The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1921-10-20
RAILROADS PLAN TO cur eArss

tAonihhri from F&se ~
serious falllng OF in the volume y
traffic
ads sorcso 10 Deter Mslrtsesrss
n The situation. a policy ~ ne
nosf flsld rconnnl, end ~ posironlnv
md euiung % the bone lhe upkrep
u ihr properties VS. a1epiod BY he
aallroaas This Wa s. tae price ~
aseiseffns and fof lhe .lfue d. efflng
work which must herssscf and N
he nsaf future BE- done snd reid iof
Thh s Illustrated b, the fscl hat.
a. Of sep,rmlcr is fasl. oeer rs pes
asnt o. sitasi Ia namnfr - ihe
reiahi care ns ne cafflrfs were n
aad order and needing rrrHirs a.
seAlnk, normal ~ bad olacr cars ~
aoi more thsn 100 900 ~ ii fuiher
Illustrated ~ me deferred and made
.iate maintenance u other equir
nsui and al roadway an1 structures
Fsen under those conditions and
slin this large bill ehAFre np arainss
he future which must soon he pro
,ded for and paid Il The carriers arc
q perform surrsssfullA their trims
,oftaiion duties he resdll o. opera
tons fof ihe nfsi elghi months Of
his wear ihe latest available hsmes
aaK been az rate q net railway
,pefaiine income. before providing
- intefeft or dividends amouniln9
@ oni, 2 g.. per annum on the 'alua
lon II Inc carrier pfopertst made by
he Interstate commerce comniission
n he recent rate case. an amount not
miflelent to pas the interest ON their
outstanding bonds
aoada Earnings Gar Below Reasonable
Returns
II IL manifest from this showing
'hsi ne rate of return Of 5's or sit
.ef cent for she nitt Two years alter
March / 1880 nred IN the itanaporla
ION act 49, minimum reasonable fe
ain upon railroad Investment has
io' been even appfosimaicd much
-. reached. aud that the present
lish rates accordingly are NOS due 10
an, statutory guarantee Of tarnings.
or there is no such guarantee
In analyalng the expense which
iste laresls brought shout this niluA
ion. Il becomes evident that bs far
Ne largest contributing cause is ibe
ahof coat
roda, the railroads pay out 20 lsb
,r approximately 60 cents on Tho dol
ar they receive for transportation
tefvioer whereas IN 1915 ~ cents ~
/ he dollar went 90 labor
on the nti dai of January 1917
rhen the government took rharFe %
saKes through ne Adamson act. The
abof cost ~ the railroads had not et
sesded the sum OF about : ihN 600 nos
annually In 1920. when government
al authority made the last wAge ln
crease. he labor cost oi the railroad
was about q sos oo0. 600 annually o.
u continued throughout the year ~
stead ~ for the eight months dUfin
which the wage increases we're IN sl
feet. the labor cost on an snnua
basis. would have been largely an IN
crease. since the government too
charge OF railroad wages in IN
Adamson act Of approximately s2t5o
600 600 annually
IN tho light OF these ngnres y
manifest that the recent reduction r
wages authorized BY the labor board
estimated Al from 10 20 II percent I
no sense meets or solves the probler
OF labor costs and IN no way make
il possible Tor the railroads 20 aror
a reduction IN their revenues
Thousands OF Rates Already Reduces
indeed. during the pasf year thsr
have been between four ami ~
thousand individual reductions 4
freight rates on some railroads IN
I reductions IN rates have amounted Z
/ more than the reductions IN wage
80 Tar made. and on many other raj
roads the reduction in wsg~s allow
cd no net return on operations. hu
merely provided against the furthe
accumulation OF a denclt
The point IL often made that arr
culiiek and other industries are ale
suffering he same immediate ain
cuities a. The railroads Why. theirs
fore. do not the railroads take ihei
medicine like anybody elssf The AZ
sver lies IN several facts
! The railroads were not permi'