The Adair County news., 1921-10-25
Propose to Reduce Wages and
Return all Savings by Re-
duction in Charges
FULL TEXT OF PROPOSAL
Statement BY Thomas Dewitt cuyier,
Chairman Of the Association OF
Railway Executives on the
Situation.

country, MI. 1nOl1<Ao IC " ~ ~
chairman of the Association OF Rail-
way Executives, made the following
statement:
At a meeting of the Association OF
Railway Executives today, it was deter
mined by the railroads of the United
States, seek to bring about reduction
In rates and as means to that end
to seek a reduction in present railroad
wages which have compelled mainten-
ance of the present rates.
An application win be made imme-
diately to the United States Railroad
Labor Board for a reduction in wages
of train service employees sufficient
to remove the remainder of the m
creases made by the Labor Board $
decision OF July 20, 1920, (which would
involve further reduction of approx
mately ten per cent?, and for reduc-
ton in the wages of all other classes
of railroad labor to the going rate
for such labor in several territories
where the carriers operate.
To Reduce Rates as Wages Go Down
The foregoing action is upon the IN
derstandfng that coRcurrently with
such reduction in wages the benefit
of the reduction thus obtained shall,
with the concurrence of the Inter
state Commerce Commission, be
passed on to the public in the re-
duetion OF existing railroad rates.
except in SO far as this reduction
shall have been made in the mean
time,
The homogeneous have decided up
on this course in view Of their reah-
zation of the fact that the wheels of
Industrial activity have been closed
down to a point which brings depres-
sion and distress to the entire public
and that something must be done 70
start them again in operation.
The situation which confrcnts the
railroads is extremely critical The
railroads in 1920 realized a net rail
way operating income of, about s62.
100000 upon a property Investment ot
over $4,000, 100000 and even this
amount of g. million included back
| mail pay for prior years, received from
the Government of approximately
$64,0eo,O00, thus showing, when tl1t
operations of that year alone are con
sidered, an actual deficit. before max
ing any allowance for either interes
+. or dividends.
The year ended in ekrious depres
Sion In adj branches Fyf iuil1Strv am
IN MISREPRESENTATION hof the market de
mand FOR and the Ti-iceS ofibasic con-
noditieS, resulting IN a very seriees'
FALLING off in the volume of traffic.
Roaes Forced to Defers Maintensh :,
IN THIS Situation, a POLICY ~ tn,
most rigid ec0nImy AID of pos bonin,
ana emitting 40 the bone tf4a upkep,
oI the properties was ,fe0pted by tn,
fhllroads. This Was at the Drice @
Segiecting and for TIE time defer+fo,
work which must Hereafter and at III
t.99F future be jttone and paid fot
ms is llluStra Ee,i by the fact thai
d" "i Septembc g ID, 1921, over IS pe
Se!t, or 0f4,E 81 in number. of tn
SiShl cars y the carriers were i
Dub oFuer { EG needing repairs, IA
"s q d NJ krmal of bad order car
SI hoI NOR y than 100000 as is fun
she5 IiuSU atsed by the deferred an
lnadequat, maintenance of othe
lures. ''''" 81 ~
ENef under those conditions an
IN ~" kfs large bill charged up agains
nc SstUre-which must soon be pro
wv d for and paid if the carriers ar
- perform successfully, their tran,
grtatiOn duties,-the result of Oper;
ions for the first eight months of tn;
year, the latest available figures, ma
been at rate of net railway operar
ing income, before providing for intel
est or dividends, amounting to Oni
&c per cent per annum on the valuz
ton of the carrier properties made B
the Interstate Commerce Commissio
In the recent rate case, an amount ZIG
sufficient to pay the interest on the
outstanding bonds.
Roads Earnings Far Below ReasoI
able Returns
1t is manifest, from this showing
that the rate of return of 515 or
per cent for the first two years afte
March l, 1920, fixed in the Transpo
tation Act as a minimum REASONABLE
return upon railroad investment, he
not been even Appropriated
much less reached, and that the pr,
sent high rates accordingly are Nd
due to any statutory guarantee {
earnings, for there is no such qua
antee.
In analyzing the expenses whic
have largely brought about this sit
alton, it becomes evident that by fl
the largest contributing cause is IL
labor cost.
Today the railroads pay out
labor approximately 90 cents on II
dollar they receive for transportatiC
services, whereas in 1916 40 cents {
the dollar went to labor.
On the first day of January, 191
when the Government took charge
wages through the Adamson Act, IL
labor cost of the railroads had u.
exceeded the sum of about ST ,46S, OOl
600 annually In 1920, when Cover
mental authority made the last wa,
increase the labor cost of the "a.
roads was about $3,698 100000 a
nually, or, if continued throughout Il
year instead of for the eight mont
during which the wage increases we
IN effect the labor cost, on an annu
basis, would have been largely in e
| cess Of $4,000. O00, 900, an increase Sin,
the Government took charge of ra