Worcester Democrat and the ledger-enterprise. (Pocomoke City, Md.) 1921-1953, 1921-05-21
RAILWAY INQUIRY
IN WASHINGTON
Excessive Labor Costs and Work
ing Conditions Chief Causes
of Trouble.
NO CONTROL OVER EXPENSE
Prices and Wages Fixed by Govern
nnent Leave Little Scope for
Arrangements.

Washington, D. C.-In testifying be-
fore the Senate Committee on Inter-
state Commerce in the general inves-
tigation into the railroad situation,
witnesses for the railroads contended
that:
% The costs of operation are alb
normal, owing chiefly to wage Scales
established by the government which
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 1920
we're at prices fixed directly by the
government, or by general market con-
dtions and over which the railroad
arrangements 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.
rectors of the Southern Pacific, was
the following, in explanation of the
chief reason for the increase in OPP
Grating expenses since 1916:
THE labor bill of the carriers In
1915 (Which was before the Adamson
law took effect) stood at 81, 469, 576 1874.
In 1920 1t was $369S, 216,351, an In
crease Of 1929, S39,957.
"The increase by years since 1915
has been as follows:
Increase in 1917. .$270, 9o5, TAB
Increase in 1913. ......... 874 1881 ,209
Increase in 1919. ......... 22e, 1915 !081
Increase in 1920. ........ 855, 087, 9ts
or an aggregate increase
since 1915 Of. 2,229 1885, 057
Exhibits were placed before the
committee showing that for the rail-
roads Of the whole country, increased
expenses in 1920 over 1919 were as
follows:
Actual expenses for 1920. Sc, 1853, ,341
Actual expenses for 1919. 4,667,774,13
Inc. fer 1920 over 1919 81 ,4e5, 1854, 21o
Mr.. Kruttschnitt, in showing how
little control the railroads had over
necessary expenditures, said:
"Sixty-four cents out of every dol
lar of operating expenses were, in
1920, paid out to labor, and the wages
of labor are fixed by the government.
Fifteen cents out of every dollar
Of operating expenses was paid for
materials and supplies at prices fixed
by the government.
"Three and one-half cents out Of
every dollar was paid for other ex-
penses incurred by the government in
the first two months of 1920
"A total, therefore, of S2k cents out
Of every dollar Of operating expenses
for 1920 was paid out at prices direct
ly fixed by the government
1.-THE remainder, up to s71a cents;
was for materials and supplies, pur-
chased at prices fixed by general mar
kst conditions and beyond the power
Of the railroads 10 control"
To illustrate how labor costs were
inflated by the National Agreements
entered into during federal control,
fixing rules and working conditions,
the following examples were cited:
1, The Pere Marquette Railway was
tn Il tn hhr,tx
TO four employees because their titles
under these agreements were changed
by = decision 81 the Director Genefai,
while the Nature of their duties and
the volume Of their work remained
the same.
2. A car repairer on the Virgnian
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
and overtime
3. The Shop Crafts Agreement pro-
Woes mat wnen employees are re-
CURED 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
have worked. This rule in the first
$6,5Oooo0. or at rate of $4,000, 900
year.
L.. On the Chesapeake g. Ohio Rail-
ROAD plecework car repairere decreaS-
ed ala per cent and airbrake repair
ers 1874 per cent in efficiency under
guarantee of fixed minimum rate
per hour
S. On the abolition of piece work
on the Union Pacific Railroad In the
wheel shop at Omaha Nebr., the time
required for the same work was In
creased 31.9 per cent and the output
was cut down "a per cent: and in
coach cleaning yard at Denver the
time required was increased 1873 per
cent and the output decreased 28 per
cent.
6. Southern Pacific EMPLOYEES.
whose sole duty was to keep watch
on stationary engines and to stop the
engine in case anything went wrong,
were reclassified by Director General
as electrical workers." one man on
the Salt Lake division being given
back pay Of 1881, another 50 1854
another $2.00S, another S2,003, and six
others amounts varying from $500
to 1890.
7. Under the present classification
rules Of the shop crafts in order to
change nozzle tip In the front end
of locomotive 1t is necessary to call
boiler maker and his helper to open
the door, because that Is boiler maxi
ers work; to call a pipeman and his
helper to remove the blower pipe.
because that is pipsmens work; ana
call machnist and his helper to re-
move the tip. because that is ma
chinists' work; also for the same force
TO be employed for putting in the new