The Challis messenger. (Challis, Idaho) 1912-current, 1922-01-11
RAILROAD P'l110 !.
GET RATES down u
Propose to Rota:9 u.zas and R,.,,,
al tie Sailing b Reduction ''"''
in CAlT5es
FULL TEXT CT The paoposu
Statcnont by Thonas p,,.,.
Chairman OF the Assooiation .,
hallway EN7ou.i.cso nth. |
S.-G~t4sn

.oton ~ 90 a III e'-AS IN Chicago, DEL
tobcr II, 1921, Of Tie Presidents WI
nearly all the leading railroads ~ "
country, Mr.. Thomas Dewltt crn' .at
Chairman Of the Association ~ ~
way Executives, made the fonom,A
statement:
1T a meeting Of the associate, ~.
railway executives today, it was de,as
mined by the railroads of the Un;,.,
States, to seek to bring about re,n.
ton III rates, and as Il means to ,h.,
end to seek a reduction in present r,rl
road wages which have comneled
maintenance of the present rates
An application will be made immeh
ntely to the United States railroad i.
Dor board for u reduction in wages a.
train service employees sufficient n
remove the remainder of the increase,
made by the labor boards decision NJ
July 20, 1870 (Which would involve a
further reduction Of agproximately teal
per cent? ana Tor a reduction in tbpI
wages Of all other clus IS Of railroad
labor - the going rdte for such laso,
in several territories where the car
Iiers operate.
10 Reduce Rates AS Wages Go Down
Tie foregoing action is upon the IN.
der1tandng that cCacurrently wih|
such reduction in wages the benefit Of
the reduction thus Obtained shall, with
the concurrence Of the interstate con.
MERGE commission, be passed on to the
public in the reduction Of existing rail-
road rates, except in so far as this 10
duction shall have been made in the
meantime. /.
The arrangements have decided upon
this course in view Of their realization
of the fact that the wheels Of indlsth.
al activity have been closed down toI
point which brings depression and dis
tress to the entire public, and that
something must be done to start them
again in operation. The situation
which cOnfrontS the railroads is eI'
tremely critical. The railroads in 1871
realized a net railway operating income
OF about $C2,OuJ,UUJ, upon properly
Investment Of over 419,000,0)O000 and
even this amount Of sixty two milIo1
included back nail pay for prior years
received from The government OF aF
proXma;ely %GA,U3jyoJ, thus shoVlaS
when the operation Of that year alone
are considered, an actual deficit before
making any allowance Tor either ih's'
est or dividends.
The year ended in serious depresA@
in all branches OF industry, ana VI
marked reduction Of the market oe
mand for and the prices OF base COM
modities, resulting in a very serious
falling off in the volume OF trainc
Roads Forced To Defer Maintenance
In this situation a policy of the mos,
rigid economy and Of postponins sla
cutting to the bone the upkeep Oh 'a1
properties was adopted by the faif1
roads. This was at the price OF ats
lecting and for tie time, deief'.n'
work which must hereafter ana III sne
near future be done ana paid lor' i-
is Illustrated by tie Tact thaI' ~ y.
September IS, 1921, over IL per yea.
or 371,431 in number OF me iIe.s
cars of the carriers were in bad cil.'
and needing repairs, as aSa'Ns' .ha,I
NAL of bad order cars Of MOI nlVie Una
10000, as is further illustrated y! ~
deferred and inadequate mall'eiHn
of ether equipment and OF roau~S
and structures. Even under those W.
ditions, and with this large Din cnms Ns,
up against the fusIre,-Whiea ;. u ss
soon be provided for ana pau i,strilrl
carriers are to perform succe as.rN
their transportation dNueS'L. montn,I
of operations for the first elsh. sm,rps
of this year, the latest aNaliao'e ne rnsrI
has been Mt rate of net rall"a! vf
ating income. before providing ", ,ul,|
terest or dividends, amounting " .,u,.
&c per cent per annum Oh ln m,.de hyl
ton of the carrier properties m :,s;on h
the interstate commerce coli 1,Dnnt natl
the recent rate case, an INV AN ,hstl
sufficient to pay the IhteIe''
outstanding bonds. ~
Roads EARNINGS Far Follow He'''
Returns la,
1t is manifest, from this sHos M
that the rate of return Of o1a MAD
cent for the first two years after l,S .S AZ
/, 1920. fixed in the fcansporIa.,vr, rop
us a minimum reasonable return an sraa
railroad investment. has not been a. end nd
approxlmated much less eaeil,avrsiugS
that the present high rates ae. narsvts
are not due to any statutory ga ia Sr,,r
of earnings, for there Is no
Qntce. ,.a
In analyzing the expenses when ,'a MN i
largely brought about TINS s.'a .ha ars
becomes evident that by lar , ,nr a.
est contributing cause is the '"o. ,.he
Today the railroads pay oa tSs doln
approximately co cents on ~. ..ion ST.
they receive for transpolu',,sso On da
vices, whereas in 1916, ~ GEMS
dollar went to labor. ,9li
On the first day Of Jailu" aharss u
when the government TOOK , aet. ID +
wages through The Alaiiis ga moi Is
labor cost OF the RAILROADS, Les ,ss OO0M
ceeded the sum OF about Si'aNvsnraeptl
annually. In 1870, when goyetrunsrsasl
authority made The last wage in ~. -
the labor cost Of the railroaa,s, a.
about $3,89S010O0l aHlu'lpi ,ns,eaa
tinued throughout the !,aI which
for the eight months during I tbe hbd
wage increases were in effect ' .na mI
cost an nn , .nnr,l basis, wouluu "a