The Washington herald., 1916-09-04
Freight Rates and Living Costs.

cate that only labor unions and Democrats
blinded by partisanship approve Of President
Wilson's method of preventing the railroad
strike. There seems to be widespread belief
that Mr.. Wilson confronted by the most
difficult problem of his administration, but this
belief has not served to lessen the criticism of
his action. Many hold the opinion that Con-
gress bungled in its treatment of the Presi-
dents plan.
There is doubt that the problem yet re-
mains to be solved. Congress has passed law
granting the trainmen the eight-hour day. but
the law will not operate to establish the eight
hour day. The law however, will give the train
men an increase of about IS per cent in wages.
The real purpose of the law not to grant
the eight-hour day wage increase. The real
purpose was to prevent railroad strike.
If the Supreme Court of the United States
holds that the law is unconstitutional-and many
declare that it is-the situation will be almost
identical with the situation prior to the time
that President Wilson interviewed between the
railroad and their employees If the law is held
to be constitutional the nation must face one Of
the greatest economic upheavals in its history.
1t will be months before opinion from
the Supreme Court may be expected. These will
be months of uncertainty and worry. The whole
nation will be deeply concerned. 1t probably is
no exaggeration now to say that no man can
accurately predict what may be expected. Pres-
dent Wilson may have a definite plan of action,
but Congress has shown it is not always willing
to follow the plans that he lays down.
There is no doubt that Congress has gone
just far enough to make more legislation abso-
lutely necessary, and if statements from railroad
heads are to be credited the fight has only be-
gun. The men at the heads of our vast systems
of transportation show in their public utter
ances that they feel they have been treated very
unfairly, and in some of their statements may be
dscerned a determination to make the fight a
fight to the finish. The trainmen have been
guaranteed a rs per cent raise in wages but
the railroads have been guaranteed nothing ex-
cept an inquiry into the effects OF the wage in
crease.
1t seems almost inconceivable that the gov
eminent should have allowed itself to be caught
in the trap in which it found itself Months
and months ago the probability Of a strike loom
ed up, but the men in Congress sat still and
allowed the cloud to grow darker and darker
without making a move for protection. In self
defense, some members of Congress may say
they had believed the President could handle
the situation if real danger threatened
Now Congress we'll knows what the danger
is. The real strength Of the trainmen has been
revealed. 1t is the duty OF Congress to enact
legislation that will protect the nation for all
time against such danger.
One of the pledges OF the party in power
was to reduce the cost of living Since Mr. Viii
son has been in the White House the cost has
slowly but surely crept higher The action of
Congress in granting the trainmen the wage
increase is certain to do more to raise the cost
OF living that any act during this administration
The railroads annually pay the trainmen about
S4oo,oooooo. The wage increase granted is about
one-tourth Of that sum, according to conserva-
tive estmators. The railroads must get the
money to pay the additional wages by increasing
freight rates. Experience has shown that where
a penny is added to freight charges on foods
three pennies generally are added to the price
that the consumer must pay And this addi-
tIonal cost to the consumer follows on every
thing on which freight charges are raised 1t is
estimated that the higher freight charges on
shoes probably will increase the retail price Of
pair of shoes Is cents
When the people feel this jump in the cost
OF living and fully understand the cause there
IS likely to be a protest that cannot be ignored
1t Is all right to shout for peace at anv price
but when the time comes to pay a very high
price different words may be found in the chorus
The increased cost of living will not only fall
on the trainmen who forced the issue but on
other railroad employees and on all classes of
working people.
1t will be remembered that Wall Street did
not appear much worried because OF the strike
threat But now Wall Street is worried The
men there are looking ahead and they sec real
danger. Some of them declare they forcsce a
readjustment in practically all industries in this
country. What the effect of the readjustment
will be is big question
Capital has seen the prifciple of arbitration
discarded, only temporarily, perhaps, but with
out doubt discarded. Capital had been relying on
arbitration in the hope of treating with labor
Capital now waits to see the principle of arbitra-
ton restored to its former level