Evening star., 1938-10-14
TRUMAN SUGGESTS
CHANGES IN |. c. c.
Agency as Well as Railroads
Needs Reorganizing, He
Tells Committee.

~ ~
Tells Committee.
Senatorial opinion that reorganiza-
ton of the Interstate Commerce Com
mission as well as of the railroads is
essential to any improvement in the
carrier problems was given the Emer-
gency Fact-Finding Board today as
the fight against the proposed is per
cent wage cuts. 4
The condemnation of the commits
sion, accompanied by equally biting
criticism of railroad-management pol
lcies, was offered by Senator Truman,
Democrat. of Missouri.
A similar stand in opposition to the
wage slashes was taken by Senator
Wheeler, Democrat, of Montana and
chairman of the Senate Interstate
Commerce Committee.
Senator Truman. who collaborated
with Senator Wheeler in lengthy in
vestigation of railroad financing, told
the board the proposed wage cut
would not solve the industrys prob
lens.
He asserted banker management
ought not to be allowed to sacrifice
railroad labor" because of inability
TO control situation of their own
creation" N"
Meet With President.
"The proper thing for rail manage
ment to do" the Missouri Senator
said, "is to get together with the
President, Congress and railroad labor
and solve the whole problem for the
welfare of the entire country"
Senator Truman contended the
roads banker ker-management" had
loaded railroads with debts and adop-
ted "the attitude that if the public
and the people who pay the transpor-
tation bill do not like it, they can
be damned"
Senator Truman said 'old-fash-
toned rail management" had not recog-
nized the automobile and airplane
as competition and failed to attract
young men and new ideas"
Senator Truman expressed the
opinion that the Interstate Commerce
SSiiiAllAoo2o1l 4lNCS4S 1Sol
II think the I. c. C. needs reorgan-
izing as well as some of the railroads"
he said. Some of the commissions
members will tell you the same thing.
When a bureau gets to be so years old
1t has lot of dry rot"
Lands Brings in I. C. C.
Dean James NJ Lands of Harvard
Law School, member of the Wage
Board. turned attention to the l. c. c.
when he remarked that !. c. G. had
powers to ease the railroads interest
burden by requiring sinking funds be-
fore approving funded debts.
j. Carter Fort, chief of railroad
counsel, grilled Senator Truman about
the Senator's statement that IF
young man comes forward with new
idea in rail transportation he is fred
as an upstart."
He said Senator Trumans opinion
is at variance with the facts"
When the Senator referred to pro-
gressive management of airlines, buses
and trucks, Mr. Fort replied they also
"were losing money" despite Govern
ment subsidies and freedom from re-
strictions.
Senator's Wheeler and Truman told
the board they would offer compre-
hensive program later for co-ordina-
ton of air, water, rail and highway
transportation.
Senator Truman sharply criticized
financial practices of the Van Swerin-
gen, Pennsylvania and Missouri Pacific
Railroad systems as developed by the
Wheeler-Truman investigation.
At one point Max Lowenthal, special
counsel for the Senate Committee,
added details to Senator Truman's
testimony.
This brought a sharp protest from
railroad counsel. and Mr.. Lowenthal,
grinning broadly. was sworn as wit
ness. Senator Wheeler also offered
the board the services of his investi-
eating staff.
Chairman Wheeler testified that a
wage reduction in the railroad industry
would be blow to our present re-
covery"
II think the country as a whole
would benefit if there were no cut"
the Montanan told President Roose-
velt's board, which is attempting to
avert a Nationwide strike vote by
almost 100000 workers against the
IS per cent wage reduction asked by
the carriers.
Although he appeared as a wit
ness for railroad brotherhoods who
are opposing the reduction, Senator
Wheeler said he came not "as par
tisan," but acted after considering
first of all and most of all, what was
for the good Of the American people
as a whole"
Question Before Board.
Senator Wheeler said the question
before the board was:
rs it advisable to cut wages in order
to increase the income or profit of the
owners of the railroads at time when
railroad business and business in gen.
eral are sustaining substantial con-
tinued improvements, without any sub
stantial indications Of break or q
recession in recent months?"
Senator Wheeler said the railroad
industry had gross revenues Of more
than $4,000 ,oOoO 900 in the eight-year
period 1930-37, term that included
severe depression and moderate in
take and a modest income"
He estimated that profits of the rail-
way system, as whole. in this same
period amounted to about S5,275, ,000.-
600 or about 10 cents out Of every
dollar take"
Even this year, the Senator said,
"the industry as whole made profit
In every month except February"
Labor representatives earlier re-
quested that rail management seek
financial relief through Government
rehabilitation. They said they would