Evening star., 1921-05-17
willard EXPLAINS
IRA|LWAY SITUATION
Tells Committee Wages and
Expenses Are Over Five Bill
{ lion More Than in 1916.

Continuing his testimony today pc
fore the Senate interstate commerce
committee on the railroad SITUATION
Daniel Willard. president OIL the
Baltimore and Ohio Railroad IoH-
pany. read into the record a taoie 10
show that since 1912 there had oeeh
a steady increase in the rauo Oh
operating expenses to net revenue
The return on property value, ne SAID
at the same time has declined from
an average of approximately per
cent up to 1917 to 32-10Oths OF l per
cent in 1920 and to l-lOOth OF per
cent in February. 1921. - ,.,
Notwithstanding there nau oerH
a constant but slight decrease IN tne
rate per ton-mile on traffic nahoieu;
and a gradual increase IN prices or
commodities and in rates OF pay,
Mr. willard said. there was no ao
normal change in net revenues ana
the operating ratio averaged about
30 per cent for the period o! lsi- 70
1915 inclusive due. however. 10 IN
crease in taxes and continued ex-
pendi,ure Of additional capital. the re-
turn on property value during 'he
same period had declined
Gives Table of Costs.
THE total hours on duty of raIiroad
olcr 1916" Mr.. Willard SAID IN pro-
ducing some tables. while the ,ots,
pay roll of all railroads Increased 10 81
per cent. The wages paid @ IN ise ;be
wages of 1916 Their total increase
in expenses was s3,4ll. 100000 during
the same period.
That explains as clearly as / can
what has happened TO the roaos since
"Wasn,t there period when rail-
road superintendents. employees OF the
higher grades. got less money than
the railroad engineers? senator
Smith. democrat. South Caroiiha'
asked. ,., n,
THAT was true for a period. Mr.:
Willard said. due to maladjustments
In wage increases
s'I never saw such poor rallroadlns
as We did during 1920 Mr.. "1.a1lu ans
said Il have no apologies 10 man.
but il was the condition.
why" Senator Kellogg. repuoii-
can. Minnesota. inquired
BI.mes Federal Control.
/. at was the aftermath of federal
control" Mr.. Willard replied lnsy
had a chaotic state in stan-ano ON
'cials. They were undermaihta aiheu'
undereQuipped.
But, in addition. ! want to say that
I have never seen better raIlroadins
than we have now The faiilng on OIL
traffic. the readJuStmentS OF men anu
sraff has worked out That IS true
Of the Baltimore and Ohio. and. nave
reason to suppose. of railroads gen.
orally
Chairman Cummins of the inter
etate commerce committee asked as
to the feeling between employees ana
railroad managements.
Z For several years before the war
railroad employees were not being naio
wages equal to those in other lines.
Mr.. Willard began. The railroad IN
come was fixed. the managsments had
10 resist claims for increases
Economics Can he Made.
During the period of federal con-
troll the men heard high officials of
the government. saying that they
were now working for the govern
fnent. not the railroads, declaring that
the men were not going 10 be kicked
around any more. implying that they
had been kicked around before All
that talk gave an impression that
1here was conflict between the roads
and their employees. but | do not think
the impression is correct.
: Il have never seen lot of men
sroad than we have on the Baltimore
sand Ohio now
Il believe constant economies can
sbe made" Mr.. Willard added. but l
do not believe that railway managers
shave been unmindful of it. i do be-
Sieve the railroads have been kept
going by their constant attention TO
deficiency"
: The committee adjourned. leaving
! Mr.. Willards cross-examinAtion to be
taken up tomorrow"