The Railroad Builders: A Chronicle of the Welding of the StatesMoody, John
History
The Railroad Builders: A Chronicle of the Welding of the States
Moody, John
Railroads -- United States -- History
Thus, in essence, the public had obtained the reform which it had been
demanding for years. The reorganized commission did not hesitate to
exercise its new powers. It soon began actually fixing rates, and from
being a half-alive despised institution it rapidly developed into one
of the most powerful agencies of administration. In the succeeding ten
years its powers were still further enlarged by acts of Congress and the
privilege of fixing charges practically passed out of the hands of the
railroads into the control of the Interstate Commerce Commission. The
railroads, that is, practically lost the power to regulate their own
income. Meanwhile, the progressive movement in American politics had
led to the creation of commissions in most of the States, with similar
authority over rate making within the States, besides exercising
numerous other powers over service and capitalization. Many railroads
fell upon evil days and receiverships again became common. Naturally the
railroad managers attributed these calamities to the fact that they were
so constantly being regulated; but they probably pushed this claim too
far, for the causes of their troubles were more complex.
In 1916, in the heat of a political campaign, the Federal Government
took a step which introduced a new principle into railroad management
and made the roads practically helpless. The four brotherhoods of
railroad operatives were making demands for a so-called eight-hour day,
and threatened a general strike that would paralyze all business and
industry and throw the whole life of the nation into chaos. Properly to
appreciate the consequences of this event, it is necessary to keep in
mind the fact that the plea for an "eight-hour day" was spurious. An
eight-hour day cannot be rigidly enforced on railroads; the workmen well
knew this, and indeed they did not really demand such working hours.
What they asked for was a full day's pay for eight hours and "time and
a half" pay for all in excess of that amount; that is, they demanded
an increase in wages. President Wilson, having failed in his attempt to
settle the difficulty by arbitration, compelled a Democratic Congress
over which his sway was absolute to pass a law-sponsored by Chairman
Adamson of the House Committee on Interstate Commerce--which granted
practically what the unions demanded. In passing this law, Congress
asserted an entirely new power which no one had ever suspected that
it possessed--that of fixing the wages which should be paid by common
carriers and possibly by other corporations engaged in interstate
commerce. The railroads immediately took the case to the United
States Supreme Court, which promptly sustained the law. This decision,
unquestionably the most radical in the history of that body, declared
virtually that Congress could pass any law regulating railroads which
the public interest demanded.
Public-domain text, read in full here on John Shaqi.
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