The Challis messenger. (Challis, Idaho) 1912-current, 1921-12-28
RAILROAD P[AN1
GET RATES m
''s'':: I. Asdss' Wage. N |
Al tie Saving BY a.t,,tL,
h Charges
FULL TEXT OF IL pso,l

~"'sS'nem as DEWITT q
Chairman Of the As,oo,..,.
Hallway Executive. On d.
situation
Following . meeting in ch,s..
eoosr IA. 1921, Of the pre.,S.s
nearly all the leading railrosS.
country, Mr.. Thomas Dsw,.. ].
Chairman Of the Associat,on -
way Executives. made the ~ y
statement: ' Asa
Al q meeting Of the assoc,.u
railway executives today, It VA.
mined BY the railroads Of tho h
States, to seek to bring about .
ton In rates, and as q mean. =
end to seek a reduction in preaass
road wages which have -
maintenance Of the present ~.
An application will be mads ~,
ately to the United States r.I,,.s
Dor board for a reduction In ~
train service employees sufaeiss|
remove the remainder Of the No.
made BY the labor boards dec;s
July 20. 1890 (which would invss]
Surther reduction Of approximatel,
per cent? and for q reduction n
wages Of all other classes Of I'M
labor - the going rate for such ?
In several territories where -
riers operate.
Te Reduce Rates A. Wases q. -
The foregoing action Is upon H.
deSstanding that concurrently
such reduction in wages the benei
the reduction thus obtained ,hall T
the Concurrence of the interstate
Derce commissiQn. be passed On 4
public In the reduction OF existing
road rates, except In SO far a. IL
ouction shall have been made 4
meantime.
The arrangements have decided Z
this course In view Of their realin
Of the fact that the wheels Of indpI
q activity have been closed down
point which brings depression and J
tre2s to the entire public, and {
something must be done to start u
again In operation. The situst
which cOnfronts the railroads q
tfemeiy critical. The railroads in I
realized . net railway operating ~
Of about $82. 0OO, 900. upon q prui
Investment Of over $l9,OOO,O00,O00 :
even this amount Of sixty two min
Included back mail pay for priee VI
received from the government Il
proxiptatsly 81. 000. 900. thus shovi|
when the operations Of that year ~
Are considered, an actual deficit bel(
making any allowance TOR either u
est or dividends.
The year ended In serious deprea
In all branches Of industry. aAd|
marked reduction Of the market 4
mand for and the prices Of basic q
resulting in Z very sefid
off In the volume Of trafae
Roads Fercea To Defer Aai,tsaass)
In this situation q policy Of the ~
rigid economy and Of pOstpOning 9
cutting to the bone the upkeep Of Z
was adopted by the q
roads. This was at the price Of y
Letting and for the time. defenS
work which must hereafter and % 9
near future be done and paid fos. y
Is illustrated by the fact that, -
September Is, 1921, over l6 per g
Or 81, 431 In number, Of the ny
cars Of the carriers were In bad ofe
and needing repairs, as against =
nal Of bad order cars Of not more U.
l6O. 900. as is further illustrated ~ 9
deferred and inadequate maintenas
Of other equipment and OF roaou'
md structures. Even under those =
iitiOns, and with this large bill cnaSyl
up against the fuSlre,-whicn @s
noon be provided for and PAID J! y
are to perform successln
heir transportation duties,-tne ~
u operations for the first eight mo-
Il this year. the latest available ~
las been at . rate Of net railwa!
ting income. before providing ns
crest or dividends. amounting y
'.6 per cent par annum on the "
ion Of the carrier properties raos
he interstate commerce commlsae:
he recent rate case, an aInount .
'dfficient to pay the Interest On ~
bonds.
Roads EaFnlngs Far Below Hees
Returns
It Us manifest, from this snow.1
bat the rate Of return Of 5h or !
'ent for the first two years after "a.
!, 1920. fixed In the fanspOrtati0n y
s q minimum reasonable return ";
abroad Investment, has not been -
lpproximated, much less reac0ea;
hat the present high rates accosu.
IRE not due to any statutory guast1s
I earnings. for there Il no sscn 81
ntee. az.
In analysing the expenses when Il
Argely brought about this sltuauv.
ecomes evident chat by tar tns :.
ct contributing cause u the laoos q
Today the railroads pay out to ~ 4,
pproximately 60 cents on me ~.
hey receive for -transpOrtatioe !. !,
ices. whereas In 1915. 40 cents Oh =
ollar went to labor. -,
On the first day Of January -,