New-York tribune., 1921-01-20
Rea Explains
Cllrtailn1ent by
Penn. Railroad
Declares There Are $1,000
Idle Freight Cars ON Sid
ings of System and Num-
ber Is Increasing Daily
Hopes for Revival Soon
Between 800 and 900 of
Long Island Roads Work
ers Laid Off Recently

In explanation of the further re-
duction in the operation expenses of
the Pennsylvania Railroad Samuel Rea,
president of the road, said yesterday
that there are $4,000 idle freight cars
on the sidings of the system, or about
20 per cent of the number of freight
cars owned by the company; that the
number of idle cars is increasing daily
and that freight traffic has declined 20
to % per cent, compared with early
fall.
The manner in which this new reduc-
tion will be met is left to the discretion
of the superintendent and department
heads.
Although it has been denied that
the Long Island Railroad is affected
by the order of the Pennsylvania Rail
road, it became known yesterday that
within the last sixty days between
800 and 900 Long Island Railroad en-
ployees have been laid off and that
further reduction in the working force
may be expected.
Officials of the Long Island said yes-
terday that the 10 per cent cut in the
number of employees resulted from the
order of the Interstate Commerce Com
mission, which recently granted inter-
state lines an increase in fares. and
that the Long Island, being intrastate,
/ was not permitted to raise its passen-
ger tariff. While it was said that no
passenger trains have been taken off, it
was admitted that, should further lay
offs be found necessary, there is a like
lihood of some reduction in passenger
service
President Rea's Statement
President Rea said:
by reason of the continued falling
off in business, the management of the
pennsylvania Railroad has instructed
all departments to effect further re-
duction in expenses of 10 per cent, as
compared with the expenses in No
vember, 1920. This is in addition to
the 10 per cent reduction previously
decided to be necessary.
"There is no arbitrary rule adopted.
The principle on which the reduction
will be made is to secure the utmost
economy consistent with safety and
efficiency. The vice-presidents, how
ever, have been directed that in carry
ing out these instructions they should
do SO in the manner best adapted to
avoid, so far as possible, unnecessary
disruption of the organizationj or indi-
vidual hardships.
at is to be hoped that the reduction
in business will continue for only g
brief period. The management of the
Pennsylvania Railroad sincerely re-
grets that uninterrupted employment
cannot be assured to every faithful man
on its pay roll. But the situation is a
practical one and no way has as yet
been devised in such circumstances as
those now existing to avoid a reduc-
tion in expenses and working forces.
Idle Cars Increase Daily
"As indicative of the severity of con-
ditions confronting the management it
may be pointed out that the Pennsyl-
vania Railroad system now has on its
lines $4,000 idle freight cars, which is
about 20 per cent of the number owned,
and that the idle cars are increasing
daily. Freight traffic has declined 20
to % per cent, as compared with the
early fall, and all available information
as to the. prevailing conditions in the
productive industries and general COM
merce indicate that further slowing
down in the freight movement must be
anticipated before recovery can be
reasonably expected.
"Regrettably there is, therefore. no
course open to the management except
to curtail expenses accordingly"