The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-25
Higher Railroad Pay; Higher Rail-
road Rates; Higher Cost of Living.

nusner h1hFOau ray; hfgner hen-
road Rates; Higher Cost of Living.
Announcement is made in Washing
ton that the Railroad Administration
will disclose to-day or tomorrow its
reply to the shipments demand for
higher wages, and that 1t will concede
to them an advance in pay. This was
foreshadowed in President WILSON,
letter. written August 7, when thou
sands Of the shopmen were on strike,
to WALTER D. HINES, Director General
Of Railroads, In which he said:
You are therefore authorized to
say to the railroad shop employees
that the question of wages they have
raised will be taken up and consid-
cred on its merits by the Director
General In conference with their duly
accredited representatives
The chief obstacle to a decision has
been created by the men themselves.
They have gone out on strike and re-
pudiated the authority of their on
GERS at the very moment when they
were urging action in regard to vari-
GUS interests"
The demands of the railroad shop
men were submitted to the Board of
Railroad Wage and Working Condi-
tons Of the Railroad Administration
In February, but no decision was
reached on them owing, 1t Is asserted,
to pressure of other business on the
board. On August 2 number of
strikes occurred, which seriously Grip
pied several railroads This demon
stration was followed by a conference,
on August 4, between Director General
HINES and representatives of the
fourteen brotherhoods In which the
railroad workers are organized. At
this the Director General said "the
Railroad Administration was power
less to grant the relief they asked
without Congress action" Mr.. HINES
indicated to them that Congress was
disposed to place the rate making
power back in the hands OF the Inter
state Commerce Commission, and that
the Railroad Administration was with
out the necessary funds"
The declaration that the Railroad
Administration was without power to
meet the demands of the men was
answered in the Senate on the follow
ing day. Senator CUMMINs of Iowa,
chairman of the Committee on Inter
state Commerce. who pointed out that
the railroads, despite enormous rate
increases, were plling up deficits
under Government control at the rate
Of $39,O00,OO0 a month, said:
'T rise for the purpose to indicate
% the country and the Senate that
the Railroad Administration has full
power to deal with the situation
without an appeal TO Congress.
I'VE have given the President and
the Dlrector-General all powers to
deal as their judgment may suggest
with the very condition that has now
arisen"
Senator CUMMINs said he believed
the Interstate Commerce CommI ssion
should have power to suspend rates,
as a bill before Congress contem-
plated; he added, however:
But the authority as we'll as the
duty Of initiating rates which
70
creased cost of transportation rests
with the Director-General and will
rest with him after the bill to which
have referred has become law"
In the course Of the debate Senator
PoMERENE of Ohio, Democrat, said
that to him the effort of the Execu-
tive Department to refer the matter
to Congress looked "as If It were the
desire to pass on responsibility"
This brief historical statement of
the steps preceding the proposal to be
made to the shopmen to-day or to-
morrow is Of Importance because
the public should understand there
is only one place from which
the Director-General of Railroads can
get money to pay higher wages to
shopmen, or clerks, or anybody else
in the vast organization he controls
The money can come only from the
pockets of the people. 1t may be
taken from them in the form of
higher freight rates. which the orig
inal shippers of goods will charge to
his customers, who in turn will pass
the charge on to their customers, I'M
til the ultimate consumers foot the
bill In the prices they pay for com
modities. 1t may be taken from the
people In taxes levied to meet the
denGts caused by Government opera