Evening star., 1943-05-26

do not, under prevailing circum-
stances, provide basis for increases
in railroad rates or for resistance to
justif1able reductions in such rates.
The Interstate Commerce Com
mission recently Cancelled freight
rate increases amounting to $780,
600, 900 annually, which were given
the railroads year ago to Offset
earlier wage increases, but refused
to cancel advances in passenger
rates granted at the same time. The
rate reductions were urged by the
Office of Price Administrat ton and
other Government agencies as an
anti-infation step.
Wage Boost Defended.
In defense of the proposed wage
advance the emergency board said
that as the result of the stabilizing
influence of the Railway Labor Act
that wages on the railroads have
moved more slowly, both up and
down, than in industry as a whole,
and the level of railroad wages, both
up and down. has changed more
moderately than in other industries"
1t added that labor relations on
the railroads have keen peaceful in
sharp distinction to other industries
and that ''it is a matter of great
public concern that the integrity of
these orderly processes lunder the
Labor Act) with their fruitful re-
suits be Safeguarded in eyerv Way
possible"
If railroad employees were to find
themselves unjustly penalized be-
cause of their reliance on these
orderly processes" the report con-
tinued, strong impetus would be
given to the disruptive practices
which frequently flow from the ex-
ertion of economic power or the
performance of work in justifiable
discomfort.
The pressures in these directions,
springlng from the impairment of
morale, would be difficult to allay
and the effective prosecution of the
war might be seriously obstructed."
Because of this background the
board pointed out that it was i'm
portant that distinction be drawn
between its functions as labor
disputes board and those of an
agency for administering stabili-
cation program.
Since 1t was appointed to investi-
gate and make report on an un-
adjusted dispute between the rail-
roads and their employees, the board
said, Its clear duty and RESPONSE
blllty was to lay before the Presi-
dent all the essential facts of the
dispute and to submit to him it's
considered judgment as to what
would constitute a fair and reason
able settlement of the controversy"
Discussing the cost of the pro-
posed increase, the board said:
THE year 1912 constituted the
peak year in all railroad history with
respect to virtually all important
aspects of railroad operation. ..
1943 Income Increased.
The figures for the first quarter
of 1943, insofar as they are available,
show sharp increases in all these
directions over the corresponding
months of 1912.
Net railway operating income for
the year 1912, after an unprecedent-
ed tax bill of $1,202,443, ,297, almost
two thirds of which covered income
and profit tax accruals, amounted
to 81, O,940,76O.
NET income for the year 1912,
after all fixed charges and including
interest accruals on properties that
are in receivership or trusteeship,
amounted to $958,86O,655.
The Interstate Commerce Com
mission has estimated that Glass
railroads earned. during the year
1912. 9.94 per cent on investment in
road and equipment before provision
for Federal income and profits taxes,
and 6.57 per cent after deduction of
all railway tax accruals, and that on
the value of their properties for
rate-making purposes, the Glass l
railroads earned 1120 per cent be-
fore provision for Federal income
and profits taxes and TAO per cent
after deduction of all railway tax
accruals"