Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-05-06
R. R. EMPLOYERS
ATTACK LABOR'S
EVIDENCE TODAY
sennef Declares Charges of
Financial Combine" Does
Not Affect Wages.
Walber Says Evidence In
troduced by Unions Can
not be Relied Upon.

not be Relied Upon.
Chicago, May 6.-Speaking in be-
half OF eastern railroads, John G.. Wal
~ber secretary Of the roads bureau OF
information. declared today before the
railroad labor board that the volumin-
Gus exhibits offeed by the employees
were entirely irrelevant to the wage
issue and that the economies sug-
Eested by w. Jett Lauck, economist
for the unions, were "fallacious, theo-
retica1 and visionary"
Alleged possible econmies amount
ing to $2,026,355.00o, through the use
OF mechanical appliances and revamp-
Ing of equipment were declared not to
be original suggestions.
Deny Reports.
prom reading these exhibits, one
might get tho impression that the
American railroads are antiquatcd and
inefficiently managed" Mr.. Walbcr
said. We deny these presumptions
and point with pride to the records of
performance, cost Of operation and
service rendered the public. which
are acknowledged as being superior TO
any railroad service in the world"
Since these economies s2,e36.255,-
! more than one third Of the total oper-
ating expenses, it is reasonable to as
sumo that economies would be effect
| ed in expenses for labor and material
| in the same proportion that these
/ items of operating expenses now bear
to the total OF operating expenses At
the present time expenses for labor
! approximate sixty per cent of the total
/; operating expenses. 1t 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.000
employees, based on the number in
service in 1920"
Analysis Made.
| An analysis was made of other al
I! legged economies and in conclusion MIR.
Walber said:
I'VE have not attempted to analyze
in great detail each of the elements Of
saving presented but We believe that
the foregoing will demonstrate to the
| board the extent to which considera-
I ton and analysis have been made by
the compilers from more or less pub
lie statements which are accepted
without proper consideration and in
dicate the utter fallacy Of many of the
claims which. from their merit alone.
there is no Justification for the board
giving serious consideration. We have
studied these exhibits from the stand
point of their relevancy to the present
case and it is our belief that none of
them come within the puryiew of the
elements set forth in section 307 Of the
Transportation Act
ScmoT Speaks.
Charges of a financial combine
among New York banks and the steel
ami railroad industries We're declared
irro Low nd INN, toi,
reduction case now before the railroad
labor board today by e. H. Senneff,
general solicitor for the Pennsylvania
Railroad. in replying to the employees
recital OF alleged mismanagement.
Dis1nissing the employees charges as
water over the dam Mr.. Senneff
made no answer to their contentious
1ha, the financial combine had de-
flated labor. Mr.. Senneff declared
that the employees had failed to show
any injury had resulted from the
transactions between the railroads and
corporations which had interlocking
directoratcS.
Governed BY Law.
THE employees are attempting to
create the impression that beeausc OF
these interloclling directorates some
great wrong is being done the public
and the railroads themselves Mr..
supported. In fact. it has not been
shown that any rrlnsa ctions between
the railroads and the corporations
having interlockins dircctorates have
resulted in any injury to the public or
railroads and the corporations bavi:,-
4 interlocking directoratcs have resulted
in any injury to the public or rail-
roads. Such transactions are now
governed by the CLAYTON Act, further
more. so all these charges are water
over the dam.
Many Of these carriers have hecn
charged with improper financial trans
actions. though long prior to the pass
age of the transportation act such
ira ansactionS have been in most cases
carefully Scrutinized and then ap-
proved by the public service commits
sionS of several cities. Even if there
had been improper financial transac-
uons as claimed. a repetition of such
financial transactions now would he
impossible because the Interstate
Commerce Commission now regulates
such matters.
AT all event railroad capitalization
has no effect whatever on railroad
wages or rates. If any transa ctions
have proved unjustifiable in the pas,
the bad results have been borne by
the investors, and not by the employees
or public. Wages have been deter
mined and will hereafter be deter
mined irrespective of any railroads.
capitalization. The attempt to intro
duce these transactions in past pears
only conduces to confusion and be-
clouds the whole issue respecting just
and reasonable wages
Methods Approved.
Mr.. Sennef declared that the right
of the railroads to apply surplus earn
ingS to property improvements and
subsequently capitalize them was d
method universally approved and
had been largely responsible for the
efficient transportation system this
! country now enjoys He added that
the valuations of the Interstate Com
nierce Commission "even now prove
hat the value of the railroads assets
4 &ats sXrefds apitalfIation..
s. These trialies wfl9' 5tfEi ap in answer
t,55 sfli2 "a iars&s taas eslsnis7gs
l.stsi gfates y l@l ils prog, ~ shou u3d
slfs s;sHs 80 q p t;is eRlpiayes in In
t'isssased ss.fagg 81 4 70 The pubic in lower
rates. sis3 i &
1 TnE wEaTHER