New-York tribune., 1921-03-10
All Officers and Employees
Included in Plan Laid
to Necessity of Bringing
About a Readjustment
Up to Rail Board
If Men Refuse
Notice Says 10000 Have
Been Laid Off and Hints
at Rehiring Thousands
Special Dispatch to The Tribune


day pay cut affecting every officer
and employee. There are approx
lnately 215,000 employees of the road.
The amount of the cut was not dis
closed.
All pay will be reduced, but in vary
ing ratios, based on such considera-
tlons as pay in other lines for similar
work, skill and hazard Of occupation.
and the ratio Of wages paid to the cost
of living in the locality.
When the wage cut plans have been
worked out in detail, which is to be as
quickly as possible, they will be sub
mitted to the employees for approval.
In the event of disapproval the COM
pany Will appeal to the Railroad Labor
Board for permission to make the cuts
in spite of the mems objection.
One effect of the wage reduction
order, as was pointed out in the formal
statement of the railroad, is the nrob-
able unemployment of thousands Of
men laid off.
The statement issued by the railroad
said in part:
"ln view of changed economic corr
dltlons, it is manifest Obligation to
the public generally and especially to
Shippers, passengers, investors and
stockholders that railroad EXPENSES he
reduced
The management of the Pennsyl
vania Railroad has already made re.
ductlon of over 10000 men in it's per
sonnet, seriously curtailng mainten-
ance OF roadway and equipment, con-
ssolldated divisional organizations and
has stopped all expenditures on new
work.
Even with such economies as have
already been enforced, it takes almost
the whole of current earnings merely
TO pay current operating expenses. 1t
is evident that the requirements of the
transportation act that railroads shall
nomlcal manner cannot be satisfied
without still further reductions in ex-
penses.
70 Per Cent to Labor
"ln February, 70 per cent of all
Pennsylvania system operating earn
ings were absorbed by charges for
labor of less than SO per cent Of earn
ings.
"a foundation for the restoration of
normal business cannot be laid until
there has been a frank recognition of
the real situation and a readjustment
Of wages to meet the altered condi-
tons. The more promptly an adjust
ment to the inexorable facts is made,
the more promptly can those who are
now idle be reemployed and a basis
established for renewed prosperity.
In making g readjustment Of salaries
and wages it is but fair and proper
that the burden should be borne by all
officers as we'll as employees. 1t is ac-
cordirgly resolved that the executive
officers Of the Pennsylvania Railroad
Company are directed to give, as
promptly as possible, proper notice
that it is the intention of this COM
pany to reduce the salaries and wages
of officers and employees to accord
with economic conditions.
"Such reductions as are made in sal
aries and wages shall bear an equitable
relationship to the increases in pay
made since January l, 1918. The
equitable differentials which should
apply between various classes of en-
ployees shall be maintained or re-
stored.
"All procedure in effecting such
readj astment Of salaries and wages
shall be taken in an orderly manner,
and in strict accord with the trans
portat'on act
To Put 1t Before Employees
r. De Witt Cuyler one of the di-
rectors of the Pennsylvania and head
of the Railroad Executives Association,
was asked how the order would accord
with the recent decision of the Labor
Board that the Erie Railroad must re-
store it's rates which it had tried to
cut.
"The situation with us is simply
this" he replied. 1--WE are proceeding
in an orderly manner in strict accord
with the transportation act, and this
cut affects all classes of employees,
from the highest to the lowest.
eve will first call meetings of our
employees and put the matter squarely
up to them, and if they agree the mat
ter is beyond the jurisdiction of the
Railroad Labor Board"
asked, Chat if they agree the road
will be able to take back the 10000
men laid off ?"
at certainly will mean that with a
return to normal conditions we will
take back as many men as the business
will allow"
What do you think the cut will be
in percentage of wages?"
at is absolutely impossible to saw
because it has not been worked out
yet, and the amounts will vary"
The acting general chairman of the
Order of Railway Conductors, affiliated
with the four big railway brotherh oods.
said he did not expect any cut in wages
of men in the train service.
At the Office Of H. S. Jeffery, head
of the shop workers of the Pennsyl-
vania Railroad, it was stated that it
would be impossible for the railroad
to reduce the wages of workers in the
six shop crafts, as their wages have
been fixed by national agreement and
are under the sole jurisdiction of the
Railway Labor Board. The shopmen
are not members , of the Railway
Brotherhood, but are affiliated with
the Americai Federation Of Labor.
c. f. Musser. general chairman of tho
Brotherhood Of Railway Trainmen. said
his organization had not yet been mott
fed of the cut.
"All can say about it for the pres
ent," said Mr.. Musser, "is that the
Pennsylvania apparently is following
the procedure which. was suggested by
the Railroad Labor Board recently in
tho Erie case"