The Challis messenger. (Challis, Idaho) 1912-current, 1921-11-02
RAILROAD PLAN |
GET RATES mr.
Propose to Reduce Wage. i NJ
All the Saving BY R.a.,5,,
In Charges /
FULL TEXT OF the p.o,.l
Statement by Thoma. n.
Chairman Of the As,oe,..,..
Railway Executive. ."
Situation

tober IA. 1921, of the nra.,s
nearly all the leading railroad, \ !!
country. Mr.. Thomas Dewitt, -
Chairman of the Association
way Executives, made the ,s,,.
statement:
At a meeting OF the assoc,.,.
railway executives today, It wa, A..
mined by the railroads Of tho r...l
States, to seek to bring abou, -.
ton In rates, and as means IA Nj
END 10 seek "a reduction in preseo, III
road wages which have com,.s.1
maintenance of the present ra,e.
An application will be made imn..
ately to the United States railro.a !.
Dor board for q reduction in v.o.
train service employees suf6cisa, u
REMOVE the remainder Of the incr...3
made by the labor boards decisio.
July 20, 1920 (Which would iny0l,.
further reduction OF approximately s
per cent? and for reduction II 4.
wages Of all other classes Of railnxi
labor - the going rate for such ~
in several territories where the q.
riers operate.
To Reduce Rates 4, Vases G. n.
The foregoing acton is upon the =,
derstanding that concurrently I'd
such reduction in wages the benefit 4
the reduct on thus obtained shall Nh
the concurrence of the interstate Nn
merce commjss.Oii, DO passed on TO II
public in the reduction Of existing MI
road rates, except III so far as this n
duction shall have been made 10 u
meantime. III
The Arrangements have decided upu
this course in view of their realizaua
Of the fact that the wheels of industt
al activi.t have been closed down tot
point which brings depression and d.
tress to the entire public, and thas
something must be done TO start tte1
again in operation. The situatu
which confronts the railroads Is q.
tremely critical. The railroads in IN
realized Il net railway operating inesn1
of about So 100000, upon prOp9u
Investment of over $l9,0pWO,OW ~
even this amount of sixty two milB1
included back mail pay for prior yeau
received from the government Of q
proXlua;ely $4,000 go, thus showiat
when the operations of that year aleae
are considered, an actual deficit befefo
making any allowance for either Ineee
est or dividends. I
The year ended in serious depreo@
in all branches Of industry, aaa 7
marked reduction of the market y
mand for and the prices OF basic -
modities. resulting in a very seF'sa
falling off in the volume OF trafne /
Roads Forced To Defer MaiAtesaso. /
In this situation a policy Of the ~
rigid economy and Of postponlns y
cutting to the bone the upkeep Of
properties was adopted by the n
roads. This was at the price OF p
lecting and for the time, deiest
work which must hereafter and ID y
near future be done and paid ior. -
Is illustrated by the fact that y =
September Is. 1921, over 10 per ~
or 374,431 in number, of the ~
cars Of the carriers were In bad o1v.
0nd needing repairs, as against ~
nal Of bad order cars of not more =.
100000, as Is further illustrated " ~
deferred and inadequate mainten.
of other equipment and OF roao ~
and structures. Even under those ~
and with this large bill cnaI!~ ..
up against the fuIlre, -wh'cn ~s
soon be provided for ana pa'd ~.
carriers are to perform suceessIseS
their transportation duties'-tne s
of operations for the first eight m
Of this year, the latest available nss
has been at rate Of net railwa! ~
atlng income. before proviolns :" Ia
terest or dividends, amounting w
20 per cent per unnum on the 49,, =. N
ton Of the carrier properties ilau. h
the interstate commerce eolhi'iss ~
the recent rate case. an alhou" .hI1
to pay the interest w
bonds. al
Roads Earnings Far Below Hess'
Returns 49,.
1t Is manifest, from TINS So"
that the rate Of return OF on
cent for the first two years alte1 ~" \
!, 1920, fixed in the hansporta.or. .oa
as minimum reasonable return ~ ~
railroad investment, has not Deen
Appropriated, much less reacheu;.
That the present high rates aceU a.s,is.
are not due to any statutory mar
Of earnings, for there Is no sse"
antee. 80.
In analyzing the expenses WHY. .,on i
largely brought about this silu us. ,.rs.
becomes evident that by lar wv I'D
est contributing cause Is the i"o0' ~,
Today the railroads pay out 10 a ,.N
approximately 60 cents on tne ~ ast
they receive for TRANSPORTING IN
vices, whereas in 1916. ~ CENTS w.
dollar went to labor. ,o.f
On the first day Of January - d
when the government took ena at TN
wages through the AdamSoh ~" 81
labor cost Of the railroads haa n nSso an
ceeded the sum of about 81 4oovsrka]
annually. In 1920, when governlns.so
authority made the last wage NJ Ss n
the labor cost of the railro"u, -
about $3,60S 900, 600 annually, VI Dad d
linued throughout the year ins s,cS ~
Tor the eight months during VIZ" sS ~
wage increases were in effect VA ~
cost, on an annual basis, wow WOW "co0
been largely in excess OF $S'SI