Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-01
MAY AVOID STRIKES
Wall Street Considers Railroad
Peace Plan important.
VICTORY FOR COMPANIES
Increase in Wages Not Considered
High Price to Pay.
TIGHT MONEY HURTS SALES
Has Been Dead Weight on Market
Enthusiasm for Several Weeks
and May Continue.
VICTORY FOR COMPANIES
TIGHT MONEY HURTS SALES
BY w. G. NICHOLAS.

1
was the report of the special commission
appointed to settle the dispute between
eastern railroads and their engineers. The
adjustment of the wage demands was
dwarfed into insignifcance by the larger
issue brought to the front-a plan for
permanent peace between capital and la
Dor employed in the conduct of general
utilities. the country over. AS yet the
suggestion from this impressive quarter
has had small stock market effect, but as
| a powerful instrument for lasting har-
mony in the management of the chain
| of colossal industries it must eventually
be for the general enhancement of the
value of properties represented by bill
lions of capital and millions Of working
men. The report of the arbitration COM
mission is regarded by railroads as dis
| tinct victory. The increase in wages is
not high price to pay for the weapon
| or defense fashioned and placed in their
| hands-the proposition to create federal
and state wage commissions with arbi-
| trary powers to make and enforce terms
of settlement of disputes. The essence of
the report is it's unqualified stand that
the public Is paramount factor at in
terest In such controversies and that it
must be considered first-tha. both rail-
roads and their employees are servants of
| the public, not it's masters. The appli-
cation of this principe extends to all
pubic utilities corporations, and logically
trolley systems, as we'll as gas, electric
and water cOmpanes-all companies
whose creation and existence are by IA
vor OF the public for whose convenience
| and service they were called into being.
In accepting franchises. comforting upon
| them the right to do business. these COM
panies go under pledge to give value re-
| ceived.
Railroads for years lorded it over the
public, but were finally brought to see
| the error OF their ways Organized labor
fought the railroads to a standstill and
now that the railroads have their hands
| tied by regularly constituted commits
| sions the employees are charged with
showing disposition to play the tyrant.
Throughout the entire struggle the rights
! of the public have been ignored or sub
| ordinated-''The public be damned" as the
| late Mr.. William H. Vanderbilt said.
| The damned master is slowly coming
around to a realization Of his rights and
| of his power to enforce them. Having
| brought the railroads to terms, 1t now re-
mains to bring organized labor employed
as an inseparable part of the utilities
| systems to terms.
Report an Entering Wedge.
| Organized labor has seen and felt this
danger and realizes that the report of
the arbitration commission is an entering
| wedge to discussion and action on an is
sue it would like to delay or dodge. The
| issue is not new one, but this is the
first time the railroads have been able to
| get 1t before the law-making powers as
! an authorized expression of a body claim
| ing to represent the public. The five out
side commissioners felt a keen sense OF
| the duty they owed the public in this in
| vestigation by refusing compensation for
| their 1--WE months of service on the board,
| . ,;tyl1< t~1
100000 apiece. This action is added
dignity and impressiveness to the find
| ing.
| The report of the wage commission is
| at once club and wedge, and Or
ganized labor identified with the utilities
systems will be slow to give employers a
chance to invoke popular sympathy and
| cooperation for suppression of violent
| methods. The threat of Mr.. Stone during
| the acute stages of the earlier negotia-
| lions by him on behalf of the engineers
| to starve out 4OOOO.OOO people if the de-
| mands were not granted Is not likely to
, be again repeated. The full import of
! the findings of the commission will be
| better understood by the general public
and by spectators and investors as time
| goes on Both the railroad men and
leaders of organized labor do not have to
wait. They have already fully grasped
! its significance. 1t is the first impressive
move to secure legislation placing capital
and organized labor on an equality.
| Tyranny by railroads has been stopped
| through governmental action. In self
defense. capital has organized a nation
| wide movement to place organized labor
| under corresponding restrictions. Labor
| leaders will fight this move as matter
| of self representation. If 1t carries they
will be out of jobs and have to go to
work for a living. Already the report
| is being denounced as an incipient con-
| spiracy for the enslavement of labor.
Tight Money a Dead WEIGHT.
Tight money has been dead weight
on stock market enthusiasm for several
| weeks and it may remain so for some
time to come-possibly until after the
| turn of the year. Under some circum-
stances money scarcity and high interest
rates would be good grounds for feeling
panicky. In this case, however, 1t is t
the reverse. We are suffering from an
embarrassment Of riches. 1t takes the
bulk Of the spare money of the banks and
trust companies to finance the enormous
crops that have been raised and to lay
for their transportation from producer to
consumer. No such drain has ever been
made before upon the banking resources
account has deprived Wall street of the
money required to carry on the bull cam
paign which everybody expects. kelaxa-
ton can hardly be looked for until after
the grand distribution of interest and
dividends on and about the 1st of Janu-
airy. To meet this demand the banks and
trust companies of New York will have
to gather together more than $20O,OOO, 600
Europe and Great Britain owe this
country great sum of money for cotton
foodstuffs and other commodities bought
and shipped during the past three or four
months. Most Of this amount remains
on the other side to American credit 1t
might be drawn down Immediately, but
to do so would be to force wholesale
liquidation of our securities by foreign
holders-a bad move under the circum-
stances. Hence it Is the policy Of our bank
ers to struggle along on home resources
even though they are obliged TO assess bor-
rowers high rates of interest. 1t grieves
bankers to the heart to get more than
& per cent for their money. but they are
a steady class and seem able to endure
the distress. Cynics do not hesitate to
say that in their opinion the banks are
putting on the screws with unnecessary
severity and that the stringency com
planned of at the present writing due
to a considerable extent to the machna-
tons of the lenders. This kind of talk
shows a shocking lack of respect for
the money kings.
Confusing News Fills Street.
A confusing lot of news has filled Wall
street with regard to the developments
Of the Bulgan-Turksh war. One set of