The Mena weekly star., 1919-08-28
|SHOPNEKS WAGE
DECISION IS OUT
President Wilson Says 1t lis Neither
wise Nor Feasible at This Time to
Raise Freight Rates to Pro-
vide Higher Wages.

menL OF the ScttichShC u ""SS Wv
mands until normal economic condi-
tions are restored was announced to-
day by President Wilson as the poll
cv which the administration will pur-
sue in dealing with such questions,
particularly those affecting railroad
workers. The president announced
also that it was neither wise nor
feasible at this time, when the most
important question before the coun-
try is a return to normal price lev
eI. to attempt to increase freight
rates to provide funds for higher
wages.
eve ought to postpone questions of
this sort until we have the opportu-
nity for certain calculations as to the
relations between wages and the cost
of living" the president declared in
statement to the public explaining
his decision as to wages. ut is the
duty of every citizen to insist upon
truce In such contests until intelligent
settlements can be made, by peace and
effective common counsel. appeal to
NV fellow citizens of every employ
ment to cooperate in insisting upon
and maintaining such a truce"
Text of Statement.
The text of President Wilson's
statement regarding the shopmen's
wage increase question, addressed to
the public, follows:
INV Fellow Citizens:
IA situation has arisen in connec-
ton with the administration of the
railways which is Of such general sig
nifcance that | think it my duty to
make public statement concerning
it, in order that the whole country
may know what is involved.
'sThe railway shopmen have de-
manded a large increase in wages.
They are now receiving SO, 63 and 6S
cents per hour. They demand 80
cents per hour. This demand has been
given careful and serious considera-
tion by the board which was consti-
tuted by the railroad administration
to adjust questions of wage, board
consisting of an equal number of rep
resentatives of employees and of the
operating managers of the railroad
companies. This board has been un-
able TO come to an agreement and 1T
has therefore devolved upon the direc-
to general of railroads and myself to
act upon the merits of the case.
"The shopmen urge that they are
entitled to higher wages because of
the higher wages for the present re-
ceived by men doing a similar work in
shipyards, navy yards and arsenals,
as well as in a number of private in
dustries, but concur with the direc-
tor general in thinking that there is
no real basis of comparison between
the settled employment afforded me-
chanics by the railroads under living
conditions as various as the location
and surroundings of the railway shops
themselves and the fluctuating en-
ployment afforded in industries, ex-
eeptionally and temporarily stimulat-
ed by the war and located almost
without exception in industrial CEN
ters where the cost of living is, high
est.
THE substantial argument which
the shopmen urge is the very serious
increase in the cost of living. This is
very potent argument indeed But
the fact is that the cost of living has
certainly reached its peak, and will
probably be lowered by the efforts
which are now everywhere being con-
certed and carried out. 1t will GER
tainly be lowered as soon as there are
settled conditions of production and
of commerce.; that is, so soon as the
treaty of peace is ratified and in OPP
Grafton, and merchants, manufactur-
ers, farmers, miners all have a cer-
tin basis of calculation as to what
their business will be and what the con-
ditions will be under which it must be
conducted.
"The demands of the shopmen,
therefore, and all similar demands are
in effect this: That we make increase
in wages, which are likely to be per-
manent, in order to meet temporary
situation which will last, nobody can
certainly tell how long, but in prob
ability only for a limited time. In
creases in wages, moreover, certainly
result in still further increasing the
costs of production, and, therefore, the
cost of living, and we should only have
to go thru the same process again.
Any substantial increase of wages,
in leading lines of industry at this
time would utterly crush the cam
paign which the government is wag-
ing, with energy, vigor and substan-
tial hope of success to reduce the
cost of living And the increase in the
cost of transportation which would ne
cessarily result from the increases Of
railway employees, will more certainly
and more Immediately have the effect
than any other enhanced wage costs.
Only by keeping the cost of produc-
tion on its present level, by increasing
production and by rigid economy and
saving on the part of the people can
we hope for large decreases in the
burdensome cost Of living which now
weighs us down.
~The director-general of railroads
and ] have felt that a peculiar re-
sponsibility rests upon us because in
determining this question we are not
studying the balance sheets of corpor-
atoms merely. We are in effect de-
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