Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-12-11
SAYS p. K. K. HAS
RATE DELUSION
Continued from Page One

Continued from Page One
o'clock, when Acting Chairman Penny
packer announced that he would be un-
able to be present this afternoon. Com
missioner Emory r. Johnson took his
place when the hearing was reopened at
2:SO o'clock.
Following the discussion upon the
charge OF colluslon Edwin NJ Abbott,
representing the Commuters Assocla-
tions, began general argument against
the increases
When asked after the adjournment
whether granting OF the per cent.
freight increase by the Interstate Com
merce Commission would have any in
fluence upon their decision in the pas
senger case several OF the commission
ers replied that, while the cases were
no doubt related. the freight question was
not under their Jurisdiction, and they
would have to decide the passenger case
Upon its own merits
RETURNS EXPECTED BY p. r. R.
In response to interrogation by Mr..
Pennypacker at the morning session,
Mr.. Fell said that the PENNSYLVANIA
hoped to realize a return of S6.O00 600
IL the 5 per cent. freight increase
were granted by the Interstate Commerce
Commission and a return OF $1,000. 600
should II be permitted to make the pas-
senger increase effective December IL
Efforts on the part of the commuters
attorneys to delve into the investments
and subsidiary holdings of the Pennsyl-
vania were thwarted by Mr.. Pennypacker,
who said in ruling these questions out of
order;
81 think the real question is commuta
tion increases and the general affairs OF
the railroad. and the question where its
money may be invested Is irrelevant.
The remarks Of Mr.. Pennypacker made
II evident that the commission intended
to confine whatever ruling II may mako
strictly to the matter of Communication in
creases and changes, and not to touch
the general passenger increase Prior
to the hearing attorneys for the com
muters had indicated that they would
fight every inch of the railroads plea,
not only opposing the Communication
changes, but the general Increases as
well.
In addition to Acting Chairman Penny
packer, commissioners sitting were
Emory r. Johnson, s. La Rue Tone. MIL
ton ]. Brecht and Charles p. Wright.
Frank A. Wallace. Of Erie, was absent.
More than score of prominent railroad
officials representing all the companies In
tine East were present.
RAILROADS LEAN YEARS"
When Mr. Pennypacker called the hear
ing to order at $3.50 o'clock, Ward w.
Plerson was asked TO conduct the cross
examination of Mr.. Fell Mr. Pierson de-
voted all his efforts to show that the in
crease planned was unwarranted and un-
in view OF the returns and
pfohts OF the Pennsylvania Railroad dur
ing the past few years.
He contsnded that one or two bad
years, during a period of general nnan-
eial depression. would not justify any
rate increase. There are fat and lean
years. he said. with the railroads, as
with every other corporation. ana the
stockholders should be made bear the
burdens Of the lean years instead Of the
public.
Harold 8, shertz and Edwin NJ. Abbott
conducted the eross-examination OF r. ].
De Long, assistant general passenger
agent for the Pennsylvania. Mr. De
Long, in his replies, was frequently ad-
vised by George w Boyd. general pas
aenger trafnc manager. who sat By his
side
The oross-examination brought out the
fact that Philadelphia had been the VIC
tim OF unusual discrimination ia the mat
ter OF Communication Increases in the
opinion OF the commuters lawyers. Books
of the company presented showed that
New York was enjoying better eommuta-
tion service at a cheaper rate than Phila-
aelphla and that no increase had been
suggested for New York.
CAPITAL STOCK INCREASED
Nr. Pisraon in questioning Mr. Fen
asked If IT we're not true that the penn
'ylyania from is1 until January. 1914 has
increased is capital stock from sits o0o ooo
% l50o,oQo,ooo. and that during this tims
he eompany had been able 10 Improve
ts tracks ana stations ana Al the sama
ime pay regular per cent dividends
Airi zen admitted that this vas trne
ls Il not also true" Ar. Pierson con-
inued. that you have q surplus funa 4
= sss.yo9.y9 INTO which you pald S0o0.00
NJ fsll again answered In the sirna-
ASKED HALF A Loaf
Ia bringing up the comparative income
rom the fseisat ard the passenger in-
rsssss Mr. Pennypaeksr turned q 4
y hiiks. asssatans general counsel fos
be fenassiVania. ana aaksd.
sin sesEins 8 pef cent fsslsht iastsa..
ssst ea A. amqanl ass
ta |lhri g ~
ga
M