Every evening, Wilmington daily commercial., 1918-06-25
TROLLEY COMP AN|ES
PRESENT NEED FOR
MORE REVENUES
Fare Increases Are Necessary to
Giving Higher Wages
to Employees.
AN INTERESTING HEARING
Special Dispatch from Every Evening 5
Washington Cores pondent

w aSnlnKtOn, June Zo---A mass Oh ue-
tail witch will have an important bearing
on the present trolley rate situation IN
Delaware is being adduced by testimony
of electric railways and employees coun-
sci before the National War Labor
Board. headed by ex-President William
Howard Taft and Frank p. Walsh
Some trolley magnates are endeavorlng
to so over the head of local and State
public utilities commissions so Tar rs TO
get the National War Labor Board to
recommend that the President exercise
his war powers to compel general raise
in trolley rates throughout the country.
They say this is necessary II the transit
companie are to be saved from insolvency
In the face OF mounting cost of operation
and upkeep, and demands for increased
wages from the employees. Sixty per
cent of their operating cost, according
TO the arguments advanced by John Nc
Carter of New Jersey, president Of the
war board of the American Electric
Railways Association, Is represented by
the wages paid to carmen
Carmen of Wilmington arc not directly
represented in the specific disputes be-
fore the board most Of which have been
brought by the demands Of the men for
higher wage, and for recognition of
their power to organize and to bargain
collectively. Only a small proportion,
If any, of the employees of the Wilmington
company are urionized. The fact that
the specific situation III Wilmington and
in Delaware is not before the board does
not, however. mean that the decision
which is to be handed down by MCssrS.
Taft and Walsh will not have Influence on
the situation in those localities. The doz-
en- or more particular claims which are up
for definite adjudication are considered
by the trolley owners and the employees
as we'll as being of the utmost Importance
in deciding the status which any present
or future claims for eith her wages or ad-
vanccd revenues through increased trolley
rates viii have
Mr.. McCartcr, IN putting the situation
clearly and fully before the board, YES
terday explained that he was not speak
ing for any one locality, but In general
for all the electric railways throughout
the country. This he was enabled 10 do
by the authority of the association which
he represents, and by the common con-
sent of counsel for number of individual
companies, all of whom are to be gwen
their part IN bringing out IN the strongest
possible manner the various aspects
OF the situation by which they are faced.
WILL URGE CoS1 CT LIVING.
The employees organizations will devote
their time to developing data with regard
to the cost of living, in an effort to bring
about a decision by the board which will
Tx the amount of living wage This
will be used by employees everywhere as
a basis from which TO proceed IN their
demands for wages 1t will also, bv
reason of its endorsement by the war
labor board give their demands an au-
thorltative character, which combined
with their power to organize and TO
bargain collectively, which has been
affirmed in general, Is expected TO make
quick and easy adjustment OF differences
That the electric railway managers
realize the force as well as justice which IS
behind the demand of their employees in
many cases, for increased wages IS dem
onstratcd' hv the fact that hut little dis
pute OF their claim 10 greater compensation
was made 1t was pointed out that In
some cases wages are considered 10 he
adequate to the cost OF living. but the
tacit admission In even these eases by
the trolley counsel was that other com
panies are not paying as much as IS
necessary.
MORE MONEY FOR WAGES.
1t was on this point that the most
startling and most persistent argument
OF the trolley counsel was based.
I'VE are paying rs much increase in
wages as we possibly can do under our
present revenue Mess the President
directly exercises his power to increase
our revenues by raising trolley fares, or
unless the War Labor Board definitely
recommends to State Public Utilities
Commissions and to municipalities that
they give US increased rates, we cannot
pay more wages TO our men without
going into bankruptcy Is the argu-
ment which was put forward, in brief
Ex-President Taft expressed just as
concisely the reason for which the trolley
magnates are gwen hearing.
I'VE are to decide, he said, Gust how
much, if any. weight should be gwen in !
fixing wages TO the financial condition of
the electric and street railway COM
panies.
Whether the employees associations. |
whose case is under the direction of James !
II. Vehey of Boston, general counsel OF !
the International Amalgamated Associa- |
ton of Street and Electric Railway En- |
ployes OF America, will express their atti- |
tude to the raised rates which are asked |
for In order to give them raised wages. |
remains to be seen. Mr.. Nehey yesterday
gave notice that a number of economists. /
az well as labor leaders, are present TO
present Ills SIdt VI tIlt diStAIDCliL. ne
hearing recommended al $50 this morning
after two and oDe-half hour session
yesterday.
MIR. Taft took occasion to point out at
one point in the testimony Of Mr. Me
Carter that In some instances Public
Utilities Commissions have already grant
ed Substantial increases" to the transi
companies. This was cOuntered by
the statement that while this may be |
true In some cases the limitations placed |
by law or regulation in a number of /
cases are such that only Federal action |
can adequately take care of the interests |
of the trolley owners. He emphasized /
the fact that the trolleys form one of !
the most necessary of war as well as |
public utilities, and that if the President |
has not already the right TO exercise his |
authority 1T can be gwen TO him by Con
gress.
Z. w. Clark, of T. w Clark and Co, |
bankers of Philadelphia, showed no
hesitation In stating that the President |
has the right to adjust the difficulties of
the railways, but that it is imperative
that he do so unless a great number are
TO go into bankruptcy, and serious eff
fects are to be suffered by State banks
and other financial Institutions
EFFECTS MAY BE SERIOUS
"Unless the declining earning power
of the electric railways is met with in
creased revenues the effect on the State |
banks and financial institutions will be |