Cheraw chronicle. [volume] (Cheraw, S.C.) 1896-2005, 1921-10-20
RAILROADS FORCING Deficit
Railway Executives To Consider Pro
posaI To Slash Freight Rates
AS Rail Pay Drops =,

Chicago.-A proposal to meet all
future reductions in the wages Of rail-
road employees with corresponding de-
creases in railroad freight rates is
to be presented to the Association Of
Railway Executives at its meeting
here soon, it was announced.
The proposition is to be submitted
by a special committee Of railroad
officials which last week conferred
with government officials at Washing,
ton, it was stated. 80.
This announcement was made by
a railroad official here for the con-
ference. He stated that the commit
tee had prepared a report embodying
the plan.
The proposition to pass all future
decreases in operating costs along to
the public, it was stated, was in line
with the policy of the railroads to
make freight rate reductions and at
the same time allow the railroads to
operate at profit. Freight rate re-
ductions are impossible so long as
operating costs remain unchanged,
this official asserted.
The railroads emerged from the war
facing huge deficit, he said. The
per cent profit provided for by the
transportation act failed to bring any
material belief because Of the de.
crease in business, and had the rail,
road labor board not authorized a re-
duction. in freight rates because OF
the decrease In the prices of other
commodities. They have, however,
been unable to effect such reductions,
he said, because Of the fixed operat.
ing costs, this applying to the arbi.
try fixing of wages and to the limita
tion placed on the number Of hours EN-.
ployees can work and the amount OF
work that can be done.
To effect reduction of freight
rates and at the same time maintain
present revenues for the railroads,
the plan announced recently was for
mulated. Increased business, brought
about by lower freight rates, is expect
ed to provide the increased revenue
necessary for the railroads to operate
at a fair profit, 1t was stated.
The plan, If approved by the ex.
ecutives, will be presented in an Off
cial announcement by executive Off
cials, it is expected. Those in close
touch with the situation recently
pointed out that even If the proposal
become effective at once, some time
would elapse before freight rates
could be reduced. To decrease rates
the railroads would have to go through
almost as much formality as to raise
them, 1t was stated.
A conference with employees would
be necessary; and If the employees
refused to accept the proposed reduc.
tions, the case would then be placed
before the railroad labor board, under
present provisions. If the railroad
labor board authorized the requested
reduction in wages, the interstate
commerce commission then would be
required to pass on proposal to re-
duce freight rates.
Executives of the conductors, en-
gineers and firemen's brotherhoods
met behind closed doors again, in
continuation of conferences to deter
mine what action shall be taken on
the membership vote favoring strike.
The recent discussion, it was said,
hinged on whether the vote formal.
ly should be communicated to the
railroad officials. According to broth.
erhood heads, it appeared likely that
no action calling for a walkout would
be taken Immediately.