The New York herald., 1921-01-07
GERMAN RAIL MEN
GET FOUR BILLIONS
Split Difference of Offer and
Demand Aggregating 6,0O0,-
100000 Marks.
ADDS TO BUDGET DEFICIT
Berlin Took Step to Avoid
Seizure Of Railroads by French
Military Force.
ADDS TO BUDGET DEFICIT
ny RAYMOND SWING.


Special Gable to THE New York HERALD.
Copyright, 1921, by TIE New YORK HERALD.
New York Herald Bureau,
Berlin, Jan. o.
A compromise agreement has been
reached by representatives of the Gov
ernment and of the German railroad
workers. The Government has yielded
10 the demands of the workers to the
sum of 1000, ,000, 900 marks year. and
although the settlement requires the
formal consent OF DIR. Wirth. Minister
of Finance. no doubt is felt in Cabinet
circles here that he will agree to IL.
The original demands of the railroad
employees were for wage advances
amounting to 5000, 100000 marks a
year.
Last month such a settlement as
that just made would have meant the
fall Of DR.. Wirth as Minister of
Finance, if not Of the entire Cabinet.
Now it is regarded here as a price
paid for two things; first. against a
strike itself, which might possibly
have turned into a Communist up
rising, and. second, that ii will pre-
vent the French from putting the rail-
roads in the occupied zone under their
military control as they probably
would do in the event of strike.
However. this 1000. 600. 900 marks in
crease in pay to the railroad workers
will be added to the German deficit. de-
spite DIR. wirths ultimatum recently, in
which he warned against any further in
crease in the budget. However. he Is not
expected to protest now because of the
political considerations involved.
1t is argued here that these 4,000,O ,O0o.-
900 marks must be reckoned as an indi-
rect expense connected with the allied
occupation.
French plans for the seizure of the
German railroads in the event of a strike
were hinted at to-day. TorrCderts de-
clares that knowledge OF these plans
forced the Government to capitulate to
the employees. At the same time THE
NEW YORK HERALD correspondent here
learns that the German Government has
abundant evidence regarding such plans
goes TO show that large number of
French railroad workers are being held
In readiness to be rushed TO important
posts in the occupied zone and also that
steps were taken by the French to make
certain the coal shipments from the
Ruhr basin.
The Government here feared that once
the French got control of the German
railroads they would always be able to
find a pretext for not relinquishing
them. Also 1t was feared that perma-
nent control py France OF these rail-
roads would develop into indirect occu-
patton Of the Ruhr.
The settlement with the railroad
workers, It IL felt. brings promise Of
quiet in the political situation. Com
munist riots In Fiensburg were cited as
evidence that labor was again nervous,
and the Ministry here has not been so
worried by the international situation
as by the possibility that the radicals
and the conservatives might come to
blows This danger is now regarded as
lessened.
a review OF tho German financial po-
slt,on printed exclusively in THE NEW
YoRK HERALD last Sunday gave the Ger
man debt as 2ss, ,crn, 900. 900 marks on Oc-
tober q last. Dr. wirth, Minister OF
Finance. stated that by the end OF the
present fiscal year, on April next. this
debt probably would be increased to
acs 900 700 marks. obviously the in
crease granted the railroad workers
will add 1000. 900, 900 marks to DR.. Wirth's
highest estimate.