The Era-leader., 1921-10-27

It will thus be noted that during
the years when other industries we're
making very large profits, when the
prices Of farm products and the wages
of labor we're 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 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, 1t will
be perceived that the limitations sur
rounding their action do not permit
them to give effect to broad and elas'
tic policies which might very properly
govern other lines of business not
thus restricted.
1t has been urged upon the railroads
that a reduction in rates will stimulate
traffic and that increased traffic will
protect the carriers from the loss incl
| dent 10 a reduction in rates. The rail"
road managements 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 arrangements
cannot feel justified in placing these In
strumentalities, so essential to the pubic
welfare, at the hazard of such an expert
ment based solely upon such a con-
lecture.
Farmers Especially Need Lower Rates.
It is evident, however, that existing
transportation charges bear In many cases
a dlsproportionate relationship to the
prices at which commodities can be SOLO
in the market, and that existing labor
and other costs Of transportation thus I'M!
posed upon industry and agriculture
generally burden greater than they
Should bear. This is especially true OF
agriculture. The railoard management
are feeling sensitive to and sympathet'c
with the distressing situation and desire
to do every thing to assist IN renewing
it that is compatible with their duty tc
furnish the transportation which ths
public must have.
At the moment railroads, In man!
cases. are paying 40 cents an hour FOL
working alongside the railroads and car
easily be obtained by them at 20 cents
an hour. The railroads of the country
paid, in 1920, total Of consider erably owe,
81, 800 OOO, 900 to unskilled labor alone
However desirable 1t may be to pay ,thi
or that schedule OF wages, 1t IS obvious
-, earnings unless the industries which u.s.
/ the railroads are capable Of meeting sucl
The railroads, and through them tn
J.. people generally, are also hampered. Il
| their et1OrtS 70 economics Oy Scneuul
8 of working rules and conditions now il
q force, as a heritage from the period Q
. Federal control and upheld by the Rail
b road Labor Board.
; The conditions arA expensive, uneeo
\ nomic and unnecessary from the point q
9 view Of railroad operation, and extreme
ly burdensome upon the public, whic
y pays the bill. This schedule Of wages an
Of working conditions prevents the rail
roads from dealing equtably with the
q labor costs in accordance with rapid
4. changing conditions and the great variet
Of local considerations which ought t
+ control wages In different parts Of til
4 country The railroads are seeking
have these rules and working condition
abrogated
!, The railroads vii! seek reduction
'. wages now proposed By first requestiI
l. the sanction Of the Railroad Lab.
., Board. The railroads will proceed wit
4 ali possible dispatch, and as soon as tt
n Railroad Labor Board shall have given i
assent to the reduction Of wages, the ger
oral reduction In rates will hA put int
/ sfiaet
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