The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1921-11-18
Propose to Reduce. Wages and
Return All the Saving by
Reduction In Charges.
FULL TEXT OF THE PROPOSAL
Statement by Thomas de Witt cuyier,
Chairman Of the Association Of
Railway Executives on
the Situation.

way Executives, made the following
statement:
Al meeting Of the Association Of
Railway Executives today. IL was de-
termIned by the railroads OF the United
States, to seek 10 bring about a redue-
tion in rates, and as means to that
end to seek a reduction In present
railroad wages which have compelled
maintenance Of tae present rates.
An application viii be made lnme-
dlatoly to the United states Railroad
Labor Board for reduction in wages
81 train service employees sufficient 10
remove the remainder or the Increases
made By the Labor Boards decision %
July 20, 1920 (which would involve a
further reduction Of approximately ten
per cent?, and for reduction IN the
wages Of all other classes Of railroad
labor to the going rate for such labor
in several territories where The car
rlers operate
TO Reduce Rates ne Wages Co Down
The foregoing actloR Is upon the an.
dersiandirg that concurrcntly with
such reduction IN wages the benefit ~
tie reduction thus obtained shall, with
The concurrence of the Interstate Com.
mcrce Commission. be passed on 70 the
public In the reduction ~ existing
railroad rates, except IN so far az this
reduction shall have been made IN the
meantime
The arrangements have decided upon
this rourse IN view Of their realization
Of the fact that the wheels ~ iudns.
trial activity haze hcou closed down 10
point which brings depression ard
distress 10 The entire public. and That
something must be done Ia start them
again IN operation
The situation which cnnfnpts the
railroads n extremely crulcai Tie
railroads IN 1890 realized net railway
operating income of about SCI O0p0d0
upon property Investment % over
sl9oln000000. and even this amount
OF Sc million Included back EHll pay
for prior yeats received from the Roy-
ernmcnt ~ approximately SGtOn0uo0,
thus showing when the operations ~
that year alone are considered an
actual deficit before making any ~.
lowance FOR either interest or GiYi.
dcnds.
The year ended In serious depression
n Oh branches Of industry. aud IN
marked reduction ~ the market de-
maud for and The prices Of basic com.
modltles, resulting in very serious
falling IN IN the volume or traffic.
Roads Forced TO Defer Maintenance
IN TIL. Situation. fOilcy Of Tie most
rigid economy and ~ postpeHng and
cutting TO the bone the upheep Of the
properties was adopted BY the mil.
fontls This was ~ the price % neg.
iecilng and for the time defcrring
work which must hereafter and in the
near future he done and paid for This
IS Illustrated by The fact that. as or
September IS 1921, over 10 per cent
or 314,I3i IN number Of the freight
cars ~ the carriers were IN bad order
and needing repairs. al against nor.
NAL " bad order cars " not more
than 10000 as Is further illustrated
by the deferred and inadequate mnln.
tennnce OF other equipment aud of
roadway and structures
Even Under those conditions. aud
with this large bin charged up against
the future, which must soon be pro.
Vlded for aud paid II the carriers are
to perform successfully their transpor-
tation duties,-the result Of operations
for the first eight months Of this year.
the latest available figures, has been
az rate Of net railway operating m.
come, before providing for interest
or dividends, amounting 10 only 20
pF cent. per anuum on the valuation
Of the carrier properties made by the
Interstate Commerce Commission IN
the recent rate case, an amount not
sufficient 70 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 5h or G per
cent for the first two years after March
/, 1920, fixed In the Transportation Act
as a minimum reasonable return upon
railroad investment. has not been even
northumberland less reached
and that the present high rates accord
ingly are not cue to any statutory
guarantee OF earnings, for there is no
such guarantee.
IN analyzing the expenses which
have largely brought about this sltua-
ton, II becomes evident that by far
| the largest contributing cause "a the
tabor cost.
To-day the railroads pay out to labor
approximately 00c on the dollar they
receive for transportation services.
whereas in 1916. 40c on the-dollar went
to labor.
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
tded the sum Of about 81 ,46S, 000.-
900 Annually, ~ 1920. when govern