Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1921-03-18
CHARGES of Extravaganza, Inef-
fiCiency and Dishonesty in
Management Made.
CONGRESS- TO GO AFTER DATA
Senator cun1mins, Who Will Have
Charge of the Probe, Says There
Is Something Wrong-Pct..::S
Entitled to the Facts.

washington, March 17.--Reports of
extravaganza, inetficiency and dishon-
esty in the management of the rail
roads since their return to private
ownership last March, win be thor
oughly sifted in the senate investiga-
ton of the railroad situation which
will be begun shortly after the new
congress conyenes 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-C -Cummins trans
portation act under which the roads
were turned back to private control
While the committee will look into
the railway labor situation and hear
the case of the brotherhood heads. it
will only be as a corollary subject,
Senator Cummins said. The main
purpose of the investigation, he as
HGitCht VIII OG " 0SNSAl why III StAC
Il months of private control the raods
have been able to earn only a net
operating income of S10,000000, which
represents about one-fifteenth per cent
of their property value, and $900,000,-
600 less than they were expected TO
earn under the transportation act.
I'VE 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
81 public is entitled to know how this
has come about and If there is any
truth in the reports that this condi-
tion is due to mismanagement, dis
honesty and extravagance."
The senator declared that, if any o.
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 un-
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-
tiOn In the cost of operation and
maintenance must be effected. OF this
reduction, he asserted, labor must
bear its 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.
Senator Cummins said that In his
estimation the present problem Is the
result of the attempt to standardize
wages and reclassify the railway
workers during federal control. In
this Standardization and reclassifica-
tion, he declared, there was no proper
differentiation made between skilled
and unskllled labor.
The whole affair was badly ad-
justed," Senator Cumna' as said. "When
the readjustment that must come is
4 effected, l believe that the men who
DO the real work and most of the
work win get as much as they do
low, and still there will be big saw
Ing"
q The senator asserted that it was
4 absurd to think that it will be nee
eSsary to give the roads another in
crease in rates to meet the situation.
The rates are so high now they can't
.st NgN