Evening star., 1919-08-26
Presidents Proclamation to
People on Railroad Problems

The President yesterday issued
statement addressed to the public a
follows:
My Fellow Citizens:
A situation has arisen in con-
nection with the administration of
the railways which is of such gen.
era1 significance that 1 think it my
duty to make public statement
concerning it in order that the
whole country may know what is
involved
The railroad shopmen have de-
manded a large increase in wages.
They are now receiving 5S, 63 and
6S cents per hour. They demand
S5 cents per hour. This demand
has been given careful and serious
consideration by the board which
was constituted by the railroad ad-
ministration to adjust questions of
wages, a board consisting of an
equal number of representatives
of employees and of the operating
managers of the railroad compa-
MES. This board has been unable
to come to an agreement, and 1t
has, therefore. devolved upon the
director general of railroads and
myself to act upon the merits of
the case.
Entitled to Higher Wages.
The shopmen urge that they are
entitled to higher wages because
of the higher wages for the pres
ent received by men doing similar
work in ShinvardS wards and
arsenals. as we'll as in n number
of private industries, but / con-
cur with the director general in
thinking that there is no real basis
of comparison between the settled
employment afforded mechanics by
the railroads under living condi-
tions as various as the location and
surroundings of the railway shops
themselves and the fluctuating en-
ployment afforded in industries ex-
ceptionally and temporarily stimu-
lated by the war and located al
most without exception in indus
trial centers where the cost of liv-
ing is highest.
The substantial argument which
the shopmen urge is the very seri-
Gus increase in the cost of living,
This is very potent argument
indeed. But the fact is that the
COSt VI tiEllS mas IcdCuCo
it's peak, and will probably be
lowered by the efforts which are
now everywhere being concerted
and carried out. 1t will certainly
be lowered so soon as there are
settled conditions of production
and of commerce; that is. so soon
as the treaty of peace is ratified
and in operation and merchants,
manufacturers, farmers, miners,
all have a certain basis of calcula-
tion as to what their business will
be and what the conditions will be
under which it must be conducted.
Wages Likely to Be Permanent.
The demands of the shepmen.
therefore, and all similar demands
are in effect this: That we make
increase in wages, which are like
ly to be permanent, in order to
meet temporary situation which
will last nobody can certainly tell
how long, but in all probability
only for a limited time. Increase
in wages will. moreover. certainly
the costs of production and, there
fore, the cost Of living, and we
should only have to go through the
same process again. Any substan-
tial Increase Of wages in leading
lines of industry at this time would
utterly crush the general cam
paign which the government is
substantial hope Of success. to re-
duce the high cost Of living. And
the Increases in the cost of trans
portation which would necessarily
result from increases in the wages
of railway employees would more
have that effect than any other
enhanced wage costs. Only by
keeping the cost of production on
it's present level, by increasing
production and by rigid economy
and saving on the part Of the peo-
creases in the burdensome cost Of
living which now weighs us down.
Peculiar Responsibility Felt.
The director general Of railroads
and I have felt that a peculiar re-
sponsibi1ity rests upon US because
not studying the balance sheets of
corporations. but in effect deter
mining the burden of taxation
which must fall upon the people
of the country in general. We are
acting not for private corporations,
but in the name Of the government
and the public. and must assess our
responsibility accordingly. Ior IL
is neither wise nor feasible to take
care of increases in the wages of
railroad employees at this time by
increase in freight rates. 1t is inn
possible at this time, until peace
has come and normal conditions are
restored, to estimate what the
earning capacity Of the railroads
will be when ordinary conditions
return. There is no certain basis,
therefore. for calculating what the
increases Of freight rates should
be, and 1t is necessary. for the time
being at any rate, to take care Of
all incroa in -