Evening star., 1931-06-26
Wages and Consultations
Linked With Railroad Rates

Public discussion Of the petition from
the railroads of the country before the
Interstate Commerce Commission for
leave to advance freight rates Is per
cent Is based largely on wage considera-
tionS and the effect on general prosper
ity. In some agricultural sections it is
denied that the desired results can be
achieved by the rate increase. Some
others hold that consolidation is the
remedy for transportation difficulties.
Substantial support for the railroad
executives Is given.
"If the commission should refuse the
request, the roads may get into such a
serious condition that the whole country
would be affected adversely" contends
the Rock Island Argus, adding that
aside from that consideration the re-
quest should be granted as a matter of
justice and right" The New York Sun
poitltS out as q reason for a sympathetic
attitude that 1.-The roads are not in the
position Of corporations. which in flush
times can pile up surpluses that will
help them through a depression" be-
cause, mo matter how much a roads
business may improve, no matter how
efncient its management, the law hxeS
534 per cent as its maximum return"
Here Is an emergency" according to
the Chicago Daily Tribune, which must
be met, If at all, with emergency meas
ures. AS such the petition Of the rail-
roads deserves prompt consideration by
the Commerce Commission. We do not
think the railroad presidents themselves
can regard q horizontal rate increase as
anything but temporary expedient, to
be modifed as the conditions Of traffic
demand. It will do the railroads little
good to be granted the right to charge
IS per cent more than at present for
carrying shoes, for example, If the guam
tity Of shoes carried is sharply decreased
as . result Of higher rates. All that the
railroads may hope to do with profit to
themselves, II the rate increase is
granted, Is to regard 1t as permissive
limit within which to make readjust-
ments which win not Stifle business or
throw it to the ships and trucking
lines"
added emphasis" thinks the New
York Herald Tribune, "ts given to the
financial embarrassment Of the railroads
by the contention OF the carriers that
the only alternative to higher freight
rates would be reduced wages. The
dificulties Of the railroads, compounded
by the recent increase In competition by
the automobile and other forms Of
transportation, have unquestionably had
much to do with the recent uncertainty
pervading the business and financial
community. Positive and early action
In one form or another by the Interstate
Commerce Commission with respect to
both consultations and rates Is ur-
gently desirable, not only In the interest
Of the railroads themselves but Of the
whole country"
''Under existing Federal law" re-
marks the wall Street Journal. IAN at
tempt to lower railroad wage scales
could probably be blocked for something
like q year and then possibly defeated.
The steam carriers must meet a reve-
nue. emergency in one way or another.
Is 1t preferable in the general interest
to push them to the extreme of indi-
vidual defensive measures, involving
physical impairment, more idle men and
at least few carrier bankruptcies, or
to pay them a little more for perform
ing three-fourths of the transportation
service which the country must have?
Save In historical sense, the present
procedure has nothing to do with fair
return 1t deals with practical conse-
quences.''
Were the railroads to institute gen.
eral wage reductions, 1t would undoubt-
edly be the signal for cuts all along the
line" says the Charleston Is. CO.
Evening Post. suggesting that ait
would bring on industrial disorders and
il-feeling that would be carried over
into the election campaign" That pa
per believes that general reduction in
purchasing power through reduced wage
distribution is not calculated 10 speed up
the return to prosperity" The Houston
Chronicle makes favorable comment
with the conclusion that ''the prosper
ity Of the railway wage Garner Is inev-
/ itably linked with the prosperity of the
stockholders" Recognizing wage cuts
| Courant advises that "anything that
dement's the railroads In times Of crisis
should react directly to the benefit Of
the country, and the attitude of all con-
cerned should be tempered by that real
izatiou."