Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-02-26
ROADS IN DANCER
NAGEL DECLARES

the one hand and Of powerful labor or
CARNATIONS on the other, was stated
today by Charles Nagel. formerly sec
rotary OF commerce and labor and now
a member of the federal board Of arbi-
tration which Will decide the demands
OF engineers and fremen on
western railways for wage in
crease which would add almost
S4l 200. 600 TO the yearly operating ex-
1 penses Of the western roads. Mr..
/ Nagel's statement came during a con-
troversy which arose when Grand
/ Chief Warren S. Stone of the engi-
neers' brotherhood raised the ques-
ton of the proper compensation Of
capital and labor.
rs IL not a question today" said
Mr.. Nagel. whether we are not over
/ regulating and placing too much conf
dence in the mere making of rules?
There IS some question whether the
railways are not suffering from the
multitude OF authorities attempting to
Z regulate them. This is at one end and
the powerful labor organizations are
working at the other. and these same
organizations are working in the legis-
latures advocating adverse legisla-
ton"
Grand Chief Stone had asked \. W.
Trenholm. general manager of the
Omaha road. II he thought the mems
demands would have been larger il
made on another basis than they are.
81 do not see how YOU could ask for
very much more than YOU have re-
piled Mr Trenholm. unless you want
us 20 turn tle railways over TO you. !
don't own a railroad and haven't any
interest iu one I am an employee and
am looking az it from what 7 honestly
believe 90 be the interests Of the rail-
ways and the men. I don't believe any
business can go beyond its proper
sphere in paving wages or anything
else.
10 has got 90 be- fairly adjusted as
90 what labor rs entitled TO and what
capital should receive. When labor
gets beyond what Is equitable and
robs someone else. whether other
labor or capital . think they are in
iuriur rhemsClye=
Capital viii not enter business UNI
less 90 can get proper return. II is .
no kindness 90 labor 90 20 beyond what /
fs proper. for 30 viii feel the reaction /
Nr. Stone asked what the witness /
considered fair return on capital, 10 /.
which he replied that somewhere about .
g or : per cent was considered fair.
That does not guarantee they viii .
always get this continued Mr. Tren
holm. Capital has to take the risks.
all the possibilities and chances"
DO YOU mean 9 or per cent in q
profitable year or all years. asked
Mr. Naeel
a reasonable return year by year.
replied the witness.
Then 70 IS not the rate so much as
the security" asked Mr.. Nagel
THAT is So" said Mr.. Trenholm.
There is no guarantee to the stock
holder OF the railway. In hard times
the employee gets about the same
wages. for wages seldom 20 down in
this country. II might be even pos
sible TO interest capital at . or 4 per
cent If that were certain"
But 81 is the uncertainty Of the
venture that makes capital timid?"
asked Mr.. Nagel.
Yes" replied the witness. THAT
IS due TO "a variety of things. I hope
here viii be a solution Of the rights
Of capital and labor and it has got 10
be along the lines of equity. Labor Is
entitled 10 fair compensation and CAPT
al TO a fair and reasonable return,
otherwise there would be no invest
nent. 1 would not and no one else
would put money into an enterprise
when everything tends TO rob the in
7estor."
The question today suggested Mr..
Nagel. lis whether we have not put
,ur sole reliance on regulation instead
II counting on the enterprise itself.
Proper regulation is q good and neces-
'ary thing. but II IS question whether
We are not over regulating and plac-
ng too much confidence in the mere
making OF rules.
a certain fiexibility of earnings
hould be allowed If there is TO be
success. Too much regulation viii dis,
courage not only capital, but will dis
courage the enterprise and interest Of
he men competent 10 run our rail
Ways"
Mr.. Stone earlier had tried 20 show
hat increased train loads increase the
OF the railways. and the So
allied productive efficiency of the
men Mr.. Trenholm maintained the
,nly result was a saving in the hand
ing of the business at hand.
in this western country" said he.
II II had not been for the money put
nto railways for reduction OF grades.
elimination OF curves. increasing car
and larger engines able TO
handle greater tonnage. / think rs
Der cent OF the western roads would
have been bankrupt. The roads could
lot live under conditions of Is or 20
Hears ago. The little engine. little car
md little train load could not exist
Under the pressure that has been
On the railways to reduce rates and
make improvements required by state
md federal laws. IL ii had not been
or the resourcefulness OF railroad
men. bringing to bear every possible
means OF curtailing expenses. / think
am safe in saying 70 or so per cent
" The rOadE to-day rx-ofrII -