The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1920-04-01

UIdWH lTOll lHe SUCCESSFUL eAperl-
ments in plant organization for CO.
operation between employer and en-
ployees, which have been worked out
in various American industries during
the past few years.
. Everybody is familiar with the old
saying the proof of the pudding is in
the eating, and the industrial confer
ence has had the rare intelligence that
/ lacked, to find out what the plans are
that have been tried in individual in
stances which have proved successful.
THE conference" says Mr.. Hoover,
felt that a new American basis of in
dustrial relationships has developed
in the past two or three years in the
widespread and deliberate organiZa-
tion of these relations between EN-
ployers and employees in many hun
dreds of establishments throughout TIE
country, on a democratic basis. The
great value Of this arrangement is that
it enlists the cooperation Of EN-
ployees in production and manage
ment, harmonizes relations and settles
disputes at the source"
The report lays particular import
ance upon the necessity of settling
disputes at their source, and in all ne
gotiations there is a full recognition
of employees representation" The
machinery set up for the adjustment
of disputes operates through boards
of inquiry in different parts Of the
country with a national industrial
board with headquarters in Washing,
ton, consisting Of nine members, three
representing industry, three the EN-
ployees and three the public. These
appointments are made by the presi-
dent and confirmed by the senate. The
members of the conference signing
the report are William B. Wilson,
secretary of labor, chairman; Herbert
Hoover, vice-chairman; Martin r.
Glynn. former governor of New York;
Thomas w. Gregory, former attorney
general; Richard Hooker, Stanley
King; Samuel w. Mccall, former gov
ernor of Massachusetts; Henry M. Rob
inson, Julius Rosenwald, George T,
Slade, Oscar S. Strauss, Henry {.
Stuart. former governor Of Virginia.
William o. Thompson. Frank w. Taus-
sig Henry ]. Waters, George w. Wick
ersham, former attorney general and
Owen D. Young
Now that The railroads must be run
as going concerns" and find way
to finance their own operations before
September l, the public interest natu-
rally is concerned in the question as
to how much it will be obliged to pay
in increased passenger and freight
charges to meet the new conditions.
At the joint conference of managers
and men held in Washington the rail
road wage demands. made on behalf
of 1,S50,00 employees on all railroads
reached the unprecedented total of
81 100, 900, 900 The conference opened
lon the same day that the Interstate
Commerce Commission began hearings
to determine what advances In freight
rates will be necessary to provide the
$1,000, ,O000,OOO of advance in wages al
ready granted during the two years Ol
government operation Of the railroads.
Under the new railroad legislation
the Interstate Commerce Commission
is directed TO make railroad rates that
will yield a minimum of 5R per cent
on the aggregate value of the rail-
roads. The great advance in the cost
of operation, chiefly for wages, during
the 26 months of government control
has reduced the railroad net income
to about "a per cent, or half the mini
mum under the new law.
Railroad traffic experts estimate
that, to provide revenues sufficient to
take care of the billion dollar wage
advances, already granted, an Increase
in freight rates of approximately 25
per cent will be required The extent
of this increase will be for the com
merce commission to determine after
hearings that expected to extend well
into the summer. The decision must
be made before September !, when
the government guarantee Of pre-war
earnings expires.
If the new wage. conference results
in further increase in the railroad
payroll then, under the transportation
act the commission will again be
obliged to raise freight or passenger
rates, or both, to provide the addi-
tional revenues to pay the wages. The
granting of the new billion dollar wage
demands would, under the law, mean
further 25 per cent advance III
freight rates on top of the 25 per cent
advance about to be considered BY
the commerce commission.
When the railroads were turned
back to their owners on March /, the
nagements were faced with an an
nual payroll Of s2,77O. 100000 as com
pared with s1,74O, 100000 under private
operation to government control
In the last eight months of govern
ment railroad operation new wage de-
mands kept on accumulating. While
the leaders of some of the more con-
seryatiye unions, notably Warren ). /