The Birmingham age-herald., 1906-10-22
STATES POSITION
 OF THE SOUTHERN
GENERAL MANAGER H. B. SPEN- GER ISSUED LETTER TO THE STRIKING MAcHINlsTs-coPIEs RECEIVED IN BIRMINGHAM.


 chinists, who are on a strike, issued by General Manager H. B. Spencer has just been made public Copies have been re- eeived in Birmingham by members of the union and also by officials of the railroad:
 Washington, D. C. To Southern Railway Machinists:
 Your action declining to accept the proposition offered by the company re- spectng rates of pay and rules and regu- lations, has been brought to the attention of the operating officers. Because of the difficulty of acquainting a large body of men by means of personal interviews with the attitude of this company by these questions, it is deemed expedient to pre- sent the situation in the form of this letter.
 It is the desire and effort of this com pdny to pay it's employees a rate of wages fairly commensurate with the character of service rendered and the condition sur rounding the employment. That this policy is habitually observed is shown by the fact that the basis of wages paid by the company Is always kept substantially standard. You will also recall that while the rules and regulations now in effect stipulate that the rates agreed upon will remain in effect one year. the company has from time to time without waiting for the expiration of this period, volun- tarily advanced the rates to meet changed conditions. The cordial attitude of the company towards it's employees has been further shown by the fact that 1t has from time to time and whenever desired, received representatives of the respective trades and occupations, for the purpose of adjustments of rates of pay and con dltions pertaining to such trades and oc- equations. and these questions have been in all cases amicably adjusted.
 It is believed that the company has not now departed from it's attitude of cor diality and justice towards it's employees. and that the proposition offered by the company to you through your committee at the recent conference was just and equitable. and should be accepted by you in a spirit of consideration and justice to- wards this company.
 The management first met your com mttee at a conference held on August 20. The committee presented petition for an increase of two and one-half cents per hour to all machinists and appren- tices. together with a proposition for a revised set of rules and regulations. These subjects were fully and freely dis cussed in detail. and 1t was explained to the committee that while the earnings of the property had been materially in creased, operating expenses had increased to q greater extent.
 For the past two months the operations of the lines of this company effected by the increase demanded showed the fol- lowing results:
 Increase in gross earnings. 1079 per cent; increase in operating expenses and taxes, 17.62 per cent. Showing q decrease In net earnings for the last two months of $149,- 976.04.
 As the aggregate increase In rates of pay requested amounted to a large sum. thereby adding largely to the already heavy operating expenses. a general in- crease is not considered reasonable, and therefore could not be granted
 In addition to this, the company Is con- fronted by a serious agitation before va rious state commissions in favor of de- creasing rates of freight and passenger charges, which if put into effect will mean large additional decreases in the net revenues of the company.
 Under these circumstances 1t will be ap- preclated that the time is not propitious to consider a general increase in wages to employees and the company feels that it's employees should in fairness realize the situation and not insist on the general in- crease in wages demanded.
 In this connection 1t must be remem- bered that the company has not been un- mindful of the just interests of the ma chlnist in it's employment. This is shown by the increase of the rates of their pay within the last five years. which. as you are aware from your own experience, have been most substantial.
 withstanding the conditions men tioned, however. the foregoing increases of machinists pay, the company with view of removing any inequalities that may exist in the scale of wages. and to show it's good will to the men. and after the question at length with the made them the following which is substantial in- crease over existing rates. and placed our wage scale on the same basis of that of other fairly comparative railroad shops in the respective territories:
 Manchester, all machinists to be in creased to 1 cent per hour.
 Lawrencevile, all machinists to be in- creased to F cent per hour.
 Spencer. all machnists 10 be increased to F cent per hour.
 Columbia all machnlsts 10 be increased to F cent per hour.
 Charleston. all inachlnists to be in- creased to F cent per hour
 Augusta, all fnachnists to be increased to 2ls cents per hour
 Atlanta. all machinisis to be increased to 1A cents per hour.
 Birmingham. all m9Gbinists to be in- creased to 1 cent per hour
 Selma. all machinists 10 be increased to F cent per hour.
 Knoxville. all machinists to be increased to iz cent per hour.
 In view of the situation as above out