Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-10-15


in statement of some 1900 words tc
viewing the financial condition Of tn
roads, madc the situation even more
tense than had been through d Gd$ IN
which one rumor after another oi
strikes, wage and rate cuts had been
prevalent.
Piece Rate System Restored
! An announcement from the labor
board that the piece rate system Of
pay had been restored also added to
the excitement and brought reports
Of dissatisfaction from the Unions
Union chiefs were dubious as to how
their men. so per cent of whom have
authorized n strike rather,than accept
the recent 12a percent wage lcduc-
tons would take the various an
nouncements of the day.
! The roads declared their action was
being taken with the view of lower
/ ing freight and passenger rates in the
future.
1T was determined by the rail-
| roads of the United States to seek TO
bring about a reduction in rates" the
statement said, and as a means to
that end TO seek a reduction in pres
ent railway wages which compelled
maintenance of present rates
An application will be made i'm
mediatcly to the United States rail-
road labor board for a reduction in
wages of train service employees suf
ficient 10 remove the remainder Of
the increase made by the labor board
decision of July 20, 1920, (Which
would involve a further reduction Of
approximately 10 percenD. And for
a reduction i'll the wages of all other
classes of railroad labor to the rate
for such labor in the several territor-
les where the carriers operate.
THE foregoing action is upon the
understanding that. conCurrently with
such reduction in wages, the benefit
OF the reduction thus obtained shall,
with the concurrence of the interstate
commerce commission. be passed on
10 the public in the reduction of eN-
isting railroad rates except insofar as
such reduction shall have been made
IL the meantime.
THE railroads have decided upon
his course in view of their realZa-
ton of the fact that the wheels of
Industrial activity have been slowed
Gown to a point which brings depres-
sion and distress to the entire PUBLIC
and that something must be done to
sl5 TT them again in operation"
The statement then gives long re-
view of railroad finances and declares
that sit is manifest that the recent
reductions of wages authorized by the
labor board in no sense meets orisolvas
, the problem Of labor costs apf in no
! way makes ii possible for the rail,
roads to afford a reduction III their
revenues"
The statement points out that MANI
roads voluntarily have made freight
rate. reductions, and adds that the
rate of return earned in 1920 on the
basis of investments was only 0.32
per cent
The union leaders left the confer
ence with the executives after being
closetcd with them two hours. but re-
fused to discuss tho proceedings,
Late tonight Mr.. Lee said that thu
district chairmen Of the unions would
receive their final instructions 20
morrow as to whether there would be
a strike. Asked point blank if Il
: strike would he ordered he said:
Il will not say definitely, bue were
l a betting man ] would place ms
money that there will be a st-lkc.
Regardless of what action is taken.
the final decision is only a matter of
the rising and setting of a few suns.
The district chairmcn will receive
their final orders tomorrow and then
viii lgo home. My chairmen already
have been sent home and will receive
their orders by mail"
Asked concerning the reports that
n strike effective October 80 had been
decided upon. Mr.. Lee replied
Il won't answer that definitely. but
if someone has told you thai they
have hit lot of nails on the head
perhaps they are not exactly right,
but they are driving close"