The Waterbury Democrat., 1938-10-05

ence with the wage-embatte
hood chiefs.
Neither camp has said anything
publicly about the surprise pack.
ages but they are still gasping.
Principal surprise was the In
formation that he Is seriously
considering legislation, this winter,
10 supplant the B0-year old Inter.
state Commerce Commission with
a Department OF transportation.
This would be empowered with
broad authority for drastic rehabi-
litatlon OF the railroads and
regulation OF oil forms Of inter-
state transportation.
Roosevelt made no bones about
his disgust with the 100 and Its
failure to solve the long-standing
railroad problem. He said the
agency had become 80 snarled In
is own red tape as TO be use
less. The only remedy seemed to
DO creation Of o complete new
body.
While his callers were still
blinking over this, the President
jolted them again with equally
blunt observations about the pro-
posed IS per cent wage cut.
Wage Cut Out
He said II was economically un-
sound, indefensible and would
solve nothing. II the slash went
through II was sure TO be followed
by q general aging Of wage levels
which could mean only one thing
widespread public unrest and
business setbaclss.
"Cutting wages Isn't the rem
edy for your troubles" the
President shot NJ the railroad
executives. "That Ii like trying
TO put q patch on an Inner tube
that IL all shot 10 pieces. What
you have got 10 do Is 10 put
your financial houses In order.
That's the answer 10 your diff.
ficulties, not this unwaFranted
wage cut"
The President warned that he
Ia still emphaticnlly opposed 10
government ownership, but II
might become necessary II the
carriers persist In their disastrous
financial practices.
To illustrate his point he cited
an experience In his own family.
my grandfather" he said,
thought five bonds Of o railroad
company In New York rs years
age. Those bonds have never
been retired. My mother still
has them"
Tho carriers, the President IN.
sisted, have 10 get rid OF "rail.
road bankers and railroad lawyers"
II there IL 10 be permanent re-
Mobilization.
"They are the ones who are
the cause Of ali your ills," he
asserted. They have been milk
ing the roads dry for decades.
All they are interested In II
draining off the profits. A
sound and economically operat-
ed transportation system sup
plying the nation with good ser.
vice and paying workers just
wages IN no concern Of theirs"
The rail officials, plainly nom
pluksed by the president'Rtart lee.
ture, listened In silence. Finally,
he turned squareiy on them and
asked:
"WelI, gentlemen, where DO
you stand? Are you willing 20
abandon your wage cut and get
together with the government
and labor on q legislative pro-
gram 70 cure the Ills Of your In.
dustry?"
The three rail heads - Carl
Gray, forme: president OF TIL
Union Pacific, M. W, Clement,
president OF the Pennsylvania. and
Ernest T.. Norris, president OF the
Southern - retired TO the cabi-
net room 10 talk II over, then re-
turned 10 ask for more time 10
discuss the matter with other ex-
ecutives before giving an answer.
Roosevelt replied he would await
their decision.
LandOn VS.. Hamilton
Behind the scenes. the rift be-
tween the tituiar head of the e.
publican party and the chairman
OF the Republican National Com.
mittee Is growing wider. All Lam
don never did agree with John
Hamilton on fundamentals, and
the disagreement has become
sharper In recent months.
London has deep misgivings
about the tactics Of the right
wingers in the party, with which
Hamilton Is associated. He dis
trusts their reactionary views, and
believes their negative policy, con-
sisting chiefly of attacks on the
President, Is politically ungound.
Furthermore, he suspects HAM
iiton OF cultivating Herbert Hoov-
er and encouraging the ex-Presi-
dent to come back into the ma
tional arena. Landon Is con-