The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-02-21
REPLY TO ROOSEVELT.
Statement by the President of the
Louisville 6 Nashville r.. r..

New York, Feb. 21.-President
Milton H Smith of the Louisville and
Nashville railroad company in g
statement given to the press COM
! ments upon the letter which on Tues
! day President Roosevelt addressed to
the interstate commerce commission
| In his communication the president
directed the commission TO compile
data concerning conditions on the
louisville and Nashville and other
railroads which had taken steps that
might result in a reduction of wages
to employees and consequent contro-
versy.
President Smith first states that the
interstate commerce commission is at
present in possession of the data to
enable it to promptly advise as to the
conditions obtaining which justify a
reduction in pay.
He continues:
"Such data will show that during
the past six years there has been ma
terial increase in the pay of nearly all
classes of employees the last important
increase of many classes becoming eff
fective March 1907; that during the
five years ending June 1906, there
was material increase in the gross and
net revenues Of the company; that for
the year ending June 1907, there was
a large increase in gross revenues,
with slight or nominal increase in
net revenues; and for the six months
ending December 1907, there was a
small increase in gross revenues, a
large increase in operating expenses
and corresponding decrease in net
revenues"
He adds:
"The result of operations for the
month of December is as follows:
Gross earnings decreased 1894, 94S,
operating expenses increased $96, 440.
net earnings decreased 1891, 1888. Add
ing other income and deducting
etc, not including dividends show a
deficit of $237, 1878"
Enforced curtaiIment resulted in a
cut of officers salaries 8 and 10 per
cent on February 1, last, and notice
to other employees that on March 1,
their wages would be reduced to ap-
proximately the pay they received
prior to the advance Of March l.,
1907. Mr.. Smith denies the likelihood
of a controversy with the employees,
who he believes will loyalty accept
the unavoidable cut.
The statement concludes:
st make the following quotation
from the presidents communication in
which he quotes from a communica-
ton of a confidential character from
& Nashville Railroad company to the
system chairman of the Brotherhood
of Locomotive Engineers and the
chairman of the Order Of Railway
Conductors:
lone of them, the Louisville &
Nashville, in announcing the reduc-
ton states the drastic laws inimical
to the interest of the railroad that
have in the last year or two been en-
acted by congress and the state legis-
latures are largely or chiefly respon-
sible for conditions requiring the re-
duction.
1.-The following is a more extended
quotation from the same communica-
ton:
with the present conditions con-
fronting us and with the drastic laws
inimical to the interests of the rail-
roads that have in the last year or
two been enacted by congress and by
the state legislature which have Ne
suited and will undoubtedly continue
to result in the loss of revenue and in
creased expense. thereby greatly i'm
pairing the company's credit. 1t Is
clearly apparent that there exists an
urgent necessity for reduction in the
company's expenses
From the foregoing 1t will be seen
the general manager did not assert
that the legislation was largely or
chiefly responsible for the conditions
requiring the reduction, but that such
legislation has resulted and will un>
doubtedly continue to result in loss of
revenue and increased expense'-a
statement which I am sure no one will
to controvert."