The Birmingham age-herald., 1921-10-15
CLAIM RATE CUT
 BANKRUPT NATION
 RAILROAD SYSTEM
Labor Board to Be Asked to Make Slice of Ten Per Cent Off Railroad
 ers' Pay
By Associated Press

By Associated Press
 Chicago, October 14--Immediate re- duction of freight rates on agricul- from 60 to 90 days, pending further wage reductions, was one of the pro- posals presented to high railroad of ficers at the conference of the Asso- citation of Railway Executives today
 The sentiment at the meeting, 1t was said, was that to reduce freight rates now without awaiting further reduction in wages would throw the roads into bankruptcy.
 No date was announced for the conference, but it Is expected to take place tonight or tomorrow.
 The decision of the executives, reached in meeting of the Asso- citation of Railway Executives, fol- lowed consideration of numerous plans and proposals regarding wages and rates One proposal was Tor an immediate reduction in freight rates op agricultural implements, the re- duction to be effective for 60 days or 90 days as q test. The plan met
 
 the roads, most of them maintain ing that they could not exist with lower rates.
 Announcement Adds to situation
 The announcement which was em- bodied in a statement of some 1,bo0 words, reviewing the financial con- dition of the roads, made the trans portatlon situation even more tense than it had been through a day in
 aE Q strikes, wage and rate cuts had been prevalent.
 An announcement from the labor board that the piece rate system oi pay had been restored also added To the excitement and brought reports of dissatisfaction from the unions Union chiefs were dubious as to how their men, Se per cent of whom have authorized strike rather than ac- cept the recent 12h per cent wage reduction. would take the various announcements of the day
 rhe roads declared that their ac- tfon was being taken with the view lsof lowering freight and passenger rates in the future,
 "It was determined by the rail- roads of the United states to seek to bring about reduction in rates' the statement said, and as means to that end to seek reduction ln present railway wages which com pelled maintenance of present rates
 An application will be made i'm mediately to the United States rail road labor board for arbitration in wages of train employees sufficient to remove the remainder of the tn- crease made by the labor board de clsion of July 20, 1920, (which would involve a further reduction or ap- proximately 10 per cent), and for reduction in the wages Of all other classes of railroad labor to the go- ing rate for such labor in the several territories where the carriers orer- ate.
 Pass Public Wage Cut
 "The foregoing action Is upon the understanding that concurrent with such reduction in wages, the bene- fiji of the reduction thus obtained shall, with the concurrence of the interstate commerce commission, be passed on to the public in the reduc- ton of existing rail rates except in- solar as such reduction shall have been made in the meantime.
 "The roads have decided upon this course in view of their realization of the fact that the wheels of industrial activity have been slowed down to a point which brings depression and distress to the entire public and that something must be done to start tn m again in operation.'
 The statement then gives a lengthy review Of railroad finances and de- clares that Tt Is manifest that the recent reduction of wages author ized by the labor ,board in no sense meets or solves the problem of labor costs and in no way makes 1t pos sible for the railroads to afford a reduction in their revenues"
 The statement points out that many roads voluntarily have made freight rate reductions and adds that the rate of return earned by the roads In 1920. on the basis of investment was only 0.32 per cent