Evening journal., 1920-03-30
RACE BETWEEN WAGES AND RATES.

~ uation in the past has been the fact that the
for increases in their operating expenses have multiplied
rapidly that the rates from which the railroads
to pay their expenses have kept pace with
them say the Railway Age an editorial It's current
issue.
The provisions OF the transportation act to
give for the future that increases in
penses shall be consideration more promptly
than they usually the past when rates are being
determined but it would be well for those plan
ming to object TO the In rates that Will
result from the proceeding initiated by the Interstate
Commerce Commission last week that the Increases in
and in other items OF the railroads OF living
are stin one or two jumps ahead of the rates.
The Interstate commerce Commission on Monday began
hearing for the purpose Of receiving the views Of all
interested parties It's procedure bringing
to level calculated to produce the fair return which
the law promises. but the day there
also held in Washington the second meeting OF the
ference committees representing The railroads and the
organizations OF their employees that transferred
their demands for than billion dollars additional
Increase in wages from the Railroad Administration to
the companies.
Also during the week before the hearing the President
had received The majority and minority reports OF the
coal commission recommending further Increases the
wages Of coal miners which viii inevitably result in
higher price for the fuel which represents large part
Of the railroads expenses
Commerce Commission is already confronted with
scale that has been increased during The period govern
men control about twice much freight rates have
been advanced that all OF the numerous wage
Of the Railroad Administration ~. have been made
effective since its nrst order that made retroactive
TO January 1915 yet reflected in the rate level
i is true thai the railroad companies are guaranteed
for six months the net operating income that they
enjoyed, gol along with, the may be- in The
three years ending June 80 1917 but the employees by the
law are guaranteed for the same six months period
te rates OF pay which they had been allowed up TO
Febrary %, 1920.
In the latter part OF 1917 and the early part Of 1915
the eastern railroads got IS per cent increase and the
southern and western roads much smaller one meet
The advances IN which resulted largely from the
OF the Adamson eight hour law which went into
effect January T. 1917 The rale increases were also
intended to take Of other increases in expenses
notably IN fuel
On May 25, 1915 DlroctorG General McAdoo Issued his
General order No. p increasing wages retroactive to
January and also his General Order No 2s which was
intended TO advance the rates sufficiently meet both
he increase 10 and the advances in other Items
operating which while the Interstate
Commerce Commission considering the IS per cent
case
The rate order however was not made effective until
June while the wage order later found insufficient
to satisfy the employees and supplemental orders
nued to be made to the end of Federal control the
Railroad Administration continued to be optimistic for
the future ana RETAINED from raising rates
The result that while the government during its
operation Of the railroads Increased freight rates about
ss per cent 10 increased about Sc per cent and
the resulting deficit passed to the taxpayers.
Director-General Hines has preferred to explain his
deficit by saying that the FIRST rate made
enough and that the failure TO make second in
crease was matter Of policy although the Increase in
the deficit during 1919 compared with 1918 demonstrates
that the nrsi increase not made sufficiently high
when it was made.
The fact therefore remains that wages have continued
10 increase throughout 1918 and 1919 while the rates have
not been changed Except in the way Of local par
eular adiusments since June 1918 and yet the demand
for in wages has already got start on
the rate