Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1922-06-07

but ii the face internii tttent employ
ment, andsln many cases of completss
unemployment, their present wage
does not meet ever The absolutely ne
cessary charges 81 food, shelter and
clothing" .ssz..S sYs5.
IN 4 support Of the fore going st may
be stated that a study 81 wages re
Gently issued by the Peoples Legisla-
tive Service Of Washing on, D. e.,
shows that on july 1921, 932, 14O
railroad workers, or 81 per cent OF the
total number :empl Logged, we're earning
less than enough to provide the min
imum comfort budget for a family OF
five. prepared by the United States
Bureau Of Labor, Statistics:
In other words; on that date 81 per
cent Of all the railroad workers were
receiving less than what governments
al research had demonstrated, was 4
living wage according to American
standards. .r,.,. - GU. ~
Relation Of Wages and Rates z ::
DR.. Warne pointed OUT that the In
terstate Commerce Commission did
not agree with the railroads in their
contention that low wages meant low
rates. IN the famous give Per Cent
Rate, Case" the Commission il cid that
"eyen greatly incr eased rates Of wag
es are perfectly consistent with re-
Educed unit labor, costs and it cited;
in support Of its contention, the: ex-
perience of the: Pennsy lyania RAILROAD
in its Juniata shops probably. the
largest railroad shops,in the world.
From 1908 to 1918 the rate Of wages
in. these shops Increased nearly 40 per
cent, but according to the cost account
ing system of the Pennsylvania Rail
road, the cost of building locomotives
steadily decreased. ...5 .st -.
DR.. Warne undertook to show how
the railroads could make sweeping re-
auctions in rates without touching the
compensation of the workers.
When the roads were returned to
their owners on March l.. 1920, the In
,terstate Commerce Commission was
compelled to guess at the value of
the railroads, and fixed.a tentative"
valuation Of $18,900;000, 600. It then
placed freight and passenger rates sui
fciently high to enable the roads to
earn s per cent on this valuation, and
to pay the employees $600,0G0,0CO a
year in addition to the amount they
were then receiving. go
| In August, 1920, when the roads
were asking for freight and passenger
| increases, their pay rolls amounted to
$685., 100000 a" month, and they used
that fact as an argument. to support
their claims for higher rates. -
Having received the Increased rates
they began slashing their: pay rolls
with the result that in April Of 1921
the pay rolls of all the" roads in this
country totaled only: 1921; 100000
THIS WAS. A DECREASE, OR saw
ING, OF $114,cooooo A MONTH, or
OF st,36e, 900 900 A YEAR. No part
Of: this saving was ret, returned to thu
shippers. '''' % ,'''''''
! In addition to this, the United Sta:
tes Railroad Labor Board. ordered a. 1:
1 per. cent cut in the employees wages
thus :effecting an yadditionalz. saving o.
s4oo,0o0,0o0. On top@of thatsthe board
made sweeping changes insthe rule:
governing working Conditions, and il
is estimated that those changes viii
met THE sSRAILRoADs SOME
! PLAcE@8ETWEEN $2o0,oo0,ooo AMI
$500, coo,o " ~. = H.
Dr.rWarne told the Interstate Com
meree, Commission that despite thes'
sweeping reductions in pay rolls, Their,
have been only slight reductions il
freight rates and that these reduc
I tions; have AFFECTED less than I'VE pc
:; cent@of the freight traffic. "'~Accordin.
to railroad estimates the cost Of thes,
reductions is somewhere between $35
100000 and: $4,000, 600.
:. Profits on Watered Capital
DR.. Warne pointed out that 6 pc
: cent on SIS, 100000, oo1the ;Interstat
4 Commerce Commi tentative val
uation of the? property of the railroa,
companies would amount to $1,134
100000. That is the profit the rail