The Fayette falcon. (Somerville, Tenn.) 190?-current, 1921-07-22
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
meRt Leave Little Scope for
Arrangements.

fore the Senate Committee on Inter-
state Commerce In the general inves-
tigntion into the railroad situation,
witnesses for the railroads contended
that:
ID 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 30
called National Agreements"
ca That 97h cents out Of every
dollar of operating expenses in 1920
were at prices fixed directly by the
government, or by general market con-
diti0ns and over which the railroad
arrangements had no control.
(S) 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-
schnitt, chairman of the board Of d.
rectors Of the Southern Pacific, was
the following, in explanation Of the
chief reason for the increase In OPP
efating expenses since 1915:
-Ihe labor bill Of the carriers In
1916 (which was before the Adamson
law took effect) stood at 81, 46S, 576, 1894.
In 1920 It was ,69S,216,351, an in
crease Of 1925, S39957.
'.The increase by years since 1919
has been as follows:
Increase in 1917. .$270, COS, 74s
Increase in 1918.......... 874,331 200
Increase in 1919. ......... 22e, 5,o91
Increase in 1920. ........ s55, o87, ets
or an aggregate increase
since 1916 Of, 2,22e, s3e, 057
Exhibits were placed before the
committee showing that for the rail-
roads Of the whole country, increased
expenses in 1920 over 1919 were as
fellows:
Actual expenses for 1920. IS, 1853, t3s, 34t
Actual expenses for 1919. 4,667, 774, 13t
Inc. for 1920 over 1919. 81, 4s5, 1854, 2to
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
1870 paid out to labor. and the wages
Of labor are fixed by the government.
-Tifteen cents out Of every dollar
q operating expenses was paid for
materials and supplies at prices nxsd
By the government.
three and one-half cents out Of
every dollar was paid for ether ex-
psnses incurred By the government In
ths nrst two months OF 1920.
"a total. therefore. OF s2h cents out
Il every dollar Of operating expenses
fw 1870 was paid out at prices direct
b hxsd BY the government.
The remainder, up to s7H cents,
was for materials and supplies, pur-
cassssd At PRICES flxsd by general mar
~ conditions and beyond the power
- he railroads to control"
To illustrate how labor costs were
inzatsd by the National Agreements"
entered into during federal control,
fixing rules and working conditions,
The following examples were cited:
1 The Pere Marquette Railway was
compeiled to pay 1854 In back pay
% four employees because their titles
unaer these agreements were changed
~ decision Of the Director General,
while the nature OF their duties and
The volume Of their work remained
the same.
. A car repairer on the virginian
Railway was paid 81 900 for work he
never did. He was laid OF with other
employees because there was no work
for hun TO do. When he became en-
titled under his seniority rights TO
be re-employed, he received back pay
and overtime.
o The Shop Crafts Agreement pro-
vfdes that when employees are re-
AaaACa W CutCk III ana out on their
syn time they will be paid for one
hour extra at the close of each week,
no matter how few hours they may
have worked. This rule in the first
six months of 1890 cost the railways
Msoo. 600. or at rate Of s1S.o00.e00
year.
{. On the Chesapeake & Ohio Rail-
road piecework car repeirers decreas- A
I'd s1.4 per cent and airbrale repair
srs sS.4 per cent in efficiency under q
guarantee OF fixed minimum rate
Der hour.
6 On the abolition of piece work
On the Union Pacific Railroad in the
wheel shop IT Omaha. Nebr., the time
required for the same work was in
sgsassd sl.s per cent and the output
was cut down "a per cent: and in
! ccach-cleaning yard at Denver the
time required was Increased 3ss per
csnt and the output decreased Is per
4, esnt.
g Southern Pacific smploy..s
whose sole duty was to keep watch
- stationary engines and to stop the
engine In case anything went wrong,
v9s reclassined BY Director General
N electrical workers." one man on
Tire salt Lake division being given
bach pay Of s..ssi. another t20sS,
another s2.o0t, another t1.ee3, ana str
sthsrs amounts varying from n.sss
7. Under the present classification
rules Of the shop crafts. In order TO
eAzngs q nozzle tip in the front end
e locomotive II Is necessary 70 call
q boiler maker and his helper to open
tke door, because that In boiler max
1y work; 20 call q pipsman and his
kelp<r to remove the blower pipe,
because that IL pipsmen'E work; and
emIl q machinist and his helper TO re-
move the tip. because that Ia ma
chfnIsts' work; also for the same force
20 Be employed fer putting in the new
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