The Hayti herald. (Hayti, Mo.) 1908-1922, 1921-11-04
Propose to Reduce Wages and
Return Ill the Saving by
Reduction in Charges.
FULL TEXT OF THE PROPOSAL
Statement BY Thomas De witt cuyier,
ChairmaRs Of the Association OF
Railway Executives, on the
Situation.

the country. Mr.. Thomas De Witt
Cuyler, chairman OF the Association
of Railway Executives, made the fol-
lowing statement:
"At a meeting OF the Association
OF Railway Executives to-day, it 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 be made I'M
mediately to the United States Rail.
road Labor Board for 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 further re-
duction 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
eral territories where the carries op-
crate.
To Reduce Rates as Wages Go down.
The foregoing action Is upon the
understanding that concurrently with
such reduction in wages the beneht
OF the reduction thus obtained shall.
with the concurrence of the Interstate
Commerce Commission, be passed on
to 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
unon this course in view of their
of Industrial activity have been closed
down to a point which brings depres'
sion and distress to the entire puDnc
and that something must be done to
start them again in operation.
The situation which confronts the
railroads is extremely critical. the
railroads in 1920 realized net operat
ing income of about $62,0OO.OOO, upon
a property Investment OF over $lS.-
Doc. 900 900, and even this amount OF
s62. 900 900 included back mail pay for
prior years received from the govern.
ment of approximately. $64.000.O00,
thus showing, when the operations
If that year alone are considered. an
actual deficit before making any al
Iovance for either interest or divi-
dends.
The year ended in serious depres.
sion in all branches Of industry, and
in marked reduction Of the market
demand for aNd the prices of basic
commodities, resulting in q very seri-
GUS falling of in the voume Of traffic.
Roads For To Defer Maintenance.
In this situation, 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
16 per cent or 374,431 in number, OF
the freight cars OF the carriers were
In bad order and needing repairs. as
against a normal OF bad order cars OF
not more than 10000: and az 10
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-which must soon be pro
vided for and paid II the carriers are
tn perform successfully. their trans
narration duties-the result Of opera
tiorss for the first eight months oi
thissyear. the latest available figures
has.b een at a rate OF net railway
opefGtiug income, before providing for
interest or dividends, amounting To
only y.6 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 5R or
per cent for the first two years afte
March /, 1920, fixed In the transporta
tation act as a minimum reasonaDi'
return upon railroad investment. ha
not been even approximated-muci
less reached; and that the presen
high rates accordingly are not du
to any statutory guarantee OF earn
ings. for there is no such guarantee
In analysing the expenses whicl
have largely brought about this si'
uation, 1t becomes evident that by ia
the largest contributing cause Ia tn
labor cost.
To-day the railroads pay out .
labor approximately 6oc on the 40
lar they receive for transportstio
.eryices, whereas In 1916. 40c. ON IN
dollar went to labor.
On the first day Of January, III
when the government took chars
a wages through the Adamson &C
- ishor cost OF the railroads h
mot exceeded the sum OF about p
- 80 600 annpaIl9. In 1850 whe
governmental authad1vznaAs ~ H.
49, Increase. ~ - cost Of u
rs1lgssds was apoN ~ 49, .
- or. II co1tjpsed tmvpGnos
~ xoar instead n Tor the slgl
DmRs during which the wAess Y
60 we're In eject ~ lasSr 90