Show SOLUTIONS SOL 10 70 RAIL PROBLEMS PR SUGGESTED S UG TED ED IN LETTER BY HINES MINES I i I i. i WASHINGTON W Aug 2 Walker walker limes Hines letter to the president under date of July 30 In regard to Increasing wages of railroad men follows railroad Several everal months ago the shop employee asked for an ap increase In wages The matter was was con considered considered consid consid- sid sid-I ered by the tile railroad administrations administration's I board of wages and working condi conditions which is composed of ot three representatives representatives representatives rep rep- of ot labor and three representatives representatives representatives of the railroad managements manage manage- ments This bo board rd was unable to agree and therefore took no action as a a. board but on July 16 I 1 received two reports from members of or the board one from the three labor m members recommending rec rec- a general increase in wages and another report from the three mana management ement members recommending recommending mending against any general Increase ase in jn wages although recommending certain er- er tam tain readjustments of pf the wages or Of orsome some classes of the employee The position of the labor mem members ers of the board Is U that the wages of the railroad are substantially below below below be be- low the wages paid similar classes of In the navy yards arsenals and shipyards and in jn man many manS industrial enterprises of the principal cities ot oi the country The position of the management management management man man- members on the board is that the wages of ot shop are not properly comparable with the wages of cited by the employee and their representatives and that a further wage increase a athis at this time would simply begin a new cycle in the increased cost of ot living which would not pot benefit the employee They urged Instead the Adoption II of effective methods of reducing red th the cost of living but they add that unless within reasonable reasonable rea rca some action can be taken a time to accomplish this result th they y see no alternative but to continue the wage cycle increases with cor corresponding ot- ot responding increased cycles of Hying costs DEMA DEMAND D NOT LIMITED The earnest n Insistence that immediate imme m diate action be taken to equalize wages with the rapid increase in the cost of living is not confined to the shop em em- Ve We have ha received the most positive assurances that an any general increases to shop will result in demands demands de demands de- de I mands for tor corresponding increases to every other class of railroad rf The situation therefore cannot be Viewed e except cert as a whole for tor the entire 2000 railroad An Increase in increase increase In- In crease of or 12 c cents per hour as asked for tor by the shop employee would if ap applied applied applied ap- ap plied to all mean an increase of probably per year in operating expenses The government is Is' Is already in incurring incurring incurring in- in a deficit at the rate of several j Hundred undred mi million dollars per pei year in operating the railroads because the iP- iP in increase increase crease in transportation rates has been I proportionately less Jess than the increase ase and the in increases increases In- In In wages already ady granted cre creases ses In prices which ha have taken place placeS Additional wages cannot o 0 oe I paid unless new revenues are produced t through an increase in tr transportable lon and Immediate payment o 0 ot rate rates any I additional wages would necessitate foi for several everal months an appropriation bj hI congress out of or the treas treasury ry becausE substantial increases in rates could nobe not no be m made e immediately effective PEACETIME QUESTION The question presented for tor or an additional additional addi addi- increase in wages is a peacetime question q between the he entire American America public on the one hand and the 2000 railroad and the members mem mem- hers bers ers of their f famines families on op the other othet hand It is a question which h I do nol not believe the executive ought to undertake undertake undertake under under- take to decide unless specific author h is conferred upon him Im for the express purpose o of deciding it While the general powers implied in the federal control act were sufficient sufficient to admit of ot taking as war measures measures measures meas meas- ures the necessary steps to deal with the wage problems problem thin that arose aroS during the war they pro pre not sufficient nt to sat sat- satisfy the requirements arising fin connection connection connection con con- with any present proposals for general wage increases Under the existing machinery the ultimate public interests is exclusively represented by the railroad administration adminis adminis- in the making of wages but by the interstate commerce commis commis- commission commission sion aion in tn the final decision upon rates the rail railroad railroad rail rall- On the one hand a decision by road administration against an increase increase in increase in- in crease in wages will be regarded by bythe bythe the as a decision dictated difficulties or Of more by br the immediate railroad management than by the public as a broad Interests of or the whole On the other hand a decision by the railroad administration In favor not necessarily necessarily of or an increase in wages will be binding on the interstate commerce commission which is the final representative of ot the t e public as to 10 transportation rates I PUBLIC REPRESENTATION N NEEDED To deal with these problems problem's problems under under under un un- un- un der peacetime conditions there ought to be a final and authoritative representation representation rePresentation of the public whose decision deci deci- decision sion don when in favor of ot a wage increase would carry with it the obligation on the part of the final rate ratemaking making power r to prescribe rates which would furnish the necessary funds with I which to pay the increased wages The conclusion to which I have nave come has been forced upon me by the recent developments above referred to and When it developed in May June that the continued pressure or ot orthe the Increase in the cost of or living hiving was causing railroad generally to urge that they be he given glYen substantial protection through further Important increases in wages if It the cost of ot living liv ing was not reduced I realized that the question was assuming such wido wide and deep significance to the American public as well as to o railroad employee that tn tH question ought not to be delt with in the same way In m whIch the railroad wages had been increased in connection with the war var emergency I therefore advised the board of railroad railroad railroad rail rail- road wages and working conditions on July 3 that they could not regard themselves as vested with Jurisdiction to formulate and recommend further general wage wago Increases to be made by me but that in all ca cares es thereafter arising they should report the facts to me that I might decide in the light of the facts upon a fair and just ure I r feel that the developments have now reached the point where the atlon has taken a sufficiently concrete form to serve as the basis for tor a positive positive positive tive recommendation RECOMMENDATIONS I therefore respectfully recommend that congress be asked promptly to adopt legislation providing a properly constituted body on which the public and nd labor will be adequately represented represented tented and which will be empowered to pass on these and all railroad wage problems but not on rules and working working working work work- ing conditions b because cause the latter cannot be satisfactorily separated from the current handling of railroad operations operations op op- and therefore should continue to be dealt with by the tle railroad administration administration ad ad- ministration Such I legislation should also aiso provide that It if If wage Increases shall be decided upon It shall toe be mandatory upon the body to provide e where necessary increased rates to take care care of ot the Increase Inthe in inthe the cost of operating the railroads I Ida do not think that we can properly properly properly prop prop- erly deal with J this great problem without a full recognition of the fact that the cost of living is rapidly risIng rising rising ris ris- ris- ris ing and that every month that passes promises to impair still further the purchasing power of ot the existing wages wagE'S Of railroad unless the therise therise therise rise in In Inthe the cost of living can be successfully suc sue restrained as I earnestly hope bope in the general public interest Itcan it itcan itcan can speedily be I further recommend that congress be asked to toI provide In any such legislation that I any ny increases In railroad wages which may be made by the tribunal constituted constituted toted for that purpose shall be made effective as of August 1 1919 to such extent as that tribunal may spay regard reasonable and proper in order to give railroad from that date the benefit which the tribunal may think they were then thep entitled to In Inthis Inthis Inthis this way the delay necessarily inci mci- Incident incident dent to the creation cre pf cit such tribunal al aland and its action will not be prejudicial to the fair interests of the the- railroad PR WILSONS WILSON'S LETTER LETTE President P es lent Wilsons Wilson's letter to the committee committee com corn chairman said saidI I take the liberty of inclosing a copy of a letter which I 1 have Just re received received re- re from Mr Walker D D. limes Hines the director ge general eral of railroads ds and which I am sure Ure you will agree with me in tn n thinking contains matter for very nrY serious thought ought and for action also May ZJay I pot riot say that I concur II in inthe Inthe the suggestions Mr Hines limes i makes in the two concluding paragraphs paragraphs paragraphs para para- graphs of h hIs s letter I 1 hope that it will be possible for your committee to consider r and recommend legislation legislation legislation legisla legisla- tion which will provide a body of or the proper authorized to l Investigate in investigate In- In and determine all ail questions concerning the wages of ot railway em em- and which will also make the decisions of that body mandatory upon the body and provide provide pro pro- vide when necessary increased rates to cover any recommended increases in wages and arid therefore in the cost of or operating the railroads In view also of the indisputable facts with regard to the Increased cost of living I 1 concur concur concur con con- cur in Mr Ir limes Hines suggestion that legislation legislation legislation leg leg- undertaken should authorize the body thus set up to make its findings with regard to wage in increases increases increases in- in creases retroactive to the first of August 1919 at any rate to the extent extent ex ex- tent that that tribunal may regard reasonable ble and proper In order to give real relief to the concerned I need not I 1 am sure urge upon you OU the importance of this matter which seems vital from more than one point of ot view and I 1 hope that you will think this form of ot action the I proper and necessary one I |