The herald., 1921-10-27

1918 .Z.io1o
1920 .................... .O.32%
1t will thus be noted that during
the years when other industries were
making very large profits, when the
prices of farm products and the wages
of labor were soaring to unheard Of
heights, the earnings upon railroad in
vestment in the United States were
held within very narrow limits and
that they have. during the past four
years, progressively declined
Roads Handicapped More Than Other
Business.
The railroads are responsible to the
public for providing adequate trans
portation.
Their charges are limited by pub
lie authority, and they are in very
large respects, notably for labor"
compelled to spend money on a basis
fixed by pubic authority. The margin
within which they are permitted to
earn a return upon their investment
or to offer inducements to attract new
capital for extensions and betterments
is extremely limited.
However much the railroads might
desire, therefore, TO reduce their
charges in times of depression, II will
be perceived that the limitations sur
. rounding their action do not permit
them to give effect TO broad and elias
tic policies which might very properly
govern other lines of business not
thus restricted.
1t has been urged upon the railroads
that reduction in rates will stimulate
traffic and that increased traffic will
protect the carriers from the loss Incl
DEM 10 a reduction in rates. The rail-
road management cannot disguise from
themselves that this suggestion is merely
conjectural and that an adverse result Of
the experiment would be disastrous not
only to the railroads, but the public,
whose supreme need is adequate trans-
portation.
Consequently the railroad managements
cannot feel justified in placing these in
strumentalities, SO essential to the public
welfare. at the hazard OF such an expert
ment based solely upon such con-
lecture.
Farmers Especially Need Lower Rates.
1t is evident, however, that existing
transportation charges bear in many cases
dlsproportionate relationship to the
prices at which commodities can be sold
in. the market, and that existing labor
and other costs Of transportation thus inn
posed upon industry and agriculture
generally burden greater than they
should bear. This IL especially true Of
agriculture. The railoard Arrangements
with the distressing situation and desire
10 do every thing to assist in relieving
It that Is compatible with their duty to
furnish the transportation which the
At the moment railroads. in many
cases. are paying 40 cents an hour for
unskilled labor when similar labor u
easily Be Obtained By them at 20 20 cents S
an hour. The railroads OF the country
Pai 10 IN IN 1872 S total q considerably over
However desirable It may be to pay this
or that schedule Of wages, 1t is obvious
that 1t cannot be paid out of railroad
earnings unless the Industries which use
charges.
The railroads. and through them the
people generally, are also hsmpered in
OF working rules and conditions now in
force. as heritage from the period of
Federal control and upheld by the Rail-
The conditions are expensive, uneco-
nomic and Unnecessary from the point OF
view Of railroad operation, and extreme
Sav eI ,Sn h;1 TIP upon the public. which
OF working conditions prevents the rail-
roads from dealing squitably with their
Iaoor costs In accordance with rapidly
changing conditions and the great variety
OF local considerations which ought to
control wages in different parts Of the
country The railroads are seeking to
have these rules and working Conditions
abrogated.
The railroads wfu seek a reduction in
wages now PROPOSED by first requesting
the sanction q the Railroad Labor
Board. The railroads viii proceed with
All possible dispatch. and as soon as the
Railroad Labor Board shall have given its
effsct.