The Hartford republican. (Hartford, Ky.) 18??-1926, 1921-11-11
Propose 10 Reduce Wages and
Return All the Saving by
Reduction in Charges.
FULL TEXT OF The PROPOSAL
Statement by Thomas De Witt cuyier,
Chairman Of the Association Of
Railway Executives, on the
Situation.

the country, Mr., THOMAS De witt 7
Cuyler. chairman OF the Association
of Railway Executives, made the fol.
lowing statement:
at n meeting OF the Association
of Railway Executives to-day II was
determined by the railroads of the
United States. to seek TO bring about
a reduction in present railroad wages
which have compelled maintenance
of the present rates
An application will he made Inn
mediately to the United States Rail.
road Labor Board for a reduction In
wages Of train service employees
sufficient to remove the remainder
of the increases made by the Labor
Boards decision of July 20. 1920.
which would involve a further re-
duttion OF approximately ten per cent
and for a reduction In the wages OF
all other classes of railroad labor to
the going rate for such labor In sew
erai territories where the carries OPP
crate.
To Reduce Rates as Wages Co Down.
The foregoing action Is upon tho
understanding that coBcurrently with
of the reduction thus obtained shall,
with the concurrence OF the Interstate
Commerce Commission, be passed on
10 the public In the reduction of ex-
listing railroad rates. except in so far
as this reduction shall have been
made IN the meantime.
The managements have decided
-upon this course In view OF their
realization OF the fact that the wheels
~ 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 TO
start them again in operation.
The situation which confronts the
railroads Is extremely critical Inc
railroads in 1920 realized net operat-
ing income OF about S62,OOO.OOO' upon
n property investment of over SID
900. 600 900, and even this amount OF
$40 600 600 included back mail pay Tor
-nrIor years received from the govern
ment of approximately s64,OOO.OOO.
Tim. showing. when the operations
Of that year alone are considered an
actual deficit before making any at
Iowance for either interest or divi-
dends.
The wear ended in serious depres-
sion in all branches OF industry anu
in marked reduction OF the market
demand for and the prices OF basic
commodities, resulting in very sert
.ous falling OF in the voume OF tranic
Roads For To Defer Maintenance.
In this situation, a policy OF the
most rigid economy and OF postponing
and cutting to the bone the upkeep
of the properties was adopted by the
railroads. This was at the price
of neglecting and for the time defer
ring work which must hereafter and
at the near future be done and paid
for. This Is illustrated by the fact
that. as OF September Is, 1921, over
1s per cent or 374431 in number. OF
he freight cars Of the carriers were
i'm bad order and needing repairs. as
against a normal of bad order cars OF
not more than 100000: and as Is
further illustrated by the deferred
and Inadequate maintenance OF other
equipment and OF roadway and struc-
lures.
Even under those. conditions, and
with this large bill charged up against
the future-whicb must soon be pro-
vided for and paid II the carriers are
10 perform successfully, their trans
portation duties-the result OF opera
,tions for the first eight months or
this year. the latest available hgures
has been at rate OF net railway
operating income. before providing for
interest or dividends, amounting to
only 26 per cent, per annum on the
valuation of the carrier properties
made by the Interstate Commerce
Commission in the recent rate case,
AN amount not sufficient to pay the
interest on their outstanding bonds.
Roads Earnings Far Below
Reasonable Returns.
II Is manifest, from this showing,
that the rate of return of 5h or q
.per cent for the first two years AFTER
March /, 1920 fixed in the transporta-
tation act as minimum reasonable
return upon railroad investment, has
not been even approximated-much
less reached; and that the present
high rates accordingly are not due
10 any statutory guarantee OF earn
In analyzing the expenses which
have largely brought about this sit
uation. II becomes evident that by far
the largest contributing cause is the
tabor cost.
To-day the railroads pay out to
labor approximately COO on the dol
lar they receive for transportation
services, whereas in 1916, 4Oc, on the
dollar went TO labor.
On the first day OF January, 1917,
when the government took charge
of wages through the Adamson act,
the labor cost of the railroads had
not exceeded the sum OF about S1,-
0S,O00, 900 annually. In 1920 when
governmental authority made the last
wage increase, the labor cost OF the
cailroads was about $3,6ss. 100000 an
nually, or, II continued throughout
the year instead OF for the eight
months during which the wage In
ersases were in effect the labor cost.
t- -r.'--- -..~. ~-----s-. 80. 80.