Daily capital journal. (Salem, Oregon) 1903-1919, 1916-09-01
Railroad Side of Issue
Set Forth By Financier

New York. Aug. 26-The railroad dis
pute, it is to be hoped, is close upon ad
Justment. The president has undertaken
to settle the dispute according to his
best judgment, although il would have
been better, in the opinion of many
disinterested persons, had the question
been first submitted to arbitration, thus
avoiding prejudgment without evidence
and facilitating the creation of pub
lie CONTROVERSY there are many import
ant interests involved other than those
of the men who initiated the move.
ment. Many thousands of railroad EN-.
ployes would be adversely affected by
a strike; the public would be sorely in
convenienced; many industries would be
paralyzed, and thousands of innocent
investors seriously injured. In effect,
general strike would be a national
hold-up, and the verdict of the people
would certainly be "never again" Ev.
en- railroads have some rights. AT pres.
ent they are enjoying large gains in
both gross and net earnings but traffic
is abnormal and cannot continue per
manently at present volumne. Costs of
operation are increasing in all direc.
tions. Necessary improvements have
often been deferred; and in spite of
present prosperity the railroads have Sc.
rious problems ahead; especially certain
of the weaker systems, which under
any material increase Of expenditures
without compensation would fall into
bankruptcy. The question of meeting
growing costs Of operation is serious
one, unless the companies are allowed
al I,,,.
ness concern may do, by an increase of
pay for services rendered. Thus far
little has been heard from the hundreds
of thousands, nay, millions, of people
interested in railroads as shareholders
or bondholders. Such n list goes far
beyond the numDers Of direct investors,
and includes every financial institution,
their customers, their stockholders ev-
cry savings bank depositor, every life
and fire insurance poncyholder, as well
rs the numberless Institutions devoted
TO financial, commercial educational,
humanitarian ana other public purposes.
The great majority Of people ignorant.
ly suppohe that the railroads are owned
ly suppose that the railroads are owned
people appreciate either their wide dis.
tribution Of ownership through indirect
channels, or the disastrous consequences
that would fall upon the public by injur.
ing the railroads. There is no class of
investments so widely and so vitally
wrought into our innumerable national
activities and institutions as railroad
securities.
Advance inWages.
| must confess that to advance wages
20 per cent at one stroke In pretty steep
for the railroads to stand; for that is
what il means to reduce the working
day TO eight hours. IL il came about
by gradual installments covering vary.
ing period. it would be less difficult
for the railroads to meet. II occurs to
me that the situation calls for CORES.
ponding advance in railroad rates by
the interstate commerce commission.
Changes on both sides ought to be au.
tomato, the railroads agreeing. as fast
as the commission advances the rates.
TO lower the working hours In the same
ratio until an eight hour day Is reach.
ed. After that. should IL become neces.
sary to lessen the railroad rates, the
hours for labor should be increased nc.
cordingly. II appears to me this would
be q Just way OF meeting the present
labor VS.. railroad situation | throw
this out merely as suggestion to eauit.
ably adjust the matter between the rail.
roads and the unions. At any rate, let
il be tried until better plan can be
substituted.
For long period there has been a
strong speculative disposition in the
stock market based upon trade activity,