The Washington herald., 1916-09-16
Railroads and Prosperity.

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Newspapers and men who believe that Presi-
dent Wilson acted with wisdom and justice in
granting the trainmen an increase in pay point
ublsntly to the prosperity of the railroads as an
indication of the roads ability to pay higher
wages. One of the newspapers which apparently
has gone to the extreme limit of partisanship in
support of President Wilson is the New York
World This powerful newspaper says editorially
The net earnings of the principal railroads
of the country increased only 200 per cent
during the last fiscal year. The total net
revenue OF these roads was only SI,I7o,8 ,ooo
an increase over last year of only $3os,ooo,ooo
These are the railroads that are about to
be ruined by an eght-hour day which will
add to their operating expenses $oo,ooo,ooo
year. according to the railroad presidents, and
$2ooooooo a year according to the brother
hood chiefs.
Taking the railroad figures as basis,
eight-hour day would decrease the net reve-
nue. to a paltry $I,II68o4,ooo, which in turn
would be barely $245,oo9,ooo in excess of the
total net revenue of last year.
1t ought to be plain enough to anybody
that the railroads are sure to be ruined by an
eight-hour day. No wonder they appealed
to the unfortunate shippers to intervene and
prevent the government from pressing this
crown of thorns upon the brow OF Wall
Street. Such picture of railroad poverty and
destitution as the reports to the Interstate
Comerce Commission present ought to fur
nish a new inspiration to the Hughes elo-
quence.
There is no doubt that the railroads pros
porous. A common word used by railroad heads
in attempting to describe the enormous volume
of traffic flowing over their lines is "unprece
Il
such prosperity. The business of the nation ha
grown in leaps and bounds and the railroads ar,
reaping big profits
The figures made public by the Interstate
Commerce Commission and interpreted by thu
World seem to show that the roads able tC
pay the trainmen higher wages. But figures MAJ
be used to prove almost anything. Statistics arr
without doubt the most deceiving arguments ex
tant, and statistics in the hands of a skillful jug
gler may be made to tell lies.
1t is not difficult to recall conditions in thu
railroad world prior to the outbreak OF the Euro
pean war. The business OF the nation, mad
timid by the advent Of the Democratic admins
tration after years of Republican control, became
stagnant. Capital grew cautious and decided t.
wait and see what the Democrats would do.
In short, there was a serious business de
preston. 1t was registered by the railroads jus
as a thermometer registers temperature. Tn,
railroads. in fact, among the first to fee
the slack. The future of the roads loomed black
Then came the freight rate increase, grantee
by the Interstate Commerce Commission will
the sanction of society" Then came the wa
and American industries hummed as they hat
not hummed in years.
just the railroads first felt the depression
Of business, SO were they first to feel the boon
in business and the figures showing the biz
profits of the roads represent that period wherein
the pinnacle of prosperity was reached. Will
this prosperity continues the roads may be ab
to pay their trainmen few score of millions
more a year, but will the roads be able to con
tinue the higher wages when business recede
to normal level? Experts answer mo" ant
their answer makes another increase in freigh
rates seem inevitable.
The World seems to base its arguments OF
the theory that a corporation may justly b.
forced to raise its salary scale to any height
the corporation is earning enough to do so with
out going bankrupt This is but an extension
of the theory that it is all right to rob ricl
man, but this theory has been relegated to tn
junk heap long, long time.