Evening journal., 1921-03-31
RAILWAYS BEING RUINED.


N the railways OF Canada as well as Of the United
iaes are being financially ruined by the wages and
ug conditions established American railways is
con.ended by j. L. Payne OF ottawa Canada in an article
in the current OF the Railway Age Mr. Payne was
for many years Comptroller OF Statistics Of the Depart
ment OF Railways Canals OF the government Of Canada
and only very recently retired from this position
Mr. Payne points that the Canadian railways since
the adoption OF government control in the United States
have been forced to make the advances in wages
and changes in and working conditions that have
been made in the United States He summaries ihe
Canadian railway situation as follows
The truth is slowly dawnlng upon the people OF
Canada that % the railways in very grave trouble
2 that this trouble has its foundation in the rising rato
cost gross earnings 3) that the higher operating
cost is due in large TO the scale OF pay to rail-
way employees 80 that the scale unreasonably high,
M that wages might be reduced to the rates paid TO other
skilled and unsked workers without injustice to rail-
way men"
The government owns operates 81 cent Of The
total mileage Of the railways OF Canada The government
railways are ncurrng large and rapidly increasing
deficit and Mr. Payne quotes from recent report by
Major Graham A. Bell, Deputy Minister Of Railways, in
which Major Bell shows that on the Canadian National
one OF the units the system out OF every
dollar earned i9i79iS 80 cents paid out in wages
in i9si9i9 proportion 81 cents, and in i@siSo
IL had grown to 76 cents"
One Of the remarkable features OF the situation in
Canada is that Hon F. B. Carvel chairman Of the Domin-
ion Board OF Railway Commissioners, which corresponds
10 the Interstate Commission Of the United
states recently speaking out very vigorously
regarding the railway situation. Mr.. Payne quotes him
as saving OF the changes and working con-
ditions by Drecor-Gcnera OF Railroads McAdoo in 1913
he MoAdoo award Is OF the most niquitous pieces
OF legislation ever fosted the United States nat
award was not good judgment on railway econ
omics nor good business principles II was merely
offered and adopted a vote catcher.
at affected the Canadian railway situation because the
railway employees Of Canada threatened general strike
unless they benefited to The extent as did railway
men in the United states The FIRST MoAdoo award meant
an increase in wages the extent Of 100000 for EN-
ployes OF the Canadian National railways alone and this
was followed by another increase amounting 10 Si3,-
10000 Last July Wages to railway employees In Canada
were Increased about sSOOOoOOO the Canadian Pacific he
ing called upon to pay S2 10000 The fact that Ue
increases were made retroactive to May, 1920, made
difference OF S9OOOOOOO back pay which not earned
THAT Is the why you paying higher freight
rates. The thought has been nculcated in the minds OF
sborng that they not to give service for money
received want TO wages go back to the scale
OF 1914 but want to give value for pay received
Mr. Carvel added that III business keeps dropping on as
II has during the last two months am afraid that the
Canadian Pacific will not be able to dividends this
year" The Canadian Pacific has long been paying ten
per cent
Mr. Payne says that recent developments in the rail-
way situation and especially information regarding the
huge deficits being incurred by the government railways
have caused sensation Canada. He says the people
are awaking to that III the railways break down
there will be universal stagnaon" and he adds, hC
actual conditions today suggest that possibility"