CHAPTER VII

THE LABOR PLIGHT OF THE RAILROAD

Some eighteen per cent of the 2,000,000 railroad employees of the land,

receiving a little over twenty-eight per cent of their total pay-roll, are

affiliated with the four great brotherhoods--of the engineers, the

firemen, the conductors, and the trainmen. In fairness it should be added

that the reason why this eighteen per cent in numerical proportion,

receives twenty-eight per cent in financial proportion, is that the

eighteen per cent includes the larger proportion of the skilled labor of

the steel highway. Offhand, one would hardly expect a track laborer to

receive the same wages as Freeman, whose skill and sense of responsibility

entitles him to run the limited.

Yet how about this section-boss, this man whom we have just interviewed as

he stands beside his job, the man who enables Freeman's train to make her

fast run from terminal to terminal in safety? Remember that in summer and

in winter, in fair weather and in foul, this man must also measure to his

job. He must _know_ that his section--six or seven or eight or even ten

miles--is, every inch of it, fit for the pounding of the locomotive at

high speed. You do not have to preach eternal vigilance to him. It long

since became part of his day's work. And to do that day's work he must

work long hours and hard--as you have already seen--must be denied the

cheeriness and companionship of men of his kind. He frequently must locate

his family and himself far apart from the rest of the world. All of this,

and please remember that his average pay is about one-third of the average

pay of the engineer. It is plain to see that no powerful brotherhood

protects him.

If space permitted we could consider the car-maintainer. His is an equally

responsible job. Yet he, too, is unorganized, submerged, underpaid. His

plight is worse than that of the station agent--and we have just seen how

Blinks of Brier Hill earns his pay. As a matter of fact Blinks is rather

well paid. There are more men at country depots to be compared with

Fremont--men who give the best of their energy and diplomacy and all-round

ability only to realize that their pay envelope is an appreciably slimmer

thing than those of the well-dressed trainmen who ride the passenger

trains up and down the line. The trainman gets a hundred dollars a month

already--and under the Adamson law he is promised more.

This, however, may prove one thing quite as much as another. It may not

prove that the trainman is overpaid as much as it proves that the station

agent is underpaid. Personally, I do not hesitate to incline to the latter

theory. I have learned of many trainmasters and road foremen of engines

who have far less in their pay envelopes at the end of the month than the

men who are under their supervision and control. And there is not much

theory about the difficulty a road finds, under such conditions, to

"promote" a man from the engineer's cab to the road foreman's or the

trainmaster's office. In other days this was a natural step upward, in pay

and in authority. Today there is no advance in pay and the men in the cab

see only authority and responsibility and worry in such a job--with no

wage increase to justify it.

Down in the Southwest this situation is true even of division

superintendents--men of long training, real executive ability, and

understanding who are actually paid less month by month than the

well-protected engineers and conductors of their divisions. There is no

brotherhood among station agents, none among the operating officers of the

railroads of America. And yet for loyalty and ability, taken man for man,

division for division, and road for road, there are no finer or more

intelligent workers in all of industrial America. Still the fact remains

that they are not well-paid workers.

When is a man well paid?

According to the public prints, Charlie Chaplin, that amusing young clown

of the movies, receives from a quarter to half a million dollars a

year--according to the ability of his most recent press agent. I happen to

know that a certain missionary bishop down in Oklahoma receives as his

compensation $1,200 a year--although he never is quite certain of his

salary. With due respect to the comedian of the screen-drama, does anyone

imagine that his influence in the upbuilding of the new America is to be

compared for a moment to that of the shepherd of the feeble flocks down

in the Southwest?

Your economist will tell you, and use excellent arguments in support of

the telling, that the wage outgo of the land is fixed, in definite

proportion to its wealth. Granting then that this is so--one thinks twice

before he runs amuck of trained economists--is it still fair to infer that

the track foreman or the car-maintainer or the station agent is amply

paid? And is it equally fair to infer that the pay of these three classes

of railroad employees, so typical of unorganized transportation labor,

could be raised by lowering the pay of organized employees without leaving

these organized employees actually underpaid? And what assurance has the

average man, the man in the street, that any reduction in the pay of the

engineers, the conductors, the firemen, and the trainmen--if such a

miracle actually be brought to pass--would result in a corresponding

increase in the pay of the other eighty-two per cent of the labor of the

railroad?

These are questions that must be answered sooner or later. In the present

situation it looks as if they would have to be answered sooner rather than

later. With them come others: Assuming still that our economist with his

belief that the wage outgo of the entire nation is correct, is it not

possible that the railroad as an institution is not getting its fair

proportion of the national total? I have just shown you how eighteen per

cent of the railroad's employees receives twenty-eight per cent of their

pay-roll. It would be equally interesting to know the percentage of

national wage which goes to all the employees of all the railroads.

I cannot but feel when I realize the great annual total of wages which are

being paid in the automobile and the war-munitions industries, to make

striking instances, that the railroads are by no means receiving their

fair share of the national wage account. Even the salaries paid to

railroad executives, with the possible exception of a comparatively small

group of men at the very top of some of the largest properties, are not

generous. There has been much misstatement about these salaries. Because

of these misstatements it is unfortunate, to say the least, that the

railroads have not followed a policy of publishing their entire

pay-rolls--from the president down to office boy.

But the fact remains--a fact that may easily be verified by consulting the

records of the Interstate Commerce Commission--that railroad salaries are

not high, as compared with other lines of industry in America. That is one

reason why the business has so few allurements to the educated young

men--the coming engineers of America. They come trooping out of the high

schools, the technical schools, the colleges, and the universities of our

land and struggle to find their way into the electrical workshops, the

mines, the steel-making industry, the automobile shops, the telephone,

even to the new, scientific, highly developed forms of agriculture. Few of

them find their way to the railroad.

This is one of the most alarming symptoms of the great sick man of

American business--his apparent utter inability to draw fresh, red blood

to his veins.[6] A few of the roads--a very few indeed--have made distinct

efforts to build up a personnel for future years by intelligent

educational means. The Southern Pacific and the Union Pacific have made

interesting studies and permanent efforts along these lines. But most of

the railroads realize that it is the wage question--the long, hard road to

a decent pay envelope in their service, as compared with the much shorter

pathways in other lines of American industry--that is their chief obstacle

in this phase of their railroad problem.

It has been suggested, and with wisdom, that the railroad should begin to

make a more careful study and analysis of its entire labor situation than

it has ever before attempted. Today it is giving careful, scientific,

detailed attention to every other phase of its great problems. One road

today has twenty-seven scientific observers--well trained and schooled to

their work--making a careful survey of its territory, with a view to

developing its largest traffic possibilities. And some day a railroad is

to begin making an audit of its labor--to discover for itself in exact

fact and figures, the cost of living for a workman in Richmond or South

Bend or Butte or San Bernardino. Upon that it will begin to plat its

minimum wage-increase.

Suppose the railroad was to begin with this absolute cost of living as a

foundation factor. It would quickly add to it the hazard of the particular

form of labor in which its employee was engaged expressed in dollars and

cents--a factor easily figured out by any insurance actuary. To this again

would be added a certain definite sum which might best be expressed,

perhaps, as the employee's profit from his work; a sum which, in ordinary

cases at least, would or should represent the railroad's steady

contribution to his savings-bank account. To these three fundamental

factors there would probably have to be added a fourth--the bonus which

the railroad was compelled to offer in a competitive labor market for

either a man or a type of men which it felt that it very much needed in

its service. Only upon some such definite basis as this can a railroad's

pay-roll ever be made scientific and economic--and therefore permanent.

An instant ago and I was speaking of bonuses. The very word had, until

recently, a strange sound in railroad ears. The best section foreman on a

line may receive a cash prize for his well-maintained stretch of track; I

should like to hear of a station agent like Blinks who knows that his

well-planned and persistent effort to build up the freight and passenger

business at his station, is to be rewarded by a definite contribution from

the pay-chest of the railroad which employs him. Up to very recently there

apparently has not been a single railroad which has taken up this question

of bonus payments for extra services given. To the abounding credit of the

Atchison, Topeka, and Santa Fé Railway and its president, Edward Payson

Ripley, let it be said that they have just agreed to pay the greater

proportion of their employees receiving less than $2,000 a year a bonus

of ten per cent of the year's salary for 1916--a payment amounting all

told to $2,750,000. The employees so benefited must have been employed by

the Santa Fé for at least two years and they must not be what is called

"contract labor." By that the railroad means chiefly the men of the four

great brotherhoods whose services are protected by very exact and definite

agreements or contracts. The men of the brotherhoods are hardly in a

position to expect or to demand a bonus of any sort. And it also is worthy

of record that practically every union man, big or little, has placed

himself on record against bonus plans of every sort.

I hope that the example of the Santa Fé is to be followed by the other

railroads of the country.[7] It is stimulating and encouraging; it shows

that the big sick man of American business apparently is not beyond hope

of recovery. For, in my own mind, the bonus system is, beyond a doubt, the

eventual solution of the whole involved question of pay as it exists

today and will continue to exist in the minds of both employer and

employee. Our progressive and healthy forms of big industry of the United

States have long since come to this bonus plan of paying their employees.

The advances made by the steel companies and other forms of manufacturing

enterprise, by great merchandising concerns, both wholesale and retail,

and by many of the public utility companies, including certain traction

systems, are fairly well known. It is a step that, when once taken, is

never retraced. The bonus may be paid in various ways--in cash or in the

opportunity to subscribe either at par or at a preferred figure, to the

company's stock or bonds. But there is little variation as to the results.

And the workmen who benefit directly by these bonus plans become and

remain quite as enthusiastic over them as the men who employ them and

whose benefit, of necessity, is indirect.

* * * * *

In this connection some studies made recently by Harrington Emerson, the

distinguished efficiency engineer, are of particular interest. Mr.

Emerson, while attached to the president's office of the Baltimore and

Ohio Railroad, has had opportunity to study the railroad situation at

close range and in a very practical way. He has placed his carefully

developed theories in regard to the man in the shop and his wage into a

study of the railroader and his pay-envelope. He has gone back into

transportation history and found that at first employes were paid by the

day. But long hours either on the road or waiting on passing sidings

worked great hardships to them. As a more or less direct consequence the

men in train service formed unions and succeeded in establishing the

peculiar combination of pay upon the mile and the hour basis--which has

obtained ever since in general railroad practice. If a train or a

locomotive man was called for duty, even if he never left the station, he

received a full day's pay. This, in Mr. Emerson's opinion and in the

opinion of a good many others who have studied the situation, was as it

should be and the principle should have been adhered to. But to it was

tacked the piece rate of the mile. If a train or locomotive man made one

hundred miles it was considered a day's work, even if made in two hours.

In this way the piece-rate principle became firmly established alongside

of the hourly basis.

"What was the result on railroad operation and costs?" asks Mr. Emerson

and then proceeds to answer his own question. He calls attention to the

cars weighing 120,000 pounds and having axle-loads of 50,000 pounds that

are being run upon our railroads today and expresses his belief that

because in our established methods of railroad accounting, operating costs

include train men's wages, but not interest on capital invested in

locomotives, cars, trains and terminals; railroad managers, driven by the

need to make a showing long since began to plan more revenue tons per

train-mile in order to keep down or lessen train-crew wage-costs per

ton-mile. This was very well as long as it led to better-filled cars and

trains, but the plan quickly expanded into heavier locomotives and heavier

cars which necessitated heavier rails, more ties, tie-plates, stronger

bridges, reduced grades, and a realignment until all that was gained in

tonnage-mile costs was lost in increased obsolescence, unremunerative

betterment, and other fixed charges. Even as good a railroader as Mr.

Harriman was once led to regret that railroads were not built upon a

six-foot gauge instead of the long-established one of four feet eight and

one-half inches, because he felt that this would enable him still further

to increase train load in proportion to train crew.

A good many railroaders have said that we have reached and long since

passed the point of efficiency by increasing our standard of car and train

sizes. Mr. Emerson is not new in that deduction. But he puts the case so

clearly in regard to the confusing double basis in the pay of the

trainmen--the vexed point that is before the Supreme Court of the United

States as this book is being completed, because the Adamson so-called

eight-hour day omitted the mileage factor, to the eternal annoyance of

those same trainmen--that I cannot forbear quoting his exact words:

Piece rates to trainmen should be abolished. The work of trainmen

should be classified. There should be short hours and correspondingly

high pay for men working under great strain. There should be heavy

penalties attached for overtime, although it does not follow that the

man who puts in the overtime should receive the penalty. Society wants

him to protest against overtime, because it may be both dangerous to

the public and detrimental to the worker. The worker should not be

bribed to encourage it.

It is evident that pay by the hour with penalties for overtime would

encourage lighter and faster trains. Lighter and faster trains would

increase the roads' capacity as well as car and locomotive mileage.

Capital expenses would drop. The savings made would be available to

increase wages and to pay higher bills for material and to pay better

dividends.

Beyond this there is little more to be said--at least pending the decision

of the highest court in the land. But no matter how the Supreme Court may

find in this vexatious matter, the fact remains that the union man in

railroad employ will continue to be paid upon this complicated and unfit

double method of reckoning--clumsy, totally inadequate (built up through

the years by men who preferred compromise) and complicate an intelligent

and definite solution of a real problem.

Some day, some railroader is going to solve the question; and, in my own

humble opinion, a genuine solution, worked from the human as well as the

purely economic angle is going to rank with the bonus and other

indications of an advanced interest on the part of railroad executives in

the men as a step toward a betterment of the relations between them.

* * * * *

In my opinion such steps as these that I have just outlined not only would

go far toward solving the frequent "crises" that arise between the

railroads and their employees, but would tend greatly to prevent the

depreciation of the human equipment of the road. Remember that this labor

problem is one which presses hard not only upon the body politic, but upon

the whole human structure of our country. Its solution, as well as the

solution of the physical question, must be not only immediate, but

economic and financial.

All this is bound to result soon in a very great increase in the

railroad's pay-roll. It is an added cost that must be met before the

railroad can come into its own once again. It is quickly obvious that the

great pay-roll must be equalized, that in these days of steadily mounting

cost of living, its unorganized labor--its trackmen, its carmen, its

shopmen, its clerks, its station agents--must be given a fairer chance in

the division of its wages. It needs to pay better salaries to its minor

officers, and it is today handicapped for lack of these.

It is obvious also that it is going to be extremely difficult, to say the

least, for the railroad to reduce the wages of its organized labor. Put

this statement to the ones that have gone before and you can quickly see

the need for very great increases in the railroad's pay-roll in the

immediate future. It is going to be compelled to seek a larger share in

that great portion of the nation's outgo that goes to pay for its labor of

every sort. It can no longer postpone the pressing demands of its

unorganized workers.

The failure to increase their portion of the pay-roll, with its consequent

tendency toward the depreciation, if you please, of much of the human

element in the operation of the railroad, may yet prove to be a problem,

larger and more serious than the failure not alone to increase but to

prevent the physical depreciation of the railroad.

This physical question--the financial plight of the railroad, its great

and growing depreciation account, the consequent deterioration of its

lines, particularly its branch lines--we already have discussed. To that

plight now add the labor plight. No wonder that the great man of American

business lies sick upon his bed. Already we have learned that from a

purely material point of view, the railroad is nine years back of 1917

instead of nine years ahead of this date. Its involved, delicate,

unsettled labor problem shows that nine years is a small lapse indeed

between the tardiness of its labor relations, together with the real

understanding of its human problem, and the general understanding of labor

and social conditions in other lines of American industry.

Yet it is not too late to mend. And just to show that this is possible,

that it is worth while bringing the sick man of American business back to

health again, just for the opportunities of development that stand before

him, I am going to take your time to show you a few of the larger

possibilities of the railroads of the United States.

The Railroad Problem · 第 7 / 13 章