The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-05-04
REDUCTION OF WAGES
NOT CONSISTENT
With Large Returns Being
Paid to Holders
of Stock


pitsburg, Pa. May 4--so long as
mally Of the big railroad systems OF
he countfy continue 10 pay higher
dividends Nan they earn while they
tfontsnne 10 borrow enormous sums of
.dnoney. there Wiil not be q general re-
Huetlpn IN wages on Western railroads
This decislou was reached at Sc.
fret conferelce OF western presidents
',lu Chicago ihk week. Following tho
c1terence ccftun labor leaders were
given 10 undrrsand that the western
reads did not contemplate an immedi
pie reduction buy no reason 70, the
thssnance was giNen. 1t was ls,Ned
% keep the reason from the knSY1,
fdee of the public because Of the IA,
4eYorablc criticism upon existing meth
pds OF railroad financigg. according
70 promlnent railway official II was
fbe senefal opinion. according 10 this
nificial Tint business conditions fui.
ly warranted a reduction IN wages
hut that sucn action would not be iol-
erated SO long as the railroads or
many OF them are paying their stock
holders large returns and are con
stantly In ihe market as large borrow
'ers.
II Is understood that the presidents
4ietipr 20 the Interstate commerce com
(nission regarding tht wage question
ils what gifve the western presidents
bthe tip that Inconsistency in the mat
2tcr would moi be tolerated by public
4ppiiiion nor by he president who is
4 IN position 10 arouse public sentiment.
lThe action Of the western men is en-
4 ilreiy disassociated withsany action
t..f.. e.
stated however. that ihe eastern pres
ldenfa have been notified Of the po-
i sition taken by The western men. 10
1 eelhpr With the reasons for the snme.
4 fli Is hoped IN the west that the east-
ern lines VIII see the !, ,isdom Of their
position and VIII not disturb wages.
Improvement in Traffic.
II IS declared that despite the unde-
sitahilily Of q reduction In wages the
dime may come when It. will be neces.
sary, no matter what criticism Il may
entail That such an emergency Is
liRely 70 arise Is not the belief of The
western men, who SEE a slight i'm.
proyement Ia traffic and Ia general
business. On she other hand II the
biz railways IN the country reduce
their dividends TO q point where crit
iciem Ii Impossible when earnings and
physical needs are taken info account,
the situation would become different.
II was recognized in the conference
that during the past year the railroads
had been smitien With a mlcrobe Of
dividend raising Some of the dlvi-
deud Increases were undoubtedly war
rnhted BY conditions and earnings. but
NOT q few were the result OF cmula-
tiop, OF personal pride or of greed
upon the part OF the large Individual
shareholders
The bitter truth OF this Is now being
brought home TO more than one rail
road and all roads recognize that In
many of the big enterprises OF the
past twelye or fifteen months the cart
has been placed before the horse.
For example i Is held that the New
York Central management made ar.
raneemenia and contracts for a great
deal of work and FOR the purchase Of
equipment before taking Thought of
the financing which was necessary
The result was that the compons was
caught by the necessity of becoming
large borrower when money was
tieht About this cline the dividend
rate Of the company was raised and
the auspcion that the increase was
for the purpose Of booming the credit
of the company was freely circulated
Il was even said that ; pierponi Nor
eana agreement 10 take tue New York