Evening star., 1938-10-06
RAILROADS HELD
BIG STORM LOSER
Wage Committee Told That
Companies Must Repair
Damage.

companies Must Repair
Damage.
BY the Associated Press.
Even when a hurricane strikes
whole section Of the country, q rail-
road president testified today, rail-
roads suffer worse than their COM
petitors.
The executive, Frederick E. William
son of the New York Central System,
was referring specifically to the recent
New England storm. He told presi-
Dental board which is hearing the
case for and against rail wage cut
that railroads had to pay for their
own storm damage. whereas govern
ments repaired the highways over
which trucks and buses run.
Scales Declared Too High.
Mr.. Williamson made the point in
his argument that the railroads can
not afford to pay present wage scales.
The board is seeking compromise
In the deadlock between railway labor
and management over a proposed Is
per cent wage reduction.
The New York Central deficit OF
$40, 100000 in the first eight months
Of this year, Mr.. Williamson said.
was 1.-The largest ever incurred in a
similar period"
He added that If 1888 wage rates
had been paid this year, the deficit
could have been cut to s3,387,0oo.
Mr. Williamson expressed informally
an opinion that the proposed wage re-
duction would not cause a wave Of
similar cuts in other industries.
Dean James M. lands of Harvard
Law School, member of the board,
directed questions into this channel
after the rail executive said fewer
men would have railway jobs unless
wage costs we're reduced.
Questioned About Cut.
Mr.. Lands asked how a small group
of railroad presidents had decided on
asking the is per cent cut.
The railway executive explained that
railway workers had taken a voluntary
10 per cent cut in 1882, this had been
restored, and an increase OF about 8
per cent was granted late in 1887.
The cut would still leave us-I
refer to myself as an employe-some-
what better off than in 1882" the wit
ness said. He adoeo that railroads
were in a more critical" condition now
than in 1882 because they have been
living on their fat" in recent years.
Attorneys for railroad brotherhoods
quickly expanded Mr.. Lands line of
questioning
Would not the $3.50, 100000 wage
cut reduce purchasing power OF rail-
road workers that amount?" asked
Charles M. Hay, counsel for Is
brotherhoods.
Yes, I suppose it would Mr.. Will
hanson said.
Mr. Hay then asked If industries
paying higher wages than railroads
would follow the pay reduction lead.
He mentioned steel, coal and auto
mobile industries as now paying more
than railroads.
Objection Overruled.
Railroad attorneys objected to this
question, but the board chairman,
Chief Justice Walter P. Stacy Of the
North Carolina Supreme Court, over
ruled them.
Il don't think the rate of pay for
running . locomotive should deter
mine the rate Of pay in an automobile
shop" the witness replied.
What is your answer to my ques-
tion?" Hay persisted
No" the rail leader said.
Il can't see how you expect a wage
cut to improve business for railroads
or the Nation Mr.. Hay said.
Mr.. Williamson said the saving in
wage costs could be used for pur-
chasing supplies. repairing OF neg
lected equipment and meeting obli-
cations to investors.
He added a statement that en-
ployment always depended on trafiic
volume and might decline after the
proposed is per cent cut.
M. w. Clement, president Of the
Pennsylvania Railroad, told the board
yesterday the workers who have voted
to strike against the proposed wage cut
had failed to see the picture of the
whole"
He warned that railroad employment
is "lessening and will continue to
lessen. when it should be increasing
unless wage and other questions are
approached and disposed of from a
common-sense standpoint"
Salary Cut $4,000.
Questioned further by Dean Lands,
Mr.. Clement said his salary of $780,
900 year now was $50,000 under the
1929 level. He explained he had been
president only during the last three
years-long after the 1929 peak salary.
Mr.. Hay asked Mr.. Clement if he
had considered that the wage cut
might spread to numerous other in
dustries and cause a general wage re-.
duction and business setback.
The rail executive said this was not
his view because he regarded the rail-
road industry as separate economy"
c. u. TO OBSERVE
GOLDEN JUBILEE