The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1921-10-21
Propose to Reduce Wages and
Return All the Saving by
Reduction in Charges.
FULL TexT0F THE PROPOSAL
Statement by Thomas Dewitt cuyler,
Chairman Of the Association Of
Railway Executives, on the
Situation.

Oct. II. 1921. OF the presidents of near
ly al The leading railroads in the
country. Mr. Thomas Dewitt Cuyler
chairman OF the Association OF Rail
way Executives made the following
statement:
At meeting OF the Association
or hallway Executives today II
was determined by the railroads oil
the United States TO seek TO brins
about reduction In rates. and as q
means to that end TO seek a reduction
In present railroad wages which have
compelled maintenance of the present
Rates
An application will be made i'm
mediately TO the United States Rail
road Labor Board for a reduction In
wages or train service employees sum,
I cient TO remove the remainder OF the
! increases made by the labor board 9
/ decision OF July 20, 1920 (which would
: involve further reduction OF ap.
proximateiy 1922. and for q reduc.
: ton in the wages OF all other classes
of railroad labor TO the going rate for
such labor in several territories where
the carriers operate.
To Reduce Rates A. Wages Go Down.
The foregoing action is upon the un-
derstanding that concuTrently with
such reduction in wages the benefit o!
the reduction thus obtained shall. witt
The concurrence OF the interstate com.
Tuerce eommi ssion. be passed on TO
he public in the reduction of existinc
railroad rates. except in so far as thi.
reduction shall have been made in the
meantime.
The homogeneous have decided
upon this cou.se in view o. their
realization OF the fact that the wheels
or industrial activity have been closed
down to pc 1T which brings depres-
son and distress to the entire public
and that something must be done TO
start them again in operation.
The situation which confronts the
railroads IL extremely critical. The
railroads. In 1920, realized a net rail
way operating Income of about 362.
100000 upon a property investment
OF over $4,000 OoO 900 and even this
amount OF $1,000 900 included bacs
mail pay for prior years received from
the government OF, approximately s64,-
100000. thus showing. when the opera
lions or that year alone are consid-
cred. an actual deficit before making
my allowance for either interest or
dividends
The year ended in serious de-res-
sion in all branches of industry. and
IN marked reduction OF the market de-
mand ~6or and the prices OF basic com
modities resulting in a very serious
falling on in the volume OF traffic.
Roads Forced 10 Defer Maintenance.
In this situation Il Policy II the m3st
rigid economy and Of pOstponing and
cutting To the bore the up-l,eep 0f the
properties was adopted by the rail
Cats This was al the price OF neglect
HE and. fAr the time. deferfing work
:l.c.i muSt hereafter and in tie near
teIe bc done and paid for This is
ustra ed ny the fact that, us OF Sen.
-. 1921. over l6% or 374.431 in mum
itr. OF the freight cars OF the carriers
were IN bad order and ne 1ding repairs.
as against a normal OF bad order ears
cf not mOfc than 100000. as is further
illustrated by the deferred and made.
luate maintenance OF other equip
ment and OF roadway ami structures
Even under those conditions and
with this large bill charged I'D against
the future-which must soon be pro
Wed for and paid IL the carriers are
10 perform successfully. their trans
pOTtation dut,eS-tIe result OF opera
tons for the first eight months OF this
year. the latest available figures, ha
been al a rate OF net railway operas
ing income before providing for in
tcrest or dividends amounting to on,N
2To per annum on the valuation o.
the carTier properties made by tn
interstate commerce commission II
the recent rate case, an amount nt
sufi cienr to pay the interest on the,
outstanding bonds
able Returns
II is manifest from this showing
that the rate OF return OF 5I5 or &C.
for the first two years after March |.
1890 fixed in the transportation act
as a minimum reasonable return upon
railroad investment. has not yet been
even Appropriated. much less reached.
and that the present high rates &C
cOrdingD are Eot due TO any statutory
guarantee OF earnings. for there IL no
such guarantee
In analyZing the expenses which
have largely brought about this
situation. IL becomes evident that BY
far the largest contributing cause is
the la Dor cost.
Today the railroads pay out TO ia Dor
approximately Soc on the dollar they
receive for transportation serv ces.
whereas in 1916. 40c on the dc liar
went 10 labor.
On The LIST day OF January. 1917.
when the government took charge OF
wages through the Adamson act. the
labor cost ~ the railroads had not ex-
eeeded sum % about 81. 46S OOO DOE
annual leo when governn emit
a. aU' MADE the last wage in
crease . labor cost OF the railrs sss
war sho"t s" 6sS too 900 annually. or.
~ cent MED throughout the year in
stead OF fCr the eisht months du in
which the wage increases were la
effect. the labor cost. on an AMI ual
basis, would have been largely In ex-
eass OF S3 900 600 400 An tncreA