Bisbee daily review., 1919-08-02
CRISIS |S FACING U.S,
 RAIL CONTROL
President Wilson Suggests Congress Tell l. c. c. to Raise
 Railroad Rates if Necessary To Pay Increase in Wages

WASHINGTON, Aug. IA new labor crisis, growing out of the high cost of living, is facing the railroad administration. So pressing are the demands of the railroad employees for more pay to maintain their standard of living that President Wilson. fol. lowing an extended conference with Director General Hines, today asked the house to abandon a proposed re- cess of five weeks, beginning tomor- row and remain in Washington to consider the creation of commits sion to determine all questions con, corning the wages of railroad work CTS. The house tonight, on the eve of its planned recess, voted to com. ply with the presidents request.
 The president took a new step in railroad legislation in suggesting that the act to create the commission should make the decision of that body mandatory upon the rate-mak- ing body and provide, when necessa- ry, increased rates to cover any rec concentrations for increases in the wages, and therefore in the cost of operating the railroads"
 This was the first time that con. gress ever was asked by the chier executive to order the Interstate Commerce Commission to increase rates.
 MT. Wilson's letter, addressed toI Chairmen Esch and Cummins of the house and senate interstate commits sion committees, virtually transfers to the floor of congress the question of whether there shall be an increase in transportation charges, long fore cast by the steadily growing deficit arising from the failure of railroad income to equal the government guarantee.
 Discussion of the traffic situation before congressional committees re- gently has led to several suggestions that congress should prescribe a ba- sis for rate making.
 This, it has been suggested, would be done by the passage of a law re- quiring the l. c. c. to adjust rates from time to time, in accordance | with fluctuations in operating ex- penses, so that investors would bel assured of a fair return on their money
 Net operating increase of the roads | under federal control amounted to | approximately $51 .S00.000 in June. | leaving a deficit of 23,00O.00 com pared with one-twelfth of the guar anteed annual rental and a deficit of $S0, 100000 as compared with the av- craze increase in June of the three years test prepared on which the an nual rental was based
 For the first six months of the cal endar year, the railroad deficit to more than $296, ,000, ,000
 New wage demands before Director General Hines. upon which hearings have been held, total $40O ,00O 900 and include $21O.O00O0 asked by the S100,00000O by the train men, who have announced that they would strike October 1. if no relief was afforded by that time, $50,000,- 900 involved in the time and a half for overtime demanded by the four Rrotherhoods, when a general strike was threatened in 1916 and left for future determination and 10000. .000 which would go to the conductors it the trainmen's wage scale was ad justed as required.
 Some of the demands would ad vance wages 120 per cent over the pre-war level
 Director General Hines had a con ference late today with Senator Cum mins and Representative Esch, chairmen of the congressional com merce commission committees, at which he discussed the labor crisis and expressed hi sview that addition al increases should come from com mittee created by congress He promised to draft and submit a bill which would embody his ideas. DON'T LIKE WILSON PROPOSAL
 CHICAGO, Aug. 1.-President Will. fndau fhaN |