Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-11-03

operating expenses, the impending
strike, the test Of the efficacy
Of the new Railroad Labor Board a.
agency of conciliation, the demand
In some quarters for the repeal of h
Esch-Cummins law, are the outstand-
ing features of the day. and present
questions of the utmost Importance.
Unfortunately the labor organiza-
tons nave been unable to see that the
market for their services no longer
exists at the old rates of pay, and that
it was not only just to THE great agri-
cultural population that wage 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 mean 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
brotherhoeds. has given out a state
ment in which as an argument against
wage reductions in the railroad serv-
Ice, he says:
There are thousands of these men
out Of work, many Of whom have as
high as fifteen years service. because
there is no need for them, while thou
sands of others have to try to live on
q few days q month. which Is all the
railway service. requires from them.
Let 1t be understood that no rams
p%ortation wages are paid unless the
time is made.
A similar argument is offered in be-
half of 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
perity 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 i,
Is important to bear in mind that
many groups of wage-earners have
exhibited a conciliatory spirit ana
have accepted very considerable re-
ductions, but there are other groups
who have not done So. The latter ac-
cept the benefits of reductions else
where but refuse to reciprocate, and
their mistaken action inficts hard
ships upon the entire community, not
excepting thousands of their OWL
number, by forcing them into Idle
ness.
1t 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, a~ggregating more
than 100 per cent, which have been
war. The effect is vastly more serious
because Of the fall of prices, as freight
charges have become a much larger
percentage OF the value of the prod.
ucts than they were before.
The necessity for fair returns upor
capital and fair wages for employer
can hardly be the subject of argu.
ment. but how is the public to de,
termine what is fair in both of these
cases Obviously it must be done
through ON public agency-a BODY
Of men representing the public. 1t il
necessary to have organization-goy.
ernment-in order to carry out all so.
cha aims, and to put confidence in the
agencies of government and sustain
them. They are not infallible, ant
they are answerable to the public fol
the ann in which they discharge
their responsibilities. but criticism Of
them should be well-informed and di.
rected to specific faults Of administra.
ton. It Is a symptom of social incom.
potency for people to raise q great
outcry against q court or an admins
trative body simply because it's deci.
sions or actions run counter to wha,
Is popularity desired at the time. 1
is like the outcry of schoolboy!
against an umpire.
Two such Boards have been estab
lished to deal with the railroads ant
railroad employes-one the 1nterstat,
Commerce Commission and the othel
the Railroad Labor Board.
In 1913 because Of the difference
of opinion existing about the actua
value of the railroad property, con
gress directed the Interstate Com
merce Commission to undertake a de
tailed survey and valuation. It pro
ceeded to organize a subordinate bod.
Of engineers, accountants, ETC., for tn,
purpose and up to June 80, 1920, ap
rroximately $~61,349,410 had been ex
pended on the work, now far. nd
vanced. The data thus gathered wa
taken by the commission as the basi
Of the tentative valuation required b.
the EschACummins act.
1t should be understood that thi
valuation for rate-making purposes 1
not based upon the amount. of bond
and stocks outstanding, ana therefor
that the talk Of ''watered stock Il
this connection has no foundation
This was definitely set forth by Nj
Edgar e. Clark, then chairman Of tn
Interstate Commerce Commission, be
fore the Senate Committee on Manu-
features last year when it had unde
consideration the Calder bill for tn
regulation of the coal industry. Th
question OF railroad rates being III
the valuation of the railroads adopte
by the commission became a subjee
Of inquiry by members Of the commit
tee, as follows:
Senator Reed: "How did you Il
At the value OF the property? VIII
II the general basis? Is it stocks an
bonds? Is It physical value?"
Mr.. Clark: Stocks and bonds wer
not considered at all. The questio
Of capitalization was not thought O
II Is this fair value as closely as coui
be estimated and Appropriated 9
that time Of the physical propert
which was devoted to the transports
ton service. We had a mass OF III
II 49, S-s efaaa L