Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-11-17
RAILROADS TO
CUT RATES ON
farm PRODUCTS
Application to I. C. c. for
10 Per Cent Reduction
To Be Made
WAGE CUTS ALSO
Railroad Lines to Take Individual Ac-
ton in Making Wage Reductions
Effective.

/ New York, Nov. 17.-Immediate
application will be made to the In
terstate Commerce Commission for
permission to put into effect on one
days notice 10 per cent. freight
rate reduction on all farm products
las soon as possible"
This reduction, which wiz cost the
railroads of the country S55,OOO,OOO
a year, will be generally applicable
throughout the United States except
on traffic moving wholly within New
England.
The cut has been decided upon for
period of six months, but 1t was
announced, following a meeting of
member roads of the Association OF
Railway Executives representing 2Ol
lines, held here this afternoon that
should the roads be successful in re-
ducing payrolls during the six
months period the reduction would
continue and would be made part OF
the general rate reductions which
have been promised to the public af-
ter operating expenses have been
brought down still more.
Announcing the decision, Thomas
De Witt Cuylcr, president Of the As
sociation of Railway Executives, stat
ed that any reductions in such rates
made since September /, 1920, were
to be included in the 10 per cent.
and that it would be put into effect
without waiting for reduction in
wages.
"The railroads already have reduc-
ed freight rates substantially from
the level established by the commits
sion in August, 1920" Mr.. Cuyler's
statement said "Thc reductions al
ready made are estimated, as accu-
rate!y as can be, to involve loss of
revenue at the rate Of from S175,-
900. 900 to S20O,O00,000 annually.
These reductions on many roads rep
resent a loss much greater than any
corresponding saving realized from
reductions in wages already effected.
The railroads are, furthermore,
awaiting decisions Of the Labor
Board which, it is hoped, will relieve
the companies of the expense Of many
onerous and uneconomical working
conditions. The railroads are not in
a financial condition to make this
sacrifice.
"Unless there should be some re-
vival in business, the probability Of
which is conjectural, the entire i'm
mediate loss involved in this proposed
reduction in rates would be taken
from the net earnings Of the rail-
roads"
Mr.. Cuylcr said the railroads were
relying on the public for effective
aid in bringing about the necessary
reductions in labor and other trans
portation costs and that they hoped
for labor's cooperation. He declared
the railroads had taken the first
step to relieve existing business de-
preston and had given an earnest
example of their fixed purpose to re-
duce rates and to relieve, at the ear
licst practicable moment, SO far as
reasonably possible, the public's
transportation burden.
1t was further stated that applica-
tion would be made for Il rehearsing
of the hay and grain case, reduced
rates on which commodities were to
be made effective on November 20.
In the matter of seeking wage re-
ductions the railroads will proceed as
it was announced. SO far
as train-servicc men are concerned
the effort will he unanimous to bring
about reduction which will re-es-
tablish the pay scale in effect prior
to May /. 1920.
For all other classes OF workers
the railroad managers will seek to
establish rate of pay similar to the
going rate for similar kinds of work
in other industries located at diff
fcrcnt points on the right Of way.
It was pointed out that there might
be instances where some roads ask
ed for larger reductions for given
class Of employee than might be the
rate sought on road operating in
another part of the country. What
the roads are seeking is a liquida-
ton Of labor to a point which cor
responds to the level reached in other
industries whcrc business depression
has forced liquidation to greater
degree.
Railroad executive figure that a
probable saving in payroll amounting
to between S300,00O,0O0 and $400,-
900. 900 will be possible under present
plans for wage reductions. The
roads stand committed 20 pass on to
the public all reductions which they
are able to make in operating
expenses.