The Challis messenger. (Challis, Idaho) 1912-current, 1921-11-09
RAILROAD plan n
GET RATES DOW
Propose to Reduce Wages and a,,,,,
All the sa'in, BY Rsaus,ip, ''''
In Charges
FULL TEXT OF TIVE psopo. :,
Statement by Thomas Dewitt, c..,
Chairman Of the Associate. :. =
Railway Executives o,...
Situation

I - ~''AS III Chicago OIL
tober IA, 1921, Of the president. W
nearly all the leading railroads IN :.
country, Mr.. Thomas Dewitt Cnr,a
Chairman Of the Association Of d."
way Executives, made the follo~,"
statement:
AT meeting Of the associatio,
railway executives today, it was deto.
mined by the railroads of tho 1Tr;..
States, to seek to bring about rem"
ton in rates, and as means to tho
end to seek a reduction in present "a,
road wages which have cOmneneJ
maintenance of the present ratee
An application will be made immsd,
atcly to the United States railroad
Dor board for reduction in wages
train service employees sufficient
remove the rema.nt.er of the increas,
made by the labor boards decision
July 20, 1920 (Which would involve
further reduction Of approximately ten
per cent? and for a reduction In tho
wages of all o,her classes of railroad
labor - the going rate for such labor
in several territories where the csr
rlers operate.
To Reduce Rates As Wages Go Down
The foregoing action is upon the IN.
Outstanding that concurrenty with
such reduction in wages the benefit Of
. the reduction thus Obtained shall, Win
the concurrence Of the interstate com.
merce commission, be passed On to tho.
public in the reduction Of existing rail.
road rates, except in so far as this N.
duction shall have been made in tn
meantime.
The arrangements have decided upon
this course In view Of their realization
Of the fact that the wheels Of indlstri.
al activity have been closed down to
point which brings depression and dis.
! tress to the entire public, and that
something must be done 10 start them
again in operation. The situation
! which confronts the railroads is ex-.
t tremely critical. The railroads In 1aW
, realized net railway operating insoeA
) Of about So 100000, upon Il properly
Investment of over $4,000 goo and
even this amount Of sixty two million
! included back mail pay for prior yeats
! received from the government OF ap'
! proXilla;ely $64 600, 800, thus showing,
when the operations OF that year alone
are considered, an actual deficit before
making any allowance for either inter-
est or dividends. ,
The year ended in serious depressim|
In all branches Of industry, and mi
marked reduction of the market gel
mand for and the prices of basic conf
moditieS, resulting in very serious
falling off in the volume OF trafnc.
Roads Forced To Defer Maintenanes
In this situation policy of the moa
rigid economy and of poStponing aaol
cutting to the bone the upkeep OF lnel
properties was adopted by the raul
roads. This was at the price OF nes1
lecting and for the time, deferrlnS
work which must hereafter ana ID tneI
near future be done and paid for. 1msI
is illustrated by the fact that, as ol
September 10, 1921, over IL per ceHll
or 4,431 in number of the 1reisl'|
cars Of the carriers were in bad oIus'
and needing repairs, as against nor'
hitl VI DpO OAuSi Stl' ~ 49, Il
160, 900, as is further illustrated by tnF|
deferred and inadequate malhtenanssl
of other equipment and OF roao"a'|
and structures. Even under those col'I
ditions, and with this large bill chafsesl
up against the futIre which ms1'l
soon be provided for and paid II ;nsI
carriers are to perform succeSsluA;,l
their transportation duties,-the resa.|
of operations for the first eight tnonl1'
of this year, the latest available hssls"I
has been at rate of net railway eps1
ating income, before providing ZOE III
terest or dividends, amounting 10 onv
2.6 per cent per annum on the ."n =,
ton of the carrier properties ii'aus
the interstate commerce comulission -,
the recent rate case, an amount A Nv
sufficient to pay the Interest VI '''''
outstanding bonds.
Roads Earnings Far Below Neason~'''
Returns r.
1t is manifest, from this showins.
that the rate Of return OF 51a or -.
cent for the first two years AFTER MAJ ~
/, 1920, fixed in the transportation ~,
as Il minimum reasonable return ups
railroad Investment, has not heen e'.
Appropriated, much less reached: Ply ,s
that the present high rates aeeoTa'nev
are not due to any statutory suafans
of earnings, for there is no such su'
antee. =. il.
In analyzing the expenses when na't
largely brought about this s!tual!on, 49,
becomes evident that by far me 80 "a
est contributing cause IS the LABOR ''''.
Today the raiiroad. pay ouy 10 A..
approximately 90 cans on the u'n -.r.
they receive for transportation .Hs
vices, whereas IN 1919, 10 ce,-ts Oh '1'
dollar went to labor. ,o,,
On the first tay of January ~ =;
when the govern ent TOOK oh4lsc .S W.
wages through the AdamSon atI, ~.
labor cost Of the railroads had nor oa a s
ceeded the sum OF about 81, 468 IN"s.,
annually. In 1870, when goverh'ueHs..'
authority made the last wage llcros-
the labor cost of the RAILROADS W..
about $3,69S, 100000 annually, or II s' ~
tinued throughout the year inste.u ".
tor the eight months during when 49,
wage increases were in effect the mUv ,.
cost, on an annual basis. would ~ n nno
been largely in excess Of $3.9ooooo'o0...