The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1921-10-28
Propose to Reduce Wages and
Return all the Savings by
Reduction in Charges
FULL TEXT OF THE PROPOSAL
Statement BY Thomas Dewitt Cuyier,
Chairman Of the Association OF
Railway Executives on the
Situation

Following meeting In Chicago,
Or' Der H. 1ssi. Of the presidents Of
hearty nil the leading railroads In the
country. Mr Thomas Dewitt cuyter,
chairman Df tie association ~ railway
executives. made the following state.
meat:
al meeting ~ The association OF
railway executives today II wns deter
mined by the railroads Of the United
States. 10 seek to bring about rednc-
ton Ia rates. and % "A means % that
end ia seek a reduction IN present rail
road wages which have compelled
maintenance OF the present rates.
AN application viii be made I'm
medinteiy 10 IN. United States railroad
labor board for reduction In wages
II trim service employees sufficient
to remove the remainder ~ the in
rrenses made By the labor board decis.
ion Of July ~. 1870. (which would In.
voiye further reduction Of approx.
mntely ten per cent?. and for re-
.iuction In the wages OF NIL other
rite for such labor In territories where
he carriers operate"
To Reduce Rates a. Wages Go Down
The foregoing action - upon the un-
derstanding that eoneurrently with
such reduction In wages the benefit ~
the reduction thus obtained shall With
the concurrence Of the interstate com
merce commission. be passed on to the
public In the reduction OF existing rail-
road rates. except insofar ms this re-
duction shall have been made In the
meantime.
The Arrangements have decided upon
this course In view Of their realization
Of the fact that the wheels ~ Industrial
activity have been closed down Ia n
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 mo
railroads Is extremely critical. The
railroads In 1870 realized a net raii.
way operating income Of about S62.-
WO.UU upon n property Investment OF
over SlY.00O.OOO.UO and even this
amount OF sa:.OOOWO Included hack
mail pay for prior years received from
the government Of approximately x6i..
UDo.0OO thus showing. when the opera.
lions Of that year alone are considered.
an actual deficit before making any
allowance for either interest or divi.
dends
The year ended In serious depression
In all branches OF Industry, and In
marked reduction of the market de-
mand for and the prices of basic com
modities. resulting IN very serious
falling off In the volume of traffic
Roads Forced TO Defer Maintenance
In this situation policy OF the most
rigid economy ana Of postponing aud
cutting to the bone the upkcep OF the
properties was adopted by the rail-
roads. This was at the price OF neg.
lccting and for the time deferrlng work
which must hereafter and In the near
illustrated by the fact that. Ms OF Sep.
temher II. 1921. over III per cent or
3T4.i3 In number. of the freight cars
of the carriers We're In bad order and
needing repairs, as against n normal OF
bad order ears of not more than lGn-
deferred and inadequate maintenance
Of other equipment and OF roadway
and structures.
Even under these conditions and
with this large bin charged up ngalns,
4 the future. which must soon be proyId.
cd for and paid IL the carriers are To
perform successfully. their transporta.
/ ton duties, the result of operations for
/ the first eight months of this year. the
latest available figures, has been at a
before providing for interest or divi.
/ dcnds, amounting 10 only 90 per cen,
per annum on the valuation OF the
carrier properties made by the inter,
state commerce commission In the re-
I cent rate ease An amount not sufn
Client to pay the interest on their out
standing bonds
Roads Earnings Far Below Reasonabl,
Returns.
II is manifest. from this showlns
that the rate Of return az als or 81,
ser cent for the first two wears aftci
March /, 1921, liked Ia the transporta
,iun act as a minimum reasonable re
mru upon railroad Investment. has 40
baen even yppraX.maicj much les
reached; ana that the present hlrl
rates acco.d.nsls are non 1lc 10 oul
statutory guEan'c" az earnings 20
ihere j. no such gusrantee
in analyziae lhf SNpVl>,,S Wbjcl
have lnrss'y hfea~'u about .thls sltua
ton. It becomes e,i,kE; thai ny lar th
largest Coutci6ufinc cause is the labo