Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1917-03-07
REA MAKES PLEA
FOR HIGHER rates
President OF P. R. R. Says
Increase is Needed TO
Meet Expenses
WANTS UNITED
CONTROL OF ROADS

President Samuel Rea, Of the Penn
sylvania Railroad. in his remarks to
the stockholders in the SEVENTEEN
annual report for the fiscal year end
ing December 81. 1916, makes an
urgent plea for higher rates for the
railroads. Under the existing in
ternational complications and excep-
tional industrial activity. there should
be no delay in placing the railroads
in the strongest financial and physical
condition" says Mr. Rea.
1.-The necessity for higher rates is
daily becoming more evident Presi-
dent Rea says; "for while the results
for the first eight months of 1916
showed a satisfactory increase, yet
since then the net returns have
shown a marked reduction due to
higher costs"
He calls attention to the fact that
the railroad, in order Ito avoid con-
gestion and to handle the traffic eco
nomically and promptly. has eXpend-
ed. and is now expanding, large
amounts of capital upon which a re-
turn must be earned"
Continuing, he points out that higher
wages have been paid TO employees
higher prices have been paid for mater
ails and all things entering into opera
ton.
with such a widespread and pressing
demand for larger terminals, greater ia
cilities and more equipment, it is essen
tial If they are to be provided, to grant
the railroad the higher rates neces5 try
to place them in position to meet sucl
rising costs aud give them the earning
basis 20 attract new capital for the ad
ditional transportation facilities ana
service 80 urgently required" he de
clares,
Considerable space is devoted to a dis
cussion of the work of the Joint Congress
sional Committee TO investigate thu
efficiency Of the existing system of pub
lie regulation in protecting the rights o
shippers and carriers. Mr.. Rea says tina
the railroads win do everything in thei
power TO assist in this Investigation.
After discussing the program OF tn
committee, Mr. Bea goes on TO say tina
"a serious responsibility rests upon tn
Congressional Committee to make thor
ough, prompt and impartial investiga
tion of the entire transportation prob
lem. and recommend legislation that vii
insure sound credit for the railroads
reasonable rates and adequate service Z
the public and replace conflicting an
wasteful regulation with unified, respon
sihle. regulation with unified, response
bic, regulation by the Federal Govern
ment, under which the railroads will b
permitted to earn fair return on th
capital already invested in the publ
TRANSFORMATION service, and sufficient {
attract the additional capital reqi6sit
70 regularly enlarge and improve the
terminals, tracks, equipment and oth'
facilities in advance of actual commei
cial requirements"
In speaking of the "eight-hour law,
the constitutionality of which is no'
before the United States Suprem
Court for decision, Mr.. Rea says:
1.-THE Federal and State laws an
the public welfare require railroa
companies to render a continuous an
adequate transportation service. an
il should be equally obligatory that n
disruption of that service from an
cause be tolerated. Therefore. in tn
nublio interest, which is paramount
f,,ture strikes or lockouts should b
nrevented until the differences be
tween the railroads and their en-
ploves are first submitted to lnde
pendent and impartial review and al
bitration." MI.
on the lines east and west OF Pitts
burgh there we're TRANSPORTED durin
me year a total of 407.624,l4 tons
freight and 195,951.16S passenger
rho freight item was equivalent I
carrying one ton Of freight 46,S54' I66
7Se miles and one passenger 4'9t2'565
a69 miles. The freight traffic II
creased 7,S76, $50 $50 ton miles and tn
passenger traffic 625,1S7SSS passeI
ger miles.