Therefore I am repeating--and adding--that no permanent solution of our railroad problem can be reached that ignores the right of the faithful and loyal employee to continuous service. It may be necessary to cut his wage.
That is a situation that may confront any man in any business or profession. But save for fair cause he has an inherent right to continuous employment. This should be put down as a real fundamental of the railroad industry.
Railroad industry! Railroad tradition! Railroad morale!
Give them a chance. Let us have a scientific way of developing them once again; let us have a scientific yet a simple and humane way of studying out these surpa.s.singly great problems of the human factor in our railroad operation; in the hours and conditions of his working, the cost of his living, the reckoning of his compensation. To such a problem--a problem within a problem--we now have arrived. And we shall begin its consideration.
CHAPTER VII
SOLVING THE RAILROADS" HUMAN PROBLEM
In some of the real wisdom that wrote certain portions of the present Transportation Act it was decided that the newly created Railroad Labor Board should be kept entirely separate and distinct from the Interstate Commerce Commission. The one had neither authority nor jurisdiction over the other. They were even apart geographically; the one at Chicago, the other at the national capital. There was a definite and convincing reason advanced for this segregation. It was argued, with genuine good sense, that the business of wage-making should be kept entirely separate and apart from that of rate-making. In other words, wage-making was to be based upon living-costs--the sort of thing that the Lane Commission tried to do, even though hurriedly, and that the railroads themselves had failed to do.
That the Railroad Labor Board, once appointed, took its new task seriously, I do not for a moment doubt. I think that it tried and still is trying to solve the entire question in a really scientific and human fashion. It is a political board, to be sure. It could hardly escape being a political board. But I believe that it is rather better than the majority of its kind. It is a common experience here in America that these newly created boards are likely to rank higher in their personnel at their outset than after they have become old stories and pliable in the hands of the professional politicians.
Yet I am not at all sure that the Railroad Labor Board was a necessity, not at any rate as a permanent organization. We Americans are all too p.r.o.ne to create boards and commissions for almost every sort of conceivable situation. We dote upon chairmen and upon directors. We adore secretaries and under-secretaries and under-secretaries to under-secretaries and all the rest of it. It is a national weakness, and an organization like our Railroad Labor Board is after all but a single expression of that weakness.
Contrast that c.u.mbersome method of ours with one which was adopted in Great Britain but a year or two ago and which so far has apparently given absolute satisfaction to both the rail workers and their employers over there.
Under the wage agreements between the railway workers of the United Kingdom and their executives the wage-scales have been fixed upon a basis which permits them to rise or fall as the cost of living rises or falls.
These agreements were signed more than a year ago. The official charts issued by the British Board of Trade, and held by all save a few of the most radical of labor leaders to be both accurate and impartial, are taken as the basis of the railway wage. The charts come as the result of repeated and regular investigations by the Board of Trade agents into house-rentals, clothing, foodstuffs, and all the other essential factors that enter into living costs. Upon them an arbitrary reckoning of 125 points was fixed as the maximum that these should reach after the period of after-the-war readjustment was fixed.
But despite this fixing of a purely arbitrary figure the cost of living refused to stay put. It steadily rose until two years after the signing of the Armistice the Board of Trade figures had reached 169 points. And British railway wages had risen even more than ours. A station-porter, who in the pleasant English days before the coming of Armageddon had been content to receive fifteen shillings a week, found himself in January, 1921, receiving sixty-six, an increase of considerably more than 300 per cent. To-day he is getting a little less pay. At the time that these paragraphs were being written the Board of Trade"s entirely arbitrary but very scientific reckoning of living-costs had already dropped to 141 points and was going down further yet. The station-porter"s weekly wage had dropped three shillings, and Sir Eric Geddes, the British minister of transport, was beginning to predict that a continuation of this lowering of wage-costs would be reflected in the not distant future in lowered pa.s.senger-fares and freight-rates.
For definitely it is fixed that for each five points that the Board of Trade"s cost of living report drops or rises the railway employees" wages shall drop or rise a shilling a week. But they shall never drop to the depths of the former pay-envelope; minima have been fixed ranging all the way from 200 per cent. of the pre-war wages upward. In the case of our station-porter the minimum of the future is to be forty shillings a week, which is considerably better than fifteen. Yet fifteen was in truth an outrageously low figure, even eight or ten years ago. British railway wages were then decidedly too low. Now they are nearer a fair figure, and so are likely to remain.
Why the American railroad wage could not have been fixed upon some basis as this is difficult to understand. The fairest, the broadest-minded, the most human of our railroad executives across the land say that 90 per cent. of their difficulties with their men would be wiped out entirely if only they could have direct dealings with them. Witness the example which I showed in the preceding chapter; the big and representative road which sought to install a piece-work scheme and, working through the leaders of the shop-crafts unions, found that its actual shopmen had not been consulted at all in the entire transaction.
The Pennsylvania railroad has fought desperately for the privilege of direct dealings with its employees. Three years ago its operating vice-president, General W. W. Atterbury, upon his return from France where he had had charge of the movement of our American troops and munitions, went on record as saying that the time had come for the rank and file of our railroaders to have a distinct voice in the operation of the properties. This does not mean in this instance that the Pennsylvania would become enthusiastic over the admission of direct labor representatives to its board of directors; such a genuinely progressive step still is quite beyond its imagination. But it has sought--and, I believe, honestly sought--to establish some sort of direct relationship between the great body of its workers and its executive officers.
In accordance with such a plan the Pennsylvania started more than a year ago toward the election of employee representatives from its various shops. It turned its back upon the national officers of the shop-crafts union and said frankly that it preferred to deal separately with its various shops and their men as distinct and separate ent.i.ties. One of the sharpest quarrels that the railroad managements have had with the national agreements has arisen from the fact that these contracts take no pay-roll cognizance of whether a worker is living in a big city, such as Philadelphia, or a very small one, such as Bradford--either Pennsylvania or Ohio. Under the national agreements the Southern Pacific would have to give the same pay to a station-agent at Orange, California (which is almost heaven), as to the agent at Winnemucca, in the Nevada desert (which is something less than heaven). In other days the Winnemucca man was given what corresponded to a bonus salary, in order to compensate him in part for the bleakness of his surroundings. Under the national agreements it was a little difficult to get a good man to go to Winnemucca--to put the matter mildly.
The Pennsylvania in accordance with its expressed home-rule principle held that the employees elected as shop-craft representatives must be bona fide workers upon the pay-rolls of the Pennsylvania railroad. The shop-crafts union leaders claimed the right to have the names of the local organization officers appear upon the ballots. The national headquarters of the shop-crafts union also made loud protest. It appealed to the Railroad Labor Board, which deliberated ponderously upon the crisis and then ordered the Pennsylvania to proceed toward a new election, this time along national and not along individual shop lines.
The Pennsylvania protested against the Labor Board"s ruling. Its protest was not heeded. The board after a rehearsing stood by its decision. Then the Pennsylvania appealed to the courts, where the entire matter is at present ensnarled. The railroad is loud in its protestations that it is not attacking the Railroad Labor Board as an organization; that it merely is seeking to keep it within the bounds laid down by the intent and purpose of the remarkable Transportation Act, which, in the long run, may come merely to a fine use of words.
The other railroads have not as a rule joined with the Pennsylvania in this protest. On the contrary they have proceeded rather rapidly in conforming to the Labor Board scheme, by joining in groups to set up local courts of arbitration with their men in various large centers of the land.
Is this because they have loved the Labor Board idea? I hardly think so. I think that the real reason is because they have realized that in the difficult hour of transition from governmental to private operation--and, consequently the almost inevitable lowering of wages--the Railroad Labor Board, and the Railroad Labor Board almost alone, stood between the nation and a general and calamitous strike of transportation workers. This of course was before the coming of the industrial slump and the release of several million workers into the labor market. It was a real factor in helping to prevent the strike in October, 1921, which so many of the railroad executives really wanted and which the railroad workers, knowing from the outset that they would be beaten, did not want.
For these things alone the Railroad Labor Board probably has been worth all this cost--and the cost has not been small. Yet that there could not be a more direct pathway to them than the creation of a brand-new expensive political commission I shall always deny. I have shown the direct short cut that Great Britain took in railway wage adjustment. Is it inconceivable that the United States might not occasionally take a short cut of her own in these labor situations? Was the creation of another political board an absolute necessity?
These are political questions, not primarily those of transport, and therefore I shall not answer them here further than to suggest that if the Railroad Labor Board makes at least one thorough, scientific, and impartial study of living-costs in this country--in big towns as well as in small, in North, in South, in East, in West--it may perhaps justify its existence and pave the way toward the adoption of some such simple method as we saw adopted overseas more than a year ago.
It is however a transportation question to know what the railroads themselves purpose to do about bettering the situation between the workers and themselves. We have hinted at the expressed intentions of a high officer of the Pennsylvania. So far so good; but not very far. If the foolish national agreements are to be completely abrogated--and apparently they are to be--what improvement in the relationship between the carrier and its employees is to be subst.i.tuted for them? We have seen the move toward the establishment of local boards of arbitration by individual groups of the carriers. So far so good again; but again, not so very far.
The per-hour wage has frequently been set down as the gold standard of railroad pay. Yet to-day in the eyes of the operating heads, at least, it is no standard whatsoever, save in shop-work where they reckon it as but a very base alloy and where they would regard piece-work as platinum--set with diamonds, at that. All of which of course is from the point of view of the executives, and not at all from that of their workers.
But what are the railroads going to do about the recognition of real merit and real industry in the individual worker? I do not mean the brilliant fellow who forces his way to the top. Frequently it is the plodder, the man unseen, unknown, who is the most valuable human cog of the transport machine. Will the railroad, huge machine that it is, find him out and give his loyalty, his industry, his energy--in many cases, his initiative too--the recognition that they demand? Can it do this even if it will? I have known many a railroad manager to complain to me that the reason he could not gain a greater efficiency out of his workers was because of the very scattered and attenuated location of his job. Real supervision, like that of a factory or a large office, was out of the question. Men might and did loaf on their jobs. Conversely it is of course equally difficult to discover real merit along the line, particularly the modest and conservative type of merit.
What too is the railroad going to do about adjusting hours of labor for its workers so that, whenever it is possible, the worker shall sleep at home? We have seen already in the pages of this book how often this is not possible for the employees engaged in the operation of the trains. In a little while we shall come to the vast possibilities of the use of the gasolene-motor unit in local pa.s.senger transportation upon our standard railroads, and I shall be urging as a corollary to its introduction a much increased service as well. It ought, by a little skillful planning, to be possible to use the eight hours of a railroader"s time to extremely good advantage, both to himself and to his employer, by an ingenious dovetailing of runs. Up this line, across that, back on a third--the possibilities are as infinite and as fascinating as those of a game of chess, and all giving the maximum of eight hours" service to the railroad, as well as the square deal to its worker. Could more be asked?
And then, for a final question, what is our American railroad going to do about the a.s.surance of continuous employment to its workers? We have touched upon this question already. It is a particularly serious one, not alone in shop-work but in every other department of the railroad. The fear of losing one"s job becomes at all times a decided factor both in the statistics of labor turnover and in the individual morale of the worker.
In a single instance of a typical large trunk-line railroad a total force of 80,895 workers in June, 1920, had been reduced by June, 1921, to but 56,091 and has been dropping ever since, which means quite naturally that the men who remain are spurred to the best of endeavors. The road tested this the other day. It asked all of its employees to go out in their spare hours and see if they could solicit some freight for it. In ninety days these men, entirely apart from the regular solicitation forces of the line, had brought in more than 1400 car-loads of freight which otherwise would have gone to its compet.i.tors. A good percentage showing was made by the mechanics and other workers of one of its smaller shops. Yet in the early part of 1920 the men at this shop had all gone out on strike because a train accident had delayed the arrival of their pay-envelopes for two brief hours!
Here then is morale brought back in a perfectly human fashion, yet I doubt if in a good one. In the long run fear cannot make loyalty or initiative or ambition. The day will come when abounding prosperity will return to the carriers, when the labor markets across the land will be empty of possible material. Then labor may remember. Memory is quite as human a trait as fear. And the pendulum will be set high again at the workers" end of its arc.
I feel that we shall be compelled to find far better ways of bringing loyalty and initiative and ambition into the hearts of our workers of to-morrow--the other qualities that go into the making of that highly modern term "morale"--and so bring back a genuine revival of our American railroad tradition. We shall start of course with a good wage. We already have that. The average annual wage of the American railroader is now $1700 for eight hours of daily work. In 1913 he worked ten hours a day and received but $761 on an average. His hourly wage is now about 150 per cent. more than it was eight years ago.
Remember all the while, if you will, that I am not urging that the railroader is overpaid to-day. I do not believe that upon the average he is any more than well paid--in all cases not even that. And I do believe that these entire pay arrangements are still far from being upon an entirely just and equitable basis; the conditions of his working arrangements, so very vital to the return of our American railroad morale and tradition, are still in the infancy of a really scientific and human adjustment. Here again the situation is open to further explanation.
There are, roughly speaking, three cla.s.ses of railroad employees. The railroad president and the small group of high-priced executives closely about him const.i.tute the first of these cla.s.ses. This is small in number.
It contrasts with the two millions and a half of the rank and file of railroad employees in the United States.
Here then are the right and the left wings of our railroading. Between them is a third cla.s.s, not often in the public eye, but in many ways the keystone of the arch of operation. This third cla.s.s, not large in numbers, consists of the minor officers of the various active departments of the railroad. It is an immensely valuable factor in successful operation; in fact the great driving force behind it. Yet its position is not a happy one. At all times it is a buffer; it is caught between the upper and the lower stones of a mill which attempts to grind finely. From below comes the natural and unending pressure to increase expenses; from the high executive offices above comes another, to hold down expenditure. From somewhere between these grindings the division superintendent or engineer or mechanical superintendent must produce results. Of necessity, his is a driving job.
Ofttimes it has been a thankless job as well. For there has been little outside protection for this valuable central cla.s.s of railroad labor.
Numerically it is not large enough nor important enough to command the favor of influential politicians. As we have just seen, the rank and file does. This is at least well paid. And as the railroad man at the bottom has received attention, so has the railroader at the top. The executives have always succeeded in taking good care of themselves. They know that the large financiers and banks and other inst.i.tutions which to-day are the heavy stockholders of our railroads are utterly dependent upon them.
Without them their securities would fall even flatter than already they have fallen, which means that the railroad president and his important vice-presidents can command salaries that are at least commensurate with those paid in other industries. Their worries are those that come from their responsibilities, not from their pocketbooks.
But the middle cla.s.s of the railroad personnel--like the middle cla.s.s of the world outside--is caught to-day, not only with responsibility for its job, but with a deal of worry too for its wallet. Salaries between the upper and lowest cla.s.ses of railroad workers take a fearful fall. In theory they should form a gentle curve, a sloping sort of descent. In practice, too, they should curve. In truth they do not. They drop. I have known of repeated cases where the superintendents of railroad divisions--a railroad superintendent is supposedly the prince of a transportation princ.i.p.ality--have actually received less than some of the locomotive-engineers who are working for them. In any such scheme of affairs the incentive or desire for promotion cannot be very great.
As a matter of fact very much of that desire or opportunity for promotion pa.s.sed away long ago, which is one of the significant reasons for the sad decline of our American railroad tradition, and which is also one of the most alarming symptoms of the serious illness of our sick man of American business. He is making no provision for the future--in this serious necessity of providing good new railroading blood for oncoming years.
There should be fresh generations of material for future railroad executives tramping forward, and there are none.
"Over-regulation," says one transportation executive at once, and leaves us in the belief that here is the sole cause of this sad deficiency.
He is right--partly right. For more than twenty years the railroad business in the United States has been under constant attack--rightly or wrongly, and generally both. A business under constant attack is not one that makes a large appeal to a young man just seeking about for a future career. One of the very ablest of our railroaders, Daniel Willard, president of the Baltimore and Ohio railroad, recently went on record as saying that at the present time he could not recommend the business in which he has spent a lifetime as a proper opening for his son.
Add to these things the fact that the business itself has taken very little thought as to the morrow in this vital question of renewing personnel--has not only failed to establish courses in various phases of railroading in the technical schools across the land, or made any concerted effort to bring the best of their graduates to their ranks, but for years has ridiculed and humiliated these highly trained young men when they have sought to enter its doors--and one may easily perceive why the best of our young men in recent years have not gone into railroading. The automobile industry, mining, electrical work, manufacturing of nearly every sort, the professions, even retailing, have called to them, and not in vain. Each has received its fair proportion of them. But railroading has been left aside.
Here is a most serious phase of our railroad debacle. It is not one that can be quickly mended. Take the nearest "Who"s Who" and note the birth dates of the railroad men that you find there. With a few exceptions they are not young men. They are getting on in years, while those who know them personally know that their tremendously increased anxieties and responsibilities have grayed them even beyond their years.
A young man whose heart and soul alike thirsted for a better knowledge of the rail transport business recently asked a veteran railroader of my acquaintance how he could get into it. He had been offered a job in the local interchange yard, firing a switch-engine. That job had a good deal of appeal to him. He was perfectly willing to don overalls and get down to hard manual work with a shovel. But the old railroader shook his head.
"No, no, Harry, that is not the way that it is being done nowadays," said he. "Let me advise you."
Then he explained. Harry might and probably would develop into a good fireman, like President W----. Eventually he would probably have a fine pa.s.senger run and get as much money perhaps as his division superintendent, probably more than his trainmaster or his road foreman of engines. But that would end it. He would be a working man, albeit a well-paid working man, but nothing else--never an officer. The new caste in our railroading would hold him tightly down. Far better that he should pocket his pride as a graduate of a pretty good Eastern university and become an office-boy in some railroad office and study all the phases of the business at every opportunity that presented itself. There was chance there of his getting ahead in railroading, perhaps to the very head of it.
The taint or stigma of unionism would not be upon his shoulder to draw him down in the estimation of the big men who won and control our carriers.
That was frank talk, but accurate. At last we _have_ achieved an industrial caste. The barrier is there. The railroads suffer from it greatly, but the men who to-day control them are not going to remove it.
Here and there across the face of the land you will find a few minute exceptions, a trainmaster here, a master mechanic there, perhaps all the way across the land as many as ten or a dozen superintendents who have risen from the brotherhoods. But in our big national organization these few are as nothing. The barrier is being well maintained. And as long as our railroads are owned and operated as at present, it is likely to stay put.
Granted then that this great wall is to be kept, and a.s.suming that the railroads can tide over their present personal deficiencies, how can this distressing situation be avoided in the future? Easily enough. It comes down in final a.n.a.lysis to a wage question. Our railroads can and should establish courses in the various phases of their business in many of the large colleges and training-schools across the land; they should have methods of systematically scanning the output of these schools and of securing for themselves at least their fair share of it for proper training toward executive possibilities. Other industries in America long since have shown the possibilities of such methods. Yet even such a program will fail if the salary inducement is not made both fair and attractive. I spoke but a moment ago of the lack of curvature, the tendency toward right-angledness of the salary line between the top cla.s.s of railroad personnel and the bottom. It too has arisen in other businesses, and they have had to solve it. Here is one case in particular.
It is a nation-wide utility company, not transportation, but in a large sense akin to it. It divides itself between the Atlantic and Pacific into various subsidiary companies, each fairly autonomous. These companies, working in cooperation, have evolved a salary plan that is attractive to their personnel. The company heads each receive as an average from $35,000 to $40,000 a year. Immediately beneath them are their vice-presidents, three or four at from $20,000 to $25,000; beneath these in turn a group of ten to a dozen sub-executives at $15,000 to $18,000, and then a large group (thirty-five or forty men) at from $10,000 to $12,500 annually. The curve irons out to a comfortable rotundity. The salary appeal stands strongly; the opportunity of getting into that third sizable executive group of good wage standard is large enough to bring young men out of college to these companies in a larger number than they can accept, which gives them a most excellent opportunity to pick and choose.
A plan such as this would be easily applicable to almost any one of our American railroads of to-day, which almost invariably are under-staffed rather than over-staffed. And the first objection to it, the cost, is discounted by the fact that even to a comparatively small line it would not add more than 5 or 6 per cent, to the pay-roll--perhaps not more than a fraction of 1 per cent, to the total operating cost. The utility company which I have just quoted boasts that it could cut its entire pay-roll down to a maximum of $5000 a year for all of its officers and still reduce its total pay-roll cost less than a mere 1 per cent., which speaks volumes for the even distribution of its official salaries.