The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-09-09
Reports Increase in Economy
Also Made Through Gov
eminent Control.
WANTS MEN EXEMPTED
Denies Lack Of Transportation
at Mines Has Hindered
Output of Coal.
Special Despatch TO TIE suS.


omy and higher efficiency than was
shown by private operation. according to
report on the flrst seven months OF
Government control made by Director
General McAdoo to the President. The
Director-G General says:
"A daily increase in facility and EN-
cheney Is noticeable and I am confident
that the railroads will shortly be in a
condition to meet any demands that
may be made Of them IL needed motive
power already ordered can be secured
and II the necessary skilled labor is not
withdrawn for military and other pur-
poses. These are very serious phases Of
the railroad problem"
The Director-General is making siren
uous efforts to prevent the further with
drawal of skilled railroad operatives by
the draft, and the question OF exemption
Of such men is now before the President
Denies Coal Mines Lack Cars.
Tho Director General challenges state
| ments that have been made from tho
l
| Association and other sources that coal
production was limited by transporta-
ton. He said: THE country has been
led TO believe that coal production is
limited entirely by transportation ana
| that any shortage is due to the rail-
| roads. This Is error. The maintenance
of an adequate coal supply depends in
| the first instance upon production. which
in turn is restricted by shortage OF labor
| and other causes aside from transporta-
tion.''
One OF the principal economies effected
in Government operation, It is pointed
out, is a saving OF s4,614,sS9 in the ag-
gregate OF the salaries paid to the more
responsible officials of the railroads
Under Government control the highest
| salaries paid are those given the re-
| gional directors. each OF whom Is draw
| ing from $4,000 to $4,000 year
Though other salaries are not specifically
| mentioned, II is understood they are in
proportion. Separation OF a number OF
highly paid executives from the operat-
| ing end OF the railroads and consolida-
| ton OF offices brought these economies.
Despite the fact that men like A. II.
! Smith. regional director; Hale Holden
and others suffered a cut in income. the
| railroad salaries paid are regarded as
-
| Is running all Of the lines under Gov
| eminent control. Is receiving $4,000 a
year as Secretary of the Treasury. and
nothing as Director General of Rail-
| roads. His advisers and assistants In
| the Railroad Administration are receiv-
| ing In many insta noes higher salaries
| than he is. The division heads OF the
| Railroad Administration are receiving
| $4,000 year. The report states:
The reorganization of the operating
| force has been made without any I'M
! pa!rment OF efficiency and with re-
| duction in the number OF officers re-
CURED and In the aggregate of the
salaries paid them.
s4,614,ssO Salary Saving.
| This shows that under private con-
| troll OF the railroads 2,325 officers draw.
! ing salaries OF 5000 year or more
were employed, with aggregate salaries
of s2l.320.lS7. Under Government con-
troll 1926 officials "a reduction OF 400
are doing the same work and the aggre-
gate of their salaries Is SIS. 705 ,29S-a
saving of s4,614.Sss per annum This
total includes the officers of the various
regional districts as we'll as those of
the central administration in Washing
ton. except the Director-General himself,
who receives no salary.
| The reduction OF s4.6l4,SSe Der
annum In the aggregate OF the SALARIES
| paid to the more responsible officials
| has not been effected by forcing the ex-
perienced men appointed by the United
States Railroad Administration to ac-
| cept salaries incommensurate with their
responsibilities, although in numerous
instances these salaries are substantially
less than those they had been earning
as officers of the railroads or could earn
In private employment. 1t is no, only
| equitable but necessary that they should
be Justly remunerated. and that the re-
wards of brains, industry and LOYALTY
should be sufficient to attract continually
| able men TO the service OF the railroads
as their lifes work. It is not a aucs-
ton merely of operating the railroads
| during the period of the war-this re-
quires, II Is true, the best talent tina
can be secured If the present extraord-
| nary demands are to be met-but II is
n question OF the post-bellum period as
we'll when railroad work must continue
to be sufficiently attractive to draw con-
stant!y to II men of the right quality ano
| calibre Unless the ranks are un!nter-
ruptedly recruited with such men It will
be impossible 10 maintain the efficient
organizations which are essential to the
successful management and operation OF
| the railroads of the country.
The salaries paid under Government
control TO the higher officers should be
! sufficient to make the juniors realize that
| the promotions and rewards of rail.
| road career are still worth working for
| and that they will be commensurate with
those OF private enterprise and industry
Taken over I'm Poor Condition.
ITO plan tho Federal organization an,
| select lts personnel has OF course re-
quired time. When the Government tool;
control on the first of January. 1918, the
railroads were in deplorable condition
Added to an unusually severe winter
the motive power was seriously crippled
and on the Eastern lines traffic was
badly blockaded by the congestion OF
/ unloaded cars at the terminals and else
| where"
The Director-General presents figures
TO show increased efficiency that the
railroad men OF the country who wer.
operating the lines n year ago. declared
to be impossible. Their position was
that no Government agency could oper.
ate the lines to better advantage thar
the men who had given their lives tC
the work, The report indicates that
revenue ton miles OF the roads has beer
substantially increased, train loads and
car loading increased and the revenu,
ton miles for locomotives increased
through higher freight rates and pas
senger fares, restriction of unnecessary
passenger travel, uniform freight classi
fcation, the abandonment OF com
petition, the consolidation of ticket off
ces abridgment of time tables, elimina
ton of unnecessary time tables. con