New Britain herald., 1921-05-07
RAILROAD OFFICERS
 DEFEND POSITION
Say Lauck'S Charges Do Not . Affect Situation at All

Chicago. May 7.-The statements presented to the railroad labor board by W. Jett Lauck. consulting econom- ist for tho railway labor unions. charging that large amounts of money are being wasted in the management of the railroads have no relations to tho wage question now before tho board, it was contended in state ment filed before the board today on behalf of the western railroads.
 The statement signed by Charles H.. Markham, president. Illinois cen tral railroad: Hale Holden. president, Chicago, Burlington and Quincy; H. F.. Byram, president, Chicago. Mil- waukee and St. Paul: W. H. Finley. president. Chicago and Northwestern; !. F.. German. president. chicago Rock Island and Pacific, and M. Eel ton. president. Chicago Great west ern.
 Tho sole purpose of these state mcnts is to divert public attention from matters actually pending before tha board" tha carriers said.
 ''They are bald propaganda intend ed to discredit private management and promote tho Plumb plan. We re- spcctfully protest against the board continuing to allow hearings before it to be made n means of spreading this progaganda-
 "Since these statements have been permitted to be presented to tho board VIC respectfully call your attention to the fact that in addition to being fr- relevant they are gross misrepresen- tations of railway management and that their tendency and purpose is to misioad the public. We deny that the n whole is excessive. Even if it were this would have no effect upon pas senger and freight rates since the fn- terstate commerce commission specifi- caily bases the rates upon a valuation made by the commission itself.
 Tt is charged that the railways and concerns from which they buy fuel. materials. supplies and equip ment are under the same financial control and that in consequence the railways pay excessive prices to these other concerns. Every railway buys from literally hundreds of different coal, iron and steel. lumber and equipment companies all over the country and the charge that the railways and all these concerns are under the same financial control Is absurdly untrue. ..-
 Even if they were under the same control this would not prove that the railways pay excessive prices. a
 Among the items of alleged waste MT. Lauck mentions is loss and Tn 1917 the last year be- fore government control. payments for loss and damage to freight were only s35.000,000. In 1919 after two years of government control this had increased to s116,S04.00o, or 2o5 per cent.
 Tt is claimed the productive efficiency of the employees as meas ured by the amount of traffic handled DOT employe has increased. This claim is in direct contradiction to the facts. In 1916 the number of tom miles of freight handled per employe was 241.541. and in 1919 only 20s,o26. in 1920 1t had increased to 221,921 It declined under government control and increased under private opera ton in 1920 but even in 1920 was much less than 1876 or 1917.
 "Tho railway managers are trying to effect every economy that is prac- ticable under present conditions. They realize that if they could raise sufficient new capitatl to make needed they could effect very large economies by reducing the amount of labor. fuel and materials used. Until. however. they are al- lowed to earn enough net return to enable them to raise the new capital for these improvements, these economies must be held in abeyance."
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