The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-01-22
RAILWAY WAGES
MUST COME DOWN
Roads Can't Earn Dividends
Even on Present
High Rates
FREIGHT TRAFFIC
SHOWS BIG DROP
Heavy Declire IN Traffic Creating Seri-
Gus Situation to Which Congress and
Interstate Commerce Commission
Must Seen Give Attention.


Must Seen Give Attention.
NEW YORK. Jan. 22.-Railway
wages should and must be substantially
reduced sooner or later, and steps toward
their reduction should be taken in the very
near future, Samuel .. Dunn, editor of
/ the Railway Age, told the New York Rail
road club in an address here last night.
"Experience since the recent advances
in rates were made have demonstrated,
Mr.. Dunn contended. that even with
maximum traffic the railways cannot earn
6 per cent on the valuation hXed by the
Interstate commerce commission with the
present passenger and freight rates ana
present wages They are not now hand
ling q maximum business. Their freight
traffic has declined 80 per cent since Octo-
her and on January 5 they had net sur
plus of 257. 900 cars. -,
The demonstrated inability OF the rail-
WAYS to earn the return expected even
when handling a maximum Of trathc, Mr..
Dunn said. and the tremendous decline
of traffic are creating serious SITUATION
to which not only railway managers nut
the railroad labor board. the interstate
commerce commission ana congress must
give early attention.
In September the railways earned only
81 per cent of the expected net returns
in October only n per cent; in November
only IS per cent The total net operating
income they should have earned for those
three months to have contributed their
share toward n t. per cent annual return
was 1924 AT 900. while the amount act
ually earned was only S2195OO,OoO. At
this rate they would earn only per cent
and these were months of large business
The Interstate commerce commission has
recognized the principle that the railways
must earn & per cent to enable them To
EXPAND their facilities sufficiently to give
the public adequate service.
The public would strongly oppose
! further advance in rates under present
conditions when prices of most commodl-
I ties. and especially of farm products, are
declining. The only alternative Is to re-
/ duce operating expenses. The present
: very high operating expenses are chIehN
due TO the enormous pay roll. This cnOr-
nous pay roll is due to the granting of
the eight hour day under government con
troll which has caused a large increase IN
the number of employees. and to the large
advances in wages made by the railroad
administration and by the railroad labor
board last July.
/ The operating expenses of the rail
ways are now running at the rate OF about
! s.. $50. 100000 a year, or over $3lm,Uuo,-
600 n wear more than in 1917. or tins
Increase in expenses almost S2OW.OOo,b0D,
or about two-thirds is due to increases in
the costs of materials and supplies.
No injustice would be done to railway
! employees by reducing their wages at this
time. The advance of S62O,OOo.OOO year
given them last July by the railroad labor
board was granted when the cost OF living
was the highest ever known. being lO4.0O
! per cent more than in 1914. Since then
the cost of living has declined and is cS-
timated by the national industrial confer
| encc board to be now only 80 per cent
more than i'll 1914.
| The present average annual wage of
railway employees for working eight hours
Ia day is 10 per cent greater than 1t was
/ in 1914 for working 10 hours day. Tn
! der the national agreement made by the
governments railroad administration with
various organizations of railway employees
many millions of dollars are being paid
annually for labor that is not done. In
1914 the railways had 1.IOO.OOO employees
and paid them Sl.33T 100000. In 1917
| they had about the same number of ctn-
pIoyes and paid them 81 740.000,O00. To
day, because of the establishment of the
! eight-hOur day and the advances in wages
which have been granted, they have about
l ,9JO.OOO employees who are being paid
/ 81. 600. 0OO. 900 a year. While the increase
| i'm the average annual wage since 1914 has
| been about 49, per cent. the increase in
! the average in the total pay roll has been
about 40 per cent.
! There is much complaint from many
/ sources regarding present 1feiSnL ana pas
scnger rates. The necessity for the pres
cut rate is created chiefly by present rail
way wages. The farmer. shipper and con
sumner are all deeply interested in the
question of railroad costs, becauS" the cost
/ IS what makes the rates which all the
! public have to pay directly or indirectly ::
and the railway pay roll at present con-
stituteS 60 per cent of all operating ex
penSes.
'AlI the present railway costs should
| be reduced but the pay roll is so large a
part Of the total expenses that no subStan-
| tial relief to the railways. which are not
earning an adequate net return. or to the
J public, which has To pay present freight
and passenger rates, can be obtained with
/ out Il substantial reduction in wages.
| Farmers and business men recently
| have lost many hundreds of millions of
! dollars because of declines in prices
| Wages already have been reduced in many
! industries. The railroad labor board, in
granting the advance in wages last July
based it largely upon the high cost of liv-