New-York tribune., 1919-08-11
Wilson May
Raise Rates
With Rail Pay
Continued from page !

advanced without decreasing railroad
revenues by restricting the volume of
business. Members of the Senate
Interstate Commerce Committee have
expressed the opinion that the Presi-
dent will order advances in freight
rates to cover about half the wage IN
creases and will call upon Congress
to appropriate the balance
Justice Clarks Statement
Justice Clark's statement of princi-
Piles on behalf of the conference that
met with the officers of the railroad
brotherhoods follows:
AS result of our deliberation upon
the existing railroad situation in the
United States and the various sugges-
tons which have been made for deal
ing herewith, the conference declares
that the following principles should
control the action of the government
with respect~to this most important
question:
"The government has resting upon it
the duty and obligation to conserve and
iurther the interest of the people as a
BODY, particularly with respect to the
conditions of their livelihood Distr-
button of the products of the nations
industry and agriculture is, therefore,
not only proper, but an imperative
function of the government which the
people have right to insist shall be
1foperly fulfilled. 1t is, therefore, in
cumbent upon the government to pro-
vide transportation Gas the principal
Factor in distribution) at actual cost,
thus lnsuring means whereby the
products of one region may, with only
Of
portation, be brought to the consumers
IN another territory
Transportation at Cost
Efficiency and economy in trans
portatiol are obviously the keys to
the solution OF the problem Of he
high cost Of living. Any plan pro
posed for the solution Of the railroad
problem must. therefore, meet the
test that it will provide TRANSPORTATION
at actual cost
The existing state Of Industrial
warfare is more costly to he con-
suming public than to the workers or
to the owners of capital. Any plan
for the solution Of the railroad rob
lem which seeks the Endorsement Of
the public should provide for share
by the workers in the management and
IN the profits arising from increas ID
efficiency. We therefore welcome anv
we'll considered movement toward
democratization of the railroads as BE
ing in the interest not only of the
workers but even moro in the in
terest Of the public
"lhe rights of private property
actually invested in the provision o'
transportation service for the public
must be protected. At the same time
it is imperative in the interest Of
economy and efficiency and as
means OF decreasing the inflated cost
OF living that the returns to the
owners Of capital invested in the trans
portatlon industry shall not exceed the
amount actually necessary to aecura
their Investment, and shall not be paid
upon fictitious canitalizations Treas-
ment OF the railroads as instruments
1or nnanclal exploitation must ceasc.
tublc service, not private profit.
should be the animatiny motive o;
railroad administration.
Trans spOrtation controls the eco
monte and industrial life of the nation
1T IS Of the utmost importance to in
dustry and agriculture that the rail
roads shall be efficiently and economi-
caliN constructed. maintained and on
Grated. Not only the cost OF living.
but the industrial position of America
depends upon the railroads being con-
Quoted with these fundamental prin-
cipIes in view.
Plans Must Be Tested
Several plans have been presented
&c the Congress of the United States
for the future ownership and operation
OF tAe railroads. Some Of these plans
have oeen presented by the repre- senta-
tiveS or railroad security owners and
o:hcr property owning groups One
plar has been presented by the repre-
sentativo3 of the railroad employees
These plans must be tested and an
alyzod IN tho light of the principles
already enunciated.
an order than this may be done in
Tie orderly manner which BELTS a Ques-
tion OF such transcendent importance
to tho American people. we have deter
mined 70 call national conference to
rect in Washington on Monday. Octo-
ber Is. 1919. and we have further de
cidcd 10 appoint special committees to
analyze the several proposals which
have been offered for the solution of
tho railroad problem. to report their
findings at the national Conference.
One OF these committees viii he COM
posed OF engineering and technical
experts, TO report upon the proposals
as regards tneir meeting the test Of
economy and efficiency: the second
committee Will be composed OF legal
authorities, TO report upon the various
legal and constitutional questions in
VolveG: and the third committee viii
be composed Of economic and financial
experts. who wili report upon the
soundnoss OF the various plans from Il
tluauclal standpoint.
Bourne Sees Menace
I'VE urge the American people to
consider all the proposals which have
been made for dealing with the railroad
situation without prejudice and with
out passion. and TO examine the sev-
eral proposals which have been out
lined in the light OF the principles
which we have enunciatcd.
Former Senator Bourne secs in the
movement for decentralization Of rail
roads IAN organized effort to subvert
government, appropriate private prop
erty and seize economic control Of the
nation.
"Bolshevism has stalked into the
open,' he said. enhanced and accout-
cred for war on republican institu-
tons, and flying under its red flag the
blue banner OF the President Of the
United States, which it wrested from
weakllng hands in September. 1916.
BolsheVlsm selects for its shock troops
the four hrotherhoods of railroad EN-
ployes Euphonize it as they may. the
demands, the attitude, the plan of cam
palgn, the purposes, the means, the
,,n