The citizen. [volume] (Berea, Ky.) 1899-1958, 1921-10-27
RAILROAD PLAN TO
GET Rates Down
Propose to Reduce Wages and
Return all Savings by Re-
duction In Charges
FULL TEXT OF PROPOSAL
statemsWt BY Thomas DEWITT cuy'er'
Chairman OF the Association OF
Railway Executives on the
Situation.

Following n meeting In Chicago. DC
tober II, 1921. Of the presidents OF
nearly all the leading railroads III the
country, Mr.. Thomas DE witt Cuyler'
chairman Of the Association OF RAT
way Executives. made the following
statement:
Al a meeting OF the Association OF
Hallway Executives today, II was deter
IN ned by the railroads OF the United
Stntes seck 10 bring about reduction
in rates and a. means 10 that END
90 seek n reduction in present rHllroad
wages which have compelled mainten-
snce Of the present rates.
An spplIcation will be made lmme
dlately 10 the United States Railroad
labor Board for reduction In wages
Of train service employers sufficient
70 remove the remainder OF the in
creases made by the Labor Board's
decision Of July 20. 1920. (Which would
involve q further reduction Of approx
mately ten per cent?, and for a reduc-
tiou In the wages Of all other classes
ot raIlroad labor to the going rate
for such labor Ia several territories
where the carriors operate.
To Reduce Rates a. Wages Go Down
The foregoing action Is upon the un-
dcrstandinx that concurrenty with
snch reduction In wages the benefit
OF the reduction thus obtained shall.
with the concurrence OF the Inter
state Commerce Commission, be
passed on 10 the public In the re-
duction Of existing railroad rates.
except In No far as this reduction
shall have been made in the mean
tine.
The managements have decided up
on this course In view OF their reaii-
ration of the fact thnt the wheels OF
Industrial activity have been closed
down 10 q point which brings depres-
slon ana distress y the sntirs public
aud that something must be done to
start the0 again in operation.
The situation which confronts the
"a iroads v axfrcmely critical. Tho
railroads In 1870 realized a net rail
way operating income OF about &62,.
OO0.O00 upon property Investment OF
over $lo.OOOOOO and even this
amount Of & million included back
mail pay for prior years received from
che 0overumeot OF approximately y
s0s OoO O00 thus showing. when The
,,,er.t,ona ~ N ot Va a, alma a. ~
sidersd =. .rtu.I deo4t before mar.
fnr anv sI,ov.nce for either Intaresi
or dIyidos,ds
.rhe wear ended In serious depres.
slon I'm ali brnnches Of Industry and
An mar "A rv,,uction of the ina rho, IA
snand f~r ana the nric,-s OF basic com.
modIt,c.. reaultins I'm A very serious
falling o1 IN the Volume of traf,c
eoads corosd "a Defer Maintenance
In thls situation. n policy Of tho
s,ost riStd ecopomy and az nostnonIns q
and cutting 10 the hone the upkeep
Of the properties was adopted by the
railroads. This was nj the prIce of
usgiectiue and for the time deferrinr
work Whit, must hereafter and nj the
near future be done and paid for
This In tllustratei nv tbe fact that
as of Septenber n 1921 over ia ner
cent or 37< 13i in number Of tbe
freight cars OF the carriers were IN
bad order and needing repalrs. as
against q normal of bad order cars
of not moro than IeOOOO as il fur.
cher ilIustrated nv the deferred and
tnadeo ,,.te maintenance of other
equipment and OF roadway and struc-
sures.
Even under those conditions and
with this Isrge hill charged IN against
the future-which must soon be pro
vlded for and paid II the curriers' are
to perform successfully. their trans
portation duties,-the result OF opera
tlons for tie first eight months OF this
year. the latest available figures. has
been at q rate OF net railway operat
tng income, before providing for inter.
est or dividends, amounting 10 only
2.6 per cent per annum on the yalua.
tlon OF the csrrier properties made b,
che Interstate Commerce Commission
fn the recent rate case, nm amount no,
sufficient To pay the istersst on thei,
outstanding bonds.
Roads Earnings Far Below Reason
able Returns