New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-05-21
Roads Plead
II or Free Hand
To Help Trade
Cannot Meet Reviving Busi-
Ness Needs Until Costs
Are Cut and Restrictions
Eased, Asserts A. III. Smith
Some Rates Out Of Line
Defends Use Of Outside Re-
pair Shops; Time System
Impaired Company Plants
From Tho Yribune's washinoton suream

From The Trfbune's Washin1ton Bureaw
WASHINGTON, May Cove have
got TO change conditions on the rail
ronds or we can't go on A. H. Smith,
president of the New York Central
Lines, to-day told the Senate Inter
state Commerce Committee in answer
to questions of Senator Cummins,
chairman. Costs must come down and
the roads must not be tied up so tightly
If they are to be profitable, he said.
"Buainess will pick up" said Mr.
Smith, land the railroads will not be
ready for the revival. We have not
had chance to get any fat on US for
twenty years. We have not had the
opportunity that other industries have
had to accumulate surplus for rainy
day. We should now be getting our
plants in condition to handle the future
business CO the country, but we cannot
do il because we have not got the
nsensy and we cannot earn !t,n
Senator Watson, Of Indiarn, wanted
to know II tho decline In traffic resulted
from Increased rates or a falling off In
industry.
1t was due to the industrial! sltu.
alton, Mr.. Smith answered.
Buyers Strike Caused stagnation
"The state OF mind Of the paopis
wha great factor" the witness added
industrial gtagnntion was brought
about by the fact that many persons
held off from buying In the hope OF .
reduction in prces.'
Mr.. Smith said that regulation Of the
roads had tended to 60 too far. Be
suggested that rates should BIO 40
Justed.
Senator Watson asked wnather the
New York Central would mako money
If 1t operated on maximum traffic with
exlstlng rates and costs in effect.
"You can't do 1t because the costs
are TOO high" replied MIR. Smith.
He said some rates should be re.
increases had thrown part OF She tariffs
out Of line. but there could not be q
EdncrSl reduction until expenses were
reduced and the carriers assured OF
coming money
Mr.. stnsss..,. eaid that in the locomotive
shops Of the New uraaI CsNt-el ccmpil-
etions showed that there was decrease
Of 20 III per cant man an hour in the
output Of employees the last ak m onths
o. 1920, 20 compared with the first six
months Of 1918.
He said that in the first si, moGths
OF 1918 IL required one man 1874 hours
TO produce 1000 shop miles, which Is
tho yardgtlck Of efficiency in the repair
ing Of locomotives. The first half OF
1919 this had been increased to 184.s
hours, and In the ArBt half OF 1920 il
WA 1889 hours, For the last six
months OF 1920 the labor had Increased
10 l62h hours, which was an advance
&C 80.l hours, Or 34h per cent, COM
pA2ed with the first six months Of Fed
eral control of the railroads.
Time Basis Called Inefficient
Mr.. Smith said this was the result of
the abolition Of piece work and the in
lection OF rules whereby two men were
required to do work form arly performed
by one, cas- we'll as the hundreds Of
thinga that have been injected into
this work since the war began" A man
will not perform as we'll when MS work
is measured by time as when it is
measured by performance
Senator Wolcott of Delaware in
quired II Mr. Smith knew who issued
the various Railroad Administration
orders,
81 hold no brief for the Railroad
Administration" said the Senator, "but
there is tendency to blame the ad-
ministration for the superimposing of
various orders to which objection is
now being made"
"Mr. McAdoo Is not s railroad man