Jasper County Democrat, Volume 16, Number 104, Rensselaer, Jasper County, 4 April 1914 — URGES HIGHER RATES [ARTICLE]

URGES HIGHER RATES

PENNSYLVANIA HEAD CALLS FREIGHT TOLLS TOO LOW. Samuel Rea Testifies Before the Interstate Commerce Commission at Washington. Washington, April 3.—Testimony of eastern railroads in support of their application for a five ser cent increase in freight rates virtually was concluded before the interstate commerce commission by Samuel Rea, president of the Pennsylvania system. Beginning today, the lake-and rail shippers will be heard in opposition to the increase, and it is probable that all evidence for both sides will be completed within the next few days. Presidents Willard of the Baltimore & Ohio, Delano of the Monon, Smith of the New York Central, and Rea of the Pennsylvania will be recalled for cross-examination. Mr. Rea declared that present rates did not yield a fair return upon the capital Invested; that the return had been decreasing continuously, and that unless the downward trend were arrested it would undermine railroad resources and cripple their power to satisfactorily serve the public. Mr. Rea said that only recently the Pennsylvania and some other lines had been obliged to curtail their operating expenses by laying off employes and reducing the number of trains oparated because of the falling off of freight tonnage and passenger traffic. While he did not assert that the advance was “necessary to the maintenance of the Pennsylvania Railroad company’s dividends in the immediate future,” Mr. Rea declared that “any general idea that the Pennsylvania’s position was so strong as not to need any additional revenue is not correct.” He added that the Pennsylvania had earned only 4.84 per cent during the fiscal year of 1913. Pittsburgh, Pa., April 3. —Retrenchment on the Pennsylvania west of Pittsburgh, as announced by the general offices here, has already taken the form of 25 passenger trains, with 25 more to be annulled April 5. Reduction in working forces began late in the fall, and on January 1 last 13,000 less men were employed than on the corresponding date of the year before.