New-York tribune., 1920-02-29


Ausuussuu
Offset partly the aggregate increase II
cost. The fact is that the cost which
is paid by the public certainly would
not be diminished through increasing
the rates."
Operating Cost Not Excessive
Mr.. Hines gives figures to show that
the cost of operating the railroads
unit Of production. has not been
excessive when compared to that in
other industries, pointing out that the
increased cost ton of steel in 1918
as compared with 1914, was 81 per
cent, while the increased cost unit
of railroad service in 1919, after an
other years Increases in wages had
been absorbed, was so per cent.
In summing up tho service which the
the public, the Director General points
out that there has been an increase of
passenger traffic OF nearly 10 per cent
year for some years, with practically
no additions to equipment for the
last two years, and that crowding
and some discomfort have been in
evitable. In spite of this there has
been an increasing success in running
the trains on time, and it has been
PoSSipIe " TcSloIc a kOOO uSaI OIL LEe
service which was dropped under war
conditions.
The freight service Of the year was
hampered by serious fluctuations. but
Mr.. Hines reports decrease in the
car shortage and greater speed in
operation, with less congestion and
delays. He points wixh special pride
to the work done in the distribution
OF coal during the strike, and to such
things as the progressive increase in
the heavier loading Of cars, and speed
in settlement of claims.
100 Per Cent Wage Increase
The general increase in wages. Mr..
hines reports, has been about 100 per
cent when taken on the rate per hour
basis, but he points out that the gen
eral reduction of hours from ten to
eight has resulted in the average earn
lngs the employees increasing con-
siderably less than this amount This,
ne declares, is not excessive, pointing
to the steel industry, with an increase
of 120 per cent, He denies that there
has been any over-manniig of the roads
under Federal control, and shows that
the actual number of hours worked on
the roads-not the number of en-
pioyees-was slightly less during 1919
than it was in 1916 or 1917. The in
crease in the number Of employees he
charges to the eight-hour law.
Several benefits TO labor under tho
government regime are pointed out
First is mentioned that of assuring the
employees against favoritism and arbi-
trary action, through the cultivation of
better spirit among the minor excel
tlves, and providing bipartisan boards
for the adjustment of such grievances
as have arisen. Another has been in
cultivating cooperation with the unions,
and third in the recognition of col
Aectlve bargaining. He points out that
tf$re has not been single authorized
strMe railway employees under Fed
eral control.
cat this time very large ex-
penditures are called for on the rail-
roads in che public interest to increase
their efficiency and enable them 10
meet the growing demands for trans
pGrtation," he says. He explains that |
expenditures for this purpose by the
railroad administration were kept /
down, first by wax conditions and
lately because OF the knowledge that /
The roads were soon to be returned to
their owners. There also was a
shortage when the government took
control, he adds, owing to difficulties
he owners of the roads had met in
1916 and 1917.
Large Expenditures Necessary
"Unless the railroad companies shall
DC able to adopt and enforce the i'm
ocrtant indications of facilities and
equipment and control in the common
interest Of the handling of business
IN times Of stress" he says, "thc
available facilities and equipment
Will turn out to be wholly unequal to
the requirements of the public. Even
with substantial continuance of all
he important methods of unification
md common control, the necessity for
cry large capital expenditures, both
# way and structures, and for new
Equipment will be very great"
Among the unifcations which Mr
lines believes should be continued by
ne private owners he lists the
methods developed for the regulation
md diversion Of heavy traffic, the dis
ribution of cars and locomotives to
'oirts neede1 and especially to spe-
'ial industries, the consolidation of
terminal and repair facilities. the
pooling of lake and tidewater coal
track roads as a double track system.
The roads, he says, "have de-
rived important advantages" from Fed
arai contro. and are being returned to
their owners "at time when condi-
lions are working distinctly in favor
OF satisfactory operation" He also
says that the claims that have been
made to the effect that the railroads
Will be turned back in broken down
condition are wholly without founda-
ton, and that they "have been func-
tioning successfully during the present
winter, despite its abnormaly severe
character" He reports that, on the
general average, he believes the govern
ment has closely complied with it's OBJ
lgation to return the roads in as good
condition as when they were received
as to maintenance of way and struc-
lures. He sums up the results of
Federal control as follows:
1T made practicable war transpor-
tation service that could not have
been otherwise obtained its unifca-
tlon practices have increased the utili-
zation of the adequate supply of equip
ment so that an exceptionally large
transportation has been performed in
the busy periods of 1919 with q mini
mum OF congestion; it met the emer-
gency OF the unprecedented coal strike
IN a way which private control could
not have done and absorbed q heavy
financial loss on that account which
would nave proved hig~y disturbing
10 private control; it provided more
additions and betterments and eouin-
ment than private control could have
provided during the difficult financial