Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1921-01-23
Wages Railway Men
Must Be Reduced !


In the very near future. samuel q.
Dunn, editor OF the Railway Age. toil
the New York Railroad club in an al.
dreas here tonight
Experience since the recent advance
In rates were made have dmnnr'ratrd.
Mr.. Dunn commended. that even VITA
maximum traffic the railways can.
not earn . per cent on the valuation
fixed BY the Interstate Commerce Com.
mission with the present p.o-aangcr aud
freight rates and the present wuglt
They arc not nov handling maxi.
mum business Their freight traffic
has declined 30 per cent since October
aud on January they had q net sur.
plus Il 257. 900 ears
The demonstrated inability q n.
railways O. earn the return oXpcc,r I
even when handling a maximum tra'
Nc" Mr.. Dunn said. "and the fremont
Gus decline u traffic arr creating a
scrieus situation O. which not only
railway managers. but the railroad IL.
Dor Board. the Interstate Commerce
Commission and Congress must give
early attention.
In September the railways c1rrrl
only o. per cent 81 the expected not
return; In October only - per cent. m
November only 81 per cent. Tn tota:
net operating income they should ha,s
earned for those three months 10 nav.
contributed their share toward q
per cent annual return was s3stf-.
zoe. while the amount actually elrnss.
was only t2is. 500 000. Al this ran,
they would earn only pr cent. and
these were months q large husincf-
The Interstate Commerce Commlss!, n
has recognized the principle IN n.
railways must earn per cent o. "a.
able them 10 expand their faciiiics sut.
nciently 60 give the pubic adcquale
service.
The puhlic would strongly opposp
q further advance In rates under mr..
Ont eonditions when prices n most com.
noditles and especially n farm pr5t
uets. are declining. The only alterna.
tive IL TO reduce operating expenses
The prcsrnt very high operating *.
penses are chiefly due O. the enormous
pay roll This normous pay RON /.
Que 70 the granting ~ the eight hour
day under government control. which
has caused a large incrcas. in the mum.
ber OF employees. and o. the large ma
vance, In wages made by the Rallroal
Administration and by the Railroad
Labor Beard last July.
The operating expenses 81 the rail.
ways are now running az the rate g..
about 1855. zoe ooo year. ar over
ss,i0o,eoe a year more than IN 1917. On
this Increase la expenses almost g O0l.
100000 o. about two.third-. j. due :,
increases In the pay roll, while mos; a
the remainder l. due 10 Increases m
The costs q materials and suppli.s.
NO inJuSiice would b. done % rail-.
way employees by reducing thelr wng,..
~ this time. The advance Of ssso. 900.
900 year given them last July nv the
ttaiiroad Labor Beard IVES granted
Nnen the cost q living was the hirhe :
ever known. being ioi. SO per cent more
shan In 1914 Since then the cost ~
living has declined and j. estimated
by the National Industrial Corferenc-
beard TO be nov only 20 per cent more
than In 1914.
The present average annual wage
OF railway employees Tor working
eight hours a day Is i.5 per cen, erea.. |
81 than II was In 1914 fer working ten |
hours day. Uader the National |
Agreements made By the governments
isaiiroad Administration with various |
organizations u hallway amployees.
many millions Of do4lars are being pai1 |
annually for work that Is not done. ~ |
1914 the railways had loo. 900 en-.
nloyees and paid sthem 81 81 .010. 0e,. |
In 1917 they had about the same mum.
Der Of employees AMI paid them 81.
100000. Today, because u the "a. |
adjustment Of the eight hour dav an: 1
tne advances IN wages which hav, |
been granted. they have about $50 900 !
employees who are being paid 81 .e0O
goo year. While the lncrcase IN the
average annual wage since 1914 has
bccn abou; iss per cent. the increas,
N the total pay roll has been ahoIt
ITO per cent.
There is much complaint from n,ars I,
sources regarding present freight and
passenger rates. The necessity FOR tbs
present rates h created chiefly hy pref
INT railway wages The farmer. ship.
per and consumer are q deeply A..
terested In the question q railruai
nosts. because the cost IL what make,
ne rates which all the public have :,
pay directly or indirectly; and the raj.
way pay roll al present constitutes %
per cent OF all operating expenses.
All the present railway costs shout
- reduced. but the pay roll j. 81 larg,
part Of the total expenses that no
'oostantal relief 10 the railways. which
ire MT earning an adequate net return.
n The public. which has TO pa.
present freight and passenger rates.
an be obtained without substantial
'educiion In wages.
Farmers and business men r..
entity have lost many hundreds of mil.
hons Of dollars because q declines IN
prices. Wages already have been re-.
iuced In many industries. The Pa.
foad Labor Beard. In granting the al.
vance In wages last July. based il
argely upon the high cost u living
ia view q Developments since the,
rehcaring Of the wage cas- should
b held and Wages fixed which are
more In harmony with existing oond.
lions"
--