The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-10-31
NIUCH sTILn UNsETTLEp.

MUCH STILL UNSETTLED.
Following the putting into effect of
the reduction in freight rates ordered
by the interstate commerce commits
sion the railroads probably will insist
on a further cut in wages. Whether
the railroad labor beard can manage
them as we'll as it did the brother
hoods remains to be seen. If it can
there probably Will be no further re-
duetion in wages for several months.
When the railroads went back to
private operation, they asked relief
from the burdensome wage costs.
After close study of the situation, the
executives placed their minimum re-
quest at 16 per cent. The railroad
labor board made an award of IL per
cent. This reduction has not kept
pace with the lowered cost of living,
and even with this downward revision
railway employees are, in effect, so far
as the purchasing power of their serv-
ice is concerned, receiving higher
wages than they obtained when their
pay envelopes were the latest.
The railroad facilities of the coun-
try for the future should be consid-
cred. There is a constant clamor for
rate reduction. Freight and passen-
ger tariffs are too high, when oensid-
cred in relation to former schedules
and are seriously handieapping bust
ness. Nevertheless if the carriers can
not earn enough to provide ami i'm
prove their equipment and provide for
maintenance and expansion, the ship
pers and the travelling public will be
the chief sufferers.
Under the terms of the transpcrta-
ton act, the earnings of the railways
were limited to to per cent on a
conservative valuation for property
account. The railroads are constant
ly needing money. They must obtain
This from the savings of the people.
Capital cannot be obtained today even
by the government Of the United
States for less than the figure set by
law for railroad earnings.
The outcome of the strike does not.
settle merely the question of a wage
dispute between the railroads and
their employees. 1t involves also tho
question of lower railroad rates and
the best means of obtaining them. If
the railroads are to suffer for the re-
duction in rates without compensatory
concessions on the part of the en-
ployes, the country will pay the PEN
atty in the form of inadequate trans
pcrtation. So far as the relative re-
turns to the railroads and their am-
ployes are concerned, the railroads are
not making large profits. Railroad
workers are receiving higher pay
than is current in comparative indus
tries.
Most of the railroads made a good
showing as to net earnings during
August. The figures show that the
exhibit was made at the cost of the
most drastic economies, skimping of
equipment and curtailrnent of expen-
ditures ordinarily considered essential
for equipment and general up-keep.
According to reports filed with the
interstate commerce commission, the
railroads in August expended about
s1S2,0oo,000 for maintenance pur-
poses which was a reduction of $751;
900, 600, or 54.S per cent, compared
with the expenditures for that purpose
in August, 1920. AS a result of this
parsimony, which represents failure to
make expenditures which absolutely
must be made later, the railroads were
able in August this year to show a
net operating income of $90,2OO,0O0
In other words, their entire net show
ing was due to the neglect of needed
expenditures and amounted to only
three-fifths of this so-called saving
The compilations were based on the
reports of POI roads having a total
mileage of 235,171. The total oper-
ating revenues for the railroads of the
country in August amounted to $685.
100000 which was SO per cent less
than during the same month last year.
Operating expenses were 1891, 93S,oOO,
or a decrease of 4S.9 per cent COM
pared with the same menth last year
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