Every evening, Wilmington daily commercial., 1921-05-07
ATTACKS
ONLY PROPAGANDA,
RAIL HEADS ASSERT
Intended to Divert Public Atten-
ton From Real Question,
They Tell Labor Board.
ARE STRIVING FOR ECONOMY
BY Associated Press 10 Every Eveninx.

BY Associated Press 10 Every Evening
Chicago. May The statements pre-
sented 10 the Railroad Labor Board by
W Jett Iauck, consulting econornist
for the railway labor unions. charging
that large amounts of money ore being
wasted In the management Of the rail-
roads. have no relationship 10 the wage
question nov before the board, IT wae
contended In a statement filed before
the board today on behalf of the west
ern railroads.
The statement signed by Charles II
Markham, president. Illinois Central
Railroad Hale Holden. President, Chi
cago Burlington and Quincy; II. 70. By
ram. president. Chicago, Milwaukee and
ST Paul: W. H. Finley, president. Chi
cago and Northwestern; ]. r. German n.
president Chicago. Rock island and
Pacific; and NJ FELTON,, president, Chi
cago Great Western.
The sole purpose Of these statements
is 10 divert public attention from mat
tcrs actually pending before the board" !"
the carriers said.
They are bald propa ga nda intended
20 diecredit private management and
promote The Plumb plan. We respect
fully protest against the board continu-
ing to allow hearings before II ~ be
made means Of spreading this propa
ganda
since these statements have been
permitted IL, be presented 70 the board
we respectfully call your attention 70
the fact that in addition 10 being irrele-
want they arc gross Misrepresentation
~ railway management and that their
tendency and purpose is 20 nfisiead the
public We deny that the capitaliza-
ton Of tho railways as a whole IS ex-
ceseive. Even If il were this would
have no effect upon passenger and
freight rates since the Interstate Com
rnerce Commission specifically bases
the rates upon A valuation made by the
/ commission Itself
| "Tt is charged that the railways ard
concerns from which they buy fuel
; materials supplies and equipment are
under the same financial control and
i that in consequence the railways pay
+ excessive prizes n these other con
Germs. Every railway buys material
/ from literally hundreds Of different coal
/ iron ard steel. lumber and equipment
i companies al over the country and
he charge that The railways and al
these concerns arc under the same r.
/ nancial control is absurdly untrue.
Even il they were under the same
/ control this wogld not prove that th'
/ railways pay excessive prices
Among the items Of alleged waste
/ Mr.. Lauck mentions Is loss and damage
IL 1917. the last year before the gov.
ernn1ent control payments for loss ane
damages 10 freight were only s35. 600
goo. In 1919 after two years Of govern
ment control. this had increased Il
| sl06 s04 600 or EOS per cent
TT is claimed the productive ef
/ ficiency Of the employees as measures
by the amount Of traffic handled pei
employe has increased. This claim is II
direct contradiction TO the facts. Il
1916 the number OF ton-rniles Of freigh
handled per employe was PAL. sal. ane
in 1919, only 20S,026. In 1920 it had in
creased TO 22t.s21 II declined unde
government control and increased unde
private operation in 1920. but even il
1920 was much less than in 1916 o
1917
The railway managers are trying I,
effect every economy that is practicable
under present conditions. They reaIiz
that if they could raise sufficient ney
capital TO make needed improvements
they could effect very large economic
by reducing the amount of labor. fue
and materials used. Until however
they are allowed 10 earn enough ne
return TO enable them TO raise the neS
capital for these improvements. thes
economies must be held in abeyance.''