The Challis messenger. (Challis, Idaho) 1912-current, 1922-01-04
RAILROAD PLAN N
GET RATES down,
Propose to Reduce Wages and p.,,,
A1sthe Saving BY asau:tip, "''''
in Charges
FULL TEXT OF THs: psopo,.,
State ment by Thomas Dsv;..c
Chairman Of the Associate. wv
Railway Executives
Situation

Following meeting in Ch,co,.
tober IA, 1921, Of the Presidents. W. :,
nearly all; the Leading railroads ~ "
; country, MIR. Thomas Dewitt cn., a.s
Chairman of the Association Of =.
way Executfve4 anlde the fono "alt
: statement:
d. AT a meetingGo Of the associate,
railway executives today, it WAS I-.a "
mined by the railroads of tho r,,,.
States, to seek to bring about q r.,,n
ton in rates, and as a means 70 tna,
end to seek a reduction in present ~,
road wages which have comro,, !
maintenance of the present rates
An application win be made imr,aH
ately to the United States railroad 10
Dor board for Il reduction in wae,,s -.
tram service employees sufGcen, ii
e remove the rena!nder of the increase.
MADE by the labor BOARD; decision o,|
July 20, 1870 (Which would iDyove n
further reduction of Approximately 70,
per cent? and for a reduction in ts.|
+ wages or all other classes Of railroad
labor l, the going rate for such !ab,|
: In several territories where the csr
/ riers' operate. r#
To Reduce Rates As Wages Go Dov.
The foregoing action is upon the IN.
derstand!ng that concurrently with
such reduction in wages the benefit Of
the, reduction thus Obtained shall, with
. the concurrence of the interstate com.
, merce commission, be passed on to the
PUBLIC in the reduction of existing rail.
! road rates, except In SO far as this n
dqctiOn shall have been made in tie
/ meantime. -.
The arrangements have decided upon
this course in view OF their realization
of the. fact that the wheels Of industr.
al activity have been closed down to
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 tue railroads is ex.
tremely critical. The railroads in 1920
realized net railway operating income
Of about $50, 100000, upon properly
Investment of over $19,0J0,000,0W and
even this amount of sixty two million
included back mail pay for prior years
received from the government Of ap
proxiria;ety $6i,000UU0, thus showing,
when the opera tons of that year alone
are considered, an actual deficit before
making any allowance for either Inter
est or dividends.
The year ended in serious depression
in all branches Of industry, and IN,
marked reduction Of the market deI
mand for and the prices Of basic com
modities, resulting in very. serious
falling off in the volume Of traffic.
Roads Forced To Defer Maintenance
In this situation policy of the mea|
rigid economy and of postpOning ancI
cutting to the, bone the upkeep Of me
properties was adopted by the raul
roads. This was at the price OF nes1
lecting and for the time, deferrnG
work which must hereafter. and 10 IDel
near future be. done and paid for. ms
is illustrated by the fact that, as OF
September Is, 1921, over 18 per CENT
or 374,431. in number, of the frelslAl
cars of the carriers were IN bad oruelI
and needing repairs, as against IH'l
NAL of bad order cars of not more thanl
100000, as is further illustrated by 1he|
deferred and inadequate mdintehancs
of other equipment and OF roau"a'I
and structures. Even under those col
ditions, and with this large bill ehafsea|
up against the futlre,-Which mus
soon be provided for and PAID II n'
carriers are to perform successfully
their transportation 'dutieS,-the result
OF operations for the first eight nlon4
of this year, the latest available nsNs'
has been at rate Of net railway ovs
ating income, before providing lor ~
terest or dividends, amountins 10 ~
2.6 per cent per annuln on the s.'I ~,
ton of the carrier properties mau.
the interstate commerce commlsslon
the'.recent rate case, an alAouu. .ho,l
to pay the interest Oh ''''"
bonds. =.
Roads Earnings Far Below ReasoF~
Returns
1t Is manifest, from this snomnr
that the rate of return OF Y o or
cent for the first two years AFTER MAT ~,
], 1920, fixed in the Transportation . sS
rs a minimum reasonable return Vp
railroad investment, has not been - ~, a
approXimated, much less reachea: .' -.
that the present high rates accorointts.a
are not due to any statutory guara.r :,
of earnings. for .thefe'is 40 sgcH ~ 4
antee. -a 49,: 80 :" -"
In analyzing the expenses when na
largely brought about this sltusu.y,ls; ~,
becomes evident that by*far tne , ~.
EST contributing cause Is. the hoof g Z
: Today the railroads pay out to i laT
90 cents on the u' asr. q:
hey. receive for trapsportations.' =. Il, IN ~
Vices, whereas in '13lG, ~ eeats.c' = y
iollar went to labor. vi ~" 30,
On the first day of January, l'. ID ~
when the government took chifsS,hs "
wages through the AddinSon iel,es ~. 6
abor cost of the railroads had n oo SO
,eeded the, sum of about 81, 46oVootal Id
In 1920, when goverrni1IJlSsss
authority made -she Inst wage lnei's 30
ne labor cost of .tttlie 'raiiroau,ss am.
bout $3,69S,Oo0,0O0 annually or n NJ
inued throughout the year insleau '.Se !,
or the eight months during sssnf e,
wage increases were In effect tlis Ssys =
'ost, on an annual basis, wolii oon oso s 4,
)oen 1nrpnlv IN oxcocs nf 50. 0lU,UVU'oDi ny