The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-19
VIII Eliminate All Overtime
and Punitive Overtime Pay
to Labor on Roads.
DAY TO BE EIGHT HOURS
Plan to Be Started in West
and South by Hiring Moro
Men and by Reductions.

on n trip to the West and South TO put
into effect radical changes Just decided
upon. The changes include elimination
Of all overtime and punitive overtime
payments to railroad labor through linn
iting the day to eight hours by hiring
additional employees. drastic curtailment
of addition and hetterlnent proposals to
the harest minimum and reduction TO
considerable extent of the equipment
programme.
Tho news regarding the marked
changes in policy OF the Railroad Ad-
ministration leaked out yesterday fol-
lowing Mondays conference between
Walker u. Hines and the regional di-
rectors at the Grand Central Terminal
1t was reported there that about two
hundred and nifty thousand oars are idie
on this country's railroads. that the de-
nett In railroad operating income IN
January and February contrasted with
rental obligations was close to 500, 0oo,-
900 and that saving In operating ex-
penses OF as much AZ 10 per cent. could
be effected by cutting out all overtime.
Regarding overtime swttchmhn's
case was cited. Prior to assumption of
Federal control a switchman received
t66 q month for a ten or o twelve hour
day. With the grant OF an eight hour
day two switchmen rounding out the
twenty-four hours in equal shifts would
earn sass q month. BY putting on an
additional employee. making the three
work eight hours each, the total pay of
the three would be sass a month. making
q distinct saving OF 81 month or 4
per cent. In other branches of railroad
service the saving to the Railroad Ad-
ministration will be relatively greater.
1t has been asserted frequently that
labor did not care for a real eight
hour day, but was glad to get overtime
and punitive overtime. The effect of
the Administrations policy in reducing
the hours OF work to eight hours is the
sirst real test OF the labor situation.
II It goes through, it was said yester-
day, a long step IN the direction OF re-
ducing the number of unemployed Will
have been effected. with an actual de-
crease IN cost of railroad operation.
English Roads semi-ParaIysed.
Sir Eric Goddess statement in the
House of Commons on Monday that the
English railways, after four years of
Government war control. are in a semi
paralyzed financial condition" and that
the Government Is now losing 1880. 900
a day In operating them, confirms re-
ports that American railway officials
and bankers have been receiving from
their correspondents abroad.
salient facts as to the plight OF the
English roads, which might have been
repeated here had i've year Federal
control been adopted. were given yes
terday by Frank H. Fayant, assistant to
the chairman of the Association OF
Railway Executives, who recently re-
turned from Europe, where he made an
investigation OF the effect OF the war on
the railways OF England and France.
The English railway employees in
GLIDING workers in coal mines and in
dustries supplying materials TO the roads.
have, in effect. confiscated the property"
said Mr.. Fayant THE whole English rail-
way system to-day is potentially bank
rupt. The burden OF meeting the deficit in
operation and paying the rental to the
owners Is being carried by the public
treasury: that is. the increased labor
cost is being met by the English people
through taxation.
when the English Government took
control of the railways for war pur-
poses in 1914, guaranteeing as rental TO
the owners the pre-war net Income. the
annual receipts were $3.50, 100000 and
the operating expenses $3.50. 000. 600. of
which $3.50. 00o 600 was the payroll. s25.-
o0O. O00 covered taxes. and s155. 900, 900
paid for coal and materials. This left
net income OF S250, 1000, 900 to pay inter
est and dividends on invested capital.
giving a return to the owners of less
than per cent
English railway wages before the
war were very low. too low for decent
living conditions. At that time the av-
erage annual wages earned per en-
ployee We're less than $3.50. while In this
country our average was then more
than $500. The rapid rise in the cost
OF living and in wages paid munition
H.
English railway men. The Government
attempted to deal with the problem by
giving war bonuses based on the rise
In the cost OF living. Tho workers
gladly accepted the money. but they OBJ
jected to the way ii was tagged. They
wanted wages that would continue after
the war and not bonuses. The Govern
ment accordingly dropped the word.
Made Identical Wage Advances.
Instead of giving larger increases to
less we'll paid men and smaller increases
to better paid, as our Railroad Admin
istration has been doing. the English
Government gave identical increases to
all employees Beginning in October
1914, and running TO November. 1918,
there were eight successive wage In
creases varying from shillngs to 8
shlllings n week and totalling SO slil-
INKS, OF sI.4O. lntSe lHNIedSts lIl thS
weekly wage added S275. 900, 900 10 the
ne yroll. Then at the end OF the war
when Lloyd George Appealed to rIie coun-'
try for a vote OF confidence, the railway
unions made a renewed demand for an
eight hour day. Lloyd George granted
the demand and this added Sl25. 100000
more to the payroll. making the total in
crease in wages $500, 100000 or l60 per
cent
This brought the payroll up TO $780,
200. 00o. compared with total railway
revenues before the war of $3.50. 900, 600.
There was also as in this country, n very
lerge increase in the cost of coal steel
End other ma terials. which added si4O,-
600, 900 more to the operating expenses.
The greater part OF this item, of course,
is made up OF increases in wages to coal
miners and steel workers. The increase
in the cost Of materials added TO the In
crease In wages brings the operating
expenses OF the English roads up to
1870. 100000 year. Including the
rental or the interest on the investment.
the total cost of producing transporta-
zion is 1,2o0. 900 900 a year, compared
with $3.50 900 900 before the war. an
increase OF about so per cent. There
has been no increase in freight rates In
England TO meet the great increase in
the cost OF operation. Passenger fares
were raised so per cent. early in the war.
more for reducing travel than for pro-
ducing revenue. The increase In pas
scnger rates has probably added $780,
000, 900 10 the revenues, bringing them
up TO S7sO,000. 900.
THE gross receipts Of the English
A.. flar mn