The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-28
RIA MAKES PLEA FOR
FAIR PLAY TO ROADS
Points to His Lines Loss Of
S288, in Net on Gain Of
$1O,793.227 in Gross.
SCORES DOUBLE CONTROL
Pennsylvania Report Offered as
Argument for Need Of
Higher Rates.

President Rea's annual report Of the
operations OF the Pennsylvania Railroad
Company reads like IA public document.
backed by the figures Of the revenues and
losses OF the property. in It's plea for
fairer treatment for the railroads.
President Rca presents an exhibit Of
earnings for 1913 which shows an anoms-
(ous situation. Although the gross earn
vngs for the year were the greatest In
the history Of the road and $1O.193.227
greater than in 1912 the net earnings fell
o6 e233.13l from the year before.
He then makes the significant statement
that ~ ability to charge reasonable rates
a. we'll as to regulate wages and other
heavy operating expenses has largely
paABod out Of the control Of the rail-
roads these two separate functions will
have to be brought under the same Gov
ernmental board or else the rate making
bodies will have to recognise In granting
higher rates the effect Of wage increases
by arbitration boards.
The Pennsylvania Railroad Company
earned = net income OF $41.920.S33 last
yoAr. This Is equivalent to 50 per cent
eaSaed on its present $4ss.000. 900 stock.
against 90 per cent. earned In 1919 on
III elb<. 0o0, 900 OF stock. These figures,
'When considered in connection with tho
gain Of nearly s11.00o.oOO In the gross
easnfnss Of e1sb.<oo.s25 for the year.
uluDt1ats most effectively ths plea that
NJ. Rsa makes for higher rates. The road
spsnt In maintenance Of way $3.o1+.l16
moeo than the year before, an increase Of
lass PER cent. Maintenance OF equipment
Charge were $:.76%.s11 greater. an In
crease Of 1855 per cent While gross
revenue from rail operations increased
6.1o pr cent, expenses increased In
greater proportion, or S9S per cent.
1T % evident" says President ReA-
that the ability to regulate WAGES and
working conditions and other heavy oper-
atinG expenses has AS the result OF Fed
erul and State legislation largely passed
from the control of your management, az
has also the power OF your company and
other railroads to charge reasonable rates
for the public transportation service ren-
dered. The gravity Of the situation IL In
-dtoated In the following quotation from
the reeent award OF the Board Of Arbi-
tration In the matter OF conductors and
tra1nmen's wagess
sThis board has no authority to de-
termine the passenger and freight rates
to be paid in the Eastern territory
neither is II in position to determine
whether ouch AN increase Is justified as n
matter OF fact by all OF the circumstances.
The Interstate Co7nme rec Commission. and
not this arbitration board. has the duty
tof determining whether the railroads can
earn In addition TO their other charges,
without All Increase of freight rates, the
rates of pay that this board believes "a
lie due at the present time to the conduc-
trs and traii,ipen, which rates are EN-
Jioded In tiI,. award following.
ct IL difficult to escape the conclusion
nat some way aust he found whereby
THE serious out divided responsibility oi
Governmental regulation OF rates. wages
ana other railway matters shall either be
concentrated under one administrative
d ar he
tor legislative acts. orders OF commissions
sand awards of arbitration boards shall b
lrecoEnized by RI te regulatory commission
40 that regulation OF wages, rates and
other matters may continue without work
Ing a manifest injustice TO the railroadi
and those who nave invested In the''
b On the outlook for higher rates ~ thu
Z result OF application to the Interstate
fCo0marce Commission now pending. Pres
iduat Rea says. after describing the heavy
ADDITIONAL Information asked for by the
cou1mission: while there is no objection
% furnishing the additional Information
dss1rod. beyond the great delay and ex
pGnse involved. the serious aspect of thu
o14aAkion 1t the present time II that M
Enmodiate decision may b expected II al
~ features involved In the commits
innb INQUIRIES are to be considered and
,6Gossmined before action u taken upor
4 - UIAtpOrS8ht QocsesUh ~ sN.eos esss
fssDmWhile railroad revenues are rapid,
aan1Alng. II. however. these inquiries
-4Ap1 ~ information furnished In respons'
thGUeo can be made . matter OF subse
,Qunn1 Investigation. an earlier dstermina
tn Of the entire question ID possible
IN 3AcA a. the commission. through tn
vaa6orm accounting system In eject sine
leQg, supplemented by special tnvestiga
-<<iGl0 and the work OF tn own exanin
I, seH has full Information ~ to the made
auS1o return earned by the railroads Of
u. oopitsl invested In railway lines an,
/ O1DDmsnt. there would seem 70 b NJ
svh0lAntial barrier against immediatel!
trusting the very small measure Of ~
~ sought in the application. and o
uegsntly needed"
- 0euss intimation Of the purpose Of tn
rod TO ssll its Southern Pacific stock I
omtnlnsd In tho statement that eth
} cnuppsny will on the basis Of the presen
dividends reoeive greater returns fror
u Ownership OF the Southern Pacih
lCeouany stock and also have . securit
Ut can either be sold when condition
pog1nit, or held as an investment. ~ ma
- lesmsd the most advantageous to you
Company"
8 referring to the proposed new NOR,
fsgo 70 add another method Of raisll4
snGney President Rea says that ther
are no large necessities requiring inms
aioAs financing. ..-.--,....
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