Los Angeles herald., 1908-03-02
TO
OBEY LAW But
, PUBLIC PAYS
MANY TELEGRAPH STATIONS
TO, BE CLOSED
PAY OF OPERATORS ALSO MAY
BE REDUCED
No Concerted Move by Lines to Cut
Wages, but independent Action
Is Likely to Be
Taken
BY Associated Press.

BY Associated Press.
WASHINGTON March 1. The
American railroads have\ made ar
rangements to comply with the pro-
visions Of the nine-hour law, although
the operation of the measure will mean
the closing of a large number of small
stations on the principal systems. :.
| Discontinuance of railroad service at
many points, it is thought, will induce
at least temporary inconvenience to the
travelling and shipping public, in order
to reduce operating expenses, which
now seems necessary.
The operating officials of the rail-
roads believe that this Is the only way
that they can possibly meet the situa-
tion with which they are confronted.
During the hearings for an extension
of the nine-hour law by the interstate
commerce commission, some astonish-
ing statements were>made by the oper-
ating officials of railroads. A good
many lines owing to reduction in the
revenues and to their ability to COM
mand the cash necessary to meet their
pay rolls have been forced during the
past four months almost to the point of
asking for receivers.
In the opinion of railroad officials,
expressed at the hearing under oath
| and in private conversation, this condi-
ton does not seem to have been due to
the enforcement of regulative laws or
( to the incapacity of railroad manage
ment.
Banking Scare Cause
Most of the railroad officials attribute
the difficulty to the unfortunate bank
ing situation which developed last Sep
| tember. The railroads did not feel the
stringency until about the first of No
vember. In fact, the month of October
was one of the best in the history of
| the business of American railroading.
"Then without the slightest warning
H. u. Nudge, vice president and
general manager of the Rock Island
system, expressed 1t, 1--WE were plunged
from prosperity TO adversely. A year
ago our system could not handle the
traffic offered us Today we have H.
600 idle cars. Five months ago we suf-
fered from congestion of freight, now
we suffer from congestion of empty
cars
What is true of the Rock Island is
One railroad official ventured the
statement that in the country today
there were 900 idle freight cars. and
one line which he instanced was de-
clared to be hauling empty cars back
ward and forward because it had not
yard room or sidings to accommodate
| them.
Not single official of single rail-
road who appeared before the commits
sion, however, expressed the belief
| that the present industrial depression
would be lasting. In the testimony of
nearly every witness there was note
| of confidence, because nearly every
one of them believed the stringency in
the money market from which the
country has suffered is not due to fun
damental causes. They point out that
the crops last year were good; that
prcies were excellent; that Industrial
enterprises throughout the country
were fiourishing.
1t was merely the inability to COM
mand ready cash and the boarding of
| money by nic-stricken individuals
which produced so suddenly the re-
markable depression by which all have
suffered.
They practically uniformly express
| confidence that the return of prosperity
will be almost as sudden as was the
coming of adversely and in their argu-
ments as to the enforcement of the
nine-hour law they pointed out to the
commission that such return of pros
perity might seriously embarrass them
| in complying with the law, because 1t
would render it difficult to command
the services of competent operators in
sufficient numbers to meet the needs OK
prosperous conditions. With four or
| five exceptions no important railroad in
the country has indicated any inten-
tion to reduce the wages Of their en-
ployes.
No Concerted Action
| AS Chairman Knapp of the interstate
commerce commission expressed It:
$50 far as am informed there is no
concerted action on the part of the
railroads to reduce wages. Instances
of an intention to change the scale of
wages have been given, but they can
| be said to be in no sense general"
| Such railroad companies or their en-
ployes as may take advantage of the
/ Erdman act to secure the mediation or
the chairman of the interstate COM
merce commission and the commits
sioner of labor will be accorded every
opportunity fairly to present their case
to the government officials. 1t will be
1.-THE effort of Chairman Knapp and
Professor Neill amicably to adjust the
differences between the companies and
their employees. Their efforts will be
purely conciliatory as board of arbi-
| tration. Any decision which they may
reach in given case will not be bind
| ing upon either party to the contro-
lversy They expect. however, to be
able to adjust such differences as may
be presented to them on the facts now
in their possession without serious diff
fculty.
Hastens Use of Phone
CLEVELAND, March 1.-The nine
hour law for railroad telegraphers,
which becomes effective next Wednes-
| day, is fastening use of the telephone
| in the operation of trains, according to
A. S. ingalls,, assistant general super
intendent of the Lake Shore road in an
/ interview
"I believe" said Mr.. ingalls,, "that
the new law regulating working hours
will bring about within one year what
Hit would have taken ten years to ac-
eomplish in the direction of new use of
the telephone on railroads. Since Oc-
tober tests have proved so satisfactory
that railroads In many parts of the
lcountry have stirred themselves"