costs. During the summer and fall of 1945, railroad
labor unions made demands for wage increases and
changes in working rules. The fifteen non-operating
unions, which include shop men, clerks, maintenance
workers, and other classifications of non-operating
employes, presented a demand for an increase of
thirty cents an hour. The five operating unions—
conductors, trainmen, engineers, firemen, and switch¬
men—presented demands for a minimum wage in¬
crease of $2.50 in all existing basic daily rates; the
engineers and trainmen further demanding that all
existing basic daily rates in excess of $10.00 be
increased 25%. The five operating organizations,
together with a number of the non-operating organi¬
zations, also proposed more than fifty changes in
working rules, and the carriers submitted counter¬
proposals for some twenty-nine rule changes.

These demands were the subject of conference be¬
 

tween employe and carrier representatives, and in
mid-December the carrier representatives invoked
the services of the National Railway Mediation
Board. Subsequently, the fifteen non-operating un¬
ions and three of the operating unions—namely,
conductors, firemen, and switchmen—agreed with
the carriers to defer consideration of rule changes and
to arbitrate the issue of wages, with the understand¬
ing that any wage increase determined by the arbi¬
tration would be effective January 1, 1946. The other
two operating unions (engineers and trainmen) re¬
fused to defer consideration of the rules and to
arbitrate the issue of wages, and have ordered a
strike vote.

That the Company must face more intensive com¬
petition than ever before is certain. Plans to meet this
challenge are well advanced.

Contracted for and under construction is a fleet of
 

PASSENGER TRAFFIC

PERCENTAGE BY NUMBER OF PASSENGERS CARRIED
 


 

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COACH (ex commutation) 50.20%
 

Z           COMMUTATION 43.89%
 


 

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\^J^±Jlm*jmJ)                                                                             \^*jtA^mi^ij