The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-08-11

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even the meager 11a1o addition
to their 1924 earnings which
represents the maximum bonus
for the year.
First Cousin to "5. & o."
This bonus plan of the Southern is
one Of the several schemes Of the
railroads to identify the employees
with management. 1t belongs in the
same class with the Baltimore & Ohio
shop cooperation experiment which is
producing reduced costs and in
creased profits for the stockholders
but little for the employees except
claims of steadier jobs.
The Southern plan was incorporat-
ed into three year agreements signed
with the operating brotherhoods
and the American Train Dispatchers
association as rider to five percent
wage increases for the brotherhoods
and and 10 percent for the dispatch
ers. If successful it would tend to
make the employees pay their own in
creases by harder, more careful work.
How the Bonus Works.
It specifies that if in spite Of the
wage increases the ratio of certain ex-
penses to gross revenue is no higher
than in 1923 the management will pay
each employee bonus of IL percent
of his total pay for 1924 and percent
for 1925. The expenses to be includ-
ed in the ratio include the wages of
the men affected and in addition the
fuel used by locomotives, other sup
plies for locomotives, yard supplies
and expenses, train supplies and ex-
penses, cost of clearing wreck, dam
age to livestock on right Of way, loss
or damage of freight and baggage,
and injuries to persons. The ratio of
these to gross revenue in 1928 was
I2142 percent. Fractions of percent
by which this ratio is increased dur
ing 1924 and 1925 will be deducted
from the bonus until the bonus is
eliminated. But the employees secure
no corresponding gain if they reduce
the ratio.
Results for the first 4 months of
1924 show that in spite of their eff
forts the employees have fallen about
1-3 Of 1 percent short Of keeping ex-
penses down to the test ratio, in other
words that they must do better to
secure the full III percent bonus for
the year. The slump in revenue due
Ito business depression is against
them. The Southern railway used
1928, year Of unprecedented prosper
ity when gross revenue was IL per-
cent above the previous year, as the
test period.
Fine for Management.
Results from the management's
point of view are exceedingly graft
flying. The extent to which the eff
forts of the employees are cutting
costs and keeping up profits are
shown by interstate commerce COM
mission figures for the first months
Of the year. Net ton miles Of revenue
freight fell from SS,419, 900 in 1923
to S,752,234,OOO in 1924, reduction of
10 percent; operating revenues fell
from S61,S63, 0O2 in 1923 to $5S,609,-
275, or $3,253,727; but the roads
profits fell less than half million
from $11,17S,OS4 in 1923 to s1O,69S,3S
in 1924.
Other figures show that this re-
markable result was due to the in
creased efficiency of the operating
men. When trafic declines the oper-
ating ratio generally goes up. In
stead it fell from 1853 percent to 74.9
percent. The ratio of transportation
expenses to operating revenues de-
clined from 1872 percent in 1928 to
37.s percent in 1924. And the pounds
Of coal consumed per 1000 gross ton
miles fell from 212.4 in the first five
months of 1928 to 1902 in the same
period of 1924, remarkable reduc-
ton.
The bonus plan is working to the
satisfaction of the stockholders. The
maximum ~ percent additions to the
wages of the employees is still prob
lematical.