New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-05-30
Eastern Roads
Agree to lOP.C.
Rate Cut Order
Conference of Presidents
Representing SIS Lines,
at Session Here, Votes to
Abide b. |. G.. C.. Ruling
Protest on Fair Return
Declare 81 Per Cent Fig
ure Won't Enable Them
TO Finance Operations

Guided by the slogan of trim bills
OF ladlng and then trim pay rolls" the
Eastern presidents conference. renrc-
sentlng the tiftyivc railroads north of
the Ohio and east Of the Mississippi
rivers, met in executive session yes
terday at the Metropolitan Club and
voted to abide by the 10 per cent re-
duction in freight rates ordered by the
interstate Commerce Commission last
week The new rates will be put into
effect without awaiting the receipt of a
formal order.
Although the $5OOOO,O00 reduction
Of way employees ordered by the
United States Railroad Labor Board
Sunday night was mentioned only Incl
dentaly, together with the prospect
that the board is to issue other orders
cutting $l00,000,000 more from the pay
of various classes Of railroad workers,
it was minated that the readiness
with which the Eastern railroad presi-
dents gave acquiescence to the order
Of the Interstate Commerce Commits
sion was due in large part to the &C
ton of the Labor Board.
Wage Cut Called "Onfset"
Prior to the beginning of the meet
ing f. W. Leamy, assistant to l.. p.
iLoIte, CuuiIH luu OIL lnC conference,
characterized the wage cut as an off
set.'
! at will be taken into liberation"
he said
However, no mention Of the wage cut
was made in a formal statement issued
after the meeting by Mr.. Loree, which
follows:
"Since the Interstate Commerce Com
mission finds that rates in excess ul
those determined by it shall be unrea-
sonable after July /, 1922, it was felt
that the roads had no alternative eX-
cept to put the rates in effect without
a formal order.
"Whlc deciding to do this. the roads
, also determined to enter of record a
formal protest Of the finding Of the
1922, the fair return, as contemplated
by the transportation act, will be 5a4
per cent, BELIEVING that this return is
lower than is required by law and will
not enable the railroads to finance
them selves to the extent that they
should be able to do to render adequate
service to the public.
at is Of prime Importance to meet
the transportation requirements of this
country, if it is to be prosperous. that
the railroads as whole shall be in
a sufficiently strong position to fur
nish service as it is required, and this
cannot be done unless they have such
income and credit as will enable them
to obtain funds sufficient to provide
equipment and facilities.
"If the future demonstrates the need
for additional revenues, the railroads
feel confident that the commission will
take steps to grant relief"
II, has been estimated that n no cr
into effect Of the commissions order
will reduce the income of the country
railroads S400,0O0,00O.
While important railroad officials in
New York declined to comment for
publication as to the wage cut order,
labor leaders were more communi-
cative. They pointed out that the rail
road brotherhood chiefly hit by the
$50,000,0 900 reduction order. the Brother
hood of Maintenance of Way En-
ployees and Railway Shop Laborers,
was one of those that took leading
part in the alliance formed in Chicago
United Mine Workers of America,
whose members are now on strike,
and that "it is not likely the brother
hood will accept the order lying down"
Statement by Brotherhood
On the subject of Should Railway
Wages be CUT" the Brotherhood of
Locomotive Engineers sent the follow
ing to The Tribune Yesterday:
'If the American people permit the
wages of railway employees to be
beaten down in order to pay dividends
on railway stocks which have been
VIGOROUSLY watered, the people them
selves will be the losers.
RAILROAD service demands an excep-
tionally high degree of skill, careful
ness and responsibility. Wages paid
in this service must be sufficient to Sc
cure the very best human material.
Low wages will inevitably demoralize
our transportation system. The actual
figures presented by the Railroad La
Dor Board prove that even the most