The Challis messenger. (Challis, Idaho) 1912-current, 1921-12-14
RA|! .2l! |! . PLANIl |
GET RATES lIiI|
Propose 81, to Rstssa Wages A., \
All the Saving By R,tl.d.
in Charges
FULL TEXT or rAE pso,,,.|
Statement by Thon3. ~
Chairman OF the Associate. W.
Railway Exeouliv...
Situation

tober IA, 1921, of the nra assn
nearly all the leading railroads y
country, Mr.. Thomas Dewitt ~!
Chairman of the Associatton
way Executive, made tba tsa
statement: ''n'
AT a meeting of the assocIat.
railway executives today, II va. y.
mined by the railroads Of the n.y.
States, to seek to bring about :, ~
ton in rates, and as n moan,
end to seek a reduction in present !.
road wages which have com,.s
maintenance of the present ra,e,
An application Will be made Inn,
ately to the United States rai,,o.ss
Dor board for ii reduction in vs,..
train service employees suf6cIs,
remove the remainder of tho ;no,..
made by the labor boards daci,l'.
July 20, 1920 (Which would inyGu
further reduction Of approxima,el,.
per cent? and for Il reduction i
wages Of all other classes of min
labor - the going rate for such n
In several territories where the =
riers operate.
To Reduce Rates As Wages Go m
The foregoing actlon is upon h,
derStanding that concurrently =
such reduction in wages the beDem
the reduction thus obtained shall =
the concurrence OF the interstate =
merce commission, be passed on pN
public in the reduction of existing =
road rates, except in SO far as this
ductiOn shall have been made 4 n
meantime.
The arrangements have decided "
this course in view of their reaNutG
Of the fact that the wheels Of indui
al activity have been closed down vi
point which brings depression and q
tress to the entire public, and u
something must be done to start u
again i'll operation. The situatA
which confronts the railroads d
tremely critical. The railroads 10 y
realized Il net railway operating inc
of about So 100000, upon a PROP
Investment of over $l9,000,OWM
even this amount of sixty two nlll
included back mail pay for prior u
received from the Government
proXirlately $6i,OJ0,JU0, thus shoHz
when the operations of that year v
are considered, an actual deficit bdl
making any allowance for either u
est or dividends.
The year ended in serious depr1
In all branches OF industry a.
marked reduction Of the mars9
mand for and the prices of base
modities, resulting in a very sa
falling off in the volume OF tFaN
Roads Forced To Defer Maintenas
In this situation a policy OF the
rigid economy and of postponms
cutting to the bone the upkeep
properties was adopted BY the
roads. This was Mt the price Of y
lecting and for the time, oeiH
work which must hereafter ana
near future be done ana paid i@
is illustrated by tie fact thal
September 10, 1921, over 10 pr
or 374, 431 in number, OF the
cars of the carriers were in oaa Y
and needing repairs, as asainss
NAL of bad order cars OF moi ihVs
100, 900, as is further llluStrateuw
deferred and inadequate nal''
of other equipment and OF paa
and structures. Even under tnos
ditions, and with this large Din snas
up against the fu'lre,-Whi,e,a
soon be provided for ana pun
carriers are to perform success,
their transportation dut.es,-lmu
of operations for Inc first eism
of this wear, the latest avaiiaple =
has been at Il rate Of mel rai"~ -
ating income, before provlolhs
terest or dividends, amouhtlns
2.G per cent per annum on lns .If
tion of the carrier pfoperlies tn i.sa
the interstate commerce coiin auot
the recent rate case, an a'nV,
sufficient to pay the lh'e'e''
outstanding bonds. =,
Roads Earnings Far Belo"
Returns
1t is manifest, from this @ J.
that the rate of return OF "
cent for the first two years al's IAN F
!, 1920. fixed in the :anSpof .a.n
rs a minimum reasonable return a,
railroad Investment, has III. aSal:
Appropriated, much less rea. aarin
that the present high rates a, mari
are not due to any statutory Isnrh n
of earnings, for there Is i'o
antee. ,,,A
largely brought about TINS s M II
becomes evident tAat D! lm ,oM, 4
est contributing cause is liie 80
Today the railroads pay on. ~ d
approximately 60 cents on .,ston
they receive for tranSpo, aat, %
vices, whereas in 1916, ~ ce'~
dollar went to labor.
On the first day of Janua assrs,l
when the government tooA -
wages through the Au",l'SS ad NJ
labor cost of the r:il"oadss nasSOl
ceeded the sum OF about i,.arnus
annually. In 1920, when ~ ~, ma
authority made the last Wis ;sirosds
the labor cost Of the ','' ~
about $3,69S, 100000 ann'ial.H, uste
tinued throughout the yea, WIKI
for the eight months dui is, mel
wage increases were in etie ,.,,,o,,Id
cost, on an annual bass "a ooOa
been largely In excess OF s'''s1
An increase, since the ~ ~