The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-05-16
RA|[ROAD'S SIDE HAS
BEEN HEARD BEFORE
SENATE COMMITTEE
Public May Gasp When Labor
Has Its Livingstone Inter-
eSting Figures Are Given
BY HUGH w. ROBERTS
Washington Bureau The Age-Her,
500 Davidson Buil

500 Davidson Building
Washington, May Special 1T
has often been said, whether truthfully
or not, that railroads water their stock
TO pay dividends. and provide handsome
salaries for general officers. The in
vestgation of the national railroad
problem by the Senate committee on
interstate commerce. has brought to
light the alleged fact that for salaries
of all general and division officers of
all the railroads, railroad Golfers were
touched" in 1920 for less than $50, 000,-
600.
In that same year the railroads paid
in wages nearly $3,500,000,000.
1t is true that up to the present time
only the railroad side of the story has
been told. When the other side. that
represented by labor, is unfolded, there
may be other exposures capable of
making the public gasp. The sole wit
ness to date has been julius Krutt-
schnitt chairman of the board of di-
rectors of the Southern Pacific railroad
1t was he who furnished the figures as
to wages and salaries.
He filed the following brief with the
committees;
THE labor bill of the carriers in 1916,
took effect. stood at s1,46S, 576,3y4.
in 1917 when the Adamson law was
in effect, the aggregate compensation
of the employees of the carriers Of Class
/ amounted to $3,7S9 4S2, 14S, an increase
over 1915 of s270.905,74S.
This was increased by the railroad
administration in 1918, so that the labor
cost for that year was $2,613, S12,351 or
an increase over 1917 of $S74331,209.
This was further increased by the
railroad administration in 1919, SO that
the labor cost for 1919 was $2,S4S.12S,
432, or an increase over 1918 of $229-
315,0S1, and an increase over 1917 of
s1.1oS,s $3.50. and oyer 1915 Of 1854
552,03S.
This labor cost for 1919 was further
increased by the railroad labor board
in 1920, so that the labor cost for 1920
was $S,69s, 216,3 $751; or an increase over
1919 of $685., OS7,919.
1.-The figures given are actual. The
increase made in 1920, however was in
force only a part of that year
1.-The labor costs. including switching
and terminal companies for 1920,
s3,742,4S6,936. For 1919 they were ST.
S6S,672,2S4. an increase in 1920 over 1919
of $S73,814,652.
1.-THE figures In the operating stats
tics now under consideration from the
interstate commerce commission in
CluQe the revenues anu eApcHScS, III
Guiding labor costs. of switching and
terminal companies, and accordingly
the figure of increase in labor cost in
1920 over 1919 is sS73.S14,6b2
IF the increased scale had been in
force during the whole year of 1920 the
wage bill for 1920 would have been APP
proximately $3.50. 900 900.
This means that the labor costs to
the carriers of Class / were actually
greater in 1920 than in 1917, by more
than 115 per cent, and that If the In
creased scale had been in effect during
the entire year 1920 the increase would
have been about 1913 per cent.
1T must be noted that during the
same period the gross revenues of the
carriers Increased less than 81 per cent.
TT will also be noted that since the
government took charge of the labor
costs by the Adamson law In 1915 the
labor costs have been increased by gov.
eminent action by s2,22s.63s,s57 the
total for 1920 being $3.SsS,21SS51. and
that before the government took charge
the entire labor costs amounted to
$1468,576.3S4.
'Manifestly tho burden of these in
creased costs could not end with fed
eyAl control, but must be passed on to
the owners with the return to them of
their properties"
Inecompliance with the request made
Kruttschnitt presented to the commit
tee table showing in detail what sums
had been spent for railway operating
expenses and taxes in each year from
1917 to 1920 inclusive. Senator Kellogg
had requested especially that the ex-
hibit show separately the sums expend-
ed in payment of salaries of general Of
ficers. division officers and for the
/. wages of all other employees, and that
this also be shown in the form of per-
B centafe expended for each item out of
each dollar expended
The calculations furnished by the wit
ness show a progressive increase for
each year in the items for operating ex-
penses, taxes, and for the total of the
two. The following table gives the fig
ures for the lowest point Q917) and
the highest point $500.
Item. 1911 1920.
Operating expenses ...........
$2,S29.325.124 $5.76s.720. ola
Taxes 800. 213,920,095 27S,S6S668