The Connecticut labor press., 1920-07-31

ize transportation workers. If their
spirit can be broken they will be less
inclined to resist other brutal schemes
of managers 1t seems almost as
though the railroad executives realized
that they were rushing headlong to ruin
and were determined that the country
shall be carried along with them.
Not satisfied with the wholesale de-
struction that has been wrought to
commerce and industry, the. railroads
are playing fast and loose with the
loyalty and devotion of their workers,
and unless there is return to sanity
or forcible government INTERPRETATION
the public is going to pay heavy bill.
Almost daily delegations come to
Washington to protest against con-
tinuance of conditions that are spell
ing ruin for industries. They give
facts to prove their contentious that
there has been no Improvement during
the past three months. On the con-
trary, the crisis is becoming more
acute, and unless something is imme-
diately done we may be unable to dig
ourselves out from the smash that inn
ponds.
1t is, perhaps, too late to restore
transportation conditions in time to
avert widespread suffering and priva-
ton next winter. That seems to be the
least of many alarming possibilities.
But by intelligent management and the
application of sound business principles
it might be possible to check the tide
that is running strongly in the direc-
ton of complete prostration of business,
with its attendant losses to all citizens.
Finances in Desperate Shape.
Railroad finances are in desperate
shape, according to the Interstate Com
merce Commission. Failure of private
management to function, even when
propped up by the special privileges of
the transportation act has created
situation which may soon force the
government to resume complete con-
troll and operation in order to insure
transportation service. Creation of a
committee of mine wise men" at a re-
cent meeting Of railway executives in
New York has not brought about the
unity of action on the part of the more
than 200 separate 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 deficit. of $7,266, Yo4 in net OPP
Grating income. In May, 1919, under
government control, net income of
$31 ,730o18 was recorded This dis
closes that the earnings for May, 1920,
had a falling off of $38, 9o7, 1892 as COM
pared with the same month last year.
The report of the government agency
says that this bad showing is not the
result of high wages. Employees have
not received dollar of increase since
March 1, 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 be-
cause they were unable longer to exist
on their wages of SIS per day and under.
The reason for this deficit is that the
government is paying it. That perhaps
explains many things. Were the rail- |
roads on their own resources, they per-
haps 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. It will |
mean diminished returns, for higher
rates always bring that reaction There
is point beyond 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 cannot make
good. Their lines have been overload
ID, and there can be no relief for them
until and unless every dollar of watered
stock is squeezed out and the roads are
,ut in charge of practical railroad men
md teh specu1ator-banker outfit per-
anently retired from transportation. ii