The Bridgeport evening farmer., 1917-11-06
15 PER CENT. RAILROAD RATE
 CASE RE0PENED
SS Roads East of Mississippi Demand Higher
 Rates.

fnw of the 1s per. cent. rate advance csss before the interstate commerce commission today was marked by roads that transportation facilities and financial stability of the roads are neuaoed by prevailing rates.
 we cannot afford to make mis- takea." declared Samuel Rea, presi- don't of the Pennsylvania railroad. in .openlnx the case. Tt Is not a time fof panic. but neither is, 1t time for disrerarding the facts of increasing expenses, of dimlnishing net operat- tnx income. of deferred maintenance. sf lack of present facilities and in- ability to provide future ones"
 War time conditions with the re- suItant increase in the cost of. labor and materials make it imperative that an advance over the present rates be granted, asserted counsel representing 1B systems operating east of the Mis- GDss1ppi and north of the Ohio rivers. xf The roads are to handle adequately the great volume of war time tramc without inourring the. imminent risk of financial reverses. better prov s- ion. it was pointed out. must be made by the government.
 with the successful prosecution oi t1s war the paramount duty of the nation. and effectiveness of the mobil- ised Industrial machine to supply 2 men, Srt1unitions and foods dependent tc 4 great extent on transportation 1t was urged that no means of main taining adequate railroad facilities and of strengthening imperilled rail- Toad credit be negieoted.
 Decision to reopen the case after an interval of -four months was azl- ncunced by the commission in re- cent letter to George Stuart Patter- son chief counsel for the roads. AL though the nearing affects immedi- Stely only those roads operating in the I east, the result is expected to have a hearing n rates throughout the coun- try. Dedly hearings will continue for several weeks it is believed, with prospects that decision of the case VIII come before the end. of the year.
 Other railroad representatives who were on hand to make general state manta when the hearing began were AYfred Fl. Smith of the New York Central James HI. Hustis of the Bos- ton G nkaine, and Frederick O. Un- derwcod of the Erie.
 When in May the eastern carriers aSired for . 15 per cont rate Increase thev estimated that war time prices of labor and materials would increase tnear operating charges by s2S5 ooo, 900. Cater computations. presented today indicated an increase of aIOooo'ooo' eaesd on the i9aS volume of business, while Increased revenues rom rate Advances since the first of the year 4oeni n. .ooO.o0o The increased oper- nftnx charges arc apportioned as fol- lows:
 Coal, $7s,eoo. 900; wages. $1oz. ,oco' uantoudaIs, so, ,0o0, 900.
 afr. Patterson, for the railroads oe- clnrvd that while grcas earnings TOT x6a first nine months of the present .vrar hass risen s123 ,7ss 900. a loss od skf zs1 900 resulted from a correspono- 9ns advance of $16s, ,431 900 in expenses
 Frrfddeut Req of the Pennsylvania nredicated his plea for an advance on the following existent dih1culties o1 the roads: .sr,ontdnuous increases in the cost of labor. fueL supplies, taxes and ol obtaining new capital
 ~Inability to secure end retain enl- casu4 labor.
 sers.sr4ei1rneut of mAlntenanoe ex- persss. which curtailment is due IF v.yt tp inability to secure necessary labor and rnater4aas-
 ssDecrease in net operating income notwithstanding large increase in op- s arafinr revenue, in property invest yneuk. in carload and in trainload-
 .Reduction in surplus with conse- ouNnt effect on the credit of the car ,rAers.
 ssIuability to secure new capital nJ the issue of stock, with the consequent weakening effect on the financial structure
 inability to provide improvement. and facilities not only essential for the trafic of today, but equally es- sential for the traffic of the future"
 No prospect of lower coal costs i. tossbe found in the governments price liking program on fuel, continued MT Lea
 s-The tentative price of SPAS a tor fixed by the government" he said. '1i over 100 Der cent higher than the price paid by the Pennsylvania system in 1916. i've cents moro than the av' craze price paid April to Sept. 30 And 20 cents more than the price now paid under existing contracts"
 He gave as the annual coal con sumption-of the Pennsylvania system IS, 335.4Se tons and said that the av- 'efage cost per ton from April to Sept 90 thie year was $40, of SLY g ton more than last year.
 Tn addition to the wage advance: granted to trainnen under the terms of the Adamson law, MT. Lea pointed out that the increased cost of labor had swollen the payrolls of the Penn. sylvanda $1s,s00.00o a year. inclusive of increases given to the trainmen..
 Tn spite of these wage increases the roads are meeting with constant diff ficuIty in retaining workers, Mr. Res declared. "If," he added, ''the trans portation machine breaks dowr through inability to secure efficient la bor by reason of inadequate wage rates, it has direct bearing on tho termination of the war