New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-24
Rea and Loree
Questioned at Rate
Increase Hearing
P. r. r. Head Not Sure War
Board Suggestions Will
Reduce Expenses
Mines Aid D. & H.
President Admits Dividend
Was Declared in Face
of Conditions
Mines Aid D. & II.

Washington, May 23.-lnterstate COM
merce Commission hearings on the pc
titon of the railroads for a general
fifteen per cent increase in freight
rates were resumed to-day. The wit
nesses were Presidents Rea Of the
Pennsylvania and Loree of the Della
ware G. Hudson. Both were closely
questioned regarding the finances OF
their roads and possible economies
which might be effected to Offset in
creases in operating costs.
Mr.. Rea was examined by Clifford W.
Thorne, representing a group Of ship
pers. Mr.. Thorne asked whether the
Pennsylvania would take competitive
bids for lubricants from Independent
producers as a means of cutting down
expenses, adding that the independent
producers would furnish lubricants at a
price 20 per cent less than the road now
pays. Mr. Rea said his system was
willing TO do anything that would cut
expenses.
"Will the taking of of passenger
trains because of war conditions IN
crease the earnings Of your road, those
trains being so much more expensive
to operate than freight trains" Mr..
Thorne asked.
The witness replied that the subject
still was under consideration, and that
at this time it was impossible to de-
termne what the effect would be.
War May Add to Expenses
"Have you made allowances for econ
omies TO be effected by the committee
of continental railways of the Railway
War Board ?"
Mr.. Rae replied that he had not, add
ing that the activities of the committee
might work to increase as well as de-
crease.
Mr.. Thorne entered into the record a
bulletin issued by the railroad war
board in which certain economies were
suggested. The first of these had to
do with a reduction of the percentage
of locomotives under repair and speed
ing them up in operation.
as it a fact" he asked, that il this
should be accomplished the saving
would offset the increases in expenses
by the Adamson law"
Mr.. Rea said he did not look at it
that way.
Mr.. Thorne then read paragraph
from the bulletin which set forth that
without adding to the capacity Of the
railroads it was possible that they
might increase their car supply 80 per
cent and their locomotive supply 20 per
cent by measures of economy suggest
ed. He asked the witness whether the
statements were true or whether they
l. -, of ba 70 or
tain railroads of Europe were taken
over by the governments when war was
declared.
Counsel for the carriers mmediately
were upon their feet. One said:
"Mr. Rea, understand that question.
You are asked whether the railway
committee which is working here for
the good of the nation has issued this
statement for the purpose Of deceiving
the people"
No "Insult" Meant
al didn't say that" replied Mr..
Thorne. "You have turned my question
into an insult"
Mr.. Rea said that the statements were
merely suggestions, and that it might
prove impossible to put them into eff
feet.
At the outset of his examination
President Loree was questioned re-
garding the finances Of his road.
"Did you see the condition regarding
supplies that now exists coming in De-
cember, 1852" he was asked. He said
he did.
"And yet" said the examining attor-
ney, ain December, 1915, you declared
a dividend payable throughout 1917"
The witness again replied in the af-
frmative.
To further questioning Mr.. Loree
said that the advance in coal which
comes from the Delaware & Hudson
mines would enable the mining COM
pany to make profit
Then you want the shippers to pay
you an increased price for the coal the
railroad uses so that the coal company
may make a proft?" asked the attor-
ney.
"If that's the way you figure it, yes
replied Mr.. Loree. He added that the
increases in the price of anthracite were
justified by the increased cost OF labor
"If your company stood alone, would
you feel justified in asking for the 10
per cent increased" asked the attorney.
"Yes," replied Mr.. Loree. 1t will
not be sufficient to meet the advances
we have had to stand"