Evening journal., 1917-05-10

In President Samuel Rea's argument
before the Interstate Commerce Com
mission in behalf OF higher freight
rates, printed yesterday in The Sun
in full, there is complete exposition
OF the situation into which the rail
roads have been thrust by the oper-
alton OF rigid charges for their ser
vice and constantly mounting costs
for wages. taxes, and material II Is
highly Impressive in itself; and II Is
doublv impressive when studied with
realization OF the exceptional condl-
tiong among common carriers thal
have been enjoyed by the Pennsyl-
vania, whose chief executive MT. hea
Is.
Those conditions have been pecuh-
arly favorable. The Pennsylvania Gov
ers a rich agricultural and manuiac-
turing region. thickly populated, com
pactly arranged and prolific IN desir'
able traffic. The road has had the
tremendous advantages OF continuity
OF management. conservative control
and unlnterruptedly intelligent ADMIN
istration. It's financial policy has peeh
marked by provision. IL has never
been content to meet the requirements
OF today, but has built for the future
so far as its resources permitted ana
its judgment dictated The conse-
quence Is that II has earned the con
fdence OF the investing public and
won the favor OF shippers to a degree
surpassed by no other American rail-
roads. and equalled by few OF them.
Certainly II any railroad corporation
could maintain itself under the condi'
tions that have been imposed upon all
OF them by law and the progressive
rises in the cost OF operation, that
corporation would be the Pennsyl-
yanls. Its whole policy has been de-
voted to the establishment of stability
to the provision of adequate facilities
for the handling OF its business, to
the stimulation OF industry and COM
merce along its lines and in the re-
gions in which traffic using its plant
originated
So far as the management could
fortify Itself against adverse currents.
it has taken the necessary steps; and
yet the Pennsylvania finds itself to-
day in the position of being Obliged to
beg for larger revenues If the great
fabric genius has created under its
name is to support in the future the
enlightened practices that have made
II the important contributor 10 ma
tional welfare It has been.
Nothing in Mr.. Rea's statement is
more convincing than his tabulation
OF the increased estimates OF certain
expenses as shown by calculations
made last March and in the present
month. Fuel figured at $i0,200000 in
March has been advanced to 5000.
900; fOrty-four per cent. OF the ma
terial required for this year. covering
only items on which specific figures
could be obtained. shows an increase
from Sit,000.000 TO $14,694,000. Wage
adjustment for employees other than
trainmen shows a rise from S7400, 600
to si0,S42 ,0OO this being offset by a
reduction in the increases attributable
TO the operation OF the Adamson law
from Si3500,000 TO Sl0.757, 900. The
net increase in the estimate for May
as compared with that for March is
approximately 100000, and tho in
crement in operation costs-fuel, ma
terials, &c.-is still in progress.
Mr. Rea's own Judgment is that the
increased expenses and taxes OF the
Pennsylvania for 1917 as compared
with 1916 will reach the enormous
total OF S5iS92.0 900, and he adds:
Practically no very substantial por
ton Of these increases became effec
tive until on and after January /. 1917
The figures for the calendar year end
ing December 81, 1916 (Which year
has recently been adopted by the In
terstate Commerce Commission and
for which figures are filed in this