New Britain herald., 1917-11-05
CLAIMS OF COUNSEL
 FOR HIGHER RATES
Interstate Commerce Commission Hears of the 16 Per Cent. Increase
CANNOT AFFORD MISTAKES

CANNOT AFFORD MISTAKES President Rea of the Pennsylvania
 Road Says That Labor, Fuel, sup-
 plies and Taxes Have Been 1n-
 creased aud It's Hard to Retain Help
 Washington, Nov. 5.-The reopen ing of the fifteen per cent rate ad- vance case before the Interstate Com- merce Commission today was marked by claims of counsel of eastern roads that transportation facilities and fin- ancial stability of the roads are men, aced by prevailing rates.
 " we cannot afford to make mis- takes" declared Samuel Req, presi- dent of the Pennsylvania road. in opening the case. Tt is not a time for panic but neither is it a time for disregardings the facts of increasing expenses, of diminishing net operat- ing income of deferred maintenance of lack of present facilities and in- ability to provide future ones."
 War time conditions with the re- sultant increase in the cost of labor and material make 1t imperative that an advance over the present rates be granted" asserted counsel represent ing 38 systems operating east of the Mississippi and north of the Ohio river. If the roads are to handle adequately the great volume of war time traffic without mourning the inn minent risk of financial reverses, bet ter provision. must be made by the government" he said.
 Other railroad representatives who were on hand prepared to make gen. eral statements when the hearing be- gan were Alfred H. Smith of the New York Central, James Hustis of the Boston and Maine, and Frederick D. Underwood of the Erie.
 When in May the American car riers asked for a 15 per cent rate in crease they estimated the war time prices of labor and materials would increase their operating charges by $235, 100000. Later compilations, presented today, indicate an increase of $270,0OO,00O, based on the 191S volume of business. while increased revenues from rate advances since the first of the year total $97,OOO.0OO. The increased operating charges are .ap-' portioned as follows: Coal $7S.0OO,- 900: wages. &1o2, 900. .oQo: materials. $90, 100000. ' f4' '''"-~e ',s 'ss-'s
 Mir. Patterson, for the railroads, declared that while gross earnings for the first nine months of the pres ont year had risen $123,7s9,oOO, loss of $57, ,0OO resulted from cor responding advance of $168.431,O 900 in expenses.
 President Req of the Pennsylvania road said in speaking of existent difficulties of the roads:
 "Continuous Increases in the cost of labor, fuel. supplies, taxes and of obtaining new capital.
 Inability to secure and retain ef- flcient labor.
 "Curtailment of maintenance ex- penses, which curtailment is due in part to inability to secure necessary labor and materials.
 Decrease in net operating income, notwithstanding large increase in operating revenues in property in vestment, in carload and in train load.
 Production in surplus with conse- quent effect upon the credit of the carriers.
 Inability to secure new capital by the issue of stock. with the conse- quent weakening effect upon the financial structure.
 Inability to provide improvements and facilities, not only essential for the traffic of today but equally es- sential for the traffic of the future" |"
 No prospect of lower coal costs Is to be found in the goernment's price fixing program on fuel, continued MT. Req.
 ''The tentative price of SPAS per ton fixed by the government" he said. "is over 100 per cent. higher than the price paid by the Pennsylvania system in 1916, five cents more than the aerage price paid April 1 to Septem- Der 30, and twenty cents more than the price now paid under existing contracts"
 He says as the annual coal consumption of the Pennsylvania sys- tenn 1S,335,489 tons and stated that the average cost per ton from April 1 to September 30 this year had been $40, or'$1.17 per ton more than last year.
 In addition to the wage advances granted trainmen under the terms of the Adamson law, MT. Req pointed out that the increased cost of labor had swollen the payrolls of the Penn sylvania SIS, ,900,O00 a year. inclusive Of increases given the trainmen.
 In spite of these wage increases the roads are meeting with constant diff f1culty in retaining workers, Mr. Rea declared.