The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-05-02
SANTA FE TELLS
WHY RETREHCHHEAT
IS NECESSARY


Kama. May LIN con-
IfIcuce with 50 employees nhou wuEe
reo1uilunt no Santa r. railway HH-
lem. thfoueh rs manafeFa. has laid
bare n rood many office aecrtts IN
order 20 give workers nu the farfa
that re- available on the subject.
Fer fr1fnrrrf On fhr basis OF the
santa ft'e annual financial require
s ssss..s g ,s 2 s,ss. g sb,l ssass, f's sss
railroad ought 20 have net earnings
81 approximately 1l1.0o0.ooo per year,
or m average Of t1.1do.0 . per month.
I1r4 Il hage auch onrnlnHsl n does
not. the company's say. Tho
amount % the MT rottrue required
"a. 1871. was tli. 26o.o0o. while the
aetuai nat revenue IN that period
amounted q only tflie.ooe. which
y scarcely enounh TO pay for a three
month"; proportion o. inNre and rem
tab, lcnvlnE nothing for nxed chars-
- and other ~Obllgatione Of tho COM
pant. That - wha, the comparys
Officers told the employees 70 show the
need q rntrenchmcnt-
without taking dividends into coh-
a4efullon a. ALL the Santa Fc was
operntQd in February al q loss OF more
than tfs1oeoOo. the de-
cinFed Got a dollar was earned for
interest on bonds or for surplus 20
~ AA W.MINN|H ~ ~ MM.NANN ~
companyea financial standing. In this
two preceding montnn, December and
January. owing to the marked de-
cline IN business and the abnormal
wages a somewhat similar situation
prsso1lod. In December the net oper-
nfing income amounted 20 only al
11f.3et. which was barely sufficient
20 pay Interest on bonds and IN Janu-
nfy here was . deficit OF ta5.i11.
Taklug the two months togathcr there
nj not sufficient earned 20 pay h
Interest on bonds q nothing FOR
dividends or surplus
Here T. another nit Of inside lnfor-
nation. On April - the number OF
empty cara on The santa Fo was al
o7t, which means that approximately
a. per cent o. tiie freight cars owned
~ the railway which ought 20 be earn
inE crrnue are tied up N earning
nothing. In the eiGht months ended
November 80. 1890. The average mum
Der Of loaded cars offered for move
msnt was t.i2s per day. and IN the
next four months ended with March
81. 1891, the average was $3.50 per
day. a 4ecreaHe Of approximately ie
per cent In the months OF January.
February. IND March, 1871. the num-
bcr Of loaded ears offered for move
ment ~ras an average OF s.43i per day.
AGAINST an average OF l.les per day
In the same months OF 1890. n de-
crease OF Is per cent.
The Santa Nv told liz employees u
could no operate and continue TO
pay the high scale - vases estab-
lisasd after the a From 1917 70
1890 the payroll of the Santa Re In
creased nearly l1e per cent. he av-
ernee yearly ~ OF employees in
creasing approximately 0 per cent
IA hat period.
Al the present ume approximately
90 cents % sven dollar that the rail-
road receives fro moperation Is paid
cut IN wagee. The remaining 40 cents
~ not Sufficient 70 buy fuel and other
materials and supplies any pay taxes
and other obligations.
Comparing september, 1890, with
February. 1871, %opcratinE revenues
nhow a decrease Of approximately |
t~s.4s0.oo0. or about 20 per ceai. OPP
eratins expenses taxes and rentals m
The month Of FEBRUARY 1891. exceeded
The operating revenues BY t29s,ss1,
ind Tor the months OF January and
February the operating expenses. /
taxes and rentals exceeded Che oper-
nting revenues hy $4,000. Thus Il
cost M Santa Fe more han n doll
venue In those two months without
considering its fixed charges and other
obligations.
Tie santa Pc takes the position
that the period Of readiustmcnt has
now come. and A. the cost OF living
has been on the downward scale for
some months. Il IL obvious that tire
country has entered upon the period
OF declining prices. which r. reflected
~ the fact that a OF men IN in
dust riea other thar the railroads have
been ana are going down. To quote
from an official Santa Re statement:
RAILROAD mcn were fully entitled
to Increased wages 20 meet the rising
prices OF Twins and the higher wages
paid in comparable Industries during
tho war period. Decision No. z 81
the United States railroad labor board.
Issued on July 20. 1890. which e.
tabliahed a scale OF rates retroactive
20 May J. was p~redicated on h reas-
~onahlanesa thereof, considering the
high costs % living. These high costs
nave receded and u Ia an economic
necessity. IL this railroad IL TO continue
20 operate. that there shall be a
downward trend In wages paid. The
Increases In rates granted by the In
tersfate Commerce Commission, which
u was hoped would offset the In
CREASE In payroll costs OF tho railways.
have not borne their expected fruit.
Industrial activity has been slowed up,
met have been thrown out OF emplor-
ment. and the volume OF freight has
decreased 10 an alarming extent. I'M
der such abnormal conditions u IN I'M
possible 20 SET aside sufficient funds
10 provide the public with adequate
service n pay our obligations"