Evening journal., 1910-01-12
CRISIS APPROACHES
in RAILWA WORLD
Cost Of Living Threatens to
Cause Strike if Wages Are
Not Increased
SITUATION WORRIES
PRESIDENT Aft

WASHINGTON. Jan. 12-The cost OF
living question has caused a situation in
the railway world that Is rapidly nearing
a crisis. It Is critical alike for the rail-
road employees, who feel they cannot 1.-Two
on what they are getting, and for the pub
lie, which is threatened with the burden
Of increased freight rates. IL Is trouble
some to the railway managers, who fear
that their employees will strike unless
given more pay. and who maintain that
IL they grant higher wages TO their men
1t will be necessary TO raise freight rates.
on the other hand. there are symptoms
that the public will resist bitterly any
movement for general increase In rates.
This month Is likely 20 see important
developments IN tho railroad wage and
rate situation. Tho Interstate Commerce
Commission Is apprlsed of the situation,
and Il Is giving the Commissioners no
little concern. President TAFT ia aware OF
tho difficult pass 70 which matters have
come and there is good reason to believe
tho Administration is not little appre-
hensive over Il.
Many Contracts Expire.
Tho next few weeks Is likely TO settle
tho more immediate course OF things as
TO railroad wages for the reason that
on January 20. many Of the contracts
OF railroad men with the railroad COM
panies expire. Other contracts as to
wages will expire later IN the year The
railroad companies have been strongly
urged by their employees TO allow them
more wages on the renewal Of contracts
on the ground that the cost Of living
has so increased they cannot support
their families The reply OF the roads
is that they must increase freight rates
II they are 20 increase wages.
For the present the matter Is In the
situation described. A railroad strike OF
large proportions may grow out OF It or
there may be arbitration. IL Is we'll un-
derstood in official circles here that the
situation is difficult and hedged round
with danger. They hope, however. for ana
amcable adjustment. The President hopes
there will be no general strike and that
some peaceful solution will be reached.
Railroad Wages.
The situation as 10 railroad wages,
moreover IS intimately connected with
the proposed strengthening Of the rail-
road regulation laws. If the railroads
attempt to make a general rate increase,
there will be a fight against such increase
by the public II Congress puts through
the additional railroad legislation which
has been proposed In the message Of the
President. the Commission viii have au-
thority TO cheek rate advance. either on
complaint of shippers or on is own mo.
ton
II there IS arbitration over the wage
question. It will be under tho Erdman
act. and Chairman Knapp OF the Inter
state Commerce Commission and Labor
Commissioner Neln will be the Federal Of
ncials who will do the adjusting. A strike
has been on IN the Northwest for several
weeks. and one has been threatened on
railroads entering Chicago. Chairman
Knapp and Commissioner OF Labor Nell
viii endeavor TO compose tho Chicago
difficulty and hope for an adjustment Of
the trouble I'm the Northwest. But they
are more concerned over the prospects for
a great general strike and over the nation
wide problem presented by the demands
Of the employees for more wages, and the
position taken by railroad managers,
such, for instance. as President w. G.
Brown Of the New York Central, who has
notified the employees Of that system that
unless the Government allows rates 90
20 up wages cannot be increased. Tho
railroad managers realize the public Is
already complaining Of freight rates In
many cases and is in a mood TO object
to Increases They doubt, moreover, II the
Interstate Commerce Commission will al
low rates to be showed Up.
Taft Depends on Knapp.
II there Is an adjustment OF the situa-
tion so as TO prevent widespread trouble,
It will probably largely depend n Chair
man Knapp and Labor Commissioner
Neil. The Administration Is depending on
them. The situation is expected TO present
Itself about like this. Formal notice will
be given by the railroad employees that
they must have more wages. The man
ayers will reply that present earnings do
not justify an increase. Then the rail-
road employees will present the alternative
Of a strike or a submission Of their
troubles TO arbitration. It IS hoped by tho
officials that arbitration win result and
that there will be found some way OF
adjustment.
In many quarters there is a feeling that
the roads could stand a moderate increase
in wages without putting up rates, and
that the wage situation is recognized by
the railroad managers as an opportunity
for higher rates which they do not like TO
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