Evening star., 1921-04-01
RAILWAYS MUST GO TO WALL
IF BIG ISSUES GO UNSOLVED
Wages, General Expenditures, Inadequate
Receipts and Decreased Business Are
Factors In Present Crisis.

down 1t will be possible to make
saving on them. though it is likely to
be gradual There may be some saw
ing later on interest rates, though
many of the interest charges will re-
main fixed. and also there may be a
reduction in the taxes the roads have
to pay-but that, too. is in the doubt
full realm.
cut in wages as the main reduction
in expenditures They are see king
direct reductions in wages and the
abandonment of the so-called ma
tional agreements entered into with
the labor organizations during the
war, which fix the working condi-
tions and provide for Standardization
of the wage scales the country over.
Labor, on the other hand, is girding
up its loins for a finish fight over the
proposed reduction in wages and the
elimination of the national agree
ments. The national agreements
many of the workmen look upon as a
kind of bill of rights" of railroad
labor. whose rejection would be
deadly blow. This phase of the rail-
road problem is assuming tremendous
proportions. Labor leaders insist
that if the national agreements are
done away with nothing can prevent
the men from striking, with a nation
al disaster as the consequence. The
railroad executives, some Of them, at
ieaSt, 10 nOl DelleNe tndl lneTe WOulu
be a nationwide strike; and that if
such a strike should occur, it would
not be sustained by an enraged pub
lie.
Labor Points to Wrongs.
The contention of labor is that it
is entitled to the wages it now re-
ceives. irrespective of the earning
capacity of the transportation i'm
dustry At least, that is the view
a II nf a Sif ifrro h1,f hn y-oi 1vNo
managers, who insist that this is false
premises, and that no industry could
be operated successfully on such a
principle.
But labor is not willing, for its
part, to admit that the railroads are
should be by the railroad executives.
Labor contends, for instance, that the
roads are taking money from one
pocket and putting it into another when
they pay huge sums for supplies OBJ
tanned from supply companies which
to the detriment of the public and
the workers. Labor contends. too.
that the railroad arrangements are
taking this opportunity to rout as
far as possible labor unionism, that
the elimination of the national agree
credit and dislodge unionism. To
this contention the executives stren-
uously demur.
The financial situation Of the roads
can be judged from the statistics of
receipts and expenditures. Figures
make dry reading. but they tell the
story. Take : the year 1917, the last
year of private operation of the roads.
before they were taken over by the
government. and the year 1920. Total
operating revenues in 1917 were $4,-
050,4 0,463.579; total operating expenses,
s2,85S,212,21o; taxes amounted to
$1S2.77S.423 and uncoliectible accounts
to $614,726: the net operating income
was 1874, 1888 In 1920 it has been
necessary to estimate figures for the
last quarter. but it Is shown that the
total operating revenues amounted
to ,225.402.762; total operating ex-
penses. $5,S26.197,474; taxes amounted
to $2S1, 1880, $40 and uncollectible ac-
counts to $1,226.574: with other de-
ductions necessary. the net operating
income amounted to only $62, 2,264. .421
for the year.
Practically all of the roads have