| Show Heres Here's s Hines Hines' Letter Letteron on 1 R R. R Situation i li d-li 4 t t n in n age Wag age t J Increase De Demands mands Ou Outlined by Director B nr lat ASHINGTON Aug 1 Mr Hines Hines' WASHINGTON W y y letter to the President under date of or July 30 follows follow Several Severa months ago 0 the railroad I Ishop shop asked for tor an Increase in wages Tho The matter was considered b by the railroad administrations administration's board I of ot wages and working c condition which Is composed of ot three representatives of or labor and three representatives of ot the tho railroad management This board was unable to agree asree and therefore took no action as a a. board but on July Juh 16 I received two reports from members members mem niem- bers of the time board one from the three labor members recommending recommend Ins Ins- Insa a general gen s cral eral increase In wages and another another another an an- other report from the three management management manage manage- ment members r recommending against al although although although al- al an any general Jeneral Increase in wages though h recommending certain readjustments readjustments read read- of or wages of some lame classes Q of the n l I LoY o The position of ot the tho labor Jabor members of ot tho the board is that thal the wages of oC the railroad are arc substantially below the wa wages es paid similar classes of oC In the navy yards ards arsenals are arse nals and j ship shiV yards ards and In man many In Industrial Industrial In- In enterprises of the principal cities of the country The post post- position position members o of tion of the management m the board is 13 that the wages of ot shop are not properly comparable with the wages of oC em em- cited cHell by the tho and their representatives I and that a further wage wago increase at this time o would simply begin In a a. new cycle ccle in the Increased cost of living which would not benefit the tho They urged urs-ed effective Instead the adoption of methods of ot reducing the tho cost of oC living but they add that unless some sonic action I can n be taken within a reasonable time L fl to no 10 to o inia nl tau ru me J o w n all alternative but to continue the wage wac In Increased Increased increased In- In II cycle Increases with corresponding creased cycles of livinG costs The Tho earnest insistence that immediate immediate imme imme- diate action be taken to equalize wages with the rapid Increase In the cost oL ot confined to the tho shop em ern living lI Is 11 not Other Oth r D Demands Demand Probable I We Wc 13 have ha received tho the most positive assurances th that Lt any rny general Increases in demands de de- de will result to shop hop es mands for Cor corresponding Increases ses to every coor other class clasa cla s of or railroad be The rhe situation therefore cannot entire viewed except as a whole for tor the two tto million railroad employee An Increase of oC 1 12 cents per par hour as asked for II by the shop would If applied to all mean an Increase 8 of oC probably per year in operating expenses Incurring Incur incurring The Th government o la is already ring a deficit at tho the rate of ot several everal hundred million dollars per year in the tho operating tho the railroads because Increase In transportation rates has been boen proportionately le less 9 than the I In Increase Increase crease e in Wl wages es aJr already granted und nd tho the Increases in prices which have ho lm h so o taken place Additional was was-es cannot annot be le paid unless new now revenues re are ar produced through an nn n Increase In transportation rates arid and any Immo- Immo diato payment of ot additional wages would necessitate for or several months an n appropriation b by Congress out of ot the treasury lJ substantial Increases Increases In- In creases In iii rates could not be made Immediately effective I for tor additional addi- addi The question presented an lonal Increase in wao is 19 a a 11 peace peace time between tho the entire American public on the one hand and tho the 2000 railroad and the members mem meat bers of their families amities on the tho other hand it Is a question which I I do not believe belle the executive ought ht to undertake undertake under under- take to decide unless specific authorIty authority authority author author- ity is conferred upon him for the tho ex express express cx- cx press purpose of deciding It While the thc general powers Implied In the federal control act were sufficient dent clent to admit of ot t taking as war measures measures meas meas- ures urea the necessary steps to deal with tho the wage problems that arose arole during the tho war the they are not miot sufficient to satisfy the requirements arising In connection with any ny present proposals for general wage wae Increases I Under the existing machinery the tho thoI I ultimate public interests are exclusively exclusive exclusive- J ly represented represent d b by the railroad administration adminis In tho the making of oC wages bu but b by bythe bytho tho the Interstate commerce commission In Inthe inthe the tho final decision upon rates On the one hand a n. decision b by the tho railroad administration against an In Increase increase in in- crease in wages w will be regarded lJ by bythe bytho tho the as a decision dictated more by b the Immediate te difficulties of ot railroad management than by the broad interests of the public as a whole On the other hand a decision b by the railroad railroad rail rall- road rond administration In favor or of ot an In Increase increase In in- crease creaso in wages will not necessarily be binding on th tho Interstate commerce commission which is now the final representative e of the public as to transportation rates higher nat Bates Forced J To deal with these problems problem under peace time conditions th there rc ought to tobe tobe tobe be a final and authoritative representation tation of ot the public whose those decision when in favor or of or a wage e increase would carr carry with It the obligation on the part of the final rate making power to proscribe proscribe pro pre scribe rates which would furnish the necessary funds with which t pa pay the increased wages The conclusion to which I have come com has been forced upon me b by the above e referred recent developments to When hen it developed de in May 13 an and anJun June Jun that the continued cor pressure of ot tho the In Increase Increase increase In- In crease in the cost of oC living wa was causIng causIng causing caus caus- ing railroad generally to urge urs-e that thc they be given Il substantial protection through h further Important increases in wages If It the cost cost costor of or living livIng liv liv- ing big was not reduced I r realized that the question was assuming such wide I and deep significance to the tIme American public n a aw well as to the railroad em em- em m- m piou that the question ought ous-ht not to tobe tobe be bc dealt with in the same way In which tho the railroad r wages wac-cs hud hind been Increased In connection with the war var ar emergency I therefore advised ad the board of oC railroad railroad railroad rail rail- road wages and working conditions on July 3 that the they could not regard themselves themselves them them- selves as vested with Jurisdiction to formulate and recommend further general general gen Sen eral wage wag asu increases cs to be made by me but that In ill 11 cases thereafter arising arisIng aris arts ing the they should report the facts t t. t me that I T might decide In n tho the light of oC the facts acts upon a fair and Just procedure procedure pro pro- a Urged I fI feel that the developments dc have ha now reached the tho point where the situation situation sit sit- has hns tal taken en u a sufficiently concrete con con- crete crate form Corm to serre as the tho basis for fora or ora ora a positive recommendation I ther therefore t ore respectfully recommend that Congress be asked askell prompt promptly to adopt legislation providing pro n a properly property constituted body on which tho the public and labor will be bo adequately represented represent represent- ed and which will be bo empowered to Continued on page 2 nINES lINES LETTER LEITER LETTERON ON R. R R R. R CRISIS Necessity for Action Pointed Out in in Detail by iy i Director I I Continued from Crom rota Page Pago I. I lk pass on th these se and all railroad railroad wage wae problems but not n rules and working conditions because thc the latter laller cannot bo ho satisfactorily separated from the thc current handling of oC railroad operations and the reform should continue to lo tobo bo dealt with by the railroad administration tion Such le legislation should I also provide that If wage Increases shall shaH be decided upon it shill shall be mandatory mandator upon the thc rate making body to provide pro where necessary sar Increased rates to take tako care caro of oC the thc Increase se in tho the cost of oC operating the tho railroads r. I II 1 do not think that we wc can properly prop prop- crt erly deal with thi this thit reh gret problem without without without with with- out a full reco recognition of the fact that the cost of lI is rapidly In rising and that thal er e every month that passes to impair still further the purchasing pow power of oC t the tha C existing wages a cs of oC ra railroad railroad rail rail- l road unless the rise iise in ii tWo the cost of or living can can be successfully re restrained restrained restrained re- re strained as I earnestly hope hop In the thc general public jn interest it lt Hcan cart can speedily bc I therefore further recommend that Congress be bo at ask asked ked cd to provide p In any such legislation that any Increases ses in railroad wages which ni may t be e c made by the thc tribunal constituted for that p purpose shall be made effective e and proper proper In order to give o railroad em em- from ro that date th the benefit which t the thc c tribunal may think they were then entitled to In way the tho deJa delay nece necessarily Incident to the creation of such tribunal and Its Us action will not b be bc prejudicial lal to tho the fair interests of ot I the tho railroad President Wilsons letter to the thc committee corn com chairman said chairman said com I I 1 tako take the liberty o of enc enclosing osiS a a. I I from Mr Ir Walker D. D Hines the tho director general of or railroads and which with me In will agree I am sure suro you OU contains matter mattor for veT ter very s so- so o- o ng rious t thought U ht and for Cor action also non VIl v on I Favor no Plan May I n not nO say that I t cur In tho the suggestions thich Mr 11 Hines makes In Inthe Inthe Inthe the two twp concluding paragraphs raph of oC his letter I hope that it will wIl be po possible for or your our committee to consider and recommend which will provide provide pro pro- vide a bod body of or the proper constitution authorized to investigate and delorI determine determine deter deter- mine all questions concern concerning InS InS' the Wa wages es fJ of railway and which will also make mako the decisions of oC that body mandatory upon the rate rato making making- when In Increased In- In bOd body and provide necessary creased rates to cover er any recommended recommend recommend- ed Increases In wages and therefore in the tho cost o of operating t the e railroads In Jn view also of if the indisputable facts with re regard ard to the thc Increased cost of or ln lI living I concur In Mr Ir HInts Hines suggestion tion that legislation undertaken should authorize the body thus yet set et up to make its findings with regard reg-ard to wage In Increases Increases increases In- In creases retroactive to the thc 1st of or Au August u at any rate rUc to tho the extent that that tribunal mB may ore regard rd reasonable and proper in iii order to give real re relIe relief relief re- re lIe lief to tho the employer concerned r I need not I am sure urge e upon you OU tho the importance o of this matter which seems I vital ital 11 from rom more than one eric point of oC view viet and I hope that you will think this form of action tho the proper and necessary me I |
