The Era-leader., 1921-06-02
RAILWAY INQUIRY
IN V'A2.....NCT0N
Excessive Labor Costs and Work.
ind Conditions Chief Causes
of Trouble.
NO CONTROL OVER EXPENSE
Prices and Wages Fixed by Govern
ment Leave Little Scope for
Manag cement.

state Commerce in the general lliVes'
into the railroad situation,
witnesses for the railroads contendeu |
that:
D The costs Of operation are abb
normal, owing chiefly to wage scales
established by the government winch
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 971a cents out Of every
dollar of operating expenses in 1870
were at prices fixed directly by the
government, or by general market con-
ditions and over which the railroad
managements had no control.
(3) 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.
re ctors of the Southern Pacific, was
the following, in explanation Of the
chief reason for the increase In op'
Grating expenses since 1915:
"rhe labor bill Of the carriers IN
1915 (Which was before the Adamson
law took effect stood at 81 ,4GS, ,576 394.
In 1920 It was $3,6os,216,351, al In.
crease Of S2,229, 29,S39,s57.
"The increase by years since l0lo
has been as follows:
Increase in 1917 S27O,905, ,74S
Increase in 19lS........ Bl4,937 wv
Increase In 1919. ......... zls,5lo,Uo !
Increase In 1920. ....... s35 Vol,91S
or an aggregate increase
since 1915 Of .........S .S2,229, ,S39,oof
Exhibits were placed before the
committee showing that for the rail'
roads of the whole country increased
expenses In 1920 over 1910 were as
follows:
Actual expenses for 1e20s6,163,1 ,34t
Actual expenses for 1919. 1867, 7,774,131
Inc, for 1920 over 1910.$1, ,4es,3e4,2
Mr.. Kruttschnitt, in showing how
little control the railroads had oye'
necessary expenditures, said:
"Sixty-four cents out of every dol
lar of operating expenses were, !!
1920, paid out to labor, and the wages
of labor are fixed by the government.
"Fifteen cents out Of every ddla
of operating expenses was paid TO
materials and supplies at prices hxe'
BY the government.
"Three and one-half cents out o
every dollar was paid for other Ell
penses incurred by the government Il
the first two months Of 1920.
"a total, therefore, of s21s cents ou
Of every dollar Of operating expense
for 1920 was paid out at prices dirse'
|y fixed by the government.
"The remainder, up to s7Na cent?
was for materials and supplies, pu
chased at prices fixed by general ma
ket conditions and beyond the pows
Of tho railroads to control"
To illustrate how labor costs wei
Inflated by the National Agreements
entered into during federal contrc
fixing rules and working condition
the following examples were cited:
/. The pere Marquette Railway was
compelled to pay 1864 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.
3. A car repalrer on the vfrginan
Railway was paid $1,000 for work he
never did He was laid off with other
employees because there was no work
for him to do. When he became en-
titled under his seniority rights to
be ro-eHplOycu uC ACS0AFS0 boSA p"y
and overtime.
5. The Shop Crafts Agreement pro-
vides that when employees are re.
uufrsd to check In and out on their
own time they will be paid for one
hour extra at the close OF each week.
no matter how few hours they may ma.
six months Of 1920 cost the railways
$500, ,oO0 or at rate Of $1S,ooo,OoO d
vAnf
~ On the Chesapeake Ohio Rail.
road piecework car repairers decrease
ed 4t,4 per cent and airbrake repair
ers 1914 per cent IN eifielfnSy under III, er
guarantee OF a fixed minimum rat'
+. on the abolition Of piece wori
on the Union Pacific Railroad In thu
wheel shop at Omaha, Nebr:, the tinl'
required for the same work was IN
creased 31.9 per cent and the outpu
was cut down "a per cent; and In
coach cleaning yard at Denver. tn
time required was increased SS.9 PEI
cent and the output decreased 20 pc
cent.
whose sole duty was to keep Watcl
on stationary engines and to stop tn
engine in case anything went wrons
were recassifed by Director Genera
"a electrical workers." one man o.
tba Salt Lake division being give
back pay of s23Sl another $2O94
another $4,000, another s2003, and eli
i. others amounts varying from sl,se
7. Under the present classifcatio
- rules of the shop crafts, In order t
change nozzle tip in the front en-
Tho Of locomotive it is necessary to ca
Iho 4 boiler maker and his helper to ops
the the door, because that is boiler max
WIG ers' work; to cali pipeman and HI
au, hrlner TO remove the blower pip