The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-01-21
SAYS RAILROAD
WAGE MUST BE
cur VERY SOON
Dunn Claims Lines
Cannot Edrv, s Per
Cent at Present.

NcW 1VEk, J&us FL. railway
wages should and must be sub
stantially reduced sooner or later,
and steps toward their reduction
should be taken in the very near
future. Samuel o. Dunn, editor OF
the Railway Age, told the New
York Railroad club In an address
here last night.
Experience since the recent ad-
vances in rates were made have
demonstrated, MIR. Dunn contend
ed, that even with q maximum
traffic the railways cannot earn 6
per cent on the valuation fixed by
the Interstate commerce commits
sion with the present passenger
and freight rates and the present
wages. They are not now han
ding a maximum business. Their
freight traffic has declined 80 per
cent since October, and on Jan. 8
they had q net surplus Of 257. 900
cars.
The demonstrated inability of
the railways to earn the return ex-
pected even when handling q max
imum trafiic," Mr.. Dunn said, "and
the tremendous decline Of traflic
are creating q serious situation to
which not only railway managers,
but the railroad labor board, the
interstate commerce commission
and congress must give early at
tention.
I'm September the railways
earned only 81 per cent Of the ex-
pected net return; in October, only
I77 per cent; in November, only 5S
| per cent. The total net operating
income they should have earned for
those three months to have contrib
uted their share toward q per
cent annual income was $324,417,-
900, while the amount actually
earned was only 21s,500,000. At
this rate they would earn only 4
per cent; and these were months
of large business. The interstate
commence commission has recog-
nized the principle that the rail-
| ways must earn 8 per cent to- en-
able them to expand their facilities
| sufficiently to give the public ads
quate service.
12s Per Cent 7FuroI -s''-
The present average annual
wage Of railway employees for work
ing eight hours . day ID 125 per
cent greater than it was in 1914 for
working 10 hours day. Under the
national agreements made by the
governments railroad administra-
| ton with various organisations OF
railway employees, many millions OF
dollars are being paid annually for
what is not done. In 1914 the rail-
ways had 100000 employees and
paid them 1887 100000. In 1917
they had about the same number Of
employees and paid them $1,740.-
900, 900. Today, because Of the es-
tablishment of the eight-hour day
and the advances lin wages which
have been granted, they have about
1850 900 employees who are being
paid $500, 100000 . year. While
the increase in the average annual
wage since 1914 has been about
l125 per cent, the increase in the
total pay roll has been about 17(
per cent.
There is much complaint from
many sources regarding present
freight and passenger rates. The
necessity for the present rates II
created chiefly by present railway
wages. The farmer, shipper anc
Iconsumer are deeply interested II
the question of railroad costs. be-
I cause the cost Is what makes thu
rates which all the public have t.
nav directly or indirectly; and tn
railway pay roll at present const
tutes 60 per cent OF all operating
expenses"