Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-03-14
Monday, March IA, 1927.
RAILROAD SURGERY

There is a human instinct respond
ing favorably to fair play, as well as
reacting unfavorably to foul play.
1t may not always respond as
promptly in the first instance, wait
ing to see If the play really be
fair, but it exists nevertheless. and
If 1t didn't humanity wouldn't be
worth saving. 1t is therefore en-
,ouraging to believe that the attitude
of the Pennsylvania Railroad Com
pany in reducing salaries Of officials
as we'll as wages Of other employees
will bear good fruit. Certainly it is
a conspicuous example and stands
out strikingly among the methods
proposed for getting back to normal
conditions In many instances. un-
doubtedly, the salaries have not in
creased in proportion to the wages.
Perhaps an equal rate Of cut down
would be unjust but that some sacri-
fee should be required of all is very
vital to the organizations capacity
for team work"
The public will be especially inter-
ested because of all the railroads OF
he country the Pennsylvania stock
is said to be held to a greater extent
by that public. Doubtless much of it
is in the hands of people who are past
all
nes from long years Of toll have been
so placed in the belief that it was a
safe investment. They have seen the
value of their holdings shrink great
~ but the fair dividends have been
paid 1t is to be hoped they may
/. continue TO be.
Because of the conditions men
{ Toned ifsfor no other reason the
statement accompanying this act of
The management is of interest, es-
ccially the following parts of it:
In view OF the changed economic
/ conditions it is a manifest obligation
~ the public generally and especial
F
and stockholders that railroad eX-
I pcnses be reduced. The management
. of the Pennsylvania Railroad has al
ready made Il reduction of over TO-
900 men in its personnel, seriously
curtailing maintenance of roadway
and equipment, consolidated division
II orga nizations and has stopped all
expenditures on new work.
Even with such economies as have
already been enforced it takes almost
The whole OF the current earnings
merely to pay current operating eX-
pcnses.
1T is evident that the requirements
Of the transportation account that
railroads shall be administered in an
efficient and economic manner cam
not lie satisfied without still further
reductions in expenses.
I'm February 1890 of all Pennsyl-
vania system operating earnings were
absorbed by charges for labor against
a normal charge for labor of less
than 5000 of earnings.
"A foundation for restoration of
normal business cannot be laid until
Z there has been q frank recognition of
( the real situation and a readjustment
of wages to meet the altered condi-
tons. The more promptly an ad-
iustment to the memorable facts Is
made the more promptly can those
who are now able be re-employed
and basis established. for renewed
prosperity. In making a readjust-
ment of salaries and wages it is but
fair and proper that the burden
should be borne by all officers as
well as employees.
E "It is accordingly:
q Resolved that the executive Of
fcers of the Pennsylvania Railroad
Co. are directed to give, as promptly
az possible, proper notice that it is
the intention of this company.rto re-
duce salaries and wages Of officers
and employees to accord with
economic conditions"
1t has been nearly forty-four years
since this company made a horizontal
reduction, and it naturally caused
some depression in the stock and
speculation respecting future divi-
dends.