The midland journal. (Rising Sun, Md.) 1885-1947, 1921-05-20
RAILWAY INQUIRY
IN WASHINCT
Excessive Labor Costs and Work
ing Conditions Chief Causes
Of Trouble.
NO CONTROL OVER EXPENSE
Prices and Wages Fixed by Govern
ment Leave Little Scope for
Arrangements.

tlgaJlon into the railroad SltuatlOns
witnesses for the railroads contended
that:
"a The costs of operation are abb
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 SO
called National Agreements"
90 That 97M cents out Of every
dollar of operating expenses in, 1920
were at prices fixed directly by the
government, or by general market con-
dtions and over which the railroad
arrangements had no control.
60 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
Grating expenses since 1918:
'grhe labor bill of the carriers in
1915 (Which was before the AdaIAson
law took effect) stood at 81 ,468 576, 394.
In 1920 1t was $3,69S, 216,351, an In
crease of s., 229, 839, 957.
"The increase by years since 1915
has been as follows:
Increase in 1917. ........ .$270, 905, TAB
Increase in 1885,. o74, 331 POS
Increase in 1919. ......... 22s, 315,081
Increase in 1920. ......... 855,o87,91e
or an aggregate increase
since 1915 off,. !. ~, 229 ,839, OBJ
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 sc, 1853; 1885, s4f
Actual expenses for 1919. 1857, 774,1s1
Inc. for 1920 over 1919 81, 4e5, s64.2
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, ii,
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-half cents out of
every dollar was paid for other ex-
penses incrrred by the government in
the first two months of 1920.
"A total, therefore, of 821s cents out
of every dollar of operating expenses
for 1920 was paid out at prices direct.
~ fixed by the government
1.-THE remainder, up to 97E cents,
was for materials and supplies, pur-
chased at prices fixed by general mar
ket conditions and beyond the power
VI the railroads to control"
To illustrate how labor costs were
inflated by the National Agreements"
entered into during federal control.
liking rules and working conditions,
the following examples were cited:
l. The Pere Marquette Railway was
compelled to pay $9.364 in back pay
to four employees because their titles
under these agreements We're changed
by ; decision ts Of the Director 9t dt General
the volume Of their work remained
the same.
3. A car repairer on the virginian
10 iUyaU wa n M for oplr n
never did. He was laid of with other
employees because there was no work
f for him ,,n t. do When he became en-
be unemployed. he received back pay
and overtime
:. The Shop Crafts Agreement pro-
Quired to check In and out on their
own time they will be paid for one
hour extra at the close Of each week,
have worked. This rule in the first
six months Of 1920 cost the railways
ss.5oo.ooo. or at rate of s13.ooo.OoO
year.
L. On the Chesapeake & Ohio Rail-
road piecework car repairers decreas-
ed Al per cent and airbrake repair
- efs SS.4 per cent in efficiency under
guarantee OF a fixed minimum rate
per hour.
5. On the abolition of piece work
on the Union Pacific 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 "a per cent; and in
coach cleaning yard at Denver the
thine required was increased 1873 per
sent and the output decreased 2S per
cent.
8. Southern Pacific employees,
whose sole duty was to keep watch
on stationary engines and to stop the
engine In case anything went wrong,
were reclassifed by Director General
as electrical workers. one man on
the Salt Lake division being given
back pay OF $2.3S1, another 5000,
another $1,000, another $2.00s, and sir
others amounts varying from $500
to $1,000.
7. Under the present classification
pples Of the shop crafts, in order to
change q nozzle tip in the front end
Of locomotive 1t Is necessary to cali
& boiler maker and his helper to open
the door, because that Is boiler max
ers' work; to call q pipeman and his n
helper 70 remove the blower pipe,
because that is pipemens work; and
call machinist and his helper to re-
move the tip. because that is ma
chinists work; also for the same force
to be employed for putting In the new