Five Mile Beach weekly journal., 1922-09-01
WAGES AND DIVIDENDS OF THE
PENNSYLVANIA RAILROAD

In reply to an inquiry as to how the
EMPLOYEES of the Pennsylvania Rail-
road have Jared, as compared with It's
stockholders, by reason of the wage
and dividend changes made since the
pre-war period, A. ]. County, vice
president in charge of accounting, has
authorized the following.
"In 1914 wages on u railroad aver
aged $3.50 a year per employee. Today
after all readjustments, including
those effective July l, 1922, they aver
age $3.50. Our wages are therefore
50 per cent higher than in 1914, while
the cost of living, according to govern
ment statistics, is 81 per cent higher.
This means that each of u 100000
EMPLOYEES on the average, is able to
buy considerably more of the desirable
and needful things of life than his pre-
war wages would obtain.
"Our stockholders are in a different
position. They number 100000. Most
of them own less than 80 shares each.
The average ownership is II shares.
Before the war II shares yielded an
income of $213 per year. In 1921 our
Directors were forced to reduce the
dividend on Pennsylvania Railroad
stock from the rate of 6 per cent to 4
per cent per annum. This cut the re-
turn of the holder of the average num-
Der of shares to SAP per year. He is
now getting one-third less dollars
than in 1914, and in addition, like the
employee, he has to 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 return.
'Our management feels an obliga-
ton, which has been publicly stated,
to restore the 6 per cent rate as soon
as that step can be wisely taken, with
out risking deterioration of the prop
erty. Even then our stockholders in
comes 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 stakeholder and the
employee of the Pennsylvania Rail-
road, the burdens of the war have
fallen entirely upon the former. The
same condition. of course, is true of
the railroads in general, and has I'M
doubtedly been an important factor in
accounting for the failure of the men,
who are at present on strike against
the recently authorized very moderate
readjustments, to enlist the sup
port of the public.
"It is, and long has been, the de-
policy of the Pennsylvania
Railroad to pay it's employees the best
and offer them the most favor
working conditions in the coun-
.ry, or for that matter in the world.
The stockholders of the company have
consistently supported the manage
nent in this policy, in order that loyal,
Efficient and satisfied working forces
night be maintained, and the public
'eceive the best service possible. Most
If our men are, and always have been,
If this type.
"In the present crisis the great
majority OF our shop forces have re-
NAMED loyal, wisely accepting a con-
.iervative wage readjustment, which is
to their interests, and necessary
IS a measure of justice both to the
owners and the users of our railroad.
Moreover, among our men there are
doubtless thousands whose course of
iction has been Influenced by knoWl-
of the facts that the railroads
had to accept a reduction in
freight rates, and that wages on our
even in a depressed year like
1921, took owe 81 cent out of every
lollar paid by the public for service;
whereas, after paying those wages,
axes, material and supply bills, fixed
etc., less than two cents re-
NAMED out of every dollar of revenue
% pay dividends and maintain the
of the Pennsylvania System"