The New York herald., 1922-01-20

act the investing public has ceased to
buy railroad bonds He traced the
downward trend OF the proportion OF
railroad bonds to the total of bonds pur-
chased. through the last ten years, and
said comparatively few such securities
are now held by individuals, but that
through the savings banks and the in
surance companies which do hold these
securities about 44,0000,O00 people are
vitality interested In their worth.
The business depression of the last
two years apd the resultant liquidation
have been unavoidable, he continued.
saying:
"The railroads have had their full
share of this liquidation, as have our
large industries, but unfortunately while
liquidation in wages in the broad in
dustrial field has taken place. it has
not, except to a small extent, occurred
in the ranks of railroad labor. They
are still receiving within 10 per cent. of
their peak wages
To substantiate his statement. Col
Molitor showed chart on which 1913
figures were represented as 100 per cent
He asserted that railroad wages last
year We're 2SS per cent, the wages of
seventy-two other unions together 1873
per cent. farm wages 1872 per cent. and
combined crop and live stock prices 122
per cent. Another comparison he maze
put railroad wages at 205 per cent.
while the cost OF living. compared with
1913 prices, is down to 164 per cent.
"Government Got Most"
The speaker also made the point that
while the railroads paid. or passed on
to the Government. $3.50, 100000 in
taxes In 1920. they paid in dividends
only 271.000.0OO. $50 the owners got
less than the Government received in
taxes" he said, and went on:
Unless the railroad problem is re-
moved from politics and an economic
and liberal policy be pursued in regard
to the railroads. the result can only be
financial disaster or Government owner
ship"
AS constructive suggestions the speaker
proposed Discontinuance Of further re-
ductions in freight rates: adjustment of
wages to conform to the cost of living !;
transfer of the railroad labor board to
the Interstate Commerce Commission;
continuation Of the s per cent return as
a measure Of rate making after March
l; prohibition of strikes by statute and
the incorporation of all unions whose
members are engaged in transportation
or other vital necessity to the public.
Reduction of rates. he said, should
await the settlement of such matters as
the consolidation of the roads, if that is
to be brought about, the unification of
terminals and the Standardization of
equipment.
Mr.. Doak asserted the greatest need
in industrial disputes Is understanding
between employers and employees. The
railroads and the men and the manage
ment are all right. but there has been
altogether too much i'll advised publicity,
sometimes in the form of paid advertise
ments. with the result that, without
knowledge Of the facts, the public is
taking a highly important part in what
are. in effect. technical discussions. A
boundary dispute, he said, would be
settled finally by engineers surveying
the line. whereas railroad problems. it
would seem, were to be settled by mex
perienced, inexpert men acting hastily.
1t would be impossible in this country.
Mr.. Doak said, to pass a law which
would compel any individual to stay on
his job. He then took up the various
means that have been found to settle
disputes, and went over much of the his
tory Of railroad labor troubles in the last
decade. Cancellation and mediation he
declared good, but held that arbitration
should be utilized sparingly and great
care be taken in the selection of the
neutrals. The bipartisan board OF ad-
justment he favored and said such
boards should be continued.
Mr.. Doak urged that the railroad labor
board be continued and suggested the
appointment Of regional bipartisan ad-
justment boards. He also emphaticaily
declared that the practice of agitating
should be stopped, as it was likely to
arouse distrust in the public mind.
At the session last night the principal
.~f- 1r1s ~
talked on the European economic and
financial situation. He said that what
the countries OF Europe now suffering
from deprecated currencles need more
than anything else is new banking sys-
tenn. similar 10 the Federal reserve sys-
tenn in this country, and operated inde-
pendent of the governments.
Something of real Importance might
come out Of the proposed Genoa eco
nomic conference, said Mr.. Vanderllp.
but he doubts such result unless the
great Powers are able to get together on
program. He thinks the conference
should be held. and that the United
States should be represented. He also
expressed the hope that the United
States will stand behind this representa-
tive in event one is sent to Italy.
Mr.. Vanderlip described national sell
tishness, especially among the newer
countries, as one of the chief troubles Of
Europe. She needs moral leadership
more than material help, he added.