Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-08-02
HOUSE TO CONSIDER
TROUBLES OF j. S.
RAILROAD SYSTEMS
Obeys Wilson's Request to
Abandon Recess to Face
Labor Crisis.
COMMISSION is ADVOCATED
TO SETTLE WAGE QUESTION
President Takes New Step in
Urging Congress to Order
Increased Rates.
ACTION GROWS OUT OF H. c. l..
Demands OF Trainmen for More
Money Make Necessary Raise in
Transportation Charges.
COMMISSION is ADVOCATED
TO SETTLE WAGE QUESTION
ACTION GROWS OUT OF H. c. L..
TBv Associated Press I

BY Assocta ted FTess1
WASHINGTON. August 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, following
extended conferences with Director
General Hines. today asked the House
OF Representative to abandon pro-
posed recess of hve weeks. beginning
tomorrow and remain in WASHINGTON
10 consider the creation of commits
sion which would determine all ques-
tions concerning the wages of railway
workers.
The House tonight. on the eve of it's
planned recess, voted TO comply with
the Presidents request, which pre-
GISs h1e Hasn ndoTsed by the Re
tee al a special meeting
New Step Is Taken.
The President took a new step in
railroad legislation i'll suggesting to
Gomsress l"as s the ac. 70 create :he
cis,ons or that body mandatory upon
the rate making body and provide.
| c9xsr.s any; ;recommended increases in
wages, and therefore in the cost OF
Operating the railroads."
gress ever was asked by the chief en-
ecutive to order the Interstate Com
meree Ms GS%eim1misssion S%i1nns 10 advance rates
Chairman tIsch and Cummins, of the
House and Senate Interstate Commerce
Committees: virtually transfers to the
hoor of Congress the question of
whether there shall be an increase in
transportation charges long forecasted
by The steadily growing deficit aris-
!ns from the failure OF railroad income
10 equal the government guarantee
discussion OF the traiiic situation be-
fore congressional committees re-
n Ypp act tn,
that Congress should prescribe basis
for rate making.
Would Make Adjustment.
This. it has been suggested, would
be done by the passage of law re-
quirinG the. Interstate Commerce Com
mission to adjust rates from time to
time. in accordance with fluctuations
in operating expenses. so that investors
woulo be assured OF fair return on
their money.
Net operating income OF the roads
under Federal control amounted to ap-
proximateiy S6l:soo.0o0 in June. leav-
with one-twelfth of the guaranteed
annual rental and a deficit Of 10000. :.
600 as compared with the average in.
come In June of the three-year test
based.
For the first six months of the call
endar year the deficit amounted 10 more
than S296,00o.o0o, compared with one
Freight business Drops.
The half-year net income was less
than l per cent on the $4,000 600 900
or railroad property taken over by the
government. Director -Cn~~--l Hines
declare" 'he frllne off in freight bus-
tor in the deficit. combined with in
creases III rates, when have been on
a much lower percentage than increases
in wages and >rices of materials.
made public today the income in the
mrs! SIX Ro months dna OF this year amounted
6e5.l5l,Go0 for the same length OF
time during the test period.
Net operating income. however, has
crease OF rs per cent in expenses and
12 per cent in taxes. In view of the
growing deficit, the railroad admins
| increased wages, which would mean an
addition of between $4,000. 900 and ST.
OOO,O0O.UO0 to the pay roll.
Backed by Statistics.
Al the demands are backed by sta
tistics with the purpose OF showing
steadily mounting prices for every.
| Thing a man eats or wears have wiped
Out out an previous advances, leaving the
ly than they were before.
Indicative Of the unrest caused by
such conditions, which union leaders
frankly have said would result in ''up-
hcavaf If not corrected quickly. was
| The strike today OF shopimen in the
Middle West and South notwithstand-
ing orders from union officials 10 re-
main at work pending discussion or
their demands.
New wage demands before Director
General Hines, upon which hearings
have been held. total $500. .OOO, 600 nd
include S2l0.OO0,000 asked by the shop-
men, 3lOU.0O.0O0 by the trainmen who
nave announced that they would strike
| October ] Ii no relief was afforded by
that time; $50,000,000 involved in the
time and half for overtime, demanded
by the four botherhoodS when gen
eral strike was threatened in 1916, left
for future determinaM Mon+ and San
100000 which would go to the conduc-
tors II the trainmcns wage scale was
adjusted as requested. Some of tho
demands would advance ceNwages l2O per
cent over the pre-war level
Hines I'm Conference.
Director General Hines had con-
ference late today with Senator Cum
Minis and Representative Esch. chair
man OF the Congressional Commerce
Committee. at which he discussed the
labor crisis and explained his views
that additional wage increases should
come from commission created by
Congress. He promised to draf, and
| submit bill which would embody his
ideas.
Mr. Hines letter to tho President.
under date OF July 80, follows:
several months ago the railroad
shop employees asked for an increase
tn wages. The matter was considered
(COntInuod on Second Paue1 -