The labor world. [volume] (Duluth, Minn.) 1896-current, 1922-04-22

4 SSS oA AItC1 otdlC as TIC COIlSullll
4 ployes department of the Amer;
Properties Depleted.
sG "Their properties are depleted"
said Mr.. Lauck, "their efficiency is
seriously impaired. their credit is
undermined, their profits. are dwind-
ling, it is hopeless to ask for highe,
rates, because the traffic cannot
stand higher rates, and. caught in
this impasse, they find themselves
between the horns Of government
control or bankruptcy. And this sit
-uatioh has largely arisen because the
railroads have been dominated by
men who knew how to manipulate te
stocks and bonds, rather than by
men who knew how to carry on the
service Of transportation on the ba :
Sis of a maximum of load for a
minimum of energy"
@ Wages Not Responsible.
I'VE realize that freight and pas
senSer charges may be too hish,"
said Mr.. Lauck at the beginning of
his statement to the committee, 'but
we do not concede that it arises from
paid to railway employees. We ac-
knowledge thaS labor costs of the
toperation Of the railroads are en-
IYcssive, but We wish to take this
Cpportunity Of showing that this is
tue t. the delinquencies of railway
arrangement and policy. and not to
unreasonable wages, working stand
rrds, or int Il ciencieS of railway en-
t,loyes. We VIII even admit that too
4uch has been paid for labor as a
whole, and that. while the individual
employees rates of pay have not
been sufficient, labor costs Of op-
GRAFTON have been too great. This
4 has not been due, however, to any
s lack Of productive efficiency of rail-
} way workers. but to the inadequate
and impaired facilities Of the rail
by railroad officials to he a gener-
alton behind the commercial and in
dustrial requirem ents of the nation
.,--,+- &c., Not Against Managers.
-.". Mr.. Lauck explained that the rail-
way workers want it clearly under
stood that they do not bring charges
OF wastefulness and extravaganza
against present railway executives
who, he said. are struggling unde,
handicap they cannot overcome
but that their structures are directed
against those who made and direct
ed the financial policy of the rail
roads in years past and who today
are endeavoring to foist upon labor
financial reha abilitation Of the roads
He also said that the public should
know that there is a decided differ
ence between high labor costs and
high wages.
Ne Depreciation Fund.
Failure to set aside a sufficient
percentage Of their earnings to
cover depreciation was one Of the
counts in Mr.. Lauck's indictm en-
or the financial mismanagement Of
the railroads. He submitted a table
purporting to show that in the eight
years from 1911 10 1918 the depre-
citation fund of the railroads was
$2,l55, 100000 less than it should
have been under any sound finan-
cial policy, and said that if this
money had been set aside and ex-
pended properly an annual saving
Of approximately $S00,OOO,O0 in the
operating expenses Of the railroads
would have been effected.
Discussing the diverse views of
the railroad executives and the rail-
way workers Mr.. I.auck said that
the former look upon labor simpl.
as an item of operating costs and
the first to be attacked when econ
omies and retrenchment are neces
sarE The workers, on the othe,
hand, regard labor as essentially a
human factor in the operation o1
y the roads and insist that wage re.
ductions should not be considered
until every other measure has beer
taken to reduce operating costs.
Employees and Wages.
Mr.. 14auck went into a detailed
discussion Of the wages of railway
workersr and said tat they should
be determined upon living wage
basis, with differentials for skill, ek
perience, hazards Of employment
md productive efficiency. TO arrive
at what constitutes a living wage hi
cited the various so-called "com
fort budses" which have been com
,, piled by governmental and other au
th6ritative agencies and said tha
on} the basis Of living costs in May
1921, they averaged s1,97. AS agains
this he computed the average annua
compensation of railway workers ii
1920, as corrected by deductin,
Overtime on the basis of figures pre-
scented by the railroads, to hav,
been $1,6O3.36, which was furthe
reduced to $1,475.S9 by the decisio,
OF the, Railroad Labor Board effec
tive July /, 1921.
Large number sof railroad work
ers fall far short of any such earn
Angs, however, according to Mr.
Lauck. Section men to the numbe
r OF 275,352 can only earn $925.3
annually under the present scale,
they work full time; construction
gang and work train employees, mum
aberinx 2S,76O,;1g can s,s average bu
u $97O.O8i Annually;; q y other unskille'
labor numbering Q, can ayerag
Bill II, ,0O0. sss and q, 2,572 crossin!
Ina II CaSfinnsd son page .2.) {
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