Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1922-06-08
E DITTO RIAL.
FREIGHT RATES AND WAGES

FREIGHT KAlES AND WAGES
Ut is regrettable that the railroad
workers seem to find it necessary
to take strike vote at this time,
with the apparent likelihood of an
overwhelming decision to walkout as
q result of the wage reductions an
nouneed for July |. While all good
citizens wish to see the railroad man
receive the fullest benefits of his
labors, and while it would be to the
personal interest of every business
institution in Americas to see the
railroad men here paid high wages
because that would mean they would
have money to spend, there are two
sides to every question, this among
them, and we repeat, it is regrettable
that the men will even take a strike
vote at this time.
We say this because only a few
days ago the Interstate Commerce
Commission in single order reduced
freight rates which, it is estimated,
will reduce the revenues of the rail
roads of the country by $6O0,000,-
600 per year. These reductions will
become effective July l and it cannot
but be several weeks at least-and
probably a few months before they
will be felt by the public in lowered
cost of living, as they are certain
to be.
Six hundred millions in one or
der! The wage board in its first
reduction order few days ago cut
off S48,O00,000 of railroad expense
and that last Tuesday cut off another
S6O,OO0,000; there are more to come,
but hardly as much as $500, 900 900
in total
The workers argue that the reduc-
ton will lower their standard of liv
ing. 1t probably will do so for the
flrst two or three months. After
that the result of the rate reductions
should make itself felt, and the bal
ance restored and more.
Unless it be argued that the men
are now underpaid, it would appear
OBVIOUS that the cuts in rates and
wages very largely should offset each
other after brief period of read
JuStment. And the general effect
should be very pronounced. 1t
should be a conspicuous husipess
stimulator, resulting in more general
employment than today among the
lailroad men, as well as other trades,
ana consequently greater income,
When judged by the standard of pur-
'haslng power of income received.
The monthly letter of tho Alexan-
uer Hamilton Institute, a great in
stltution of economies, comments
very llluminatingly on this tonic as
follows:
Trade revival would have davel.
opeo before the end of the wear with
out cut in freight rates, but pros
Pefi'y Will be substantially healthier
anu more pronounced because of the
reduction announced In tako e..
July l. The cut of 10 per cent viii
oe based on rates of August 1901
The lower freight rates will oa,,s.
some reduction in retail prices u
Oh,
Is short-sighted, however. to cons;don
only the lower cost of transportation
on goods from the factory - H.
taiief IN estimating the full banofi+
oi cheaper transportation. Fac+or;or
WIN now be able to get cheaner oo,1
FACTORY labor will benefit FROM, =
Increase IN the cost of shipping bricls
ana cement, as this will helm n,oaa
ulaoiy IN reducing rents. The cos+
u making steel will decline ovar
uoiiar ton. Cheaper fuel, food ona
construction will reduce the f.o4a
cost OF every class of mercband;.o
me reduction in the price of anv ono
Shipment of goods will seem emou
put the diffusion of cheaper trans
poi'a'lon throughout the different
processes OF production and distribu-
e , VIII bring the purchasing power
uIierent industries into better hal
ance. Dai-
ne unbalanced relation Of trans
a -
poi'a'lon to other Industries was
partly due to the failure of the Rail-
way Labor Board to function intelli.