New-York tribune., 1921-07-23
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Force Accepts
Pay Reduction
Companyto SaveS2, 100000
by Wage Cut Affecting
$4,000 Employees, Says
Hedley, Chief of Lines
Takes Effect Tomorrow
Lower Scale, However, Does
Not Solve Transit, Prob
lem, President Warns

Frank Hedley, president and general
manager of the Interborough Rapid
transit Company, announced yesterday
that the $4,000 employees of the com
pany had agreed to accept a 10 per
cent cut in wages, to take effect to-
morrow. The new wage scale is to be
In force until June 80, 1922, and will
mean saving of Approximately ST.
100000 to the Interborough Mr.. He'd
ley declared, however, that it was i'm
portant that the public appreciate chat
even this assistance is not a complete
solution Of the transit problem"
ION July this company placed be-
fore the general committee of the
brotherhood of Interborough Rapid
Transit Employees" said Mr.. Hedley,
consisting of sixtysx delegates rep
resenting about $4,000 men, a request
to take under consideration the modifi-
cation of the working agreement run
ming to December 81, 1921, by ac-
ccptance Of q reduction of 10 per cont
in the wage schedules provided in the
agreement.
"The company stated that a receiver
ship could not be avoided if present
conditions were to continue unchanged,
and asked the employees 10 consider,
in view of the decreases in their cost
Of living which had taken place within
the last year, if they would not assist
the company to meet its difficulties By
acceding to the proposed modification.
After numerous conferences and
thorough consideration by the en-
ployees of all facts in the situation.
the company has to-day been notified
by the general committee that the
sense of the brotherhood was in favor
of modification of the agreement as
requested, the new wage scale to be-
come effective on July "a, and to con-
tnue to June 80, 1922, the reduction
amounting to approximately $4,000, 900
a year. The reduction affects all Off
GERS and employees of the company,
whether members of the brotherho ood
or not, who participated in the in
crease of June, 1920. The manage
ment of the company is deeply appre-
ciative of the cooperative movement
on the part of its employees.
at is important, however, that the
public appreciate that even this as
sistance is not complete solution of
the transit problem. While this action
will reduce operating expenses, the
Improvement will not be sufficient TO
bring about what to the public is the
most important result of all-namely,
to make the investment Of the COM
pany and the city self-supportng. so
that the capital required by the city's
growing transit needs can be com
manded for the extension Of the city's
transit service. That, and that only,
would be the real solution of the trac-
ton problem"
Mr.. Hedley made public a copy Of
the letter from the brotherhood ac-
cepting the reduction. The only pro-
viso made by the employees is that in
the event of the company going into
the hands Of a receiver prior to the
termination of the present working
agreement on December 81, 1921, the
acceptance shall cease to be effective
and the employees reserve tenure
liberty of action" upon the appoint
ment of receiver, "to insist upon the
continuance of the rates in the exist
ing contracts until their expiration on
December 81, 1921"