The Washington herald., 1921-03-13
WILLARD CLAIMS !.
RAILROADS NEED
MORE BUSINESS
Lower Rates Depend Less
On Wage Cuts Than on
a Greater Traffic. 81
LIVING COSTS, KEY
Conditions Will Clear when
Prices Reach Roinf Where
Trade Is Stimulated. sS
LIVING COSTS, KEY

BALTIMORE. Nd, March IA
Lower freight rates depend less on
q reduction in wages to rsilres1
workers than an increase in busi-
ness. Daniel willard. president of
the Baltimore and Ohio Railro4d
said in an interview with DIE
United Press today. willard fstfx
stated that decreased wages slons
will not work for a reduction IN
freight and passenger rates. .--
Key Is Cost Of Liying. 49,
The key TO the situation is fhe
cost OF living, Willard said. Whom
ever the cost OF living reaches the
point where business in generals
stimulated. the railroad situstfon
and the general economic situsfep
will be solved. he said.
Freight movement at the present
shows a decrease OF from 80 to-fo
per cent over last summer he said
How can we have a reduction fh
freight rates when the figures show
that a great many railroads are
not earning interest and even tsres
with the present rates." he asked
willard said that entirely too
much stress is placed on the effsct
Of freight rates on business. -
Business would not be stimuisted
70 any extent IL freight was moved
for nothing" he said. -
Little fear of strikes growing
out OF the efforts to readjust wages
need be feared. willard said ~
expressed the opinion that we4e<
will fall in proportion to the dro4
in the cost of living and he adted
that he did believe wage reductiens
should be made before justihcatson
is found in the fall OF prices
Prices leaped UP from 100 TO 40
per cent during and after the waEs
MYard said Prices have dropped
and they -%Tn drop still more sn-
doubtsdly. The people are tssf
putting OF buyins until they -
lisve the lowest posat, has BE-.
reached. That attttpde = refc<yk
in all lines OF business. for "
business man does not Nsut to y,
caught with merchandise purchsssa
at a higher figure than his cen-
petitor when conditions are osekSo
normal. or what the general puedc
will construe as normal. %
Highest Wages Prevail ~
Railroad Is are paying out nicTv
| for wages now than at any ting IN
| their history. willard said. ES|e
cited a statement from the Penn.ss-
yania Railroad showing that neErs-
20 per cent Of every dollar earne1
| is paid out IN wages. This hEure =
| a trifa high for other lines, he saio'
but placed the charge on TO labor
at so cents and somewhat aeers
| that out OF every dollar. Cns>s
normal conditions the charge o.
was around ~ cents. he said. -
There is no necessity for goNeSn..
mental action for the solutlon-4of
the railroad problem. Willard sstn'
The railroads are in the same peei- :
tion as other business enterprise,
ana will work out their salvation %
the satisfaction of the entire copn-
/ try. willard said.
I Il look to the future OF the nsh-
road situation with optimism.
willard said. Il know that we can
find the road to a happy solution
under the Esch-Cummins act. Al
that is required is a readjustuleh'
of the general economic scheme
which should mean INCREASED busi'
ness. the lower cost Of living. re-
adjustment in wages and like re-
adjustment in ratos."