Mohave County miner and our mineral wealth., 1921-05-06
SANTA FE STATES REASONS
 FOR INFRINGEMENT

In conference with it's employees about wage reductions the Santa Fe Railway System, through it's man. agers, has laid bare good many of- flee secrets in order to give workers all the facts that are available on the subject.
 For instance: On the basis of the Santa Fe's annual financial require ments to take care of taxes, fixed charges, and other obligations, the railroad ought to have net earnings of approximately 45,O00,000 per year, or an average of $3,750,000 per month. Does it have such earnings? It does not, the company's managers say. The amount of the net revenue re- quired for the three months ended January 2S, 1921, was $11,250,0O0, while the actual net revenue in that period amounted to only $4,11S,0OO, which is scarcely enough to pay for three months proportion of taxes and rentals, leaving nothing for fixed charges and other obligations of the company. That is what the com pany's officers told the employees to show the need of retrenchment.
 Without taking dividends into con- sideration at all, the Santa Fe was op- erated in February at loss of more than $1,300,OOO, the managers declar- oJ Mot n Jo1lor 1yoc aarpod for in terest on bonds or for surplus to carry on business or to sustain the con- pany's financial standing. In the two preceding months, December and Jan uary, owing to the market decline in business and the abnormal wages a somewhat similar situation prevailed, In December the net operating in come amounted to only $1,124,335, which was barely sufficient to pay in- terest on bonds and in January there was a deficit of $35.171. Taking the two months together there was not sufficient earned to pay the interest on bonds and nothing for dividends or surplus.
 Here is another bit of inside irfor- mation: On April IA the number of empty cars on the Santa Fe was 31,- O75, which means that approximately 43 per cent of the freight cars owned by the railway which ought to be earning revenue are tied up and earn ing nothing. In the eight months ended November 30, 1920, the average number of loaded cars offered for movement was 4,128 per day, and in the next four months ended with March 31, 1921, the average was 3,460 per day, a decrease of approximately 16 per cent. In the months of Jan uary, February, and March, 1921, the number of loaded cars offered for movement was an average of 3,431 per day, against an average of 4,18S per day in the same months of 1920, a decrease of IS per cent.
 The Santa Fe told its employees 1t could not operate and continue to pay the high scale of wages established during and after the war. From 1917 to 1920 the payroll of the Santa Fe increased nearly 116 per cent, the av- craze yearly wages of employees in- creasing approximately 6s per cent in that period.
 At the present time approximately 60 cents of every dollar that the rail road receives from operation is paid out in wages. The remaining 40 cents is not sufficient to buy fuel and other materials and supplies and pay taxes, and other obligations.
 Comparing September, 1920, with February, 1921, operating revenues show decrease of approximately $5,450,000, or about 25 per cent. Op- erating expenses, taxes and rentals in the month of February, 1921, eX- ceeded the operating revenues by. $298,832, and for the months~of Jan uary and February the operating ex- penses, taxes and rentals exceeded the operating revenues by $334,OO4. Thus it cost the Santa Fe more than one dollar in expenses to earn dollar in revenue in those two months without considering it's fixed charges and oth- CT obligations.
 The Santa Fe takes the position that the period of readjustment has now come, and as the cost of living has been on the downward scale for some months, it is obvious that the