The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1921-10-27
CRUCIAL TEST OF GOVERNMENT
REGULATION.


? reductions in wages is subjecting ou-
present system of government regula
ton of railways to the severest ties
to which it has ever. been put" de
clares ttBe Railway Age IF it doe
not stand the test, the owners of the
railways will suffer. {bQts in the Ions
: run, the public will suffer most.
"Ror some months the railway:
have been subjected to powerful pres
sure for reductions of rates. They
have been told repeatedly by those
who have voiced this demand, includ
ing high officials in Washington, that
they must find way, and have even
been threatened with the passage by
congress of bill to force general
reduction in rates unless it is brought
abcut by other means.
"On the other hand, in spite of all
the efforts that have been made to Sc
icure substantial reductions of railway
| costs, the wages still being paid are
about 1876 per cent higher per hour
than the wages lcf 1914, while the ay-
erage freight rate the country over is
only about rs per cent higher.
1T becomes evident, however, that
the railways must heed the constantly
increasing public demand for gen.
eral reduction of rates. Therefore
they decided upon the plan announced
October IA, namely, that of asking for
further reduction of wages, and of
Igiying a definite pledge that the ben
eft of any reduction of wages OBJ
tanned would be given to the public in
reductions of rates. The announce
ment of this plan was not the cause of
the strike order, because the labor
brotherholods had taken strike vote
and prepared strike order because
Of the reduction of wages awarded by
the Railroad Labor Board and put in
to effect by the railways on July l. 1t
is doubtless true, however, that it is
this announcement which has made
the order for a strike matter of seri-
Gus moment.
"As means of advertising the
strike the public members of the La
Dor Board have suggested that the
railways shall at once make reduc,
ton Of rates equal to the reduction of
wages made on July 1, and postpone
applying for a further reduction OF
wages, and that the labor brother
/ hoods shall withdraw their order for
a strike. Nobody who Is familiar with
the facts regarding the earnings and
expenses of the railways has any ex-
cuse for net knowing that for them to
make a general reduction of rates
without further reduction of wages
would put them back in the same dan.
gercus financial position that they
were in before the comparatively
small reduction of wages on July 1.
"The whole argument for early re-
| auctions In rates Is based on the
proposition the. 1t is needed to pro
mc.e rev al OF general business.
But a general reduction OF rates with
out corresponding reduction Of wag-
ca would postpone indefinitely the
time when the railways could begin to
rehabilitate their properties and in
crease their purchases, and 1t would
financially ruin many companies.
Would this promote a revival of bus
mess?
'.The prop position that, without a
further reduction of wages the rail-
ways should make a voluntary reduc'
ton of rates simply invites the rail-
ways to commit suicide. If they must
be ruined, II Is not the function OF
their managers to ruin them.
There is widely prevalent very
singular hallucination. This is that
the railways should be subjected
through government regulation of
their rates and wages to a kind Of
ltreatment which no other industry Is
given. ard that then the managers Of
the railways should and aud apply a
remedy for the results Of this treat
meut, The public. through Congress.
the Railroad Administrator, the Rail
road Labor board, and other bodies,
I has created most OF the conditions
I which have made. and are still max.
/ ing. the Operating costs Of the rail.
ways sd excessive. aad now some pub.
lite officials. who are laTgsly responsi
HE f,r .hese conditions, say that re.
rardless Of the Consequences to the
always themselves aud Of the effect
which would be produced on the ser
wee they could render the public. they
I should reduce their rates because the
rr.ces OF commodities have declined
end general business is bad.
THE demands are utterly unreason
able and unjust. 1t Is obviously the
duty e the government aud the pub
T he. whose regulation and control ct
t8e railways arr. chiefly responsible