Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1921-02-23

tolerate lower wages, and the rail
road executives are openly charge,
with bad faith, inefficient manage
ment, and plotting to crush the unions
Some editors are hopeful of parable
reduction in both railroad wages ant
railroad-rates which will help to cas-,
the business situation Others can Sc,
nothing ahead but a prolonged rail
road strike early this spring, which
| will bring hardship and indefinitel!
delay business recovery. ''The roar
| ing Of the big guns" seems to the
Chicago Tribune ito prelude another
great engagement between the rail
road executives and the union execu.
tives." The Chicago paper sees, as the
only alternatives, "a transportation
tie-up if the unions go to extremes
or railroad receivership, with posi-
BILE panic, if the railroads are not
granted relief from their high-wage
burden" And so, 'just as our business
skies are frightened, dark clouds blow
up from region we had hoped might
be serene for a season." ,.. .
Everybody was happy, the New York
Tribune remarks, when the roads went
back to private ownership on Septem-
Der /, under the new Railroad Act
But the rejoicing did not endure. In
the first place:
"The new rate structure, under
which passenger-fares were advanced
20 per cent. and freight tariffs up
to 40 per cent, did not yield the re-
suits that had been confidently look
ed for. For one thing, number Of
State regulatory bodies refused to per-
NIT intrastrate rates to be revised
upward in accordance with the new
interstate schedules.
Much more important that that,
the new rates were in some measure,
unsound, for they were in
cases more than the traffic would
bear This was especially true of the
rates. Travel began to fall
off, and it has decreased progressive
ly ever since. Similarly, freight traffic
was lessened by the high rates-which
IS hardly surpriZing when 1t is con-
sidered that transportation costs, OF
Ill things entering into the production
If a unit of certain commodities, have
advanced more than 100 per cent.
since pre-war days. 49,.
but, however large part higher
rates may have played in reducing
raffic volume, there was still more
important factor-namely, business de-
preston. The slump in the volume
If business was quickly reflected in
lighter shipments. A year ago the
shortage of equipment was acute be-
,ond precedent; now many thousands
If freight-cars stand idle on side
racks or in yards.
Immediately the traffic slump be-
gan the railroads started to reduce
working forces, discharging thousands
If employees added to the pay-rolls
Turing the period of government con-
rol. Millions of dollars were saved in
hat way. Moreover, the new prices
or coal and other railway supplies
helped greatly to cut down expen-
,es.
These savings, however, large as
hey were, still did not suffice to bal
tnce the account-to permit the rail-
.oads to earn the per cent. on their
value provided for in the
lew Transportation Act. Indeed, one
spokesman for the carriers, General
Atterbury, says that under present
conditions many railroads are not
earning operating expenses and others
ire not earning fixt charges, let alone
. fair return on property value.
Under the Transportation Act the
situation could be relieved-theoreti-
ally, that is-by advancing rates to
;till higher levels. Practically that is
,ut of the question, for if rates are
more than the traffic will bear they |
will tax it out of existence. 1t is more |
that rates in many cases
will have to be lowered"