Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-11-03
THE railroad problem at this time

TIME railroad problem at this time
dominates the entire business
situation. The burden of in-
creased freight charges upon all kinds
Of industry, the plight of railroad
finances, the efforts of railroad man.
ayers to reduce operating expenses.
the impending railroad strike, the test
OF the efficacy of the new Railroad
Labor Board as an agency of ooucilia-
tion, and the demand in some quarters
tor the repeal of the Esch- Cuinulins
law, are the outstanding features of
the day, and present questions of the
utmost importance.
Unfortunately the labor organiza-
tons have been unable to see that the
market for their services no longer
exists at the old rates of pay, and that
1t was not only just to the great agri-
cultural population that wages in the
other industries should be reduced, but
for the best interests of the wage
earning population itself.
They do not see that the economic
law already has forced a great reduc-
ton of actual wage-payments, which
IS what really counts. 1t means Moth
ing to the wage-earners to have the
rates high if there is no work to be
had, or work only part time.
Mr.. Lee, head of one of the railroad
brotherhoods, has given out a state
ment in which as an argument against
wage reductions in the railroad service,
he says:
There are thousands of these men out of
work, many. of whom have as high as
ffteen years service, because there is no
have to try to live on few days month,
which is all the railway service requires
from them. Let it be understood that. no
transportation wages are paid unless tie
time is made.
A similar argument is offered in
behalf os very high wage rates for
coal miners. 1t is said that while the
rates are high the miners have work
only part time, and on the average
make only very moderate wages.
These arguments fail to recognize
that it is impossible to restore pros
pcrity on the basis of double pay for
half time work. The people cannot be
supplied with the comforts to which
they are accustomed by half time
production.
In discussing the wage situation it
is important to bear in mind that many
groups of wage-earners have exhibited
a conciliatory spirit and have accepted
very considerable reductions, but there
are other groups who have not done
so. The latter accept the benefits of
reductions elsewhere but refuse to
reciproeate, and their mistaken action
1ntlicts hardships upon the entire COM
munity, not excepting thousands of
their own number, by forcing them
into idleness.
It is an obvious fact that no single
influence is more important in retard-
ing the recovery of industry than the
high freight charges which have been
adopted for the purpose of enabling
the railroad companies to meet the
wage-increases, aggregating more than
100 per cent, which have been granted
since the beginning Of the war. The
effect is vastly more serious because
of the fall of prices, as freight charges
have become much larger percentage
of the value of the products than they
were before.
The necessity for fair returns upon
capital and fair wages for employees
can hardly be the subject of argument
but how is the public to determine