The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-05-25
RAILWAY HEADS
WANT WAGE CUT
No Move to Reduce Rates Until
Pay Is Lowered.
LABOR BOARD HAS PROBLEM
Commerce Commission Withholds De-
cision on Question Until Wage
Body Completes Hearing
Compromise Is Sought.

Washington, May 23.-There will be
no move on the part of the railway
managers to reduce rates until wages
are lowered.
The railroad labor board which has
the sole power to adjust railway
wages, has practically completed its
hearings in Chicago A decision re-
ducing wages of railway workers is
expected from the board within a
month. Not until the extent of this
expected reduction is definitely made
known will the railway executives
move to lower their freight tariffs.
In the meantime the decision pre-
pared by the interstate commerce
commission ordering rate reductions
will be withheld. This action is
necessitated by the promise made to
President Harding by railway eXecu-
tives last week, for a careful in
vestigation of the rate situation to de-
termine whether it is possible to lower
freight tariffs. Before the study is
completed, it is probable that the
labor boards decision will be handed
down.
No Voluntary Reductions.
1t is now evident that President
Harding has been unable to do what
he eXpected-in bringing about volun-
tary reductions by the railway mana
gers Control Of the situation, how
ever, still remains in the hands Of the
administration. If at any time, it is
convinced that the railroad managers
are "stalling' it can Immediately re-
lease the interstate commerce com
missions decision. The belief pre-
walls however, that the situation will
undergo little change until the labor
board has acted
An o'hcial statement issued by the
railway presidents stated that the
committee meeting with the rate fixing
body was appointed as result of the
meeting with President Harding and
that the conference was for the pur-
pose of discussing the railroad situa-
ton"
But from a reliable source it was
learned that the conference of the rail
executives at the White House and
the subsequent conferences all were
brought about as a result of the ma
ture of the proposed rate-reduction
decision on which the interstate com
merce commission has been working
several months.
This decision it was stated, was
complete on Friday Of last week, but
it was decided that it would be I'M
wise to make the announcement with
out first determining the attitude of
the railway officials. This resulted in
President Harding inviting a selected
group to dine with him. They could
not then agree TO q voluntary reduc-
ton and asked to he permitted to con
fer with the commerce commissioners.
Seek a Compromise.
The whole situation from the view
point of the railway officials hinges
on whether the roads would earn n
fair return on their investment under
the proposed reductions, They con-
tend that they cannot do so without
corresponding reductions in labor
costs and are understood to have de-
clared that they would take advantage
of the transportation act, which guar
antees a fair return for the railroads.
This would result in court action and
the decision, it is said, is being held
up in an effort to reach a compromise
that would be acceptable to railroads
and ut the same time bring about
lower transportation costs.