The Washington herald., 1921-05-14
RAILROADS SEEK
FURTHER LOANS
FROM TREASURY
Cummins Makes Revela-
ton on Resumption of
Investigation,
RAIL BILL is HUGE
Obligation from Government
Placed at $2,50O, 100000
BY Carriers.
RAIL BILL is HUGE

Although the railroads already
have collected hundreds Of millions
Of dollars from the government on
claims accruing from Federal op-
GRAFTON during the war. they are
seeking millions moro from, the
public treasury.
This revelation was made yester-
day by Senator Cummins. chairman
Of the Senate Interstate Commerce
Committee, when its investigation
of the condition of the railroads
was resumed.
The Senator declared that the sit
uation challenged the permanence
of private operation.
some way must be found" he
asserted, "to either reduce expenses
or increase revenues. else the de-
fcits the roads are incurring will
have to be paid out Of the national
treasury"
Bili for $500. 900. 900.
As estimated by themselves. the
railroads bill against the govern
ment is .s2.500.0 100000 for the
twenty-six months Of Federal con-
troll, Senator Cumins said He as
serted that 1t was the government s
contention that its obligations did
not run this high but he admitted
mthat they would likely amount to
81 500, 600, 900, even under a compro-
mise settlement of the carriers
claims.
julius Kruttschnitt, chairman of
the board of directors of the South
ern Pacific Railway. who again tes-
tilted before the committee yester-
day. was questioned closely by SEN
itor Cummins regarding the wide
discrepancies appearing in the
maintenance costs Of the Glass l
railroads in 1917 and 1880. The
the roads showed an expenditure of
I.026.04S,072 from February, 1920,
to February. 1921, whereas in the
same period in 1917 II was only
s442.108,s60.
These figures show" the Senator
declared. that you expended two
and a half times as much since the
roads were returned by the govern
ment than in the last year Of pri-
vate operation, though there has
been no appreciable increase in
mileage
HAihttsChHfet TcpiItu thdt the gen
'ral reason for the increased cos,
is the higher wages paid unskilled
abor. Sixty per cent of the cost OF
he maintenance of way. he said
as absorbed by labor. As an Illus
lands now have an eight-hour day
with overtime. This. he said. had
never occurred before in the rail-
road history.
kruttschnitt Criticises.f
In his direct testimony
Kruttschnitt continued his criticism
of the United States Labor Board
asserting that its delays in settling
wage disputse were costing the
railroads from $500. 600 to $500. 200 a
day. Senator Cummins. however.
made a vigorous defense of the
board's action. The roads them
selves. he declared. were as much to
blame as the board for what delays
had occurred.
Why. after last September" he
asked. when both roads and men
were free to originate a dispute
concerning wages, rules and work
ing conditions was there so much
time lost. in bringing them before
the board,''
In explanation, Kruttschnitt said
That for several months after that
ime railroad traffic continued to in
crease, and II was thought that the
carriers would be able to carry the
burden imposed by the higher wages
and new working conditions. When
n slump came, however the issue
could no longer be deferred. he
said.
Senator Cummins responded tha,
under the circumstances the board
"ould not he criticised for its tardi-
ness. On the contrary. he said tina.
in his opinion 1t had shown "re-
markable speed" in acting ON the
matters brought before II.