Evening journal., 1921-04-08
THoRoUcH RALRoAD INVESTIGATION.

IMMEDIATELY on the convening OF the special session
OF Congress- Senator Albert B. Cummins, chairman o
the Committee Interstate Commerce. will introduce
resolution for thorough investigation Of the ralroao
situation The investigation will be designed to ascertain
why it is that with the largest earnings in their
history and high freight and passenger rates as there
is a possibility Of obtaining the roads are, nevertheless
earning net operating income Of only fraction OF one
cent. the valuation Of their property Senator
Cummins deems this the most vital problem before the
country today It is obvious that the transportation
system cannot continue under the present conditions.
The situation, Senator Cummins sees it, may be
briefly stated During 1920 the gross operating revenue
the alroadshe receipts from freight and passenger
servce-aggregated s6225 100000 The expense OF
alton during the period-not including interest on
indebtedness dividends on stock-amouned to ab iut
s625OOOOOO On the years business there was 4 net
operating income Of some SiOOOOOOO this constituting the
returns whole upon property valued by the Interstate
Commerce Commission in tentative way at SiSSOO,-
100000.
The amount Of traffic handled by the railroads during
1920 the greatest in their history. 1t is not Likely
that they can count upon increased through
increase in traffic within the next few years Since 1t is
impractcabe for the railroads to more revenue
Senator Cummins believes the solution Of the problem
must be found in the only other alernaye-reduction
Of expenses Whether this is practicable and in what
particular. Will be the main subject of the inquiry he will
begin within a very few days
savings in expenditures be grouped under very
few classincaons better management reduced expend
lures for wages lower cost Of fuel, reduction in prices
for lumber ties steel etc From information received
from students OF the subject are OF the
opinion that SiOOOOOOO per year could De saved without
any reduction in the basic pay OF employees E rules and
working conditions were changed so that there would
be pay for not done Under rules put in force
while the roads under government control probably
half OF the employees Of the railroads receive at one time
or another compensation for which they render
vice For instance the station agent at village where
trains stop only three times a day, and who perhaps
spends only three four hours per day the station
receives overtime compensation arrival OF his trains
is spread a period OF than ten hours Under
regulation established by former Director OF Railroads
McAdoo employees are paid for one hour per week for
punching the clock they the shops This alone
the railroads s5OOOOOOO to s5OOOOOO year SO far
as service to the public is concerned, seems to be on
par with the ordinary business paying his clerk for
one hour per week for hanging his hat in the morning
farmer paying his farm hand for hour extra per
week for washing his face before breakfast Other
latons which specify the class OF employees who shall
perform particular work and prevent repairs being made
by any competent who happens to be available, add
10 needless expense.
All these questions relative to the management cost OF
supplies and equitable adjustment OF compensation OF
labor will be taken up expeditiousy possible by
the committee OF which Senator Cummins is chairman,
order that Congress and the country may be advised
OF possible solutions OF the present perpexng problem
and early remedy supplied.
Legislation already effect is adequate for the settle
ment fair and impartial way Of all these questions
but Senator Cummins is OF the opinion, with which all
people will agree that the public ought TO be made fam
lar with the facts and that only be accomplished
through a open inquiry at which the press OF In,
country will DO present and which will give the state
ments OF all the interested parties the publicity which
their Importance demands.