Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1921-10-27
Propose to Reduce Wages and
Return All the Saving by
Reduction IN Charges.
FULL TEXT OF THE PROPOSAL
Statement by Thsmas do witt cuyIsr,
Chairman Of the Association -
Railway Executives IN
the Situation.

nearly all the leading railroads in the
country. Mr.. Thomas De witt Cuylsr.
Chairman Of the Association Of Rail-
way Exseutives. made the following
statement:
At 4 meeting Of the Association of
Railway Executives today, 1t was de-
termined by the railroads OF the United
States. to seek to bring about reduc-
ton in rates. and IS a means TO that
end to seek q reduction in prcze,,.
railroad wages which Lave compelled
maintenance Of the present rates.
An application will he made lmme-
diately to the United States Railroad
Labor Board for q reduction In wages
OF train service employees sufficient to
remove the remainder Of the increases
made by the Labsr Boards decision Il
July 20. 1920 (Which would involve q
further reduction Of approximately ten
per cent?. and for a reduction In the
wnges Of all other classes Of railroad
labor to the going rate fer such labor
In several territories where the car
riers operate.
To Reduce Rates az Wages Go Down
The foregoing action is upsu the un-
Outstanding that coacurrsatly with
such reduction IN wages the benefit OF
the reduction thus obtained shall, with
the concurrence OF the Interstate Com
merce Commission. he passed on to the
public In the reduction Of existing
railroad rates, except In 30 far as this
reduction shall have bsen made In the
meantime
The arrangements have decided upon
this course In view Of their realization
Of the fact that the wheels OF Indus
trial activity have been closed down -
point which brings depression and
distress to the entire public. md dat
something must he dsae to start then
again In operation.
The situation which eslfrents ~
railroads n extremely critical. TIE
railroads in 1920 realized a net railway
operating ineome q about So2 900, ga,
uPer q property Investment Of svur
$1a, 900 .ooo, 900. aad even this amsxnt
Of 81 nillien included hack nall az
fer prtsr years received frsn the ~.
erHmnnt Of approximately ~ ~, go
thus shsvia1. Naen the sesrutisas e
that year sisas are considered. a
actual deacit before nakt,x aay u
iswance fer other Interest Or livs-
dends.
The year enled in serisss lspressisn
In all branches Of Industry. and In
marked reduction Of the market de-
nhad for ard ne prices Of Sasis com
nodities. resulting II q vsry ssrieus
falling on In the veluae q tranne.
Rssss Forced to Defer haintensns,
In fhis situatiae. = s,iey Of the mont
rigid economy asA Of IssAeooi.S and
cutting to the boas the sDksse q the
properties was adsstal b. tie hail
roads This was at he n1os q ~.
lecttns ant for ~ tins Ssfsrinp
work which must hareaftsr alI 4. De
near future be dsas and pssd for. TSls
ls illustrated BY the fact that. az q
septenher IL. 1871. ever 10 psr sep<
Or T4,4sl In lunker. Of the freight
oars q Ae arrisrs were N LAd ssler
and needing reSsirs, - against q a.r-
na ~ sai sr1or caas If act ns,e
e0an h0.e0e. ~ IL further Rnstrstek
~ the deferred and iAaess Iats nai,.
runaaas e ether esn:pnAat - q
ROADWAY. snd strvotsrss.
HVan undsr these oolAkSna -
WIZ n's large ILL charged - sxsA.st
zoe futurs.T1wtch must seen 10 ~ro-
vidsA fsr add paid V ~ sas~Gs.s are
70 perform SUCCESSFULLY their trensnar-
C2sp auSAs,-ths result Of opsrations
tsr the nrst eight months q this year
q hes6 available figures, has hs>a
1t 4 rate e net railway spAranas in
e, Ssfsrs prsvidiax for htec..t
- dH>eeAs, aHsuatiax 70 ely "A
pr seat, Dsr aAnuna on the yslua tie.
- the carrier properties MADE by II.
InfsrStats Commerce Csnnisde. I,
- rse>at rate case, IN amount ~
suAcieHt to pay the interes, ., tha,
ss>sta.ding bonds.
hssSS Earnings Far Below Reasensbl.
Returns
II y manifest, from this sh.x,,.
that ohs rate Of return Of 5H or 6 nsr
cent for the hrst tive years after Hsr.s
!. l'2o. fixed IN the Transport alton AT
as minimum reasonable return ma,
railroad Investment. has net been even
aSproximated-much Lose reached.
80 mat the present high rates accord.
hsiy are net Tue to any statutorv
guarantee Of earnings, fer there n No
such guarantee.
In analyzing the expenses which
nave largely brought about THE xr,r,.
ton. II becomes evident TINT nv ia
the largest contributing cause is IN.
labor cost.
Today the railroads pay out to labor
approximately Coo on the dollar they
receive for transportation services
whereas In 1915. 4Oc on the dollar went
to labor.
On the first day Of January. 1877.
when the government took charge ~
wages through the Aiamson Act no
labor cost Of the railroads had rot
exceeded the sum Of about 81. 4ea ooo