Show 12 f i C CONFESSES f fAll FAILURE F Fails ails to Prove Authenticity Authenticity Authenticity I city Y of Defamation Letter Slump Is Not Due to Rates Declared 1 CHICAGO May 12 12 labor today formally admitted before before the railroad labor board that it had failed in its efforts to prove authenticity authentic ty of a aletter aletter letter Ietter alleged to have been written by bya a Pennsylvania railroad official orderIng order order- Ing defamation ing defamation of labor organizations if necessary in obtaining desired information in information in in- formation and requested permission to withdraw the tho letter from the boards board's records The board passed a resolution re requesting requesting re re- questing the to present the evidence of the origin and authorship of the letter This Frank P. P Walsh counsel for the unions refused to do and nd the board adjourned without takIng taking tak tak- Ing an any action in the case W WASHINGTON May 12 Under cross examination today b by the senate interstate commerce committee Julius chairman of at the board of or the tho Southern Pacific company compan insisted that the recent Increase In freight rates freight rates had not operated to bring about a drop In railway freight business The only trouble Is is he said that the Increase In rates came simultaneously with the depression in general business you seen the risk of ot alienation alienation alienation alien alien- of ot public opinion by that poll policy C or of Increasing rates before reducing wages wages asked Senator Townsend Republican Republican Republican Re Re- publican of Michigan The roads were in a desperate situation situation sit sit- was the reply All AU these claims for reduction bear the earmarks of a well planned propaganda propaganda ganda Banda on the present rate structure The fact is that commodities for tor which the the- producers now receive very little are tax taxed d so very greatly by middlemen middle middle- middlemen men and retailers that consumers must pay altogether prices while the transportation charges are arc very small parts of the tho increases ONLY TWO WAYS If It I understand you continued Senator Senator Sen Sen- ator Townsend you have got to have nearly a billion bUllon dollars a year more than you are now getting if you are to operate these roads properly How are you ou going to get it There are only two w ways ways Increase increase revenue revenue or 01 reduce expenses the wit wit- n nessi ss replied The first relief and It Is substantial will come from a reduction In common labor costs said Mr Farmers alon along our lines lanes are employing employing employing employ employ- ing men at a day for ten hours The railway labor board requires us to pay several times that Railroads must be allowed to purchase their labor at market prices but the tho board Is very slow to act o Some of the press reports are getting getting getting get get- ting my proposals wrongly I have advanced advanced advanced ad- ad reduction of ot labor costs as the first and most necessary step the chief hope lies in reduction of railway ex ex- ex What I have said about the Panama canal and highway competition competition competition tion only bore upon the possibility of ot Increasing revenues GIVES STATISTICS Statistics on labor costs were given ghen by the witness who was after his direct testimony of ot the past two days by members of the committee committee committee com com- which Is Inquiring Into the whole hole railroad question Since the Adamson damson law lawas was as enacted he said labor Jabor costs have been Increased by government action by The total for 1920 he add added d. d was The statement said in part The labor bill to the carriers In 1916 which was ns before the Adamson f r law took effect stood at I COSTS INCREASED 1917 when the Adamson law lawas In was as asin In effect the aggregate compensation I of the of the carriers of at class 1 amounted to an in increase increase in in- crease over 1916 of ot This was increased by the railroad administration in 1918 so that the labor I I cost for that year ear or an anI I increase over 1917 of i This was Ivas further Increased by the railroad administration in 1919 so that the labor cost for tor 1919 was or an Increase over o 1918 of and an an increase over 1917 of and over 1916 of 1374 1314 I This labor Jabor cost for 1919 was further Increased by the railroad labor laboI board I in 1920 so that the labor cost for tor 1920 was or an increase over 1919 of ot I |