Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1910-07-15
A Railway Proposition.

What has recently been advanced III
behalf of United States railways
claims TO all Increase in their freight
charges, has been illustrated IN the case
of the Canadian roads in connection
with the late award of .he board acting
under the conciliation Law. From the
nature of things wages enter more
largely into the cost of operating the
railways than in connection with any
other industry. When to wages is
the production of which the cost OF la
Dor is main factor, it may be said that
there is no business which pays out so
large proportion of its gross receipts
to the actual worker AS the railway.
Some statements just issued illustrate
the point In the year ending June 30,
1909, the gross earnings OF Canadian
rsilVsys amounted TO sl45,056,0 900
OF this sun 43t per cent. was paid to
the men who work and manage the
lines. In the United States the per
centage of gross earnings paid in wages
during the same time was only Al per
cent. The difference of y per cent. is
not the result of Emergencies in the
rate of pay, but is to be ascribed to the
fact that 10 large sections OF the United
States the population is much denser
than it is in Canada the trains there
freight offers according to the length OF
line, and the same operating force takes
care of heavier volume of business.
| When it is remembered that the state OF
New York has population as large as
all Canada the situation in this regard
may be realized. When it is urged
that the pay on Canadian roads should
be as high as on those in the neighbor-
ing parts of the United States some
things are forgotten. That, however, is
aside. Canadian roads must pay ap.
proximately the same as those over the
border or they will not retain good men
When, however, they have to increase
the rates of pay for their men, and fol-
their supplies, faster than they eau in.
crease their traffic and traffic earnings
they find their financial position grow
| ing weaker. The estimate is that in
twelve years up to 1910 the cost Of
labor on the Canadian railways increased
by 80 per cent, that of supplies, ma
terial and equipment, exclusive of lum.
Der, by "A per cent, and that of lum,
Der by IS per cent. The companies
have been able to maintain their stand
ing by the large and effective expendi
ture of money on track and rolling
stock equipment. Tracks have been
Strengthened and doubled, the grades
Oh them reduced, aud the lines laid
with heavier rails. Bridges have been
strengthened. The power of locomo.
tives and the capacity of cars increased
till trains freight tonnage is almost OF
| quite double what it was score OF
years ago. The benefit has not all been
to the railway share aud bond holders
Rates have been reduced by some
fractions of a cent ton mile, hat
seems nothing stated by itself, but that
multiplied by the tens of millions of tons
carried a mile means a large saving to
those who pay transportation charges.
The roads, however, cannot continuous.
ly go on spending money on improve.
ments and increasing wages and opera
ting outlays and maintain their fran
cial standing unless they can also in
crease their earnings in proportion near
to that of the growing demands upon
them. The calculation is made that
the increase to the trainmen just recon-.
mended by the board of Cancellation
when conceded, and made the basis Of
concessions to other branches of labor
will raise the percentage of the cost o.
wages on Canadian roads as a Who'll,
from Az to about 54t per cent. of tn,
gross earnings. Business men will ap