The Washington times., 1914-02-28
GENERAL REMARKS.

The mileage Of the lines directly operated
was increased lc.oa miles. due chiefly to the
construction Of various branch lines to obtain
additional traffic. and the changes in the
mileage owned and that operated under
lease or as agent are due to the absorption Of
the Cambria and Clearfeld Railway.
The total revenues from rail- operations ex-
ceed those Of any previous year IN the history
of the Company being 81 per cent. greater
| than the revenues in 1872 but downward
tendency occurred in the last two months OF
the year.
While the revenues increased SIS per cent,
the total expenses OF Rail Operations show
an increase OF $50 per cent. compared with
the previous year.
The operating results Of the year 1918 like
those of 1872 were affected by legislation such
the Extra Crew Laws and other expensive
measures. and by wage increases granted as
the result Of arbitration under the Erdnnn
Act The Extra Crew Laws alone Involved
ar expenditure by the Pennsylvania Railroad
System East OF Pittsburgh and Erie Of Ssso.-
0O in round figures. and this will convey
some conception Of the extent Of the needless
exp.nditur~s that have been placed upon all
Of the railroads in this territory. During 1918
the conductors and trsinmen on forty-one
OF the railroads in Eastern territory compris-
ing about 100 90 men. submitted request to
the various carriers for an increase in wages
In which your Company and others could not
acquiesce. The matter was finally submitted
to arbitration. being the first wage contro-
versy to be settled under the new Federal
Law known the Newlands Act. with the
result that working conditions were further
restricted, and an increase In wages was
cerned. about a, 600 900 per annum OF par
cent. This award was made November 10th.
1913 effective October 1st. 1913. but the in
creased wages have not yet been paid As
further interpretations Of the award are now
bang made and settlement will follow. The
expenses for the year 1914 will be increased
sppr 'xtmately $50. 900 as the result Of this
award.
~tGI
regulate wages and working conditions. and
other heavy operating expenses has As the
result Of FEDERAL and State Legislation.
rrgely passed from the control Of your man.
agement. as has also the power OF your
Company and other railroads. to charge rea-
sonabke rates for the public transportation
g. rvice rendered The gravity OF the sit
uetion is indicated in the following quotation
from the recent award OF the Board OF Arbi-
tration in the matter of conductors and
trainmens wages:
This Board has no authority to determine
the passenger and freight rates to be paid In
ton % determine whether such an increase Is
justified. as a matter Of fact. by all the cir
cumsta ances This Board. however. believes
that II must make its finding as to what Is
proper rate OF pay to be awarded 10 the con-
ductors and trainmen a result OF this ar
without any reference to the d.
lernna IN which the railroads are evidently
placed by the laws which make II imp"sthle
FOR them to increase passenger and freight
rates without the authority OF the Interstate"
Commsrc" Commission OF ot the Railroad
Commissions Of the various States. To take
anv other view OF the question would be 10
decide that no increase Of pay while the
laws remain as they are can ever be made
except voluntarily hv the railroads Such a
would render arbitration like this
value less and II would be in effect 10 hold
thai railroad service in the Eastern Territory
must continue to he rendered at existing
rates OF paw even though this were 10 con-
denim the employees OF the railroad to work
for rates n pay which have been determined
by the most careful inquiry to be inadequate.
At the present time a ton OF freight is
moved In the Eastern Territory more than
three miles for the value OF a two-cent post
age stamp This is the cheapest railroad
service to the shipper to be found on the face
If tn" globe In the face Of such fact II
would he unjust to say that railroad en-
ployes must continue to be satisfied only
with what can be maid from freight rates AZ
low this. The Interstate Commerce COM
and not this Arbitration Board has
the duty Of determining whether the railroads
can earn In addition to their other charges.
without an increase ~ freight rates. the rates
Of pay that this Board believes to be due at