Evening star., 1921-04-20
BILLIONS WASTED
, BY RAIL OFFICIALS,
!. CHARGE OF UNIONS
Managerial Inefficiency AS
sailed by Exhibit Before
Railroad Labor Board.
INADEQUATE EQUIPMENT
BLAMED FOR HIGH COSTS
employees Cite Improved Devices
Which, They Say, Would Save
Thousands in Operation.

| i;F ti" Associated Press
! CHICAGO. April a0.-Wastes amount
s 'o piiIlon dollars annually were
ia'd 10 managerial ineficiencv on
american railroads in a detailed ex-
! hlpit placed before the Railroad La
| oor Board today as part of union
i i"oof night against a reduction of
! wages Recoverable wastes were es-
! 'ifhated by the employees at s57S. 500
/ ooo a year, and other wastes. impos-
sioie OF estimation. would equal that
amouN, it, was declared.
Inc employees point out alleged
| wastes in the present railroad ad-
mihiStration and maintain that if
those deficiencies and defaults in
management were redressed and re-
pared there would remain no reason
lot attempting to reduce wages. AS
method of correcting wasteful
methods and increasing efficiency
OF employees. the exhibit advocated
cooperative effort between manage
ment and workers and added that
TINS cooperation could best be OBJ
tained through the medium of uni
torn agreements reached by COL
lective bargaining.
Cite Unnecessary Expeuses,
Recoverable and easily estimated
| wastes We're divided by the exhibit
under nine heads. having to do large
ly with construction and care of To-
comotlves and shop machinery. cost
accounting and labor turnover
The wastes which the unions said
could not be estimated in terms of
/ money included a variety of sub
| Jects, ranging from defective train
equipment and tracks through allie
cations OF incompetent and eXtraya-
giant management
In the last class emphasis was laid
upon publicity and advertising and
! on what the unions thought We're
| unnecessary legal expenses. Such
expenditures. il was claimed, have
served to increase and have been
! charged wrongfully to operating
costs.
1t was also charged that much of
| the defective equipment which the
management of the roads, are using
as an argument for the need of de-
creased wage costs could have been
avoided if the roads had declared
less liberal dividends and used
proper proportion of their earnings
to establish requirements funds
The following tabulation represents
those wastes estimated by the unions
witnesses and for which authorities
are quoted. giving specifications and
explanations as Set forth in the body
of the exhibit.
Il. Modernizing locomotives-Gross
reparable deficiencies in the tractive
power of the railways is pointed out
and it is shown that by systematic
application to the locomotives of
demonstrated improvements such as
superheaterS, brick arches. mechani-
cal stokers and feed water heaters
there would result an annual saving
of at least s272. 500. .000.'
Coal Bill Considered.
so. Locomotive operation. - The
magnitude of the railways coal bill
is considered and certain of the larg-
er wastes calculated. and it is con-
ciuded that by use of better methods
of coal purchase, coal inspection.
careful receipt and efficient firing of
the locomotives an annual saving
could be effected of at least $4,000
900.
% Shop organization improve
ments.-The sad and almost incredible
inadequacy and out-of-date equip
ment of the railway shops are re-
viewed, the defenceless wastes con-
sidered and it is conservatively esti-
mated that by a proper shop organ
ization an annual saving could be ef-
fected of at least $l7.000.000.
"a. Power plant fuel saving.-The
obsolete and wasteful condition of the
power plants in the railway shops is
considered and il is estimated that
fuel would. by itself amount to an
annual total of S10.000.000.
Reviews Way Maintenance.
- Water consumption savings
The railroads expenditure in main
tenance of way and structure is re-
viewed, the necessary wastes noted,
and it is estimated that easily attain
able savings in the consumption of
water alone would amount annually
to S12, 100000.
80 Service Of supply savinss-The ,
expenditure of the railways for sup
plies has been inquired into and the
avoidable losses surveyed, and ii is
estimated that the wastes and abuses
amount annually to not less than So
100000.
~. Shop cost accounting savings
Attention has been given 10 the mat
ter of uniform railroad statistics and
the use of efficient methods of cost
accounting only. An annual saving
would be feasible to the amount of
Sl0.900,000.
"S Labor turnover SayingS-The in.
dustrial losses due to unnecessary "A
bor turnover and to inadequate train.
ing of personnel have been reviewed
and it is estimated that the avoioable
wastes incident to labor turnover
alone amounts to more than 100000
900.
80 Loss and damage savings.-In-
ouiry has been made into the amount
of the annual loss and damage ac-
count of the railways. and into the
causes of such losses. and
it is estimated that an annual saving
might be effected to the amount OF
500. 900, 900.
'.Total-It will be noted that the
ayoidable wastes here listed are but
partially represented in the accom-
panying money estimates, neverthe- q.
less, the sum of these incomplete hg-
ures represent an annual unnecessary
waste of s57S. 500, 900"
Large Scales Wastes Cited.
Further alleged large-scale wastes,
losses and inefficiencieS in the equip
ment and operation of the railways,
difficult of approximate estimate -
dollars and cents, are given in the
exhibit as follows:
II Wastes due to remediable de-
fects in car equipment.
80 Wastes due to defective power
equipment.
% Wastes through inefficient ham
ding of tractive power.
81. Wastes due to Inadequate en-
gine terminals.
"5 Wastes due to defective main
tenance of way. The American Rail-
way Engineering Association. dis
cussing losses through lack of stand
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