The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-11-29
0ust0n, Tex, Saturday, November 90, 1902.
FREIGHT RATES AND WAGES.


The New York Commercial thinks that lit
will not do to generallze too much In form
ing an opinion as to the justification for the
proposed advance in railroad freight rates
This matter of a more or less general
advance In freight rates is Of particular In
terest just now. In several cases the ad-
vances have been made by roads which in
the recent past have increased the wages of
their employees. In most instances the in
crease has amounted to about 10 per cent,
while the advance in freight rates has
amounted to at least 20 per cent.
This fact does not worry the Commercial,
which says
Not only is il possible bat highly probable,
that such advances would have been mace sooner
or later even II there had been no advance IN
wages by the various companies Il should be
kept in mind that the Pennsylvania wages adj
vance was prompted primarily by the company
increased earnings and the extra work done by
Its men, and was then made 70 seem justihahle
only on an assumption that present conditions
at ieast.
It is noteworthy in this connection that no
less a republican authority than President
Roosevelt himself is reliably reported to be
OF the opinion that the advance in wages is
only bluff and that the increased cost OF
operation resulting therefrom will be more
than balanced by the increase in freight
rates. This opinion is said to have been
advanced by the president at a recent meet
ing of the cabinet, Mr.. Roosevelt having
deemed 1t necessary to 90 into the question
quite fully because of the fact that four
members of the cabinet were opposed tc
anything antagonistic TO the trusts or tc
railroad combinations being included in the
message which will be sent to congress mex
Monday.
But the Commercial ignores the alleged
position Of the president and the well known
views of the people all over the country ant
proceeds to explain matters thus;
On the other hand the Wabash company point
cd out very carefully and plainly that its wage
advance based on other considerations en-
tirey. There had been large increase IN TIT
volume OF its traffic and increased earn
ngs but meantime wages It's lines had ad
vaHced ON an average about per cent from tn
bottom rates. while rails had gone up over y
per cent. eeneTa supplies somewhere around
per cent and fuel latterly more than 90 per cent
so that the revenues from freight per ton mil
had actually fallen 70 per cent during the pas
FIVE or six years Still the Wabash advance
wages with a warning that they would have Z
speedily he cut down again unless more reyenu
could be had from the shippers Of freight
hesc Two instances larry Illustrate the vary
ing conditions now obtaining in railway affairs
They hardly warrant New York yellow" 1
shouting that the railroad employees in the lead
ing lines will within the year draw an increas
OF slssooooo in wages while the companie
themselves will get an increase Of S24ooo,ooo !
freghts and thus come out five and half mi
lions ahead with money "wrested from the pub
lie. Nor is the Philadelphia North America
e all Justified in making this sweeping declare
ton;
"An the great railroads are making money
present rates and the increase In traffic nor
than pays the added expenses OF operating, Il
stead Of raising rates, the greater volume OF bus
ness should reduce the proportional costs of SER
ice, just as increased travel on traction lin,
reduces fares-where there is competition
possibility Of competition"
he fact is that many Of the companies ha,
not heen able 10 take full advantage Of this VI
naraleled freight movement that began IN i89
Not few OF them show an actual decrease
earnings per tou-nile for 1907. An e%amiuatio
OF the reports OF thirty-one important cumpani,
recently rendered di6eloSes that considerably moi
than half o. the number earned less per ton mi
n The hseal year rool-os than they did in 10000
Il IS hardly fair therefore TO assume that
every instance advance IN freight rates no
would be just 50 much extra profit to the con
pany.
Il may be approximately true, as President III
Of the Great Northern has said, that there Won
be no need Of any advance Il the published rat
were obtained from every shipper alike That
something that our interstate commerce eommi
sion has been wrestling with for years witho
eifecting a remedy for the evil But even
that the companies are not the only sinner
Few shippers viii turn their backs on cuts
they can set them. And must all admit III
it is very, very human to protest at advances
railroad freight rates even when every condt
justifes them.
The Commercials explanation does n
explain. It Is perhaps true that the rairoa
would have raised their freight rates
respective OF what they might have do
In the way OF increasing wages. But
seems plain, also, that the advance in rat
would not have been forthcoming so so
had it not been for the increase in wag'
The country is deeply interested in the m
ter OF trusts and combinations just no
and it would have been considered decld
vindication OF the general republican poll
had the railroads found It possible 70 I
ncunce. with great flourish Of .rumpe
that they would pay their employees bett