Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-03-15
WAGE CUTS NOR
RATE RAISES TO
RAILWAYS
Only Time Can Mend
Situation, Says |. c. c.
Chairman
BY II. B. z. BRIGGS

WAollINN ION, March ID
Neither sweeping wage reductions
nor Increased rates will bring the
railroads out of then present grave
financial situation, according to Ed.
gar E. Clark, chairman of the inter
state commerce commission.
Months at least, with most care
full management, reduction of all
operating costs and general reviva.
OF commerce, will be required TO
save the transportation SYSTEM of
the country, he believes.
In my judgment there Is no So
luton of the railroad problem under
which the roads will be able for a
considerable period in the future to
earn the 1-2 to 6 percent contem-
plated in the transportation act" he
says.
1T is utterly impossible to get
more revenue for the roads from in
creased rates. 1t is equally improb-
able that operating expenses can be
speedily brought down to a basis that
will leave any substantial return
above fixed charges.
The Only Hope.
"The only hope for a solution is
gradual process of improving
business, more traffic and readjust.
ment OF expenses, leading TO a con
dition that will give reasonable fl
nancial return and stability of op-
GRAFTON.
This situation is necessary
heritage OF woe from the war and
it is going to take time to readjusr
No business of magnitude has es.
capped. None can shake off the eff
fects of such a disturbance except
by patient effort.
''The affairs of the world, indus.
trially, commercially and mentally,
have got to be gradually brought
back to normal. Not the normal of
pre-war standards, however; that u
impossible.
Labor, for instance, can never
work in this country at pre-war
wages, and ought not to. But we
can reach, through readjustment,
conditions that will be stable, anG
fair, iii the light of toUay.
Increases in Rates Impossible.
Il have no hesitancy in saying
that it is idle to talk abou; improv
ing the financial condition of the
railroads by any further increases
in rates. Such increases would pro-
duce less revenue, rather than
more
ION the other hand, there can be
no general reduction in rates Some
reductions have been made, as spe-
cific eases, since the general in.
crease awarded last summer. Some
other redlsctions, very important
reductions, affecting a large volume
of business, are about to be made,
lin view of hearings now in prog.
ress.
"Such readjustments are made
when it appears that reduction viii
still leave "A compensatory rate OH
a commodity and tend TO increase
transportation.
Board Lacks Power.
81 cannot comment on the wage
announcements of any particular
roads nor discuss the functions of
the Rail Labor Board 1t must act
for. itself and determine It's own
powers and duties. 1t is worth
nothing, however, that the trans
portatiOn act does not provide the
board with any method for enforc-
ing its awards, either on the rail
roads or their employees.
81 expect to see the railroads
gradually reduce all their operating
costs. There should be very con-
siderable saving on coal, for in
stance.
"The railroads consume, roundly,
one-third Of the total bituminous
coal produced in the United States.
Last year they paid high prices.
Continued on Page Two.l