The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1921-06-16
RAILWAY INQUIRY
IN WASHINGTON
Excessive Labor Costs and Work
Ing Conditions Chief Causes
of Trouble.
NO CONTROL OVER EXPENSE
Priees and Wages Fixed by Govern
msnt Leave Little Scope for
Managements.


ment Leave Little Scope for
Manaoements.
washington, ID. C.-In testifying be-
fore the Senate Committee on Inter
state Commerce In the general inves-
dgation 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 50
called National Agreements"
(2) That ON cents out of every
dollar Of operating expenses I'm 1920
we're at prices fixed directly by the
government. or by general market con-
q tions and over which the railroad
arrangements had no control.
(3) That the general business de-
preston was not due to the high
freight rates, but to the-lac of buy
iAg both here and abroad.
One Of the most striking facts
brought out In the testimony present
ell by the first witness, Julius Krutt-
f'hnitt, chairman Of the board Of d.
r'ctOrS Of the Southern Pacific. was
the following, In explanation Of the
chief reason for the Increase In on
Grating expenses since 1915:
"The labor bill of the carriers I'm
1916 (Which was before the Adamson
law took effect) stood at 81, ,46s, ,578, 1894.
In 1920 1t was $3,69S, ,216,351, an in
crease Of $2,229 $780, ,957.
"The Increase by years since 1915
Eas been as follows:
Increase in 1917. 1910. COS. .74s
Increase I'm 1918. ......... s74,s31 .2oe
Increase in 1919. ......... 22e, ,315 .oa1
increase III 1920. ....... 55,o87, ,s1s
or an aggregate increase
since 1915 or. ~, ,22s, $50 ,o57
Exhibits were 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. SO, I 163, 1873, ,a41
Actual expenses FOR 1919. 4,667,774,131
Inc. for 1920 over 1919. 81 ,4s5 1854, ,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-hslf cents out Of
every dollar was paid for other e1-
penses incurred by the government In
the nrst two months OF 1920.
"A total. therefore, Of S2h cents out
of every dollar OF operating expenses
for 1920 was paid out at prices direct
Iy fixed by the government.
"Ths remainder, up to s7H cents,
was for materials .and supplies, pur-
chased at prices fixed by general mar
kst conditions and beyond the power
Of tho railroads to control"
To illustrate how labor costs were
inflated by the National Agreements"
entered into during rederai control,
fixing rules and working conditions,
the following examples were cited:
1. The Pere Marquette Railway was
compelled to pay 1884 in back pay
to four employees because their titles
under these agreements were changed
by decision OF the Director General,
while the nature OF their duties and
the volume Of their work remained
q. car repairer on the virginian
Railway was paid $1,000 for work he
never did He was laid of with other
for him to do, When he became en-
titled under his seniority rights" to
be re-employed. he received back pay
;. The Shop Crafts Agreement pro-
vides that when employees are re-
quired to check in and out on their
hour extra at the close Of each week
no matter how few hours they may
nave nir 0mths worked L., ,p1d ibis rule in the nrst
Ss6Oo.ooo, or 81 rate of $la.OOO.OO0
=. On the Chesapeake & Ohio Rail-
road pieeework car repairers decreas-
cd 41.4 per cent and airbrake repair
ers 1914 per cent in efficiency under
guarantee OF fixed minimum rate
s.. On the abolition of piece work
on the Union PacifC Railroad in the
wheel shop at Omaha. Nebr., the time
required for the same work was in
creased 3l.9 per cent and the output
was cut down 70 per cent; and in q
coach cleaning yard at Denver the
time required was increa sed 3S.a per
cent.
6. Southern Pacific employeen.
whose sole duty was to keep watch
on stationary engines and to stop the
engine In case anything went wrong,
were reclasslhed by Director General
as electrical workers. one man on
the Salt Lake division being given
back pay of $2.38l another $2OsI
another $z,00S, another $2.OO3, and six
others amounts varying from $500
| to $1,000.
I. Under the present classification
rules of the shop crafts. in order to
change aAozzle tip in the front end
Of locomotive II Is necessary to call
boiler maker and his helper to open
the door, because that is boiler max
ers' work: to call q pipeman and his
helper to remove the blower pipe
because that is pipsmen's work; and
call q machinist and his helper to re-
move the tip, because that is ma