Evening journal., 1916-04-20

the European war. Wages once ad-
vanced cannot ordinarily be reduced,
and any increase in wages made by
the roads at the present time would
become fixed charge upon their fu-
ture operation.
A story of the recent reports Of the
railway systems shows conclusively
that the roads should not be called
upon to shoulder the increased bur
den that would result from accepting
the present demands, whether the
amount be S10O.00O,0O0 a year or half
that sum, unless they can be allowed
to increase their income by raising
their rates for service. But the con-
troll of their income is a matter that
has been taken out of their hands, and
concerning which they have little to
say
1t rests with the Interstate Commerce
Commission and with the numerous
state commissions. Obviously the
roads cannot predicate an advance of
wages upon the possibility that they
may be allowed to make a correspond
ing advance in rates. It is recognized
in every industry that peak earnings,
such as the railroads are now making,
do not justify an increase in wages
any more than abnormally low earn
ings over a temporary period justify
their decrease. The railroads have
not attempted to lower wages during
the protracted period of depression of
the past few years, but have sought
by every other possible economy to
reduce their expenses.
The charge is sometimes made that
the present financial predicament OF
the railroads is due, not to advancing
wages, and other costs of operation.
but to financial mismanagement and
over-capitalization. Every allegation
Of this sort that has been advanced
has been fully exploited in the press
for many years past, and has been
brought to the attention of the Inter
state Commerce Commission. BY its
action in the Five Per Cent case. al
ready referred to. the Commission vir-
tually discredited these claims so far
as the great majority of the roads are
concerned.
At the present time a valuation of
the railway lines of the country is in
progress under the direction Of the
Interstate Commerce Commission. So
far as it has been completed it shows
an actual value greater than the cap
italization Of the roads. When the
task OF valuation has been carried
through, It undoubtedly will show that
this applies to the railroads of the
country as whole.
The truth of the matter is that. eX-
cept for rigid and far-reaching oper-
ating economies applied to everything
except wages. it would have been i'm
possible for the railroads of the coun-
try. even those that are strongest fl
nancially. to maintain dividends or
keep out of receiverships up to the
present time. Needed improvements,
extensions and terminal developments
have been sacrificed and much proper
maintenance work deferred to achieve
I this result. To impose an added bur-
den of tens of millions OF dollars a
year upon the railroads at this time in
the interest of small percentage Of
the workers. and those the best paid
and most favored as to working con-
ditions of all the men employed upon
the railways. would be to sacrifice to
| this small minority the interests of
the owners Of the railroads. of more
than so per cent. of the employees and
of the public at large
ELISHA LEE,
Chairman Conference Committee OF
] Managers, Eastern Railways.