Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1921-11-12
RAILROADS PLAN TO
GET RATES DOWN
proDose TO Reduce Wages and
Return All the Saving by Re
duction in Charges.
FULL TEXT OF PROPOSAL
Statement by Thomas OeWitt Nuy'er'
Chairman Of the Association OF
Railway Executives, on the
Situation.


tober IA. 1921, Of the presidents OF
nearly all the leading railroads IN tha
country. Mr. Thomas Dewitt tu!ief'
chairman OF the Association OF Rah'
way Executives, made the following
statement
At meeting OF the Association OF
Railway Executives today, II WAS &C.
ternnined by the railroads OF the Unit
ed States. TO seek 10 bring about
sesuction in rates. and as a means
~ that emf to seek a reduction IN
nressrt railroad wages which have
compelled maintenance Of the present
rates.
An application ill be made immedi'
stely to the United States railroad Ia.
Dor board for reduction IN wages OF
train service employees sufficient Ia
remove the remainder OF the increases
made by the labor boards decision OF
July 20, 1920 (Which would involve
further reduction Of approximately
ten per cent?, and for reduction IN
the wages Of all other classes OF RAN
road labor TO the going rate for such
labor in several territories where the
carriers operate,
To Reduce Rates as Wages Go Down.
The foregoing action Is upon the un'
derstanding that concurrently Win
such reduction In wages the beneflt OF
the reduction thus obtained shall, with
the concurrence of the Interstate Com
MERGE Commission, be passed on TO
the public in the reduction OF existing
railroad rates. except In so far as this
reduction shall have been made In the
meantime,
The management have decided up
on this coul Sc In view Of their reallsa
ton OF the fact that the wheels OF IN
dustrial activity have been closed
down 10 a point which brings depres
sion and distress TO the entire public
and that something must be done Il
start them again In operation.
The situation which confronts TIT
railroads is extremely critical Tn
railroads in 1920 realized a net rail-
way operating income OF about F62
600 900 upon a property investment o
over $4,000 100000 and even thi
amount OF s62 100000 included bac'
mail pay for prior years received from
the government of approximately s5i
600 600 thus showing, when the ope'
atoms OF that year alone are consoles
ed, an actual deficit before maxim
any allowance for either interest Q
dividends.
The year ended In serious depre
sion in all branches OF industry, and
marked reduction Of the market d
mand for and the prices CT basic cor
modities, resulting In very seTiot
falling off In the volume of traffic.
Roads Forced to Defer Maintenance
In this situation. a policy Of the mo
rigid economy and OF pOstponins az
cutting to the bone up keep Of q
properties was adonted by the "a
roads. This was at the price Of ne
lecting and for the time deferriI
work which must hereafter and il q
near future be done and paid for Tt
Ia illustrated by the fact that. as
September Is, 1921, over l6 per cel
or 374,431 In number, OF the freig
cars OF the carriers were In bad ord
and needing repairs as against nj
mai of bad order cars of not mo
than 100. 900. as Il further illustrat
by the deferred and inadequate ma
tenance of other equipMsn and
roadway and structures.
Even under those conditions. a.
with this large bill charged up agar
the future. which must soon he p
vided for and paid, IL the carriers a
10 perform successfully their trsl
portation duties. The result of ope
tions for the first eight months Of q
year. the latest available figures. h
besn at a rate OF net railway Operati
income. before providing for inter,
or dividends, amounting TO only
per cent per annuna on the valuation
the carrier properties made by the
terstate Commerce Commission in I
recent rate case. an amount not s
fic'ent TO pay the interest on tn
outstanding bonds.
Roads Earning Far Below Reasona
Returns.
Il Is manifest, from this showi
that the rate Of return of 5i2 or s
cent for the first two years at
March /, 1920, fixed in the trsnspol
tion act as minimum reasonable
turn upon railroad investment, has
been even Appropriated, much
reached: and that the present b
rates accordingly are not due to
statutory guarantee OF earnings,
there 10 no sueA guarantee
In analysina the s.s-n"es VII
have largely brought su0dt this =
sttss, u becomes evident that by
lhs largest e0ntrbgtInE cause lie
labor cost. Today the railroads
at 10 isbor approximately sixts "a
% ms dollar they receive t0r. tr:
toftstior services. whereas In 1918 Il
fsn,s on the dollar went 10 Labor
The lat day OF January. 1917, when
government took charge OF va
Through the kdamson Act the le
cost Of the railroads had not excee
the sum OF about $i,4tS goo zoe
rnalIy In 1920, when governme
authority made Tho last wage
crease. the labo. cost of the raIirc
was about SO COS 100000 annually
II continued throughout the year
stead OF for the e. mt mon. ms du
which the wage increases were IN
feet. the labor cost on Al annual b
would have been largely in eGces
$4,000 000, 900
An increase since the governn
>ook charge OF railroad WAGES IN