The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-07-11
THE PUBLIC AND THE STRIKE.

terms of the new transportation act.
which substantially modified the
status of the industry and the rela-
tionships of the corporations, their
employees and the public. This meas
ure, known as the Esch-Cummins law,
reflected in its terms public insistence
that neither with the carriers nor the
unions should remain the power to
suspend transportation service in or
der to impose arbitrary demands or
policies. 1t created a body known as
the United States railroad labor
board, with the function of hearing
and determining disputes which the
companies and the men had failed to
settle. Altho it received no power to
enforce its decisions. and altho a
strongly supported demand for pro-
hibition of railroad strikes had been
defeated. the intent OF the law was TO
create an agency which would pro-
vide means for the equitable adjust
nent of labor controversies and thus
prevent stoppages of transportation.
The unions accepted the law, and
straightway made application for
wage increases in addition to those
that had been made during the period
of government control. Upon the
ground that the cost of living had
continued to rise, the board in July,
1920, granted increases OF more than
20 per cent, aggregating $500, 100000
a year. The award was based wholly
any regard to its financial effect upon
the railroads; the evidence showing
that the cost of living had advanced,
the wage scales were corresponding
ly raised. This was the decision of
nine members, three representing the
railroads three the workers and three
the public, and no one questioned it.
But when, added to the former
wage increases, it put upon the COM
panies a burden that would have
bankrupted them if they had not had
means of getting relief. they immedi-
ately appealed to the interstate COM
merce commission for authority TO
raise freight and passenger rates SO
as to provide additional revenue, and
an order was promptly issued increas-
ing those charges.
In the spring of last year, when liv-
ing costs and wages were receding.
the railroads fell into difficulties be-
cause of a severe- slump IN business.
and sought relief from the burden of
paying wartime wages. After full
hearings, at which the workers were
ably represented, the board ordered a
IL per cent reduction, effective July
1, 1921, representing an annual saw
ing to the railroads of $500, 100000 a
year.
Meanwhile the Increased schedules
of freight and passenger rates had not
produced enough additional revenue
to meet operating expenses and pay
the dividends which the government
morally underworld when 1t assumed
the power to fix both the revenues of
the railroads and the wages they
should pay. As a matter of fact, the
charges were raised so far that they
accentuated business depression, and
there was a general demand that they
be reduced. The result was that two
months ago the interstate commerce
commission ordered cuts reducing the
railroads freight revenues about
$40O. 100000 year. thus wiping out
the saving made thru the wage reduc-
ton of July, 1921.
The railroads. therefore, proposed
further decreases in wages, and,
agreement with the unions proving
impossible. the case was laid before
the federal labor board. Hearings be-
April 20. Three decisions were rem
dered. On May 2s the board an
nounced a cut of s4s.ooo.ooo a year
from the pay OF the 400, 900 mainte-
nance-of-way workers. On June il
ordered q reduction of nearly $780,
100000 In the annual wages Of 400
900 shopmen. On June 16 1t ruled
that there should be a decrease
to $26,5Oo.Do0 annually in
the pay OF clerical and station forces.
Added to the 100000, 900 cut of last
year. these reductions represented an
aggregate of $685.. 5000, 0OO-a very
men $65.0o0,ooO of the S6oo.OoO,oOo
increase given in 1920.
The vital point Isl says the Phil
adelphia North American, that the
board applied in these cases identi-
caily the same principle 1t applied two
years ago. Upon the ground that the
cost of living had advanced, it then
added $500. 200, 900 to the payroll; and
upon the ground that the cost or liv-
ing has receded, it has now ruled that
there should be a corresponding wage
reduction of 1855. 100000, which
leaves untouched the large increases
granted under government control.
In each of the three cases the labor
representatives on the board filed
dissenting opinion, and on the last
occasion went so far as to advise the
workers to resort to a strike.''