Evening star., 1922-12-08

than competitors of he railroads.
and the motor truck should be-
come coordinate factor in our
great distributing system.
Problem Must BE Met.
This transportation problem can
not be waived aside. The demand
for lowered costs on farm prod
ucts and basic materials cannot be
ignored. Rates horizontally in
creased. to meet increased wage
outlays during the war imitation,
are not easily reduced When some
Very moderate wage reductions
were effected last summer there
was ) per cent horizontal reduc-
time. in a very informal way. to
rave the railway managers go be-
lore the Interstate Commerce
" 'ImlSsion and agree to a heavier
reduction ON farm products and
coal and other basic commodities.
and leave unchanged the freight
tariffs which Il very large portion
or the traffic was able to bear.
Neither the managers nor the COM
mission saw mt to adopt the Sug
Eestion. so we had the horizontal
reduction too slight to be felt by
the higher class cargoes and too
little to benefit the heavy tonnage
calling most loudly for relief.
Fair Returns Expected.
Railways are not to be expected
to render the most essential serv-
ice in our social organization with
out falr return on capital in
vested. but the government has
gone so far in the regulation Of
rates and rules of operation that
II has the responsibility of point
Ia, u al A..
costs so essential to our national
welfare
Government operation does not
AFFORD the cure. 1t Was govern
m.nt operation which brought us
to the very order of things against
which We now rebel. and we are
Still liquidatins the costs of tha,
supreme folly.
Surely the genius of th. railway
builders has not become extinct
among the railway managers. New
economies. new efficienrieS in CO.
operation must be found. The fact
that labor takes 80 to 90 per cent
of total railway earnings makes
limitations within which to effect
economies very difficult but the
demand is no less inSistent on that
account.
Clearly the managers are with
out that lntercarrier. cooperative
relationship SO highly essential to
the best and most economical OPP
Grafton. They could not function
in harmony whsn the strike
threatened the paralysis of all
railway transportation. The re-
lationship of the service to public
welfare. so Intimately affected by
state and federal regulation. de-
mands the effective correlation and
Il concerted drive 20 NEE: an in
sistent and justified public de-
inand.
Merger of Lines.
The merger Of lines int" sys-
tens. facilitated Interchange "f
freight ears. the economic use of
terminals and the cunSolidatio ton of
facilities are suggested ways OF
economy and efficiency.
! remind YOU that Congress pro-
vided joint commission of aGri-
cultural inquiry. which made AN
exhaustive inveStisa alton of car
service and transportation and
unanimously recommended IN its
rcpor; of October -. 1921. the
pooling of freight cars under
central agency. This report well
deserves your serious consIdera-
ton think we'll of the central
agency. which shall be creation
of the railways themselves, I"
prov ide. under the jurisdiction of
the Interstate Commerce Commls-
sion. the means for financing
equipment for carriers which are
otherwise unable t" provide their
proportion of Car equipment ade-
uuate to transportation needs.
This same agency ought TO point
the way to every possible econ
omy in maintained equipment and
the necessary interchanGeS IN rali-
way commerce.
In previus address to the Con-
eress I called to your attention
The insufficiency of power to en-
force the decisions of the Railway
Labor Board. Carriers have 1G-
nored it's decisions: on the one
hand; railway workmen have chal-
,enged its decisions by strike.
on the other hand.
Federal Agency Necessity
The intent of Congress to eStah-
lish a tribunal to which railway
labor and managers may appear
rcspectinS questions OF wages ana
working conditions cannot ne too
strongly commended. 1t is VI
tally important that some such
agency should he guaranty
against suspended operation. The
threat of discontinued service.
Sponsoring the railroads as We
do i, is an obligation that labor
shall he assured the highest jus
tire and every proper conSidtfa-
tjon of wage and working c"ndl-
tions. but it is an equal obligation
I, see that no concerted action IN
forcing demands shall lepriV" IN"
pIIblic of the transportation s"f\-
ice essential to its very existence
II is now impossible to safeguard
nuLlic interest. because the de-
,rees of the board are uncnf"rce-
able against either employer or
cmplnyc.
The Labor Board itself is not s"
constituted as best to serve the
p,1bIir interest. With six partisan
members on a board of nine. three
partiSans. nominated by the en-
ploycs and three by the railway
managers. il is inevitable that the
partisan viewpoint is maintained
throughout hearings and decis-
IONS handed down Indeed. the
few exceptions to a strictly partl-
san expression in decisions thus
far rendered have been followed by
accusations Of betrayal OF the par
tjsau interests represented. only
the public group of three is free
to function in unbiased decisions
Therefore the partisan member
ship may well be abolished. ana
decisions should he made by an
impartial tribunal.
Washington as Headquarters.
I am well convinced that the
functions of this tribunal could ne
much better carried on here IN
Washington. Even were it to be
continued as separate tribunal.
there ought to be contact with the
Interstate Commerce Commission.
which has supreme authority IN
the rate-making to which wage
cost bears an indissoluble relation
ship. Theoretically. a fair and liv-
ing wage must be determined qultc
.anart from the employers earning
capacity. but in practice. in the
railway service. they are insepara-
hIe THE record of advanced rates