The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-10-18
ROADS CLAIM 1T Is
IMPOSSIBLE TO MAKE
REDUCTION in RATES
Turn Down Request of the Rail-
road Labor Board, Public
Group, for Lower Rates.
SAYS WORKERS HAVE NO
LEGAL RIGHT TO STRIKE
A General Reduction in Rates
Would Be Ruinous to Many
Railroads Is Statement.

A3N tN@ t@&3oCiaGGO FEG88sS
CHICAGO, Oct 17.-Presidents OF
the leading middle western railroads
ia joint statement tonight, turned
down as impossible" the proposal OF
the railroad labor board, public group,
that freight rates be reduced imme-
diately as a possible means Of avert
dng a general rail strike and charged
that the proposed waikout would be
a strike against the government, called
by the unions primarily for the pur-
pose Of nuliifying the transportation
act creating tho labor board"
BY coincidence the statement, which
reviews the railroad situation and the
causes Of the strike. was issued at all
most the same moment Warren s.
stone president OF the Brotherhood Of
Locomotive Engineers was giving out
q statement in Cleveland, telling why
tho big four brotherhoods and the
switchmen's Union OF North America,
had authorized q walSout on October
Both
The statement said in part:
THE thing It is proposed to strike
against IT'S the decision OF the railroad
labor board authorizing the reduction
of ~ per cent III wages which the rali-
ways put into effect on July A 1921.
There is at present no other possible
ground for strike by the railway
labor brotherhoods.
'Tho wage reduction put into effect
on July !, was authorized by the rail-
road labor board Therefore the strike
Il Il occurs win be against decision
made BY government body acting in
accordance with a federal law.
while the railways complied with
the decision II 1920 for an advance in
wages. the labor brotherhoods now
propose to defy the law and strike.
rather than accept a much smaller re-
duction IN wages
"The railway executives decided to
ask the railroad labor board for a fur
ther reduction ii wages and to give
tho public In the form of reduction of
rates all tho benefits OF any further
reduction in wages granted. This,
however, afforded tho brotherhoods
no reason for ordering strike. The
strike was taken on tho question Of
accepting the wage reduction already
authorized BY the labor board, not on
the question OF a future reduction.
''rhe railway employees have no more
legal right than the railroads would
have had TO refuse to grant the ad-
vance IA wages authorized in 1920 by
the labor board"
Concerning the labor board public
group proposal to cut rates imme-
diately, the statement said:
'Tn asking for a further reduction
IN wages IN order that they may be
able to grant the public reductions in
rates. the railroads are asking only
dn accordance with the laws and in
obedience to an insistent public de-
mand that they SHAH create conditions
which viii enable them to reduce
rates"
"A general reduction in rates with
out a further reduction in wages
would be ruinous TO many railways.
Thus far in the year 1921 the railways
have earned q net return Of only &c
per cent, and, although the net earn
ingS have increased recently owing |
largely to the recent reduction in |
wages. a general reduction az rates
without a further reduction in wages
would put the railways back in a very
precarious position financially