The Calhoun chronicle. [volume] (Grantsville, W. Va.) 1883-1984, 1921-06-09
RAILWAY INQUIRY
IN WASHINGTON
Excessive Labor Costs and Work
ing Conditions Chief Causes
of Trouble.
NO CONTROL OVER EXPENSE
Prices and Wages Fixed by Govern
ment Leave Little Scope for
Management

FrCee ana wages FiSeo oJ SoNern-
ment Leave Little Scope for
Management
Washington, ID. C.-In testlfying be-
fore the Senate Committee on Inter
state Commerce In the general inves-
tigatiOn into the railroad situation,
witnesses for the railroads contended
that:
% The costs OF operation are alb
normal. owing chiefly to wage scales
established by the government which
exceed wages paid for similar work In
costs, often for work not done, en-
forced upon the railroads by the so
called National Agreements"
(2) That 97h cents out OF every
dollar OF operating expenses in 1920
were at prices fixed directly by the
government, or by general market con-
ditlons and over which the railroad
arrangements had no control.
CD 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 Ia the testimony present
ed by the first witness, julius Krutt-
schnitt. chairman OF the board Of d.
pctorS OF Tie Southern Pacific, was
the following. In explanation OF the
chief reason for the increase In OBJ
Grating expenses since 1915:
THE labor bill OF the carriers in
1916 (Which was before the AdamsOn
law took effect stood at 31,4GS, $40 1874.
In 1920 1t was s3,G9S 2lG,351, an In
crease OF 81, 229, 500. 957.
THE Increase by years since 1915
has been as follows:
Increase In 1917. $40 ,eo5, 746
Increase in 1918. 974 1881 200
Increase In 1919. 229 ,315 ,091
Increase In 1920. ......... 855 ,097, 919
II an aggregate increase
Hnce 1916 OF .......... S2,22e ,s39 o57
Exhibits We're placed before the
Committee showing that for the rail-
Dads OF the whole country, Increased
expenses In 1920 over 1919 were as
'olOws:
Actual expenses for 1920 Sc, 1853, 12s, 34t
Actual expenses for 1919 4,667,774,13
Inc. for 1920 over 19l0S1 ,495 ,3G4,2to
Mr.. Kruttschntt. in showing how
little control the railroads had over
necessary expenditures, said:
"SiNty-four cents out of every dol
lar OF operating expenses were In
9>N paid out to labor. and the wages
III labor are fixed by the government.
Fifteen cents out of every dollar
of operating expenses was paid for
materials and supplies at prices hxed
by the government.
Three and one-half cents out Of
every dollar was paid for other ex.
penses Incurred by the government in
the first two months of 1920.
"a total, therefore, OF S21A cents out
Of every dollar of operating expenses
for 1920 was paid out at prices direct
~ hNSd by the government.
THE remainder, up to s7H cents.
was for materials and supplies, pur-
chaSSd at prices fixed by general mar.
kSt conditions and beyond the power
Of he railroads to control"
4S illustrate how labor costs were
Inflated by the National Agreements"
entered into during federal control,
fixing rules and working conditions,
the following examples were cited:
1. The Pero Marquette Railway vaa
compelled to pay So 7sl In back pay
to four employees because their titles
under these agreements were changed
a nmN all 49, ~.
while the nature Of their dutieH and
the volume OF their work remained
the samo.
2 \ car rep4irer on the VirKinisn
Railway WAs paid 81 900 for work he
never did. PIE WAS laid on with other
employees because there WAS no work
Tor him to do. When lie became en-
titled under his seniority riKhts'' TO
be re-employsd. he received back pay
s. The Shop Crafts Agreement pro
vides that when employees are re
duirsd TO chsck In and out on their
own time they will DO paid for one
hour extra At the close Of each week,
no matter how few hours they may
have worked THIS rule in the first
SIX months Of 1870 cost the railWRyH
year.
!. on the Chesapeake & Ohio Rail
road piocsWork car rspairera deCreas-
81 t1.t per cent and airbrRks rspaiT-
ers S1.4 per cent IN efficiency under
guarantee Of fixed minimum rate
per hour.
. on the abolition Of piece vork
on the Union Pacific Railroad in tho
wheel shop At Omaha. Nebr the time
required for the same work was in
creased 2l.9 per cent and the output
VAS cut down - per cent: and in
coz CHI oleaninE yard az Denver the
time required was Increased 811 Der
cent and the output decreased - per
csRt
Southern Paolhc employees
whose sole duty was TO kssp watch
on stationary engines and 20 stop the
engine Iva case anything went wrong
we're reclaHsihed by Director General
aa electrical workers" one man on
the Salt Lake division being given
back pay Of t2.2ii. another g. OsG
Ahsther t1,Oos, another 81. COS and sir
shsTs amounts varying from 81. 500
T. Under the present classification
rules Of the shop crafts IN order 10
change . noHEle tip IN the front end
Of locomotive u 10 necessary 10 call
boiler maker and his helper TO opsu
the door. because that Ia boiler Trak-
0Tg work. 90 call pipsman and hig
helper % remove the blower pipe
because thst vs. pipsmen's work and
call rnachinist and his helper 10 re-
move the tip. because that 10 ma
chlniHts' work also for tho same force
20 be employed for putting In the new
tip.
Questioned by Senator Poinderter
Mr. Kruttschnltt stated that these in.
stances might be Increased indefinite
liz nd OH