New-York tribune., 1921-05-26
Railrrlerl DENY
Union Charges
OF Collusion
II. Z. Crowley, of N. Y. c.,
Tells Federal Examiners
Reason of High Costs
i'm Outside Repair Shops
Strictly Business, He Says
Asserts Roads DO Not Count
ON Profit or Overhead
When They Do Own Work

contentious OF railroad employees
unions rhae the railroads of the coun-
try entered into collusion to increase
their operating and repair expenses
to justify reductions in wages on the
ground that profits were diminishing
were denied by Patrick g. Crowley,
vice president of the New York Cen
trail. at a hearing yesterday before ex-
aminers of the Interstate Commerce
Commission.
Mr.. Crowley was cross~examlned by
Richard E. Gregg. attorney for the
railway brotherhoods. The brother
hoods brought about the investigation
through charges that the railroads
might save $1,000, 100000 year by do
ing their own repair work and through
other economies. Mr.. Gregg introduced
AS evidence several pamphlets prepared
for the unions. One was entitled I'm
employment as n Method of Debating
Control in the transportation Indus
try"
These were intended to show that
the railroads, instead OF repairing To-
comotives at their own shops, sent
them to locomotive works controlled
by. banking interests, where higher
prices were paid
Asked specifically If he knew of any
sollusion between the New York Cen
tral and the outside repair shops, Mr..
Crowley asserted emphatically that he
did not. He testified that outside or
0ers were placed only when it seemed
apparent that the company could not
handle the work in its own shops.
n "a
by John L. Rodgers, mechanical engi-
neer for the Interstate Commerce Com
mission. and W. B. O. Stevenson, eX-
aminer of accounts for the commission,
tending to show big increases in the
cost Of repairing New York Central
locomotives in outside shops. Mr..
Stevenson computed the increase in
cost of repairing 195 locomotives at
IS ,169322, his contention being that the
New York Central paid that amount in
excess of what it would have cost to
repair the locomotives in its own shops.
The reply OF the railroad to this charge
was that interest on investment, cost
of machinery and general overhead were
not included in the cost of doing their
own repairing.
Cross examined by Clyde Brown,
general counsel for the railroad, Mr..
Gregg admitted that a pamphlet pre-
sented in behalf Of the unions and en-
titled "The Outside Repair of Locomo-
tives and Freight Cars" had been tax en-
from a speech delivered by Senator
Robert M. La Toilette before the Senate
Interstate Commerce Committee and
was not composed of facts gathered by
the unions.
"Then you do not know personally of
the accuracy of these facts?" asked
Mr.. Brown.
Mr., Gregg said he did not, but pre-
sumeu they were correct.
M. Brown attempted to show that as
the facts were compiled by Senator
La Toilette they were not relevant to
the hearing and he asked that they be
excluded. The pamphlets, however,
were permitted to remain in evidence.
Mr.. Brown, after the hearing, ex-
planned the position of the railroad. He
said:
"The New York Central does not
operate it's shops to make any profit. 1t
is merely matter Of keeping its eu.ip-
ment up to efficiency, and hence VIC
only charge against the repairs the
actual cost of such repairs, including
cost of labor and cost of materials.
Costs of equipment of the shops, of ma
chinery, and interest on investment are
not included. Such charges are in
ciuded in the costs of repairs made In
contract shops who do that work for a
profit and it is not fair to say, for ex-
ample, that the New YoE Central shops
can make repair for 81 900, as against
a charge of $1,000 or more, in an out
side shop"
The examiners, who have been n,eet-
ing IN the assembly room of the Mer-
chants Association, will continue tAeir
session to-day in the Grand Central
Terminal Building.