The midland journal. (Rising Sun, Md.) 1885-1947, 1919-08-08
new LABOR CRISIS
BEFORE CONGRESS
President Asks Body to Enact
Needed Legislation
HIGHER RATES THREATENED
Wilson Asks For Creation OF Com
mission Whose Decisions Shall
Be Mandatory Upon The
Rate-making Body.

Washington.-A new labor crisis,
growing out of the high cost of living,
is facing the railroads. So pressing
are the demands of the railroad en-
ployes for more pay to maintain their
standard of living that President Will
SON, following extended conferences
with DirectorGeneral Hines, asked
the House of Representatives to aban-
don the recess of five weeks, and re-
main in Washington to consider the
creation Of commission which would
determine all questions concerning the
wages Of railway workers.
The House on the eve of its planned
recess, voted to comply with the Pres
ident's request.
The President took new step in
railroad legislation in suggesting to
Congress that the act to create the
commission should make no decisions
of that body mandatory upon the
rate-making body and provide, when
necessary, increased rates to cover
any recommended increase 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
Executive to order the Interstate Com
merce Commission to advance rates.
Mr.. Wilson's letter addressed to Chair
man Esch and Cummins of the House
and Senate Interstate Commerce Com
mittees virtually transfers to the floor
Of Congress the question of whether
there shall be an increase in trans
portation charges, long forecast by
the steadily growing deficit arising
from the failure of railroad income to
equal the Government guarantee.
Discussion of the traffic situation be-
fore Congressional committees recent
ly had led to several suggestions that
Congress should prescribe basis for
rate-making. This, it has been sug-
gested, would be done by the passage
of a law requiring the Interstate Com
merce Commission to adjust rates
from time to time in accordance with
fluctuations in operating expenses, so
that investors would be assured Of
fair return on their money. Net oper-
ating income of the roads under Fed
eral control amounted to approximate
ly S51.800,000 in June, leaving deficit
of s23,000,00o, compared with one
twelfth of the guaranteed annual
rental, and deficit Of $30,5D0,000 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 cal
endar year the deficit amounted to
more than $296,000,0 900, compared with
one-half the annual rental. The half
year net income was less than l per
cent. on the $4,000, 100000 Of railroad
property taken over by the Govern
ment Director-General Hines de-
clared the falling off in freight busi-
ness, continued to be an important
factor in the deficit, combined with
increases in rates, which have been
on much lower percentage than In
creases in wages and prices Of ma
terials.
In the face of the growing deficit.
the Railroad Administration now has
before it demands for increased
wages which would mean an addition
of between sSO0,000,O00 and $1,000.
900, 900 to the pay rolls. All of the
demands are backed by statistics with
the purpose of showing that steadily
mounting prices for all things which
man eats or wears have wiped out
ill previous advances, leaving the EN-
ployes perhaps worse off financially
than they were before.