New-York tribune., 1919-08-02
G0UeR'g2gaseysfEOces
e. e. Labor Crisis
Strike OF $50, 600 Shop
Fsae's for More Wages
Only Start Of Trouble
Neao York Tribune
UEeIj17Ot0 R,,,,,,


WASHINGTON, Aug. THAT la
Dor crisis again faces the Federal Rail
road Administration is indicated bv
these developments:
/. -Four hundred and fifty thou
sand shopmen were affected in a
nationwide walllout ordered bv the
.0Gciatcd shipments union, owing to
failure Of the government to make
satisfactory response to their wage
dcmands aggregating $210.000,0 ,000
=. Inc threat or 2 nation wide
strike on January l, 1920, Of 100000
organized railroad employees to COM
pei the President to keep the roads
under government management
>. a nationwide strike on October
] of 10000 trainmon,. led hy ". G.
Lee, CT the Brotherhood Of Train
men, II the government does not, be-
lore that date. make an increase of
or force a reduction in the cost Of
living.
90 Concerted effort of the more
radical leaders to so involve the ma
tional treasury in railroad finances,
through continuous increases in
wages, that it Win be Impossible to
restore jhe roads to private opera
tion without bringing N a financial
panic thus paralleline tie situation
IN England, where the government
has been compelled to retain control
of the railways to prevent bank
ruptcy.
II for One, Then for All
'5) Demands from various groups
OF railroad employees that the GOV
ornment increase the general scale
OF wages TO enable them to meet the
high cost of living. and that any in
crease to one class of employees au-
tomatically opens a new circle Of
wage increases that must extend TO
all employees. If 35 per cent is add
ed 10 the shopmens wages then all
employees Will demand So per cent
move. This would mean another bill
ion dollars added to the payroll, which.
under government operation, has been
increased from Sl.750,O00 600 to 81
so0'OVO,OOO. It IS estimated that a
cent an hour increase in the ware
scale Is equal to $50O00.00O a wear
co A formal statement by Director
General Of Railroads Hines to the
government wage board that it is
an exceedingly grave question
whether the government ought to
enter upon course which viii bring
about large additional increases in
wages, and will inevitably brine
about also very heavy increases in
rates and without question set in mo-
tlon new and dangerous cycle of
increase in the cost Of living, and
which undoubtedly will involve. in
addition, the development OF great
additional hostility toward the whole
scheme Of government operation of
railroads"
No Funds for Wage Increases
(O a government railroad deficit
for the half year of more than $500
100000, and an unofficial statement
of the Director General to the lead
ers of the brotherhoods that the gov
ernment administration has no funds
from which 10 meet further wage in
creases.
8. An appeal to day by the Direc-
tor General to the President, calling
for Congressional action to meet
urgent needs. The new wage de-
mands before $he railroad admins
tration, upon which hearings have
been had, reach the total Of s400.-
100000, and other demands from
other classes of employees are likely
TO reach several hundred millions
more, with the prospect that they
will ultimately reach $1,000, 0,000, 900,
thus duplicating the demands of
1913.
The wage increases now up to tn,
Director General for determination ar,
as follows:
S210,000,000 for the 100000 work
ers in railroad shops.
S50.o00.0oo for time and half for