The independent-reporter. [volume] (Skowhegan, Me.) 1909-1955, 1910-08-04


What has recently been advanced
In behalf of United States railways
claims to an increase In their freight
charges, has been illustrated In the
case of the Canadian roads In con-
nection with the late award OF the
board acting under the Cancellation
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 added the cost OF
fuel and material, In the production
of which the cost of labor is a main
factor, 1t may be said that there Is
no business which pays out 30 large
a proportion of Its gross receipts to
the actual worker as the railway.
Some statements just issued illustrate
the point. In the year ending with
June 80, 1909, the gross earnings OF
Canadian railways amounted to $l45,-
056, 900. OF this sum 43k per cent
was paid to the men who work and
manage the lines. In the United
States the percentage of gross earn
ings paid In wages during the same
time was only Al per cent. The diff
ference of 2k per cent Is not the re-
suit of Emergencies in the rate of
pay. but Is to be ascribed to the fact
that in large sections of the United
States the population Ia much denser
than 1t Is In Canada; the trains there
as a rule carry more passengers,
more freight offers according to the
length of line, and the same operat-
ing force takes care OF a heavier vol
M htro In
bered that the state of New York has
a population as large as all Canada
the situation In this regard may be
realized. When 1t Is urged that the
pay on Canadian roads should be as
high as on those In the neighboring
parts of the United States some things
are forgotten. That, however, Is
aside. Canadian roads must pay APP
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 for their supplies, fast
err than they can increase 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, material and equipment,
exclusive of lumber, by A per cent,
and that of lumber by 65 per cent.
The companies have been able to
maintain their standing by the large
and effective expenditure of money
on track and rolling stock equip
ment. Tracks have been straighten
ed and doubled, the grades on them
reduced, and the lines laid with heay-
Ter rails. Bridges have been strength
ed. The power of locomotives and
the capacity of cars increased till
trains freight tonnage Is almost or
quite double what it was a score of
years ago. The benefit has not all
been to the railway share and bond
holders. Rates have been reduced by
som fractions of cent a ton a mile,
that nothing stated by itself,
but that multiplied by the tens of
millions of tons carried mile means
large saving to those who pay
transportation charges. The roads,
however, cannot continuously go on
spending money on improvements and
increasing wages and operating out
lays and maintain their financial
standing unless they can also in
crease their earnings in proportion
near to that of the gfowing demands
upon them. Tho calculation Is made
that the increase to the trainmen just
recommended by the board of con-
ciliation, when conceded, and made
the basis of concessions to other
branches of labor, will raise the per-
centage of the cost of wages on Cana
dian roads as a whole from 431S to-
about 54h per cent of the gross
earnings. Business men will appre
ciate what that will mean In Its eff
feet on the net earnings. A large in
crease in the cost of working the
roads cannot be considered alone. II