Evening journal., 1921-05-07

4. With reference to an alleged
saving OF 5O.OOO.O0O year through
freight handling at terminals, MIR.
Walber said:
This allegation is purely hypo-
thetical and based on someone's es-
timate Of a total possible saving OF
$3.50. .000,0 900 at all points in the
United States on railroads and steam
ships. The railroads have been alive
to this for years and are constantly
studying the situation, adopting
where found practicable and eco
nomical. such mechanical devices
and other means as will reduce the
cost Of operation"
.. Referring to alleged savings
on shop cost accounting, the roads
replied:
There is nothing in this state
ment which indicates that such a
savings is possible. 1t Is merely an
assertion that IL one per cent. can
be saved II will amount to so much
money. The roads also pointed out
that while time studies are a prime
essential in any proper system Of
shop accounting. nevertheless during
Federal control. the railroads were
met with threatened strikes or actual
strikes because they used such meth
DDS after piece work had been abol-
ished and were then instructed by
the United States Railroad Admin
istration to discontinue such account
ing methods
q. With respect to other account
ing economies alleged to Justify a
saving of S5O.OOO,O 900. MIR. Walber
said:
"A casual consideration Of the fac
tors entering into this cost will DEM
onstrate how little reliance can be
placed thereon, and in addition we
merely call attention TO the fact that
as one saving they point out the de-
sirabiliy Of introducing systems
which require largely Increased ac-
counting and statistics, and in an
other exhibit show how accounting
and statistics should be curtailed. D"
Z. Referring TO the roads alleged
failure TO utilize modern labor say
ing devices for Office work, MIR. Wal
Der said:
In this instance, as in practically
all the other allegations. they are
purely visionary and evidently pre-
pared without any knowledge what
ever OF the actual conditions
1T is also noted that an alleged
saving Of s40,OO0,0OO per year would
he accomplished by the elimination
OF labor turnovers. This estimate
is the personal estimate Of an indi-
vidual and. from the way it is used.
it is assumed that turn-overs can be
eliminated. The fallacy of such an
assumption is apparent
s. Regarding loss and damage
claims upon which Mr.. Lauck esti-
mated that an annual saving of $9O.-
100000 could be affected. the roads
replied:
In arriving at this estimate fifty
per cent. Of the value Of the losses
IS used, ignoring entirely the fact
that during the period when the
$50. 100000 losses were incurred,
commodities carried the highest
values ever known. The railroads.
individually and collectively. are
made extraordinary efforts through
| bureaus and departments to reduce
the losses under this heading. II is
common knowledge that during the
past three years claims OF this kind
have grown beyond any previous
experience, particularly those due
to thefts The experience Of the
railroads in this direction apparently
" the same as the public generally.
p. In connection with the alleged
possible annual saving of S1OO.OOO.-
90 for tie renewals, MIR. Walbcr stat
ed i'm part:
1T is estimated that to install a
plant capable OF treating 1000, 900
ties per annum would require ap-
proximately 100000. Any railroad
which would undertake this installa-
tion would have to provide this cap
ital and assume the interest, depre-