Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-02-03
TELLS OF'WAR
TIME OPERATION

consideration tevery expenditure, by
Shippers, travellers, or by congressional
appropriation, the railroad system of
the United States only cost the Amer.
can public an average of s470.637.4O,
per month for all the wartime period
when the government ran it, William
q. McAdoo, first director general OF
the administration, testified today be-
fore senate investigation committee
He said IT was costing under private
control now an average Of s525,412.1S5
per month.
I'm other words, the cost Of private
operation, since federal control, has
been 80 per cent higher than under the
railroad administration" Mr.. McAdoo
said in concluding.
speaking on the general results and
effects of restored private control, and
the return to the old so-called compa-
titive system of railroad operation
with its great wastes and inefficien-
cics, with the tremendous burden i'm
posed on the public of increa sed
freight and passenger rates, the evil
consequences of which are reflected in
the prostration of agriculture, labor
and industry, of the colossal claims
made by the railroad corporal tons
against The government for alleged
under aintcrancc, inefticency Of la
for, etc, l am convinced that it would
have cost the American people less
money to have maintained control for
test period than has resulted from
their return 10 private control.
Il am also convinced that the pres
cnt level of freight and passenger
rates would have been unnecessary be-
cause there il no question in my mind
that a well-directed and unified oper-
alton of tho railroads would enormous
~ reduce the cost of operation, and
greatly increase efficiency"
while the time has gone by" he
said. TO urge retention of the rail
roads by the government, in the first
year of government operations the to-
tai savings made by the railroad adj
miniHtration in unified operation was
$l1S,o00. 600. as against expenses unde:
private operation"
Mr.. McAdoo returned to the attach
on his critics among railroad execu-
tiVcs today, dealing chiefly with two
charges. the first concerning under
maintenance, while the second was a
warm defense of his own labor and
wage policies. Railroads went back
to private ownership, he said, with
more locomotives and more cars
than they had given the government
As to the charges of neglected repairs
he said that the total cost of fitting
freight cars for service after the gov
eminent concluded was not more than
S?.50S. 600. and turning to reported con-
ditions today. he said it would cost
railroads So. So. 900 to repair the cars
that are 200 damaged for service now.
As to wage increases under his adj
ministration. Mr.. McAdoo asserted
they amounted to sS66,SOo. 900 per
year. while increases granted to the
employees in 1920. under private opera
ton. amounted to Sl,091. 100000.
The fact is. railroad employees
worked for less pay during the war
than any other class of Industrial
workers doing similar work" he de-
clared. The realization they were
working for their government in the
stress and strain of war, and that they
would be fairly treated inspired them
and spurred them TO unusual effort
and faithful service"
Taking over the roads. the admin
istration found frequent and costly
labor turnover. discomfort. and de-
moralization." with payrates far lower
than the cost of living or the scales in
private industry justified, he added.
lie recounted the setting up of wage
boards. with management representa-
tiNcs, and the granting of increases.
There was not the slightest COM
plant from any railroad executive
that wage increases in 1918 were too
high" he said. TX X X The charge
that the wages of railroad labor We're
unnecessarily raised and that wages
were thereby elevated throughout the
country is false. The exact contrary
is true.
The schedules of wages promtlgat-
ed by the railroad administration dur
ing 1918 were generally below those
in ether basic industries. and we'll be-
low the rates fixed by the navy yards.
the National War Labor Board and
by the shipbulding adjustment boards
* Conditions in the war in
dustrics necessarily cause the ad-
vances in the rates of pay of rail-
way workers. The railroad admins
tration was itself conservative in
stead of en- initiating influence in the
general advances in wage payments.
Its awards did not go far enough
in meeting competitive conditions in
increasing rates and classifying GER
tain classes of workers"
All the increases approved by him
were recommended by the management
members Of the board. he said. except
that which involved the abolition of
piccc-work in railroad repair shops.
The picce-work system. he said. had
mo advantage in efficiency over day
work" resulted in large payments
to workmcn which was NOT per-
formed" Also it involved less than 10
PER cent of tho employees Of the rail-
roads.
To Race Brown