The nonpartisan leader. [volume], September 05, 1921, Image 15

About The nonpartisan leader. [volume] (Fargo, N.D.) 1915-1921

Image provided by: State Historical Society of North Dakota

                
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.
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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,"
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