The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-31
RATE HEARING ENDS
WITH FAIR PLAY PLEA
Pennsylvania Counsel Says
the Roads Need S1OO,OOO,OOO
Additional Income.
ERIE CALLS FOR JUSTICE

wAsHINoroN. Oct. so,-rhe nnai arsu.
ment was submitted 10 the Interstate
Commerce Commission to-day in support
or the plea OF tho railroads in official
classification territory for permission e
increase their freight rates 6 per cent
The argument was made by George
Stuart Patterson Of the Pennsylvania
Railroad He said the carriers really
need $10o.oo0.000 additional annually
rether than s5o,oooo 900. to meet the de-
creasing net income, to make necessary
improvements and repairs and TO sustain
their credits. Mr.. Patterson declared thai
the commission made In tho decision Of
July ~ met with the approval OF the
carriers, but that these measures would
not AFFORD immediate relief.
George +. Brownell. representing tn,
Erie Railroad, preceded MIR. Patterson anC
said that since the decision OF July .!
facts and circumstances have ariseT
changing materially the situation of tn,
carriers and fully Justifying the granting
OF the relief asked.
Mr.. Brownell's Argument
TT is not contended by these carrlert
should undertake to approve rates tina
will be unjust or unreasonable" sale
Mr. Brownell. "or that the commission
has the power should undertake I,
approve rates Irrespective OF their beinl
just or reasonable. merely on tn,
ground that such action would 'stlmulat,
business or restore confidence in tn,
financial and business world or accom-
plish any other such result. although sucl
accomplishment might be very desirable
In itself.
81 do, however, contend that in deter
mining whether the carriers charges 70
Its transportation services arc just anC
reasonable the commission has the RICH
and the duty to take into considcra
ton. among other things. the adequacy
of the net operating income derived there
from, It's sufficiency TO enable the CARRIE
properly TO perform It's important quasi
public functions and TO secure the new
capital necessary therefor, and for tn
other related matters OF public interes
and welfare to which reference has beef
made in this oas."
After reviewinl the disturbed condition.
| caused by the war Mr.. Brownell said:
THAT n crisis now exists In the affair
| of these railroads and that their credit
seriously impaired. az we believe. befor
the war started principally because o
inadequate operating incomo, is now con
frOnted by grave emergency, WOulu S'tU
| 20 be but plain truths. II this he 50 W
| submit that the commission should ali
| so far as they legally may in the solu
| ton OF the problem by permitting IN
| carriers to secure more nearly AIDE
quate net Income through tho propose
| Increased rates.
The crisis which confronts tho rail-
| roads has been emphasized, has been ne
| gravated and has been made more clea
| and certain by the war. hut the war doe
| not constitute and did not alone Great
the existing crisis In our affairs.
THAT crisis existed before the war an
Ia reflected In the records Of their opers
tons and the long continued increase
expenses and accompanying reduction
net revenues and income, whereby IN
| railroad industry has been forced TO h
come an industry OF constantly decrea'
ing returns
| Mr.. Browuell then said that "rhe ma
| ture and extent OF the public intere'
| involved and the occasion for coopers
ton of those IN private or IN official PC
| sition in aiding IN meet the situation
| every proper and legitimate way nj
clearly understood by the letter recentl
sent by the President to Frank Trurrbu
az chairman Of the Committee Of Railroa
| Executives
In this letter tho President called n
attention OF the country to the imperatiy
need that railway credits be sustaine
and The railroads hsdped In every possib
| way, whether by cooperative enort or b
the action. ~ feasible. OF Governmei
agencies