The New York herald., 1921-06-03
FRIDAY, JUNE 3. 1921.
Revitalizing the Railroads.


Horseback opinions of what the
wage reductions will do for the rail-
roads vary widely because numerous
factors enter into the new situation.
There are not merely the lower scales
TO be considered; there are the
changed working conditions to go
with the scales. And this means not
only the elimination of useless men
but overtime and other extra COM
rensation for the remaining men
computed on the new basic scales.
The whole saving from what the
roads were paying out under the
former wage scales and working con-
ditions should be gigantic.
The roads already have diminished
their working forces by an estimated
100000 men. Part of this reduction
In on account of slack business, part
is on account of the inability or un-
willingness of the carriers to do at
wartime imitation costs any main
tenance work that could be post
poned. So the wage reduction aver
aging II per cent. does not actu-
ally apply to the 100000 men before
employed with total wage payment
TO them of roughly four billions of
dollars year; it applies to about
100000 workers averaging $4,000
year. If half the unemployed men
n ,-n n l,n ocfn IN hn
will apply to some 100000 men.
At the old average Of pay this would
mean a IL per cent. reduction on
some s3,600,000,000, or a direct pay
reduction of some $430,00000O. But
this does not cover all the actual
saving. nc 100000 men who averaged
$4,000 year are to be dispensed with
permanently this means another
s400 100000 off the former payrolls
which spelled ruin.
Furthermore, the 100000 men on
the payrolls after July 1 under the
new scale and working conditions
will be getting less overtime and
other special allowances than under
the Government operation system
with its abuses and waste. The $S
q day man who under the outrageous
Government operation scheme got
perhaps SIC for nine hours work on
the theory that 1t was two shifts"
will be more likely now to get regu-
lar pay for eight hours and time and
? half for the extra hour. The new
basic wage with the IL per cent. re-
duction would be about 81 instead OF
So. Time and half for one hour on
this 81 basic scale would be about
s1.32 and the total for the nine hours
would be $S.32 as against the before
mentioned SIG.
In some respects therefore, not |
only because of the useless men that
can be dispensed with under rational
working conditions but because Of
the rational method of figuring the
extra compensation of those that are
left on the payrolls. this particular
readjustment is likely to prove quite
as important in money saved among
some OF the departments as the &C.
tual wage reduction itself.
AS for the receipts of the roads it
is tradition that in lean years or fat
years January, February and March
are bad railroad months. Many OF the
great carriers in normal times make
virtually all their earning between
June 1 and December so The next
half year therefore, even without a
national industrial boom, can put an
entirely new face on the whole rail-
road situation.
Undoubtedly this is why President
HARDING, the Interstate Commerce
Commission and the bigger calibre
Of railway managers already are con.
sidering, even arranging, to lower
traffic rates where they are now so
oppressive as to prevent freight from
moving. thereby killing both the bust.
ness OF the railroads and the bust.
ness OF the country. The railroad
man knows that when his road Is
hauling empty cars, whatever the
rate. II Is on the down grade 10 ruin.
The rates must go down, and labor
costs must go down with them. until
both the railroads and the country are
again on sound American basis.
In successive steps wages must get
down much lower, retracing the route
by which they went up, before the
great days Of low cost freight and
low cost passenger transportation arc
restored to the American people.
Our American Eirc Tranal..