Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-31
PANIC MAY RESULT
FROM BANKRUPT|NG
ROADS, BOARD TOLD
Immediate Abrogation of Ma
tionaI Agreements ESSEN
tiaI, Atterbury Declares.
WILL DELAY WAGE CUT
so DAYS, HE PROMISES
New Increase in Passenger and
Freight Rates Said to Be
Only Alternative.

CHICAGO, January 31.-Bankruptcy
threatens the railroads of the United
States unless they are assured imme-
dfte means for a reduction in operat-
ing expenses, the Railroad Labor
Board was told today by the Asso-
citation of Railways Executives. Gen
W. w. Atterbury, chairman OF the
labor committee of the roads organ
ization, made the prediction.
The railroad executives assured the
federal officials that if there was inn
mediate abrogation of the war time
national agreements, involving work
ing rules and conditions, they would
not seek a reduction of basic wages
for at least three months after the
order becomes effective, saying the
interval would be used to test out the
efficacy of economies which might De
instituted free from the limitations OF
present agreements.
Ultimately. however, it was stated,
there would be need for reduction
in basic wages if the cost of operat-
ing the roads is to be cut to a point
where rates may be'reduced.
As a measure of immediate relief the
roads asked the board to abrogate at
once the agreement fixing the basic
rates of unskilled labor at 80 to 4S1a
cents an hour. They argued that this
was a higher rate than was PAID In
other industries and that 1t operated
to the disadvantage of other employ
. ers particularly farmers.
Rate Boost Is Alternative.
The roads propose that rules and
working conditions in effect Decem-
Der 81, 1917. be re-established.
Many railroads are not now earn
ing. and with present operating costs
Of
ing even their bare operating ex-
penses," said Gen. Atterbury. This
leaves them without any net return
and unable to meet their fixed
charges"
/ He said that the emergency might
be met either by an advance in
freight and passenger rates or re-
duction in operating expenses. adding
unless prompt action affords relief
to the rosais many of the lines of the
country may be forced into insolvency.
The labor board can prevent this
|catastrophe.' MIR. Atterbury said. by
declaring that the national agree.
1uents. rules and working condf tons
coming over from the war period are
Terminated at once; that the question
of reasonable and economical rules
and working conditions shall be re-
manded to negotiation between each
carrier and its own employees: and that
as the basis for such negotiations, the
agreements, rules and working condi-
tions in effect on each railroad as of
December 81. 1917, shall be re-estab-
Ished."
Touching upon the question of wage
reductions in connection with the re-
Quested action by the board, Mr.. At
terbury said:
IF the board will do this. the labor
committee of tie Association Of Rail-
way Executives Will urge upon every
railroad company party to decision
No. ., that no proposal for the reduc-
tion of basic wages shall be made
within the next succeeding ninety days.
This will afford an opportunity to
gauge the economies which can be ac-
complished through more efficient rules
and working conditions. 1t will also
afford additional time in which to real
ize the benefits of a further decline-in
the cost of living"
,- Causes Gross Waste.
THE national agreements. rules and
working conditions forced on the rail-
roads as war measures" the statement
says, cause gross waste and ineffi-
cheney"
Il estimate that the elimina ton of
this waste would reduce railway oper-
ating expenses at least 100000 900 per
annum. 1t would be far better to save
this sum by restoring conditions of ef-
to reduce wages.
We believe that as the wages of
railroad employees were the last to go
up, they should be the last to come
down. but We do insist that for an
ample wage an honest days work shall
be given.
The public has a right to insist
that TINS must be obtained. The pub
lIc has also the right to expect that
/, the railway executives, with the CO.
a n nj h.r yril
The employees. will as rapidly as possi-
bic reduce the cost of railway opera
it"n so as TO eventually insure a re-
duction in rates. Ultimately. a read
Iustment of basic wages will be re-
qulred. Meantime, it is to the inter-
"sts Of all concerned. including labor
that the rules and working conditions
shall be made conducive to the high
est efficiency in output per man
THE railroad committee presenting
evidence for the abrogation of the
national agreements. have far from
exhausted their evidence on this sub
Ject. But II will be dangerous to
continue the consideration of these
agreements rule by rule. If the board
follows its present procedure. months
VIII elapse before it can render its
decision.
Possibility OF Panic.
The urgent financial necessities of
The railroads will not permit them to
wait any such length of time for re-
lief Long before the present detailed
hearings are concluded the board
VIII bc flooded by appeals from in
dividual railroads from all parts Of
the country for reductions in basic
wages 1t will be impossi BILE for the
Hboard 20 hear and dispose of these
s"paTat" cases upon their merits in
time TO .Noid numerous receiverships
and the possibility of d national
panic. Losses of railway net oper-
atinE Income are irreparabIe You
cannot make retroactive tomorrow
the savings that should have been
mad" today.
Your board cannot possibly write
the rules and working conditions of
every railroad in this country and
adjust them equitably to VARYING
geographical, operating and social
conditions
1t rests entirely with your board
TO determine within the next few
DAYS whether this whole situation
shall drift into chaos. and ORDERLY
procedure become impossible except
at the price of railroad bankruptcy.
financial shock, and still wider un-
employment.
The course which we are recon-
mending is not only imperative, but
fuuita hlT "
-aJustire TO Others.
Ferpotuation of the extraordinary
c n n hh Il