The Wilmington morning star., 1947-08-10
Rv LARRY HOWARD

RUTLAND. VT, Aug. 9.-lR)-
The 1oO-year old Rutland railroad
bankrupt for years, is being given
strange financial medicines 10 pro-
long its life.
Employees of the railroad have
voluntarily accepted wage reduc-
tons. the state of Vermont has
granted tax concessions, and a
"Save-The-Rutland" committee did
its bit.
The old des shot-in-the-arm pro
posed - certainly to any old line
railroad man-was the suggestion
to operate the Rutland as a CO.
operative, a plan to which the Yer
mont legislature gave its blessing
this spring.
In the midst of splra11ng prices
and new demands for higher
wages, the 1900 employees OF the
short line railroad that runs across
northern New York and down the
western side of Vermont have ac-
cepted a six-cent an hour wage re-
duction.
The decision of the employees tc
take a six cent cut was made I'M
der the term Of an unusual laoo1
contract signed early this year al
the end of a battle on the part q
the men to gain an 10 IL cent ar
hour raise.
The management Of the road
agreed to grant the full wage in
crease if the employees void also
agree to have six cents taKec back
if the roads working fund fell be-
low a designated figure.
The men signed, the fund drop
ped, and the reduction OF six cents
was accepted.
The contract further stipulates
that the six cents will be returned
to the men when the working fund
is built up again to $500, 600. This
week it was back to 1925, 900.
The employees of the line have
taken wage cuts before. in 1871
they accepted a five per cent de-
duction for two years as "a volun-
tary contribution of the employees
for the purpose of improving the
financial condition Of the Rutland
~railroad."
Thirteen months later the man
agement voluntarily restored the
deduction.
The road has been losing money
for years. No dividends have beer
paid to the preferred stockholders
since 1881.
Last year the road actually
made money from its railway op'
erations, but the deficit for the
year was $605, 700.
The trend is continuing this year
. As the operating expenses con
tinue to mount faster than thu
revenue comes in, the roal stiffen
its attempts to stay on top. Fou:
< new mountain type locomotive
were purchased III 1916, for ex
ample, to increase effic ,ency.
The real trouble for the@ hard
! luck Rutland began in 1888 whel
it was placed in equity receiver
:. ship. During the 1905 a steadil.
, declining trend of gross and ne
revenue had reached the acut
> stage until 1888 when the road wa
running at a daily loss of So, 400.
9 Labor disputes, financial worrie
and arguments over the relativ
rights of the various bond holder
have plagued the road since.
In 1892, a group Of preferre,
stockholders petitiond the court t
plac the road under section II Q
the Federal Bankruptcy act. L
1914 the line was officially declar
ed bankrupt.
Senator George D. Aiken, the,
} governor of Vermont, told tn
people that '+the railroad will nc
be embarrassed by attempts
forcibly collect taxes now due tn
State. 1t is my personal belief tina
4 unless the railroad is then on
paying basis, the pext legislator
! should in some manner substantial
1 ly lessen its tax burden"
Five years later the road, still il
bad shape, had about $118, 900 wortl
=, of taxes lifted from its dropping
shoulders by the state.
The most colorful suggestion TO:
putting the Rutland back on it.
feet financially has been advanced
by Lester P. Barlow of Shoreham
VT, and New York city. He want
to run the road as a cooperative
Barlow believes that waterfall
t hauls from Chicago across tn
lGreat lakes to the rail head a