The Adair County news., 1921-05-24
RAILWAY INQUIRY
IN WASHINGTON
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.

1Or6 the Seudle SOLnulIISe OH 1ulCA-
state Commerce in the general inves-
tigation into the railroad situation, |
witnesses for the railroads contended |
that:
ID The costs of operation are alb
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"
(2) That 97h cents out of every |
dollar of operating expenses in 1920
were at prices fixed directly by the
government, or by general market con-
ditions and over which the railroad
arrangements had no control.
90 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:
1.-THE labor bill of the carriers in
1915 (Which was before the AdamsOn
law took effect stood at 81, 46S, 576, 1874.
In 1920 1t was $3,69S, 216,351, an in
crease of 81, 229, S39, 957.
1.-The increase by years since 1915
has been as follows:
Increase in 1917. $27o, eo5, 74s
Increase in 1918. ......... 674, 1881 ,20e
Increase in 1919. ........ 229, 315,oe1
Increase in 1920. ....... S55, o67 ,919
or an aggregate increase
since 1915 Of. 2,229, s39,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. $6, 1863, 1884
Actual expenses for 1919. 4,667,774, 1871
Inc. for 1920 over 1919. 81 ,4s5, s64,21o
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, in
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 rs; two months Of 1920.
"a total. therefore, of S212 cents our
OF evCg dollar of Operati"g expenses
for 1920 was paid ont at prices direct
Iy fixed by the government.
1.-THE remainder, up to 97R cents,
was for materials and supplies, pur-
chased at prices fixed by general mar
ket conditions and beyond the power
of the railroads to control"
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 were changed
by a decision of the Director General
/ while the nature of their duties and
| the volume of their work remained
the same.
2. car repairer on the Virginian
Railway was paid $1,000 for work he
never did. He was laid off with other
employees because there was no work
for him to do. When he became en-
titled under his Seniority rights to
be re-employed, he received back pay
and overtime.
3. The Shop Crafts Agreement pro-
vides that when employees are re-
quired to check in and out on their
| own time they will be paid for one
hour extra at the close of each week,
no matter how few hours they may
have worked. This rule in the first
six months of 1920 cost the railways
| $500, 900, or at rate of $4,000, 00e
| year.
T. On the Chesapeake Ohio Rail-
road piecework car repairers decreas-
ed 41.4 per cent and airbrake repair
| ers 1914 per cent in efficiency under a
guarantee of a fixed minimum rate
per hour.
s. 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 31.9 per cent and the output
was cut down "a per cent; and in a
coach-cleaning yard at Denver the
time required was increased 1873 per
cent and the output decreased % per
cent.
6. Southern Pacific employees,
whose sole duty was to keep watch
! on stationary engines and to stop the
engine in case anything went wrong,
were reclassified by Director General
as electrical workers" one man on
! the Salt Lake division being given
back pay of $2,381, another 81,
another S2,O09, another S2,003, and six
others amounts varying from $500
to $1,000.
T.. Under the present classification
rules of the shop crafts, in order to
change a nozzle tip in the front end
of locomotive it is necessary to call
a boiler maker and his helper to open
ers work; to call a pipeman and his
because that is pipemens work; and
move the tip, because that is ma
to be employed for putting in the new
| tip.
Questioned by Senator Poindexter
Mr.. Kruttschnitt stated that these in
stances might be increased indefinite
| lv and xvpro cha RI cteristic IN railroa ri