The Birmingham age-herald., 1922-04-02
RAILROADS FACED BY REAL CRISIS.
 SAYSL. SEVER
Receivership or Government Control Is Only Solution of Present Tangled
 Conditions

There are several phases of tho present situation of the railroads operation that are not clear to the travelling and shipping public. and unless cleared away and relief had the public can see but one end, that of government control of the trans portation companies" said L. Sevier. president of tho Alabama Manufac- turers' association, yesterday.
 It is well recognized fact that prices of practically all commodities are returnig to pre-war levels, and with many crafts of labor (other than those employed by the railroads)s the wage scale has been reduced, and why Congress should enact a law pro- tecting certain class in wage scales by the appointment or a lapor board to give such protection to a certain class it is difficult for the average mind to grasp, especially when it is known that In giving such protection the public, the users of the railroads, must pay the high rates now charged to enable the railroads to pay the
 high wages to their employees and to this subject the public is now giv- ing its attention. It cannot be claimed that the public has borne the 1 burden impatiently, but how long it will be satisfied to continue to bear the burden time only will tell, though ! not unmindful of the fact that the Railroads have had much to do with the progress of the country. Prior to the enactment of the Adamson bill In 1918 the railroads were paying to their labor sum approximating S1,- 4os,oOoooo annually. In 1917 they paid $i,739 100000. On or about Jan- uary l, 1918, the railroads were taken over by the United States govern ment. and during that year the raiI- roads labor account amounted to s2,- 6l5,oooo00, and in 1919, while still under government control, labor cost S2,S45.ooo,o0o. The government gave up it's direct control of the railroads May l, 1920, but the labor board ss- abolished under an act of Congress again increased the wages of the railroads so that Tn 1920 the wages amounted to $3,sss, ,ooo, ,ooo. which re- suited in an increase of 15o per cent between 1918 and 1920.
 Something Radically Wrong.
 notwithstanding the great increase in revenue from traffic handled with in this period the tremendous in- creases In expenses reduced the pro- portion of the gross revenue that was available for fixed charges and oivi- dends from za per cent of the gross revenue in 1916 to practically i per cent of the gross revenue in 1920. This exhibit alone shows something radically wrong, and should be cor rected. This being true, one natur- ally asks. 'Why?' The answer ad- vanced Is the high living cost, but when we analyze this we find 1t is not Justified as when taking the Iiv- ing cost in 1s14 at the beginning of the Great war as 100 the cost of liy- ing July, 1920, was 2o4; January, 1921. 1s1.2; June. 1921, 161.s; July. 1921. s1s1.s; July, 1921, 1881. While the railroad wages compared with those of i9f4 taken as f8o- were Julv. 1920. 271; January. 1921. 27l; June lssfs zss: July. 1921, zss. and which were substantially in excess of wages in other industries. Again considering the question of purchasing power, which we find was as to 100 in 1914; f3s. in 1920; Janu- ary, 1921, 151; June, 1921. 2ss; July,