The Bozeman courier., 1921-04-13
CUMMINS TO ASK FOR
r. r. INVESTIGATION

washington, ApIu lZLn.-NO special
correspondence-Immediately on the
convening Of the special session of
congress, Senator Albert B. Cummins,
chairman of the committee on Inter
state Commerce, will introduce a reso-
luton for thorough investigation of
the railroad situation. The investi-
CATION will be designed to ascertain
why it is that with the largest gross
earnings in their history and as high
freight and passenger rates as there
is possibility of obtaining, the roads
are, nevertheless, earning a net op-
Grating income Of only a fraction of
one per cent upon the valuation of
their property. Senator Cummins
deems this the most vital problem
before the country today, for it is OBJ
vious that the transportation system
cannot continue under the present con-
ditions.
The situation, as Senator Cummins
sees it, may be briefly stated. Dur
ing 1920 the gross operating revenue
Of the railroads-the receipts from
freight and passenger service-ag-
gregated $6,225, 100000. The expense
of operation during the same period
NOT including interest on indebted
ness or dividends on stock-amounte
to about $6,215, 100000. On the years
business there was a net operating
income of some S10,000,000, this con-
st1tuting the returns as a whole up
on property valued by the Interstate
Commerce commission in a tentative
way at $18,800,OO0,OOO.:
The amount of traffic handled by
railroads during 1920 was the great
est. in their history. 1t is not likely
that they can count upon increased
revenue through any increase in traf-
fic within the next few years. Since
it is impracticable for the railroads
to earn more revenue, Senator Cum
minis believes the solution of the prob
lem must be found in the only other
Observation-Disclosures of expenses.
Whether this is practicable and in
what particular, will be the main SUBJ
ject Of the inquiry he will begin with
in very few days.
Saving in expenditures may be
grouped under very few classifica-
tions-better management; reduced
expenditures for wages; lower cost
of fuel; reduction in prices for lumber
ties, steel, etc. From information re.
D ceived from various sources student:
Of the subject are of the opinion thai
s $4OO,OOO,OOO per year could be saved
e without any reduction in the basic
: pay of employees if rules and working
: conditions were changed so that ther,
g would be no pay for work not done
: Under rules put in force while tn,
o roads were under Government contro
: probably half of the employees of tn,
G railroads receive at one time or anoth
e er compensation for which they rend
s er no service. For instance, th
e station agent at a village where train
e stop only three times a day, and VIII,
a perhaps spends only three OF fou
). hours per day at the station, receive
e overtime compensation if arrival O
l. AA0 VAC 10 SpACdQ ONtI a DcIlOQ o
]. more than ten hours. Under a regu
) lation established by former Directo
d Of Railroad McAdoo, employees ar
a paid for one hour per week for punch
IS ing the clock as they enter the shop.
f This alone costs the railroads $50
: 100000 to $75,O0O,OOO year. So ia
d as service to the public is concerne
/ it seems to be on par with the ordi
p nary business man paying his eler
Is for one hour per week for hangin
n up his hat in the morning OF a farm
J. er paying his farm hand for one hon
y extra per week for washing his fac
before breakfast. Other regulation
which specify the class of employe
who shall perform particular wor
and prevent repairs being made b
any competent man who happens
h be available, and to needless expens
te All these questions relative to tf