The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1908-01-27
RAILROADS CONSIDER
WAGE REDUCTION
Experts Figure $I4O.OOO.OOO
Worth of Equipments Idle.
Companies Considering General Cut In
Wage Scale Ia Meet Decreased
Income.
THOUSANDS Or MEN ARE IDLE.

Whether or not It will be possible
to avoid a general reduction in wages
has been under discussion in several
headquarters OF big railroad systems
this week. The question has become
acute with a continued decrease In
earnings, which became pronounced
with the beginning OF the panic and
assumed yesterday a more serious
phase with the presentation of statis-
ties showing a remarkable increase in
the number OF idle cars. says the New
York Commercial Various railroad
representatives expressed the hope
that any general reduction would be
Iayoded. All admitted that II was per
force under consideration, though few
expected any actionto be-taken before
the last day OF the month.
The statistics OF idle ears are the
results OF an absolutely accurate com
pilation from Official sources. They
show that a week ago 500 900, or IA
percent. OF the 2,2O0, 600 freight cars
In service In this country were laid
up because of lack OF business. BY
an odd coincidence the number ofidle
ears Is almost exactly the numbers of
cars that have been added to the equip
ment of all the roads In the last two
years. At an average price OF $1,000
apiece, the cars represent an invest
ment OF $500 900 900. To hall them
with average train-loads would re-
'quire 10000 OF the $4,000 locomo-
tlves in the country, SO that railroad
statisticians estimated that s120.-
goo 900 invested in locomotives was
idle also. The total of idle railroad
equipment they accordingly estimated
as representing an investment of
81 40 900 Zoo.
Thousands upon thousands of men,
of course. .are idle because the loco
motives and cars are idle. The fixed
charges on the investments and a null
'titude of other expenses on account of
the equipment remain. The savings
in wages according do not conpens-
ate for the loss in income.
The number of idle cars on the date
of the report was much greater than
on any previous day since the begin
ming Of the panic. On Oct. 80 there
was shortage of about $1,000 cars,
the demand then, exceeding the sup
ply Since that time the demand has
steadily lessened. A year ago there
was the greatest difficulty in securing
cars at every important trading point
in the United STATES. Every railroad
system in the country has already re-
duced It's wage account, but the re-
ductions have not yet brought the
aggregate amount paid for labor down
TO what was paid before the wage
scales of 1907 went into effect. Up
to the present the reductions have
been made almost entirely by laying
off men and by reducing the hours of
employment. The New York Central,
for instance, laid off enough trains a
week or so ago to bring about a saw
ing of $3.50, 900 in the course OF a
year. The Central had previously
laid off a large number of employees,
but the entire saving does not equal
the IS, 600 900 or SO 1000 900 which
the Central paid out last year in in
creases of wages. The case is the
same with the Pennsylvania, which as
result of increases of wages paid out
$12. 600, 900 extra in 1907.
With most of their employees the
majority of the roads haye contracts
providing for 80 days notice before a
wage scale can be revised. Whether
or not this notice will be given is the
point under consideration, and II is
certain that II given II will be given
reluctantly. Indications of improve
ments In earnings might cause an
abandonment of the subject alto
gether.
None of the roads wants to make