New-York tribune., 1921-04-21
Unions Charge
Billion a Year
Railroad w Waste
File Detailed Exhibit of
Sums They Allege Could
Be Saved TO Avert Neces-
sity of Cutting Wages
Assail Liberal Dividends
Assert Use of Locomotive I'M
provements Would Stop
Expense of $272,5OO, 900


Expense of $272, 500, 600
CHICAGO, April 20.-Waste amount
ing to a billion dollars annually is laid
20 managerial inefficieney on American
rsilroads in a detailed exhibit placed
bsfore the Railroad Labor Board to
day as part Of union labor's fight
against reduction of wages. Recover
able wastes were estimated by the en-
ployees at s57s,500, 600 year and other
wastes, impossible of estimation, would
equal that amount, it was declared.
The employees point out alleged
waste In the present railroad admin
istration and maintain that if de-
Aciencies and defaults in management
we're redrsssed and repaired, there
would remain no reason for attempting
to reduce wages. AS method of cor
recting wasteful methods and increas-
ing the efficiency of employees. the
exhibit advocated cooperative effort
between management and workers and
added that this cooperation could hest
be obtained through the medium OF uni
form agreements reached bv collectiva
bargaining.
Recoverable and easily estimated
waste was divided b the exhibit under
nine heads, having to do largely with
construction and care of locomotives
and shop machinery, cost ACCOUNTING
and labor turnover.
The waste which the unions said
could not be estimated in terms Of
money included a variety of subject
ranging from defective train equipment
and tracks to allegations of incompe-
tent and extravagant management.
Term Publicity. Wasteful
In the last class emphasis was laid
upon publicity and advertising and on
what the unions thought were unneces-
sary legal expenses. Such expenditures
it was contended, have served to in,
crease and have been charged wrong
fully to operating costs.
It was also charged that much Of
the detective equipment which the man
agements OF the roads are using as an
argument for the need of decreased
wage costs could have been avoided if
the roads had declared less liberal divi-
dends and used proper proportion of
their earnings to establish replacement
funds.
The following tabulation represents
the waste estimated by the unions wit
nesses and for which authorities are
quoted, giving specifications and ex-
plantations as set forth in the body of
the exhibit:
II. undermining locomotives. Gross
reparable deficiencies in the tractive
power of the railways is pointed out
and It Is shown that by systematic ap-
plication to the locomotives of demon
strated improvements, such as super
heaters, brick arches. mechanical stok-
ers and feed water heaters, there would
result an annual saving of at least
s272, SOC, 900.
"2. Locomotive operstion-The mag
nitude OF the railways coal bill is con-
sidered and certain Of the larger
wsstes calculated, and it is concluded
that by use of better methods Of coal
ceipt and efficient firing of the loco
motives an annual saving could Re ef-
fected of at least S50,000,00G.
3. Shop organization improvements
The sad and almost incredible in
adequacy and out-of-date equipment
Of the railway shops is reviewed, the
defenseless wastes considered, and it
Is conservatively estimated that by
proper shop organization an annual
saving could be effected of at least
n7,000,0 900.
Would Save ON Fuel
-. Power plant fuel saving-The OBJ
solete and wa'steful condition of the
power plants in the railway shops is
considered and it is estimated that in
this field the possible saving of fuel
would, by itself, amount to an annual
total Of s1o,0O0,000.
IS. Water Consumption Savings
Railroads expenditure in maintenance
necessary wastes noted, and it is esti-
mated that easily attainable savings in
the consumption of water alone would
amount annually to $12,600,O00.
.. Service of Supply Savings-The
expenditure Of the railways for sup
phes mas been inquired into and the |
syoidable losses surveyed, and II is
estimated that the wastes and abuses
amount ann cunt annually to not less than $75,-
90. Shop Cost Accounting Savings
Astention has been given to the mat
.e .er OF uniform railroad statistics and
.ne use Of efficient methods of cost
accounting only. An annual saving
s,n would be feasible to the amount Of
sl0,900 900. ''""s u
8. Labor Turn Over Savings-The in |
.uus.r1al losses due to unnecessary labor
ualn-over and to inadequate training Of |
pe.sohne! has been reviewed, and It is
sssS,ilnateu - that the avoidable wastes in
cident to labor turnover alone amounts
70 more than $40 900 900 ' -S'
~, o. LOSS and Damage Savings-Tn-
~ 1s ~ mas been made into the amount
~ ~ -Me annual loss and damage account
VI ~ .ne railways, and into the prevent
aulo ast; causes of such losses, and it is
30 SSo'imated that an annual saving nigh.
oor ogr"sc.ed to the amount of SOC. 900 600.
iotal-lt will be noted that the
asoIaaole as!S wastes here listed are but
ra.uy ;na represented in the accompany
.ns money estimates nevertheless: the
sum OF these incomplete figures rem
s.esent an annual unnecessarv yes+a pe
s57s,5oo ,0oo." ''S ""0'e ol
,os.a uurther alleged large-scale waste
Misses mss. and inefticiencies in the equip
d;ss J;sss ana operation of the RAILWAYS.
ddlmcui1 do1ic1 OF approximate estimate in
h;h;s and cents, are given in the ex-
in 1. L. waste due to remediable defects
~ car equipment. ~~S'
nent. ee'1Vo power equip
''active power. -
Il Due +. s~.y