The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-11
MR.. REA ASKS FAIR
PLAY FOR RAILROADS
Pennsylvania's President De-
MES They Manipulate
Their Accounts.
TINE FOR A PROTEST
Stockholders Of Road Approve
the "Blanket Mortgage"
Plan of Financing.

PHiLAprLpRfA, March i0-A vigorous
defence OF the railroads OF the country
against the charge of manipulating ac-
counts 80 as to show increased cost Of
operation was delivered by Samuel Rea,
president OF the Pennsylvania Railroad,
at the yearly meeting Of the stockholders
to-day.
Mr.. Rea's statement. made In reply to
criticisms expressed by Clifford Thorne
chairman of the Iowa State Railroad
Commission. who entered a protest on be-
half Of eight Western States against an
advance OF freight rates requested by the
Eastern railroads.
After referring TO the fact that the
Pennsylvania was included among the
railroads charged with manipulating their
accounts he declared that the charge
is absolutely untrue far as II relates
TO the Pennsylvania railroad Company
ana other lines IA we'll
your management is determined that
within the limits of reason II will here
after allow no statement to 20 unchal-
isnged that reflects on the management
or the integrity OF Its officers" continued
Mr.. ReA.
what the commissions. the public and
ne shippers so far probably failed to APP
preciate Is the cumulative result Of legis-
lative enactments and regulation. both
State and Federal, dealing with almost
every phase of railroad operation: In
creased wages. limitations affecting work.
ing conditions. extra crew laws and other
wasteful expenditures imposed upon the
railroads without their consent.
The result is higher maintenance and
operating charges and outlays Of all kinds
required by the use OF steel cars and
heavier trains, more ties better tract,
structure throughout. more modern sta
, lions and other facilities and appliances.
Railroad costs have been very
materially increased and We cannot stop
them. In addition to this safe standard
OF railroad the Pennsylvania Railroad
Company has put into its account a fair
charge for depreciation. renewals and
obsolescence, that is per cent On
freight cars. which means life OF thirty
three and n third years, and I per cent.
upon passenger cars and locomotives,
which means a life Of twenty-five years,
and who can say that these charges are
unfair or anything but very moderate?
The Present situation.
what is the present situation: The
railroads are prevented from charging
reasonable rates; they have sustained a
serious loss In revenues; they are pre-
vented from furnishing facilities so as to
BE- prepared TO meet the reasonable trans.
portatlon needs. every occasion Ia being
used to publicly discredit them, and the
result Ia that there must be enforced
economies.
eff large numbers OF railroad men and
.O1hors dependent upon railroads for every
character OF supplies and work are out OF
employment. and a general loss OF con-
hdence exists. and suspicion has beer
engendered. no attempt must be mad, &c
place this responsibility upon the railroad
management
They have issued warnings and mad,
petition for fair dealing, but without
effect The time has come when a,
fair minded men and investors as a who'll
must individually and collectively insis
TO their State and Federal Senators
Representatives and Government tina
they are a part OF the nation entitled t.
at least fair consideration
The stockholders approved unanimousl,
the so-called blanket mortgage" plai
recommended by the directors. unde
which II Is expected to finance the com
pany for many years to come. BY tht
authority the directors may mortgage
the entire property OF the railroad. pro
vided that the mortgage does not excee'
the outstanding capital stock.
President Rea has sent to Chairman
Clark Of the Interstate Commerce Com
mission a telegram denying that tn
maintenance accounts OF the Pennsylvant
road have been manipulated.