Graham guardian., 1921-05-27
20 over 100 a. .4o5 asa a1o

Inc. for 1920 over 1919 81 ,4s5, 1864, ,21o
Mr.. Kruttschnitt, in showing how
little control the railroads had over
necessary expenditures, said:
"Sixty-four cents out of every dol.
lar Of operating expenses were, in
1920, paid out to labor, and the wages
of labor are fixed by the government.
Fifteen cents out OF every dollar
Of operating expenses was paid for
materials and supplies at prices fixed
by the government.
"Three and one-half cents out of
every dollar was paid for other ex-
penses incurred by the government In
the first two months Of 1920.
"a total, therefore, of S21a cents out
of every dollar of operating expenses
for 1920 was paid out at prices direct
ly fixed by the government.
"The remainder, up to 97N cents,
was for materials and supplies, pur-
chased at prices fixed by general mar
ket conditions and beyond the power
of the railroads to CONTROL"
To illustrate how labor costs were
inflated by the National Agreements
entered into during federal control,
fixing rules and working conditions,
the following examples were cited:
/. The Pere Marquette Railway was
compelled to pay $9,364 in back pay
to four employees because their titles
IL haa
by decision OF the Director General,
while the nature of their duties and
the volume of their work remained
the same.
Railway was paid 81 900 for work he
never did. He was laid of with other
employees because there was no work
for him to do. When he became en-
titled under his seniority rights" TO
be re-employed, he received back pay
and overtime.
8. The Shop Crafts Agreement pro-
vides that when employees are re-
quired to check in and out on their
own time they will be paid for one
hour extra at the close OF each week,
no matter how few hours they may
have worked. This rule in the first
six months OF 1920 cost the railways
$1,000, or at rate OF $4,000, 900
year
4. On the Chesapeake a Ohio Rail.
road piecework car repairers decreas-
ed Al. per cent and airbrake repair
ers 3S.4 per cent in efficiency under a
guarantee of fixed minimum rate
per hour.
g.. On the abolition Of piece work
on the Union Pacific Railroad in the
wheel shop at Omaha. Nebr., the time
required for the same work was in
creased 3l.s per cent and the output
was cut down "a per cent: and In a
coach cleaning yard at Denver the
time required was increased 3s.s per
cent and the OutDut decreased "a ner
cent.
8. Southern Pacific employees,
whose sole duty was to keep watch
on stationary engines and to stop the
engine in case anything went wrong,
were reclassified by Director General
y as electrical workers." one man on
the Salt Lake division being given
back pay OF s2,3s1, another s20si,
another $2,009, another $2,003, and six
others amounts varying from $500
to 81. 800.
Z. Under tho present classification
rules OF the shop crafts, In order to
change a nozzle tip In the front end
of a locomotive II fs necessary TO call
boiler maker and his helper to open
the door, because that is boiler max
ers' work to call plpeman and his
helper to remove the blower pipe
because that is pipemen's work: and
call a machinist and his helper TO re-
move the tip, because that is ma
chinists work; also for the same force
70 be employed for putting In the new
tip.
Questioned by Senator Poindexter,
Mr. Kruttschnitt stated that these In.
stances might be increased indefinite,
ly and were characteristic on railroads
of the country, as a result OF the
Agreements" left over from federal
control.