New-York tribune., 1921-01-29
Rail Chiefs Hint
At ReductiOnm
Freight Rates
As First Step Plan to Ask
Labor Board to Abrogate
National Agreements of
Administration With Men
Confer ON Wage Issues
Executives Say Costs Must
BeLowered to Earn 6 PC.
Under Transportation Act
s,eeso, Dsspasch to The Tribune

sseeso, Dispatch to The Trioxns
CHICAGO, Jan. 28.--Foced with 25
,er cent shrinkage in freight, the re-
,a.al Of railroad workers to accept re-
auetions in wages and mounting oper-
.sine costs, the labor committee of the
American Association Of Railway Ex-
..utives met to-day in the Blackstone
Hotsl to decide upon the policies to be
followed, particularly whether or not
.s this time to order sweeping wage
rductions The rail executives met
behind closed doors.
The meeting was called primarily to
consider the problem of whether the
,,ilroads would be able to operate un-
der present conditions, but the recent
rtion of the Atlanta, Birmingham &
Atlantic Railroad in ordering a wage
reduction brought forth the warning to
al member roads that they must OBJ
serve all Of the rates of pay and work
ing conditions as now established by
the United States Railroad Labor Board
until changes are brought about by or
Derby process.
In . statement given out by Robert
r.. ,Binkert, assistant to Chairman
Thomas Dewitt Cuyler, of the execu-
tives' association, the roads were
warned that action contrary to the or
ders of the railroad labor board would
lay them open to the charge of dis
obedience, which might result in pen
alties.
May Abrogate Agreements
~The subject has been referred to
the labor committee" said Br Bin
kerd, (which will report as to appro-
pirate action to be taken by the rail
roads in accord with the provisions of
The act, and which will be in keeping
with the changing of economic con-
ditions."
twas learned to-day that the rail-
road executives planned to ask the
labor board at a meeting Monday to
abfogate the national agreements
signed by the railroad administration
and railroad employees. This will be
done. it is said. with a view to re-
dHcing the freight rates.
Among those attending the sessions
are W. W. Atterbury, Of the Pennsyl-
vania lines; E. E. Loomis, of the Lehieh
Valley Railroad, and NJ. L. Bell, of the
Rock Island, all members of the labor
committee Of the American Association
Of Railway Executives. Other men,
bers of the committee expected in Chi
cago are W. G. Besler, president of the
Central Railroad of New Jersey; c. H.
Markham, president of the Illinois
Central; H. E. Byram, presiden. of the
Chicago. Milwaukee & st. Paul; N. D.
Maher, president oe the Norfolk &
Western, and w. r. Scott, president of
the Southern Pacific in Texas and
louisiana.
Arguments of Roads
The railroads are expected to pre-
xnt an argument that operating forces
have been reduced to a minimum in the
interests CT economy; that the roads
are net earning and cannot earn the 6
per cent guaranteed by the transporta-
tion act unless relief is granted; that
wages have been increased 100 per cent
since the President signed the Adam
son act, and that these increases have
been responsible for two-thirds Of the
sxpsnsion OF operating costs from S3,-
10000, 900 to $4,000, 900 900 a year.
That the railroads are fighting me
battle Of the public in seeking a lower
wage level is the claim made by their
feprese natives. AS meters stand, they
assert, they cannot make 7uccess CT
operation of the roads under private
management, because the economies
promised under private control are i'm
possible under the scales now paid.
The situation. as viewed by the eail-
ay executives, is set forth by Samuel
O. Dunn, editor of The Railway Age
and counsel of the labor committee of
tie Association of Railway Executives
NO, in an editorial to be published in
!ae next issue Of The Railway Age, will
iss forth that the millions in increased
FaRes prevent untanpl;nr of the snarl