The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-11-17
Other Railroads Follow Lead of
the Pennsylvania.
Wages Being Raised by All the
Roads.
REDUCE THE SURPLUS.
g Railway Age " Thinks the
Problem Is Serious.
May Reduce Income on Capital
to Is Per Cent.

Following the lead of the Pennsylva-
MIA railroad. which increased the vase
of every employee earning less than 5000
month 10 per cent, other great or
ganizations Of similar kind will do like
wise.
The New York Central and it's tribu-
taries. it is announced. will increase the
wages of their employees to the amount
of about s5,00O.000 per annum. This in
crease Will involve the Vanderbilt roads
as far west as Chicago, and will include
the system as far east as Boston.
Whether the increase will be a level
one Of so much per cent. or will be
graded according to the present wages,
remains Cor the officers of the road to
say. 1t is thought an authoritative an
nouncement WEI be made soon.
From Philadelphia comes an an
Eouncement that the PHILADELPHIA &
their employees the same increase as the
Pennsylvania. This will affect about
Is, 900 employees.
From Pittsburg comes an announce
ment that the Baltimore & Ohio man
ayers hare decided to make a 10 per
cent. advance N the wage scale.
The Grand Trunk Railway of Canada.
which has been paying very low wages
Tor some years. has granted its engl-
neers and f1rement an increase of from Is
TO % per cent, according to dispatches
from Montreal. This is the result of an
eight weeks conference with w. D.
Robb, Superintendent of motive power.
Railroad officials, as a rule, admit the
truth of President Cassats statement
that living expenses have increased
fully % per cent. in recent years, while
wages Of railroad men have remained
stationary
In the present unparalleled prosperity
of the railroad business throughout the
country. it is felt that it is only fair to
let the men who do the work share In
the profits. This is especially true in
view OF the fact that the rush of busi-
ness on all the roads is making the men
work harder than they ever did before.
The increase of 10 per cent in the
wages of employees made by many of the
great roads, and to be made by all of
them, means an extra cost in the opera
ton of the great roads of SIS. 900, 900.
1t is estimated by eminent railway
officials that the number of men en-
ployed by the railways the current fiscal
year to June 80 next will approach a
million and a quarter. Upon this basis
a 10 per cent increase in wages win
bring the extra cost up to at least
$75, O00, 600
In discussing the outcome of these i'm
mense increases in the wage disburse-
ments of the railway systems, the Rail-
way Age says:
of 81, 622. OLA 900. which the railway COM
panies in the United States earned and
received from other sources in the last
year reported by the interstate COM
merce commission? First. 500. 713 900,
or over three-eighths of the whole, went
for wages. Then s420, 900 900 were paid
for other expenses of operation, 5000, 0O0,
900 went for interest and taxes, 500, $685.
900 for permanent improvements and
miscellaneous expenses, and $131, 626, 900
for diVidendS-equivalen to about &c
per cent on the entire share capital
leaving $84, 764 900 credited as surplus.
Employees are now, and in many cases
justly, asking a material increase in
wages, and the problem over which
mana gers and directors are worrying, is,
to what extent can wages be increased,
concurrent with the great increase in
all operating and construction expenses.
An advance of 20 per cent all around.
which some suggest, would have
amounted for the year named to over
$122 900, 900, which, besides wiping out
the entire surplus for that year, would
have cut off $37 400, 900 from the divi-
dends, reducing that return on the CAPT
tai stock to an average of about Is per
cent for the entire country. These fig
ures merely illustrate the far reaching
effects of a general increase in the
wages of an army of over 1000 900 men,
and help to justify the caution with