The labor world., 1922-04-01
Straw Man for Road.

on " . = -H',-.- = 49, . 49,.
p Straw Man for Road.
At Jersey City. for instance, where
are located the Eries most important
shops, the contractor who has been
entrusted with the repair Of cars and
locomotives is. a stable cleaner. Z
His business experience has been
gained while dabbling in local poll:
tlcs and rem owing manure from mu-
nlclpal barns. In other words, the
high-sounding Wagner Construction
and Repair company, lessons of the
Erie's shops, is the Jersey City Horse
Manure company.
! operating ON a cOst-plusa basis,
Wagner is sitting pretty This is the
device that enabled iunscrupulous
men during the war to take millions
OF tribute from the American peo-
pie.
When employees of the Jersey City
shops started out to discover the
identity of their new boss the trail
led them directly into the headquar-
ters of the Jersey City Horse Ma
nure company, at 142 Pavonia ave-
nue.. Jersey City ~ - y -
Hurts Workers Morale.
That address is also given as the
headquarters of the Wagner Con-
struction & Repair Co. There, In a
small room, Wagner divides his time
| between approving railroad pay rolls,
that being. practically the only serv-
ice required of him by the Erie man
agement, and recording his transac-
tions in high grade fertilizer.
! The effect of this change of man
agement on the morale of the Erie
workers can be imagined. The old
spirit of efficient corporation has
been destroyed. ~. r.. ...~.
| The contract between the Erie
and Wagner is not available for ex-
animation. 1t is presumed, however,
that it follows substantially the teiInss
OF, contracts made with other cont
tractors at various points along the
system. If that be true, then here is.
the situation that has been estab-
lished at Jersey City: "
| I How Contract Stacks Up. -
l. =. The shops have been turned
over to an individual wholly lack
ing, so far as can be discovered, i'll
the requisite experience for manag-
! ing repair shops at one of the most
important terminals in this country.
They are in the heart of the densest
traffic conditions that exist today.
The safety of hundreds of thousands
of travellers would be jeopardized by
improper handling of car and loco-
motive repairs. Z. ~ ~
2. The. contractor who has taken
possession of these vastly important
! shops has not single dollar invest
ed in them. He took them over just
as they were when the contract was
made and is not required to add to
them in any manner. This speaks
strongly against the bona fides Of
the contract. .ar.. = Xxx
81 The contractor is not even re-
quired to finance the undertakings,
Erie contracts with dummy concerns
provide: that three. days before pay
rolls are due the carrier will trans-
fer to the contractor sum suffi-
cient to meet all labor charges then
due. -: b. s.@s-. ..-
4. The railroad expressly stipu-
lates that it may, at its option, re-
gain possession. Of its property on "a
hours notice to the contractor That
provision: makes the';instrument in-
eQuitabl and stamps it.. as a SUBJ
terfuge. y -, F.s b
Iniquitons Cost-I4Es Plan.
S. The contractor is compensated
ON a cost-plus basis. He is to get all
savings resulting from his man
agement up tos,7 per cent. If the
"savings'' do not reach a thousand
dollars month he is to get, that sum
anyway, he being guaranteed an in
come Of $4,000 a year. All .'sav-
ings" over per cent are to be di-
vided $3.50 between the contractor
and the carrier. .-.
6. Savings are to be determined
in; an extraordinary manner. They
are to represent the difference be-
tween what the contractor pays In
wages and what the railroad would
be required to pay to the same num-
ber Of employees under the transport
tations act and the awards of the
United States Labor Board.
The more men Wagner can put on
the pay roll the more money he wilt
AneNS' CsSlAACASAASyys Ol llAe WOThSISE
is not taken into considerations.
a mere cut in labor costs does not
necessarily mean a reduction In the
cost of operation. AS rule, 1T gen-
orally works the other way.
No Provision for Efficiency.
The Wagner contract makes no
hard and fast provisions to control
this important element. All. chat is
demanded Of the contractor IS that
he advise thes4railroad at stated tn-s
teryals the amount he is paying
workers. the number employed, and
the service rendered. The raiIroadg
then figures out how much these
workers have received had they been
paid 1t the rate Of wages prescribed
bysthe Labor Board. The difference
riding TO the formula, Ii termed
savines. :. That Is all there is to IT,
Aasimnle arfthm etical exercise.
But there Is vastly more to the
contract 50 far % the public and
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