New Britain herald., 1914-04-02
ORAL TESTIMONY IS
 = NOW CONCLUDED President Req Of Pennsylvania, Last Witness in Freight Rate Issue. SAFETY APPl ANcES EXPENSIVE Five Per Cent. Increase Demanded to Meet Cost of Steel Cars and Heay- fer Locomotives-Highe Wages Also Taken Into Consideration.
SAFETY APPLIANCES EXPENSIVE

Also Taken Into Consideration.
 Washington. April 2.-President Req of the Pennsylvania system, was the last witness to be heard today be- fore the interstate commerce commits sion on behalf of the eastern rail- roads, asking for an increase in freight rates. Oral testimony for the roads was concluded with his state- ment
 -Eha-..Grzs-.-> Harlan and Commission eg Clark and Meyuer were on the bGch today. Dr. Dumba, the Austro- Hungarian ambassador and his guest. Pince Munster of Derneburg, were interested auditors.
 Many Expense Items.
 U. T. Wallis, general superintendent O motive power of the Pennsylvania, iterrogated by Clifford Thorne, ex- pained that steel cars and heavier locomotives had induced an increase il repair cost, while higher wages had Aded materially to that. item of ex- Fnse. : J. s. Rodgers, general superintend- s1t of the Pennsylvania, testified that charges to operating expenses on te Pennsylvania system east of Pitts hrg were $24,855,624 in 1910, and 29,411,21O in 1913-an increase of B.3 per cent.' He said expenses for naintenance of way during 1913 were nuch greater than ever before.
 lille dwelt particularly upon the cost t safety appliances, demanded both E law and by public sentiment.
 Retrenchment Is Necessary.
 sPresident Rea said emphatically, | a carefully prepared statement, tat not only the Pennsylvania, but A American railroads, were con- fonted with the necessity of ! re- tenchment, which might prove seri- dls unless they were permitted to Increase their net income.
 { MT. Rea,s conclusions, which he in> tcated, applied concretely to the Pennsylvania and generally to all kher roads, were these: fY 1t 14--sstF Fife nnargin of surplus is stead- iy diniiIlfshiIig anu tne company U tot receiving any return either on the additional capital invested, or for the JaIue of the service rendered and the facilities provided, for public use. 7s.2-1ad there been no surplus In Earlier years, and had the whole of lhe improvements been paid for out ff capital, the margin would now lave reached the vanishing point \ "3-If surplus steadily decreases, if made at all. will more and more need to be made out Af new capital.
 I "4-But if the margin of safety de- sreases, new capital will only be raised with great difficulty.
 < t5-Indeed it is questionable whether, if new capital is to con- iinue to earn no income, the direc- tors will be justified in attempting to raise more than modicum of what they believe necessary, as the effect must be to reduce the percentage return on the shareholders capital al- ready invested"
 Will Hurry Proceedings.
 It was planned to conclude hearings tonight if possible. The commission purposes, however, to expedite final of the case in every way and to that end has determined to old continuous hearings until all the evidence is submitted.
 Interest in the question was height ened today because of the possibility of an early decision by the commis- sion on the proposal of the carriers that they be permitted to make five per cent. increase in their rates and by the announcement of Senator La- Toilette that he would speak in the senate today on his bill to make un- lawful any attempt to influence pro- ceedings before the commission except in accordance with that body's regu- lations