Evening journal., 1921-10-22
SATURDAY, OCTOBER p, 1921
CRUCIAL TEST OF GOVERNMENT REGULATION.

zlrWrHE widespread for reduction in rates and
A the threat Of strike by railway employees against
reductions in wages subiecng present system OF
government regulation OF railways TO the severest test to
which has been put" declares the Railway Age in
an editorial its current issue III it does not stand the
test the OF the railways will suffer, but in the
long run, the public will suffer most"
For some months the railways been subjected to
powerful pressure for reductions Of rates They have
been told repeatedly by those who voiced this de-
mand including high officials in Washington. that they
must find way and have been threatened with the
passage by Congress OF bill to force general reduction
in rates unless it is brought about by other means
on the other hand spite OF all the efforts that have
been made to secure substantial reductions Of railway
labor costs wages stn being paid about i35 per
cent higher per hour than the wages Of 1914 while the
average freight rate the country only about 10 per
cent higher.
It become evident however the Age asserts That the
railways heed the constantly increasing public de-
mand for general reduction OF rates Therefore, they
decided upon the plan announced October a. namely that
asking for further reduction Of wages and OF giving
definite pledge that the benefit Of any reduction OF
wages obtained would be given the public in reduction
OF rates The announcement Of this plan not the
cause Of the strike order the labor hroherhood
had taken strike vote and prepared strike order be-
cause reduction wages awarded by the Railroad
Labor Board and nut into effect by the railways July
T. It is doubtless true however that it is this
nent which has made The order for strike matter Of
serious moment
AS means or avertlng the strike the public members
OF the Labor Board have suggested that the railways shall
at once make reduction OF rates equal to the reduction
OF wages made July 1. and postpone applying for
further reduction OF and that the labor brother
hoods shall withdraw their order for a strike Nobody
who is familiar with the facts regarding the earnings ana
expenses Of the railways any for not knowing
..gt,. - f-oFap ptffh
out further reduction OF would put them back in
the same dangerous financial position that they were in
before the comparatively small reduction Of wages on
July l.
The whole argument for early reductions in rates is
based the proposition that it is needed to promote
revival OF general business But general reduction Of
rates without corresponding reduction Of would
postpone indefinitely the time when the railways could
begin to rehabitae their properties and increase their
purchases and it would financially ruin many companies
Would this promote revival Of business?" the Age
inquiries
The proposition that without further reduction o
wages the railways should make voluntary reduction
OF rates simply invites the railways to commit suicide.
they must ruined IL not the function OF their man
ayers to ruin them
There is widely prevalent very singular halucinaton
This is that the railways should be Subjected through
government regulation OF their rates and wages to kin
OF treatment which other industry is given and tha
then the managers OF the railways should find and app
remedy for the results OF this treatment The public
through Congress- the Railroad Administration, the Raj
road Labor Board and other bodies, has created most
the conditions which have made and are sl making IN
operating costs Of the railways excessive and
public officials who largely responsible for ihes
conditions say that regardless OF the consequences Of tn
railways themselves and OF the effect which would b
produced the service they could render the public the
should their rates the prices Of commod
Ties have declined and general business is bad.
These demands utterly unreasonable and unjust.
the Railway Age says. 1t is obviously the duty Of tn
government and the public whose regulation and conrc
OF the railways chiefly responsible for the presen
high operating costs, reduce these costs before the
ask Tor general reduction Of rates The strike order
me labor brotherhoods is in direct defiance Of the pro
VISIONS OF the Transportation Act and Of decision OF th
Labor Board The suggestion Of the public members o
ne Board That the railways shall make reduction 4
rates without further reduction in wages is in direc
usresaro OF the ratemakng provisions OF the very Ia,
Nhich created the Labor Board The position aken n
The railways that they cannot make general rednco
o rates without further reduction Of wages is fair an
reasonable II they cannot the support Of the %,
ernment and the public by taking and maintaining nos
ton which is fair and defensbe on the basis Of ac,
facts and then all hope for the solution ~ 4,
railroad problem under public regulation is futlen