New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-08
The Railroad Crisis

he new wage uemdNOS OI luc bIOIhSi
hoods will force crisis in the relations be-
tween the government and the railroads.
A year ago, when the b-otherhoods In
iected themselves into the Presidential
campaign by making similar demands, con-
cealed under plea for an eight-hour work
ing day, the government ducked and
lodged. By a skilful confusion of issues 1t
escaped politically unchanged from a
situation which called for clear definition
of policy and the courageous acceptance of
an unpleasant responsibility.
Responsibility should accompany power.
The government controls the earning
power Of the railroads. The carriers are
able TO pay interest, dividends, wages,
operating and maintenance charges only
In so far as the Interstate Commerce Com
mission, a government agency, permits
them 70 do so. But, though vigorously
limiting their revenue, the government has
failed to give them any help in limiting
their expenditure. II has itself imposed
increased taxes on them and compelled
them in other ways to add to the costs OF
operation 1t has participated in wage ar
bitrations, in which the roads were always
and necessarily-the losers. Yet 1t has
never admitted its moral responsibility TO
compensate the carriers by higher freight
rates for the additional charges which 1t
has either itself saddled on them or has
abetted others IN saddling on them. Last
year Congress voted the railroad brother
hoods a big increase IN wages, but lacked
fhe fairness to direct the Interstate Com
MERGE Commission 10 provide the carriers
equivalent additional revenue. Economic
control Of the railroads was asserted, so
far as wage increases were concerned, but
was disclaimed when it came 70 authoriz-
ing rate advances out of which to create
the new wage fund
The government should have accepted
hong ago the full Implications of Its regu-
lative role If it fixes rates it ought also
10 fix wages II II VIII not give the roads
a free hand in dealing with the shippers
II ought to protect the roads against ex-
penditures forced on them through the de-
nands of their employees. All rearrange-
nents of wage scales should be passed on,
In the first instance, by the Interstate
Commerce Commission, since 1t is just as
desirable to have the reasonableness OF a
railroad wage fund established by tri-
bunal representing the public as it Is to
have the reasonableness of freight and
passenger rates established. Rates and
wages are factors of equal importance IN
the maintenance Of fair balance between
railroad charges and railroad service.
This proposition holds good even for the
ordinary, peace-time regulation of trans
portation. II may be ignored then by
government reluctant to assume tasks
which it finds more convenient to slight
But in war time such easy-going avoid
ance becomes impossible. Transportation
is now a complete government monopoly.
The railroads have become a military in
strumentality Of the first Importance. The
government has rightly interviewed in
every detail of transportation. 1t has dis
placed the railroad executives all along
the line, and it must be the judge, and the
sole Judge, Of the propriety of all read
iustments in the railroad wage scale.
1t would be a farce TO permit the
brotherhoods Of employees TO go through
the oldtime motions Of presenting their
wage demands 10 the railroad managers.
The government is the manager to-day Of
all our railroads. The owners Of these
properties are now going before the Inter
state Commerce Commission with an APP
peal for higher freight rates, urgently
needed 20 sustain railroad credit and to
provide new facilities. The employees or
the roads ought 20 90 before the same body
with their petition and accept the commits
sion's judgment as final, as the railroads
owners will have 70 do.
The brotherhoods know that they are
following a false trail in seeking relief
n direct from the railroad managers. The
managers possess no real economic con-
trol over the properties which they admin
lister. That control has passed 10 the gov
eminent We're private ownership still
recognized in fact as we'll as in form, the
railroads would have no great difficulty in
meeting the pressure for higher wages
They would pass the charge along 10 the
public, as every other big industry does
But they have no power 20 pass anything
along The government has stripped them
Of economic independence They have no
revenue with which 70 pay higher wages.
and can get no additional revenue Of any
sort except by the grace Of the Interstate