Evening star., 1922-01-13
RATE. CUTS
ALARM RAILROADS
Universal Demand for Fur
ther Reductions Viewed
With Apprehension.

Universal demand for further re-
auctions in freight rates presents a
situation which railroads must view
with apprehension. President H. E.
Byram of the Chicago. Milwaukee and
st. Paul railroad testified today at the
Interstate Commerce Commissions in
vestigation into the existing level of
transportation charges. All efforts to
reduce expenses and increase eff
cheney have been inadequate to main
tain railroad earnings during the past
year, he declared. and the railroad
unless earnings and traffic alike in
crease.
Hopes I'm Wage Reductions.
The only suggestion, Mr.. Byram
said, which appeared to offer measur-
able opportunities to increase the
earnings of railroads lay in further
wage reductions. and federal control
of wages" which. he said, was in ef-
feet through the Railroad Labor
wages to suit economic conditions.
Federal control of wages" said
Mr.. Byram, while doubtless stabiliz-
ing in it's influence on strikes and
lockouts, has established infiexible
! rates of pay that during the past year
8
current rates paid in other neighber-
ing industries, and these high wages,
coupled with the inf1exible rules gov
erning the method of performing de-
tails OF work. particularly in shops
and roundhouses. greatly and unnec-
operation.
Cause Of Decrease.
As labor constitutes the greater part
In Ayn h ho,
been the principal cause of the decrease
in net income of the railroads, and un-
til the conditions are changed, it will
have the effect of interfering greatly
with the possibility of increasing net
income by greater efficiency and econ
omy in management. As an evidence OF
this, we estimate that our railroad, If
permitted to pay the going rates in out
side industries, would have saved in the
last year about s7.250.00o in, its me
chanical department and $1.750. 900 for
track labor alone in the maintenance of
way department.
- Methods OF EconomisinG.
Mr.. Byram described In detail meth
DDS of economizing which he had en-
he said. had resulted In the aggregate
in many millions of saving, but which
had been rendered inadequate by the
continued fall in traffic. He added
tnat there comes time when. no
matter how low the revenues, it is not
possible to make further reductions in
railroad expenses without serious in
terruption of maintenance and incon-
venience to the public and threatening
impairment of safety"
Statements In opposition to rail-
road rate reductions were completed
by two railroad presidents at the In
terstate Commerce Commissions in
vestigation into the reasonability Of
transportation rates Daniel will
lard, of the Baltimore and Ohio, dur
ing long exchange with Commits
sioner Esch, insisted that lower costs
of railroad operation could not be
attained by abolition of passes for
railroad employees. private cars for
executives or similar alterations of
policy because their relative i'm
portance was little.
c. E. FELTON, of the Chicago, Great
Western, however, in answer to
questions from Commissioner Lewis,
said that railroads cannot be efi-
cient in the employment of labor un-
til the Railroad Labor board, which
controls them under the transporta-
ton act, allows them to establish
rates of pay which correspond to the
wages paid workers of similar oc-
cupations in the communities which
the railroads serve"