The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-05-12
FEDERAL RULE
BOOSTED RAIL
COSTS, CLAIM
Chairman of Southern Pacific
Says Labor Cost Jumps Us
Per Cent in 1920 Over the
Figures for 1917.
SAYS OUTLOOK IS BAD
(Bv Associated Press)

WASHINGTON. May IL. - Labor
115 per cent in 1920 than they were
in 1917, julius Kruttschnitt, chairman
of the board of the Southern Pacific.
declared in statement submitted to-
day to the senate interstate commerce
committee. During the same period,
he added. gross revenues of the car
riers increased less than 54 per cent.
Statistics on labor costs were given
by the witness who was cross ques-
toned after his direct testimony OF
the past two days by members of the
committee, which is inquiring into the
whole railroad situation. Since the
Adamson law was enacted. he said,
labor costs have been increased by
government action by s2,229.639, ,957."
The total for 1920 he added was
s3,69s, s,216,351.
Shows Increase.
The statement said in part:
The labor bill to the carriers in
1916, which was before the Adamson
law took effect, stood at s1,46s. .576, 394.
''In 1917 when the Adamson law was
in effect, the aggregate compensation
of the employees of the carriers of
class 1. amounted to s1.739,4s2,142: in
1918, the labor cost was s2,6l3,S13.-
351; in 1919. s2,843,12S,432, and for
1920. was s3,69S. S.216,351.
The figures given are actual. The
increase made in 1920. however, was
in force only a part of that year"
Before going into the question of
freight rates. Senator Townsend ques-
| toned the witness about governme mt
control
You think one factor in bringing
the roads TO their present condition
was neglect of maintenance during the
period Of federal control?" asked the
senator.
Il do Mr.. kruttschnitt replied.
Was there any action on the part
OF railway employees to retard or in
| Jure operations under federal control?"
Says No Action.
mo action, though there was great
| fall in their interest in the work when
/ the workers began to transfer their
i attention to the central authority in
| Washington and away from their local
officers and local lines"
IF I understand you" continued
Senator Townsend. You have got to
have nearly a billion dollars a year
more thas you are getting now to oper-
ate these roads properly. How are
you going to get it?"
There are only two ways, increase
/ revenue or reduce expense the wit
ness replied. That is the economic
! law. The outlook is anything but en-
conra ging: extremely bad"
! "You will still be short when you
! have reduced expenses"
! First Relief
'The first relief. and it is substan-
tial, will come from a reduction in
common labor cost said Mr. krut-
schnitt, Farmers along our lines are
employing men at $1.75 day for 10
hours. The railroad labor board re-
quires US TO pay several times that
Railroads must be allowed to purchase
their labor at market prices, but the
| board is very slow to act
Some of the press reports are get
ting my proposals wrongly. have
advanced reduction Of labor costs as
the first and most necessary step.
! The chief hope lies in reduction OF
railroad expense. What l have said
about the Panama canal and highway
competition only bore upon the pos
sibility of increasing revenues"