Evening star., 1938-10-30

dend distributions during prosperous
years, the consequences of which, they
state. should not be imposed upon labor
in the form of 4 demand for lower
wages.
Second, as q solution to the railroad
problem, the employees offer in place
Of the proposed wage cuts 4 broad
program for the industry. The en-
ployes pledge their cooperation in
seeking (a) rate increase wherever
practicable, CO. the liberalization Of
the Government-lending policy, (c)
equality Of treatment by Congress of
all forms Of transportation. (O the
withdrawal Of Federal Government
competition in transportation, (e) re-
statement Of the rate-making rule so
as to recognize the right OF carriers to
q fair return upon the value Of their
property, 0 amendment OF the Inter-
state Commerce Act so as to give the
commission greater power over State
rates. (g) amendment of the Revenue
Act to exempt railroads from the un-
distributed profits tax and certain
State taxes, (h) surrender by the Fed
eral Government of its land-grant
privileges, "a enactments Of suitable
statutes OF limitations as to claims of
shippers for reparations. ID insistence
that the relocation Of bridges result
ing from the improvement OF navigable
waters should be built at Federal ex-
pense.
Claim Large Wastes
Can Be Eliminated.
The employees program for the in
dustry further claims that wastes ag-
gregating $l,000.000 a day are capable
of being eliminated This program of
"preventable wastes" was advanced by
Senator Wheeler, chairman of the
Senate Committee on Interstate Com
merce.
The employees contend, in short, that
the railroads should, in those ways,
put their house in order before they
entitle themselves to call upon labor
to make q sacrifice.
Third. the employees attack the pro-
posal OF reduced wages as being un-
wise in that it fails to meet the real
needs Of the carriers A horizontal
pay reduction of IS per cent the en-
ployes assert, would net the carriers
as a whole estimated savings Of $780,
OOO,0 900. These savings, however, would
be distributable to the various roads
IN proportion to their pay rolls and
not in proportion to their needs.
To illustrate their point, the en-
ployes divide the roads into three
groups-those in receivership or trus-
teeship, those that are problem roads
IN the sense that continuing prosperity
is condition of their remaining above
water, and those whose strength is
such that even in these times of ad-
versity no pressing need attaches to
them. The estimated savings Of $780,
100000 would be distributed among
these three groups in the following
fashion: Some $60,2OO, 900, or PAL
per cent of the total savings would
go to roads in receivership or trus-
teeship, roads that in 1887 had a,net
deficit after fixed charges of $780,
$4,000. Some $48,15O,0 900, or 1913
per cent of the total savings, would
go to a group of roads not in receiv-
ership or trusteeship. but which have
been designated by Chairman Splawn
OF the Interstate Commerce Commits
sion as problem roads. The balance,
or $l41 ,650,000, representing 566 per
cent of the total savings, would go to
roads not within these classes. It
may here be observed that of this
$l4l, $50, 900. some $92, 100000, or 566
per cent of the total savings, would
go to roads which have either had
net income after fixed charges for
every year from 1929 through 1887,
or roads having such continuous net
income except for net deficit in the
year 1882. 1t may further be observed
that of. this $92, 100000, some $84.-
100000 would 60 to eight roads within
the above category, which eight roads
would receive 1877 per cent Of the total
estimated savings to be produced by
the proposed wage reduction.
Fourth, the employees assert that
the present wage scale is justif1able