Catoctin clarion., 1921-05-19
NO. 10
RAILWAY INQUIRY
IN WASHINGTON
Excessive Labor Costs and Work.
ing Conditions Chief Causes
of Trouble.
NO CONTROL OVER EXPENSE
Prices and Wages Fixed by Govern
ment Leave Little Scope for
Management.

Prices and Wages Fixed by Govern
ment Leave Little Scope for
Management.
Washington, u. C.-In testifying be-
fore the Senate Committee on Inter
state Commerce in the general inveS-
tigation into the railroad situation,
Witnesses for the railroads contended
that:
Cd The costs of operation are alb
normal. owing chiefly to wage scales
established by the government which
exceed wages paid for similar work in
other industries, and to wasteful labor
costs, often for work not done, en-
forced upon the railroads by the so
called "National Agreements"
2) That 911a cents out of every
dollar of operating expenses in 1920
were at prices fixed directly by the
government, or by general market con-
ditions and over which the railroad
Arrangements had no control.
CD That the general business de-
preston was not due to the high
freight rates but to the lack OF buy
ing both here and abroad.
One of the most striking facts
brought out in the testimony present
ed by the first witness, Julius krutt-
schntt, chairman Of the board of d.
rpctorS of the Southern Pacific, was
the following, In explanation of the
chief reason for the increase in op-
Grating expenses since 1915:
The labor bill of the carriers in
1915 (Which was before the AdamsOn
law took effecD stood at 81, 46S, ,576 1894.
In 1920 it was S3,69S, ,216,35l, an in
crease Of DDS, ,S39957.
"The increase by years since 1915
has been as follows:
Increase in 1917. S270 ,9o5, ,74a
Increase In 1918. .......... S74, 4,331 ,209
Increase In 1919. 22e ,o81
Increase In 1920. .......... e55 5,087,919
or an aggregate increase
.since 1916 of ........... So, ,229 ,839,o57
Exhibits We're placed before the
committee showing that for the rail-
roads of the whole country, increased
expenses In 1920 over 1919 were as
follows:
Actual expenses for 1920 Sc, 1863, 1876, ,341
Actual expenses for 1919 4,667,7 4,131
Inc for 1920 over 1919$1 ,4s5, ,364,21o
Mr.. Kruttschnitt, In showing how
little control the railroads had over
necessary expenditures, said:
"Sxty-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 fxed
by the government.
"Three and one-haf cents out OF
every dollar was paid for other ex-l
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
Iy fixed by the government.
"The remainder, up to 97E 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
l. The Pere Marquette Railway was
compelled to pay ss,364 in back pay
to four employees because their titles
under these agreements were changed
by a decision of the Director General.
while the nature Of their duties and
the volume of their work remained
the same.
O. car repairsr on the virginian
Railway was paid $1,000 for work he
never did. He was laid off 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.
g. 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.
matter how Ss few . hour; n hey ,s, sr.,
six months of 1920 cost the railways
S. 500 900, or at rate OF SIS, 900. 900 a
4. On the Chesapeake & Ohio Rail-
road piecework car repsirers decreas-
ed Ala per cent and airbrake repair
erS J3.4 per cent III eIncleHcS uHueT
guarantee OF a fixed minimum rate
per hour.
s. 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 31.9 per cent and the output
was cut down "a per cent and in IA
coach cleaning yard at Denver the
time required was increased 38.Ssper
cent and the output decreased 2s per
cent.
6, Southern Pacino employees,
whose sole duty was to keep watch
on stationary engines and to stop the
engine in case anything went wrong,
were recassified by Director General
as electrical workers" one man on
back pay of S2,3S1 another $2094,
another 81 ,OO9. another $20o3. and sig
others amounts varying from $1.be0
tc $1,000.
rules OF the shop crafts, In order to
change a nozzle tip in the front end
of a locomotive it is necessary to call
a boiler maker and his helper to open
the door, because that Is boiler max
ers' work; to call pipeman and his
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
to be employed for putting in the new
tip.
Questioned by Senator Poindexter,
Mr.. Kruttschnitt stated that those in
stances might be increased indefinite
ly and were characteristic on railroads
of the country, as result of the
"Agrecments" left over from federal
control