Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-23

Railroad Wages.


tiyea have been unable to reach an
agreement on . proposed cut In the
wages OF the workers The executives
proposed 3 voluntary ten per cent wage
decrease which has been rejected by
the representatives Of the employees.
The conferences, however were con-
Quoted in . friendly spirit, and both
sides gave expression to this fact In
their statements at the conclusion OF
che conferences.
The country could III afford TO have q
general railroad strike on its hands at
this time-at any time, and especially at
such . time as the present. SO far there
have been no indications that such a
strike is to happen. with its disastrous
consequences for the railroads and the
workers, and particularly for the entire
country, whose commerce depends so
greatly on the transportation system.
It IS not probable that either the rail-
road executives or the workers them
selves viii undertake steps calculated to
bring about a strike, but rather that
they viii use every effort TO arrange the
dificulties In which the roads now find
themselves. The interests Of the roads
and Of the workers are mutual In many
respects, q fact that Is recognized by
men who have worked many years both
a. laborers and SIS executives Of the
railroads.
The railroad executives have indi-
Gated that failing to obtain consent to
q voluntary cut In wages, the roads win
proceed individually to seek reductions
In accordance with the terms Of the
transportation act. These can for
further conferences between the execu-
tives and the workers, with impartial
mediators.
Admittedly the railroads are In q
difncult position, 30 difficult that pre-
dictions are made here and there that
the roads themselves viii be found
seeking Government ownership and OPP
GRAFTON unless the situation materially
improves within the next year or two.
Many OF them have been unable to
earn dividend charges during the long
stretch of business depression. The
roads united in request to the Inter
state Commerce Commission not long
ago for q nat fifteen per cent increase
IN freight rates. and the commission
turned this down, offering as q substi-
tuts q plan to increase rates on GER
tain commodities with a proviso that
the gains made by the roads from these
increases should be pooled and used
70 aid the weaker roads to meet their
interest charges. This has so far been
unacceptable to the roads, who in their
turn have offered . substitute plan,
proposing that these pooled gains
should be loaned" instead Of given to
the weaker roads.
II che roads are unable 10 better
their condition by increasing rates and
md it impossible 70 reduce wages,
which Is their largest single item Of
expenditure, their only hope seems 20
lie in ar early upturn OF business,
The chief reason cited by the repre-
aentatiyes OF railroad labor for reject
ing the plan Of the executives for
ten per cent wage cut was that the
executives were unwilling 70 give as
Eursnce that the money saved by the
cut IN wages would be used to give
wider employment to railroad labor or
to stabilize the present employment Of
railroad labor. We do not believe,
said the labor leaders. that wages
should be cut 70 pay dividends" They
added that the workers were asked TO
take ten per cent from their earnings to
support idle capital
Railroad executives pointed out that
the purchasing power o. the workers
dollar had been increased greatly be
cause OF the reductions in prices Of
commodities. that the proposed wage
scale would stin give the workers greater
purchasing power than they had under
the present scale when it was first set
up. before the depression came.
Some solution Of the problem Of the
railroads must be found i they are to
continue to operate indefinitely. pri-
yately owned That is obvious Un-
doubtedIy the problem win be ap-
preached and must be approached
sanely BY these three groups 50
greatly interested, the workers, the
owners and the shippers There must
be give and take if the whole system
is not to fall
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