New-York tribune., 1921-03-20
naaior Asserts Reduction
of Expenditures Is Only
Way to Solve Pressing
roblclns of Carriers
Sweeping Federal
Inquiry Demanded
Both Executives and EN-
ployecs To Be Asked
How Outgo Can Be Re-
duced Without Increases
BY Senator A. B. Cunarnins
IysdS1usax, Senate I,,teretztA Com

- N'~A1o@O1 ~. Ds NllfUH0nS
SSsdsrnsan, Senate Intevetate Com.
aserce Comn,;ttcc
o. ONE way must be found TO rednce
the operating expenses Of the
roads. That is the immediate and
psessing problem to be solved. 1t is
sbout the only thing within present
reach Of legislation which can be done
g help the situation of the roads. In
crease OF revenues through revival Of
business, of course, is somethinr he
yond the reach Of Legislation. Further
increase in the rates is out of the
question. sA'
It is my intention to Offer q resolu-
ti0n as soon as the extra session opens
which will authorize tho Interstate
Ssommerce Committee to make thor
ough inquiry into railroad affairs, 1
expect to see such An investigation
bro9gns about. The purpose Of It will
happened to the roads in the past year..
y will be directed to the question Of
Why the cperatinE expenses Of the
roads are as high as they are and how
1ney can be reduced. The Testimony
q the railroad executives and other
omcials viii be obtained. as we'll a
evidence from the Interstate Commerca
commission, from employees OF the
xoaos, from shippers and, in fact, from
any one that may be interested.
Beiieves operasing Expense
Can Be Cut Is Per Cent Next Year.
I believe ths legal authority can be
found 70 require the railroads to pur-
chase their supplies and material ii
common and stop competitive bidding
1Gainst each other. However, I do not
believe this will prove to be NECESSARY.
N my opinion, the operating expenses
q the lines can be lowered 25 per cent
!n the next year. This will come about
IN part through reductions is wages
and the reductions in tho number Of
employees and in part through the de-
cHnes which are now going on in the
prices Of materials.
The difficulty with any plan to force
the roads to buy supplies and equip
M,ent IN. common is that it would mean
long step toward government owner
ship. That Congress has the power to
require It, believe, though there are
some close legal questions involved. Il
to select = committee which would do
the purchasing for the roads under the
control Of tho Interstate Commerce
Commission and allow. to each system
the supplies or equipment deemed
necessary. Obviously, il such step
should be taken it would go SO far
toward abclishing the competitive sys-
tenn that 1t would come within close
range Of public ownership and opera
fion.
The increase in operating expenses
- r4o
eating aspects. In 1920 the roads paid
for maintenance Of way and structures,
including labor and supplies therefor,
81 ,O83, ,S81. In 1919 they paid out
Tor the same item total Of $778,340,-
IN 1920.
The cost Of maintaining the equip
ment, which includes the making Of re-
pairs, in 1920 was $1,584 ,406, 900. In
increase Of about $3.50, 900 in 1920
/. above 1919.
Take the iter Of transportation,
which Is largely made up Of the cost
Of labor. In 1920 this amounted to
81, ,907, 100000; in 1919. 1t was 32,l92,-
100000. Hero is an increase of over
$700, 100000.
Three Items Of Operation
Increase Billion in Year
These are not all Of the items that
60 to make up the operating expenses
Of the roads, but it will be observed
that IN these three items alone there
{ IS an increase in expenses of about
5 $1,000 100000. Not all Of this increase
~ any means can be charged to labor.
When one Yooks at these figures he
does not need to wonder that che roads
are falling short in their net revenues.
It is important to find out what is
the cause OF these large operating ex-