Evening star., 1934-03-18
New Notices Prohibited.

4OOC, A44ay CSlNC 1lCN J4 cubOlAlubC
notices in respect to rates which shall
take effect after April 80. 1885;
%. That proceedings under such
notice shall be conducted nationally,
pursuant to the railway labor act, and
shall proceed to a conclusion expedi-
tiously as reasonably possible, and
a. That the 10 per cent deduction
arrangement shall be extended to and
including April 80, 1885"
These proposals extended the status
quo longer than the President had
suggested and left the IS per cent cut
hanging over the heads of labor
Whitney read his reply this after
noon, a 2,000-word statement, con-
cluding: Therefore, we must respect
fully reject your proposal for Is per
cent reduction in basic rates of pay,
and decline your proposal for an
extension of the existing 10 per cent
wage deduction agreement for period
of 10 months beyond its present ex-
piration date, June 30, 1884. We
insist that basic rates shall be re-
stored on July /, 1884, in keeping
with the terms of the existing agree
ment."
In reply, the labor leaders said
they were amazed by the spirit of
pessimisn. defeat and despair" which
pervades the statement of the confer
ence committee managers.
Regret "Dirge" Continues.
''While the whole Nation moves
resolutely forward to renewed INDUS
trial health, you offer us but Ole
more stanza of the dirge 70 which
we have listened for four years" the
letter continued. 1T is not surpris-
ing, in view of such an attitude by
the railway managements. that SO
many people in the United States
mistakenly believe the railway indus
try to be upon its death bed"
Among the facts justifying conf
dence cited in the letter were these:
Since May, 1888, every month in
1888, except October, showed a dis
ttnct Improvement in gross operating
revenues over the corresponding
month of 1882, and net railway oper-
ating income in these months was
s419,000000, against S241 100000 in
the same months Of 1882.
The week by week carloading figures
for 1854 have shown traffic rapidly
rising to substantially higher levels. "
Business has increased substan-
italy in other industries, notably
steel, automobiles and construction,
which augurs well for the general i'm
provement Of the economic situation.
Deficit Reduction Noted.
The technical" deficit of class 1
railroads for the entire year of 1888
was only 10 per cent of that for the
year 1882, Notwithstanding an in
crease of s5.OOO,oo0 in payments to
security holders during 1888.
The labor leaders asserted that
many of the roads now in receiver
ship are notorious for their top
which could not be maintained with
out q continued era of abundant
prosperity" They said they could
not summon ANY great sympathy
for the bondholder, who has been
taking most of this net railway in
come during the depression"
Laying the chief blame for the de-
mand for lower wages on the railroad
bondholders, the labor leaders said:
1T Is for the purpose of continuing
these still untouched interest rates
and debt totals that railway manage
ments are now asking railway en-
sacrifices. We believe the request to
be indefensible.
Low Wages Are Cited.
Their letter cited numerous exam
pies of section men who are receiving
as low as 20 and 25 cents an hour
and working as little as two days a
week, thus earning weekly incomes
as low as s4. They said that the fig
ures for 1882 showed that AZ per
cent of all railway employees earned
less than 500 a month in 1892. and
that "a per cent earned S125 a month
or less.
In conclusion the letter said:
Your request would in effect con-
tinue this deduction in the interest
Of strengthening the position of the
railway bondholders.
But the lean years of the depres-
sion found interest payments to these
bondholders steadily increasing, ris-
ing in the worst years of the slump
to the highest levels ever attained.
THE record shows an increase in
interest payments from $511, 100000 in
1929 to S533,0o0,oOO in 1888, while
compensation of employees dropped
from S2,941 900 900 in 1929 to sl,404,-
100000 in 1888.
In response to what We then
considered an uniuStified demand BY
railway nangements, the statement
added, ''we consented in January, 1892.
to this 10 per cent deduction from the
earnings C the men and women We
represent.
See Return Justified.
what shadow of justification there
was for this deduction at the low
point of the depression has now dis
appeared and rising railway traffic,
increasing gross and net revenues,
together with rising prices, at once
require and permit the restoration
OF basic rates of pay
The figures of decreased compen-
sation only indicate the terrific priva-
tions forced upon these railway en-
ployes: men earning as low as SIS or
S6 per week are among those being
asked to continue their sacrifice for
their pitiful wages to permit improved
conditions for the railroad bond
holders.
"The managements here are asking
us to agree with them in q policy
which contradicts and must to a very
large extent nullify the national in
dustrial recovery program
1--WE are asked to confirm a pro-
gram Of restricted wage payments
and of reduced employe purchasing
power.
I'm plain language you ask us to
obstruct and retard American eco
nonic recovery and to support you
In your refusal to contribute anything
at all to the national rehabilitat ton.
We cannot and will not scquiesce."