The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-02-28
HALTS
WAGE REDUCTIONS
Attitude Serves as Check
to Railroads
Plans.
Gould Make Things I'm
pleasant for Those
Who Oppose.

Who Oppose.
In view OF much misunuersta nding
which mas arisen concerning the inten-
lions and significance OF President
Roosevelts recent letter about rail-
road moves 10 reduce wages of en-
ployes, an authoritative statement has
been made as TO the Administration
purposes. Railroad men and public men
alike have misinterpreted the letter TO
the Interstate Commission, IN which the
President indicated that he wanted 10
know the financial reasons necessI-
tating reductions OF wages. and wheth-
er previous financial acknowledgement.
rather than present slackness Of bust
ness, might not be responsible.
FAilroat men have been properly
meek since that letter was given 10
the public, hot or the White House
typewrite.-, but they have admitted that
they didn't entirely understand it., It
can be said that the President and his
advisers have no. IN mind to attempt
che prevention OF wage reduct Ions IN
cases where there f. good reason for
them, There is, TO- 'lat matter. no
machinery which the Government could
use 20 prevent reductions. Aside from
moral suasiOn and the process OF vol
untary arbitration under the Erdmann
act. the Administration has no power
in such matters.
But there is plenty or opportunity %
exercise suasion. ana the PresbI,nt % y
tn ali - d T..
be regarded as an unfdencly act toward
the Government. IN its capacity as a
supervisor OF certain phases OF railroad
business, to reduce wages unless there
has been a showing Of good reason there
for. Railroad mana gers are expected
70 understand that they viii stand better
with the Government 1: they proceed
slowly about such things: especially Il
they make no reductions til after they
have called IN orbitrat0rs provided by
the Erdmanu act, and convinced them
OF the need Of the reduction.
Railroads Might Suffer.
Incidentally, the arbitrators and the
Interstate Commerce Commission are
expected 70 accept the hint and recog,
nize that tho fullest employment Of theil
towers viii be approved, in effort Il
get az the bottom OF tie conditions Of
roads proposing 10 reduce their wage
rates. II is anticipated that no roaf
Win a scaly financial past viii yearr
10 subject Il 10 such inquiry unless its
condltlof. - urgent. Likewise, h Is
thougnt that rOeds whose financial man.
ayers nave been especiaIIv hostile ~
me policy OF regulation and coD4ro
VIII make special EFFORT TO avoid con-.
oltlons that would force them to sur
-. ~ ~ sucn inquiry into their pasts "a
tAe interstate Commission would pre-.
sum stDIy De disposed to make IN View
or the Presidents Instructions
me slluatlon ia this: If a given rail
Ioad Hnds It's situation such that Their
IS serious need 70 reduce eynensSa an
has done everyth ing pOssfbia sbo,-, -,
d cut In wages Il is invited 10 MIX.
proposals 10 its employees l9olcipc- n
agreement on such reduction. and -
wIleh theSe proposals arc taken ,
~ - - dis-gre einent-as Is pretty =
t9lh 70 occur in any case. IT. View q,
the presidents active interest-then tbt
Two parties are desired 10 call On IN,
act ma
These arbitrstor5 are the Chairman
Of the Interstate Commission Neil
a. Knapp, and Commissioner Of Iabo,
Nelii- In case these two cannot aarea
they are authorized 10 agree on n mir
arbitrator; but they have never ye-
uoIs tius. me recommendation OF ths
aEoitrators has no legal force: there /,
no power TO compel either party 10 &c
cept II; but Il Is noticeable that ~.
decision OF these arbitrator has nevel
yet failed OF acceptance.
Gould InauguTate Probe.
Any road which desired consideratioy
nf . 81
thus liable TO be called upon by tia In
terstate Commission for details con
corning its finances and financial mast
ana the commission understands tina
the utmost employment Of its powers t,
Investigate and inquire viii be view e,
with satisfaction by the AdminIstra
ton.
The Louisville and Nashville and 1T
lantio Coast Line roads were under
STOOD 70 be the ones agreed upon Il
initiate a wage reduction in the South
Competing lines would follow, with tn
explanation that as competitors they
could not pay more than these roads
The Southern Railway has already Sc
proceedings on foot TO reach, If posi-
bic, an agreement with employees on
reduced scale. The Great Western wa
/ to lead the movement in the Midi,
West, and there likewise other road
would claim TO be forced to meet TIT
competition.
As a result OF the Presidents actor
| IL IS expected that the issue will b,
postponed; but the case Of the Southern
Railway which is to be made up soon
will be q strong one IN favor Of wag,
reduction, and il is by no means IN
likely that arbitration viii result Il
agreement that reduction IS necessar!
in order TO avoid a financial orisis il
the roads affairs. If this RED uction 4
allowed, others viii follow. There 4
no proposal 10 enforce payment o
higher wages than conditions permit
but simply TO make certain that reduc
lions are not ordered recklessly, or ex
cent as a last resort