South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-04-24
PRODUCTIVE EFFICIENCY AND
WAGES

A sequel 10 the suggestions ad-
vanced by Rev. J. c. McGinn. c. :. c.,
of the sociology department OF Notre
Dame university. addressing the AS
ISOLATED Charities. Wednesday night.
promises 10 materialize late this month
when the board Of arbitration having
TO do with the Western railroad wage
cases. hands down its decision. If the
expected happens a new era in rail-
way wage rating viii result. The
case involves dispute between 50
Western railroads and their $4,000
engineers and hremen.
Discussing the fundamental prin-
ciples OF sociology" Rev. McGinn
makes the statement that the malad-
justment Of our economic system is
the cause OF much Of our poverty and
that the prevention OF poverty de-
mands social Intervention, which is
fundamental sociology most surely
He adds that compensation laws
have become essential 20 a modern in
dustrial Justice; that the wear and
tear OF the human machine is just as
tear OF other machinery; that il is
time 10 give some attention to this
factor Of industry. instead OF all TO the
capitalistic factor; that labor should
not be left 20 shift under old rules Of
competition. which capital for itself
comedies TO be ruinous. We may not
be giving it i'm exactly Rev. McGinn's
words but we think we have his idea.
There is nothing essential in mod
ern wage determination 10 prevent
toilers receiving an economically just
reward for their services. Laborers
In the past have been forced 20 bargain
for work under unfavorable condi-
tons. as students of economic distinc-
ton have long recognized The work
ers OF the Western railroads, howel er.
seem 10 have hit upon a new and
novel idea. and if the arbitration
board in control Of their case. should
decide according 10 the possibilities,
a new precedent will have been estab- !
lished that viii make Henry Ford's
philanthropy appear comparatively |
superfuous. save as an experiment.
In this case. which is the second |
brought under the revised Erdman ar
bitration act. now known as the New !
lands act, the workers have injected /
the principle that they are entitled to |
wage increases on the basis Of pro /
ductive efficiency" in other words. /
that their compensation should bear /
some relation to the increased earn /
ings which come TO the roads by rea-
son Of increased efficiency on the part /
of machinery and labor.
During recent years the Western
roads have made extraordinary gains
in operating efficiency. They have
used more powerful locomotives.
larger cars. Longer trains, and 10y elm
mating curves and reducing grades.
have increased 10 a tremendous extent
freight-train loads. an of these
changes bringing marked increase in
the labors and response. sities of en-
ginomen and dremen The Brother
hoods claim THAT the increased pro-
ductivity of the railroad plants was
accomplished hy decrease i'm the
costs Co the roads Of engineers and
hremen. All this means that the re-
cent wages were well below the in
craasIne other costs of running the
railroads
If the arbitration board should ac-
Cept this principle of productive eff
cheney" IL means that a new era in
the fixing of railroad WAGES has be-
gun This principle amounts IN es-
tabHshine the right of workers to p
propo~tionafe sbore in tho urofts ~