Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1922-05-31
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: THE RAILROADS and
THEIR EMPLOYEES
Published by request of
B. of L. F. s. E. No. 50

UH4S9ss9 4Pse
To What Extent Was Grating Prac.
ticed When the Government Guar.
anteed Railroad Expenses?
Under the terms of the Cummins-
Esch transportation bill, providing for
the termination of federal control of
railroads and their return to private
management, the carriers were guar.
anteed for a period of six months a
proportionate amount of the rental
paid them while they were being op-
Grated by the government, which ag-
gregated $906, 100000 annually.
In other words, the owners were to
be compensated out Of the federal
treasury for any losses that might be
sustained in operation, and in addi
ton were to be paid as profit $685..
100000.
That railroad arrangements took
advantage Of this guaranty to make
raids upon the federal treasury is
susceptible to easy proof.
During the six months while the
government was overwriting railroad
operating costs the arrangements in
duiged in veritabIe orgy Of extrava
CANT and wasteful expenditures and
grating.
Millions Lost to Government
The exact sum lost to the govern
ment has not been ascertained, and
perhaps never will be known. In a
statement filed with the Interstate
Commerce Commission in April, 1920
William H. Johnston, president Of the
International Association of Machin
lists, complained that the railroads had
robbed the government of approximate
ely $750,0O0,O00 through the manipu
contracts alone.
This charge was made the basis OF
an investigation by the Interstate Com
MERGE Commission, which substantial
ted Mr.. Johnston's charges so far as
the Pennsylvania, the New York Cen
trail, The Atlantic Coast Line, the Chi
cago, Milwaukee and St. Paul, the Chi
cago, Burlington and Quincy and the
Chicago and Northwestern Railroads
the only roads investigated, are con
cerned
Officials of these roads, testifyine
before the Interstate Commerce Com
mission, admitted that they had pale
the Baldwin and other concerns fol
making locomotive repairs as much
as SIX TIMES what the work wouic
have cost had it been performed IL
the companies own weII-equippee
shops.
While these contracts were ;bein1
diverted to private concerns, in which
railroad officials have a direct finan
cial interest, employees of the rail
roads were being discharged by thu
thousand.
1t is also in evidence that the mo
tive power of the six railroads invol
we'd in these extravagant contract:
was in better condition than it ha(
been for years.
Exploited Guaranty Provision
The plain inference of these trans
actions is that railroad officials wer.
taking advantage Of the generou:
guaranty provision Of the Cummins
Esch bill to make big profits for them
selves and the private companies witt
which they were affiliated.
If there is any doubt as to what wa!
in the minds Of railroad managers, i
| is effectively removed by a letter writ
ten by w. E. Besler, president of thu
Jersey Central Railroad, to C. f
Chambers, superintendent of motive
power and equipment of that corpor
alton, in which Mr.. Besler insisted tina
bills fer repairs being made by Bald
wins shall be rendered before the ex
piration Of the guarantee period. TIL,
letter says:
"Your letter Of March 81, with ref
erence to IS engines to 6aIdwin's ant
IS to the American Locomotive, all o
which is approved, and hope yo.
will have the work pushed to the YER!
limit in the matter Of early compile
ton, so WE MAY HAVE BILL