Hermanner Volksblatt. [volume] (Hermann, Mo.) 1875-1928, 1921-05-20
RAILWAY INQUIRY
IN WASHINGTON
Excessive Labor Costs and Work
ing Conditions Chief Causes
of Trouble.
NO CONTROL OVER EXPENSE
PrIees and Wages Fixed by Govern
nent Leave Little Scope for
Management

SsAh I
tigation into the railroad situation,
witnesses for the railroads c~ontended
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 OH 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.
(s) 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.
ectors Of the Southern Pacific, was
the following, in explanation Of the
chief reason for the increase in OPP
Grating expenses since 1916:
1.-THE labor bill of the carriers in
1916 (which was before the Adamson
law took effect stood at s1,46S, 576,394.
In 1920 it was So, Cos. 216,351, an In
crease of 81, 229,S99,957.
"The increase by years since 1915
has been as follows:
Increase in 1917 $270, eo5, TAB
Increase in 191S.......... 974,S31,2 o9
Increase In 1919. ......... 22e,315,o91
Increase In 1920. ......... s55,oS7,e19
or an aggregate increase
since 1916 Of ......... .$2,229, s3e ,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. So, 1853, 13s, 341
Actual expenses for 1913. 1867, 774,13
Inc. for 1920 ever 1919.$1,4e5, 364,21o
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 il
the first two months Of 1920.
"A total, therefore, of S2h cents oui
of every dollar Of operating expenses
for 1920 was paid out at prices direct
iy hxcd by the government.
"The remainder, up to e7N cents
was for materials and supplies, pur
chased at prices fixed by general mar
ket conditions and beyond the powe
Of the railroads to control"
To illustrate how labor costs wer
inflated by the National Agreements
entered into during federal contro
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.
Q. A car repairer on the Virginian
Railway was paid 1000 for work he
never did. He was laid on 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
S S%n e eItra AZ the close q zach week,
no matter how few hours they may
have worked. This rule In the first
SIX months Of 1920 cost the railways
50, 500, 900, or at rate of t13, goo, 900 a
1. On the Chesapeake g. Ohio Rail-
road piecework car repairers decress-
cd ALA per cent and airbrake repair
ers.as4 per cont in efficiency under q
guarantee OF a fixed minimum rate
per hour.
- hOn tho dDOllIIOH Oh piece WOTk
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 Q
coach cleaning yard at Denver tn,
time required was increased S8.e pei
cent and the output decreased 70 pc
6 Southern Pacific employees
whose sole duty was TO keep watcl
on stationary engines and to stop tn,
engine in case anything went wrong
were reciassifed by Director Genera
as electrical workers. one man OF
the Salt Lake division being give
back pay Of 81. 1881, another 50. 094
another 1900, another S2,003, and 81
others amounts varying from 1870
&c 1900.
4. Under the present classincatio
rules of the shop crafts, in order I
change q nozzle tip In the front en-
OF a locomotive II is necessary to CO
a boiler maker and his helper to ope
a. the door, because that is boiler max
ers' work: TO call a pipeman and HI
helper to remove the blower pip
because that is pipemen's work; an
call a machinist and his helper to n
move the tip, because that 10 ms
chinists' work; also for the same fore
to be employed for putting in the ne
tip.
Questioned by Senator Poindex
Mr.. Kruttschnitt stated that these
lance might be increased indefn
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