The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-03-18
RAIL SITUATION To
BE INVESTIGATED
Extravaganza, Inefficiency and
Even Dishonesty Charged.
TO GET FACTS FOR CONGRESS
Probe Will Be in Charge of Senator
Cummins of Iowa, Who Declares
Something Is Wrong With
Management.

Washington, March 16.-Reports of
extravaganza, inefficiency and dishon-
esty in the management of the rail-
roads since their return to private
ownership last March, will be thor
oughly sifted in the senate invegtiga
ton of the railroad situation which
will be begun shortly after the new
congress cOnvenes next month.
This announcement was made by
Senator Cummins of Iowa who will
introduce the resolution to authorize
the inquiry. Senator Cummins is
chairman of the interstate commerce
committee of the senate which will
conduct the investigation and is CO.
author of the Esch- Cummins trans
portation act under which the roads
were turned back to private control.
While the committee VIII look into
the railway labor situation and hear
the case of the brotherhood heads, it
will only be as a c0rOllary subject,
Senator Cummins said. The main
purpose of the investigation he as
serted, will be to ascertain why in the
IL months of private control the raods
have been able to earn only q net
operating income of $10,0O0,O0O, which
represents about one-ffteenth per cent
Of their property value, and $900,000,-
600 less than they were expected to
earn under the transportation act.
Public Entitled to Facts.
eve propose to learn" Senator Cum
Minis said, "why it is that with the
increases In freight rates of 80 per
cent the railroads have been able to
earn only a negligible amount. The
public is entitled to know how this
has come about and if there is any
truth in the reports that this condi-
ton is due to mismanagement, dis
honesty and extravaganza
The senator declared that, if any Of
these charges are borne out by the
investigation. the committee would at
once lay the facts before the inter-
state commerce commission, which. he
said, is empowered to take whatever
corrective measures are necessary
Outside the reports of mismanage-
ment, two personal reasons have
been advanced for the failure of the
roads to show favorable earnings I'M
der the freight increases Senator
Cummins said. These he declared, are
the general falling off in traffic and
the excessive cost of operation. Three
hundred thousand freight cars, one
seventh of the total equipment of the
roads, are now idle, the senator as
serted.
To remedy the situation, it is plain,
Senator Cummins said, that reduc-
ton in the cost of operation and
maintenance must be effected OF this
reduction, he asserted labor must
bear it's propOrtionate part in the de-
crease of wages He expresses the
opinion, however, that in the final re-
adjustment the skilled railway men
will receive as much as they do now
and that the scaling down would come
among the new and inexperienced
workers.
No Raise in Rates.
Senator Cummins said that in his
result of the attempt to standardize
wages and reclassify the railway
workers during federal control In
this Standardization. and reclassifica-
ton. he declared, there was no proper
differentiation made between skilled
and unskilled labor.
"The whole affair was badly adj
justed," Senator Cummins said. "When
the REIMBURSEMENT that must come is
effected, l believe that the men who
do the real work and most of the
work will get as much as they do
now, and still there will be a big saw
ing"
The senator asserted that it was
absurd to think that it will be nee
essary to give the roads another in
crease i'm rates to meet the situation.
1.-THE rates are so high now~they can't
possibly be raised again." he said