Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-08-02
LIVING AND WAGE
PROBLEMS ENGROSS
NATIONS LEADERS
House Decides to Remain in Session to
Discuss Means of Alternating
Burdensome Living Costs
By Associated Press.

By Associated Press.
Washington, Aug. 2. - The
eyes of the nation are to-day
focused on the Capital where
must be solved the problem OF
reducing the high cost of living
and the new labor crisis worked
out.
Needing the request of Presi-
dent Wilson, the House has
abandoned its five weeks re-
cess scheduled to begin with
adjournment to-day.
Immediately following this
decision, House leaders an
nounced that plans would be
perfected to-day to permit mem
bers to go home under a three
day continuous recess program
their return to be simultaneous
with presentation of the Admin
istration plans for lowering liv-
ing costs.
The Presidents request, COM
ing unexpectedly, provoked in
formal and bitter comment from
both Republicans and Demo
Gratis, but only a single protest
was heard on the floor-it COM
ing from Representative Blan-
ton, Democrat, Texas, who as
serted that his opposition was
due to the railway brother
hoods trying to hold up the
country for about the seventh
time"
So pressing are the demands of
the railroad employees for more pay
to maintain their standard of living
that President Wilson, following
extended conferences with Director
General Hines, asked the House of
Representatives to abandon the pro-
posed recess of five weeks.
Asks Higher Rates -, =.
The President took a new ssNp fih
railroad legislation in suggesting to
Congress that the act to create the
commission should make the de-
cisionS of that body mandatory upon
the rate making body and provide,
when necessary, increased rates to
cover any recommended increases in
wages and, therefore, in the cost OF
operating the railroads"
This was the first time that Con-
gress ever was asked by the Chief
m Int AK.atn kn
Commerce Commission to advance
rates. MIR. Wilson's letter addressed
to Chairmen Esch and Cummins, OF
the House and Senate Interstate
Commerce committees, virtually
transfers to the floor of Congress
the question of whether there shall
be an increase in transportation
charges, long forecast by the stead
lily growing deficit arising from the
failure of railroad income to equal
the government guarantee.
Discussion of the traffic situation
before Congressional committees
recently has led to several sugges-
tions that Congress should prescribe
a basis for rate making. This, il
has been suggested, would be done
by the passage of a law requiring
the Interstate Commerce Com mission
to adjust rates from time to time, in
accordance with fluctuations in oper-
ating expenses, so that investors
would be assured of a fair return
on their money.
Railroads Lose Millions
Net operating income of the roads
under Federal control amounted to
approximately S51 100000 in June
leaving deficit of $23,O0O,O0O com
pared with one-twelfth of the guar
anteed annual rental and a deficit
of S30,5OO,0O0 as compared with the
average income in June of the three
year test period on which the annual
rental was based.
For the first six months of the
calendar year, the deficit amounted
to more than S296, 100000 Compared
with one-half the annual rental. The
half-year net income was less than
one per cent. on the $4,000, OOO. 00O
of railroad property taken over bv
the government Director General
Hines declared the falling off in
freight business continued to be an
important factor in the deficit, com
bined with increases in rates which
have been on much lower percent
age than increases in wages and
prices of materials.
Demands Are High
New wage demands before Di-
rector General Hines, upon which
hearings have been held, total $500
100000 and include 100000. 00G
asked by the shopmen, S1O0,0 900, ,O0C
by the trainmen who have an.
nounced that they would strike Oc-
tober /, IL no relief was afforded
by that time, $4,000. 900 involved in
the time and half for overtime de-
manded by the four brotherhoods
when a general strike was threat.
ened in 1916 and left for future de.
termination, and 100000 which
would go to the conductors If the
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