Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1914-04-02
EXPENSES ARE INCREASING
BUT REVENUES ARE NOT KEEP.
ING PACE WITH OPERA.
TON COSTS
MUST TRIM EXPENDITURES
EQUIPMENT AND THE OTHER DE-
TAILS WILL BE sLlGHTED;
RATE INCREASE ASKED

Washington, April 2..-President Rea
of the Pennsylvania system was the
last witness to be heard today before
the Interstate commerce commission,
on behalf of the eastern railroads ask
ing for an increase in freight rates.
Oral testimony for the roads was con
cluded with his statement.
Chairman Harlan and Commission
ers Clark and Meyer were on the
bench. J. T. Wallis, general superin-
tendent Of motive power of the Penn
sylvania, interrogated by Clifford
Thorne, explained that steel cars and
heavier locomotives had induced an
increase in repair cost, while higher
wages materially had added to that
item of expense.
J. s. Rodgers. general superintend-
ent of the Pennsylvania, testified that
Charges to operating expenses on the
Pennsylvania system, east Of Pitts
burgh were $24,855.624 in 1910 and
$29, 9,411,21O in 1918, an increase of
1873 per cent
President Rea said that not Only
gh9 agIvapia glE alL American
railroads were aDnfronted Win the
necessity Of retrenchment which must
prove serious unless they were per
mitted to increase their net incomes.
He said;
Unless the gap between receipts
and expenses can be widened we
must begin to Fetrench, and retrench-
ment must begin on betterments and
improvements not directly necessary
to the movement of trains We should
be very reluctant to do this, as it
would be to run counter to our ira
ditions and practice of half century,
and we are sure that would not be
in the public interests, and we don't
believe the public desires it.
Nov, we have as much public sup
port as can possibly be given to a
plea almost national in its scope and
we firmly believe our application for
very moderate freight rate increase
is in order with the public interest
While he did not assert that the
advance was necessary to the maiu-
tenance Of the pennsylvania Railroad
company's dividends in the imme-
date future Mr.. Rea declared that
ANY general idea that the Pennsyl
vania's position was so strong as not
TO need any additional revenue is
not correct He added that the
PENNSYLVANIA had earned asa per
cent during the fiscal year Of 1918.
Discussing the desirability Of the
necessity TO provide for future traffic
demands, Mr. Rea said
I'VE also know that it Is unwise
and impossible to limit new facilities
to actual and immediate necessities.
Necessarily that involves a large ex-
penditure of money that only gradual
Iy becomes productive We know that
Judging from our past experiences
many millions could be advantageous
" expended.
I'VE have confronting us program
of expenditures which we believe to
be essential, some Of them mainly
for the benefit of the public, but all
of them necessary to properly accom-
m0date the present and future traf-
| fic.
1T is unwise, as well as unneces-
sary, to commit ourself to any large
fixed program Of expenditures. except
to say that without assurances OF
adequate earnings they cannot pro-
ceed and reasonable portion Of the
cost Of these future enlargements and
improvements ought, in our iudg-
ment to be provided from surplus
earnings"
Mr.. Rea's conclusions. watch he IN
dicated applied concretely to the
Pennsylvania and generally 10 all
other roads, were these;