Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1908-07-11
on TIE HORNS or 4 DILEMMA.

The senior vice president Of tn,
VIEW york Central railroad, Mr.. w. G
brown, states in a published inter
view
4 The railroads are absolutely
obliged 10 either make a moderate IN
crease ia rates or a substantial redue-
ton in wages II they are to avoid
bankruptcy. The country AS "A whole
tan not be prosperous until the rail-
ways are able to resume purchase Of
tho materials. equipment and supplies
upon which 50 many millions of tho
eauntry's inhabitants depend for a liv-
Ing"
Taking for IT'S text the foregoing
declaration ~ Mr.. Brown. the New
York Herald says.
There IS no question Of greater i'm
portance before the people than tho
necessity of roadjustment OF rates or
wages. of both, In his greatest Of All
Industries The railroads directly en-
ploy 2 million and u half men, which
means that seven and a half million
persons. or about %one-twelfth the pop
u~iatiop Of the United States, are d.
fpetiy dependent upon them.
The scope OF the problem may bo
Inferred from the further facts that
millions OF men are employed In con
%tributory industries and other millions
are Interested as holders OF bonds or
shares-in other words. as creditors
ot owners 81 this gigantic systom-and
that every man, woman and child IN
the country Is directly affected by rail
way rates, which are a vital factor IN
the price Of everything consumed.
That the railways cannot go on as
at present without disaster is patent
declares the Herald. Earnings for the
last two months show a shrinkage at
the rate Of $500. 000.0 00 yearly IN gross
and $~2o0.000.000 in net income ~
Brown, Of the Now York Central. puts
the case in Il nutshell. when Ia says
the companies must raise rates or re-
.duee wages II they are to avoid bank-
rtptcy Personally, he urges a hori-
zontal raise OF ten per cent IN rates
He argues first, that the basis Of
wages Is not perhaps too high In view
OF the hazards OF tho service. and.
second. that reduction would only be.
come effective ut the end Of a conflict
with organized labor which would cost
the country ten times the amount in
Nelved in amy possible Increase In
freight rates.
other railway officials, however. in
that there Is no salvation hut in
reduction of wages President Mocrea
Of the Pennsylvania railroad. Is con-
spieuous Ia advocating this view and
in opposing those who think with MIR.
Brown The question viii be threshed
out al the meeting of railway. presi
dents August Is. IL is argued that
even with a ten per cent advance in
rates the roads might Dc unable to en-
ploy their fun force OF workmen ana
maintain existing high wages. whereas
a ten per cent cut in wages would
much greater relief. adding
or $4,000. 900 "a year 10 incl
net earnings OF the Pennsylvania SIS.
alone. u is also e%ontendcd that II
rates are advanced this wiz be taken
~ AN implied obligation 10 maintain
present high wages
from now until the meeting Of
presidents the baltic viii be waecd
between the adherents OF these on +,
pissed views. All. however. are a unit
.n accepting the Hcrald's declaration
mat existing conditions must tormi-
nate IN disaster unless a remedy Is
speedily applied