The Connecticut labor news., 1922-03-24
High Sounding Wagner
Construction C. ON -
pany Develops Into
Horse Manure Co. and
Manager Gets Job of
Managing Erie Re-
pair Work.
Bv CHARLES NJ. KELLEY

Washington, March a. - When the
United tSates Railroad Labor oBard I'M
dertakes an investigation into the farm
ing out policy of the Erie railroad,
whereby it is disposing of its shops and
portions of its maintenance work to
dummy contractors on cost-plus pay
ment plan, it will discovr most inter-
esting situation. At Jersey City, for in
stance, where are located the Erie's most
been entrusted with the repair of cars
and locomotives is a stable clanr
His businss experience has been gained
while dabbling in local politics and re-
moving manure from municipal barns.
In other words, the Understanding Veg
ner Construction and Repair Company,
lessons of the Erie's shops, is the Jersey
City Horse Manure Company.
Operating on a cost-plus basis, Wag-
ner is sitting pretty This is the device
that enabled INSCRIPTIONS men during
the war to take millions Of tribute from
the American people.
When employees OF the Jersey City
shops started out to discover the identity
Of thtir new boss the trail led them di-
rectly into the headquarters OF the Jer-
sey City Horse Manure Co., at l42 Pa
vonia avenue, Jersey City.
hurts W OrRfTS Il0rdlC
That address is also given as the head
quarters of the Wagner Construction &
Repair Co. There, in a small room,
Wagner divides his time between ap-
proving railroad pay rolls, that being
practically the only service required of
him by the Erie management, and re-
COrding his transactions in high-grade
fertilizer.
The effect of this change of manage
ment on the morale of the Erie workers
can be imagined. The old spirit of eff
fcient cooperation has been destroyed,
The contract between the Erie and
Wagner is not available for examina-
ton. 1t is presumed, however, that it
follows substantially the terms of con-
tracts made with other contractors at
various points along the system. If that
be true, then here is the situation that
has been established at Jersey City:
Hoav Contract Stacks Up
l. The shops have been turned over
to an individual wholly lacking so far
as can be discovered, in the requisite ex-
perience for managing 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 thou
sands Of travellers would be jeopardized
by improper handling of car and loComo-
tive repairs.
?. The contractor who has taken pos
session of these vastly important shops
has not a single dollar invested 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
tides of the contract.
3. The contractor is not even required
to finance the undertaking. Erie con-
tracts with dummy concerns provide that
three days before pay rolls are due the
carrier will transfer to the contractor a
sum sufficient to meet all labor charges
then due.
4. The railroad expressly stipulates
that it may, at its option, regain posses
sion of its property on "a hours notice
to the contractors. That provision
makes the instrument inequtable and
stamps it as subterfuge.
Iniquitons Cost Plus Plan
5. The contractor is compensated or
a cost-plus basis He is to get all SAY
ings" resulting from his management uI
to per cent If the savings" do not
reach a thousand dollars month he is
to get that sum anyway, he being guar
anteed an income OF SlZ,UOU year. All
| savings" over ] per cent are to be di-
vided $3.50 between the contractor anc
the carrier.
E. Savings are to be determined in ar
| extraordinary manner. They are to rep
resent the difference between what the
contractor pays in wages and what the
railroad would be required to pay to the
same number of employees under the
transportation act and the awards of the
United States Labor Board.
The more men Wagner can put on the
pay roll the more money he will make
The efficiency of the workers is not TAX
| en- into consideration
A mere cut in labor costs does no.
necessarily mean a reduction in the cos
of operation. AS a rule, it generally
works the other way.
No Precision For Ewciency
, The Wagner contract makes no hare