The Challis messenger. (Challis, Idaho) 1912-current, 1922-01-18
RAILROAD PLAN N /
GET RATES l1INI
F''''; y, to Reduce Wages and p,,,,,
Al the salin3 BY Rsal:!i,, ''''
In Charges
FULL TEXT OF THE PROPOSE,
Statement by homas n, i
Chairman OF the Assocjs.,os su!'''|
Railway Executives
Situation

neorlv a., ~ 49, Oh the president, al
nearly all the leading railroads IN ~ "
country, Mr.. Thomas Dewitt r !" a'e
Chairman of the Association Of fI s"a|
way Executives, made tho fon Aa'
statement: 'ONo"lna
at meeting Of the associate,
railway executives today, it was de,a.
mined by the railroads of tbo ra s'e'
states to seek to bring about raa ''
uoh IN rates, and as means 70 tb"l
END to seek reduction in present ,au
ROAD wages which have comno,I.,
maintenance of the present rotor
An application will be made imu.,,
ately to the United States roIroo1 ~
Dor board for a reduction in warns n
train service employees sufficien, ".
remove the remainder of the iucra.s0s
made by the labor boards decision N
July 20, 1920 (Which would involvo
further reduction OF approXimataly to,
per cent? and for reduction in thd
wages Of all other classes Of railroad
labor - the going rate for such laho1
in several territories where tho csrl
riers operate.
To Reduce Rates AS Wages Go Down
The foregoing acton is upon the IN.
Outstanding that concurrently with
such reduction in wages the benefit NJ
the reduction thus obtained shall. with
the concurrence Of the interstate con.
mcrce commission, be passed on 70 tina
public in the reduction of existing rail-
road rates, except in so far as this re-
duction shall have been made in tho
meantime.
The Arrangements have decided upou
this course i'll view of their realization
of the fact that the wheels of industr.
al activity have been closed down to 4
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 1920 |
realized net railway operating incoms
of about Sc 100000, upon a property
Investment of over $l9,000,0U0N and
even this amount Of sixty two million
included back mail pay for prior Year,
received from the government OF ap
proXrately $Gl,CJ0,DU0, thus showing
when the operations Of that year alone
are considered, IN actual deficit before
making any allowance for either Inter
est or dividends.
The year ended in serious depression
in all branches Of industry, and %
marked reduction Of the market de
mand for and the prices of basic conf
modtics, resulting in very serious
falling off in the volume Of trafhc'
Roads Forced To Defer Maintenance
In this situation a policy Of the mos
rigid economy and OF postp0nlns any
cutting to the bone the upkeep OF l7
properties WAS adopted by the ran1
roads. This was at the price OF hes1
lecting and for the time, delefrMg
work which must hereafter and IN sls
near future be done and paid for. lma
is illustrated by the fact that "
September 10, 1921, over 1t per eel1
or 374, 431 in number, OF the ieisn1
cars of the carriers were in bad oFuel
and needing repairs, us asaihsl ns
mai Of bad order cars Of not more IMAM
6G,000, as is further illustrated py u'
deferred and inadequate mail'ellan,
of ether equipment ana Oh ioau .or
and structures. Even under those eUS
ditions, and with This large Din ena 1tyS,
I'D against the futIre,-whlch =. INV" .S.
soon be provided for ana pau ls,,ny
carriers are to perform succeSsi~
their transportation duties -'he , .,
of operations for The first elgil l as"ros
of this wear. the latest available nsu.
has been at Il rate Of net rali""! vim
ating income, before proVldihs W' orlrI
terest or dividends, amounting " Ina I
2.6 per cent per annum on lile VI, ,s hy|
tion of tha carrier properties mace ~ !.
the interstate commerce cohihis ',. notl
the recent rate case, an aino "n ,bpIrl
to pay the interest," W
outstanding bonds. ~.
Roads Earnings Far Belo" "e"'
Returns =.
IT ia manifest, from this sho 10Y nss
that the rate of return OF o12 Morh
cent for the first two years AFTER l,a su1 at
/, 1920, fixed in the ctansporlalVrn oon
as a minimum reasonable return oven
railroad investment, has hot . Nd and
much less reacn '.dney
that the present high rates a. arnarantss
are not due to any statutory s r1ar
of earnings, for there is no su-A
antee. ,,,, ha,a
In analyzlng the expenses which a1a n''t !:
largely brought about TINS si'a aho Ian.
becomes evident that by l"r ,hor cost
est contributing cause is the ''De ,oh,,
Today the railroads pay oa .ss - dollar
approximately 60 cents on ll .or sci.
they receive for transpoi'ao m tho
vices, whereas in 19lG, 4Fcen'
dollar went to labor. :. 1911
On the first day of Janua ahsrse d
when the government TOOK ." OFF, the
wages through the Adai''Son y, moi e.
labor cost CT the railroads ha ,ee 10000
ceeded the sum OF about Si,ansnmenhl
In 1920, when iinrreass
authority made the last WIZ ls,roads wa
the, labor cost of the rall'V or Il con.
about S3,G9S, 100000 annually; nvsstead d
tinuad throughout the year , which ths
FOR She eight months durins :. the labf
wage increases were in elies ,'ould have
rost. on nm annual basis, Noo n0O0M
been largely in excess of '..,me.
An increase. since the goye''uut N