The Topeka state journal., 1921-04-25
HE DENIES CHARGE
President of Pennsy Makes
Statement on Shop Repairs.
Answers Charge That Road
Sent Work to Outside Shops.

Samuel Rea. president of the Penn
sylvania railroad, has authorized the
, following statement in connection with
recently published accounts of alleged
high prices paid for the repair of rail-
road equipment in outside shops:
From March 1. 1920, when the
Pennsylvania railroad resumed the
management of its property, to De-
cember 81, 1920, locomotive and
freight car repair work done outside
the railroads own shops has amounted
to about per cent of the total cost
of this work.
Locomotives and car repairs. from
March 1 to December 1, 1920, cost the
railroad approximately Si4O, 100000
of which SS,200,000 was for repairs In
outside shops. In other words, out of
every dollar spent for repairing Penn
syIyania railroad. cars and locomotives,
about 6.2 cents was spent for outside
work.
Statement From Union Machinist.
TN newspaper articles published
few days ago, William H. johnston,
international president of the Ma
chinists' union, is reported to nave
said:
''OnIy recently the Pennsylvania
railroad, in having 200 locomotives
repaired in the Baldwin shops, spent
$4,000, 900 in excess of the cost II the
road had done the work itself. Be
y
in rebuilding obsolete locomotives that
originally cost $4,000 thirty-three
years ago.
'.The total number of Pennsylvania
locomotives repaired under contract
was 200. On the other hand, 5,16O
locomotives were given classliieo re-
pairs in the railroads own shops In
addition to a very much greater num-
ber of locomotives that were given
lighter repairs requiring more than
tWenty-four hours work each. All the
locomotive repair work on the Penn
sylvania during this period cost Siy,-
k112SOO. out of which approximately
S4.5OO,OOO was for outside contract
work.
motive repaired in outside shops was
s12.661.13 and the highest $29,S36.lO.
The oldest locomotive repaired was
thirteen years old, and the newest, one
year old. instead of being thlrty-tnree
years old and obsolete. The smallest
locomotive repaired weighed 235,OOO
pounds, and the largest 435,eOO
pounds The. original cost of the
cheapest was $19.S13; and the most
expensive sS3,56O instead of $4,000
as quoted above.
Few Freight Cars Sent Out.
"rhe number of freight cars re-
haired outside was approximately
$500 as compared with a total or
1,415,435 freight cars repaired in the
PENNSYLVANIA own shops. The cars
repaired at outside plants were all
heavy repairs, whereas the above fig
ure for cars repaired at the shops of
the railroad includes heavy and light
repairs. All the repair work to Penn
sylvania railroad freight cars during
this period cost SCI, 100000, of which
approximately s3.7OO,OOO was for
work performed under contract In out
side shops.
THE fact is that the direct labor
cost of doing this work in outside
shops was much less than in railroad
shops For instance: Direct labor
required to repair 3,066 of these cars
in outside shops cost s6Os.494. The
same work in railroad shops would
have cost the Pennsylvania railroad
s1,O00,SeO.
1.-The labor cost outside was 40 per
cent less. Outside concerns paid their
men on a piece work basis. Under
the so-called national agreement the
Pennsylvania had to pay it's men by
the day.