Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-01-09
Companies Are AbundantIy
Able to Pay Increased
Wages Asked by Engineers,
Firemen and Holsters,
ARBITRATION HEARING
IS DRAWING TO END
Question Of Earnings Is Fully
Discussed by Expert StatiS-
tiCian for Unions; Watered
Stock a Figure,

the arbitration under the Newlands
net of the wage demands of engineers.
iiremen and hostlers Of ninety-eieh
railroads is nearing its close. Testi-
mony for the men it is expected Will
be finished next week and then the
Presentation OF the railroad side Of
the case will begin.
What, from the standpoint Of the
men. is regarded as one Of the most
important pieces OF evidence present
ed since the hearings began more
than a month ago. was presented to-
day by W. j. Lauck. statistician
who completed -four DAYS of testimony
Of a highly technical nature.
The testimony bore ON the ability
of the railroads 10 pay the increases
asked by the men. Lauck stated that
they were abundantly able to do so.
basing his statement on the volumin-
Gus array of figures from railroad re-
ports to the Interstate Commerce
commission.
Railroads Able TO PAY.
Lauck declared that forty three
representative railroads could deduct
a proper profit on their Investment in
bigger engines and ears. reduced
curves and grades. and the like and
still have $50, 600 left each year
to pay the men for the increased
share they have bad in heaping up
earnings. and "a an emergency re-
serve fund. lie stated that the ratio
would hold good for al the railroads
involved
on this basis il was calculated
roughly that all the railroads involv-
ed are earning $4,000, O00 a year on
increased efficiency of equipment, road
bed, grades and labor. Accepting the
rough estimate Of the railroad man
ayers that the advances would cost
them $4,000, 900, Lauck figured that
the advance could be met and hand
some margin left for the emergency
fund.
Estimate Too Large,
As matter Of fact, Warren $.
Stone head Of the Brotherhood of Lo-
comotiVe Engineers. contends that
$50, 900 is too large an estimate.
at is too large for the reason that
some of the advances We ask are
punitive--designc to make the rail-
roads work more men and save the
men from the health wrecking hours
they have 10 work" Stone explained
to a reporter
He said that he had never attempt
ed to calculate exactly what the ac-
tual cost to the railroads would be.
Lauck placed in evidence an ap-
of the cost Although
Stone said that the Increases asked do
not amount to 25 per cent Lauck fig
ured that this percentage would cost
railroads St9,442,000, or
LA per cent of their operating reye-
nue.; 199 per cent of their operating
expenses, or 2.9025 per cent Of their
surplus.
Cross-eXamination by Shcchan.
James NJ Sheehan, attorney for the
maintained a cross fire Of
questions throughout the day. but
formal crosse examination was reserv-
I'd for next Monday His questions to-
hat i'm calculating gross incomes the /
same dollar figures, in certain i'm
stances, in the earnings Of "a given rail 4
road and again in the income of any ,
other railroad owning stock in the /
one first mentioned. He claimed that I
his was offset by The enormous wealth .
n coal and timber land of certain (
ines. but which are given merely .
nominal valuations in reports TO the /
interstate Commerce commission.
Timber lands ai' ne way from I
cortland TO San Francisco are owned 4
~ The Southern Pacific and are not /
,eing developed they are simply be-
ng held for Increased values. said +
he witness
simply Took OH Lands
Warren $, Stone, who rcprescnla
he mon said ne southern Pacific
must have paid lof hs oil lands ~
0me time but auck answered
mo. the1 didn't pay for them lhey
imply o0k ltm lie continued
Tho santa ro mad ana tha Auh
u Pacific ar bold|na ~ Wd Hm
,er laadH 100 lIe ~ EnHam rqn
ray ig hW 1hct aro WORTH hpn
Ireda af muHu Den nHE nompi .
pme appu IN iHei ma0k
lu bis eia- amuaNan fN Mn
aWMfd H WHNalim ta HaHf
snh ih. H.ruH HNft ~ lar
00o.l N0WH wynn h nfo
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