TTTE BEE: OMAHA, FRIDAY, APRIL 3, 1914.
MR. REA MAKES FINAL PLEA
y- Head of Pennsylvania Revicwi the
xtauroad Situation.
ALL LINES ARE IN BAD PLIGHT
ays Mararln netrrn-n Gross neTcting
and Operatlna Expcnm U
crcjvlna Money Needed'
for Improrements.
WASHINGTON, April 2.-Presldent Ilea
of tho Pennsylvania system was the latt
witness to be heard' today before the In
terstate Commerce commission, on behalf
of-the eastern railroads asking for an In
crease In freight rates. Oral testimony
for the roads was concluded with his
statement.
Chairman Harlan and Commissioners
Clerk and Meyer were on the bench. Dr.
tDumba. Austria-Hungarian ambassador,
and his guest, Prince llunster of Derne
burg, were Interested auditors.
J T. Wallls, general superintendent of
motive power of the Pennsylvania, In-
frrrnm1 hv rilffnrH Thorns. exDlalned
that sUel cars and heavier locomotives
had induced an increase Irt repair coat,
white higher wages materially had added
to that Item of expense.
J. S. Rodgers. general superintendent
of the Pennsylvania testified that the
"charges to operating expenses on the
Pennsylvania system, east of Pittsburgh,
were $24,855,624 In 1910, and 2,1,210 In
1S1J, an increase of 18.3 per cent." He said
hnt idmish for malntalnonco of way
.during 1913 were much greater than ever
before and probably would remain at tne
present high level because of large In
creases In wages; the policy of regulatory
bodies increased demands of the travel
ing and dipping public, the necessity for
a. higher standard of track structure and
roadbed on account of heavier equip
ment and traffic, and the polloy of
eliminating gride crossings, establishing
various unfp.tv devices and systems;
straightening lines and similar .works. He
Indicated, also, the higher cost or rails,
anrl mtrllm used in ballasting the
road bed. He dwelt particularly on the
cost of safety appliances, demanded both
by law and public sentiment.
KmiI Hfnrn Net Income,
President Kea said that not only the
Pennsylvania, but all American railroads
were confronted with the necessity of
imnehmsnL which might prove serious,
unless they were permitted to Increase
their net Income. He said:
"Unless the gap between receipts and
expenditures can be widened, we must
begin to retrench, and retrenchment must
betterments and Improvements
not directly necessary to the movement
of trains. W should be very reluctant
to do this,- as it would be to run counter
to our tradition and. practice of half a
century, and we are sure .that it wouW
not be '.in the public interests, and we do
not believe the public desires ,it. . .
"Now we have as much public support
as can possibly be given to a plan, almost
national In its scope and effect, and we
firmly believe our application for a very
moderate freight rate Increase is in ac
cord' with the best public interest."
While he did not assert that the ad
vance was "necessary to the mainte
nance of the Pennsylvania railroad com
pany's dividends In the Immediate fu
ture," Mr. Rev declared that "any gen
eral idea, that the Pennsylvania's posi
tion, was,' jo strong asnoX to j&I any
additional- revenue is not- corrects He
added ."that the Pennsylvania had earned
only 4.84 per cent during the fiscal year
of IMS.
Look: Into Future .Developments.
Discussing the desirability of the Ne
cessity to. provide for future traffic de
mands, Mn Ilea said:
"We also know that it is unwise and
Impossible; to limit new facilities fo ac
tual and Immediate necessities.
, "Necessarily that Involves a large ex
penditure of money that only gradually
becomes productive. We know that Judg
ing from our past experience, many mil
lions could be advantageously expended
on the system In the next few years.
We have confronting u a program of
expenditures, which wo believe to be es
sential, some of them nfalnly for the
benefit of the public, but all of them
necessary to properly accommodate the
present and future traffic.
"It Is unwise, as well as unnecessary,
to commit ourselves to any large fixed
program of expenditures, except to say
that without assurance of adequate earn
ings they cannot proceed, and a reason
able portion of the cost of these future
enlargements and Improvements ought,
in our Judgment, to be provided from
surplus earnings."
Conclusion at Mr, Ilea.
Mr. Rea's conclusions, which he indi
cated applied concretely to the Pennsyl
vania and. generally to all other roads,
were, these
1 The margin of surplus Is steadily
diminishing and the company Is not ret
celvlng any return either on the addi
tional capital Invested, or for tho value
of the 'service rendered and the facilities
provided for public use.
2 Had there been no surplus in earlier
years, and had the whole of the improve
ments been paid for out of the capital,
the margin would now have reached the
vanishing point.
S If turplus steadily decreases, im
provements, if made at all. will more and
more need to bo made out of new capital.
4 Hut If the margin of safety decreases,
new capital will only be raised with
greater difficulty and on more onerous
ffindeed, it Is questionable whether, If
imw capital Is to continue to earn no in
come, tho directors will be Justified In
attempting to raise more than a modicum
' of what tney believe necessary, as, the ef
fect must bo 4o reduce the percentage
return on the shareholders' capital al
ready invested.
Fifteen Years' Comparison.
President Rea concluded his direct
itatement with the following comparison
of the condition of the railroads. In 1838
and 1913:
"In 1?9S the company was emerging
from a rlod of prolonged and very se
ere expression, whereas in WIS It wa
at the end of a great period of growth.
It would be naturat under ordinary cir
cumstances that the owners of the prop
erty should find themselves very much
letter off In 1913 than they were In 1898.
the fifteen years between 1898 and
1913 the company had the benefit of the
following:
"An advance In 'certain commodity
rates.
"The abolition of rebates.
"The expenditure of hundreds of mil
lions of capital for Improvement and en
lavement of facilities and equipment
"A consequent great Improvement In
efficiency and use ot plant.
"In the fifteen years, 1S38 to 1913, prop
erty Investment Increased from about
872,000, CO) to almost 11,387,000.000, or "5
per cent; operating revenues Increased
from a little less than 8145,000,000 to over
8382,000.000, or 163 per cent: operatlng'rev
enue per mile of track operated increased
from 88,178 to 815,261, or 87 per cent, the
company thus had during these fifteen
years all the benefits arising from a re-i
markablo growth of business, both In vol
ume and density, whith ordinarily under
tho law of Increasing returns should have
materially Improved the position of Its
owners.
Return Are Decreasing.
"But as a matter of fact, tho return
on property investment in 1S13 was only
6.48 per cent as against 8.43 per cent In
1898, and furthermore was tho smallest
return In any of the fifteen years of the
Period; the percentage of net corporate
income (plus interest on funded debt) on
total capital obligations In 1913 was but
6.88 per cent, against 6. $5 per cent In
1898, and with the exception ot the year
1899 It Is tho lowest of any year In the
fifteen-year period; the net corporate in
come per cent on capital stock outstand
ing held by the public In 1913 was only
9.64 per cent, against S.53 per cent In
1898, and here also the 1913 figure Is tho
lowest for any year In the fiftecn-year
period, with the single exception of 1899,
when tho figure was 8.94 per cent,
"Tho conclusion to be drawn from these
facts is that the Increase ot expends
and other outlays beyond the' company's
power to control has finally overcome
the advantages thus far realized ot ad
vanced rates, abolition of rebates, In
creased volume. and density ot business,
large expenditures of capital and Im
provement In plant and methods. The
company Is now confronted by a rapidly
decreasing rate ot return on property
Investment and capital obligations, and
Is unable to offset these tendencies by
any methods which It can at present
apply, or which seem to be practically
possible other than an advance In rates."
Old Favorites
For Everybody
All the Dear Old Songs Sorr rironght
Together in One Volume.
Some people like old wine; many people
love old friends, and everybody loves tho
old songs.
As previously announced, The Bee is
offering a complete collection of all the
old favorite songs brought together in ono
beautiful big volume called "Bongs That
Never Grow Old."
AU ot theoe Bongs havo been compiled
and selected with the utmost care by tho
most competent authorities and are
printed and bound all together, making
seven song books in one volume There
ore two stylea of binding, one in paper
covers and tho other in heavy English
cloth. The contents are the same, but,
ot course, the cloth binding is more dur
able and with ordinary care should last
a lifetime.
An innovation in this edition are the
magnificent inllustratlons. These consist
of a rare galaxy of sixty-nine wonderful
portraits of the world's greatest vocal
artists, many in favorite costumes. The
list includes Caruso, Tetrazlnni, Mclba,
Slezak, Farrar, Bond, Gorttx, Scott),
Frcmstad and almost fifty others. None
of these portraits havo ever been shown
in a work of this character, and they are
all reproduced from copyrighted phto
graphs which have been approved by the
artists themselves. "Every reader will
want to possess this rare and unlquo col
lection. In another collmn ot this Issue wjll be
found a coupon In which Is explained the
plan of distributing this beautiful book
of eongs. The Bee will undertake to dis
tribute an entire edition within a limited
tlmt and readers are urged to lose no
time in familiarising themselves with the
plan. '
Famllyv Burned to Death.
PITTSBURGH, April 2. Two. police
men were seriously burned and an entire
family consisting of the father, mother
and three children were reported missing
as the result of a fire early today. Four
frame tenement houses were destroyed.
Policemen and firemen rescued more than
a score ot persons.
BRANDEIS
STORES
SATURDAY SALES
275 Dresses
in Silk or Cotton,
Worth up to $20,
on Sale at an
Extreme Low Price
Rose Bushes
1 OC Each I
Al
General Jacqueminot,
Crimson Rambler,
La France.
' Klllarney,
Yellow Rambler,
Dorothy Perkins,
Blue Rambler.
Baltimore Bell.
SO
Peonies,
Hydrangea,
Honeysuckles,
Lilacs.
Clematis, ,
Phlox.
Bhasta Daisy,
and others.
All 10c Each
Large Size
Kid Body Dolls,
worth $1 and $1.25, Q
Saturday . . .
Sale of Drugs
and Toilet Goods
Saturday
Sale of Women's
Handbags,
Saturday at . $1
Sale of 2,800 pairs
Women's Gloves,
worth up to $2,
2d Anniversary Sales in the Basement
Cotton Crepe
Tho most practical
wash fabric for houso
drosseB, waists, otc, in
largo floral designs.
30 Inches wide. Reg
ular 15c quality, yard.
Sale of Suits and Dresses
Worth $12.50, $15 ana1 $17.50
Women '3 Hosiery
Fine cotton with
doubjo heels and toos.
All black or black with
mucu ieoi. worth reg.
ularly to 10c. In base
ment Friday at
$8.75
The Dresses
Hundreds from which to choose,
including taffetas, poplins, mossn
llnes, crepes, etc.. In nil now styles,
with drapes, folds, tier skirts and
other smart ideas. The latest
styles In sleeves and collars. Many
aro copies of high prlco modols.
All worth $12.50, $13.50 and $15.
Choice Friday at 98.70.
Basement.
women's vests Coats Worth $7.50 to $10, at $4.85
Womens shaped
colton vests with taped
neck and arm eye.
Cuff knoo pants to
match. Worth to 25c.
Special Friday, gar
Silk Boot Hosiery
Wnmfln'a Mi 1
w vrswi o umujt IlUr3
silk boot hosiery. Wide
garter tops, double
solos, lislo spliced
heels and toes. Worth
to 35c, at, pair
Dress Goods
Samples
Importers' samples
of dress goods In over
200 styles and weaves.
Used as Importer's
house samples. Spe
cial, each
5can(f9c
Corsets
For medium and
Blonder figures. Made
of coutll. Lace trim
mod. Long over hips,
with four garters at
tached. Regularly 59c,
Friday-
Lining Remnants
A ITPAt Inf
Ienclna nf flnA mi.iii.
lining satin 1n various
opeciai riaay
In basement, each
piece
2Ci 50 and 9c
Women's and misses' short spring coats ot serges.
satins and novelty cloths, with lace collar and cuffs;
also long coats of silk, satin and serges. Actual $7.60
find $10 coats, at $4.83.
$3.50 Rain Coats, $1.69
women's excellent quality rub
berised raincoats at a bargain
price Friday. Very well made of
i cloth, with rubber Inside. Values
up to $3:50. Friday ti Q
only P JL Oa7
Muslinwear
Gowns, princess slips,
drawers, skirts and combi
nations worth 76c to $1;
on sale Friday, 45c.
The Suits
A wonderful group of women's
and misses' spring suits, Including
many worth $12.50 to $17.50, all
for l?8.75 Friday. Latest styles,
with jaunty short coats, now
sleoves and lace collars. Fold,
drape and tier skirts. Flno sorgos,
crepes, diagonals, novolty cloths
and mixtures, In a complete selec
tion of tho best new colors.
Basement.
Lace Curtains m
1 Cable net, filet net H
B and flno Nottingham H.
Atf laco curtains. Regular
ff prlco $1.50 to $2 u m
r pair. Whllo three casos V
fij last, each
i lf1A J
Wide Embroideries
27-ln. ouibrotderles
Including flounulngs,
allovers and wnlstlngs,
in fine bwIgr and nain
sook. Qualities worth
to 00c, at. yard
Sample Wash Waists
Hundreds of white and colored
wash waists of fine crepes, voile:
and tissues, a makers' samples, ami
an worm ii.bo. ctioice Fri
day In tho basement at.
Special Lots of Skirts $2.39 & $1.39 1 Bed spreads
Fino Marseilles bod
spreads. Sea 1 1 o p o d
with cut corners; also
plain hemmed. Some
slightly soiled. Regu
lar $5 values, at
S2.50
Child's Dresses
Children's white lawn
dresses, trimmed with em
broidery. Ages 6 to 14.
$1 garments, Friday, 48c.
Women's and mlssos' now spring skirts with all tho
smart style features, folds and tiers. Made of excellent
quality materials. Extra sizes Included. Very special
Friday in Basotnont. 93410 and 91.30.
Children's Rain Canes
Plain color and striped rubber- I
Ized rain capos for girls of 6 to 14
years ot age. Made good and 1
full. Have plaid lined lioodB. Ac
tual $2 capes. Special Q7
f I
House Dresses
Twenty-four stylos in
women's houso drosses ot
ginghams, lawns, madras
and per cale, choice, 07c.
'; 87o
Friday at
Wash Waists
Women's white and col
ored wash waists with long
or short sleeves and low or
high collars. Special, 38c.
Anniversary Sale in the Basement Shoe Store
Odds and ends ol women's pumps
and oxfords in small sizes. Tans and
black. Also satin slippers in colors
All worth J2.5Q r more
Choice Friday
Women's kid house slippers with straps and hand turned soles,
Sizes up to 5 only. Regularly worth $1.60 pair. Friday, Efi
special OUC
25c
Hundreds of pairs of women's
pumps and oxfords in good spring
stylos, In back or tan. Excellent
qualities; regularly worth
$2.50; on salo Friday J 1
Women's Juliet houso slippers
with floxlblo soles and rubber heels.
Plain or patent tips. All Biros t 4
Special at . . .f. ; . . ; P JL
Children's pumps and oxfords
slzeB up to 2. Patent, dull or tan
leathers. Worth up to $1.75.
Special Friday at
Handkerchiefs
Fine sheer llnewoave,
with corded or fancy
colored borders; also
men's India llnon.
Some all linen. Blight-,
ly imperfect, at. each.
Boys' $3 Norfolk Suits $-fiQ Boys' $5 Serge Suits $i)lft
A very special bargain ln tne Basement I JLJ Boys strictly all-wool blue serge suits, TEV
Anniversary Sole Friday. Our boys' 1 3 Nor- jVWT In Norfolk styles, for acres 6 to 14 years. B
folk suits, in blues, browns and grays, on M w A negular 5 suits on sale Friday in the base- ftM' n
ment
Anniversary Sole Friday. Our boys' 13 Nor-
folk suits, in blues, browns and crays. on M,
ha.1a nt . . . .
Boys' 75c Knickerbockers
Knickerbockers or blue, brown and irray
twoeds and diagonals, every pair made with
belt loops, regular 76c values, at
Men's Union Suits Worth $1.25,
Very fine quality sprint: welcht short
sleeve union suits, worth- to I,2S, Fri
day ln tho basement for only
3
nsnM m v w i m
39c W
mm
Boys' Sample Raincoats $
i' or Friday in the Basement Anniversary
Hales we offer a lot of sample raincoats for
boys of 4 to 12. $2 to )3 garments, special..
Men's $1 Underwear, Friday,
Men's sample spring and summer
drawers, undershirts and union suits, of
lisle and silk lisle, worth to fl, for..,.
Kid Gloves
Odds and ends of
long and short kid
gloves. Somo are
mendod. Others por
foct, but soiled. For
merly priced much
higher, pair
Untrimmed Hats, AO
Worth to $2.50, for...JOC
The newest blocks ln untrimmed
horap shapes in small medium and
large sizes. Black, white and burnt
shade. Also a large assortment of silk
top hats. All worth up to $2.50. Cholco
Friday at 08c. IJascment.
Millinery Trimmings
An Immense line of ostrich pon poms,
flower wreaths, clusters, fruits and fo
liage, in all the season's best shades.
Specially priced for Friday in the basomont at
39c, 49c, 79c and 98c
Pants
Worth
to $2.50
at $1
SAA nnlra nf mn'n wnrlr nntita In twnnrifi
and worsteds all sizes, 34 to 44. Worth
up to $2.60. On sale in the basement Fri
day at $1.00.
Slipon Raincoats at $1.98
Men' slipon raincoats ot double texture, spot
proof, waterproof fabrics, with cemented seams.
All sizes, 34 to 44, Values up to $6, on sale Fri
day in basement at 91.98.
Union-made overalls, special ln the base
ment at 4Bo.
Genuine Soisetta
Dress lengths ot
mercerized solsette.
Name printed on sel
vage. All desirable
spring shades. 32 in.
wide; 25c quality,
yard
m mr i mw
m lueaa mines m
0u 69c quality silk
I masa,,D0 ,n bIa and I
wide range of coIor. 1
f IfSi n l?WB the I
m wSm t,nts- Spec,aI 'or 1
1 riday. yard
Fancy warp print ribbons, 4 aid 5 inches
wide. Special at, yard
4-inch messaline ribbons. Good colors.
For trimming or rosettes, yard
Remnants of colored oil damask. The
50c quality. Special, yard
Heavy, double ply Turkish bath towels,
Regular 15c values. Special at
Remnants of Rosemary table damask.
2 to 3-yd. lengths. Perfect. Yard ....
Half linen huck towels, blue borders, 71
Worth 12Ve. Limit 1 dozen, each.... 2i
Heavy double fleece table padding.
Regular 50c quality. Special, yard. .
Mill ends dimity bedspreads. Some
for full or size beds Choice
Orochet bedspreads. 72x84-inch size.
Regularly priced $1. Choice at
All wool challies in new designs.
Tho 49c quality, special at, yard. . . .
50c to 69c silk remnants, 2 to 8 yards.
Nearly every weave, yard ,
15c
10c
35c
10c
19c
29c
29c
66c
23c
25c
89c
2,000 yards 36-inch serge twills. Navy,
brown, garnet, etc. Worth 20c, yard. . . vC
40-inch silk and wool poplins, 27 desir- QQp
able shades, verv special at wOL
Oorseta in odd sizes. Good styles.
$2 and $1.50 values. Basement at..
Brassieres. Good quality muslin. Em- 4 r
broidery trimmed. 25c values JLwL
Men's shirts. Negligee and outing
styles. Values to $1, special tfuj
17-inch corset cover embroideries and
flouncings. Worth to 15c, yard
Inserting and beadinrrs of Swiss, nain
sook and cambric. 3 to G inches, yd.
12 and 16-inch shadow corset coverings.
Beading top and bottom, yd ,
Women's swiss jibbed cotton vests. Reg- Qi
ular 12,l:c values, Friday, special 0 2j
Men's heavy mixed coarse knit sox.
Rockford style. Worth to 10c, pair. .
Children's fine and heavy ribbed school 71
hosiery. Worth to 121 2c. nair i Sir
8e
.. 6c
12c
Wash Fabrics
An assorted lot
which has accumulated
during our March
sales. Lengths from 1
to 20 yards. Worth to
35c. Friday at, yard
Wallace Silverware About Half Price itI"
A special purchase for the Anniversary Sales ln the basement enables us to offer
this well known tablo sllvor at extreme low prices.
French grey finish handles. Very artistic pattern, Pure white metal base,
heavily plated. The most reliablo silver plate were ware over offered at a low price.
Teaspoons, set of C, 75c value, aoc.
Dessert spoons, worth $1, set, 60c.
Table spoons, worth $1,26, set, Gf)c.
Sugar1 shells, worth 25c, each, 10c.
Butter knives, worth 26c, each, 10c.
Cold meat forks, worth 60c, at 2ftc.
Gravy ladles, worth 50c, each, 25c.
Berry spoons, worth C9c, each, 'Mc.
Orange spoons, worth $1, set, 80c.
Pickle forks, worth 25c, each, 14c.
Knives and forks to match, worth $3 dozen. Special ln this sale, dozen, 91.70,
Pis
Notions
J. O. King's beat
thread, 10c dozen.
Dress snap fasten
ers, lc card
3-in-l machine oil,
Oc bottle.
Darning cotton, 4
balls, Sc.
Hair Nets, loo doien.
100-yard spools sew-
in BI1K, 3ftO.
J'ins. 10 paper.
Coat hangers, 3 for So.
