Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-16
RAIL WAGES HINGE
ON |. c. C. DECISION
Roads Expected to Propose
Pay Reduction if Rate
Increases Too Small.

That the decision Of the Interstate
Commerce Commission on the applica-
ton of railroads for Is per cent in
crease in freight rates will come very
soon is the only aspect of the decision
about which there is certainty. The
IL men composing the commission are
as independently free to come to their
own conclusions within their field as
the nine men composing the Supreme
Court within their jurisdiction.
The occasional public surm1seS abcut
the commissions pending decision are
surmises and nothing more. Practically
none Of these surmiSes suggests the
commission will grant the full Is per
cent fatty. Practically no one thinks
the commission will deny the railroads
any relief whatever. All assume the
commission will, as the phrase goes, 10
something" for the railroads. The de-
gree Of the surmised something" Is
necessarily extremely elastic.
Wage Reduction Possible.
1t is certain that, Just as soon as the
commission hands down its decision.
there will be hurried scratching of
railroad pencils to determine how much
the decision will amount to in its effect
on total railroad earnings and. there
fore, in it's capacity to save some
threatened railroads from failing to earn
the interest on their bonds and other
fixed charges. Upon this compilation
will depend the question whether the
railroads will insugurate a movement
for reduction of the wages Of railroad
workers
The common Judgment among rail-
road officials is that the increase in
freight rates. whatever It may amount
to, will hardly be enough to save all
the railroads, and that they will be
obliged to consider a reduction In
wages. This common Judgment is
shared by railroad workers. Both
groups practically take it for granted
the question of wage reduction will
come up.
There is gossip in railroad circles to
the effect that some Of the heads OF
railroad unions are as convinced as
need to be readjusted. Some union
officials are as expert in their knoWl-
edge Of railroad conditions as the rail-
road presidents themselves. Some of
the heads of the unions are equally
disposed toward taking general condi-
tions into account and toward acting
comparatively in the common interest
of the railroad industry rs a whole.
Some Would Not Resist.
1t is understood some of the heads
of the unions would not seriously re-
sist a reduction in wages, provided 1t
we're specifically arranged that the re-
duction should be for the period Of the
depression only, and that thereafter
wages should rise in proportion with
increased volume of traffic and, there
fore, with increased railroad prosperity.
While some of the officials of the
10 q
others are less accommodating in spirit
Among these are a small number OF
union officials in some parts of the
country who believe in Government
ownership, and their personal policies
at such time as the present are likely
to be determined by whatever would
promote the idea of Government own
ership as an ultimate objective.
Long Delay Foreseen.
Unless there is compromise and mu-
tual agreement, presumably upon a
sliding scale of railroad wages, the
process of effecting a reduction in
wages would consume a long time. II
is not possible with the railros dS. as
1t was with the steel corporations.
merely to announce reduction in
wages and put it in effect on a fixed
date. Virtually all the railroads have
intricate contracts with railroad unions
Under these contracts and other ar
engagements the railroad companies, OF
group Of them, can announce pur-
pose to reduce wages. After such an
nouncement. the unions have 80 days
in which to reply. II the unions dc
not agree, the dispute is carried to ar
official Government board of media
ton The board has power only tc
exert what Is called It's good Offices.
Tf thu hOor ~ c6NI1ld 40 c1lpnaSCf1l1 tr
mediating, the next step would be 9
board of arbitration in which the rail-
road companies would appoint one
member, the unions one member. and
these two would agree on a neutral
member. The process as a whole could
readily consume several months. M. s.
(Copyright, 1912