The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-05-22
Wages Considered "Waste" by
Railroads; Plan to Reduce 1t

The railroads future contribution
to their own and the public welfare
is dependent on their ability to oper-
ate with the least possible burden Of
waste, said Eastman of the Inter
state Commerce Commission in urg-
ing railroad dictatorship. The bur-
den Of waste to which Eastman and
the railroad executives refer is rail-
road wages. They propose to remove
this burden in two ways: first, by re-
ducing the number of workers EN-
ployed on the roads by from 100000
to 100000; second, by cutting the
basic rates of pay for the half mil
lion men they expect to leave on the
roads. If put through saving" OF
from two to four hundred million is
hoped for. For whom? Eastman
says for the public. Lofee, Presi-
dent Of the Delaware and Hudson
says for the railroad stockholders,
since the steam railroads of the
United States are the property of
approximately s7s,o55 shareholders. "
suppose We have look at these
shareholders.
Who Owns the Railroads:
Loree hineelf reported that the
Delaware AND Hudson bought 400 900
shares of the stock Of one railroad
during the past year. This railroad
is the N. Y. Central and the holdings
of the D. & H. represent 10 percent
of the entire stock of this road An
other 10000 shares of N. Y. Central
stock are owned by George F. Baker,
Jr, of the powerful First National
Bank of New York. This bank has
other representatives who hold 1885,
900 shares. Edward Hardness, a
Standard Oil millionaire, owns $4,000
shares; the Chase Bank owns at least
$1,000 shares; the Bankers Trust Co.,
$4,000 shares and so on down the
line. Other Wall Street banking
houses hold blocks Of 10000 shares
or more. Where does the public
come in?
What is true OF the N. Y. Central
is true of every other road. The
Lackawanna is owned by the same
Bakers and Vanderbilts who own the
Central. The Erie is owned by the
House Of Morgan, whose representa-
tives hold at least 10000 shares
the First National Bank Baker in
terests) and the New York Trust Co.
(2l5,o00 shares.
Eastman's public" is the human
interest stuff behind which the cap
tains of finance stage their show.
This public" with its two or three
shares apiece cannot be fed on the
$3.50 a year dividends of the Chesa-
peake and Ohio or the so cents a
year now being paid by the Pennsyl-
vanis. Neither can they afford to
gamble with their tiny holdings as
can the big fry. No, it is not the
welfare of the public, but the welfare
Of the railroad millionaires which
is TO be guaranteed by cutting the
jobs and wages OF railroad labor.
The Money Is There But Not for Us
Do the railroad workers have to
be squeezed dry to keep the railroads
of the county running, so that grain
can leave the farms, coal leave the
mines and food, clothing and ma
terials reach the cities and the
people of the country? This is the
impression the railroad owners are
trying to create. 1t is false impress
sion, deliberately put out in the face
of facts and figures to the contrary.
A statement issued by the Weekly
Survey Of Standard Railroad Sc
curities April 10, 1888, shows that
10 railroads, which did over one
third of the railroad business of the
country in 1882 covered their fixed
charges Interest. taxes, etc.. one
and a half times and AND THEN
SHOWED A SURPLUS OF 500 mil
lion. This is just the amount the
roads want to take in wage cuts.
Should the earnings of railroad work
ers, which in 1892 dropped TO an
average below $1,000 year. be fur
ther cut TO maintain the dividends