Evening journal., 1912-03-26
EaiIroed Managers Say it
Would Mean Total Ia
crease Of $7,5OG,OOO
UNABLE 70 BEAR THIS,
THE OFFICIALS SAY


letter Of the railroad managers to Mr..
Stone is of interest to railroad men
hereabouts, and is as follows:
New York, March 25, 1912.
Mr. w. S. Stone, Grand Chief Engi-
neer, B. L. f., Broadway Central
Hotel, New York
Dear Sir: The Conference Com
mittee of Managers has given careful
consideration to your presentation OF
the proposals of the locomotive engi-
neers fr an increase of wages and a
Standardization both of wages and the
working conditions of engineers upon
the railways lying east of Chicago and
north of the Norfolk and Western
Railway, which territory you desig-
nate as the Eastern District
The railways represented in this
district are fifty i'm number and carry
about one-half of the passenger and
freight traffic of the United States.
THE proposed increase in wages
and changes in working conditions
would increase the pay of engineers
of the railways of the Eastern Dis
trict for the service now being rend-
cred. by the following amounts per
annum:
Passenger service. s1.253, 1851;
freight service, $3,57S, ,391.73; switch
ing service, including belt, Sl,052,30
80; terminal delay, $S04, ,154.71 other
working conditions, SS65, ,406.49; total
increase 1888, 1924, or 1853 per
cent.
"This increase would be equivalent
TO placing on these properties a lien
of $1SS,S44, SIS of four per cent. Sc
curities which would have preference
over first mortgage bonds, and to just
that extent would lessen the ability Of
the roads to make the improvements
necessary to increase the efficiency Of
their service, and to insure greater
safety to the public and the en-
ployes.
Already the traffic Of a growing
country has Over-taxed the existing
facilities; and the heavy burdens in
Cured through legislation, the large
Expenditures for improvements which
produce no revenue. and the previous
wage increases. have made il inn
POSSIBLE for many of the roads to
raise money to provide the added
Facilities which a prudent foresigh;
demands.
Past history indicates that If these
increases are given to the engineers
they will be followed by similar re-
quests from other employees, which, Il
granted. would result in actual bank
kuptcy 10 some of the roads, anc
would leave them as a whole unpre
pared to meet any sudden increase II
the demands for transportation.
The wage advance TO engineer
snd other employees in 1910 was mad
in expectation of a much needed ad
vance in freight rates which the In
terstate Commerce Commission de
clined to allow. Enforced reduction;
of rates have been moreor less con
tinuous since that period and man!
important rate reductions are nov
bending. the latest decision being II
the Pittsburgh Lake Coal case, re
quiring an average reduction o
10.0476 cents per ton in the freigh
rate, which will directly affect owe
81 100000 tons of coal per annum
and the general effect upon freigh
rates on fuel and commercial coal viii
he far reaching.
1T is less than two years since tn
last adjustment of engineers wage
was made i'm the Eastern District
which resulted in an annual increas
of engineers pay amounting to SO,
923, ,6s0.61, or 1913 per cent. per an
mum. In this adjustment, all condi
tions of the service then prevailing
we're considered and provided for. ant
since that time, there has been NJ
substantial change in these condi
tions.
"The conductors and trainmel
have standard wages as a result Q
the crisis developed in connection
with their Gemanrs which were final
ly disposed of by mediation aud ar
bitration: not that the railroads wer
satisfied with the standard scale, bu
because of the conclusions reache
by the arbitrators. The fact tha
another class Of employees ha
through stress OF circumstances Sc
cured a standard wage in a certai
territory, does not make it righ
There are many inconsistencies I'M
standard wage that should be care
fully considered. It must be appal
ent that all railroads are not equal
able to pay a standard rate, and
would be manifestly unfair not to rec
ognize dissimilar working condition
existing on the different roads and th
different parts of a system, and th
marked variation in earning caps
city which governs their ability
pay wages.
"The ability Of the railroads I
meet the recurring demands for il
creased wages is measured by III
net results of their operation and tn
sum of the obligations which the
must meet to maintain their so
vency. The reduction Of the NJ
revenues by the constantly increa;
ing expenses of operation have S
narrowed the margin which is ei
sential to the solvent existence
many of the roads that further il
!, creases in operating costs are view
ed with grave concern. To illustrat
the tendency in this direction du
ing the past two years, the followin
figures from the reports of the Inte
state Commerce Commission are sui
mitted for the railways of the Eas
ern District:
" Miles operated, 1911, 52.S36: mil,
operated. 1910. 52,340; increase 40
Total operating revenue. 1911, 81
114.027.24S: total operating revenu
1910. S1,O95, ,4675S9; increase SIS
559.659
Net operating revenue. 1911, 1896
159 1909: net operating revenu
n 1910. S357,S1O,1O9; decrease, S27,65C
200.
Total number of employees, 191
679.179: total number of employe
1910. 687, ,376; decrease, S,197.
Total compensation to employe
1911, S51S,7S1 1856: total compens
ton 1910. $479,364, 1874; increase, S3s
416 S02.
From these figures it will be see
that while gross earnings increase