The Washington herald., 1913-03-04
PUBLIC VEAL
AVERIED STRIKE
Pennsylvania 5 Report Tells Of
Company's Forbearance
During Controversy.
WOULD CHANGE THE LAW
Erdman Act Said to Be in Need Of
MISUNDERSTANDING
Of Road.

New York March 3-Samuel Rea,
president Of tho Pennsylvania Railroad,
declares In the sixth annual report of
that company that the railroads agreed
to submit their difficulties with the
Brotherhood of Locomotive Firemen to
arbitration under the Erdman act rath-
er than Impose on the railroads and
employees the lamentable consequepce OF
a general strike. involving ovef fifty
railroads, having over twenty-five per
cent of the mileage and nearly forty
per cent of the total operating revenues
and operating expenses of all the roads
in the United States
Considering the magnitude of the In
terests in this country" says President
Rea, land those countries with which II
has commercial relations that would be
affected by the interruption of railroad
traffic, and the serious results that
would ensue therefrom: the stoppage OF
food supplies. fuel and other traffic. the
Inconvenience, losses and suffering to the
general public, whose interest Is para
mount. and to the workers in other in
dustrieS dependent on a reliable trans
portation service and in no way respon-
sible for railway disputes, and the fall
ures of strike to produce any permanent
advantages to either the employees and
their families or to the transportation
companies, careful
be given to the recommendations for the
amendment OF the Erdman act, which
have been made from SO many sources
interested In the well-being Of the coun-
try.
Would Provide for Changes.
The experience arising from these
larger wage controversies places a seri-
Gus responsibility upon whose duty II is
TO enact proper legislation governing the
relation between employer and employe,
to consider whether the Erdman act
should not be amended to increase the
number of arbitrators and thereby con-
stitute a board OF sufficient size to prop
erly represent the public as well as the
parties of the controversy. and TO direct
the necessary far-reaching investigations
and fully share the responsibility OF an
impartial determination of the equitable
and economic questions arising from such
disputes. It also will be found neces-
sary to provide longer time than the
thirty days specified in the act for the
consideration Of the subject and the rem
dering of a decision.
1T may not be possible to prevent
strikes or lockouts by requiring COM
pulsory arbitration, but II is wise to con-
slider whether an obligation should not
be placed upon the employer and employe
to advise the authorities Of the ques-
tions at issue before lockouts or strikes
can become effective, so that by due pub
lication and inquiry the government and
the public may be fully informed OF
the extent Of the controversy and its
causes"
In his remarks to shareholders, Presi-
dent Rea stated that 1t will be neces-
sary shortly to provide capital for the
So 80 500 ten-year gold convertible 81
per cent bonds. which matured Novem-
Der I. 1872. and for SO. 135.odo of collateral
trust loan ~ per cent bonds, due June
I, 1913. together with maturing equip
ment. trust obligations. and also Tor new
construction work. the extensions and
improvements OF terminals, track and
facilities and the purchase OF equip
ment New financing Is under considera-
ton. but no decision has been reached
as TO the form or extent OF the pro-
posed financing.
Holdings of Comany.
On December 81 last. the PENNSYLVANIA
Railroad Company owned securities
valued at SS3I .Sls.l5i, which produced d.
rect. income during the year of sli.5-'.-
isl At the end Of the year 1t owned
Scos sl4.5SS par value of stocks and SS.-
4sS.4y4 par value bonds. During the
twelve months the company Increased
its holdings of Norfolk and Western
Railway Company stock by A.7S,lo0
through conversion of a like amount of
Norfolk and Western convertible bonds.
II also acquired 100000 PENNSYLVANIA
terminal real estate stock.
Mr.. Rea states that in view Of the in
creased expenditures of the railroads.
together with the fact that they have
in many instances been the pioneers In
the development of towns. cities and
territories. served by them. IL seems un-
fair and unwise to propose that the rail-
roads be burdened with the entire cost.
or undue proportion of the cost of elm
mating grade crossings.
The company paid out ssi6.31,5 in PEN
sions during the twelve months. Stock
holders will be asked to authorize an in
crease in the annual sum set apart for
pensions purposes from $4,000 to $780,
CO.,