Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-06-20

ingly difficult conditions that have been
created by the war.
Finds Co. operation
"In the last two or three months l
have come in contact with practically
all of the federal managers operating
the railroads for the government. and
I have been highly gratified to find how
honestly they are in accord with me in
trying to give to the public the best
service and in trying to find every rea
sonable opportunity for economizing
and reducing the cost of railroad opera =
tion.
"Another very important matter from
the standpoint of the railroad admin
istration, and also frbm the standpoint
of the public is this question of the
present deficit which the railroad ad-
ministration is incurring in operating
the railroads. Last year we had a
deficit for the twelve months of 1918
of 1926 900 900, and in the first four
months of this year we have n deficit
{ of $3.50, ,000, 900, making a total deficit
for sixteen months of $4S6. 900 900. An
explanation briefly OF the deficit tof last
year is. that we had twelve months of
increased expenses on constantly as
cendng scale and only about six months
of increased rates. We also had the
worst winter in the history of the
country. These adverse factors re-
suited in our revenues being S236, =
000, 900 short of our expenses, and
the rental which under the act of
Congress is to be paid to the railroad
companies by the government during
federal control.
beginning this year, all these ex
penses which had been growing rapidly
and steadily last year, had reached vir-
tually the high level so that we started
in January with expenses at probably
the highest level that they are likely
to reach. certainly in the near future
Along with that we had sudden droI
in business due to the fact that hos
tilities had terminated, war activities
were rapidly ceasiDg and there was
not any immediate resumption of peace
activities.
"The people were consuming the
stores and material that had accumu
lated during the war and were refrain
ing from buying new material. That
sudden drop in business constitutes one
of the important reasons for the deficit
which we are now suffering. The rela
lively higher cost constituting the other
reason, is perfectly apparent, when We
find that the wages which are being paiC
to the railroad employees are on au
average about 80 or 53 per cent in ex-
cess Of what was being paid in De-
cember, 1917. | think there has beer
quite a disposition to assume that the
railroad administration has been i'm
provdent in granting the increase in
wages.
'Yet when you take the average and
not extreme eases, and when you find
the increase has been only 50 or SO
per cent, and when you compare that
With the increases which have been al
fowed wages in other lines of industry
and also the cost of living, I think what
has been done by the railroad admin
istration has not been out of line with
what has been done elsewhere and is
no more than was reasonably necessary
to meet the increased difficulties which
grew out of the war conditions and the
increased cost of living with which the
employees were confronted. Along with
that increase of 80 or SO per cent in
wages we have had an increased cost
of 80 to 40 per cent in material in
1919 as compared with the latter part
of 1917. The railroad administration
Just like every other business has been
confronted with its own high cost OF
living and that cost of living suggested
BY the fisslres have given, 81 or 53
per cent wages, and 80 to 40 per cent
increase N materials, has been Offset
only by the increase of 20 per cent in
rates.
25 Per Cent Not Enough
st is reasonably clear, i think, tC
everybody that % per cent increase
! In rates will not take care of perhaps
an average. of AZ or As per cent in
crease in expenses, including both
wages and materials, unless there is an
exceptional increase in business, which
can be done at an exceptional profit ;
and instead of an exceptional increase
In business, we had an exceptional de-
crease in business. l have heard il
stated number of times and / believe
! il is true, although have not had an
opportunity TO check the figures, that
when yon consider the price paid for
!. .sxorything else, the values that are EN-
josed b5 every srticle transported by
* = a - AZ