Evening star., 1932-09-27
Delaying the Rail Wage Issue.

The Presidents suggestion that further
discussion Of additional wage cuts for
railroad labor be deferred until the end
Of the year is addressed of course, to the
carriers. Railroad labor has already
declined to discuss the matter now. And
the carriers will doubtless be willing
enough to accept the suggestion in the
knowledge that there is not much to
lose, and there Is the hope, at least, of
something to gain by this delay.
Whether that hope will be realized de-
pends upon the economic situation.
Secretary Doak's statement points out
that 1.-The general economic situation
would be much clearer at that time"
the end of the year. and the nego-
tiations then could be based on a better
realization OF the actual circumstances
existing" Obviously, the situation will
be changed to some extent, for better or
for worse
The original suggestion from the car
riers that the subject of 20 per cent
wage cut to be substituted for the wage
reduction of 10 per cent voluntarily
agreed upon last February by rail labor,
be discussed now was made to prepare
the ground for the conditions that
must be met when the 10 per cent
agreement expires. The 10 per cent
wage cut was agreed upon at a time
when the ability of the carriers to
meet their fixed charges was uncertain.
The Interstate Commerce Commission
had denied petition from the car
riers for horizontal rate increase,
which. 1t was estimated, might produce
s40c 900 900 additional revenue. The
wage cut saved the carriers about
s215 900 900, and an emergency in
crease on certain commodities, allowed
as an alternative by the Interstate
Commerce Commission, was estimated
to yield in the neishborhood of $115,-
100000. But the yield from the COM
modify rate increase has not come up
to expectations. The estimates now
are nearer sec. 1000 900 than s115,ooo. =
600. And the increase in rates will
be suspended March 81 next unless the
Interstate Commerce Commission ex-
tends it.
Since last February, Of course, there
have been a few encouraging develop
ments. The creation of the Reconstruct
tion Finance Corporation has provided
the railroads with new source of
credit. Of which some of them have
aYailed themselves. Some Of the critical
emergencies have been met and passed,
and this Fall gives signs of the long
anticipated revival of business, the full
extent Of which cannot now be judged
But while the delay in reconsideration
OF the wage question may produce more
definite knowledge of the economic situ-
alton. it Is impossible to escape the be-
lief that the railroad wage question will
demand renewed attention regardless of
what happens by February. The delay,
in other words, merely means postpone
ment of the time when the issue Is to
be faced
How 1t will be met no one at present
knows. Railroad labor will naturally
regard further wage cuts as the last
resort. The carriers have intimated,
on the other hand, that if discussions
are not agreed to voluntarily by labor,
they are prepared to adopt q definite"
policy, and this policy in all probable
ity means recourse to the machinery
established by the Federal Government
for rail wage adjustment. That would
be intercession, at the carriers request,
by the Beard Of Mediation and the be-
ginning Of a necessarily long period of
protracted negotiation.