The sun., 1912-07-27
LABOR UNIONS POWER
OVER THE RAILROADS
Erie's Vice President Tells
What the Roads Must
Contend With.
"GRAVE CRISIS" AT HAND
Head Of p. X. X. Gives His View
as to What Increase Of
Wages Would Mean.
"GRAVE CRISIS" AT HAND

| Nice-prcsident ]. T.. Stuart OF the Erie
Railroad put before the Straus arbltra-
ton board at the Oriental Hotel, Man
haitian Beach. yesterday, "a picture Of
what he considered the grave crisis that
Is confronting the country for the rea-
son that organized labor has an un-
trammeled power which makes 1t a dan
gerous force In the face Of the railroads
which are hcmmed in on all sides by
Federal and State legislation.
James McCrea, president of the Penn.
! sylvania. also took the stand and dealt
with the situation that in his belief
would result II the engineers were to
get the Increase they demand.
in the last five years the employees
OF tho company represent have voted
Ave times TO strike" said Mr.. Stuart.
The leader in charge claimed that he
had the power to block the highways Of
This country and expressed his intention
to exercise It. To appreciate the gravity
| OF the situation imagine any other In
dividual-president OF a railroad or its
Notwithstanding to stop the public
highways for any reason and deprive
| necessaries Of life.
lHc Dtst ttsl VI tIlcH poWeE bs IOI
the general public to attempt to pass a
Federal law to place responsibility upon
organized labor engaged In interstate
traffic.
"A president Of a strong labor orGani-
| zation who requested within a year a
| substantial increase was asked by the
committee whether or not he had con-
| sidered the ability Of the railroads to
pay and where the money was to come
from. He replied that he was not a
| financier and really did not know. and
yet he had the power to stop the wheels
on every railroad in the United States"
Mr.. Stuart said that as far as the prob
lem affected the Erie. u the engineers
got their demands and the other classes
! Of labor got their corresponding increases
the Erie and the lines which It operated
would be annually 81 ,OO0. .8S4 behind it's
fixed charges. He said that he meant
by fixed charges the amount necessary
to preserve the integrity Of the railroad
and TO keep it from .s goins .i into the hands and
ss42 QUO would fall upon the Erie. Si4o. .<O2
upon the New York. Susquehanna and
Western and S6s. ~: upon the New Jersey
and New York.
Would that be new experience for
the Erie Railroad?" asked Commissioner
Morrissey.
.The ii~t time in my experience
said Mr.. Stuart
Il think the commission have before
them certain questions which are fixed
and on which decisions have 10 be made.
IA id President McCrea Of the Pennsylvania.
they should go further. They are entirely
able to do IT, and the country and those
that are Interested are expecting that
the situation as whole be treated very
fully.
the additional capital required to make
improvements that the public demand
and which the necessities 0f giving proper
TRANSPORTATION rcquirep There have been
a number Of ways in which the demands
have been met heretofore. Maturing
indebte tedness has been met by Issues OF
new indebtedness at lower rates and
the differences have been saved. That
day IL past, "a far as Va can see We
have this year 0O00 900 worth OF bonds
falling due on which We are paying 81
per cent They cannot be renewed under
per cent. and in 1918 there ars SIS 900 GOD
Of 81 per cents. coming due In the same
1The cost Of living has gone up to the
investor just as il has to the other people,
and he feels the same necessity for al
increased income that those whose income
has reached this condition that II an
advance in wages takes place we must
receive advances in rates or have some
compensation or some way OF rccouping
ourselves. In the latest decision Of the
Interstate Coinmercs Commission, In
the Language that was used. We are not
encouraged to feel that We arc going to
get that. ] merely want u impress you
with the fact that the railroad companies
under present conditions cannot stand
an increase in their costa Of operation
without compensation in some form"
James A. McCrea. who In general man.
ager OF the Long Island preceded his
father on the stand. He said that his road
showed "a yearly deficit and that II cer-
taiuly could not stand an increase of wages
The first witness was j. II. Smith OF
IN. Coal and Coke Railroad. He aaid
thai he had been forced ~ grant increaKes
OF ~ per cent. 10 labor in tho last two
ycars and that the present rate would
mean 50 J,er cent more and would swamp
the company.
1T would make Get Rich Quick Wal
lingford green with envy 10 sass the way
they manipulate figures on that road"
vcntured Mr.. Stone, tho engineers rep
r.saH;ativc. IL you gentlemen vii,
take thess. figures home they will make
an interusting winter night q reading"
u. u. Robbins. general counsel for the
New York. New Haven and Hartford.
.as... A... L.. n.