Evening journal., 1922-06-23
GREAT REDUCTION IN EMPLOYEES

Il CURED since the railways were returned to pri
vate operation" says the Railway Age 'has been tn
reduction the number OF employees" 1t calls atten
tion the that statistics Of the Interstate
Commerce Commission show that in the first thre
months Of 1922 the number of employees was abou
4ss 900 less than at control il
1920 and the payroll about 900 month less.
I'VE have heard the last of the question Of gov
ernment ownership" the Age adds. smith w. Brook
hart very radical advocate Of government ownership
has just been nominated for the United States Senate
by the Republicans Of This is a portent which
shows that facts illustrating the difference between the
deficiency OF government private operation cannot
be too often presented No other facts illustrate it more
forciby the increase in the number of en-
ployes which occurred under operation and
the remarkable which has occurred since pri-
vate operation resumed"
When the government seized the railways in Deem
lber 1917 they had 17O3,74s their payrols 1t
operated them end of February 1920, and the
average number Of employed in the first three
months of 92O was 1993524 and the total payroll was
S795.6163 $50 year later, in the first quarter Of
I192l, the number of employees had been reduced to
,691 All. Although meantime average increase of
nearly % per cent. in had been granted, the
total payroll for this smaller number of employees was
only $757325,356.
stil another year has by. The statistics of
the Interstate Commerce Commission regarding the
number Of employees and wages paid in quarter
lof 1922 are now available They show that in this
period the average number OF employees only 1555
1871 and the total payroll SG164O6474. The reduction
In the of employees since the first quarter of
1920 Is 4377s7. the reduction in the payroll over
s179 OOOO or at the rate OF about s6o,OOo,OOo
month
The heavy decline of trac in 1921 rendered It pos
slble as well as necessary for the railways to make
large part of the retrenchments In tho payroll and in
other expenses which been effected. Experience
makes practically certain. however that reductions
In payroll approaching these would have been made un-
der government control the early of 1919 un-
der government control the traffic declined but the
number OF employees continued to increase
The reduction which has been made in the payroll is
reflected in striking way by the operating expenses
In the first three months of 1920 total operating ex-
penses were s13,772OOO day. In the first three
months of 921 they S13,63sOOO a day In the
first three months Of 1922 they $11,366OoO day
a reduction compared with the first three months
1920 of S2,4OOO00 day.
The advocate Of government ownership is likely to
say that this increase efficiency merely benefited
the railways the expense of their employees and to
denounce the results gained under the Transportation
Act as of no the public Let The total
amount paid by the public for railway transportation in
the first three months OF 1920 including the deficit
CURED as a result government operation, s16,
44O 900 day. Pm the first three months Of 1922 the
total amount paid by the public for railway transpor-
taton was only $141OO,OOO day In other words, the
reduction in operating expenses effected between the
first quarter Of 1920 quarter OF 1922
about s24OO day, and the reduction in what the
public paid 6or railway transportation was about 81
$40 900 a day Meantime there in ancrease Of over
$50 900 day the public collected from the
railways Thus It appears that tho public. in reduc-
ions in the amount it pays for transportation and in
Increases in the taxes collects from the railways has
actually got exceeding all the reductions in
wages and operating expenses which the railways
nave made And now reductions of have been
ordered on July which would absolutely of the
uestion except for the economies which have been
nected. II
In view Of the foregoing it is extremely
ficult to understand how any intelligent can
rgue that government operation is efficient than
rvate operation that the public does not benefit by
he superior efficiency of private operation But. then
men do not be intelligent advocate govern
aent operation Brookhart, who has recently been
dominated for Senator Iowa. estimated in tcsti- II
nony before a Senate Committee Washington De- II
ember 1917 railway operating expenses would be
educed over 100000 900 a year under government H
ontrol The policy he advocated adopted op-
ear. iii
Mr. Brookhart apparently knows just about much iii
bout railway matters he did before govern III
ient control adopted the Railway Age concludes
nd thousands Of Delawareans will with in that
onclusion. iii