The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1921-06-03
Il u \ q v
RAILWAY INQUIRY
IN WASHINCT0
q Ssn --------------
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
Management.
NO CONTROL OVER EXPENSE

hgatlon into the railroad situation
witnesses for the railroads contended
that:
"a The costs Of operation are alb.
normal, owing chiefly to wage scales
established by the government which
exceed wages paid fer 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"
(2) That 97M cents out of every
dollar Of operating expenses in 1920
were at prices fxed directly by the
government, or by general market con-
ditions and over which the railroad
arrangements had no control.
(3) 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 1915:
THE labor bill OF the carriers In
1915 (which was before the Adamson
law took effect) stood Mt $I,46S, SIC, 1914.
In 1920 II was S3,69S, 2l6,351, an In.
crease OF 81, 229, 1886, O57.
"The Increase by years since 1915
has been as follows:
Increase In 1917 .... .$27o, COS, 74s
Increase In 1885,. ...... e74,33f .209
Increase 10 l919.......,. 22e,3f5, o9l
Increase In 1920,s.....,. e55, 087 ,9f9
or an aggregate increase
since 1916 OF ......... 81, 229, 839 ,o57
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 So, tss, 13s, s41
Actual expenses for 1884, SCI, 774, 1sf
Inc. for 1920 over l9io.St, 4ss, 1854, 2to
MIR. Kruttschnitt, 10 showing how
LITTLE control the railroads had over
necessary expenditures, said:
"Sixty-four cents out OF every dol
lar OF operating expenses were, Ia
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 incurred by the government in
the frst two months Of 1920.
"A total, therefore, OF S2h cents out
OF every dollar of operating expenses
for 1920 was paid out at prices direct.
" Hxed by the government.
1.-THE remainder, up to syN, cents.
was for materials and supplies, pur.
chased at prices fixed by general mar
ket conditions and beyond the power
Of the railroads to eontroi.~
To illustrate how labor costs were
Inflated by the National Agreements"
entered into during federal control,
fixing rules and working conditions,
the following examples were cited:
/. 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 of the Director General
while the nature OF their duties and
the volume OF their work remained
the same. VIZ
q. A car repairer on the yirxinian
Railway was paid $1,000 for work ne
never did. He was laid off with other
employees because there was no work
i lor him e d9 When he became en-
be re-employed. he received back pay
3. The shop Crafts Agreement pro-
vides that when employees are re-
auired to check in and out on their
own time they viii be paid for one
hour extra AZ the close Of each week, u
no matter how few hours they may
SIX months OF 1920 cost the RAILWAYS
year.
Z. On the Chesapeake & oaio Rail,
road piecework car repairers decreas-
ed Ala per cent and atrbrake repair.
ers 33.4 per cent in efficiency under a
guarantee Of fixed minimum rate
per hour.
S. on the abolition OF piece work
on the Union Pacific Railroad Ia the
wheel shop at Omaha. Nebr, the time
required for the same work was in
creased si9 per cent and the output
was cut down "a per cent and IN 4
z coach cleaning yard at Denver the
time required was Increased 3BS per
cent and the output decreased 2s per
cent. Nj N }
e. Southern Pacific employees
whose sole duty was TO keep watch
on stationary engines and to stop the
engine tn case anything went wrong. /
were reclassifled by Director General
as electrical workers. one man On
the Salt Lake division being given
hack pay Of s2,Ssl another s2,094.
another s2.0Os. another 5000. and six |!
other amounts varying from $500
Z. Under the present classification !,
rules Of the shop crafts, In order 10 /
change q nozzle tip In the front end
OF locomotive Il Is necessary 10 cal
a. boiler maker and his helper to open
the door, because that Is boiler maxi
ersi work: 10 call q pipenlan and his +
helper TO remove the blower pine
because that is pipemen,s work; ana
call a nachlnist and his helper to re-
move the tip. because that IA ma
chinists' work: also for the same force
70 be employed for putting IN the new
tip.
Questioned by Senator poindexter. !,
Mr. Kruttschnitt stated that these III
stances might be Increased indefinite
y and were Characteristic on railroads