The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-10-23
The Railroad
Situation
tChlcago TrIbune.O

N@AAhAhV AAhifH
The railroad situation in the
United States IL nj n crisis. involving
every line Of business and industry
in the country. on one hand The
railroad executives have announced
their Intention Of ASKING federal au-
thoriEatlon OF an additional wage cut
OF approximately 10 per cent. with
the pledge that the benefit OF such a
cut viii be passed on Immediately to
all the business Of the country
through "A corresponding reduction
In freight rates. on the other hand.
The railroad b leaders ave
called "a strike. technically against
the ~ per cont wage cut already
made. but actually against the 10
per cent cut contemplated.
In support OF their position the
railroad executives issue n statement
on authority Of the Interstate com
merce commission showing "A steady
decrease In rate OF return on prop
erty investment OF the railroads from
SIS per cent In 1915. Just before the
government tool charge OF wages
through tho Adamson act. 10 0.32 per
cent In 1890 They explain that de
crease as due largely 10 the Increase
In their wage payments from 81
i6k. 600. 900 annually before the
Adamson act went into effect on
| January /. 1917. to sass. 600. 600
total wage outlay FOR 1890. II is
shown in another way by the fact
that In 1915 only 40 cents ont ~
every dollar received by the railroads
for transportation services went to
labor. while TODAY go cents on the
dollar goes TO labor. This showing
largely overcomcs the advantage to
the railroads Of Increased rates for
TRANSPORTATION services. especially in
l NNnNg ~ Nha fNRf Nhuf tho HIGHER ruF al
have reduced demand for such ser
vices. Ana, further. 10 obtain even
the O.32 per cent return such rigid
economies have been practiced by
the roads that ordinary repairs We're
neglected. allowing an increase In
the number Of cars out Or order from
q normal 10000 to 37i43t an Of
September ~. 1891. This represents
an additional hin against tho rail
roads which ultimately must ho met.
Tho effect OF the hirh transnorta
ton rates required by the railroads
TO meet the increased nay roll and
return less han onc-third Of I per
cent on the property Investment has
been n heavy tax upon an business.
particularly agriculture. which o. alb
sOlutelv d~epcndrnt upon trnnsportn
ton for life, Coal consumers. food
consumers. ront payers. building
material users. and userg ~ virtually
every product purchnsnhic In tho
United states have been called upon
to paw part Of this tax In tho high
cost Of ivinU and VIII agree hat u
g. heavy The railroad executives
admit that u is 40 heavy that il has
hnndicapDed and discouraged all
lines OF business and aided In the de
preston Of general prosperity.
That is a strong argument, II
makes clear the fact that the rail-
roads cnnnot continue indefinitely 20
operate on the present basis. Bank
ruptcy stares them In the face. Their
Depreciation in the quality and guam.
tity OF their rolling stock. roadbeda.
etc. Is progressive. Without suffi'
Client returns to provide for upkeep
and Ia assure a market for their Sc
Curities they Cannot restore service
TO rll the needs OF the country. I'm.
less service Is so restored any bust.
ness revival will be limited to what
the impaired facilities OF the rail
roads can handle, II the solution
proposed by the executives Is re-
lectcd either by the railroad labor
board or through a general strike
there will be but two ways out. one
will be the utter collapse OF tho rail-
roads, the other the subsidizing OF
railroad labor. either through still
greater transportation rates, with
their consequent burden upon al
uuhlhehH lndirett TAX upon al
consumers, or through a direct gov
eminent subsidy to be provided from
an increased income tax on all busi
ness and all individuals
what would be tho effect OF such
u subsidy Tho present desperate
plight Of England reveals the an.
Hwer. Our railroads are one OF our
most essential industries, probably
second only to agriculture. II should
be apparent to all that we cannot
tax a weaker Industry TO support one
which IL bnsic. which has It's roots
In the economic soil OF the country.
which has developed in response Ia
Ian economic need and through the