The New York herald., 1922-10-30
RAIL BOARD ATTACKS
1.-THE living WAGE AS
IA RUINOUS PRINCIPLE
Declares 1t Would Wreck
Every Road and Spread
Communism.
BASIS CALLED FALSE
Family Budget Plan Found
ed OH Figures to Deceive
Unthinking.
TRACKMEN GET ADVANCE
Wharton, Labor Member, Dis
sents From Decision as Be-
=. Il onuokn
TRACKMEN GET ADVANCE

CHICAGO, Oct. 90 (Associated Press).
Attacking the theory OF 'The Living
Wage" as a basis for determining
wages of railroad workers. the public
and railroad groups Of the railway
labor board in an opinion made public
tonight declared such a course IF
carried to its legitimate conclusion
would wreck every railroad in the
United States, and IL extended to other
industries would carry them into Com
munistic ruin"
The opinion, in the form of re-
joinder to dissenting opinion filed
by A. c. Wharton, labor member, In
he recent decision increasing the pay
OF maintenance of way employees two
cents an hour, declared if to the en-
ployees were granted a 72 to 70 cents
minimum wage for common labor.
with CO spending differentials for
other classes. an increase OF 1854 per
cent. in, the nations railroad wage bill
would be necessary.
This. the opinion said. would add
$3,122,952.3S7 to the annual payroll,
bringing It to 5ss,445.ss3. which
would rcsan. it added. an annual def
icit to the carriers of s2,241 ,6S9.51s.
Effect OF 4S Cent Minimum.
slTven if the As cent minimum wage
requested by maintenance Of way
men were granted and corresponding
differcntials were made for other classes
of employees. tncv op,nfun sasd::--an IN
crease OF 5o.45 per cent. in wages would
be necessary, adding s1.24s.:so,ss4 to
the annual wage bill Of the roads. bring
ing It up to s3,725.Ss4.54o. thus forcing
the carriers TO face an annual deficit OF
s37s,07s.125.
The phrase Giving wage" was termed
N the opinion as "a bit OF mellifiuous
VI -aseology well calculated 20 deceive
IA unthinklng."
~ .If the contentious were that the
board should establish "a living wage
the majority would readily accede to
riic proposition" the opinion said, "and
as a matter of fact the board in this
4 living wage. But the abstract, elusive
thing called the living wage, con-
fcssedly based upon a makeshift and a
guess, cannot receive the sanction of this
board. because II would be utterly I'M
;,ractical and would not be Just and
reasonable as the law demands
Mr.. wharton's dissenting opinion and
the supporting opinion In reply are at
rached to the formal decision increasing
nf mi inf IN nf ura m
ployees two cents an hour. establishing
a minimum ranging from 25 to 81 cents.
The United Brotherhood of Maintenance
OF Way Employer railway shop la
borers, held a strike order affecting
100000 men In allegiance last July after
the board had reduced wages pending
a request for an increase based on the
contention that the costs of living had
advanced and wages In other industries
had been raised.
Refused TO Accept Principle.
When the case came up maintenance
Ii way officials asked the board TO si,b-
scribe to the principle Of the Giving
wage based on a budget of what was
required for an average family of five
persons TO live In health and reasonable
comfort A majority OF the board re-
fused to subscribe to this principle, as
serting that the transportation act called
FOR establishing Just and reasonable"
wage and that a just and reasonable
wage was in effect living wage.
The maintenance of way organization
asked the board TO establish minimum
rates OF pay OF 4S cents an hour to re-
place rates then In effect ranging from
90 to 35 cents. After deadlock of
several days the board made public its
decision formally handed down to-day
increasing rates of pay two cents an
hour and adding about s20,000.0o0 to
the railroad payroll.
The decision asserted that the in-
crease was due mostly to the fact that
higher rates OF wages were being paid
Tor the Same classes of work In other
Industries and that there had been no
apprecable increase in the cost OF liv-
ing.
Mr.. Wharton In his dissenting opinion
maintained that the Fundamental err
rorv OF the decision rested on failure 70
INQUIRE into tho adequacy of rates OF
pay established for section men and
unskilied laborers." He asserted that
rates OF pay in other industries of SINH
lar character should be made a second
ary confederation and that the prime
factor TO be considered was whether
the rates fixed were Just and reason
able, which he said meant an adequate
and living wage under the transporta-
tion act.
He maintained that the law OF supply
and demand. which operated In private
industries to fix the price of labor.
should not be taken as basis by the
labor board. The board he contended
should find what should he a just and
reasonable wage by computing n family
budget containing the expenses of the
average family.
Mr. Wharton declared that the living
wage principle was practical. asserting
that added labor costs would bo abb
Continued on Page Seven.