The Richmond palladium and sun-telegram., 1920-07-26
PENNSY'S LAY OFF
Of 10000 NAY Be
FOLLOWED BY OTHERS


sweeping orders to dismiss $4,000 en-
ployes on the Eastern lines alone and
that similar action was likely to be
taken on other parts of the system.
only last week it was widely reported
that industrial plants all over the
country were closing down because
raw or finished materials and coal
could not be moved. What could have
happened to bring about the sweeping
retrenchment orders issued this week
by Pennsylvania?
For generations Pennsylvania has
been far ahead of all other railroads in
recognizing the psychological moment
for issuing sweeping retrenchment or
ders. Following this weeks statement
from that company, one railroad after
another issued announcements to the
effect that no retrenchments had been
planned. For example, New York
Central official, in commenting on
Pennsylvania's action, was quoted as
saying that his company had need for
all the men it was employing, adding
that it regarded them as good men,
who were hitting the ball" and not
only hod no Intention of dismissing any
but 1t would like to employ good
many more.
Others May Follow.
AS has happened many times before,
New York Central and other prominent
railroads will fall in behind Pennsyl-
vania, sheepishly admitting Pennsyl-
vania's wise leadership.
There are good reasons why Penn
sylvania time after time has issued
orders such as those put out this week,
while other railroads apparently were
blind to conditions actually existing. In
the first place, since the time OF its
incorporation in 1916, the Pennsyl-
vania has been freer than any other
big railroad in the country from
entangling Wall street alliances. The
Pennsylvania is and always has been
managed not by Wall street but from
the Broad Street station, Philadelphia.
Therefore, in planning an important
change in policy such as that an
nounced this week, it's directors, a
great majority of whom have no Of
fetal connection with other companies
turning out steel, coal, locomotives,
freight cars, etc, can display inde-
pendence.
That is one reason for the Pennsyl-
vania's leadership. Another is that
having it's fingers closer than any
other railroads on the pulse of the
Pittsburgh district, the country's rec
ognized industrial center, the company
is in a better position to get the first
signs Of either trade expansion or re-
traction.
Recalls 1914 Move.
Early in 1914 the bottom dropped
out of our domestic business. First
Pennsylvania stopped all Improvement
and betterment work. Then it put 40
900 men on part time and let $4,000
80 hn OaSno6
they are now doing, but afterwards
fell in behind.
AS early as February of 1907, when
most railroad officials were busy talk
ing about the ruinous shortage of
trans portation, Pennsylvania, because
money could only be raised by sale of
short-term misunderstanding notes,
began to curtail improvements and bet
terments. Then all extra men were
laid off. Next regular men were laid
off and then wages were cut. Many
railroads did not see what was coming
until idle cars began to pile up to
record breaking figures. Then when
the recovery in business occurred, late
in 1908, and early in 1909, Pennsyl-
vania, as usual, was again the leader
In October Of 1908, while railroad
officials were talking, as they are to-
day, about inability to meet the de-
mand Of the travelling and shipping
public, especially those in the West,
PENNSYLVANIA suddenly issued drastic
retrenchment orders. Then in time
the trade reaction Of that year was in
full swing and other railroads fell in
behind. In the recovery, which started
in 1904, Pennsylvania was again the
leader.
10 o0oyy "a
back in 1898. In December of that
year the Pennsylvania directors met,
talked over the trade conditions and
the outlook for the future and issued
orders to President Roberts to re-
trench in every possible way. AS a
result President Roberts posted the
following notice: In 1857 and again
in 1873 this company found it absolute
ly necessary to reduce expenses on all
sides. The present depression has af-
fected all industries and we must again
economic wherever possible.
Slump Is Reason.
In this weeks announcement two
reasons were given for the dismissal
of 10000 men. One was that "a big
traffic slump is noticeable. The wool
len, leather and textile trades are at
low ebb" The other was, THE time
has come for men to go to work. Some
have merely held jobs since the gov
ernment took over the operation of the
railroads"
Such action had to be taken. The
governments guarantee of net income
ends on Aug. so. Today the company
is not even earning its operating ex-
renses and taxes, to say nothing OF
interest charges and dividends. Other
railroads are in the same fix.
If it is the truth we are looking for.
railroad officials can not lay all OF the
blame for the present inefficiency on
employees. The high officials them
selves, when the government was
forced to take over the railroads as a
war measure, began to sulk. And they
kept it up until most Of them were
fired. BY that time, however, further
efforts on the part Of railroad officials
to discredit government operation
we're not necessary: railway labor was
LAYING down and making a good job
Of it.
CI NJ