Evening journal., 1921-03-10
NATIONS ROADS
TO CUT WAGES;

continued from page one)
road Labor Board for permission to
make the cuts in spite OF the mems
objection.
One effect Of the wage reduction
order. as was pointed out In the
formal statement OF the railroad, is
the probable unemployment OF,
thousands OF men laid off.
The statement issued by the rail-
road said in part:
The directors Of the company
made the following announcement:
In view Of changed economic
conditions II is a manifest obligation
to the public generally and especial
ly TO shippers. passengers. investors,
and stockholders that railroad ex-
penses be reduced.
THE management OF the Pennsyi-
vania Railroad has already made a
reduction OF over 10000 men in its
personnel, seriously curtailing main
tenance Of roadway and equipment,
consolidated divisional organizations
and has stopped all expenditures on
new work.
Even with such economies as
have already been enforced it takes
almost the whole OF current earnings
merely 10 pay current operating ex-
penses.
1T is evident that the require
ments Of the transportation act that
railroads shall be Administered in
an efficient and economical manner
cannot be satisfied without still fur
ther reductions in expenses.
I'm February 20 per cent. OF all
Pennsylvania System operating earn
ings were absorbed by charges for
labor against a normal charge for
labor Of less than so per cent Of
earnings.
"A foundation for the restoration
Of normal business cannot be laid
until there has been a frank recog.
milton OF the real situation and a re.
adjustment Of wages TO meet the al.
tered conditions. The more prompt
/ " an adjustment 10 the inexorabl,
facts is made the more promptll
can those who are now. idle be re
employed and a basis established 10
renewed prosperity.
in making a readjustment Of sal
aries and wages It is but fair an
proper that the burden should b
borne By all officers as we'll as en-
ployes.
1T IS accordingly resolved tina
the executive officers OF the Ponnsyl
vania Railroad Company are direct
ed to give as promptly as possibl
proper notice that It is the intention
Of this company TO reduce the sala
ries and wages Of officers and EN-
ployes to accord with economic con
ditions.
In readjusting salaries and wage
the management shall have due re
gard among other relevant circum
stances to:
/. The scale Of wages paid 10
similar kinds Of work in other indus
tries.
"2. The relation between wage
and the cost Of living.
20. The hazards Of employment
-. The degree OF responsibility
"5. The training and skill re
quired.
&c. Tho character and regularit
OF employment, and
81. Inequalities OF increase 81
wages or OF treatment, the result o
previous wage orders or adjust
ments.
Certain OF which items are var
tables. differing materially as be
tween various localities over so larg
area as that covered by tho Penns
sylvania system.
This differentiation shall be rec
ognized in all readjustments.
such reductions as are made 4
salaries and wages shall bear a
equitable relationship TO the ir
oreases in pay made since Januar
/. 1913.
"rhe equitable differentia.
which should apply between variou
classes Of employees shall be mair
tained or restored,
"Ali procedure in effecting sue
readjustment Of salaries and wag,
shall be taken in an orderly manns
and in strict accord with the tram
; portation act"