The daily times., 1921-10-18
DIFFERENCES OVER
WAGE DISPUTES
Owners Declare They
Cannot Cut Freight Rates
Unless Wages Are De-
creased. Unions Object to
Wage Reductions and Piece
Work.

After a lengthy conference between
the railroad executives and represen- ,
tatives of the brotherhood.
The summary ending of the session
came as a climax of day filled with
rumors about crises in regard to rail-
way wage cuts and changed condi-
tions for the men.
The feeling of dissatisfaction
among union workers was increased
by a decision early this forenoon of
the Railroad Labor Board authoriz-
ing the railroads to open negotiations
with the unions for the restoration
of piecework. which had been barred
by Rule l of the shop crafts national
agreement, entered into under the
former railroad administration.
This decision made railroad presi-
dents jubilant. but the union leaders
seemed to be disturbed by the pos
the men. so per cent of whom have
authorized a strike rather than ac-
cept the recent IL II per cent re-
duction in wages.
Staten. mt of the Rail Chiefs
The final judgment of the eXccr
tives was embodied in .he following
statement
AT a meeting of tie association Ct
Railway Executives today. it was de-
termined by the railroads of the
United States to seek to bring about
reduction in rates. and as a means
to that end to seek a reduction in
present railroad wages, which have
compelled maintenance of the present
rates.
"An application will be made i'm
medialy to the United States Railroad
Labor Board for a reduction in wages
of train service employees sufficient to
remove the remainder of the increases
made by the labor boards decision of
July 20, 1920 (Which would involve
a further reduction of approximately
10 per cent?, and for reduction in
the wages of all other classes of rail
road labor to the going rate for such
labor in the several territories where
the carriers operate.
1.-The foregoing action is upon the
understanding that concurrently with
such reduction in wages the benefit
of the reduction thus obtained, shall,
with the concurrence of the Interstate
Commerce Commission, be passed on
to the public in the reduction of ex-
listing railroad rates, except in 20 far
as this rduction shall have been made
in the meantime.
"The arrangements have decided
| upon this course in view of their real
| ization of the fact that the wheels of
| industrial activity have been slowed
| down to point which brings depres-
, sion and distress to the entire public,
and that something must be done to
start them again in operation
''The situation which confronts the
railroads is extremely critical. The
railroads in 1920 realized a net rail-
way operating income of about $62,-
100000, upon property investment
of over $19 9.OO0.OOO,OOO and even this
amount of $62,OOO,OOO included back
mail pay for prior years received from
the government of approximately
$64 100000, thus showing, when the
operations of that year alone are con-
sidered, an actual deficit before max
ing any allowance for either interes,
or dividends.
The year ended in serious depres-
sion in all branches of industry. and
in marked reduction of the market
demand for and the prices of basic
commodities, resulting in very ser
! ious falling off in the volume of traf
fc.
I'm this situation a policy Of the
most rigid economy and of postpon-
ing and cutting to the bone of the nm.
keep of the properties was adopted NV
the railroads. This was at the price
of neglecting and for the time defer
ring work which must hereafter anf
in the near future be done and maid
for. This is illustrated by The fact
that, as of Sept. Is. 1921, over 16
per cent, or 374,431 in number Of the
, freight cars of the carriers were in
bad order and needing repairs. as
against a normal of bad-order car,
of not more than 100000, as is fur
ther illustrated by the deferred ant
inadequate maintenance of othe,
equipment and of roadway and struc
tures
Even under those conditions anf
) with this large bill charged up agains