The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-22
Industrial Court Orders Reduc.
tiOn ~ to 10 Per Cent.
Slump in Earnings and Living
Costs Are Indicated.
JITNEYS HURTING BUSINESS
Court Finds That Fares Are
Taken From Railway.
Living Expenses Are Said to
Have Dropped 20 Per Cent.

Wage reductions ranging from seven
and a half to ten per cent were or
dered today for 125 trainmen en-
ployed by the Topeka Railway com
pany. The wage slash was ordered in
an opinion rendered by the court OF
industrial relations. Reduced living
costs and a slump in earnings OF the
street railway company JUSTIFY the cut
the opinion states.
Presiding Judge Higgins wrote the
opinion in the new wage award. IN
his decision he points out that 1itney
competition has interfered with the
business of the street railway COM
pany and that operating expenses
have inrreased while there has been
gradual decline in the number of pas
scnger fares. Fewer passengers were
hauled during the first six months OF
this year than in the same period
q wear ago Increased fares, tho
boosted gross revenues $4,000 over
the first six months of 1920. 1t IS
asserted that tax responsibilities of the
company have increased from $31,1OS
in 1916 to $49,204 last year.
Asked for 10 to IL Per Cent Cut.
The local railway company had
asked approval of a wage cut OF 10
10 l2h per cent. In the order signed
TODAY by all members of the court
wages of trainmen are reduced
minimum of Il per cent and maxi
mum of 10 per cent. The old wage
scale under an industrial court
award of August 7, 192O-was AZ 10
50 cents an hour. The new scale
ranges from 40 to so cents an hour.
Evidence before the court showed
the company is paying taxes on an as
sessed valuation of $1,54S,26S.6O. 'The
evidence plainly shows says the
court. that under present conditions
the respondent is making a very mea-
ger return upon investment used ana
useful in its business. The percentage
of return upon investment is FAR be
low that which is provided by the To-
pcka city franchise and by the law
for such enterprises as this
Living Costs 30 Per Cent.
Findings of the court were to the
effect that general living costs have
decreased 20 per cent since the 1920
wage decree. Living costs in Topeka,
tho. have been reduced but IL to 10
per cent. the court found.
THE evidence shows" said the
court, that the respondent is suffer
ing financially, also because of the
so-called 'jitney' competition in this
city. 1t is apparent that the respon-
dent. If considered as a tax payer
only, is a valuable citizen to the COM
munity. The evidence is convincing
upon the proposition also that this re-
spondent renders a service which can
not at the present time and under
present conditions be rendered by any
other means"
Employees of the respondent must
not be compelled to work for an in
adequate wage in order that their fell
low citizens may enjoy cheap trans
portation," sa the court. "Such
state of affairs would be an injustice
to the employees and would ultimately
result in the destruction and discon-
t.nuance of the business. In view.
however, of the reduction in living
costs it is believed that some reduc-
tion in the wages allowed to the COM
plainants may be made at this time
without a serious injustice 10 them"
The Wage Award.