad expehoitu.es,
from the refusal of the Interstate
commerce commission to allow rea-
sonable increase Of railroad revenue
viii affect the general business Oh Tic
country. l cannot foreteH . hiring
..If the result shall be TO DrlnS
about a general reduction in wages
and in materials and supplies, IN the
end the railroads will suffer no more
than the general public. and IN time
ali these things must correct them.
selves. am a firm believer that
economic laws In the end will preVali.
The railroads cannot successfully OPP
crate their lines without sumclent
revenue to enable them TO meet puoiic
requirements for transportation, when
in this country have been IN excess Oh
any other country.
at is probable that the railroads have
been extravagant in their expenditures
to meet the constant pubic denahos I Ior
increased facilities Of every kind Ihey
could possibly have limited the cost OF
Terminals. but every city in the land was
demanding of the railroads that their ter
minal facilities should not alone be ade-
auate to meet transportation problems,
but should be of a character ornamental
and attractive, in order to meet the pub
lie desire for big things.
Loss Cannot Be Great.
TT 30 happens that the rates involved
in this decision are of no serious cOnse-
auence to the Readings business. and
while the Readings direct loss cannot
he great by reason Of It's short haul on
the classes of freight on which the rate
increase was demanded, 1t is equally true
that 1t will suffer by the indirect injury
to the trunk lines whose revenues Will be
seriously affected by this decision. I do
not know what action the trunk lines
will take as to an appeal TO the COM
merce court.
Efforts to get the views of President
James McCrea Of the Pennsylvania rail-
road or other officials Of that corporation
were fruitless. 1t was stated omciaiiy
that the officers of the company had moth
ing to say at this time.
NEW YORK, February 24.-"This deci-
sion Is going to cost the public dearly.
asserted President Underwood Of the Erie
railway, commenting today on the freight
rate decision of the interstate commerce
commission. Railroad revenues come
from the great consuming public, and that
is where the burden imposed by this find
ing will rest.
Will Not Buy Equipment.
Not having money to SPEND continued
President Underwood railroads will not
buy equipment or project extensions ex-
cept where need for such is urgent. Just
a. few men will be given employment as
are absolutely required to operate lines
and keep them In repair.
IT hope 1t will develop that we were all
wrong and that the Interstate commerce
commission is right declared President
Daniel Willard of the Baltimore and
Ohio railroad when told of the interstate
commerce commissions decision in the
rate cases.
us to do and that Is to put into practice
the Brandeis greater efficiency system.
You know, Mr.. Brandeis was the apostle
Of the system of getting greater efficiency
for the same money or less. There are
only two ways that we can reduce ex
penses-and we will have to reduce ex-
penseS-and they are to buy less material
and pay less for what We get
''Will the decision effect q curtailment
in your plans for improvements"
Yes, ] should say II will. We can't
expect so large revenue with which to
90 ahead. OF course, We may have been
wrong. and the commission right. / hope
we were; don't your
CHICAGO. February 24-w c. Brown.
president of the New York Central lines,
iast night refused to comment on the de-
iSton OF the interstate commerce COM
mission that railroads are not entitled to
an increase in freight rates. Mr.. Brown
declared he would withhold his opinion
until he had read the decision thoroughly
and determined its effect on freight
Tariffs.
Death Blow to Improvements.
ST. PAUL. Mimi, February 24-I.. w
I'LL. president OF the Great Northern
Railway Company. when informed of the
action taken by the interstate commerce
commission on the railroad rate matter.
said:
We'll. / guess TIL take walk around
10 the steamship offices and see IL i can't
get rate on trip to Europe There
wont De much use OF my staying around
here next summer"
Does that mean that you EXPECT to
see big reduction in business" he was
asked
oh. we will keep right on doing bust
ness but there won't be much done in
The way of extensions or improvements -
Will there be any further curtailment
N improvements by the railroads follow
ing this order?'
THE roads can't curtail much more
Than they have now. II railroads cannot
sell their securities they cannot raise
money. They talk about money being
easy In New York. 1t Is easy to look at.
but you cannot get hold of any of it,
Southern Not Affected.
The Southern railway is not involved in
commission in the rate cases, and this
afternoon President William w E,inIav