Richmond daily register. (Richmond, Madison County, Ky.) 1917-1978, 1921-12-15
RAILROAD PLAN To
GET RATES DOWN
Propose TO Reduce Wages and
Return all Savings by Re
duction in Charges
stasenens ~ Tbou7s Osr'ts cuyler'
cbasrrraa % tss Associstfon %
Railway Executives or sc
Situation.

PetI,vvlnu a meeting in chicago. o.
tot~r tt. 1871. - the presidents -
ra.~fv ali the lending rniirsfd- b. the
r,untrv. Mr.. Thomas lie Witt Cuyier.
chafru1an Il the Association - Rail
way Executives. made TIE following
statement
At a meeting 90 the Association -
Railway Execfuir.s today. u was d''ier-
mined By the railroads % the Jnis~d
States. sees 10 brfnz aDour a reduction
r. rafes ard s. q means g. fhuf nd
10 seek a reduction IN present raiirgsid
wages which have compelled nlainteii-
anc- OF TIE present rites.
An application will be mad~ ifnrf--
dfateIv 70 the United STATES Railroad
Labor Board Tor redurfinn 10 waEr~
a. .rafn service employee sufficient
20 remove the remainder % the in
creasez made b. the Labor Board
d.cfstou 81 ItIiy 20. 1890 (which woaid
involve. q further rr .lr-finu 90 apTfre1i
rualrly ten per cent?. ani for q rerluf-
lion in fhe wage ~ aH other fIf~se~
a. railroad iafsur TO- TIE -niuz rate
for ~u-h Iaisor in several ierrir ort'e
,vher- tlrs s.irriess or-r-afe.
To Reduce Bates as Wages CO Gown
The Foregoing afi SORTS b. rfflau ffr rl.
o.
srrh rrdurrfou in wage Tire heueHt
Of the reduction thus ohfafued shall
with the concurrence 81 the iure~-
state commerce f'nrIrr is-.ff. fs~
passed on - the public iu tae 20
durfiou % existing railroad rafea-
except IN 50 far - this ~cducf ION
shall Rave hccu made In rhe Moan
Eu.c
The management have fi~risied up
o. this raursc IN view ~ their real
zatiou O. ffic fact thar iife uhrri- -
industrial arTisity have is~en closed
down 20 a point whirii brings ceples-
SION and distress o. The entire ruis
ard that something must ~ dons u
stast them a-ain IN operation
The situation which % frOnLs TIE
railroads - extremely critical The
railroads IT, 19.O realized q nec rail
way operating income % about fsz--
OrfOOO upon a property investment -
over STo.pDOOO.nslo and even this
amount az 80 million incIBded back
mail pay for prior years received freFn
the Government % approximately
s68.OO0.OOo. thus showing. when ths
operations Of that year alone are ron
sidered, an actual deficit before mix
ing any allowance for either Interest
OF dividends.
The year ended IN serious depres-
sion in all branches OF industry and
IN marked reduction OF the market de-
mand for and the prices Of basic CON-
mOditIcs. resulting IN n very serious
falling or In the volume Of traffic
Roads Forced 70 Defer Maintenance
In tllis situation. a policy 81 the
most rigid economy and Of postponing
and cutting 20 rhe bone the upkeep
Of Tho rx-nz -dorssaF he ~h.
railroads This was at-the price %
neslectfng and for the time deferrinz
work which must hereafter and NJ the
near future be done and paid for
This is illustrated by the fact that
as OF September Il, 1921. over 16 per
cent. or 374, 43I in number. Of the
freight cars OF the carriers were in
bad order sid needing repairs, as
against a normal OF bad order cars
OF not more than 10000 as i fur
Their illustrated by the deferred and
Inadequate maintenance Of other
equipment and Of roadway and struc-
lures
Even under those conditions and
with this larye bill charged I'D against
the future-which must soon be pro-
vided for and paid II the carriers are
! ~ perform successfully. their trans
Io-tafion duties.-fhe result - opera
ti0us for the first eight months os this
year. he latest available figures. has
be-.H at rate Of net railway orcrat-
! in= income befor, providing for inter
ct or dividends. amounting 70 only
20 per cent per annum on the vaiua-
| ti"n or the carrier properties made by
| the Interstate Commerce Commission
, IN the recent rate ease, an amount not
sufficient to pay the Interest on their
. GU: standing bonds
Roads Earnings Far Below Reason
able Returns
Ut IS manifest. from this showing.
/ that the rate Of return Of 81 oT =
( Ter cent for the first two wears after
March I. 1870. fixed in the Tra1Sr-er-
I fation Act a. a minimum reasonable
return upon railroad investment. has
not been even arproximared-
much less reached. and that the pre-
sent high rates accordingly are Dos
due IN any statutory guarantee Of
earnings. for there Is no such -uar-
antce.
have largely brought about this stu
alton. " becomes evident that by far
the largest contributing cause il the
labor cost
Today the railroads pay out "a
labor approximately 50 cents on fh<
dollar they receive for transportation
services, whereas in 1916 10 cents on
the dollar went tn labor
On the first day Of January. 1917
when the Government took charge OF
wages through the Adamson Act. the
labor cost OF the railroads had np1
exceeded the sum of about 81 ,4ess. Oo0,
600 annually In 1920. when govern.
mental authority made the last wax<
increase the labor cost OF the ran.
roads was about $3.69S. 100000 an