Evening journal., 1922-04-15
WaIbW Rebuts Labor Claims

CHICAGO, April 14.-Continuing
his analysis in rebuttal TO the con-
tentions OF tie labor representatives
in the wage hearing before the
Railroad Labor Board in Chicago,
John @. Walber. representing the
eastern carriers. said the principal
contention OF labor appeared TO be
that during 1920 the expenditures Of
the railroads for maintenance were
excessive. Walber declared he could
not understand how this charge
would serve the interests Of labor.
particularly as the amount of ex-
penditure for maintenance during
the eight months Of the year 1920
is controlled by a standard contract
between the Government and the
corporations and by the provisions
OF the transportation act itself. I'VE
submit" said Mr.. Walber, that
there is in Mr.. Warne's testimony
absolutely no justification of the as
sertion which, while not pertinent to
this case. is nevertheless a serious
charge against the railroads that
there was deliberate over-mainte-
nance in 1920 at tke expense Of the
Government"
Mr.. Walber read extracts from the
report OF the director general of
railroads to the President covering
fourteen months ending March 1,
1920. in which the director general
said. I'm 1919 it had become ap-
parent that Congress was anxious to
see the railroads returned TO private
control at the earliest practicable
date, and was not favorably inclined
toward making any appropriations
for any expenditures by the Rail-
road Administration which could be
avoided. II therefore became neces-
sary TO cut down authorizations for
expenditures In 1919 TO those re-
garded as unavoidable. As result
of this policy no new equipment
was ordered by the Railroad Admin
istration (although about forty mil
lion dollars was authorized for bet
terment OF existing equipment and
for small amounts of new equip
ment which was ordered directly by
some of the companies) and the ex-
penditures for additions and bet
terment to way and structures were
restricted to those which were re-
garded as imperative This policy
was acoentuated and had to be fol-
lowed with the closest possible
strictness. because of the adjourn
ment OF Congress March 4. 1920.
without the passage by the Senate
OF an appropriation OF $3.50, 900, 900
for the Railroad Administration
which had been passed by the
House" In another part of this re-
port from the director general, the
President was informed that unless
the railroad companies should be
able to adopt and enforce certain
indications Of facilities and equip
ment and control in the common in
terest OF the handling of business in
time of stress, the available facilities
and equipment would turn out to be
wholly unequal to the requirements
of the public. Even with substan-
tial continuance OF all the impor-
tant methods OF unifcatlon and
common control" said the director
general, the necessity for very
large capital expenditures, both of
way and structures and for new
equipment, will be very great"
Mr.. Walber took issue with the
declaration of Warne that the rail-
roads secured much OF their main
tenance Of 1921 one year ahead of
time. in 1890, and at the expense Of
the United States government. The
only basis for this claim" said Mr.
Walber, "is that the maintenance
charges in many cases for 1920 were
in excess OF those in corresponding
periods during Federal control. The
charge Is absolutely unsubstantiated
by any facts as to the extent of the
maintenance actually performed in
the year 1920. as compared with
years during Federal control and
and prior thereto measured in ties.
rail, ballast and other maintenance
items. It also ignores the we'll
known fact that In 1920 there were
increases In wages as well as prices
OF material over previous periods.
This charge also ignores the definite
provisions Of the standard contracts.
between the Government and the
carriers and the specific provisions
OF the transportation act, which says
that they should not be included in
operating expenses for maintenance
OF way and structures or for main
tenance Of equipment more than the
amount fixed by the commission.
The transportation act, Mr. Walber
shows. limits the amount Of main
tenance to be carried on to the
amount carried on by the railroads
themselves in the period immediate
ly prior to Federal control. 'The
Interstate Commerce Commission
now has large forces checking these
amounts" said Mr.. Walber, "and we
feel that this board may be perfect