Evening star., 1932-02-28
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the railroad industry and who does not
have a better understanding Of their
willingness to reason, to sacrifice when
there Is necessity, and Of their broad
patriotism.
On the other hand. there are many
workers on railroads who do not belong
TO any union. The union representa-
tives came to these conferences repre-
senting the unorganized as well as the
organized. They were the Spokesmen
for all railroad workers
These conferences were an exemph-
fication Of the processes Of democracy
finding their way into fuller practice
in a vital section of our industrial life.
An issue was settled around that peace
full council table that was larger than
many issues that have plunged oppos-
ing groups into war and devastation.
Here industry itself undertook the
settlement of its outstanding issue. In
dustry did not resort to the cumber-
some processes of governmental ma
chinery. Industry took no chance Of
being thwarted or misunderstood or
delayed in its vital necessity by politi-
cal machinery, which Is far separated
generally from industry. 1t called to-
gether its own chosen representatives
and they grappled with and decided
upon the issue.
After the problem had been discussed
from every point Of view and after
every consideration had been weighed,
the representatives of the workers
agreed to a deduction from wages
which in a year will total that i'm
posing S250,000,000 of which 1 have
spoken. That, let us say, is labor's
contribution to the welfare of the rail-
roads. I maintain that it is contri-
button worthy of place in history, an
example of intelligent Self-control. a
spectacle of magnificent discipline.
Only where the rank and file are
organized, only where the rank and file
are informed, could such a thing be
done.
It must be remembered that the repre-
sentatives who agreed to this tremen-
douS deduction from wages must go
back to the rank and file and stand
before that rank and file, responsible
to the rank and file for that enormous
payment of money back to the rail-
roads.
Responsibility Grave.
We have here an example of the
grave responsibility that today rests
upon the shoulders of trade union
executives. Theirs is, indeed, no light
task. And, having still in mind the
enormous contribution of cash which
the wage earners have agreed to make
to the railroads, wonder where is the
organization of capital that can point
to any comparable voluntary contribu-
ton for the welfare of an industry
and its personnel.
While the negotiations between the
employees and the employers were amia-
Bile, beneath it all ran the tragedy of
diminished wages and unemployment,
of which the general public knows lit
tie. Serious unemployment had devel-
oped on the Nations systems almost 10
| years ago, and, save for seasonal jumps,
had shown no improvement.
Handling more traffic with fewer
men has been the development up to
this day. AS result the distribution
Of the railway burdens between en-
ployes and stockholders has been any
| thing but equitable. While thousands
| of workers were being laid of, divi-
dendS were regular and millions OF
dollars of SurpluseS were being recorded
| A study by the Interstate Commerce
| Commission shows that in 1880 wage
payments declined $346,000,000 from
1929, fixed charges were reduced about
| S11 100000 and dividends were in
creased about SIG, 1000. 900; depreciation
and reserves were increased by $780,
100000.
These figures give a faint picture OF
what was involved in the fundamentals Is
OF the recent conference at Caacago.
In statement to the empf1TerS at
the conference the workers were frank
in saying that their contentious were
not that the railroads as a whole were
! in a healthy condition" at the close
of 1881. ''It must be apparent" the
| statement said, that any enterprise
which must use almost its entire in
come to pay fixed charges is not in a
| healthy condition"
This i'll health, as the workers
Shrewdly pointed out, was not caused
by insufficient earnings, but an unsound
financial structure, unable to support
| the burden of a business depression.
This, it seems to me, is the very crux
, of the railway situation in America as
it exists today. These railway workers,
experienced men in the transportation
service of the country, who have given
their all to their jobs, suddenly find
! themselves in the ranks of the idle
through no fault Of their own. The
financial structure of the railroads has
broken down. The workers pay the