The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-08-06

HIGH WAGES
COSTLY LIVING
Railway Employees Demand
Another Big Advance
In Pay
PROBLEM PUT UP
70 CONGRESS
High Cost of Living and Higher
Wages Moving in a Circle Fur
ther Complicate Puzzle

Washington, Aug. IA new labor
crisis, growing out or the high cost
of living, is lacing the railroad ad-
rninistration.
So pressing arc t:,e demands OF the
railroad employees for more pay 10
maintain their standard CT living th&e
President Wilson, after extended con-
ferences with Director General hines
today, asked the house OF representa-
tives to abandon a proposed recess OF
five weeks, beginning tomorrow ana
remain in Washington to consider the
creation of a commission which woulo
determine all questions concerning
the wages of railway workers.
The house tonight on the eve OF It's
n1an,ed recess voted to comply with
the presidents request. which Prev
ously had been endorsed by the fe-
publican legislative steering commit
tee at a special meeting.
The president took anew step IN
railroad legislation in suggesting 10
congress- that the act to create the
commission should make the dec1s-
ions of that body mandatory upon the
rate making body and provide, When
necessary, increased rates to cover any
recommended increases in wages and,
therefore. in the cost Of operating the
railroads.
This was the first time that congress
ever was asked by the chief executive
4o order the interstate commerce
commission to advance rates. Mr.
wilson's letter addressed to Chalrn1en
Esch and Cummings Of the house ana
eenate interstate commerce commit-
fees. virtually transfers to the, floor
Ct congress the question OF whether
N ore shall be an increase in transpor-
tation charges, long forecast by the
steadiIy growing deficit arising from
the failure Of railroad income TO
equal the government guarantee.
Discussion of the traffic situation
before confessional committees. re-
Gently had. led to several suggestions
that congress should describe basis
for rate making. This; it has been
suggested would be done by the pas.
sage of law requiring the inter
state commerce commission to adjust
rates from time to time, in: accord
ance with fluctuations in creating ex-
perses, so that investors would be as
sured of fair return on. their mon
ay.
Net operating income of the roads
under federal control amounted to ap-
proximately $51 600 in June, leav-
ing a deficit of s23 100000 compared
with one-twelfth Of the guaranteed
annual rental and a deficit Of $50
100000 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 calendar year, the deficit
amounted to more than $3.50, 100000
compared with one-half the annual
rental. The half year net income was
less than / per cent on the sl8.000.-
900. 900 of railroad property taken
| over by the government. Director
General Hines declared the fallin Il
in freight business continued to be
an important factor in the deficit,
combined increases in rates which
have been on a much lower percent
age than increases in wages and
prices Of materials.
The bureau of railway economics
make public figures showing that
revenues in the fst six months of
this year amounted to. 1888, $4,000
as compared with $1.sG5,1b1, ,080 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 loss. due to
increases Of IS per cent. in expenses
and II per cent in taxes.
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 $1,000, 00O.-
600 to the payrolls. All of the de-
mands are backed by statistics with
the purpose Of showing that steadily
mounting prices for all things which
a man eats or wears have wiped GU.
all previous advances, leaving the
employees perhaps worse off finan-
cially than they were before.
Indications Of the unrest caused by
such conditions. which union leaders
frankly have said would result in ''up-'l
heavals" if not corrected quickly.
was the strike today Of shopmen in /
the Middle West and South, notwith-
standing orders from UNION officials I
to remain at work pending discussions
OF their demands
New wage demands before Director
General Hines, upon which hearings
have been held. total 100000, 900 and |
include S210. 100000 asked by the
shopmen. s1OO,O00,00O by the train
men who have announced that they
would strike October 1 if no relief
was afforded by that time. $50. 900 900
involved in the time and a half for
overtime demanded by the four broth
erhoods when a general strike was
in 1918 and left for future
and $40,00O.00 which
would go to the conductors il the
trainmen's wage scale was adjusted
as requested. Some of the demands
would advance wages 120 per cent.
over the pre-war level.
/