The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-08

TbtnN Pubitc u w TN Ihem'
The reason assigned 10y railroad men
rs w~arrdutiug their considering taking
an aggressive position for q reduction.
despit. the dangerous possibilities ~
strike and tieup on the Eastern lines.
Is The belief that public sentiment has
swung in favor OF the railroads and
would support a move TO reduce wages If
u is shown that tho reduction would
mean Increased Industrial activity
throughout the country through railroad
stimulation.
Another leading consideration 10 The
railroad executives j. that In every wage
dispute arbitrdted thus far the men have
taken the Initiative and have. won. The
railroad executives ar. thoroughly con-
WINGED. because Of the declarations Of
W. :. carter and Warren : stone. The
railroad employee leaders, that as soon
as the arbitration OF The present case or
the Western engineers is completed at
Chicago about the end OF April he
men will demand higher pay on the
ffty-two Eastern lines.
The Eastern railroads are aiming for
The strategic place in the arbitration
here. which. they think. is certain.
The railroads have onlS one big thing
30 fear under present conditions. and
that j. labor said a prominent rail-
y a executive, in speaking OF III" pos
eibility of a wage reduction. The In
terstate Commerce commission = no
longer the enemy OF the roads and their
prosperity. We have "A bill Of rights
from the commission in the decision Of
December. 1t H. labor ard It's constantly
Increasing demands that We have TO fear
and 10 face There f. the next rreat
conflict. If the public will understand
the situation and back the railroads IL
Keeping railroad compensation within
reasonable lines the issue is decided.
The public has TO pay In III" md.
II the public is willing to give railroad
employees a scale OF wages out Of pro-
portion with the ability f the roads 10
pay and out of proportion with the scale
Of other labor, because IL fears the
threats of tieup by the big brotherhoods,
the railroads are helpless. We railroad
officials are In thcs" days semi-public
servants and can do only that which the
public wills
Railroad presidents and bankers who
think that the wages OF railway EN-
ployees should be reduced point To die
disproportionate increase in wages in
recent years over advances N other
costs and to tine fact that the cost Of
labot il the largest single item of rail-
way operating expense.
The cost of labor takes nearly on"-
half f every dollar earned hy the rail-
roads Of the country. The compensation
o. employees Of t." railroads # -"
Eastern district in l9le took 10 p"r
cont. OF thoir gross -"yc0ue. ic", riding
to figures compiled from the returns
OF the Interstate Commerce Commission,
or s57I,t2a,o3l of a gross revenue OF
sl.2iA, O99,59O. Twelve years before
Ia bor's share was 395 per cent In 1913
employees compensation on the roads
OF the United states was s3.47 per cent.
OF the entire cost OF operation.
The average daily wage of enginemen
or the railroads OF the country has n
creased from 1915 in 1900 to 1924 in
1918, or 80 per cent. of the tremen
from s214 TO ,3.l6. or A. per cent
The increases to the men on the
Eastern roads was almost as much. ON
tho Eastern lines the average daily wage
of conductors. according to figures of
the Bureau of Railway Economics. adj
yanced 30 per cent. from s3.03 in 1909
20 san In 1912. and that Of other
trainmen So per cent, from sl.9j TO SO.
Returns To Capital shrink.
\ striking comparison with these adj
vance Is that afforded In the Teturis
on Investments of capital shown by the
Pennsylvania Railroad in 1914 as COM
pared with 1900. The Compan fourteen
years ago received $50 per cent. return
on the money invested Ia It's road and
equipment. Last year IL received 3.T3
per cent. Against the large increases
Obtained ny labor capital suffered a 43
per cent. loss.
Railroad heads say that the results Of
q continuation of high wages when in
come Is low are plainly apparent in the
failure Of the railroads to buy much
needed equipment and do much needed
repairs and improvements II TINS time,
despite the advance in rates. The Penn
sSlVhnia, which ordinarily buys more
than 10000 freight cars a wear, bought
none ia 1913 and has bought zone 50
far this year. The Baltimore and Ohio,
which requires 5000 to 1000 new cars
u year, bought none last year. 1, has
ordered 1000 cars this year But II is
believed that large purchases Of equip
mrnt will stop until conditions improve.
LaiSr's powerful influence in obtain
ing train length limitation legislation in
Indiana, q blow at railroad efficiency in
the opinion IT railroad operators, Is an
other evidence of "A condition that rail
road executives think must hc met. The
opinion. cllls for action IN the near fI-
tur' on labor and Wage questions, much
"a they d.plOre the possibility of added
disturbance IN the financial situation.