The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-03-03
Large Railroad Salaries
Dwarfed by Comparisons

Large Railroad Salaries
Dwarfed by Comparisons
tRailway Age)
Those who are familiar with rail-
road salaries, and who have read the
information published in the newSpa-
pers this week regarding the salaries
and bonuses that have been paid to
officers OF corporations in other fields,
may feel that the railroads had ceased
to be q part OF the "land of oppor-
tunity" long before the drastic reduc-
tons OF railroad salaries that the
government has caused during the
depression.
No bonuses have been paid to rail-
road officers, and, therefore. their
salaries account for all the compen-
sation received by them. In 1929
three railway officers were receiving
$4,000 q year, two SIPS, 900, and
forty-five from $4,000 to 100000.
These figures present a striking
contrast to the amounts Of compen-
sation paid in salaries and bonuses to
officers OF many other corporations.
The president Of large tobacco COM
pany received $606 900 In 1929, over a
million dollars in 1881 and 1926, 900 in
1892. One tobacco company paying
such large compensation not being
sufficient to supply the demand for
cigarettes, the president OF another
large tobacco company was paid $27l,-
600 and the president Of a cigar chain
store company $4,000. That the
American people have been willing to
pay generously for movies as we'll as
cigarettes is shown by the following
figures regarding the compensation
received by the officers of q single
moving picture producing company:
president, $890,0O0; first vice presi-
dent, $890,000; general manager, $71O,-
GOO; vice president, $4,000. The
president OF another company operat-
ing chain of movie houses received
$4,000.
The American passion for motoring
Is also strong, and the compensation
Of the chief executive Of three auto
mobile manufacturing companies, not
including the largest companies, was
$685., 900. $225,0O0 and $257,O0O, while
the president Of a company making
automobile lights received 1898, 900.
The president Of one chain store COM
pany received $727. 900. and the chair
man of another $267 900 and its presi-
GCdn ~
mail order house received $43l 900,
and the chairman Of another $4O5, 900
and its president $250,O00.
These are but q few examples that
might be cited. The head Of any large
corporation outside Of the railroad
field who did not receive more COM
pensation than any railroad executive
seems to have been "piker." Num-
erous vice presidents Of other corpor-
attonS received much larger compen-
sation than any railroad chairman or
president, and several times as much
as any railroad vice president.
The opponents and advocates of
the New Deal expressly avow that it
is intended. not only to promote re-
covery, but to accomplish great and
permanent revolution In the distribu-
ton OF the national income. not only
by increasing small incomes, but by
reducing large incomes. The reduc-
tons that have been made in rail-
road salaries are not only q part of
This program. but they strikingly illus
trate the fact that salaries, not only
Of 500. 600 a year, but much smaller,
are regarded by many New Dealers
as affording incomes. A bill which
at one time stood a good chance OF
being passed by Congress, contained
a provision that no company to which
loan was made by the Reconstruc-
ton Finance Corporation should pay
any salary exceeding $17,500 year.
It would be difficult to defend, es-
pecially from the standpoint of stock.
holders, many Of the salaries anc
bonuses paid during the period Of
prosperity, In view Of the facts that
they were based upon earnings made
when It was comparatively easy tx
make large earnings, and that many
Of their recipients have demonstrated
an astonishing lack Of capacity fo1
leadership in solving the difficult
problems presented by the depression
to business In general, and therefor,
to their own companies In particular
But progress In industry and com.
merce always has been principally du.
to the superior ability Of q compare
lively few men, their work has in
creased the income Of society as
whole. and most Of the resulting in
crease In total income has been re-
ceived and enjoyed by the many mil
lions Of persons who. without abl
leadership and direction, could neve
have had more than the bare necessi
ties that they could have produce,
with their own hands. Reduce to
much the number and size Of TIL
large prizes to be won. and you Wi
inevitably reduce the intensity Of tn
competitive efforts made by able me,
to win them and the productivenes
Of their work.