Evening star., 1921-04-28
FIGHT AGAINST RAIL
WAGE CUT OPENED
Union Head Says Living Ex-
penses Are Too Uncertain
to Justify Reduction.
Rr the Associated Press

CHICAGO. April 2s. - Reduction OF
railroad wages would impair the stand
ard of American living and would have
no justification in ethics. economic rea-
son or tho cold. concrete facts of pres
ent-day industrial life" it was declared
b. Il. NJ. Jewell. head of the railway
unions. who opened the employees fight
to retain present wage scales before
the Railroad Labor Board today.
Contentious of the railroads that the
cost of living had declined since the
wage award of July, 1920. were met
with the reply that that award was
based on the prices of December. 1919.
and not on those of July. 1920. the peak
of high prices. Mr.. Jcwe! declared that
it would require three years for railway
employees. at their present wages, to
recoup the losses sustained during the
war period 'by the failure OF their ca rn-
ings to keep pace with the Increased
cost Of living.
The railroads rush in and say.
Give US our pound of flesh" Mr..
Jewell said. even before it can be de-
termined whether the cost of living
has actually declined since the award
of this board or whether it will be
higher or lower in the future. The
insistence of the railroads upon a
wage reduction. in our opinion. has
! been most unexpected and unseemly.
There are no data which can be pre-
sented 10 this board which would
justify the board in authorizing at
F., this time reduction in the rates of
lay of railroad employees"
i Compare Other Wage scales.
! Mr.. Jewell named prevailing wage
| rates in similar industries and
j changes in the cost of living as the
two main considerations which should
Y..gsf rd
wage controversy. He said there had
been no reduction in wages paid in
the basic industries comparable to the
| railroads and that there had not
been sufficient reduction in the cost
Of living to justify a reduction in
wages that were inadequate to meet
living costs at the time they were
esta bisaed.
Coal mining and the steel indus
tries are only basic industries that
may be compared to the railroad in
dustry." Mr.. Jewell continued land
it is well known that there have been
no wage cuts for the miners or for
the steel workers.
Conditions to Consider.
I'm addition to the two main princi-
pies SET up as a guide for the board
in wage determinations. there are
also other and more fundamental con-
ditions which must receive judicial
notice. These are:
Il. Economy and efficiency. The
transportation act requires that the
railroads operate with due economy
and efficiency. We shall show that this
has not been done; that because of the
financial control and policy of the
fGcQads. resources have been dissi-
pated or Improperly distributed. i'm
provements and maintenance deferred
and operating has greatly advanced,
despite the increased work and pro-
ductive efficiency of railway employees.
Our conclusion shall be, therefore,
that the board cannot entertain plea
for reduction in wages under any cir
cumstances until the inadequacies of
management and the high operating
costs resulting therefrom have been
eliminated.
'z. The general policy Of the in
dustry. The main items of operating
expenses are. of course, fuel, supplies
OF all kinds and labor. We shall snow
that the same financial interests
which control the railroads also con-
troll the production Of fuel, timber,
equipment, oil and other supplies and
that they have determined upon
policy of decreasing railroad expenses
by reducing wages and at the same
time charging unwarranted and un-
reasonable prices for supplies which
the railroads must purchase. We shall
contend that this board should not
consider any complaints relative to
the rates Of pay Of railway employees
until it is satisfied that the railroads
are. not being forced to purchase their
supplies at exorbitant prices.
I'VE submit. therefore, that no ac-
ton looking toward a reduction in
wages can now be taken by this board
which can be predicated upon any
sound basis. We are in the period of
read djustment and reconstruction. No
one can predict with certainty what
the Immediate tendencies will be.
Only one thing is certain and that is
that there has not been a sufficient
change in the condition affecting
wage principles to warrant any
change in the decision OF last July
No justification can be found in ethics,
in economic reason. or in the cold.
concrete facts of the present day in
dustrial life and activity to support
the hoard in making changes in exist
ing rates of pay to railroad en-