Evening journal., 1921-05-07

CHICAGO. ILL.,. May Z. 1e21-Rep-
resentatives Of the railroads appear
ing before the United States Rail-
road Labor Board at Chicago. made
specific reply today to the charges
OF w. Jett Lauck concerning the
roads financial performance and al
legged inadequacies OF railway man
agement.
The roads pointed out not only
that the volumnious exhibits offer
ed on behalf of~the employees were
entirely irrelevant to the wage issue
and an attempt to becloud that
issue, but also that the alleged
economies suggested by the en-
ployes' spokesman were fallacious
theoretical and visionary.
A summary OF the presentation
made on behalf OF the Eastern roads
by John @. Walber, Secretary of the
Bureau OF Information of the East
ern Railways. follows:
I. With respect to alleged possi-
BILE economies amounting to $2,O26,-
$4,000, through the use OF various
mechanical appliances and in gen
cral the revamping OF all facilities
and equipment entering into railroad
operation, MIR. Walbcr said:
THE suggested economies are not
original or pioneer suggestions. From
the reading OF these exhibits one
might get the impression that the
American Railroads are antiquated
a nd fnaffiRfartfIrs
these presumptions and point with
pride to the records of performance,
cost of operation and service rem
dered the public, which are ac-
knowledged as being superior to any
railroad service in the world. The
facts are that the railroads have
been engaged for a great many years
in investigating, studying and apply
ing the most efficient means and ia
cilities for improving their methods
of operation and maintenance.
Notwithstanding the railroads
have been using such devices. treat
ed ties, etc. upon which so much
stress is laid. the operating results
and the ratio Of operating expenses
to gross earnings do not reflect eco
Monies capable Of being measured
to an extent as claimed nor does the
experience OF the railroads justify
estimates Of economies Of the magni-
tude represented.
Since these total economies (s2,-
026, ,S55, 900 as stated by Mr.. Lauck)
amount to more than one-third OF
the total operating expenses, it is
reasonable to assume that economies
would be affected in expenses for
labor and material in the same pro-
portion that these items Of operating
expenses. At the present time ex-
penses for labor approximately sixty
per cent. OF the total operating ex-
penses. II is therefore reasonable to
assume that sixty per cent. OF the
savings claimed would have to be
savings in labor which would mean
the reduction OF 66S,OOO employees
based on the number in service in
1920"
?. With respect to the statement
that various savings could be made
without additional capital cxpendi-
lures, the roads pointed out that MIR.
Lauck's own exhibits state elsewhere
that these same savings will be made
with "A capital expenditure OF $685.
OOO. 900.
;. Referring to one of Mr.. Lauclx's
statements headed immediate saw.
ings' amounting to S272, 500. .OOl
covering economy devices for loco
motives, the roads stated;
Granting that expenditures foi
such devices were justified, it mus
he manifest that IL would be wholly
impracticable within any brief per.
iod Of time which would justify the
statement that they would be imme-
diately available and the manage.
ment of any railroad that followed
this suggested practice could not
survive the test of the Transporta.
tion Act as to honest. efficient and
economical operation"