Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-15
Cannot Reduce Freight Rates
at Present Without Going
Into Bankruptcy, Is Claim
of Executives.
"THE ROADS MUST BE
CRAZY" LEE DECLARES
Transportation System Is
Facing One Of Its Greatest
Crises, Is Declaration of
One official.
my The Associated Press. J


Chicago, Oct. | 4 (by the Asso-
ciated Press. )-Representatives Of
the nations railroads today an
nounced that they cannot reduce
freight rates at present without GO
ing into bankruptcy, and that they
would Immediately seek a further
reduction in employees wages from
the United States railroad labor
board. Later futile conference
was held with union leaders in an
effort to reach an amicable settle
ment of wage difficulties which at
times have threatened to tie up The
transportation system of the coun-
try.
The conference was held at the
suggestion of the union leaders,
their invitation for meeting being
accepted by the railroad heads fol-
lowing the announcement concern
ing freight rates.
The union leaders asked recon-
sideration of their request of last
July that t21a per cent wage re-
duction granted by the labor board
not be put into effect Immediately,
but no further wage reductions De
sought at present and that no
change be made in the overtime
pay rate. This request was re-
fused by regional conferences OF
the roads at that time.
TO Seek New Reductions.
In reply to tonight's proposal
that the request be reconsidered.
the rail heads simply presented
their statement announcing the
proposal to seek new reductions
and not to reduce rates until fur
ther reductions were granted.
The labor leaders left the con-
ference Immediately and few of
them would discuss it's proceedings
or predict the results.
II am no prophet" said Warren
S. Stone, president of the Brother
hood of Locomotive Engineers.
what will happen is more than
can say"
w. G. Lee, president OF the
Brotherho of Railway Trainmen,
refused to discuss the situation
after the meeting, nut previous 10
II had said that 1.-THE roads must
be crazy TO seek a new reduction
when the men have just author
tzed a strike over an old wage cut
Roads Facing n Crisis.
L. S. Binkerd, of the Association
of Railway executives, said that
the transportation system was fac
ing one OF It's greatest crises, but
also refused to make predictions
Union leaders freely admitted,
however, that there had been little
harmony between the committees
in the conference.
The labor committee was COM
posed of Mr.. Lee. Warren $. Stone,
president of the brotherhood OF
Engineers; l.. e. Shep-
pard, president of the Order OF
Railway Conductors; w. S. Carter
president of the Brotherhood of
Firemen and Engineers,
and p. C. Cashen, president of the
Switchmen's Union of North Amer
lea.
The decision OF the executives
followed consideration of numer-
Gus plans and proposals regarding
wages and rates One proposal
WAS 1OI All t~NASNAohf -
freight rates on agricultural COM
modities, the reduction to be ef-
fective for sixty days or ninety
days, as test. This plan met with
opposition most of the ROADS
they could not exist
with lower rates.
Financial Condition.
The announcement was emoodied
in a statement of some 1,50o words
reviewing the financial conditions
Of the roads,
1t followed an announcement
from the labor board that the piece
rate system OF pay had been re-
stored.
Union chiefs expressed them
selves as dubious as to how their
men, eighty per cent of whom have
a strike rather than ae-
,ept the recent 12ia per cent wage
would take the various
of the day.
The roads. in making their an
CONTINUED on Page Two.)