The Challis messenger. (Challis, Idaho) 1912-current, 1921-11-30
BALBOA! !: !! !. PLAN Jl
GET RATES llLiH|
P''''; =, to to Reduce Wages and b,
All tia Sam, By a,a,,,;.. ''
in ChlTges
FULL TEXT or The raopp,.||
State m emf by Thom,.
Chairman of thc Asa,c,a,;.s' I'I
Railway Execu.l,.,.."
Situasion

nearly all the leading rai,roas aeas
country, Mr.. Thomas Dewitt r
Chairman of the Isolation ~ ss s's
way Executives, made the ,o, ~ 1sAl
statement: ','"a
At a meeting Of the assoo;o..
railway executives today, it wa, ds,s
mined by the Railroads of tho ,Is .
States, to seek to bring about . ~.
ton in rates, and as a means ~ wv
end to seek a reduction in presen, III
ROAD wages which have comnss.
maintenance Of the present sate,
An application VIII be made INN,
ately to the Un.,tl States railroad .
Dor board for reduction in wa,s.
train service employees suffciens
remove the rcnJ.uuct Of the inoro...
made by the labor boards decisios
July 20, 1920 (Which would inyog.J
further reduction ol approximately III
per cent? and for a reduction in MI
wages Of III! oiitr classes Of rairn.s
labor - the going rate for such lasv
in several territories where the A.
riers operate.
To Reduce Rates AS Wages Go n.u
The foregoing actlon is upon the m.
Outstanding that concurrently Win
such reduction in wages the benefit 4
the reduction thus obtained shall with
the concurrence of the interstate On.
MERGE commission, be passed On to N
public in the reduction of existing Nil
road rates, except in SO far as thisK
duction shall have been made IN IN
meantime.
The arrangements have decided ua
this course Ia view Of their realizada
of the fact that the wheels Of industt
al activity have been closed down VI
point VII. IN brin-s depression and d. /
treSs to the entire public, and tks
something must be done to start tb0
again III operation. The sltGaua
which confronts the railroads is q
tremely critical. The railroads in M
realized q net railway operating inesM |
of about S62,0JO,01O, upon propsV
Investment of over $l9,0eo.0N,00 aA
even this amount OF sixty two million
included back mail pay for prior yeaS |
received from the government o.. ~
proXhia;ely SGLOJ0Yoo, thus showiis |
when the operations III that year alone |
are considered, IN actual deficit beian
making any allowance for either inter |
est or dividends.
The year ended IN serious depresSa|
In all branches OF Industry, ana
marked reduction of the market II
mand for and the prices of base cl1
modities, resulting in very sensa
falling off in the volume OF trallc
Roads Forced To Defer Maintenans
In this situation a policy OF the W.
rigid economy and of postponlne =
cutting to the bone the upkeep OF u1
properties was adopted by the H1
roads. This was ut the price u nV
lecting and for the time, delens
work which must hereafter ana ~.
near future be done and paid for' ~
is Illustrated by the fact that' III
September ID, 1921, over III per vi
or 37i,431 in number, OF the nst
cars of the carriers were in bad uuul
ana needing repairs, rs against . s.s
NAL Of bad order cars OF not liVie
100000, as Is further illustrated w
deferred and Inadequate nain'el.
of other equipment and OF foas
and structures. Even under taVss
ditions, and with this large Dill .nI NM
up against the fut,We,-whica
soon be provided for ana pau .mn1
carriers are to perform sueees. a'.ss
their TRANSPORTATION duties,-ihe s.s.
of operations for the first eisil' 49,.
Of this year, the latest avaiiao'e 10 Cnr
has been at Il rate Of net rall"a: w
Hting income, before pro'iu'ns ~ AMI
terest or dividends, auouiiths yslrs
26 per cent per aanum Oh wv s,ods b
ton of the carrier Pro- erIies , % i
the interstate commerce cohlaiss. NJ
the recent rate ease, al amour, mi,
sufficient to pay the il'leres' W.
outstanding bonds. ~
Roads Earnings Far below
Returns -.
1t is manifest, FROM lnis areM
that the rate of return OF ~ or v.si
cent for the first two years az. s,,on 4 |
/, 1920, fixed in the tranSpor.ann ma
as minimum reasonable re,u,n ~
railroad Investment, has not pe sa. &,
Appropriated. much less reaclls saodg
that the present high rates ....Ss,auiH
are not due to any statutory s.,ah clsr
of earnings, for there is no suN'
antee. 49,, Mn
In analyzing the expenses M .mustion
largely brought about this si's sne III
becomes evident that by lai .ho. ~
est contributing cause is the i"D. I'M
Today the railroads pay oa .ns ddN
Approximately 90 CENTS OH .,ion =
they. receive for transpor'a.us'op "
vices, whereasin. 1916 ~ eeN
dollar went To labor. ,qf
On the first day Of Janua,s: .,te j
when the government TOOK ' att "
wages through the AGanisvaa moi q
labor cost of the railroads i'a zee ONaN
ceeded the sum of about 1arnmesb
annually. In 1920, when ncrssA
authority made the last Way is,e.osds n
the lubor cost Of the rnniV ~ Il ~
about $3,60s, 100000 annually ;a@stsad
tinued throughout the year which y
for the eight months durins me W.
wage iacreases we're in effect ,' I'D W
cost, on an annual bass, - "oO0OO0A
been largely in excess OF so''0 .,aut
An increase, since the sosIn