South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-09-15

anu general managers ABOVE REFER
red 70. and who will be directly re-
sponsible 10 the director general. All
ambiguity of obligation is thus
avoided The officers Of the corpora
tions are left free TO protect the in
terests Of their owners. stockholders,
and creditors. and the regional and
operating managers have a direct
and undivided responsibility and al
leEiance 20 the United States rail-
road administration.
I'm pursuance OF this policy the
regional directors. the federal man
ayers, and the general managers
have been required 10 sever any re-
lations they may have had with the
railroad corporations as either Off
GERS or directors, and the corporate
officers have been advised that they
have no function 10 perform with
respect 70 government operation.
MANY Of the former corporate
officers have been appointed as Off
Gals of the United States railroad
administration, whereas others have
elected TO remain as officers of their
corporations.
IT has been made clear that the
fullest possible cooperation is de
sired between the government Off
GERS who operate the railroads and
the corporate officers who repre-
sent the stockholders"
Salaries and Force Reduced.
Tho report asserts that in thus re-
organizing the operating force it has
been possible without any impair
ment of efficiency TO reduce both the
number of officers required and the
aggregate of the salaries paid them.
4 table is submitted showing that
under private control 1926 officers
drawing salaries of $1,000 a year or
over were employed. The aggre-
gate of their salaries was s21,32O,-
1S7. Under government control l.,
925 officials are employed drawing
salaries Of $1,000 year or over.
The aggregate of their salaries is
$f6.705,29S. and the saving shown
amounts TO 1854 per annum. This
total includes the officers of the
central administration in Washing
ton.
A reduction i'm the legal expenses
Of the railroads amounting TO ap-
proximately $500, OtO annually has
also been effected by the elimination
of a number of men formerly en-
ployed in the legal departments. a
reduction in the salaries OF others.
and the transfer of the general
counsel of various roads from the
operating pay roll TO the pay rolls
of the corporations. It is believed
that efficiency has in no respect been
. lessaned
The report contains an interesting
statement with regard to the salar
les paid. which reads as follows:
Under private control. salaries
as high as 100000 per annum were
paid 70 officers Of railroad corpora
tions Under government control
the highest salaries paid are 10 the
regional directors COT whom there
are but seven) and these salaries
range from $4,000 10 $4,000 per
annum This reduced compensation
has been fixed for regional direc-
tors Notwithstanding the increased
responsibilities and duties of these
directors as compared with road
corporations
The reduction of s4.614SS9 per
annum i'm the aggregate of the sal
aries paid TO the more responsible
officials has not been effected by
forcing the experienced men ap-
pointed by the United States railroad
administration TO accept salaries in
commensurate with their responsi-
bilities, although in numerous in
stances these salaries are substan-
TALLY less than those they had been
earning as officers of the railroads
or could earn in private employ
meut I have felt that it was not
only equitable but necessary that
they should be justly remunerated,
and that the rewards of brains, in
dustry, and loyalty should be suffi-
cient 10 continually attract able men
10 the service of the railroads as
their life's work II Is not a Ques-
ton merely of operating the rail-
roads during the period OF the war
this requires. it is true. the best tai
ent that can be secured if the pres
ent extraordinary demands are TO
be met-but IL is a question of the
post-bellum period as well, when
railroad work must continue 10 be
sufficiently attractive TO draw con
stantly 10 il men OF the right quail
ity and caliber. Unless the ranks
are uninterruptedly recruited with
such men it will be impossible TO
maintain the efficient organizations
which are essential to the succe SIS
ful management ard operation Of the
railroads OF the country.
The salaries paid under govern
control TO the higher officers should
be sufficient 20 make the juniors
realize that the promotions and re-
wards Of a railroad career are still
worth working for and that they
viii he commensurate with those Of
private enterprise and industry
The Contract"
NIr McAdoo touches briefly upon
1.-The much discussed contract be-
tween the United States railroad ad-
ministration and the corporations
He saws that he is glad 10 feel that