The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1919-07-18
GREEN LINE OFFICIAL
ISSUES STATEMENT

Charles z. Lawrence. vice president Of
the Hammond. Whiting and East Chi
cago Ry Co. today made the following
statement:
The men are asking for an increase
of pay TO S5c an hour. The present
maximum is 4Sc. and the demand is for
an increase in II per cent over tho pres
ent scale. In addition to this they are
demanding a straight s hour day; a 8
day week; and time and one-half for
overtime. The scale was advanced Aug
l, 1918. from 80 to As cents maximum.
This increase added approximately s4S.-
600 to the annual operating expense of
tho company. The increase now de-
manded. if 1t were possible to grant it.
figured from our payroll. would add ap-
proximately S184,o0O to the annual OPP
Grating cost. In addition to this in
crease. there would be added to the com
panys annual operating cost. many
thousand dollars because Of lost time
and the employment of extra crews IL
the eight-hour day and the six-day week
became effective. I estimate. If the de-
mands Of the men were granted. IT
would add a least s225,o0 to the com
pany's annual operating expense.
1T is absolutely impossible for the
company to pay the increase demanded.
or any part OF it, without additional
revenue. The cost of all materials and
operation has increased enormously durS
ing the period OF the war. and our books
viii show that Cor the first six months
of the year 1919. the company has spent
approximately $4,000 more than it has
taken in. Aside from the wage increases
doubtful if the company could continue
TO pay its necessary operating expense
and fixed charges, without an increase
in revenue. We are limited by our
franchises TO five cent fare This fare
is for a long haul, between any points
in the cities Of Hammond whiting and
East Chicago, and over thirty miles of
track. Notwithstanding the enormous
increase in the cost of all material we
use and substantial advances IN the
wage scale. and the cost of operation
within the last few years. the fare re-
mains the same fate rate that was au-
thorized when the company started OPP
GRAFTON more than % years ago. While
there has been q gradual increase In the
volume Of business during the same
period. it has by no means kept pace
with the advancing cost OF operation
For the year 1919 to date. there has been
a shrinkage of receipts compared with
1918. due 10 the fact that the Industries
that the line serves. have made substan-
tial reductions in their working forces
following the armistice.
The relation between the Hammond
company and its employees has always
been friendly. and I regret very much
that a situation has arisen. which
threatens these relations. and may re-
suit in a tie-up of the system. The
company has always been. and now Is.
willing to accede to any reasonable de-
mands of its employees. so far as it IS
able. 1t looks upon the demands that
are now being made as unreasonable
under existing conditions. In any event.
the company is powerless. 1t cannot
pay increases If II doesn't have the
money to pay them with.
The Company sought last fall to
obtain. through the Public Service
Commission an increase of fare that
would enable It to cope with increas-
ing costs, but then Commission refused
! to grant the increase. We are there
fore in a position where we can do
form OF an increase OF fare. We have
operated the lines during the last few
years. under conditions presenting
many difficulties. of which the public
| Is not aware. We will continue TO OPP
crate them as long as we are able. But
If. as a result Of the present demands
a strike should follow and there
should be = suspension Of service. the