Evening journal., 1922-08-18
PR. R. owners
4PER CENT.
Stockholders Get Much Less
Than Workers, Statement
Shows
SAY MOST OF
MEN ARE AT WORK

In reply 10 an inquiry as TO how
the employees Of the Pennsylvania
Railroad have Jared, as compared
with its stockholders. by reason OF
the wage and dividend changes
made since the pre-war period. A.
J. County. vice-president in charge
OF accounting. has authorized the
following:
In 1914 wages on our railroad
averaged $3.50 year per employe.
Today after all readjustments. in
cluding those effective July 1. 1922,
they average $3.50. Our wages are
therefore 50 per cent higher than
in 1914. while the cost OF living
according to Government statistics
is 81 per cent higher. This means
that each OF our 100000 employees.
on the average, is able 10 buy con-
siderably more Of the desirable and
needful things of life than his pre-
war wages would obtain.
"Our stockholders are in "A differ
ent position. They number 100000.
Most of them own less than so
shares ecah. The average owner
ship is Il shares. Before the war Il
shares yielded an income OF S2i3
per year. In 1921 our directors
were forced to reduce the dividend
IN Pennsylvania Railroad stock
from the rate of per cent. to per
cent. per annum. This cut the re-
turn OF the holder OF the average
number OF shares 10 s142 per year
He is now getting one-third less dol
lars than in 1914. and in addition,
like the employe. he has 10 meet the
higher cost Of living. This means
that the actual buying power OF his
present income from dividends is
much below that OF his pre-war re-
turn.
"Our management feels an obliga-
ton. which has been publicly stated.
10 restore the per cent. rate as
soon as that step can be wisely
taken. without risking deterioration
Of the property. Even then our
stockholders incomes will merely be
restored as to the number OF dollars.
but not as TO purchasing power, as
long as the cost OF living remains
above normal.
"As between the stockholder and
the employe OF the Pennsylvan MIA
Railroad. the burdens OF the war
have fallen entirely upon the form
er. The same condition. OF course.
is true Of the railroads in general.
and has undoubtedly been an i'm
portant factor in accounting for the
failure OF the. men. who are at
present on strike against the recently
authorized very moderate wage re-
adjustments, to enlist the support of
the public.
1t IS, and long has been. the de-
clared policy OF the Pennsylvania
Railroad to pay its employees the
best wages and offer them the most
favorable working conditions in the
country, or for that matter in the
world. The stockholders Of the
company have consistently support
ed the management in this policy. in
order that loyal. efficient and salts
fed working forces might be main
tained and the public receive the
best service possible. Most of our
men are, and always have been OF
this type.
I'm the present crisis the great
majority OF our shop forces have
remained loyal. wisely accepting a
conservative wage readjustment
which is fair TO their interests. and
necessary as a measure of justice
both TO the owners and the users
OF our railroad. Moreover, among
our men there and doubtless thou.
sands whose course Of action has
been Influenced by knowledge Of the
facts that the railroads have had TO
accept a reduction in freight rates,
and that wages on our railroad, even
in a depressed year like 1921. took |
over 81 cents out Of every dollar /
paid by the public for service; |
whereas after paying those wages. |
taxes. material and supply bills. fixed |
charges, etc, less than two cents re-
mained out Of every dollar Of reve-
nue. TO pay dividends and maintain |
the credit Of the Pennsylvania Sys-