The Connecticut labor news., 1921-10-28
FEDERAL RAILROAD CONTROL BOLSTERED
 UP THE SECURITIES
Interstate Commerce Commission Member Points Out Flaw in
 Program.

Atlanta, Oct. 28.-One oi the req sons for federal control ol rail roads was the preservation of rail road securities from financial dcmor- alization," said Joseph B. Eastman. member of the interstate commerce commission, in a speech i'll this city.
 The speaker said railroad discus sion in recent years has been on painfully low level.
 Il am not thinking ol the lgnor- anCc and dcmagoguery which always
 enters into any public controversy, but of discussion from sources which arc preSumptively intelligent, he
 said.
 Now l am not speaking of hon est criticism. We all need it. l have
 in mind the propaganda which omits
 everything that is favorable to the
 object of attack, turns the spotlight upon everything that Is unfavorable and adds few lies for good measure. 'The fact that the roads when un- der federal control failed to earn the so-called standard return by many hundreds of millions of dollars Is offered as proof positive of the in efficiency of government operation. But 1 call your attention to the tact that the first six months after the re- turn to private control the deficiency was upward of 5000, ,OOO; that Tn the I2 succeeding months following the most StupendOuS increase ever made in our railroad rates the dchc- ienCy was at least $35O,OOo,OOO, and that it was kept from reaching d still larger sum only by slashing i'll eN- penditures which have left the coun ! try with one of the largest percent ages of bad-order cars in it's history. There were explanations for these deficiencies, 1t Is true, but SO were there explanations for the deficiencies during federal control.
 "Take the case of labor. The inn pression has been spread broadcast that the increases i'll railroad wages during federal control were the pro- duct of intrigue and political pres sure The facts are that the major increases were made upon the recom- mendation of bipartisan board of arbitration headed by Franklin k: Lane, which thoroughly considered both sides. Following federal con trol the wages were further judicially considered by the labor board created by the Esch-Cummins act, and the re- suit was a further increase of about 2I per cent built upon the increases
  it's report the labor board said: "'lt has been found by this board generally that the scale of wages paid railroad employees IS substan- tially below that paid for similar work in outside industry, that the in crease in living cost since the etfec- tive date of general order No. 7 and it's supplements has thrown wages below the pre-war standard of living of these employees, and that justice as well as the maintenance Ot an essen tial industry in an efficient condition require substantial increase to prac- ticaly all classes
 Since that time the wages have been reduced I2 per cent. Further nore, 1 call your attention to the fact that the national agreement which have been the subject of so much recent unfavorable comment, were entered into during the direc- man of unblemished integrity and conceded ability, who was for years prior to federal control perhaps the 1 foremost spokesman of the railroad l industry.
 "Prices has been falling, and l
 do not undertake to say that furth- I CT reduction in wages may not be
 necessary for the good of the coun
 try. I have not heard both sides, and
 it is notIny job. I do suggest, how
 ever, that if such a reduction is to be l considered, labor is entitled to a
 seat at the council table when it is | discussed, and it is also entitled to
 the presumption that it has no less l interest in it's country's welfare and
 no greater degree of selhshness than
 shippers or captains of industry.
 Nothing but i'll will and conten-
 ton is to be gained bN policy of
 misrepresentation or COhcealment ot
 the essential facts. l further sug- that no scale of wages can be fairly
 or proftably built upon the pay which men out of work in a period of un-
 employment are, willing to take as an