Joint Views

One day last week the Association of American Railroads announced that Class 1 railroads had an operating deficit in February for the first time in 17 years-- $2,136,481, against a net operating income of'$38,792,779 in February 1937 and $58,367,529 in February 1930. Two days later Franklin Roosevelt told a press conference at Warm Springs, Ga. that the special railroad report of ICCommissioners Splawn, Eastman & Mahaffie, given to him fortnight ago, would not be made public until after he had conferred in Washington this week with a group of operating railroaders. Then, said the President, definite recommendations would be sent to Congress in a special message.

When the railroaders got together with the President this week for their last say in the matter, they brought a plan cooked up by chunky George Harrison of the Railway Labor Executives Association. Labor's George Harrison suggested that the Government grant the railroads an outright subsidy sufficient to bring their revenues to the normal $800,000,000 a year. This might mean a Government outlay of as much as $465,000,000, would presumably be produced by RFC. John Jeremiah Pelley of the Association of American Railroads nodded in approval. So did his committee of presidents: Frederick Ely Williamson of the New York Central, Ernest Eden Norris of the Southern, Samuel Thomas Bledsoe of the Atchison, Topeka & Santa Fe.

It was further suggested that the money from RFC, if it be regarded as a loan, be regarded as an unsecured loan. Few U. S. railroads have anything left to borrow on. The subsidy would put men to work not only on the roads, but in the heavy industries from which the railroads normally buy so heavily.

How Franklin Roosevelt replied to this proposal was not disclosed, but grapevine rumor reported him as dubious of its practicality. He was also reported to have asked that no wages be cut by the roads. When George Harrison and fellows emerged from the White House after two hours all he would say was: "We presented the joint views of railroad labor and management. . . . The next move is up to the President." With many a major road ready to totter at any moment, it seemed unlikely that Franklin Roosevelt would delay more than a few days.

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