Evening star., 1938-06-26
BY ]. A. FOX.
.HE perennial railroad problem is
headed for a showdown, and unless
all the signs are wrong, this is not

headed for a showdown, and unless
all the signs are wrong, this is not
going to be long in coming.
With business shot to pieces expenses
ct high level and budding labor troubles
In the of1ng, the outlook is far from reas-
suring. II there is a brighter aspect, it
lies in the possibility that the pump
printing" on which the Government is re-
embarking will have the same effect it
did before, when vast Federal expenditures
were reflected in booming traffic That
and the fact that the industry has an
amazing resiliency and has staged come
backs from the depths before But this
latter factor also has an Offset, for COM
petition grows sterner day by day, and
the product which the rails have to offer
becomes less in demand
An early business upturn could go a
long way toward nipping the prospective
labor difficulties, but lacking that, the
potential seriousness of the move of the
carriers to cut wages Is per cent cannot
be discounted
Both Sides Are Resolute.
After several weeks of intermittent and
prof1tless discussion, representatives of Is
systems, with authority to treat for all, will
meet in Chicago this week with the heads
OF 10 rail-labor organizations to get down
to cases on the wage issue, and up to now
there has not been the slightest indication
that either side is willing to give an inch.
Announcing the coming meeting, H.
A. Enochs of the Pennsylvania Railroad,
who Is chairman of the Carriers Joint
Conference Committee, summed up their
stand in two sentences:
THE railroads are seeking a wage reduce
tion because today, in a time of general
business depression rail wage rates are at
the highest average level in history, while
the railroad industry faces disaster. Neither
conditions of general business, living con-
ditions, nor the condition of the railroads
5ustifies continuance of the present wage
levels"
To bolster this argument the railroads
point out that 10 per cent pay deduction
voluntarily accepted by the workers in
the depression year of 1892 had been re-
stored in full by April, 1885, and that less
than a year ago, with conditions more
favorable, an increase approximating 8
per cent and costing s135,00o. 900 was
granted
Blow to Prosperity Claimed.
The brotherhoods have fatty turned
face against a cut, emphasizing that lower
Ao fo
workers have borne their share in the
rail debacle. The statistics on their side
are that from 1929 to 1887 the paw roll
Of the railroads declined more than $780,.
600 000-from $2,896, 900 900 to 81, ,985, ,OO0,.
O00-and that more than 10000 workers
have been displaced since 1929, the employ
ment total dropping from 1850, $50 to 9O4.-
s97, the latter being as of May 81, this year.
There may be a compromise between
these divergent views, for since the ILL
starred shop strike in 1922, the relation
ship of rail labor and MANAGEMENT has
been extremely harmonious. 1t is a fact,
however, that the growing uncertainty of
employment is straining this entente cor
dale and that certainly in some labor quar-
ters there is feeling that there is nothing
to lose by standing firm in the present in
stance, no matter what it may entail. As
last resort even the idea of Government
ownership is not as distasteful as it has
been.
But granting for the sake of argument
that everything works out smoothly in the
present instance-business revives and the
labor skies clear-something must be done
to stabilize and integrate the national sys-
tenn of public transportation; not railroads
alone, but all carriers
For nearly two decades, this need born
Of competition, has stuck out like a sore
thumb; it has stirred more soleitude and
suggestions than does the victim of cold,
and with about as much resultant benefit
to the sufferer. Everybody knows the
things to debut they are all different.
Remedial Step Comes Late.
A step in the right direction was taken
when interstate highway carriers were put
under Federal regulation, but this came
tardily-and the effects of early abuses still
are evident-and there have been no sup
Elementary moves.
The program that has just been beaten
In Congress because the brotherhoods OBJ
jected to aiding the carriers in view of the
projected wage cut. is good example of
the lack of attention the issue has re-
ceived. The pinch now being felt has
been long developing, but when the time
came to take some immediate action, all
that was offered were easier loans and
quicker bankruptcy. the short range" pro-
gram formulated by a hastily-formed
presidential advisory group. The long
range" program evolved by the same group
did not even get nod from Congress, the
excuse being that the exigencies of cam
paign year precluded it. An amazing COM
mentary on the treatment Of a major in
dustry over which the Government exer-
eises unlimited power.
Now there Is a plan afoot for congress
sional committees to inaugurate an early
study Of the question with the possibility
Of special session of Congress being called
10 frame legislation. But there is a strong
division OF opinion as to the efficacy of this.
Some congressional leaders are con-
vinced that drastic reorganization is neces-
sary If the carriers are to prosper; that
they must go through the wringer." But
this is easier said than done.
Earnings Basis Impossible.
ANU rooroo - ivo +;o, - l.