The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-04-28
RAIL WAGES
FIXED ON Low
PRICES, CLAIM
Jewell Declares Present Pay
Not Based on Peak-Says
Reduction Will Impair STAN
dard of American Living.
SAYS CUT IS NOT JUST
(Bv Associated Press)

CHICAGO, April 28.-Reduction Of
railroad wages would impair the stan
Gard of American living and would
have no Justification in ethics, econom-
ic reason, or the cold, concrete facts
of present-day industrial life, it was
declared by B. NJ. Jewel. head of the
railway unions, who opened the en-
ployes' fight to retain present wage
scales before the railroad labor board
today.
Contentious of the railroads that
the cost of living had declined since
met with the reply that that award
was based on the prices Of December
1919, and not ON those of July 1890,
the peak of high prices. Mr.. Jewell
declared that it would require three
years for railway employees, at their
present wages, to recoop the losses
sustained during the war period "by
the failure of their eatrningS to keep
pace with the increased cost of living"
THE railroads rush in and say give
Us our pound of f1esh;" Nj. Jewell
said, "even before it can be determined
whether the cost of living has actually
declined since the award of this board
or whether it will be higher or lower
in the future. The insistence of the
railroads upon wage reduction in our
opinion has been most unexpected and
unseemly. There are no data which
can be presented to this board which
would justify the board in authorizing
| at this time a reduction in the rates
| u
Makes Comparison.
| Mr.. Jewell named prevailing wage
| rates in similar industries and the
changes in the cost of living as the
two main considerations which should
direct the boards decision in the wage
| controversy. He said there had been
no reduction in wages paid in the
| basic industries comparable to the
railroads.
I'm addition to the two main prin-
ciples set up as guide for the board
in wage determinations, there are
also other and more fundamental con
| dftions which must receive judicial
| notice. These are: First, economy
and efficiency. The transportation act
requires that the railroads operate
| with due economy and efficiency. We
| shall show that this has not bean
| done; that because of the financial
control and policy of the railroads, re-
! sources have been dissipated or i'm
properly distributed, improvements
! and maintenance deferred and operat-
ing costs greatly advanced despite the
increased work and productive effici-
ency Of railroad employees. Our con-
| clusion shall be therefore, that the
board cannot entertain a plea for re-
duction in wages under any circum-
stances until the inadequacies of man
| agement and the high operating costs
resulting therefrom have bee e q
eliminated.
| General Policy
"2. The general policy Of the in.
dustry: The main items of operating
expenses are, of course, fuel, supplies
of all kinds, and labor We shall
show that the same financial inter
ests which control the railroads also
control the production of fuel tim.
Der. equipment, oil and other supplies
and that they have determined upon
| a policy of decreasing railroad ex
penses by reducing wages and at the
same time charging unwarranted and
unreasonable prices for supplies which
the railroads must purchase. We shall
contend that this board should not
consider any complaints relative to
the rates of pay of railway employees
until it is satisfied that the railroads
are not being forced 10 purchase their
supplies at exorbitant prices.
! 1--WE submit, therefore, that no ac
tion looking toward a reduction in
wages can now be taken by this board
which can be predicated upon any
sound basis. We are in the period OF
readjustment and reconstruction No
one can predict with certainty wha,
! the immediate tendencies will be-
Only one thing Is certain, and that is
that there has not been a sufficient
change in the conditions affecting
wage principles to warrant any change
in the decision of last July. No justi
fication can be found in ethics, in
economic reason Or in the cold, con
crete facts of the present-day indus
trial life and activity to support the
board in making changes in existing
rates of pay to railroad employees"