The Birmingham age-herald., 1919-08-02
'NEWLABOR CRISIS
 FACES RAILROADS
 OF UNITED STATES
So Pressing Are Demands of Railway Employees Presi- dent Asks Congress to Take Hand in Effort to Reach Adjustment
By Associated Press


 < Washington, August IA new labor crisis, growing out of the high cost of living, is fac ing the railroad administra- tion.
 So pressing arc 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 Repre- sentatives to abandon a proposed re- cess of five weeks, beginning tomor- row, and remain in Washington to con slider the creation of commission which would determine all questions concerning the wages of railway workers.
 The House tonight, on the eve or it's planned recess, voted to comply with the Presidents request, which previ- ously had been endorsed by the repuo- lican legislative steering committee at a special meeting.
 The President took new step Tn railroad legislation in suggesting to Congress that the act t. create the commission should make the decisions of that body mandatory upon the rate making body and provide. when neces- sary, increased rates to cover any rec commended increase in wages, &nd, therefore in the cost of operating the railroads"
 SQUARELY UP TO CONGRESS This was the first time that Con- gress ever was asked by the clief executive to order the interstae com merce commission to advance rates. MT Wilson's letter. addressed to Chalr- men Esch and Cummins. of the Honse l and Senate interstate commerce com mittees. virtually transfers to the floos l of Congress the question of whether i there shall be an increase in. transpor- 1 tation charges, long forecast by she steadily growing deficit arising from the failure of railroad income to equal | the government guarantee.
 1 Discussion of the traffic situation ! Before congressional committees re- gently, has led to several suggestions | that Congress should prescribe ba- i sis for rate mak ing. This. it has been | suggested, would be done by the Pas- | sage of law requiring the interstdse | commerce comm sssion to adjust rates l from time to time, in accordance With 1 IfltcluatlOnS Tn OpcTdllHS eNPSiioof'f " that investors would be assured or a ! fair return on their money.
 s23,00O,0O0 DEFICIT | Net operating income of the roads under federal control amounted to ap- proximately $51, 1,S00,000 in June, ledv- ing a deficit of $23.000,00 compa red l with cne- tive elfth of the guaranteed au- nuaI rental and a deficit of sS0,500,00 l as compared with the average income I in June of the three year test period on which the annual rental was based, For the six months of the calendar year, the deficit amounted to more l .han s296, 900, ,000 compared with one | half the annual rental. The half year 1 net income was less than one per cent | on the $iS, GOO coo O00 of railroad property taken over by the government. Direc- 1 tor General Hines declared the fall | ing of in freight business continued 1 to be an important factor in the defi- cit combined with increases in rates which have been on a much lower per- cenage than increases in wages ana prices of materials.
 | The bureau of railway economies | made public figures showing that revenues in the first six months of this lyear amounted to $2.352. .949,000 as com- pared with s1.e65, ,151 900 for the same length of time during the test period an increase of 41 per cent. Net operat- ling income, however. has been about l6O per cent less, due to increases ci IFS per cent in expenses and F pcI lcent in taxes.
 BILLION DEMANDED
 In the face of the growing deficit lthe railroad administration now has before it demands for increased wages which would mean an addition of he. tween $500, 000, 900 and $1,000, 900. .00 tt the payrolls All of the demands arc backed by statistics with the purpose of showing that steadily mountins Iprices for all things which a man eats or wears have wiped out all previous advances, leaving the employees perhaps worse off financially than they were before.
 Indicative of the unrest caused by such conditions which union leaders frankly have said would result in ''un- lheaval~ if not corrected quickly, vas the strike today of shopmen in the mid dle west and south. notwithstanding lorders from union officials to remair lat work pending discussion of their de.
 mands
 New wage demands before Director IEeneral Hines, upon which hearings lhave been held, total $400 000.000 ani Include $210,000. 900 asked by the shop linen. S1O0, 100000, by the trainmen, whc have announced that they would strikt lOctober 1 if no relief was afforded bs lthat time, $50,o00.000 involved in ths time and q half for overtime demand ed by four brotherhoods when a gen Ieral strike was threatened in 1916 ant left for future determination, ant $40. 900 which would go to the con
 ductors if the trainm en's wage seal twas adjusted as requested. Some of tn demands would advance wages l2i lper cent over the pre-war level
 Director General Hines had con
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