Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-08-02
RECESS
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Discussion Of the traffic situation
before Congressional committees re-
Gently has led to virtual suggestions
that Congress should prescribe a ba-
sis for rates-making. This. it has
been suggested, would be done by
the passage Of a law requiring the
adjust rates from time to time, in
accordance with fiuctuating operat-
ing expenses. so that investors would
be assured Of a fair return on their
money.
THE Director General Of rail-
ways informs me-" the President
wrote Speaker Gillett. that 1.-The
situation with reference to the
railroads is growing so critical every
hour that ! hope it will be possible
for the House postpone it's recess un-
til definite action is taken upon the
recommendations containtd in my
letters to Mr.. Esch. Officials of the
government have been consultation
Of the high cost of living. upon which
I expect resolutions to be adopted
within fortnight. L sincerely trust
that the proposed recess Of Congress
may be postponed until at least such
time as we may know definitely the
problems which confront us. growing
out of this intricate situation.
The letter of the director general
to the president concluded with these
recommendations:
That Congress be asked prompt
.ly to adopt legislation providing a
properly constituted body by which
thepubiic and labor will be adequate
ly represented and which will be en-
powered to pass on these and all
railroad wage problems. but not on
rules and working conditions because
they can not be satisfactorily sepa-
rated from the current handling OF
railroad operations and therefore
should continue to be dealt with by
the railroad administration. Such leg
islation should also provide that IL
wage increases shall be decided upon
1t shall be mandatory upon the rate
making body to provide, where
necessary increased rates to take
care of the resulting increases in the
cost Of operation Of the roads.
That Congress be asked to provide
in any such legislation that any in
creases in railroad wages which may
be made by the Tribunal constitu-
ed for that purpose shall be made ef-
fective as of August 1919, to such ex-
tent as that tribunal might regard
reasonable and proper in order to
give railroad employees from that date
which the tribunal may think they
we're then entitled.
President Wilson's letter to the
committee chairman said:
II take this liberty Of enclosing 0
copy Of letter which I have Just
received from Mr.. Walter D. Hines,
the director general of railroads, and
which I am sure you will agree with
me in thinking it contains matter for
very serious thought and for action
also.
May I not say that I concur in
the suggestions which Mr.. Hines
makes in the two concluding para
graphs of his letter, / hope that it
will be possible for your committee
to consider and recommend legisla-
ton which will provide a body OF
the proper constitution, authorized
to investigate and determine all
all questions concerning the wages
OF railway employees and which will
also make the decisions of that body
mandatory upon the rate-making lnd
providing. when necessary increas-
ed rates to cover any recommended
increases in wages and, therefore, in
the cost Of operation Of the rail.
reads. In view also Of the indisputa-
BILE facts with regard to the tn
creased cost Of living II concur with
Mr.. Hines that the Senate should au.
thorize the body set up to make pub
lie its findings with regard to wage
increases retroactive to the Aug. /.
1919. at any rate to the extent that
the tribunal may regard reasonable
and proper. In order to give relief
to the employees concerned.
need not, am sure. urge upon
you the i'm portance Of this matter
which seems vital from more than
one Point Of view. and I hope that
You will think this form Of action
the proper and uecnsso -, on>o