New-York tribune., 1921-10-15

%"N NN>SI IAiVH tt tfc pleCt-WOTh VlNeI
sll e rules dealt with minor and
technical shop practices.
Az amended. Rule No. reads:
"Uight hours shalt constitute
days work. All emp oyecs. cDming
under the provisions o tnLs agree
ment- except as otherwise provided
IN TINS schedule of rules CT as may
h re@ ter be legally established be-
tween tie carrier and the employees,
Sh.l. ne paid on the hourly basis
This RUE is intended to remove
the inhibition against piece work
ru'a = of the shop
crafts national agreement and to
l>....-- sos ,..esttul [. ue ken up
fNt meg et.-N5n on any individual
-'.a .lroad III the manner prescribed by
the transportation act"
Statement of Executives
The statement given out by Mr..
Cuyler follows:
80 q meeting of the Association OF
Ri w1y Executives to-day, it WAS de-
term ned tv the railroads of the United
states to seek ty bring about reduc-
SION in rates. and as a means to thnt
enG t seek reduction in present rail
road wages which have compelled main
ten nee Of the crescent rates.
mcdiately to the United Site Rail-
sd Dor Board for reduction in
waees of train service emp oyees suffi-
c.ont to rem I've tie remainder Of the
Increases m9de b. the Labor Boards
decision of July 20, 1920 (Which would
!nvclte further reduction of approx
N toy 10 per cent?, and for reduc-
ton IN the wages Of all other classes
o. rai'r I'D labor 70 the going rate for
such labor in tie several territories
Nheiv the. c9rrIerS operate.
'Tse foregoing action is upon the
undcr standing tnHt concurrently with
such reduction IN wages the benefit OF
the roGuct or thus obtained shall, with
the concurrence of the Interstate Com
tnct,e Comm ssion be passed on to the
pub &c in the reduction of existing raj
rod rates. eXccrt 50 far rs this re-
ducti u shall have been made in the
mean time
The managcments have decided upon
tioQ of the fact that the wheels OF in
.dustraI activity have been slowed
down to point which brings depres-
sion and distress to the entire public,
snd that something must be done to
start them again in operation.
"The situation which confronts the
sair ads is extremely critical. Tie
railroads in 1920 realized net rail
way operating income of about S62,-
100000 upon q property investment o.
over $4,000 100000, and even this
amount Of $4,000, 900, including back
ma pay for rrior years rece we'd from
the government, of approximately S54,-
100000, shows. when the operations Of
q at year alone are considered, an
actual deficit before making any al
lo%ance for either interest or divi-
dends.
Falling OF in Traffic
"Thc year ended in serious depres-
sion in all branches of industry and in
marked reduction of the market de
mand Tor and the prices Of basic com
modit'es. resulting in a very serious
falling off in the volume of traffic.
in this s tuetion a policy Of the
mtst iigid economy and of postponing
an cut ng to the bone the upkeep Of
the properties was adopted by t rail
roads. This was at tie price Of neg
lect!ng ana. for the time, de.erring
VorA which must hereafter and in the
near future be done and paid for. This
i Illustrated BY the fact that, as of
September Is, 1921, over 'l6 per cent,
or 3I4 f3l in numoer, Of the freight
ears OF the carriers were in bad order
and needing repairs, as aga nst a nor
NAL Of ad order cars Of not more than
100000, as is further illustrated by e
De erred and inadequate maintenance
= o. er equipment and OF roadway
and structures
Even under these conditions and
with this large bill charged Up against
ne fu .pre-which must soon be pro-
Yided for and paid if the carriers are
to per -orm successfully their trans
portatie duties-the result OF opera
tons for the first eig't months Of this
Fea1 he latest availab figures, has
been at rate of net railway operating
income, before providing for interest
or dividends, amounting to only 90
per cent per annum on The valuation
Of the carrier properties made by the
lnters ate Commerce Commission in
the recent r2te case, an amount not
suf,'cient tc pay the interest on their
outs arding bonds.
at is manifest, from this showing,
that the rate of return Of X or per
cent for the first two years after March
y 1920, fixed III the transportation act
as a minimum reasonab G return upon
railroad investment, has not been even
approxmated, much less reached; and
That the present high rates, accord
fngly, are not due to any statutory
guaranty Of earnings, for there Is no
such guaranty.
"ln analyzing the expenses which
have largely brought about this stu-
alton it becomes evident that by far
the largest contributing cause is the
labor cost. To-day the railroads pay
out TO 'abor approximately 60 cents on
the dollar they receive for transporta-
tion services, whereas in 1916 40 cents
on the do ar went to labor.
Labor More than Doubled
~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 ex-
ceeded the sum of about $l,468, 5000
annually. In 1920, when government
authority made the last wage increase.
the labor cost of the railroads was
about S3,G93 ,000,0 annually, or, If
continued throughput the year instead
Of for the eight monrns during which
the wage increases were in effect, the
labor cost, on an annual basis, would
have been largely in excess of $780,
600 ,O00-an increase, since the gov
eminent took charge of railroad wages
in the Adamson act, Of approx .mately
s2,4 100000 annually. IN the light
Of these figures, it is manifest that the
recent reduction o wages authorized
by the Labor Board. estimated at from
10 to l2 per cent, IN no sense meets
or solves the problem of labor costs
8: n no way makes it possible for the
railroads to afford q reduction in their
re tnues.
Indeed during the last year there
n ,e been between four and FIVE thou