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

heir 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 higher
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
uation has largely arisen because the
railroads have been dominated by
men who knew how to manipulate
stocks and bonds. rather than by
men who knew how to carry on the
service of transportation on the ba-
Sis of maximum Of load for a
minimum of energy"
Wages Not Responsible.
I'VE realize that freight and pas
senger charges may be too high"
said Mr.. L.auck 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 thaG labor costs of the
operation of the railroads are ex-
cessive, but we wish to take this
opportunity Of showing that this is
due to the deinquencies of railway
management and policy. and not to
unreasonable wages. working stand
ards, or inefficiencies of railway en-
ployes. We will even admit that too
much 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
has not been due, however, to any
lack Of productive efficiency of rail-
way workers, but to the Inadequate
and impaired facilities Of the rail-
roads which are acknowledged even
by railroad officials to be a gener-
alton behind the commercial and in
dustrial requirements of the nation"
1T 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 under
a 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
and the public the burden of the
financial rehabilitation Of the roads.
He also said that the public should
know that there is 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 indictment
Of the financial mismanagement of
the railroads. He submitted a table
purporting to show that in the eight
.cyears from 1911 to 1918 the depre-
eciation fund of the railroads was
i6s2, 155, 100000 less than it should
nave been under any sound finan-
s,rial policy, and said that if this
nnoney had been set aside and ex-
.pended properly an annual saving
Of approximately sSO0,O00,00 in the
operating expenses of the railroads
would have been effected
Discussing the diverse yicws of
the railroad executives and the rail-
way workers Mr.. Lauck said that
the former look upon labor simply
as an item of operating costs and
the first to be attacked when econ
omies and retrenchment are neces-
sary. The workers, on the other
hand, regard labor as essentially a
human factor in the operation OF
the roads and insist that wage re-
ductons should not be considered
until every other measure has been
taken to reduce operating costs.
Employees and Wages.
{ Mr.. Lauck went into a detailed
discussion Of the wages Of railway
workers. and said tat they should
be determined upon a living wage
: basis, with differentials for skill, ex-
pericnce. hazards of employment
md productive efficiency. To arrive
at what constitutes a living wage he
CITED the various so-called ''com-
fort budges" which have been com.
piled by governmental and other au;
}thoritative agencies and said tina
on the basis Of living costs in May
1921. they averaged $1,97. AS agains
this he computed the average annua
compensation Of railway workers ir
= 1920, as corrected by deductine
overtime on the basis of figures pre-
sented by the railroads, to have
been $1,603.36, which was further
reduced to $1,475.S9 by the decision
OF the Railroad Labor Board effec
tive July !, 1921.
Large tnumber sof railroad work
X ers fall Tar short of any such earn
ings, however, according to Mr.
.Lauck. Section men to the numbe
Of 275.352 can only earn $s25.s
4 annually under the present scale, !
they, work full time; construction
y gang and work train employees, mum
x bering 1880, can average bu
Rss7O.08 annually; other unskillet
blabor numbering 2s,760, can averag
HUT S3f 000.6s, and 22,572 CROSSING
y . sstV35