Evening star., 1938-10-13
ONE RULER ASKED
FOR ALL CARRIERS
Wheeler Urges U. S. Control
of Transportation Be
Centralized.
By the Associated Press.

BY the Associated Press.
Chairman Wheeler, Democrat, of
Montana of the Senate Interstate
, Commerce Committee today advocated
GENERALIZATION of Government control
OF all forms OF transportation, includ-
ing railroads, trucks and water car
riers.
The Montana Senator, here to testify
for the rail brotherhoods before the
Presidents fact-finding board, said he
believed there was no justification for
the railroads attempt to force through
Is per cent pay cut. The brother
hoods have voted to strike rather than
accept the pay cut
Senator Wheeler, in suggesting that
'all transportation operate under the
same controls, was in agreement with
George Harrison, rail labor spokesman
MIR. Harrison made that one of his
points in suggested long range pro-
gram. under which labor, manage
ment and the Federal Government
would team up to rehabilitate the
carriers. He pleaded with manage
ment to withdraw its pay cut demand,
for the benefit of all three
More Business Declared Need.
Senator Wheeler declared:
The railroads complain that trucks
and water carriers are not regulated
and that the Government is subsidiz-
ing the other forms of transportation.
The only way this thing can be worked
out is to put all transportation under
one board"
Asserting his belief that wage cut
would be of little benefit to the rail-
roads in the long run, he went on:
What the railroads need is more
business.
When depression comes, the rail-
roads always make the mistake of cut
ting wages and asking for rate in
creases. Where would the auto in
dustry be if it tried to raise the prices
OF its product in depreSsion?"
Wage Cut Held No Help.
Mr. Harrison, in his argument for
the l8 brotherhoods affected, contend
ed he had proved that a wage cut
would offer no solution to the indus
try's problems.
To solve them. he asked railroad
oGicialdom to consider a long-range
program involving coordination of
competing forms of transportation,
Government loans to railroads who
agreed to the program, reorganization
of railroad finances and revision of
rate structures.
Referring to the strike already voted
by nearly 100000 workers in protest
against the wage reduction, Mr.. Har-
rson told the presidentially-ap
board that there could be no progress
until the wage dispute was out Of the
way.
Better Business Seen.
Railroad labor" he observed. cam
not fight battle with MANAGEMENT
over wages with the right hand and
cooperate with management with its
left hand
I'm my judgment" he said in ref
erence to the wage-cut proposal, the
railroads should withdraw this. Busi-
ness is getting better, and we now
have the promise of the President that
he will assist in rehabilitation"
Program Approved.
The labor leader said the brother
hoods had approved this program:
mpetition-Placing all forms of
transportation, water, land and air.
under the same Federal regulations
and letting the public choose which
it wishes.
Equipment - Use of lighter and
speedier railroad equipment for more
frequent railroad service Mr.. Har-
rison said the Government could safely
advance necessary funds.
Co-ordination-Stud of competing
forms of transportation to determine
most efficient in each zone. Mr. Har-
rison said all forms of transportation
might operate to support one another
Rates-Establishm of rates which
would permit railroads to accumulate
a reasonable reserve. The labor leader
said at present rates were boosted in
periods of depression, when they
should 10 down to encourage busi-
ness expansion.
Dividend Limit.
Finances-Placing a definite limit
on the amount of reserves that rail-
roads could accumulate or pay out in
dividends, with limit on bonded
debts similar to existing national bank
limits on property mortgages.
Reorga Harrison said
a l0-year probation period should be
established for reorganization railroads
10 reduce the burden of fixed charges
and reduce debt structure to so per
cent of property values based on rate
making purposes. After the 10 years
this reorganization would become
mandatory
olidations-Approval of these
by interchange of capital, when ap-
proved by I. c. c. after searching in
vestiga ton.