Evening star., 1947-05-22

who are trying to tell the public
that business can absorb wage in
creases without increasing prices.
The commission looked into the facts
and found that the railroads had to
be granted the increases in passen-
ger rates so as to help meet operat-
ing costs.
But the public isn't reminded OF
Just why operating costs have gone
UP on the railroads. It will be re-
membered that there was a coal
strike and increases In wages were
granted when the Government took
over the mines for operation. It
will be remembered, too, that coal
Is a big factor In operating rail-
road.
Wage Trend Upward.
Apart from the cost of materials
that are needed to build railway
equipment, there have been in
creases IN nearly everything else
railroad buys. There has been
substantial increase In wages, too.
In fact, wages on the railroads are
higher than before the war and the
trend has been upward, as in other
industries.
Although the railroads made
money during the war, most Of them
lost heavily in 1916 when the vol
une Of traffic diminished material
~. since there were not so many
soldiers or families of soldiers to
transport. To make ends meet, the
railroads asked for increases in
rates on both freight and passenger
traffic. Although all the rate in
crease that the roads requested has
not been granted, nevertheless the
Justice of the argument made has
been recognized by the Government.
Rail workers are deserving of as
high a standard of living as any
ether workers, and 1t is natural for
them to seek higher wages. But
the railroad unions, in the propa-
ganda which they issue from time
to time to keep workers embittered
against management, never fail to
emphasize the doctrine that man.
agement is allegedly making exor-
bitant profits and can pay higher
and higher wages without regard to
the effect on the public's cost.
The CIO economists keep on pour
ing out propaganda to the effect
that business as a whole is making |
big profits and can pay wage in
creases without increasing the
prices to the public. Unfortunately,
businesses that lose money cannot |
conf1scate the profits of the other |
businesses that make the profits, so
generalities do not help to erase
red figures. ..-.
Bus and Plane Competition.
The railroads are competing
against airlines and bus lines, and,
even with the entry of more and
more equipment which was not
available In wartime, the whole
transportation business of the coun-
try cannot possibly equal for some
time to come the total receipts of
wartime. Yet wage rates are the
same or higher than were paid
when volume was at the wartime
peak.
It is natural for the organized
groups to use their economic pres
sure to get as much as they can out !
OF the operating receipts of man
agement, but the effect on the price
level has been more than the pub
lie generally can stand. This is
what is bound sooner or later to
lead to considerable unemployment.
But the workers who are laid off will |
be the ores who suffer, and there Is
evidently. little thought being given
to the consequences on the many
millions of persons who cannot exert
economic pressure to bring down the
costs Of living.
Certainly the red herring being
drawn across the price question by
left wingers' is plain to see, for
prices in some lines must rise in
order to enable these businesses to
wipe out deficits and stay in busi-
ness. The ballyhoo propaganda to
force price reductions or to per-
suade businesses to ignore deficits
and absorb wage increases may de-
ceive many observers, but it is to be
noted that prices are rising just the
same in certain categories vital to
the standard of living in America.