The Washington herald., 1914-03-28
THE RAILWAY SITUATION.

And now watch the hubbub that viii
be raised by the administration. by labor
and by the public.
Out of every 50 the railroads earn they
pay back approximately Sc to labor.
Therefore, when retrenchment Is forced.
labor must necessarily bear its share of
the painful process. And since wages
cannot be cut. the Alternatives reduc-
ton in the number OF workers-has to be
resorted to.
The Pennsylvania Railroad is to lay OF
total of 5000 men, according to last
nights dispatches. And a still larger
number are to go on short time. The
same system has begun to lop on trains
here and there. a method of economy
that will probably be carried a good
deal further. Incidentally. the directors
have just reduced both, the common and
preferred dividends of an important sub
sidiary. entailing, in addition to a loss
of income to Individual stockholders. a
substantial loss to the parent company's .
treasury.
Pennsylvania example is certain to be
followed by other roads. Indeed. one line
some time ago thinned 5000 men from
its ranks and Will, ] understand. let
others go as work under way is COM
pleted.
How will wholesale dismissals of rail-
way employees and psrt-pay for thousands
status?
And what effect upon the public mind
is the abolition Of many passenger trains
to have?
The railroads must cut their suits sc-
cording to their cloth. Orticial statistics
issued yesterday show that. for the
several months to February /. operating
income decreased over Is per cent per
mile The shrinkage in January was more
than 5 per cent But taxes, OF course,
instead OF falling. rose 10 per cent. q
feature of the railroad situation that Is
creating increasing uneasiness-
Under such circumstances, and forbid
den by the Interstate Commerce Commis-
sion to recoup themselves by adding the
slightest fraction to either freight or
to do? To whom can, they turn? So
far the Interstate Commission has swat
ted them IN season and out of season.
State railroad commissions, taking their
cue from the Federal body. have shown
scant sympathy with the railroads in
their. multiplying difficulties. And as for
State legislatures, nothing has been too
harsh or too foolish for them to under
take in the way OF harassing trsnsporta-
ton companies. Laws throwing grave
additionaI-and wholly unwarranted-bur-
dens upon the already bent backs of the
railroads have been passed with accla-
nation. A sure shortcut to popularity
has been TO jump on top of the railroads
and pummel them numerically.
But now that the day OF reckoning is
find they have been picking a rod for
their own unprotected backs.
Voters who find a favorite train has
been withdrawn will not be in a pleasant
frame Of mind. They will want to know
the reason why their comfort and con-
NenlenCe nave Deen sdCrlnCeO.
The railway employe who finds himself
without job will also have time and in
clination to do some frst-hand investi-
eating of the why and the wherefore Of
his discharge.
The railroads cannot show the same
airy contempt for deficits that the Fed
eral government can. The nations bal
ance sheet has not balanced this year
1t Is SO much easier to recommend medi-
cine than to take 1t. The government can
barrel extravaganza without fear of con-
sequences, since 1t has a patient and
submissive lot of taxpayers to fall back
upon. The taxpayers have to dance to
whatever tune the politicians care to
play, but investors are under no obliga-
ton to continue to hand over their earn
ings to the railroads. Even governments
cannot coerce an unwilling investor to
invest a single dollar.
For my part I am hopeful that condi-
tions will shortly warrant a cessation of
railroad retrenchment. at least wagewise
The latest intimations are that certain
important commodities will be excluded
from the rate increase to be granted the
Eastern roads, care being taken to ben
eft the weaker companies as much as
possible.
The whole railroad position is SO full
Of uncertainty that it behooyes every
man in authority to bestir himself to
remedy it without one days avoidable
delay.
Every man laid of by the railroads
means less work for iron and steel COM
panies and for the whole chain Of con-
Germs that are linked TO the welfare of
the railroads-one of them. the Railway
Steel Spring Company. failed to declare
its dividend yesterday. and unless the
current tendency is checked, others will
be obliged to disappoint those who have
had faith enough in their country to in
vest their savings in its business or
ganizations.