The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1915-03-03
In the West Declares Grand
Chief Engineer of Brother
hood Of Engineers.
tsr Assoe,ArKp'rrEsa, /!

CHICAGO, Mar. a. Warren S.
Stone, grand chief engineer .of the
T Brotherhood of Locomot iFe Engineers,
has submitted to the: board Of arbi-
.tration which is hearing the western
railroad wage case, a statement in re-
buttal to the testimony of the rail-
road managers, IN which he charged
that the issuance Of fictitious securi-
ties had absorbed past, present and
future revenue gains Of the western
railroads, and that s here.is no hope
for the railroad employees to secure an
equitable participate in the fruits
of their labor so long as the present
financial control and administration
Of the railroads is unregulated."
Mr. Stone pointed out that the em-
ployes' organizations found economic
justice for their demand for increased
wages In the productive efficiency Of
their work, but that the constant con-
tention Of the railroads in reply to
this argument was that revenue gains
arising from increased productive
efficiency were absorbed by increased
operating costs and by the payment OF
interest charges on additional capital
investments which have been incurred
in the attempt to develop greater
efficiency in operation, and because Of
public demand as to safety and quail
ity Of service
1T is now our purpose to disclose
that amy decline In operating or net
income has notgbeen due to the causes
set forth by the railroads said Mr..
Stone. Statistics already read into
the testimony by the employees had
shown. he SAID. the remarkable gains
in raj road revenue and the amount
available for the increased compen-
:sation OF labor. . 8 s.,;.ss
We shall show he continuedy
(. that the constant tendency mas been
for those in financial control OF the
railroads to absorb revenue gains
arising from increased productive
efficiency by the issuance Of fictitious
securities. that the productive eff1c-
iency of the men working today, the
operating officials as we'll as the enl-
-ployes, had already been hypothecated
and apitallzed before we We're born;
that measures have already been
taken by the issuance OF fictitious cap
italization to absorb the increased
work and productive efficiency Of our
children and our child ren's children;
and that there is on hope for the en-
igineera and fireman and other classes
of railroad employees to secure an
equitable particip ation in til fruits
of their work SO long as the present
financial control and administration
Of the railroads rs unregulated In
other words. that any advances which
the mployes5 have beensab to obtain
inwages or earnings have been OF no
financial significance as compared
with the indefensfble absorption. OF
operating gains by th g financial man
agement of western railr Dads.
Final ~, We shal show that IL
gains from past productive efficiency
had been properly conserTeds and ads
ministered, enormous advances could
he granted to al u classes or railroad
employees, both organized and sunor-
gained, with tout prejudice to the i'm
8terests OF the owners OF the property.
and the financial Il; status OF western
railroads today from the investors
standpoint would be all that could be
desired
The points we shall submit in this
connection are:
irst, That the proceeds from the;
munfficient grants OF land made by
the federal and state governments to
assist in the bull ding Of western rail-
roads; were not properly used, but
their value, az well as the Increased
business ar ising from the develop
Ement or western terrtt tory, as cap
italized the aotat ion tious'
;aesond. q cial