The Challis messenger. (Challis, Idaho) 1912-current, 1921-12-07
RAILROAD P[ANI1 |
GET RATES iliI
P'''': $. to to Reduce Wage: ,,l HI,
All the Saving BY Rst.:tj,, ny
In Charges \
FULL TEXT OF The pan,...
statement by Thoma. D..,,..
Chairman Of the AsssoI,t,.s. '''l
Railway Executive. go"
Situation

.oD o ~, iozl, OF the presidents !.
nearly all the leading railroads I y !
country, Mr.. Thomas Dewitt ca -
chairman Of the Association Of Ell
way Executives. made the ,o ~ as
statement: '''''H
At a meeting Of the associate. j
railway executives today, 1t was s.,..l
mined by the railroads Of the r,s',.1
States, to seek to bring about , ,.as.
ton In rates, and as a mem. "a y 4
end to seek a reduction in present MI
road wages which have conp.n.1
maintenance OF the present rat..
An application will be made imm.s
ately to the United States railroad :
Dor board for a reduction In war. \
train service employees suf6ciect Y
remove the remainder Of the ipcrss...
made by the labor boards decisIoo Il
July 20. 1920 (Which would inyo,. !
further reduction of approximately 4.
per cent? and for a reduction II H1
wages Of all other classes Of rail,a.d
labor - the going rate for such ~.
IN several territories where the N.
riers operate.
To Reduce Rates Az Wases O. M,
The foregoing action is upon the W
Outstanding that concurrenuy um
such reduction In wages the bennett 3
the reduction thus obtained shall Vii
the concurrence Of the interstate Con.
merce commission, be passed on 70 "
public In the reduction of existing NIL
road rates except In SO far a. this n
duchon shall have been made n u
meantime. /
The arrangements have decided mn
this course In view Of their realizstH
Of the fact that the wheels Of industt-
al activity have been closed down u
point which brings depression and ~
treSs to the entire public. and ~
something must be done to start th@
again in operation. The Mtuta
which confronts the railroads d d
tremely critical. The railroads In Ma
realized net railway operating inG11
Of about $62 100000, upon a propaQ
Of over $19,0O0,000,0W Ut
even this amount Of sixty two million
Included back mail pay for prior yea5
received from the government Of o.
proXinlattly $64, 100000, thus showing
when the operations Of that year alona
are considered, an actual deficit befnra
any allowance for either Inter
est or dividends.
The year ended in serious depresaun
In all branches Of industry, and "
reduction Of the market dsj
mand for and the prices Of basic conf
resulting in a very sefoa
falling off in the volume OF tralnc
Roads Forced To Defer Maintsnass'
In this situation a policy Of the ~
rigid economy and Of postponing ~
cutting to the bone the upkeep Of @1
properties was adopted by the naf
roads. This was at the price q Eel
Getting and for the time, defena
work which must hereafter ana ID ~
lear future be done and paid for ~
$ illustrated by the fact that y "
September Is, 1921, over IL pei H
)r 374,431 in number, OF the ira!
AIRS of the carriers were in bad osSa
md needing repairs, as against . su]
nal of bad order cars of not more ~.
go, 1000, as is further illustrated pa
deferred and inadequate malnlen
If other equipment and OF roaasu
md structures. Even under noss w
litions, and with this large OIL cp1I
Up against the fu1lre,-wh'ca III
loon be provided for and paio
are to perform successIa!
heir transportation duties,-1ns ~
Il operations for the first eignI no
4 this year, the latest avaiiaDIs l
Ias been at q rate OF net ranwa!
ting income, before providing aM a,|
crest or dividends, amounting 49,
.6 per cent per annum on tne ~. 4,
lon of the carrier properties in s,", i
he interstate commerce coahmlss ~
he recent rate case, an amour. Hi,
efficient to pay the Interest v"
bonds. -.
Roads Earnings Far Below
Returns
1t Is manifest, from TINS slV"
hat the rate of return OF o1s ~
ent for the first two years a1IeI ~ Il
, 1920, fixed in the transportauVI. M,
3 a minimum reasonable return 80
Investment, has not Dees ~
much less reacpsu, rdf
hat the present high rates accoiu uantss
re not due to any statutory Su e,sr
+ earnings, for there Is no SUN
ntee.
In analysing the expenses wll S.oo i
argely brought about this s''u .ss isre,
ecomes evident that by far ,uS ~
st contributing cause is the laoo' ~, y.
Today the railroads pay on, ~ doll9
pproxlmately 60 cents on ". L. -
hey receive for transporta!loun ~
ices, whereas in 1916, ~ cen~
Ollar went to labor. .ns
On the first day Of january, 10y
1hen the government took cna, ~
RACES through the Adamson ~ q.
ibor cost Of the railroads ha so nS1SN
eeded the sum Of about 81 4oosrial
nnually. In 1920, when go,.sr.aoa
made the last wage lu s. q
be labor cost of the RAILROADS. -. N
bout $3.69S, OOO.O 600 annually, OF ,ssS d
nued throughout the year in .s,ch ~
'r the eight months during w W.. hha
age increases were in effect lIs ~
Dst, on an annual basis, wo o InSoo0od
cen largely in excess Of $s'sooNU.