The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-08-26
Stockholders and Employees
Troubles Compared by Penn.
Vice President of Road Issues
Statement ON Conditions.
STOCkHOL DERS SUFFER LOSS
Income From Securities Has
Been Reduced Since 1914.
More Than Wages In Volume
and Buying Power.

Phi1adelphia, Aug. 26.-In reply to
an inquiry as to how the employees of
the Pennsylvania Railroad have Jared,
as compared with fits stockholders, by
reason of the wage dividend changes
made since the pre-war period, A. ].
County, Vice-President or the
Pennsylvania in Charge of Account
ing has authorized the following
statement:
Today, after all readjustmeEts, includ-
ing those effective July I, f922. they
average $3.50. Our wages are there
fore 81 per cent higher than in 1914,
while the cost of living. according to
Government statistics. is "a per cent
higher. This means that each of our
2OO,0 employees. on the average, rs
able to buy considerably more OF the
desirable and needful things OF life
than his pre-war wages would obtain.
"Our stockholders are in different
position Thoy number lac, 1000. Most
of them own less than SO shares each.
The average ownership is IL shares.
Before the war II shares yielded an
income of $218 per year. In 1921
our Directors were forced to reduce
the dividend on Pennsylvania Rail-
road stock from the rate of 6 per cent
to 4 per cent per annurns rms cut
the return of the holder of the aver
age number Of shares to -$142 per
year. He is now getting one-third
less dollars than in 1914, and In
addition, like the employe, he has to
meet the higher cost of living. TINS
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 obli-
CATION, which has been publicly
stated, to restore the 6 per cent rate
as soon as that step can be wisely
taken, without risking deterioration
of the property. Even then our STOCK
holders incomes will merely be re-
stored as to, the number of dollars,
but not as to the purchasing power,
as long as the cost of living remains
above normal
Stockholder Carries the Load.
GAS between the stockholder and
the employee of the Pennsylvania Rail
fallen entirely upon the former. The
same condition, of course is true OF
the railroads in general and mas
undoubtedly been an important rae
tor in accounting for the failure OF
the men, who are at present on Strike
against the recently auth lied very
moderate wage readjustments, to en-
list the support of the public.
at is, ana long has been the de-
elared policy Of r. the psnn fgs best
wages and offer the MIST favorable
working conditions in the country, or
for that matter in the world. Fhe
stockholders of the company have
consistently supported the manage
nent in this. policy, in order that
loyal, efficient and satisfied working
forces might be- maintained, and the
public receive the best service posi-
BILE, Most of our men are, and al
ways have been, of this type.
an the present crisis, the great ma
tority of our shop forces have remained
loyal, wisely accepting 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. More
over, among our men there are doubt
less thousands whose course of ac-
ton has been influenced by knowl-
edge of the facts that the railroads
have had to accept a reduction in
freight rates, and that wages on our
railroad, sven in q 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 ana sup
ply bills. fixed charges, etc, less than
two cents remained out OF every DOL
lar of revenue to- pay dividends and
maintain the. credit Of the Pennsyl-
va mia svGfem."