The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-02
Railroad Rates and Wage Charges.

In the extension OF time arranged
a month ago for consideration Of the
demands made by the four leading
railroad labor unions on the railroads
Of the country there was an implicit
probability that an understanding
would be reached preliminary tn the
conferences now begun here between
representatives Of the unions and the
railway arrangements. Accordingly
It Is likely that the danger Of any
thing resembling n general strike In
the event Of failure Of conference
agreement can he dismissed from the
public mind.
Another implicit probability in the
preliminaries to these important ron
~ferences Is that there will be no re-
SOFT TO arbitration TO compound the
differences between the railways and
the labor unions. whose demand Is
substantially for an increase of wages
in the guise Of n demand for an eight
hour day instead Of the present day
which has become the railroad stand
ard and TO which all operating condi.
tions have been adjusted. The labor
leaders have inveighed against nrbi.
tration, although in recent years II
has customarily ended In material
awards to labor. Just why arbitra-
ton is now so much In disfavor with
the unions Is not obvious. Infercn-
TALLY their opposition to the sugges-
ton Of 1t assume the likelihood that
an arbitration tribunal would, in the
course Of its inquiry. find that public
regulation Of railway rates was In.
u%nregulated wages.
Yet the interest Of the freight pay
ing public In the railway labor con-
trOversy Is 40 great, and so much at
tention has been intelligently directed
to It, that 1t Is doubtful II the unions
can prevent the dispute from adding
to the evidence In support of a public
movement for railroad wage regula.
ton. This Is the first time that the
unions have demanded n collective
bargain Of the railroads on a nation
wide basis. From the standpoint Of
the unions the employees might we'll
content themselves with little or no
concession by the employers relative
TO wages or working hours, II the
unions gain from the railroads the
precedent of a treatment of their de-
mands on the national scale. But this
precedent itself will emphasize the
disparity between the public rcgula-
ton Of railroad rates for public ser
vice AND unregnlated wages. the larg-
est item in railroad expenses.
The wages of railroad labor are the
prior fixed charges which the rail
roads have to meet before taking care
Of fixed charges on capital invested.
All the statistics Of railroad bank
ruptcy go to show that the principal
factor In accelerating insolvency Is
the accumulation Of fixed charges.
Under public regulation rates have
tended to become rigid and unrespon-
sive to the requirements of the rail
roads for earnings. What the rail-
way labor unions may do much to
prove In the controversy now pending
Is that the Interstate Commerce Com
mission should have the power Ia
COrrelate railroad rates with charges
fixed In the form Of wages. The rail.
road regulators have been all but
vested with authority to regulate
fixed charges through tho regulation
Of railroad securities ms auxiliary Ia
the process Of regulating rates, Fixed
charge wages cannot he long left out
Of the reckoning.