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Existing railway rates are high.
Not because railroad capital is seeking or getting a larger return, but because railroad labor has thus far succeeded in keeping wages and rules of work fixed un der war-time conditions, and because coal and other things railways must buy are still high. In 1916 the railroads earned a net return of 6 per cent. This return which they earned five years ago is all the Interstate Commerce Commission meant to assure them when it fixed the present rates. Every increase in rates which has taken place since 1916 has been for the purpose of meeting increased operating expenses, of which labor is the big item. The compensation paid to the owners of the railroads on capital invested in them has declined, while wages have greatly in creased. Below are the amounts paid by the Class 1 railways in wages to their employees and in dividends to their owners in the years 1912, 1916, 1919 and 1920: WAGES PAID TO RAILWAY EMPLOYEES 1912 $1,209,716,686 1916 1,468,576,394 1919 2,843,128,432 1920 3,698,216,351 DIVIDENDS PAID TO RAILWAY OWNERS $339,964,855 306,176,937 278,516,908 271,429,999 Increase in wages in eight years, $2, 488,499,665, or over 200 per cent. Decrease in dividends in eight years, $68,000,000, or 20 per cent. Railways Are Trying to Reduce Expenses The railway managements for many months, have been exerting every effort to bring operating costs down so that rates can be reduced. Railroad employees will not accept reductions in wages without controversy. Any such controversy must go before the United States Railroad Labor Board. The railways cannot under the Transportation Act make any reductions in wages that are not either agreed to by their employees or authorized by the Rail road Labor Board. Since 1916 wages have been- increased over two billion two hundred million dol lars. They were decreased last July by $400,000,000 a year, leaving five-sixths of the increase since 1916 still in effect. 61 BROADWAY NEW YORK wJXri Why Are Your Railway Rates Higher? Association of Railway Executives 764 TRANSPORTATION BUILDING CHICAGO, ILL. Those desiring further information on the railroad situation are requested to'address the offices of the Association or the ^presidents of any of the individual railroads. "National Agreements" Are Still In Effect The railroads are still operating under the costly and wasteful rules and working conditions established by the "national agreements" under government control. They are still compelled to pay millions and millions of dollars for time not actually worked and to employ 3 or 4 or 5 kinds of high grade labor on work that one or two kinds performed before the war. The railroads are making every effort to get the "national agreements" set aside and establish reasonable rules. The "na tional agreements" are still kept in effect by the demands of organized labor and the orders of the Railroad Labor Board. The railroad managements are making every possible saving by increasing the average number of tons carried in each car, the average number of miles each car is moved per day, by reducing the number of their operating divisions, by economies in the use of coal and by refraining as much as possible from buying materials and supplies at present prices. But all of these economies will not*make practical a substantial reduction in rates unless the cost of railroad labor is further reduced. No "(Guarantee" to the Railroads Now The idea that railroad managements have guaranteed to them a 6 per cent re turn -and have therefore no incentive to economy is absolutely untrue. Since September 1, 1920, no railroad could receive what it did not earn. Since that time the railroads have failed to earn a 6 per cent return by $518,000,000 and have lost that sum forever. In this period of readjustment the rail roads are taking their loss just like every body else—only they have no war-time surplus to take it out of. Unlike many other industries, they accumulated no large surpluses because they were re stricted under government control to the same net return they earned in the three years before the United States entered the war. A decrease in operating expenses suffi cient to make possible a general reduction in rates can be secured only by further substantial reductions in railroad operat ing expenses—including the abolition of war-time rules and working conditions so that the amount of work per day of each railroad employee will be something near what it was before the war. MUNSEY BUILDING WASHINGTON, D. C. Get It Now f°r' a Dollar "TheStoryof the Nonpartisan League," by Charles Ed ward Russell, cloth bound, illustrated, retails for $2. We have been selling it, separate from Leader sub scriptions, for $1.25. But there is a way you can get this great book for A DOL LAR, half its regular Jbook store price. How? First, Something About the Book The book is the story of A. C. Townley and the Non partisan League, written by one of America's most noted writers on political and economic subjects. It is published by Harper & Bros. Mr. Russell has been in personal touch with af fairs in the states where the League was organized. He speaks from first hand knowledge. His book answers such questions as these: Was the League disloyal in the war? Has the League been autocratic in management? IT A. C. Townley a crook? His answers are NOT. answers that the League would give, nor yet that League enemies would give. They are his best, impartial judgment. Enemies of the League have quoted this book to prove their points. Leaguers have been pleased with the book. YOU- ought to read it and OWN it. Kill Two Birds With One Stone Renew your Nonpartisan Leader subscription for two years, at $1.50 per jyear, which makes $3. Add ONE DOLLAR to your check, making it total $4, and you get the Russell book besides two years of the Leader! 'You are going to renew your Leader subscription anyway, be cause you must have the infor mation that no other farm pub lication outside of the Leader can give you. So just add $1 to that $3 check you are going to send us for the Leader and get by the next mail the book no farmer should* be without. The Nonpartisan Leader Box 2072, Minneapolis, Minn. Use the Following Blank: Nonpartisan Leader (Book Dept.), Bo* 2072, Minneapolis, Minn. Gentlemen: Inclosed find $4 (cheek, currency, money order, draft) for which extend my subscription to the Leader for. TWO years, and in addition send me Busaell'a "The Story of the Nonpartisan League," S33 pages, cloth bound, illustrated. N am Poitoffice Street or B. P. D. State Write plainly