The St. Johns herald., 1921-10-27
RAILROADS PLAN ID
 GET RATES DOWN
Propose to Reduce Wages and Return All Savings by Re
 duction in Charges.
FULL. TEXT OF THE PROPOSAL
Statement By Thomas Dewitt Cuyler, Chairman of the Association of Railway Executives, on the
 Situation.

Following a meeting in Chicago, Oc- tOber IA 1921, of the presidents of nearly all the leading railroads in the country, Mir. Thomas Dewitt Cuyler, chairman of the Association of Rail- way Executives, made the following statement:
 At a meeting of the Association of Railway Executives today, it was de- termined by the railroads of the United States to seek to bring about a reduction in wages, 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 im- mediately to the United States Rail- road Labor Board for a reduction in wages of train service employees Suf- ficient to remove the remainder of the increase made by the Labor Boards decision of July 20, 1920 (which would involve a further reduc- tion of approximately 10 per cent), and for a reduction in the wages of all other classes of railroad labor to the going rate for such labor in several territories where the carriers operate To Reduce Rates as Wages Go Down.
 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 Com merce Commission, be passed on to the public in the reduction of existing railroad rates, except insofar as this reduction shall have been made in the meantime
 The homogeneous have decided upon this course in view of their re- alization of the fact that the wheels of industrial activity have been closed down to a 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 railway Operat- ing income of about $62,0O0,O00 upon a property investment of over $19,- O00,OOO0O0 and even this amount of sixty-two million included back mail pay for prior years received from the government of approximately $64 ,OOO,- 900, thus showing, when the operations of that year alone are considered, an actual deficit before making any al- lowance for either interest or divi- dendS.
 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 se- rious falling off in the volume of traffic.
 Roads Forced to Defer Maintenance.
 In this situation, 8 policy of the most rigid economy and of postpon- ing and cutting to the bone the up- keep of the properties was adopted by the railroads. This was at the price of neglecting and, for the time, deferring work which must hereafter and in the near future be done and paid for. This is illustrated by the fact that, as of Sept. Is, 1921, over Is per cent, or 374,43 in number, of the freight cars of the carriers were in bad order and needing re- pairs, as against a normal of bad order cars of not more than 16O, ,0O0, as is further illustrated by the. de- ferred and inadequate maintenance of other equipment and of roadway and structures.
 Even under those conditions, and with this large bill charged up