Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-03-15
IVAT|ON FACES NEW
RAILROAD CRISIS
IN REIMBURSEMENT
by HARDEN COLFAx.
(Leased Wire Service to The Journal.)
lCnnvrirht 1921 \

WASHINGTON, March 1.-THE
greatest Industrial conflict in the
United States has ever known looms
ahead. The railroads and their en-
ployes are riding fast to Waterloo.
The dead hand OF wartime pros
perity holds the reins of labor; the
primal law of se1f-preservation d.
reefs the roads.
Through the dust of a dozen re-
lated issues there appears the main
objective: shall the railroads continue
under private control, and, like 9TH
er privately controlled industry, set
their own wage scales, or shall they
relinquish all grip on wages and go
down, with. earning power and indi-
viduality lost, under the wave of
government operation?
For the first time in many months
the railroads have written their earn
ings in red ink. During January the
$4,000, 100000 transportation system
of the United States, taken as unit
failed to make a penny Jumped
earnings of 122 roads, $50, 900 miles
of line (nearly two-thirds of the %
taD showed a deficit of more than
j million dollars. Returns are still
coming in-the same sort of returns
How big the deficit will be, how big
it will be for ebruary-admittedly
larger than for Jaauary-time only
will show.
All over the United States the rail-
roads re in
Here in Washington, railroad men,
members of congress, departmental
and other officials are not unmind-
full of the consequences. They are
looking forward to a titanic strug-
gle with labor, peaceable, maybe, but
with the chances favoring local walk
outs and with the grim specter of
national strike taking form in the
background.
Rail Labor Board
Labor has announced that it will
resist the downward wage revision.
How far it will go in it's resistance
rests only with labor, but railroad
officials and others fully anticipate
that there will be strikes on the part
VI SOIIlC VI IltS Gill Odu
cations.
The railroads plan to observe the
procedure of the transportation act
in readjusting wages. First comes
the notification to employees that
there will be a cut. That notice has
been given by the Pennsylvania, the
New York Central and other systems
and roads. big and little. Still 9TH
ers are planning to give it in the
next few days. Then comes a con-
ference WITH the employees a disa-
greement according to the present
temper of labor leaders-and a day
iflzeniIrt. 49,
The court is the railroad labor
board. Under the law, it sits as UNI
pire in wage disputes. 1t will give
its decision and this time it can not
do other than uphold either the roads
or the employees. If 1t upholds the
roads, how will labor take it? Can
there be repetition of the SWITCH
mans strike of last spring and other
outlaw strikes less diSaStro than
that one? Or will labor take a va
cation, as the anthracite miners did
last year? Or will the decision be
accepted by the employees without
demonstration?
These are the questions almost ev-
cry railroad executive is asking him.
self and his board of directors.
On the other hand, the labor board
may uphold the employees, and DECIDE
equitable and just. What, then, will
the railroads do? viii they reduce
wages anyhow and test the law? To
do so would be swift invitation to a
verdict? Their balance sheets shout
mo" The roads are nearing the ends
of their rope financially, they say;
their earnings have vanished; in
many instances they are burdered
with bills long overdue; their very
are drawing traffic ito the motor
truck; they can not live financially,
they claim, and pay their present
wage rates.
Should it come to pass where the
roads face general bankruptcy as
labor board was the situation almost
now, there would be but one power
that could save them-the govern
ment of the United States. A ver-
diet favorable to labor in the pres
tives claim, to one of two things: q
strikes or general receiverships.
And both Of these lead straight to
government control.
Senate Investigation
The senate committee on interstate
commerce, headed by Senator Cum
minis of Iowa, is much disturbed over
existing conditions. 1t plans most
exhaustive inquiry into the whole
thirty days 1t wants to find out.
Senator Cummins says, what is the
matter with the railreads, whether
they are grossly misma1aged or bled
white by swollen payrolls. 1t wants
to help the roads back to normalcy.
The first thing the committee prob
ably will do will be to ask the in
terstate commerce commission to
give an accounting, of its steward.
Ship during the past year. The next
group to be questioned will be rail-
road executives. The next will be
labor. Every big railroad in the
country is preparing for that inquiry.