The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-04-25
BEGIN WAGE MEET
tContinued from Page One,

Continued from Page One.
in wages. 1t Is an unpleasant task to ask
services. but it is an economic necessity
that such be accomplished and we are hop
ing that it may be brought about with the
minimum of friction and that you Will. as
n result of what we tell you here today in
the most friendly spirit, acguiesce in Il
decrease which Will be just and reasonable
Your interests are ours. They are so close
ly allied that both can continue to prosper
only thru mutual cooperation and this
thought is uppermost in our minds in APP
preaching consideration of this question
and We hope and believe 1t will strife re
sponsive chord in yours.
Readjustment Must Come.
Reimbursement must follow in the wake
of every war. and that which We recently
have been thru. history tells us. was the
most disastrous ever known to the world.
Millions of men ,,s engaged in the peaceful
armies whose whole aim WAS not to con-
tribute to the worlds wealth, but to de-
stroy. and they had to be supported and
furnished with munitions. Labor and ma
terials thus became scarce. prices advanced
and wages went up by leaps and bounds.
Railroad men were fully entitled to in
creased wages to meet the rising prices of
living and the higher wages paid in COM
parable industries.
1.-The period of reimbursement has now
come and as the cost of living has been on
the downward scale for some months it is
obvious that We have entered upon the
periOd of declining prices, which is
Elected by the fact that wages of men in
industries other than the railroads have
been and are going down. Decision No. .
of the United States railroad labor board.
issued July 20. 1920. which established
scale of rates retroactive TO May l. was
considering the high cost of living. These
nigh costs have receded and it is neees-
sity. if this railroad is to continue to OPP
crate. that there shall be downward trend
in wages paid. The increases in rates
granted by the Interstate commerce com
mission which 1T was hoped would effect
ways, have not borne their expected fruit.
Industrial activity has been slowed up. men
have been thrown ,out of employment. and
the volume of freight has decreased to an
alarming extent.
Decrease i'm Freight Business.
zone of the best ready indications Of the
business of a railway is the average num-
Der of freight cars loaded daily. In the
last four months there has been a large
decrease in the number of cars loaded on
the Santa Fe and received from connecting
lines. In the eight months ended Noyein-
Der 80 1920. the average number Of-lOaded
ears offered for movement was Abs per
day. and In the next four months ended
with March 81, 1921 the average was 3.4G0
per day, decrease of approximately III
per cent. In the months OF January. Feb
ruary and March 1921 the number of loaded
ears Offered for movement was an average
of 3431 per day against an average of
Ass per day in the same months of 1920.
decrease Of Is per cent You are IA
stored on tie line. On April II the number
of empty ears on the Santa Fe was 310T5.
which means that Approximately AZ per
cent of the freight cars owned by this rail-
way which ought to he earning revenue
are tied up. and earning nothing.
1T would seem needless to give nssur-
ance that If it were possible for the Santa
Fe to continue to pay the increased salaries
granted during and subsequent to the war
and stjA maintain the proper ratio between
income and expenditure weGwould not be
talking with You today. The truth is that
we cannot operate and continue to nay
the high scale of wages established during
and after the war.
Payroll Increases 11s Per Cent
"From 1917 to 1920 the payroll Of the
Santa Fe System increased rearly 116 per
cent. the average yearly wages of employees
increasing approximately 6s per cent in
that period.
cents out of every dollar that the railroa d
receives from operation is paid out in
wages: the remaining 40 cents is not suf-
ficient TO buy fuel and other materials and
supplies ana pay our taxes and other obli-
"Comnaring September. 1920, with Feb
ruary. 1921, operating revenues show n de-
crease of approximately S5,45o,6o0, or
about % per cent,
"On the basis of our annual financial re,
duiregents to take care OF taxes. fixed
charges ana other obligations. this rail-
road ought to have net earnings of approx
@a ss S aoo per year or an &c
months ended February 2s. 1874, was s11,-
that period amounted to only $4,11s.000.
which is scarcely enough to pay for a three
months proportion of taxes and rentals.
leaving nothing for fixed charges and other
obligations of the company.
Expenses Exceed Revenues.
| cooperating expenses taxes aud rentals
| in the month of February, 1921, exceeded
| the operating revenues by $29s.s SIP, and for
| the months Of January and February the
| operating expenses, taxes and rentals eS-
| ceeded the operating revenues by 1884, 00i.
| Thus IL cost the Santa Fe more than one
| dollar in expenses to earn a dollar IN rev.
| enue in those two months without con-
sidering Its fixed charges aud other obliga-
lions.
From September to February the op-
Grating ratio 1.-THE relation of operating ex-
! penses to operating BevenuesD increased
| from So IS per cent To 94-39 per cent. Un-
| der such abnormal conditions Il is impos-
sible to set aside sufficient funds to pro-
ride the public with adequate service aud
pay our obligations.
Less Of $1,000, 600 in February-
"without taking dividends into eensld-
| GRAFTON at all, the Santa Fe System was
| operated in February at a loss OF more
/ than 81 10000 Not dollar was earned
/ for interest on bonds or for surplus TO
| carry on business or to sustain the com
pany's financial standing. In the two pre-
owing to the marked decline in business
/ and the abnormal wages a somewhat SINH
| lar situafion prevailed. In December the
, net operating Income amounted TO only
s., 1e4 335, which was barely Sufficient &c