The labor journal. [volume] (Everett, Wash.) 1909-1976, 1920-07-30
TRYING TO WRECK INDUSTRIES
CHARGE AGAINST RAILROADS

agements of this country, and that
is saying a great deal.
They have been robbing the public,
the nation and their own employees,
but by more subtle methods. Never
have they dared such bold brazen
and brutal methods of exploitation
and extortion 1t is evidence that
! the freedom that is given them by
the Esch -Cummins bill has turned
their heads and made them unmind-
full of the primary rights Of human
beings.
Everything is being done to de-
moralize transportation workers. If
their spirit can be broken they will
4 be less inclined to resist other brut-
al schemes Of managers. 1t seems
almost as though the railroad eX-
ecutives realized that they are rush
| ing headlong to ruin and were de-
termined that the country shall be
carried along with them.
Not satisfied with the wholesale
destruction that has been wrought
to commerce and industry, the rail
roads are playing fast and loose
with the loyalty and devotion Of
their workers, and unless there is
return to sanity or forcible govern
ment intermediation the public is
going to pay a heavy bill.
Almost daily delegations come to
Washington to protest against a con-
tinuance of conditions that are spell
| ing ruin for industries. They give
facts to prove their contentious that
there has been no improvement dur
my the past three months. On the
contrary, the crisis is becoming more
acute, and unless something is i'm
mediately done we may be unable
/ to dig ourselves out from the smash
that impends.
1t is, perhaps, too late to restore
transportation conditions in time to
avert widespread suffering and pri-
walton next winter. That seems to
/ be the least of many alarming pos
bilities. But by intelligent man
agement and the application Of sound
business principles it might be pos
sible to check the tide that is run
complete prostration of business,
with its attendant losses to all cit
liens.
Finances in Desperate Shape.
Railroad finances are in desperate
shape, according to the Interstate
Commerce Commission. Failure of
private management to function, even
when propped up by the special privi-
| leges of the transportation act, has
created a situation which may soon
/ force the government to resume COM
| plete control and operation in order
to insure transportation service. Gre
alton of a committee of mine wise
men" at a recent meeting of railway
executives in New York has not
brought about the unity of action on
the part of the more than 260 separ-
ate carriers that was so vociferously
predicted by those who participated
in the meeting.
1t is pointed out that in May,
1920 the financial operations Of the
railroads show a deficit of 1906 ,964
in net operating income. In May,
1919, under government control, d
net income of $31, 1,73O,918 was re
corded. This discloses that the earn
ings for May, 1920, had a falling off
of 1897 ,S82 as compared with the
same month last year
The report of the government
agency says that this bad showing is
not the result of high wages En-
ployes have not received a dollar of
increase since March /, unless it be
that as high as So per day and
board is being paid to inexperienced
men who are serving in the places
of men who have struck because
they were unable longer to exist on
their wages Of So per day and
under
The reason for this deficit is that
the government is paying it. Thai
perhaps explains many things Were
the railroads on their own resources,
they perhaps could not give any
better service, but they might effect
some economies that would delay
the inevitable day of bankruptcy
The freight increases which the
roads are to get will not help them
materially, and only temporarily. at
best. 1t will mean diminished re-
turns, for higher rates always bring
that reaction, There is point be
yond which an increase of freight
rates is the very worst thing that
can happen.
The trouble with the railroads is
that they are called upon to liquidate
the sins OF the past. 1t is payday
in Wall Street, and the railroads car
not make good Their lines have
been overloaded, and there can be
no relief for them until and unless
every dollar Of watered stock is
squeezed out and the roads are put
in charge of practical railroad men
and the speculator-banker outfit per
manently retired from traasporta-
tion.
The railroad problem is fundamen-
tai. 1t is deeper than any legisia-
| tive act can reach unless, perchance.
that act takes into consideration all
the facts and is based upon the ad-
duced information that is available
to all who seek it. Government own
ership and democratic control will
put the railroads on a basis Of serv-
/ ice, and that is the one sovereign
remedy for the manipulation, graft
ing and inefficiency that have been
the main characteristics of private
management.
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