New-York tribune., 1919-08-06

vldes for an inquiry into comparative
wages and particularly into whethsr
iias,"E costs nave increased since the
I'll. asp Increase was granted the
railway workers. The general efrec+ ~
a wage increase at this tinns s,0a VI
would be investigated. The reso,ut;o,
was referred to subcommittee msda
up oI senators Cummins, La Fol,ette
and Wolcott, who will mako rnnort
before the end OF the week.
IN. the debate on the floor Adn,inis-
tration Senators defended the fnilure
to exercise the power to fix rates and
wages, already granted to the Execu-
I've oy congress-, on the ground that
'he whoie railroad situation was under
consideration a. the Capitol and the
Administration naturally hesitated TO
complicate the situation since the rail,
roads would remain under government
control for less than six months.
I'm view of the impending return of
the railroads to their private owners" ."
Senator King. of Utah, said, "the
President should do nothing to increase
the hurricane upon the security holders. F."
The President doesn't concur with
the Senator" Senator Cummns pointed
out. He thinks something should be
done Immediately. concur with the
Il
lous situation if something is not done
now"
Would Amount to Confiscation
Senator King returned to the same
line of argument during a speech by
Senator Kellogg.
Does the Senator think, now that
the war is over and Congress is pre-
pairing to return the carriers, the
President has power to increase wages,
which. in effect, would amount to con-
tiscation of property?"
"Of course the railroads are to be
turned back" Senator Kellogg replied.
Everybody admits that if they are
turned back in their present condition,
whether there &re wage increases or
not, half of them would be in the hands
of receivers within sixty days. The Di-
rector General admits it. but he has
not the courage to remedy the situa-
ton by increasing rates.
"The railroads have got to be main
tanned in some way under private own
ership. How it is to be done constitutes
the most difficult economic problem
with which Congress has ever had to
deal. Certainly the solution is not
government ownership. There never
was government operation that wasn't
wasteful and inefficient. 1t is not the
prerogative of a democracy TO run all
the business of the country, but to let
the business of the country run ITSELF"
Democratic Senator'S joined with Re-
publlcans in criticism Of the applica-
tion of the recent 25 per cent increase
in freight rates. Senator Cummins said
reclasslfication of various commodities
by the railroad administration has re-
suited in freight Fate increases on
some commodities of more than 100
per cent.
AS Much as 500 Per Cent
"My information is" said Senator
Pomerene, that increases on some types
of freight from New Orleans northward
have amounted to 24O per cent. In
some parts of the South there have
been increases of 500 per cent, due
to changes in classfcations by some
committee never in contemplation by
Congress-"
Senator Norris, Republican, of Ne
braska, attempted to show that the
deficits that have accrued during gov
ernment operation of the carriers were
due to excessive payments by the GOV
ernment on railroad securities.
81 don't know of single contract
made by the government at less than
the maximum rate allowed by Con-
gress," Senator Cummins said in reply
to question by Senator Norris.
"1f that be true there are some rail
road stockholders being paid as much
as SO per cent on their investment"
Senator Norris asserted.
II insisted at the time the original
railroad legislation was under consid-
Grafton that the government would pay
too much for the lines by S25O,OO0, 900
year." Senator Cummins replied.
But that bill did not require the
President to pay the maximum of pre-
war earnings" said Senator Norris. "In
the case of the Burlington, with which
am familiar, the stockholders are
getting 221a per cent, while these deficits
are being piled up"
Getting More Than That
ut is my impression that the Bur-
lington stockholders are getting more
than that" Senator Cummins cor
rocted. "If we had paid S25O,OOO,OOO
less for the roads in 1918 we should
not have been compelled to go into the
Treasury for $24O,00O,0OO to meet
deficit"
Nevertheless said Senator Pomer-
enc, "if every other corporation had
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