The daily banner. (Cambridge, Md.) 1897-2008, 1921-03-10
PENNSY WAGES
TO Be REDUCED
Every Officer and Emp|Oye Will
Have Salary Gut.
OVER 10000 LAID OFF
Officials of Road Think Move Will
Establish Basis For New Pros
perity.

psrIty.
Philadelphia, March 10.-A wage We
ductton ON the Pennsylvania railroad
affecting every officer and employee
from the president Town, was agreed
a. at Il meeting of the board of di-
TecturS.
The extent of the cut, and how sOun
Il will become effective, was mol an
nnunced Officials said the nrtailS Were
not known now.
In announcing the cut officials made
known that more than 1O,OUU employees
have been dropped from the roll since
the beginning of its rttrenCmnent sol
icy. This, the company points "ui,
has seriously Curtailed maintenance
and upkeep of equipment.
in view of changed economic cnndi-
tionS." SAYS the announcement of the
board, 1T is Il manifest obligation t"
the public generally. and especially t."
shippers. passengers, investors and
Stockholders that railroad expenses be
reduced.
The management of the PennSylVa-
MIA railroad has already made IL re-
durtion of over 10000 men III its per
sonnet. seriously Curtailin% mainten-
ancp of roadway and equipment. CON
soliGated divisional organizations. and
has stopped all expenditures on new
work.
"Evpn with such economies as have
already been enforced it takes oituo.;
the whole. of current earnings merely
to pay current operating expenses.
1T is evident that the requirements
of the transportation Get that rm!-
roads shall be administered in an ef
ficient and economical manner cannot
be satisfied without still further re
ductfonS in expenses.
"In February. 20 per cent OF all
PENNSYLVANIA system operating earn
fnr@ we're absorbed by CHARGES for II
hof against n normal charge fer labor
of less them 30 per cent OF earnings
"a foundation for the restoration q"
normal business cannot be laid until
there mas been frank recognition 90
tEo real situation and reimbursement
of v.ar,s to meet the altered c0nd:
tirns The more promptly an adluS'-
mont to the inexornhle facts Is MADE
thc more promptly can those who ar
nov, idle be re-employeG and a basis
established for renewed prosperity.
"In making a reimbursement of S;Q3
rics and wages. it is but fair and pr"',
or that the burden should he borne by
all officers as we'll as employees.
1T is accordingly,
"PeSalved that the executive oftlcerS
of the Pennsylvania Railroad com
r0ny are directed to give as promptly
as poSsihlp. proper notice that II Is
The intention of this company to reduce
the salaries and wages of officers afd
emplOyes to accord with economic; cen
GitiOnS.
In readiusting salaries and wages.
the management shall have due regard,
among other relevant circumstances.
to:
"GO The scale of wages paid for
similar kinds of work in other indus
tries:
"(2l The relation between wages
and the cost of living:
"(3) The hazards of employment;
900 The degree Of responsibility
"(5D The training and skill requir-
ed:
"(G) The character and regularity of
employment; and,
"CO Inequalities of increase in
wages or of treatment, the result Of
previous wage orders or adjustments :
certain of which items are variables
differing materially as between various
localities over so large 2n area as
that covered by the Pennsylvania sys-
tenn. This differentiation shall he re-
cognizqd in all establishments.
"Such reductions as are made in sal
aries and wages shall bear an equit-
able relationship to the Increases in
pay made since January /, 1918.
"Thp equitable differentials which
sh"nld apply between various classes
stored
"All procedure in effPcting such read
iustment of salaries and wages shall
he tai an in an orderly manner. and in
stri't r"cord with the transportation
act"
Officers of the railway brotherhoods
9e~1;~0a to comment on the PennSv
amen" reroh"t. Some doubt was en-
pressed As to whether it would effect