The Challis messenger. (Challis, Idaho) 1912-current, 1921-12-21
BALBOA! LII. Plan n |
GET RATES DOW
Pf'''; =, to Retae' Wages and p,,
All The saTinl By a.au:,i,, ''''
in Charges
FULL TEXT OF TIE pso.,,.,
Statement by Thons. n,
Chairman OF the Associsti.ss a!sl
Railway Ex2cu.lyeso."
Situation

tober II, 1921, Of the prpaiS Isv' VI
nearly all the leading r5ilroodS u'
country, Mr.. Thomas Dewitt r ~ %,
Chairman of the Association If e
way Executives, made the foro Aa
statement: ,'"o"laa
AT a meeting Of tie associate,
railway executives today, it was d..
mined by the railroads of the hwy s,
States, to seek to bring about a rsa.
+; ton In rates, ana as means 10
end to seek a reduction in presant s
ROAD wages which have comnsl,s
maintenance of the present ratos
An application will be made m,,.s
ately to the. United States rai,ro.a :.
Dor board for reduction in wa,a,
train service employees suffcen,
remove the remainder Of the incras,
made by the labor boards decislcn u
July 20, 1920 (Which would involvs
further reduction Of approxlmotpv "a,
per cent? and for reduction IN i.
wages Of all other classes Of ral,n.J
labor - the going rate for such lah,J
in several territories where the cal
riers operate.
To Reduce Rates As Wages Go Dow
The foregoing action is upon the nal
derStanding that cOucurreatly vii,
such reduction in wages the benefit d,
the reduction thus obtained shall, with
the concurrence OF the Interstate CON.
merce commission, be passed on to the 1
| public in the reduction Of existing rail-
! road rates, except in so far as this r.
! duction shall have been made in tie
; meantime.
The arrangements have decided upon
! this course in view of their realzatoa
of the fact that the wheels of industh.
! al activity have been closed down to 1
point which brings depression and dis
treSS to the entire public, and that
something must be done to start then
| again in operation. The situation
| which confrontS the railroads is ey
tremely critical. The railroads in 1920
realized net railway operating income
of about So, 100000, upon properly
investment 0f over Gl9,O0Q000 and
even this amount of sixty two million
| included back mail pay for prior yean
received from the government Of ap
proxrmtely $6i,O00,JQO thus showlas
when the operations of that year aoha
are considered, an actual deficit before
making any. allowance for either Inter
est or dividends.
The year ended in serious depression
in all branches Of industry, and
marked reduction Of the market De
mand for and the prices Of basic conf
modities, resulting in very serious
falling off in the volume Of trafhc.
Roads Forced To Defer Maintenance
In this situation a policy Of the mos
rigid economy and Of p0stponing anp
cutting to the bone the upkeep OF ta7
properties was adopted by the nl1
roads. This was ut the price OF nes1
lecting and for. the time, deterrinI
work which must hereafter and Ii lag
near future be done aud paid for. ,lls
is illustrated by TIE fact that, as VI
September -, 1921, over 10 per ceuI
or 374,4 49, in number OF the ffe'su]
cars of the carriers were in pau olus
and needing repairs, aS against lM1
mai of bad order cars Of uoi more 'la.l
100, 900, as is further illustrated ny Ia.
deferred and inadequate maihlenalss
of other equipment and OF foAus~
and structures. Even under those vOll
ditions, and with this large b.!l cI"ss
up against the futlre. when = m n'
soon be provided for and pau \ W.
carriers are to perform successiai1
their transportation dut.ei'-lhe "a. -aIs
of operations for the tirst eisa' sion~
of this year, the latest ayailaple H.
has been at a rate Of net raiiwa! ep,
ating income, before prolluihs ~, ,rl,
terest or dividends, amounting " ym
90 per cent per annum on the 's' a. r
ton of the carrier properties I'aes N N
the Interstate commerce eoiaiiiiss.ig rot
the recent rate case, IN allioun' ,hslr
sufficient to pay the interest Oh ''''
outstanding bonds. 81
Roads Earnings Far Below hea'0A
Returns
1t is manifest, from tAis sllosm nsr
that the rate of return o. ~ VI Nm
cent for the first two years ailer T. act
l, 1920, fixed in the TRANSFORMING IMAM nm
as II minimum reasonable return a aron
railroad Investment, has not been end ,ud
Appropriated, much less reacheu,, ,n 81"
that the present high rates aecoiu anisa
are not due to any statutory s'a'" '.,sr.
of earnings, for there Is no sucn
.antee. .- 90
In analysing the expenses Wiiien ,. Ill 4
largely brought about this situa.'yI a,t.
becomes evident that by far ule .s.s
est contributing cause is the lao0' .,,,
Today the railroads pay out 10 i 'lus
approximately GO cents on INC ser
they receive for transpor'rhon, N.
vices, whereas in 1916, 10 cents y" =
dollar went to labor. mi,
On the first day of January, Az, a
when the government took ch', I'M
wages through the AdamSoh n.S Ok
labor cost of the railroads hau n noo M
ceeded the sum of about 81 'tooo0snta
annually. In 1870, when so's'tih n,.aase
authority made the last wage 'n,, Va
the labor, cost of the raliroau,s con
about $3,80S, 0OO, 900 annually, Old G d
tinued throughout the year inS s,ob N,
Tor the, eight months during Wnles ,,ha
wage increases were in effect ". Nav,
cost, on an annual basis. Wo won oOOl