Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-08-02

Washington, Aug. IA new labor
crisis. growing out of the high cost
of living, is facing the railroad ad'
ministration.
SO pressing are the demand of the
railroad employees for more pay tc
maintain their standard of living thai
President Wilson, following extended
conferences with Director General
Hines today asked the house of rep
resentatives to abandon a proposed
recess of five weeks, beginning tomor-
row, and remain in Washington to
consider the creation of commission
which would determine all questions
concerning wages of railway work
ers. The house tonight, on the eve
of it's planned recess, voted to COM
ply with the presidents request, which
previously had been endorsed by the
republican legislative steering COM
mittee.
The president took new step in
railroad legislation in suggesting to
congress that the act to create the
commission should make the deci-
sions Of that body mandatory upon
the rate-making body and provide,
when necessary, increased rates TO
cover any recommendation for in
creases in the wages. and therefore in
the cost of operating the railroads.
Wilson Sends Letter.
This was the first time that con-
gress ever was asked by the chief ex-
ecutive to order the interstate COM
IuefGe commission to advance rates.
Mr.. Wilson's letter addressed to Chair
men Esch and Cummins of the house
and senate interstate commerce com
mittees, virtually transfers to the
floors of congress the question OF
whether there shall be an increase in
transportation charges, long forecast
by the steadily growing deficit arts-
ing from the failure of railroad in
come to equal the government guar
antee.
Discussion of the traffic situation
before congressional committees re-
Gently has led to several suggestions
that congress should prescribe basis
for rate making. This, it has been
suggested, would be done by the pass
age of a law requiring the interstate
commerce commission to adjust rates
from time to time, in accordance with
fluctuations in operating expenses, so
that investors would be assured of a
fair return on their money
Railway Deficit Enormous.
Net operating income of the roads
under federal control amounted to ap-
proximately 51,S00,000 in June, leav-
ing a deficit of $4,000, 900, compared
with one-twelfth of the guaranteed
annual rental and a deficit of $780,
100000, as compared with the aver
age 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 $296, 100000. compared
with one-half the annual rental. The
half year net income was less than
one per cent on the SIS 1000, 900, 900 of
railroad property taken over by the
government Director General Hines
declared 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
a much lower percentage than in
creases in wages. and prices of ma
terials
The bureau of railway economics
made public figures showing that rev.
enues in the first six months of this
year amounted 52,949, 900 as
compared with $1,665,1 900 for the
same length of time during the test
period, an increase of Al per cent
Net operating income. however. has
been about 60 per cent less, due to
increases of rs per cent in expenses
and 12 per cent in taxes.
Statistics Back Demands.
In the face of the growing deficit
the railroad administration now has
before it demands for increased wages
which would mean an addition of be-
tween $500, 100000 and 81, 600, ,000, 900
to the pay rolls. All of the demands