Evening journal., 1919-08-25
WHO mas BEEN DOING ruE ~ExpLolrNGg"


closing their testimony for the Plumb plan before
the House Committee in Interstate Commerce the
spokesmen OF the railroad broherhoods made whole
sale attack upon the financial management Of the rail
They conended that under private control the
railways financially msmanaged TO secure excessive
pronts for their that these excessive profits were
made at the expense OF the public and the railroad en-
poys and that therefore the government should buy the
railroads and virtually turn them over TO the employees
to
The Railway Age in editorial in It's current issue
shows in reply 10 the charge that the railroad com
panes have exploited their employees that during the
last nineteen years while the number OF railway em-
poyes has increased only SO cent their total annual
compensation has increased 39i per cent Such state
ment and The comments thereon should be 0f interest 10
the people OF Delaware.
nineteen Wars ago" says the Railway Age, tho
wages Of railway employees wero about siOOOooO0
year than the operating income, which represents
the profits OF the companies. In the year 1919 ue COM
pensation OF the employees Is running at the rate OF
81 a00OoO0oO than the return guaranteed by tho
government TO the companies which is based upon the
average operating income actually earned IN the years
1915 1916 1871 The Increase in tho wages OF the em-
poyes since 1900 four times as great boih
absolutely and relatively the increase In the operating
income OF the companies Since the labor agitaors In
dulge in so much wild talk about exploitation VINO 40
these figures indicate has been doing the exploitinsT
OF the Plumb plan based their arguments for 1t in the
hearings the Railway Age points out was that the
operation Of the railways by private companies Tor pr-
yatc profits results in the public on The one nand ana
the railroad employees the other hand being eApoieu
TO get huge profits for the private owners II inns con
iention Is based upon experience and not upon theory II
must be possible to show that under private ownership
and managemcn the railroad owners actually have re
ceved large increasing profits while in order TO make
these profits they have exploited the public by charging
"A ever higher and higher and exploited the en-
ployes by keeping down reducing their wages
The Railway Age publishes table showing that in
The wears 1900 10 1919 the book Of railway road and
equipment increased from siO963OOO0O0 to approximately
ss5ooOOOOoo or so per cent The increase in operating
income-which is the amount from which all interest
and dividends must paid and oil earnings used Tor nm
nroycmenls must be tsken-Nas from SiUOoD TO
soi7O0OoO this being the operating income on Whch
the guaranteed return 10 the companies IS based or 70
per cent Meantime the number Of railroad employees mas
increased from i0i763 20 sis71i or ~ per cent ana
their total compensation rer year from s5I'OoOO to
s2s5O00OOo an increase Of s2257OoOO0 year, or S9i
per cent
"Nhai has been happening to the public meantime?
asks the Railway Age. "The statistics Of the Interstate
! Commerce Commission show that the average receipts
per ton per mile declined from 10 mills in 1900 to 10
mills in 1917 and that there was slight decline IN e
average receipts per passenger mile The public was
charged lower rates at the end Of this period or seven
teen years than at its begnnng and the average wage oi
railroad employees had increased 70 per cent
"since 1917 under government operation, the total
number OF railway employees has been Increased ABOUT
per cent while the total wages paid to them have in
creased at the OF 63 per cent per year Mainly IN
order n nay this advance the public has had
is passenger rates increased 80 per cent and s freight
rates at least 2j per cent aud II is defraying huge ran
road deficit from taxes.
@Iet us consider the statistics regarding capital re-
r- and wages in connection with statistics showing inc
service rendered TO the public In the last nineteen years
m ,e have seen the book Of road and equipment has
about so per cent and the operating income re
coyed hy the companies about qS per cent The number
30 tons carried one mile has increased 6O per cent ana
h number NJ passengers carried mile about sO per
con, Tho trslc handled annually for the public ha'ns
increased almost twice much in proportion as the DooN
s, ~ road and equipment and the operating income ot
Tho comnapies follows that the capital cost Of moving
! ton ono mile a passenger one mic Is now un'S q
little more than half what 1t was nlne~eh Years 'su'
,a,ime the annual compensation OF railroad empoyes
hos Increased 3o per cent In consequence the labor cost
:, ,ov,ns a ton one mile and passenger one mile IS
! , ,,oro than twice as much It was nineteen years
| age. a., ,,i.,i..
FAR he Il from the Railway Age 10 say the statistics
rssc,ted aboy,, show that railway labor has been eN
nIotns The public But IL II cannot truly be sara lla
i,,,,, labor has been exploiting the public durns nne
~ o,rs when the labor cost Of moving ton ono mile
has more than doubled surely II cannot truly be sad tha
a,irosd capital has been exploiting the public When j
D be shown during the period the capital cost OF
s,r !. ton one mile has been reduced by almost halt.