Page:Walter Renton Ingalls - Current Economic Affairs (1924).pdf/54

40 a high average. In 1918-20 the advance in railway freight rates lagged far behind that of all other things. The further advance in railway rates in 1921 along with the decline in other things brought conditions fairly into tune for the first time since 1914. Obviously there is no fault reasonably to be found with railway freight rates, either past or present.

On the other hand the wages of railway employees in the aggregate advanced steadily. Up to 1918 they lagged behind the general advance, but beginning with that year they outstripped it greatly, and after 1920 they did not fall commensurately with other things.

Analysis of railway labor compensation between the men directly engaged in train service and all other employees shows that the former have not fared anywhere near so well as the latter. Whether this reflects the moderation of the four brotherhoods or the bedevilment by the governmental administration need not be considered here.

We must not undertake to draw too fine deductions with respect to the proportion of railway service and railway labor to the national income, owing to the possibilities of some experimental error in the determination of the latter. It appears, however, that the proportion for railway service has been increasing somewhat. With the index of freight rates lagging behind the general economic index there should be the opposite result. That the contrary is in evidence is ascribable to the increasing constraint to move a given tonnage of freight more miles. In other words, whatever increase there has been in the railways’ share of the national income is due to the obligation to