Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-29
RAILROADS DEMAND
NEW LEGISLATION
Carriers Want All Forms of
/ Transportation Under.
One Control.
BY JOHN F. SINCLAIR.

BY JOHN +. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, November 29.-The
railroad problem is again with us.
The Big Four Railroad Brotherhoods
have come out for the 6-hour day and
the 5-day week, without any lessen
ing of pay, as means for relieving I'M
employment.
A general conference of all the in
terests affected-railroad presidents
bankers, representatives of the public
and the railroad unions-is to meet
soon to draw up comprehensive plan
of action.
Railroads are the greatest employers
of labor in the United States. The class
one railroads, in August, 1929, employed
1859, 533 people. A year later, August /,
1880, they employed 1,514,367 persons.
The monthly compensation for en-
ployes in August, 1929, was $259, 985.
1913. One year later, in August, 1880,
1t was $215,856, 280.
Thus in IL months there was re-
duction of PAS persons employed
and $44,229,o54 in monthly compensa-
ton.
Earnings Decrease.
But railroad net earnings have been
decreasing sharply, too The railroads
have their own difficulties to face at
this time. Shorten the working day and
week, without reducing pay, would OF
course only add to their troubles.
Thomas F. Woodlock, ore-time men,
Der of the Interstate Commerce Com
mission, says that such a plan can
only be carried through "by the rail-
roads employing more men. But it is
equally manifest that the railroads cam
not afford to spend any more money at
this time"
It is huge problem. Railroad credit
itself is involved, for railroad bonds are
the foundation of life insurance port
folios.
No, the problem cannot be met by a
gesture. 1t must be studied carefully
and decided upon its merits. For a
crisis could very easily be precipitated
by hasty legislation or by forcing the
wage issue.
The railroads are facing a serious
situation. The managers see business
slipping away So plan to strengthen
their place in the business world has
been decided upon.
They demand new legislation from
Congress putting all forms of trans
portation under the Interstate Com
rnerce Commission. Their demand in
cludes oil and gasoline pipe lines motor
vehicles, and coastal steamship lines,
and a removal of certain restrictions OF
railroad operations, believed to be oner-
Gus and unfair.
Carriers Contention.
Thus Congress again is to be the
storm center. Prof. Ripley in mag
azine article recently said the railroads
must be allowed to consolidate II they
are going to survive. So far, little OF
no consolidation has taken place.
But the railroads, according to the
association of railroad executives. de-
rnand that Congress compel the OF! IN
drstrv to divest itself Of 100000 ,00C
investment in oil pipe lines, because
millions of barrels of oil are being trans
ported that way. Here the railroads
have lost out. The railroads also de-
mand a chance to operate steamshll
lines along the coast and on the Grea'
Lakes (now forbidden by the Panama
Canal act0. and ask that the Interstate
Commerce Commission be authorized u
put passenger and freight motor pus
lines under the same regulation as al
other transportation. :.
The next session Of Congress Is
likely to see another big railroad ngnI
Reparations AMI Private Debts.
DR.. Hans Luther, president of the
Reichshank has made 1t plain that nc
German appeal for revision OF repara-
tons would affect the legal status OF
private debts"
This is an important statement from
the head of the German banking
system.
GERMANY will not refuse the prompt
payment of any obligations OF pri-
vate character or the obligation Of in
dividual creditors" says DR.. Luther.
Germany will meet her private OBJ
LEGATIONS regularly as they fall due"
But on the matter of reparations, DR..
Luther made it just as plain that pay
ments were conditional on Germany
being able ito command sufficient ex-
port market" He contends that the
"Young plan is feasible only If 1t is
able to command foreign capital al
cheap interest rates, while Germany
economic energies can unfold them
selves when the pressure OF short-tlme
credits disappears"
Every dsy brings a moratorium on
German reparation payments closer to
reality.
German Obligations.
How much does Germany owe to for
eigners today?. The German Federal
Statistical Bureau estimates that al
her foreign creditors on balance OF
investments at home and abroad about
$4.250, 100000.
Germany's ability to pay reparations
Is represented by the amount OF the
surplus of her exports over her i'm
ports-in a word, the amount of her
foreign sales less her foreign purchases
That is all she can pay. or course
she can carry on Indefinitely as long
as she can borrow money outside.
But in the long run, this borrowing
too, comes up as an increased overhead
because every dollar borrowed means
more interest to pay every year. And
Germany has plenty to pay already.
Rockefeller Statement.
John D. Rockefeller, jr., made re-
mark upon his arrival from Europe that
IS well worth repeating.
Asked If he could vision the new war
clouds lowering over Europe, he replied
lone hears what one goes to hear
Those who go abroad looking for wal
think they see it. Like gossip, 1t goes
into the ears that are ready to hear It
OF course, am not deprecating the fact
that there are problems. But l don
think they will lead to war"
An excellent thought for these times
(CopyriTht 1890 by North American News
paper Alliance)
Maryland G. Pennsylvania Rwy.
BALTIMORE. November 2s tspeciaD
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