Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-29
LABOR HEADS warn.
AGAINST PAY CUTS.
Rail Brotherhoods' Officials
Nom CommittaI on IS Per
Cent Rate Boost.

developed late yesterday non-com-
initial declaration on the Is per cent
freight rate increase sought by the lines
coupled with direct warning against
any wage cut and threat of resistance.
An expression on the four-SyStSm
merger plan by the Eastern lines was
in prospect today, as was statement
on the six-hour day or flve-day week
that the brotherhoods are agitating.
Deliberate Two Days.
The statement treating with rates
and wages was made public after two
days of elaboration by the officials
of 81 unions who are holding their
sessions in the Offices of the publication
Labor" and deprecated the injection
Of the wage issue into the Interstate
Commerce Commission hearing on the
proposed rate boost.
THE petition of the railroads for a
Is per cent rate increase should be con-
sidered on its merits" the statement
said THE commission will not lack
information, advice and assistance IN
determining whether railroad revenues
can be, and ought to be, increased
through freight rates.
I'VE are in favor Of increase In In
stances where the facts disclose that
such increases are justifiable." The
railroads seek blanket increase.
The labor leaders explained that the
nay issue had been brought into the
for the, increase, and through objections
to the proposed rate raise on the ground
that wages should be cut
Wage Question Foreseen.
At the time the railrods filed their
petition. it was said that the question
might be raised as to the reasonable
nf
being done at present both because
of the time that would necessarily be
consumed on any wage negotiations,
and for the added reason that the
policy of the Government and indus
try is that revival of business is
predicated upon maintenance of exist
ing wage scales
At the Interstate Commerce Commits
sion hearing, the matter came up when
H. A. Scandrett, president of the
Chicago, Minneapolis g. St. Paul, was
questioned by an attorney as to whether
he thought wages were too high.
Commissioner Meyer interrupted to
say that I'VE shall have to deal with
wages as they stand" adding that this
question must come up before another
authority-the Board of Mediation.
Text Of Statement.
The text of the brotherhood state
ment follows:
The petition of the railroads for a
IS per cent rate increase (Which was
filed with the Interstate Commerce
Commission on June I'D should be
considered on its merits. There is
law governing the duties of the Inter-
state Commerce Commission and pro-
viding the standards for reasonable
rates.
IF under the law the railroads are
entitled to earn more money and a
freight rate increase will produce
additional revenues, the railroads can
properly appeal to the Interstate Com
merce Commission for relief. The
commission is we'll informed, public
spirited body, possessing the ability and
authority to fix just rates. The COM
mission will not lack information, adj
vice and assistance in determining
whether railroad revenues can be, and
ought to be, increased through increased
freight rates.
We are in favor Of increases in in
stances where the facts disclose that
such increases are juStif1able.
Unfortunately the question of the
reasonableness Of railway wages has
been injected into the pending proceed
ings, first through its discussion in the
railroad petition. and then through OBJ
jections to the rate increase offered by
various professionals claiming that in
stead of increasing freight rates the
roads should reduce wages. The in
lection of this issue in the rate hear
ing Is unwarranted.
Can't Rule on Wages.
THE Interstate Commerce Commits
sion has not been given jurisdiction
to determine the reasonableneSs of
railway wages. On the contrary, other
49,
vided to supplement collective bargain
ing by which 1t Is the settled legis-
lative policy of the Government that
wages should be fixed. A debate be-
fore the commission between railroad
labor and railroad arrangements upon
the reasonableneSs of wages would be
out Of place. It would be clearly i'm
proper for railway arrangements or
others to attempt to raise this wage
issue before the commission, and TO
ask the commission, even by delicate
suggestion, to join in criticizing the
administrative machinery provided by
Congress to determine the reasonable
ness of railway wages. But since this
issue has been raised. the railway labor
organizations wish to make their posi-
ton clearly understood.
1T Is not true that railway wages are
high. The vast majority of men in
and have not earned for years, wages
equal to those of men engaged in SIM
liar work, calling for similar skill, in
private industries. There are several
hundred thousand railway men who
have been out Of work for over year.
There are as many more who have been
working only part time for many years
A substantial part of this burden of I'M
employment is being carried by the men
Nn a t..
OF prosperity railway workers failed to
gain increases ,proportionate to general
increases of wages, and no large group
OF industrial workers has suffered more
than railway men from the displace-
nlent Of man power by machines More
trafac was handled by the railways in
1929 than in 1920. with $4,000 less
men. This year an additional 100000
are unemployed and a large percentage
Of those remaining are working part
time.
Railway Labor Underpaid."
Railway labor has submitted its
claims to arbitration after arbitration
in the last five years and without ex-
ception impartial boards have found
that railway labor was underpaid. The
Nationwide depression of today has
been caused by low wages, by excessive
profits of the few and the underpay-
ment OF the many, whose purchasing
power would not absorb the flood Of
goods that industry produced.
There Is very good reason WHY
well informed railroad executives have
not responded to the pressure of out
side forces urging wage reductions
The facts will not support such a de-
nand. There are several hundred
thousand men in the lower-paid
groups of railway labor earning less
than 81 900 year. There are several
hundred thousand in the medium.
priced groups who earn less than 81 500