The sun., 1919-08-06

are to be raised and II they ought to be
raised now the Director General has the
right to raise them. I hope the country
win Know that n rates are Increased 20
meet Increased costs the Director den-
eral has the right to raise them"
Director-cener.l Has Power.
Senator Pomerene said: IT do not
know anybody In better position to know
whether wages and rates ought to be
raised than the Director General. A
formal communication has been pre-
Bented to the committee bearing gen.
orally on this subject and confess Il
looks to me as II 1t were the desire to
pass the responsibility. I think II
were Director-Generai Of Railroads
would have the courage to say either
that there ought or ought. not to be ar
Increase. OF wages or I would resign."
Replying TO Senator, Watson tInd.),
Senator Cummins safe the Director-Gen-
eral has now all the power tho President
has suggested be conferred on the pro-
Supporting the position OF, Senator
Cummins. Senator Kellogg declared such
. wage board as the President wanted
Congress- to eauthorize, had been created
under the powers of the President, and
bad -made-a report TO. the Director-Gen-
eral on which wage increases. had been
made. pT-t 80 T. >. .,'Ns-t-'.
Senator King. (Utah). suggested that
any increase of wages would constitute
allen on the railroads, and asked 10 this
would not be in effect conhscation OF the
property. He wanted TO know whether
action of such character could be taken
without making provision for compensa-
ton. Senator Kellogg said It would be
confscatory IL the money did not come
from the pockets of the Government. II
the sailroads were to be turned back
with their present operating expenses
fixed half the railroads OF the United
States would be in. the hands OF re-
ceivers In sixty days.. he declared.
The Director General does not deny
IT," he said. "and he has not the courage
to- remedy IT. that Is the trouble.
There we're 10000 moro employees in
January, 1919, doing less work, handling
less freight. than in December, 1917,
the last month Of private operation. We
are paying to those 100000 employees
s21o, 100000 n year. which Is more than
3 per cent on every dollar Of capital
stock OF the railroads. Undoubtedly q
large part of this Is due to shorter hours
of labor, but II is a fact that confronts
Us. In spite OF the increases of freight
rates the operating expenses have gone
up still more rapidly; and the railroads
could not live on the income that the
Director-Gep Is receiving. The rail-
roads have got to be maintained in some
way.
Government Operation wasteful.
There Ia before Congress the most
difficult economic problem we have ever
confronted" Senator King continued.
There never was Government opera
ton that was not wasteful and ineffi-
Client. 1t Is inevitable under our organ
ization. 1t is not the providence or
prerogative of democracy like ours to
run all the business of the country
We've got this problem to settle. I am
going to give the Presidents recon-
mendation the most serious considera-
ton. do say he has the power now.
and the responsibility of handling this
SIT. 5000. 100000 of property hast been
placed upon the Railroad Administration.
1t cannot shirk the responsibility and It
is going to be answerable to the Amer
lean people for it,
A subcommittee of three was APP
pointed to-day by the Senate Interstate
Commerce Committee to consider and
report whether an investigation should
be made Of the railroad wage problem
by the full committed
In connection with this assignment the
subcommittee was instructed to con-
slider and study for itself the relation
between the wages of railroad workers
and the increases in living costs since
the last increase in pay was granted.
The subcommittee win be headed by
Senator Cummins, The work of the sub
committee Is to be expedited in all pos
sible ways. 1t is expected to file a re-
port within a few days II It submits
a recommendation in favor of an inves-
tigation by the full committee q resolu-
ton which Mr.. Cummins has prepared
will be introduced I'm the Senate and au-
thority for the inquiry obtained.
II is the opinion OF Senator Cummins
that an inquiry into the relation between
wages and food prices should be made
In fifteen or twenty communities. The
hearings would be conducted in this city.