Evening journal., 1920-06-08
REDUcINc RAILWAY ExpENsEs

ffFFrdE question has been raised hdiNay Age
"ss to why, II government management was respon-
sble for part OF the increases in railway expenses
Will not be practicable under privae management to
effect large reductions expenses. Under Government
operation the expenses OF the railways increased
about 60 per cent The expenses in December i97 were
S52OooOOo at the rate Of about s3OoOOoO0Oo year.
while in January 1890 they si5O00OO0 at the rate
OF approximately s5OOOOOOOOO year The railway com
panes seeking In rates have based their cacu
aons the additional needed largely upon
the operating expenses incurred during the closing months
Of government operation"
The Age asserts that much to make increases
expenses that ought be made than 30 get rid OF
them after they have been made. To what have been
due the in operating expenses which have oc
CURED since government operation adopted2 In the
hearings before the Railroad Labor Board of the
spokesman OF e labor organizations have sought DO give
The impression that they have been due more largely in
proportion to other expenses than to advances
in the wages reductions the hours OF work OF the
employees
The operating expenses of the railways broadly
dyisibe into three casscs-nrst wages second
OF fuel and Of materials and supplies The paid in
December. 1877 were s530oOOoO. while those paid in
January 1920 s25s0OOO0O OF 6s per
The differences between these amounts the total
operating expenses incurred in the months give ap
proximatey the amounts spent in those months for fuel
supplies. The Of fuel and materials
and supplies in December, 1917 WAS therefore approx
matey s99OO0OO0 and in January. 1920 approximately
Si57OOoOOO which shows increase in them OF just
about co per cent
The Increase in the pay RON was partly to the
abshment OF the eighthour day which cannot be un-
done which resulted OF 10000 in the
number OF employees but principally to advances in
wages
The result OF the increase in the number OF employees
is that substantially less freight tralc is being
handled per employee than before government operation
adopted. Cannot the railway companies remedy this
condition? They undoubtedly can, but II Will take time
and what is equally pertinent, It will require large ex
pendltures Of capital Before government operation was
adopted the traffic handled by the railways in
proportion to the number Of men they employed
steadily increasing This principally due to the fact
that they investing capital in the railway plants
all the time for the express purpose OF increasing the
amount handled in proportion to the number Of
men employed.
Between 1907 and 1917 the Increase in The investment in
the railways per man employed was $1,000 Meantime the
number OF passengers carried mile per employee an
nuay 81 per cent and the number Of tons car
ried mile per employee increased 81 cent Reduc
tons in grades elimination Of curvature from track, en-
arsemen of terminals provision Of larger cars and more
powerful locomotives enabled the railways laey TO in
crease the amount Of rae handled per per locomo
tive and per train, and these things which enabled
them handle constantly increasing business In pro
portion 10 the number OF men employed.
Increased efficiency In The use OF fuel and materials and
supplies viii be chiefly dependent like increased efficiency
in the OF labor, upon improvements in the physical
properties. Reductions for example which have been
made In the number of tons Of coal required to handle
given OF passenger and freight traffic have been
chiefly due 10 increases ia the tractve power and i'm
provanenis the design and equipment Of locomotives
But the acquisition OF larger and better locomotives in
wolves an increase the capital invested in the railways
In discussions OF tho need OF the railways for raising
large amounts OF new capal practically al the stress
usually put the fact that they need TO raise capital
TO increase their facilities The great economies in opera
uon in the future will depend as in the past they have
depended upon the ability OF The railways to make i'm
provemenis which essential for the sreatest eeonony
in the use OF labor, fuel and materials.