The New York herald., 1921-10-18
ROADS WILL insist
ON new WAGE CUT
Application to Be Made at
Once, Declares Head of
Executives.
MANY RATES REDUCED
More Promised, With the
Benefits to Be Passed
On to the Public.
MANY RATES REDUCED
READY FOR EMERGENCIES
Doubt Is Expressed That
Union Leaders Will Allow
Strike When Time Comes.

Confidence that public opinion will
favor the railroads il the nations
steam transportation employees carry
out their threat to strike character
| lied the comments of Eastern rail-
road executives yesterday on the situ-
alton.
Beneath this confidence was strong
| undercurrent of doubt among railroad
ohicials as to whether at the show
down the railroad brotherhood chiefs
will allow the walkout to take place.
Meanwhile, however. the carriers are
preparing to meet the conditions
which would result if the employees
attempt to paralyze all or a. part Of
the couutry's transportation system.
The belief prevails here that the next
logical development in the situation
will come in the form Of a conference
Of the parties to the controversy called
by President Harding.
Much Importance was attached to a
statement authorized by Thomas De
Witt Cuyler. chairman of the Associa-
4 ton of Railway Executives. In the
course of which he said the wage re-
duction of July I already had been
largely passed on to shippers through
voluntary reductions in freight rates.
and reiterated the announced inten-
tion Of the rail executives to apply to
the Railroad Labor Board for fur
ther readjustment of wages to be fol-
lowed by downward horizontal re-
vision of freight rates.
After stating that the proposal Of the
publie's members of the Labor Board
that the threatened strike be averted by
a withdrawal Of the plan to seek con-
current reductions in wages and rates
had not been brought formally before
the attention Of the railway executives
association, Mr.. Cuyler said:
The proposition. as stated in the
newspapers. Is that the railroads should
withdraw their plan to seek concurrent
! reduction in present railroad rates and
wages. The intimation OF the public
members OF the Railroad Labor Board
| Is that the public has had no benefit
from the IL per cent reduction In wages
authorized in July, and 1t is suggested
that the railroads make further reduc-
tions In rates without further reductions
In wages.
I'm order that the public may be able
to judge the merits of this proposition,
the following data are submitted:
"Sinacc the general increase In rates
put into effect under authority Of the
Interstate Commerce Commission Sep
tember /. 1920, there have been. in fact.
extensive reductions. most of them vol
untary. In railroad rates. bringing about
large loss in eernings to tho railroads.
The reduction OF wages made on July
was put into effect only after many
freight reductions had previously been
made
"Sincc the reduction in wages OF July
1 a largo additional number OF reduc-
tions in rates have been mace. For
example, there was reduction on cargo
coal from points in Ohio. Western Penn
sylvania. West Virginia to Lake Erie
ports. affecting from August / TO Oc-
tober some 14.7o0,000 tons. on which
the actual loss In revenue to tho rail-
roads amounted to $4.116.000.
Successive reductions have been made
on grain and grain products beginning
during the summer and continuing until
now. ranging from $40 to $2.10 per ton,
and the export rates from chicago 70
the Atlantic seaboard are actually lower
than when the Interstate Commerce
Commission approved the increases In
August. 1920.
"Reductiops have been made in rates
/ on road making materials. !. c.. crushed
stone. sand. gravel. in New England,
New Jersey, Pennsylvania, West Vir-
ginia. Indiana. Maryland and Delaware.
The rates on these commodities were not
raised in New York State. This involves
| reduced revenues on many millions OF
tons. the benefit Of which goes directly
to the taxpayer
There was n reduction In rates on
export iron and steel articles, cnective
September s. 1921. In 1920 the ton
mage OF this business amounted to 4,101,-
1s9 tons. The reduction In rates on
this traffic averaged s1.se per ton.
Rates on ex-iake ore was being re-
duced. representative reduction
amounting TO 36.5 cents ton. In 1910
s3,9922e2 tons or ore we're shipped by
1 rail from lake ports to Eastern Iron
furnaces.
| some Cuts Lower Than Wage Cut.
"A compilation by the Pennsylvania
Railroad shows that on that system
cast Of Pittsburgh there have been since
| September. 1920. total OF 3,s7l.2sS
rate reductions. These reductions we're
| in part due 20 cxempting certain articles
| from the higher class rates and making
for them lower rate. The exceptions
on these articles apply from i,225 sta
tions on the Pennsylvania and 1,763
stations on lateral lines. making total
number OF points OF origin of 2.9ss.
The number of destination stations TO
which such rates we're effective was
34,5sl.
Through tariffs filed by tho Central
freight Association Agency teV.rory
rates have been reduced or about e62
commodities. covering approximately
1900 origin ponts and 10000 destina-
tons.
ION some railroads the reductions In
rates have amounted TO more than the
reductions IN wages 40 far made and on
many other railroads the reductions In
wages allowed no net return on opera
tions. but merely provided against the
further accumulation OF deficit
"The plan Of the railroads Is 10 pro.
ceed as follows:
II. An application viii bc made irnmc-
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