The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-06
SENATE ACTSON
WAGES DISPUTE
Cummins Argues President
Has Power to Raise Pay and
Advance Rates.
HEAVY MONTHLY DEFICIT
POmerene Objects to Admins
tration Shifting Blame for
Situation on Congress.
HEAVY MONTHLY DEFICIT
Special Despotch to The Sun.

WAbH1NGTON, aug. b. - Preeldent
Wilson's demand that Congress pass
legislation giving him powers to deal
with the present railroad emergency
was answered in the Senate to-day by
Senator Cummins Uowa), chairman
Of the Interstate Commerce Committee,
with the declaration that the President
and the Railroad Administration already
have all the powers required to deal
with both wage advances and rate in
creases.
The Senator indicated his unwilling
ness that the country should be led to
believe the Congress. through slowness
or reluctance to act, was responsible
for the development of the transporta-
ton crisis. He said Congress had con-
ferred all necessary powers and they
should be used.
Senator Pomerene (ohio), a Demo-
cratic member of the Interstate Com
merce Committee, made 1t plain that
he considered the Railroad Administra
ton was trying to push the response
bility for dealing with the crisis upon
Congress instead OF shouldering 1t, as
was its duty.
Operation Results Analysed.
Mr.. Cummins presented an analysis
Of the financial results of Government
operation of the railroads, showing
that despite great advances in rates of
fare and freight, which have produced
An immense increase in revenues, the
costs of operation have so greatly in
creased that the railroads are now
mourning n deficit Of s39,0o0,o00
monthly. On the other hand. all OF
them are being paid for the use OF
their properties the maximum compen-
sation allowable under the law, and
this means for some OF them extremely
high rates of dividend on capital.
Senator Mcclellan (Tenn.) asked
Senator Cummins to state to the Sen
ate when 1t might expect recommenda-
tions from the Interstate Commerce
Committee for legislation dealing with
the railroad situation. Senator Cum
minis replied that the committee would
have its report ready long before the
Senate had disposed OF the League Of
Nations.
"If the Senate could find time to
take I'D some of our domestic problems
for the safety of our own people and
avert a catastrophe which thoughtful
men believe may occur at any moment
instead of spending so much time on
foreign affairs I believe the country
would be better satisfied" said Senator
Cummins.
Peace at Home Preferable.
in other Words" fnterjected Sena-
tor Thomas (Col.), "the Senator is of
the opinion that II we must choose be-
tween the two, peace at home is pref
erable to peace abroad?"
"I am shuddering all the time lest in
our concern for the downtrodden peo-
ple of Europe we will suffer the same
disaster through which they are now
passing"
Senator Kirby (ArlI) wanted to know
IL the proposed wage increase would not
mean either increased loss to the Govern
ment In the operation OF the roads or an
Increase in rates.
"Of course, II the wages are increased
.a demanded and there are no increases
In revenue, the deficit will be just so
much more" replied Senator Cummins.
THAT means, does It not" interrupted
Senator Thomas. that in the end II is
a case, so far as the people are con-
earned. OF heads ] win and tails you
lose? ?"
'It is something very nearly that" re-
sponded Senator Cummins.
81 rise for the purpose to indicate to
the country and the Senate" he said.
chat the Railroad Administration has
full power to deal with the situation
without an appeal to Congress. We
have given the President and the Direc-
tor General all powers to deal as their
Judgment may suggest with the very
condition that has now arisen. would
not do this II It were not for an inter-
viaw coming from Mr. Hines. the Direc-
tor-General, on the subject"
Hines BETTER Than McAdoO.
Senator Cummins said he had no In
tention of disparaging Mr.. Hines. whom
he regarded as a great improvement over
his predecessor. and continued:
'Mr. Hines explained TO a group OF
representative labor men that he has
asked President Wilson to have Con-
9ress take up the question OF increased
wages. because he believed the Railroad
Administration virtually had been shorn
~ mower to increase rates to meet such
advances The Dlrector-General said:
"'Passage of a bill to restore the In
terstate Commerce Commission gives
power to suspend proposed increases of
rates, tantamount to putting the Dlrec-
tor-General on notice that Congress dis
approved of increases save by the rates
making body
"Mr. Hines also explained the financial
ConftasLed ON Htnfh pa0s