The New York herald., 1921-04-18
FINANCIAL NEWS
AND COMMENT
Railroad Labor Boards Deci-
sion Is Best Help to Market
So Far This Year.
STEEL CUTS CAUSE A STIR
Business Shows More Signs of
Removing After War
Conditions.
STEEL CUTS CAUSE A STIR
BY WILLIAM w. CRAIG.

In the decision OF the Railroad Labor
Board abrogating the national agree
ments the financial markets found
last week the most constructive de-
velopment of the year. Earlier than
had been hoped for, the board cast
aside one of the burdens that had been
breaking the back of the major trans
portation system.
The fact that two and half months
of what may prove to be painful and
delicate negotiation between railroad
employer and employee must be gone
through before the boards rulings are
effective is hardly more than supple
mentary to the evidence that finally
the task of unequal railroad costs is
being attacked with intelligence and
persistence. And it is worth at least
passing comment to note that both
railroad arrangements and railroad
labor organizations feel they have lost
no advantage and gained something in
point, voiced by leaders OF both sides,
should be kept in mind as details OF
final wage readjustments are worked
out.
The railroads may save $500, 900 a
year through the elimination of dupli-
Gated jobs and overlapping pay, and
they may not. The expectation of so
great saving has been uttered in
railroad quarters and has been dis
counted and scaled down elsewhere.
But the crux OF the new wage situation
is less in the matter of dollars saved
through particular channels affected by
the national agreements than in the
suggestion that next will come some
readjustments in basic wage rates. pre-
ceded perhaps, by a downward re-
vision Of freight and passenger rates.
Gains by the Railroads.
What the railroads have gained-re-
gained as a matter of facts freedom
OF Individual lines to deal with their
men. without reference to any intricate
and unbalanced special wage system
which made no allowance for the needs
and conditions of smaller roads, ranking
these needs and conditions Of labor the
same as on larger properties. What the
employees retain, under the ruling. is
fun rights for lawful organization" and
the power of such organization to act
for it's members whether these be "em-
ployees OF a particular carrier or other
wise" In other words, while the man
agernent of road may consider solely
its own interests as separated from the
interests OF other roads, the men may
have their side presented by representa-
tives OF their unions. who may or may
not be employees of the road in ques-
ton.
Undoubtedly, the Labor Board stroye
to be as fair as possible to both sides.
That is a beginning from which much
can be expected when the more diff
ficult problem of adjusting established
wage schedules Is taken UP.
Last July 25 per cent wage In
crease went into effect. adding some-
thing like s6o0.0o0.0oo to the railroad
wage bill. The Labor Boards ruling
had no reference TO contentious of rail
managements that part of this in
crease be taken of; the discussion OF
this situation is to begin in Chicago
to-day. coincident with the hearings
before the Labor Board, under the terms
OF last weeks ruling, employers and
employees OF the different roads are ex-
pected TO strive to arrive at wage
agreement on their own account And
the Labor Board evidently Is prepared
to hold a club over the heads OF the
conferees OF both sides by reserving the
right TO intervene II 1t is found that
either party is delaying the completion
Of agreements.
Rail wage Plan Is Com piicated.
/ The wage situation Is complicated
Ii is difficult for any one who has no
become familiar with the whole scope ol
rail pay systems to define exactly wha'
are basic and established wages anc
superimposed special schedules. But az
far as the financial markets are con.
cerned the broad principles are enough